Cyprus Gold

[Sparky]

A year ago in April, news was that Cyprus was going to be forced to sell most if it's gold to cover losses associated with its financial troubles. Over the next two weeks, the spot price of gold fell more than $200, from $1600 to below $1400, citing this news as a driving factor in the selloff.

I questioned whether such a gold sale would actually take place, so for many months I kept looking for a follow-up story. Nothing. All I could find was the original storyline from back in April.

Well, I guess the stories finally came out in December. I don't recall this being covered very well. Here's an example:

Cyprus Central Bank has no plan to sell gold reserves (http://www.reuters.com/article/2013/12/13/cyprus-gold-idUSL6N0JS1N220131213)

Imagine that. All that selling resulting from a baseless rumor.

Interesting excerpt from this report:

Central bank officials said the gold reserves, valued at 441 million euros on its balance sheet, were important to safeguard the institution's independence.

Interesting. Apparently holding gold reserves strengthens a government's sovereignty and independence. Weren't we told that gold's value in this regard was a relic of the past? Didn't Great Britain sell off most of its reserves in 2000 because gold reserves no longer played this role?

[mick silver]

are did the Brit s sell

[osoab]

If the gold is the central banks, then does it really belong to the country? Their cb has got to be intertwined with the Rothschild's banking syndicate.

So who needed the price of gold down in that time frame?

[osoab]

are did the Brit s sell

They sold.

Here is the money quote from this Telegraph article.


Revealed: why Gordon Brown sold Britain's gold at a knock-down price (http://blogs.telegraph.co.uk/finance/thomaspascoe/100018367/revealed-why-gordon-brown-sold-britains-gold-at-a-knock-down-price/)




Goldman Sachs, which is not understood to have been significantly short on gold itself, is rumoured to have approached the Treasury to explain the situation through its then head of commodities Gavyn Davies, later chairman of the BBC and married to Sue Nye who ran Brown’s private office.

Faced with the prospect of a global collapse in the banking system, the Chancellor took the decision to bail out the banks by dumping Britain’s gold, forcing the price down and allowing the banks to buy back gold at a profit, thus meeting their borrowing obligations.

[Neuro]

If the gold is the central banks, then does it really belong to the country? Their cb has got to be intertwined with the Rothschild's banking syndicate.

So who needed the price of gold down in that time frame?
I remember in the late eighties, how politicians in Sweden where arguing the importance of an "independent" central bank, iow without politicians influence over central banks policy, because politicians couldn't be expected to act responsibly in relation to monetary policy, which they kind of proved during the 70's and 80's after the downfall of Bretton-Woods. The funny thing was that pretty much all mainstream politicians argued the same thing, from conservatives to communists, and the only thing they were overbidding each other on was how much "independence" the central bank was going to have. The consensus in retrospect was to hand over the issuance of money to the Rothschild banking cartel... One of the results was that Soros made billions on crashing the Swedish Krona in 1992, at the expense of the Swedish people. They sure fooled us!