Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Bonfire of the Absurdities
By: John Mauldin

The Social Security Inflation Lag Calendar - Partial Indexing Part 1
By: Daniel R. Amerman, CFA

Rob From The Middle Class Economics
By: Gary Christenson

GoldSeek Radio Nugget: John Williams and Chris Waltzek
By: radio.GoldSeek.com

The Metals Market Is A Mess And Will Likely Continue To Frustrate You
By: Avi Gilburt

Is New Fed Chief A “Swamp Critter Extraordinaire”?
By: GoldCore

Asian Metals Market Update: November-17-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold Holds Near Unchanged While Stocks Gain on Tax Vote
By: Chris Mullen, Gold Seeker Report

Comparing Digital Metals
By: Craig Hemke

 
Search

GoldSeek Web

 
All central banks swap gold, Venezuelan central banker says, but who asks why?

By: Chris Powell, Secretary/Treasurer, GATA

 -- Published: Wednesday, 23 March 2016 | Print  | Disqus 

Dear Friend of GATA and Gold:

In the report excerpted below Reuters reminds us today that in February the president of Venezuela's central bank, Nelson Merentes, discussing gold swaps such as those the bank had begun, told the news agency: "It's normal. All central banks do this."

Seven years ago the U.S. Federal Reserve confessed to GATA, if inadvertently, its own participation in gold swaps, though, unlike Venezuela's central bank, the Fed insisted on secrecy for its swaps:

http://www.gata.org/node/7819

But if "all central banks do this," what is their objective?

In Venezuela's case the objective is plain: The kleptocratic regime that has driven the country into the ground needs foreign currency, for which the national patrimony is being pawned. But what are the Fed's purposes with gold swaps? And if Morantes is correct that "all" central banks undertake gold swaps, what are their purposes? What are they doing in the gold business? Is the objective similar to that of gold leasing by central banks, which, as Federal Reserve Chairman Alan Greenspan told Congress in 1998, was undertaken to hold the gold price down?:

http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm

That is, are gold swaps often undertaken to move gold around as necessary to intervene surreptitiously in the currency markets and thereby manipulate and rig them? For example, do exchange-traded funds like GLD participate in gold swaps with central banks to prevent shortages from developing in the gold market and thus to hold the price down and to defend government currencies and bonds?

And, of course, since the story has practically been hurled in their face, why aren't Reuters and other mainstream financial news organizations asking about those other gold swaps? In spite of these admissions, do the news organizations really believe the pontifications of Casey Research founder Doug Casey and others that central banks couldn't care less about gold?

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *

Venezuela Exports $456 Million in Gold to Switzerland Amid Cash Crisis

By Alexandra Ulmer and Corina Pons
Reuters
Tuesday, March 22, 2016

CARACAS -- Venezuela exported about 443 million Swiss francs ($456 million) worth of gold to Switzerland in February, data showed on Tuesday, as the South American country's central bank carried out swaps to receive cash due to a biting economic crisis.

Details of the data published by the Swiss customs bureau were not immediately clear, though Venezuela's central bank's president in February confirmed to Reuters it had been carrying out gold swaps.

"It's normal. All central banks do this," said Nelson Merentes, adding that the operations have time frames of three to four years with multiple banks, which he did not identify.

"As part of our strategy, the (central bank's) board of directors has decided to carry out swaps."

The OPEC country is suffering from a severe recession, triple-digit inflation, and chronic product shortages. The government's currency control system has slashed approval of dollars for product imports, leading to empty store shelves and snaking supermarket lines. ...

... For the remainder of the report:

http://www.reuters.com/article/venezuela-gold-switzerland-idUSL2N16U1UR

* * *

Join GATA here:

Mines and Money Asia
Tuesday-Thursday, April 5-7, 2016
Hong Kong Convention and Exhibition Centre
Hong Kong Special Administrative Region, China

http://asia.minesandmoney.com/

Mining Investment Asia
Wednesday-Friday, April 13-15, 2016
Marina Bay Sands, Singapore

http://www.mininginvestmentasia.com/

Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


| Digg This Article
 -- Published: Wednesday, 23 March 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.