This Could Be Significant

Wed, Aug 17, 2011 - 5:10pm

About the Author

turd [at] tfmetalsreport [dot] com ()


¤ · Aug 17, 2011 - 7:39pm

Chavez No Problemo

I have no problem with his move either and it makes sense for him or anyone else to start to seriously question where their gold is at and if it still exists.

It's starting to unravel. Can everyone on here sense it? It's not imminent, but it's happening.

¤ · Aug 17, 2011 - 8:04pm

Couple excerpts from Harvey Organ/VeneChRussia?

DPH: If you look at things from the other side of the table (VeneChRussia> vena-crusha) this is a great time for them make this move given the fragile nature of the European situation and the absolute deer in the headlights moment that is taking place over there as far as indecision and running out of options to their debt crisis. The EU and the Euro is vulnerable and the U.S. reserve currency status is being talked about a lot more worldwide then our MSM is letting on. So you have to ask yourself if your VeneChRussia (just made that up) when is the right time to totally disrupt things in the West? This looks like that moment if your looking at it like they probably have been for a very long time. Chavez could have done this long ago or not at all. You have to ask yourself, why now? The Bank of England failing from being unable to deliver that much gold?Omg! What about the U.S. obligation? Buckle up. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ No doubt about it today. Venezuela has formally asked the Bank of England for its gold that is stored there to be returned to Caracas. They are also asking the other foreign depositories for the rest of its gold. Venezuela has 99 tonnes of gold stored at the Bank of England. It has a total of 212 tonnes so 113 tonnes of gold will come from the BIS and the Federal Reserve Bank of NY. I would like to point out to you that the gold held at the Bank of England is not earmarked gold. It is on deposit there and the Bank can do whatever it likes with the gold. However it is a liability to them and the bank will fail if they cannot return the gold to Venezuela. The gold at the Federal Bank of NY is earmarked gold and the bank receives fees for its safekeeping. The gold held at the BIS is a site deposit and generally the BIS takes ownership of gold in a foreign jurisdiction in return for needed cash to a nation. It looks like the BIS has site deposits of gold for Venezuela with the Federal Bank of NY.

You can now imagine what is going on behind the scenes. The Bank of England will recall its gold from the GLD. If that gold from GLD is now gone to sovereign China, India, Russia, South Korea, Mexico, and to wealthy Europeans fleeing the Euro, then the Bank cannot retrieve its swapped gold to repay Chavez. Not only that but the Bank of England is not the ultimate owner of the is probably wealthy Arabs or oil barons like Chavez. You can now imagine the wild scenarios possible. Gold was at its nadir of the day and shot up big time on the news of the repatriation of gold. Many understand the significance of today's announcement.

RuNuts · Aug 17, 2011 - 8:19pm

Eric Sprott...

Oops, already posted.

/Guess who just got up?

¤ · Aug 17, 2011 - 8:21pm

"Whoooossshhh!" (China's bubble quickly leaking)

Bad Debt at China Banks Growing: Jain

By Michael Patterson - Aug 17, 2011 6:39 PM ETWed Aug 17 22:39:28 GMT 2011

Bad loans at Chinese banks will rise to “shockingly high” levels, eroding profits and slowing growth in the world’s second-biggest economy, said Vontobel Asset Management Inc.’s Rajiv Jain, who runs some of this year’s best-performing mutual funds.

China’s local governments are struggling to repay their debt and “frothy” real-estate markets may leave banks exposed to falling prices, Jain said in an Aug. 16 phone interview. While valuations on Chinese banks have dropped to the lowest levels since October 2008, Jain said the shares aren’t cheap enough to buy because the lenders’ leverage is too high and earnings are likely to disappoint investors.

