Sponsored by

Thursday Conversation - Tom Luongo


As you know, the NSFR of Basel3 are set to be implemented and enforced upon the EU Banks at the end of next month with UK Banks (and thus the LBMA) given a deadline of January 2022. If this all proceeds as scheduled, the impacts upon the current pricing scheme will be significant.

With this in mind, I thought we should continue emphasize Basel3 in these weekly podcasts. Last Thursday, we spoke with Alasdair Macleod with a focus upon the bullion banks and the unallocated pricing scheme. But the questions remain:

  1. Why would the BIS enforce these rules upon The Banks?
  2. And why now? Why not wait?

To that end, Tom Luongo published an insightful column late last week. It was picked up by Zerohedge and many of you read it. If you missed it somehow, you should be sure to look it over before listening to this podcast: https://tomluongo.me/2021/05/23/basel-iii-and-the-new-role-for-gold/

So with that as a backdrop, Tom and I use this discussion to delve into the "why now?" question more deeply. We need to ge these answers because, if indeed the BIS goes through with these rule changes, the global fractional reserve and digital derivative pricing scheme...and the role of the Bullion Banks which oversee it...is going to be changed forever. For more background, recall this last ditch effort by the LBMA from a few weeks ago: https://cdn.lbma.org.uk/downloads/Pages/NSFR-PRA-Letter-final_signed-202...

Many thanks to Tom for generously sharing his time with us today. Before you leave, be sure to check out Tom's site. It's full of excellent information and podcasts and it's a destination that you should be sure to add to your favorites list.


Subscribe or login to read all comments.

Become member and subscribe to Turd's Vault


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 10/18

10/18 9:15 ET Cap Ute and Ind Prod
10/19 8:30 ET Housing Starts
10/19 3:00 ET Goon Waller
10/20 1:00 ET Goon Quarles
10/20 2:00 ET Fed Beige Book
10/21 8:30 ET Philly Fed
10/21 10:00 ET LEIII
10/22 9:45 ET October Flash PMIs