[Ed note: Before reading this blurb from ZeroHedge, it's important for readers to recall Adrian Douglas' quantifiable research which essesntially proves that Bullion banks have issued at least 45 paper representations of gold for every 1 physical ounce in the vault. And this massive fractional bullion banking ratio doesn't even take any additional paper manipulation into consideration; the Comex, LBMA, bogus ETF's, etc. The 100 times paper figure cited by Zero Hedge in the article below is in step with Jeffrey Christian's brilliantly clumsy testimony before the CFTC in March, 2010 in which Christian admitted there's at least "100 times what there is". But SGTreport now believes the actual paper to physical silver and gold ratio is far higher than 100 to 1. And when this epic ponzi scheme finally collapses, the resulting prices for real, physical metals will defy mainstream paradigms and public comprehension. The question is, did Chavez just pull a cornerstone set of cards? ~SGT]
by Tyler Durden, ZeroHedge:
In addition to the nationalization of his gold insutry, Chavez earlier also announced that he would recover virtually all gold that Venezuela hold abroad, starting with 99 tons of gold at the Bank of England. As the WSJ reported earlier, “The Bank of England recently received a request from the Venezuelan government about transferring the 99 tons of gold Venezuela holds in the bank back to Venezuela, said a person familiar with the matter. A spokesman from the Bank of England declined to comment whether Venezuela had any gold on deposit at the bank.” That’s great, but not really a gamechanger. After all the BOE should have said gold. What could well be a gamechanger is that according to an update from Bloomberg, Venezuela has gold with, you guessed it, JP Morgan, Barclays, and Bank Of Nova Scotia. As most know, JPM is one of the 5 vault banks. The fun begins if Chavez demands physical delivery of more than 10.6 tons of physical because as today’s CME update of metal depository statistics, JPM only has 338,303 ounces of registered gold in storage. Or roughly 10.6 tons. A modest deposit of this size would cause some serious white hair at JPM as the bank scrambles to find the replacement gold, which has already been pledged about 100 times across the various paper markets. Keep an eye on gold in the illiquid after hour market. The overdue scramble for delivery may be about to begin.
I hope all the countries get smart, and get their physical out of the crooked US banksters vaults.
I for one need the game to stay fixed just for a little while longer as I only woke up a little while ago. I will have a good laugh if they send an empty boat to Venezuela and sink it on the journey and just pocket the gold.
lol – Look for Venezuela to immediately be named by Hillary as a new member of the “Axis of Evil”.
They should have asked if they could fedex it fully insured LOL, now try to picture the delivery trucks armada dumping all of that yellow metal right infront of Chavez mansion… LMAO
Funny you should say that. On the other side of the pond, Germany is now beginning to see protests and destruction. Let’s see now….Tunisia, Egypt, Libya, Syria, Yemen, Greece, Spain, Italy, the UK and now Germany. Hey Obama….do you see a pattern here? Or are these just “isolated incidents” in your opinion?
http://www.zerohedge.com/news/benz-burners-arrive-protests-come-germany-arsonists-burn-down-fat-cat-cars
Well, if Venezuela has 211 tons of gold overseas and only 99 tons is being shipped from BOE, then where do you suppose the other 112 tons of Venezuelan gold is at the moment? Will the CME and JP Morgan have to lawyer up for this one? Will the bullion banks wake up and smell the coffee?
http://www.ibtimes.com/articles/199692/20110818/chavez-sends-gld-a-wake-up-call.htm
Will this mean higher gold prices for investors?
Great lets hope that JPMorgan goes down the toilet with the rest of the theiving bankster scum.
Amen, brother.
Do you mean that we are not a war already? Kabul, Bagdad, Tripoli…three capitals that have known recent US military actions. The only reason why we think that we are not at war is because the bombs are not being dropped here in the US.
Frank, you do bring up a good point about Venesuela and the possibility of war. My guess is that we won’t go to war with Hugo. Hugo and Obama are friends, Marxists cut from the same cloth. I doubt that we will “put it” to Venezuela. But then again, Obama screws everything up so I guess anything is possible. Time will tell.