“We have not owned a Chinese bank, and I don’t see owning one any time soon,” said Jain, who oversees about $15 billion, including three funds that beat 99 percent of peers this year, data compiled by Bloomberg show. “If you look at the accounting, I don’t see how anyone could put a penny there.”

margaritatime · Aug 17, 2011 - 8:29pm


Sorry I just don't see what the hype[rbole] is all about. This is an exaggerated news story that will have little or no impact whatsoever.

Let's watch:

1. 11 Billion of it's assets are abroad, 7B in Venezuelan central banks. Only 11 percent of that is in US banks.

2. The gold is held as debt repayments and financing imports, but it actually repays most of this in oil anyway.

3. The move is a recommendation to rediversify, Chavez has not even approved it - it is just a recommendation. They are looking for a way to diversify in to other currencies rather than the USD [can you blame them?]. 

I mean if you want to get on the potato stand and parrot about the sky falling... From a macroeconomic point of view the nationalization of the mining will have a bigger impact than this... But even those effects will not be felt for many months, maybe even years down the road.

Sorry I don't mean to sprinkle salt in the sky is falling party, but this is really a no news event [to me].

:::::::dawning flame retardant suit::::::

Why is it the world is ending over here five times a day?

olskoolturd gniuz · Aug 17, 2011 - 8:30pm



¤ · Aug 17, 2011 - 8:30pm

212 tonnes of gold is being...

...removed from the open market and out of circulation and out of the hands of bankers. That's got to have some kind of impact I would think. We will soon find out.

If China or Russia comment on this or do a similar gold redemption in any small measure as a symbolic move then we'll have our answer.

I could be very wrong about the potential of all of this.

You have to wonder if JP knew in advance about this when they gave their $2,500 gold target or if this caught them totally flat-footed.

Turdle GG · Aug 17, 2011 - 8:31pm

Do we really believe that the EE...

... will allow some tin-pot dictator to upset the apple cart?

¤ · Aug 17, 2011 - 8:32pm

I think were going to find out

We'll soon find out if they allow this gold transfer to happen.

What if the U.S. refuses under some sort of legal pretense? You never know.

Ferd Torgerson margaritatime · Aug 17, 2011 - 8:33pm

Meh @Margaritatime

Agree. We haven't exactly seen gold shoot through $2500 per ounce on the Chavez news, have we?

Save_America1st · Aug 17, 2011 - 8:40pm

Peter Schiff on Fox Biz tonight...

Schiff will be on Fox Biz at 9pm EDT tonight on America's Nightly Scoreboard. He's been everywhere lately...very curious though to see if he talks about the Venezuelan news.

Side note on coins/guns. I live in Florida, and here it's legal to sell guns privately if you choose to. We have a very good website for advertising our guns state-wide called

I'm not pushing the site...but if there are any Floridians here on the blog that didn't know about it then I thought you might be interested. 

Anyways...being that I buy and sell on the site and peruse it quite often, I thought it has been interesting lately that many people are offering up silver/gold coins/bullion in trade for guns! I've been using that site for about 3 years now, and although I would occasionally see ads like that, I saw 4 on there recently (which is a lot). And some of them were substantial size collections worth around the price of a very decent AR-15 (over 1500).

All right then...back to reading everyone's comments! Have a great night all!

bobby · Aug 17, 2011 - 8:45pm

every one is wrong so far

nothing will happen

dream on with your dreams of collapse and disaster

won't happen

it will change the paradigm, but most all youse folk are all wet

Greg Brown -Who Woulda Thunk It
LaMachinna bobby · Aug 17, 2011 - 8:51pm

Thanks Bobby

for setting us straight. We appreciate it. cool

margaritatime · Aug 17, 2011 - 8:54pm


It's not like this was ever 'on the market'... This is not a purchase, it is a repatriate. This gold does not sit in eligibles, I highly doubt it is even leveraged. If Chavez approves it, it will move in to other currencies (Brazil, Russia, China who knows, who cares). It will not vanish *poof* out of the system, it is simply moving to another place in the system. Fact is they do not need gold to back debt or imports because they use oil to repay debts... The idea of keeping it in USD reserve currency or western banks is obsolete. 

