A central bank question for Alex

[TheNatural]

I would like to ask Alex to elaborate a little on, if and how, the central banks that are not privately owned are members of a cartel and if they are made to sell their gold reserves and invest their holdings in stocks and papers that we now see go down rapidly in value.

The background is that I found out almost two years ago that our own central bank sold it's small gold reserve of 33 tonnes and now have it's reserves of about $400 billion solely in stocks and foreign currency in which the largest part is in the US. I have written a couple of articles about the gold sale and wrote to the central bank and got an answer where they said they sold because the gold they had was such a small part of the holdings!!! and that they had no plans buying gold. I fear as this financial crisis picks up momentum and go really global, all will be lost.

[Joe(WI)]

I think the mid level bankers assume dollar world reserve currency. Trade in oil? Sell/buy in dollars. Let Iran get busted for selling in Euros.

As for other things, the ONLY thing fed income tax pays for is INTEREST on created money, nothing more. The housing sub primes only did what they were allowed to-sell loans to those who couldn't afford them. When the margin call comes up, they can confiscate the house(compensate? sorta) for collateral. Then houses are sold by the thousand, further depressing the value, leading to more seizures. Like Emminent Domain on steroids. It all collapses into the hands of the central bank. I heard on early news(WBBM[!]) foreigners are buying up our housing like no tomottow.
The whole debt crunch occurs because the Fed prints a dollar and charges 7%(prime lending rate) for its use. So, if we rounded up all the dollars in existance, we would still owe the prime. Pass cost along smaller banks, which pass it on finally to us. The banks need a pyramid scheme to keep the money flowing, they take your bank account, knowing nobody really empties it out, and loans up to 80% of it to someone else, and the bank keeps the interest on repayment. This is why savings and checking accounts don't pay interest anymore, because the bank vacuums it all up already.
I saw somewhere this was the real reason we went to war with Brittain, they kept charging us interest on bank notes. I haven't heard it said except once in Zeitgiest I think.
Anyway, the net effect is counterfeit dollars inflating, sticking us with the debt. I have only gotten interested lately about financial system, and it stinks to high heaven. If you can defraud the public in economics, you can with an election 

[TheNatural]

Yes, but my question is rather of other countries central banks which is not privately owned like the Federal Reserve. In my particular case, Norway, which has a state owned central bank but nevertheless which, Im sure, is under the influence of the big cartels of private bankers.

Would you believe me when I say our entire nation only have 3,5 tonnes of gold coins and 7 gold bars for exhibition purposes? It blows my mind and scare the hell out of me and it also scares me that so few know about it and when I tell them they just shrug their shoulders.
It's all public knowledge, they put the info up on their site and they also put up a description of the entire holding, how many millions of dollars in each company throughout the world.

[Lannister]

33 tonnes is HUGE......

gold goes for $900 an OUNCE right now...  how is 33 tonnes not a massive amount....  your central bank got federal reserved....  u got dollars for gold......  now ur dollars are going down and the gold is going up....

[TheNatural]

It may seem huge with 33 tonnes but remember it's the entire stock of a pretty rich country. I often wonder how the patriots that risked their lives when the nazis invaded us, and got the gold out and to safety in England, would think of what happened in 2004. They sold the gold during the first quarter at a price ranging between 390-425 dollars to buy...papers. And as you say, now it's $900 and although a lot of that comes from the inflated dollar, gold has surged against NOK too and the loss is over 50%.

I stand by my opinion, it's treason.

[websuspect]

Banks are invested in Derivatives, that is the own a small portion of something else.

A conservative amount would be %10 of its invested in Derivatives but thats a conservative amount.  The real amount is far smaller.

Now as far as your money being credited or insured.  Its insured by $50,000.  So lets say you have a million dollars in the bank and the Bank Goes up.  Youll get $50,000 but during the S&L crises people had to wait along time to get their money back or they never did.

http://en.wikipedia.org/wiki/Savings_and_Loan_crisis

"Savings and Loan crisis of the 1980s and 1990s was the failure of several savings and loan associations in the United States. More than 1,000 savings and loan institutions (S&Ls) failed in "the largest and costliest venture in public misfeasance, malfeasance and larceny of all time."[1] The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government [2], which contributed to the large budget deficits of the early 1990s. The resulting taxpayer bailout ended up being even larger than it would have been because moral hazard and adverse-selection incentives compounded the system’s losses. [3]

A taxpayer-funded government bailout related to mortgages during the S&L crisis may have created a moral hazard and acted as encouragement to lenders to make similar higher-risk loans during the 2007 subprime mortgage financial crisis. [4]

The concomitant slowdown in the finance industry and the real estate market may have been a contributing cause of the 1990-1991 economic recession. Between 1986 and 1991, the number of new homes constructed dropped from 1.8 million to 1 million, the lowest rate since World War II. [5]"

[thought_criminal]

Imagine total consolidation...   Imagine very few having the vast majority of all the money (gold, not fiat) in the world.

Wouldn't the price of gold skyrocket at first, but then crash due to lack of currency/supply?

What if only $250,000,000 worth of "gold dollars" existed (supposing that there were no fiat digital money) ...less than a dollar per citizen... suddenly 15 cents would buy a truck.

On the flip side, what if the digital money (90% of money in circulation) were suddenly dumped onto the world market? Ie: Imagine "Bill Gates" gave his money equally to all citizens..  Suddenly a loaf of bread would cost $20,000. 

Just as something is only worth what someone will pay you for it... money it's self is only worth the stock we put in it and it's availability/supply --witch is
directly related to "stock we put in it". More money equals less value.


I think the previous poster is right... if all gold were consolidated  it would become worthless and other commodities would become the base of currencies.

[sid]

"Privately owned" central banks are just a subterfuge to remove them from direct compliance to the various Constitutions of their respective governments.  They're de facto government agencies, just not under the control of the people.

They're necessary to the operation of a controlled (manipulated) economy, as recognized by Marx & Engels in the 5th plank of the communist Manifesto.

[websuspect]

Imagine total consolidation...   Imagine very few having the vast majority of all the money (gold, not fiat) in the world.

Wouldn't the price of gold skyrocket at first, but then crash due to lack of currency/supply?

What if only $250,000,000 worth of "gold dollars" existed (supposing that there were no fiat digital money) ...less than a dollar per citizen... suddenly 15 cents would buy a truck.

On the flip side, what if the digital money (90% of money in circulation) were suddenly dumped onto the world market? Ie: Imagine "Bill Gates" gave his money equally to all citizens..  Suddenly a loaf of bread would cost $20,000. 

Just as something is only worth what someone will pay you for it... money it's self is only worth the stock we put in it and it's availability/supply --witch is
directly related to "stock we put in it". More money equals less value.


I think the previous poster is right... if all gold were consolidated  it would become worthless and other commodities would become the base of currencies.

Yes and thats why Alex and ALl of us who are buying Gold and silver feel guilty.  To a certain extent we are getting over.  $20 for Silver sovereigns is an awesome price.