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99.9% of Australia’s Gold Is Held In Bank Of England

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I would seriously be worried if I was Australian since 99.9% of its gold is stored in the Bank of England’s vaults. When the SHTF, good luck in getting it back. So many countries over the last few months have admitted to their gold being stored overseas either at the Fed or the Bank of England. 

The email below from the RBA has been made available on ausbullion.blogspot.com.au who campaigned for the information.

After a campaign throughout 2012 to seek clarity in regards to the location of Australia’s Gold Reserves the Reserve Bank of Australia (RBA) has confirmed today in an email to me that 99.9% of their Gold Reserves are held in the gold vault of the Bank of England.

Please read below for the text of the RBA’s email response to me dated 19/12/12:

Thank you for your email.
 
As at end-June 2011 the Reserve Bank of Australia held 80 tonnes of gold in London Good Delivery bars. The Reserve Bank holds 99.9 per cent of its gold reserves in the United Kingdom at the Bank of England. The remaining 0.1 per cent is held at the Reserve Bank’s Head Office in Sydney.
 
London is a major global gold trading market and the Bank of England provides a secure and cost-effective storage location for central banks and market participants. The Reserve Bank has processes in place to ensure that the gold reserves are maintained appropriately. It is not considered necessary from management, security or operational  perspectives to relocate the gold bars to a facility in Australia.
 
The Reserve Bank has reviewed its approach to releasing details about its management of the physical reserves of gold and decided to release the above information.
 
Please note that we answered your previous questions as a routine public enquiry.  The FOI Act concerns itself with the release of documents, rather than answering questions, so a request must seek documents to be valid. 
 
Regards
 

Chris Collins | Manager | Media & Public Relations Office

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Goldman Sachs Takeover of Bank Of England

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Finally the successor to Mervyn King is announced. In one corner was Goldman Sachs Jim O’Neil and in the other was Goldman Sachs Mark Carney who was the lucky winner.  Carney is not due to takeover from King until next June but ZeroHedge put forward a theory of Carney being picked for damage limitations purposes.

“Why not get a head that’s global? Bankers aren’t very popular, and a Canadian sounds like a good choice,” said Kent Matthews, a professor at Cardiff University and former Bank of England researcher. “It may well be that to restore credibility they have to look outside.”

 

So that’s the strategy: play Carney off as a Canadian, instead of as Goldman. We wonder how many minutes the general public will be fooled by that particular strawman.

Click here for map of Goldman Sach’s European domination so far.

Remember the trader Alessio Rastani on the BBC declare

“The governments don’t rule the world, Goldman Sachs rules the world.”

Check out the clip at 2:38

source: ZeroHedge, Guardian, Huffington Post

UK: Bank of England Has New Money Printing Trick

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You can always count on bankers to find new ways of bending accounting rules but in this case the Bank of England is now able to supply the UK Government with £35bn via the back door at the same time it has announced a halt to QE.

 

 

 

So now we know why the Bank of England’s Monetary Policy Committee called a halt to more Quantitative Easing this week – it’s because the Chancellor and the Governor of the Bank of England have concocted a backdoor way of doing the same thing.

The latest little (actually quite big at a tidy £35bn) money printing wheeze comes about as close to outright monetising of government spending as it is possible for the Bank of England to go without simply creating the money and handing it by the lorry load to the Treasury, a la Weimar.

What the Treasury has decided to do is take the accumulated interest payments on the stock of government debt the Bank of England has bought under quantitative easing, and credit it to the Government’s books rather than the Bank of England’s. The total is £35bn, of which the government intends to take £11bn this financial year and £24bn next.

This obviously helps the deficit in these two years quite a lot, creating space, should the Chancellor wish to take it, to ease back a little on the fiscal squeeze. For instance, he might choose to take the shadow Chancellor’s advice and further delay a scheduled increase in fuel duties. It also makes it easier for Mr Osborne to meet his fiscal mandate of eliminating the structural deficit within five years. Even the supplementary target of falling debt as a percentage of GDP by the end of the parliament – the one which City forecasters now widely believe Osborne will miss without further austerity – is marginally benefited by the latest piece of sleight of hand. It’s as if Osborne has died and been reborn as Gordon Brown, who famously manipulated his own fiscal rules to destruction.

The Government excuses its actions by saying that it is only bringing itself into line with practice in Japan and the US, the other major economies to be practicing substantial QE right now. It might also be argued that to the extent the European Central Bank indulges in bond purchases, it practices something quite similar too.

In any case, you might reasonably think that it doesn’t really matter how the government accounts for the interest on the Bank’s stock of gilts. Since the Bank of England is 100pc owned by the Treasury, the government has in essence only been paying interest to itself, so why not just stop the charade and save the money?

Wrong, wrong, wrong. The justification for keeping the interest is that it creates a buffer to fund expected losses on the gilts when the Bank of England comes to unwind its quantitative easing programme. These losses are now going to have to be met by the government directly at some stage in the future. Alternatively, the government could simply ignore them or write-them off. The Government is transferring the losses from today until tomorrow. The thin line which separates monetary from fiscal policy is being crossed in a way which substantially undermines the Bank of England’s claim to independence.

Source: Telegraph

Bank of England to Engage in Further QE

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The Bank of England are likely to engage in further QE in February after the current round finishes unless the economy improves (Whats the chances of that?) according to Martin Weale, a member of the Bank’s Monetary Policy Committee. Presently inflation is running at 5% but the Bank has forecast a sharp fall in 2012 and said it is more likely to be below the 2pc target than above it by 2013/14.

The Bank of England restarted QE in October, when it was clear that the eurozone debt crisis would hit UK growth. It announced a further £75bn, on top of the £200bn of QE between March 2009 and January 2010.

 

source The Telegraph.

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