I can assure you if there was even a hint of this affecting broader markets, those markets would have reacted long before you heard about it - in of all places ZH.. lol You can throw away that 300 level macroeconomics text book on this one. Yes we shall see. 

* the footnote is if oil prices fall - this move would spell disaster for them and you would likely see them move it right back in to western banks. In other words, one does not need to take out Chavez if they want this gold kept where it is at... You simply need to drop oil prices.. lol Remember, the action is in the reaction. 

¤ · Aug 17, 2011 - 8:55pm


Yeah, that was so brilliant I'm putting a pair of shades on cool

(please keep the grain alcohol away from any stoves or sources of ignition)

ewc58 · Aug 17, 2011 - 8:56pm

today's Hyper Report

Video unavailable
¤ · Aug 17, 2011 - 9:00pm

Can you say $90 oil soon?

Libya: Fierce battle underway for crucial Zawiyah oil refinery

A fierce battle was underway on Wednesdy night for outright control of Libya's only functioning oil refinery as opposition forces took on Gaddafi loyalists entrenched in the complex.

By Damien McElroy, Harsha

8:00PM BST 17 Aug 2011

The 120,000 barrel a day facility, in the western front line city of Zawiyah, plays a crucial role in supplying fuel for Tripoli and is one of the Gaddafi regime's last sources of petrol and gas.

Its capture would amount to a significant triumph for the rebels who could draw tens of thousands of barrels of crude oil from its storage tanks, while effectively cutting off supplies to the Libyan capital.

The rebels have already managed to shutdown its pipelines leading to Tripoli - the manager of the plant fled on Tuesday night after closing down the pumping station - and they now have the facility surrounded. A brigade of locally-raised security forces tasked with protecting the oilfeed fled in a truce.

"I saw the flame go out above the refinery and I knew Gaddafi was cut off," said Osama Arusi, the rebel field commander, told The Daily Telegraph.

However, heavy gunfire broke out at the refinery on Wednesday between the rebels and the remaining Gaddafi loyalists - around 100 of whom remain inside the complex, roaming the pipelines, ports, storage tanks and housing divisions, determined to hang on to the bitter end. Snipers were said to be have been deployed....

¤ · Aug 17, 2011 - 9:06pm

Generals gather in their masses...

Turkey warplanes attack Kurdish guerrillas in Iraq

Turkish warplanes attacked Kurdish guerrilla targets in northern Iraq on Wednesday, in apparent retaliation for a rebel attack in southeast Turkey which killed a dozen soldiers earlier in the day.

The coffin of a Turkish soldier killed during clashes with Kurdish rebels

The coffin of a Turkish soldier killed during clashes with Kurdish rebels Photo: AFP/GETTY

12:01AM BST 18 Aug 2011

The planes took off from a base in the southeastern city of Diyarbakir and struck targets in the mountainous Kandil and Zap areas of Iraq where the Kurdistan Workers Party (PKK) militants operate a number of bases, the sources said.

They said the targets included anti-aircraft defences and rebel shelters in the region, where several thousand PKK rebels are based and from where they launch attacks on Turkey.

Dozdar Hamo, a PKK spokesman said: "The border area has been bombed since 9pm (1800 GMT) by Turkish planes, and the bombing is very intense. Nearby there are three Kurdish villages. We have no casualties on our side. We don't know if there are any casualties among villagers."

The Turkish military has carried out similar air attacks on the rebel hideouts there in recent years.

"Different areas along the border have been bombed by Turkish aircraft on the pretext that there are camps from the PKK," said Ahmed Qadir, a local government representative in the hamlet of Sedaka, near the Turkish-Iranian border in Iraq's semi-autonomous Kurdish region....

