Procuring physical gold seems to be a rather problematic and time-consuming
process.
While most of America was fully immersed in the Christmas holiday, Glenn Beck and his team noted a troubling story presented on the fantastic financial website Zero Hedge.
The story centers around a request from the German government to repatriate portions of their gold reserves held in America by The FED. There are many tentacles to this story, which would leave many of my readers deep in the weeds, but the story itself from Zero Hedge offers a strong overview of the situation, complete with opportunities to seek additional depth on the story. Please see the Zero Hedge blogpost HERE.
There are seemingly logical reasons for the retrieval of physical gold to issue plagued. Perhaps foremost on the list is covered at the end of the Zero Hedge piece, in that China and India are hoarding physical gold. An overview of the reasons behind this demand shines a spotlight on the real elephant in the room.
Meet the theory of hypothecation.
David Buckner joined Glenn Beck back a year or so ago to effort to explain hypothecation in what most would consider English. Please take a listen:
In reflecting on the Christmas season, the wonderful Frank Capra movie Its A Wonderful Life comes to mind when attempting to provide a basic overview of hypothecation.
The Bailey Building and Loan Association, of which the central character George Bailey was the president, engaged in mortgage lending, lending out portions of monetary deposits to qualified buyers in an affordable housing project. Provided the association retained proper reserve requirements without commingling funds, this was a quite ordinary and profitable enterprise for such a loan association. Failure to adhere to regulatory banking laws would appropriately lead to fraud likely commensurate with incarceration upon conviction.
Enter The Federal Reserve. The FED, as the holder of the physical gold, may lend to banks, and others, utilizing the gold as collateral, provided the depositors have consented to such an agreement. An agreement in this regard would certainly have reserve requirements, although the FED, not being a public company and a quasi-governmental firm, has no regulatory requirement to publicly release terms of such agreements or asset balances.
Back to the request by Germany to obtain portions of their physical gold deposits from The FED. The Zero Hedge piece noted the agreed upon amount of the first batch to be delivered was short, and Germany noted it was not the same gold initially deposited, as it was marked.
Why was did The FED short the batch size, and why were the gold bars not the original ones deposited? Glenn Beck asks some legitimate questions about the batch and potential reasons for the alteration of the originally deposited gold bars, and the conclusions drawn are hair on fire troubling.
Has The FED deviated from common banking guidelines with respect to collateral requirements of gold reserves? Does The FED actually possess the physical gold? Are adequate reserves in place to accommodate the subsequent levels of hypothecation?
Where would these reserves be if not in the possession of The FED. The financial crisis of 2008 was the greatest theft in history, and we still wonder who got all the loot.
If the gold is not possessed by The FED, given gold the position gold holds as the cornerstone of finance, the result would be catastrophic for everyone, and global collapse would be imminent.
Even Mr. Drysdale won't be able to fix this.
Showing posts with label David Buckner. Show all posts
Showing posts with label David Buckner. Show all posts
Thursday, January 9, 2014
Tuesday, December 20, 2011
Crony Corruption Could Collapse America
Several months ago, astonishingly, former New Jersey Governor Jon Corzine was thought to be the leading candidate to replace Timothy Geithner as Treasury Secretary. Both President Obama and Vice President Joe Biden were very fond of Corzine, a former Goldman Sachs CEO, and his economic knowledge and leadership.
That was before MF Global, the commodities boutique Corzine was CEO of went bankrupt and is missing 1.2 billion of customer funds.
Oh, the company that you keep.
Corzine failed miserably as Governor of New Jersey, blowing a hole the size of the Meadowlands in the Garden State checkbook. Residents there, who gathered their senses and elected Chris Christie to clean things up, are witnessing a telling turn around.
But it is Corzine's latest failure that will ultimately have a ripple effect that will engage each of our tax paying citizens. Ann Barnhardt, CEO of Barnhardt Capital Management, Inc., a small independent introducing brokerage, has been some kind of spot in analysis of this case, and recently shut down her operations due to a lack of trust in the commodities futures market. MF Global has exposed what many had feared; that the rule of law in our capital markets can be absent at any given time, and a lawless entanglement with uncertainty is toxic for any investor.
