♖All the Kings Horses v Golden Humpty Dumpty ♖Submitted by Mark Twain on Sat, 08/20/2011 - 23:37
... When Venezuela first made its intentions for gold repatriation public, the press reports indentified the Bank of England as the depository for 211 tonnes of its gold. Later, it came out that 99 tonnes were on deposit at BoE and the rest sprinkled among JP Morgan Chase, Barclays, Standard Chartered, and Bank of Nova Scotia — gold bullion banks all.
It was the addition of the bullion banks in press reports that sent off alarm bells in the gold market... Financial Times called the Venezuela withdrawal “one of the largest transfers of physical gold in recent history.” When the news sunk in, gold promptly rallied — ... as high as $1875 overnight... Venezuela’s repatriation... The bullion bank scramble, ... before Venezuela went public with its intentions.
In plain terms, it is unlikely that Venezuela’s gold is sitting prettily in the above named bullion banks just waiting to be loaded on a cargo plane and sent to Caracas. It was probably loaned out long ago, and then perhaps, redeposited at some other bullion bank and loaned out again, etc. on down the line until it was fractionalized, atomized, and otherwise depleted from its unified whole. In short, it will not be easy for the bullion banks to reassemble this golden Humpty Dumpty.
... Moneyed interests globally, as reported extensively in the mainstream press, are on a hair trigger, and ready to move defensively at a moment’s notice. At the whiff of trouble, the equivalent of a bank run could develop in the bullion banking sector.
- ★★★★ 40 years ago ★ almost to the day ★ forced the United States to close the gold window. ★★★★
“Some words really do evoke ♖ Humpty’s ♖ ‘handsome’ rotundity.” Lewis Carroll Society of North America, official web site
★ Fed Inflates Itself Beyond "Alice in Wonderland" ... $2 Quadrillion ★ Mark Twain, 02/24/2011