¤ · Aug 17, 2011 - 9:09pm

...just like witches at black masses

China denies Pakistan gave it access to US helicopter used in Osama bin Laden raid

China has rejected media reports that Pakistan gave it access to a radar-evading helicopter that crashed during the U.S. mission to kill Osama bin Laden, calling them "preposterous."

7:00AM BST 17 Aug 2011

The Financial Times had reported that Pakistan allowed Chinese military engineers to photograph and take samples of the stealth chopper before giving it back to the US.

In its first public response, China's Defense Ministry said in a one-line statement: "This report is baseless and preposterous."

The US suspects that Pakistan shared the technology with China in retaliation for its May 2 raid that killed bin Laden on Pakistani soil, humiliating Islamabad.

A Pakistani official has denied the charge, saying Pakistan was aware the US had bin Laden's compound and the helicopter wreckage under round-the-clock surveillance after the raid, so it would know whether foreign technical experts had examined it.

The helicopter was one of two modified Black Hawks that defense experts said evidently used radar-evading technology plus noise and heat suppression devices to slip across the Afghan-Pakistan border, avoid detection by Pakistani air defenses and deliver two dozen Navy SEALs into the hiding place of the al-Qaeda leader....

¤ · Aug 17, 2011 - 9:11pm

"You scratch my back, and I'll..."

China launches satellite for Pakistan

China launches a communications satellite for Pakistan highlighting the close relationship between the two countries and China's increasing global dominance in space technology.

5:58PM BST 12 Aug 2011

The satellite PAKSAT-1R was carried by a Long March-3B carrier rocket which launched from the Xichang Satellite Center in China's Sichuan Province on Friday.

According to a cooperation plan between the two countries, by launching the satellite for Pakistan, China would provide relevant training for the country and help build two ground observation and control stations inside Pakistan.

Chief engineer of the PAKSAT-1R satellite, Wei Qiang said, "The Pakistani personnel, including supervisor and trainees have all been involved in the whole research and developing process of the satellite, which, I believe, will help greatly improve their own communications satellite research and development."

It is the third time China has provided an overall satellite service, a sign that the country is now gradually becoming one of the main astronautic service providers in the world.

bobby · Aug 17, 2011 - 9:12pm


is a disinformation agent from some three letter agency, but he must be a speed reader

youse guys should find better talent

re: Fox Business Scoreboard--who is that ten cent intellect hosting the show? and who did she blow to get the gig?

Save_America1st · Aug 17, 2011 - 9:14pm

Schiff hammers the Bernank!

Schiff was asked about Perry's comments on the Bernank being a traitor for printing money and debasing value of the dollar, etc. Schiff agreed w/ Perry...said he's been calling the Bernank and Greenspan traitors for years. Said that treason and counterfeiting are both punishable by death, so they rank on the same level and that's what the Bernank is doing. 


Save_America1st · Aug 17, 2011 - 9:16pm

Troll alert!

Troll alert...I think we all know who...

hit the road troll...

redwood · Aug 17, 2011 - 9:17pm

if you think gold is not manipulated think again

That said, there is a good chance that any effort to sell off holdings in the precious metal by George Soros and others may convince others to dump their own investments in gold rather than run the risk of being found on the outside of the trade looking in.

In fact I’m sure this is exactly what that cagey cat George Soros is betting on.

¤ · Aug 17, 2011 - 9:20pm

I carry a spare troll bridge for just these reasons

Feel free to borrow it anytime.

Video unavailable
ewc58 · Aug 17, 2011 - 9:22pm
redwood · Aug 17, 2011 - 9:22pm

Soros and gold

Since Soros divested himself of GLD, perhaps he knew (almost certainly) of what Venezuela is about to expose. This gets more interesting by day.

Sandiaman · Aug 17, 2011 - 9:23pm

Life In America

Check out my friends video about Life In America.

LIfe in America by Michael Hearne
LaMachinna ewc58 · Aug 17, 2011 - 9:23pm
Turdle GG · Aug 17, 2011 - 9:24pm


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