Few think Corzine is an idiot, so the concept that, as he testified in front of Congress, he has no idea how the money went missing is beyond laughable. This money is not mistakenly misplaced; it was stolen. As as George Bailey astutely pointed out, there should be a bank examiner, if not the FBI, with a warrant for the arrest of the firms officers. But surprisingly, perhaps due to the close relationship Corzine has with Obama, there is not. The thought that this event was orchestrated has crossed many a mind, and swamped with supporters of Cloward and Piven in Washington, it gains validity.
As Ms. Barnhardt points out, customer money is gone and the MF Global "trustee" has begun seizing customer assets who traded in precious metals and housed the investment collateral through contracts brokered by MF Gobal.
A form of retracing through the chain of investors, bankrupt or not, to recover losses can be referred to as part of hypothecation. Zero Hedge has been covering the recent emergence of this action like Deion Sanders covering a hobbled tight end. The term was originally making the rounds with respect to a potential collapse of the Euro, but it plays with any loss of collateral where re-pledging has occurred. Sadly, it creates the opportunity for investors on the outside to suffer huge losses, with little legal recourse.
David Buckner got with Glenn Beck to attempt to provided an example of how this could impact the economic system, and it could make your ears bleed. Take a listen:
Fast and Furious, Solyndra and the Chevy Volt are many of the scandals of the Obama administration, but the The MF Global collapse is a canary in the coal mine, and the scandal is much deeper than you know. The MF Global players are part of the crony capitalism set up by the Obama administration. While JP Morgan Chase and George Soros are snapping up the fallout at handsome profits, it seems more likely every day investors will not get their money back.
It has been stolen, by a cast of crony capitalist thieves, with full backing of the corrupt leaders in Washington. More is sure to follow in this case, and the lack of trust in the capital markets Ms. Barnhardt spoke of is growing. Technocrats, in many cases, are in control, operating against the will of the people and the rule of law.
Should a catastrophic economic collapse hit our shores, will your assets be protected from hypothecation from government owned banks? I have often been cited as a master of stating the obvious, but the time to keep your investments on a short lease is staring you in the face.
That was before MF Global, the commodities boutique Corzine was CEO of went bankrupt and is missing 1.2 billion of customer funds.
Oh, the company that you keep.
Corzine failed miserably as Governor of New Jersey, blowing a hole the size of the Meadowlands in the Garden State checkbook. Residents there, who gathered their senses and elected Chris Christie to clean things up, are witnessing a telling turn around.
But it is Corzine's latest failure that will ultimately have a ripple effect that will engage each of our tax paying citizens. Ann Barnhardt, CEO of Barnhardt Capital Management, Inc., a small independent introducing brokerage, has been some kind of spot in analysis of this case, and recently shut down her operations due to a lack of trust in the commodities futures market. MF Global has exposed what many had feared; that the rule of law in our capital markets can be absent at any given time, and a lawless entanglement with uncertainty is toxic for any investor.
Few think Corzine is an idiot, so the concept that, as he testified in front of Congress, he has no idea how the money went missing is beyond laughable. This money is not mistakenly misplaced; it was stolen. As as George Bailey astutely pointed out, there should be a bank examiner, if not the FBI, with a warrant for the arrest of the firms officers. But surprisingly, perhaps due to the close relationship Corzine has with Obama, there is not. The thought that this event was orchestrated has crossed many a mind, and swamped with supporters of Cloward and Piven in Washington, it gains validity.As Ms. Barnhardt points out, customer money is gone and the MF Global "trustee" has begun seizing customer assets who traded in precious metals and housed the investment collateral through contracts brokered by MF Gobal.
A form of retracing through the chain of investors, bankrupt or not, to recover losses can be referred to as part of hypothecation. Zero Hedge has been covering the recent emergence of this action like Deion Sanders covering a hobbled tight end. The term was originally making the rounds with respect to a potential collapse of the Euro, but it plays with any loss of collateral where re-pledging has occurred. Sadly, it creates the opportunity for investors on the outside to suffer huge losses, with little legal recourse.
David Buckner got with Glenn Beck to attempt to provided an example of how this could impact the economic system, and it could make your ears bleed. Take a listen:
Fast and Furious, Solyndra and the Chevy Volt are many of the scandals of the Obama administration, but the The MF Global collapse is a canary in the coal mine, and the scandal is much deeper than you know. The MF Global players are part of the crony capitalism set up by the Obama administration. While JP Morgan Chase and George Soros are snapping up the fallout at handsome profits, it seems more likely every day investors will not get their money back.
It has been stolen, by a cast of crony capitalist thieves, with full backing of the corrupt leaders in Washington. More is sure to follow in this case, and the lack of trust in the capital markets Ms. Barnhardt spoke of is growing. Technocrats, in many cases, are in control, operating against the will of the people and the rule of law.
Should a catastrophic economic collapse hit our shores, will your assets be protected from hypothecation from government owned banks? I have often been cited as a master of stating the obvious, but the time to keep your investments on a short lease is staring you in the face.
Sunday, March 28, 2010
The American Revival
Although it was a lovely day here in beautiful downtown Orlando on Saturday, I spent the day with three friends at the UCF Arena in Orlando attending the Glenn Beck American Revival Tour, and it was truly a wonderful experience had by all.
The day focused on becoming reconnected with three distinct values that were integral building blocks of our founding fathers; faith, hope and charity.
David Barton began the day giving us a thorough history on the role faith played in the formation of our country, and how extensively the founding fathers referenced religion in their writings. Unfortunately, many are tyring to diminish the role of faith in the birth of America, and it was great to hear some keen insight on this vitally important subject.
The economics of the day are indeed critical as we are on an unsustainable path and are on the heels of adding a mind boggling entitlement program so expensive we ran out of zeros on the old HP12C. Economist David Buckner, of Columbia University in New York, discussed that in order for there to be hope, there must first be truth and we need to know the cold hard facts about our economic standing to take the correct paths going forward. A real no spin zone!
The Constitution is under attack and who better than Judge Andrew Napolitano of FOX News to offer a rousing perspective on how the intrusive governmental acts over time have eroded our rights as they were outlined in The Constitution. The Judge hit it out of the park and reiterated that our rights are given to us by our Creator and not by government, and free people are notably generous through the goodness of their heart and not by governmental force of hand.
Glenn Beck keynoted the day and was, as usual, tremendous. The day was not spent firebombing those in office, but rather outlining an educational foundation from which a course of action can be taken to regain the values and principles our founding fathers set out for us, which do not include strangling debt, a departure from faith, intrusive government and the erosion of our rights.
Many thanks to Glenn, the panelists and of course, Stu and Pat for a wonderful event.
The day focused on becoming reconnected with three distinct values that were integral building blocks of our founding fathers; faith, hope and charity.
David Barton began the day giving us a thorough history on the role faith played in the formation of our country, and how extensively the founding fathers referenced religion in their writings. Unfortunately, many are tyring to diminish the role of faith in the birth of America, and it was great to hear some keen insight on this vitally important subject.
The economics of the day are indeed critical as we are on an unsustainable path and are on the heels of adding a mind boggling entitlement program so expensive we ran out of zeros on the old HP12C. Economist David Buckner, of Columbia University in New York, discussed that in order for there to be hope, there must first be truth and we need to know the cold hard facts about our economic standing to take the correct paths going forward. A real no spin zone!
The Constitution is under attack and who better than Judge Andrew Napolitano of FOX News to offer a rousing perspective on how the intrusive governmental acts over time have eroded our rights as they were outlined in The Constitution. The Judge hit it out of the park and reiterated that our rights are given to us by our Creator and not by government, and free people are notably generous through the goodness of their heart and not by governmental force of hand.
Glenn Beck keynoted the day and was, as usual, tremendous. The day was not spent firebombing those in office, but rather outlining an educational foundation from which a course of action can be taken to regain the values and principles our founding fathers set out for us, which do not include strangling debt, a departure from faith, intrusive government and the erosion of our rights.Many thanks to Glenn, the panelists and of course, Stu and Pat for a wonderful event.
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