Greenspan baut Notausgang für Bullionbanken ! - 500 Beiträge pro Seite

[TFischer]

Dazu GATA:

Is the Stage Being Set for a Gold Bailout of Bullion Banks?

There were a bunch of news stories the past several days that I found to be of interest so I thought I would bring them to your attention (at least in part) and make some comments:

Greenspan, Summers Want Protection for Banking System
The Associated Press

WASHINGTON (Reuters) - Federal Reserve Chairman Alan Greenspan and Treasury Secretary Lawrence Summers Friday urged Congress to act this year on legislation that would simplify the treatment of derivatives contracts in the event of the bankruptcy of a major financial company.

In a letter sent to House Speaker Dennis Hastert and Senate Majority Leader Trent Lott, Greenspan and Summers said the bill would help reduce the impact of the failure of any one financial institution on the stability of the broader financial system. "We believe this is a rare opportunity for the government to take an important tangible step to mitigate systemic risk and improve the integrity of our financial system," they said.

Derivatives are investments whose values are derived from an underlying financial asset, rate or index. They are widely traded among major banks, broker-dealers and other financial companies to manage and control complex business risks. The legislation aims to allow the speedy resolution of derivatives contracts held by a bankrupt financial firm rather than having them tied up in bankruptcy court, where delay could spread the firm`s problems to others involved in the deals.

Among other things, it would permit the "netting" -- or offsetting -- of all the derivatives contracts between a bankrupt financial firm and a counterparty to quickly arrive at a single outstanding claim. "It would reduce the likelihood that incidents such as the near-collapse of Long-Term Capital Management in September 1998 would pose a broader threat to our financial system," Summers and Greenspan said……

. "We are writing to urge that Congress pass ... a free-standing bill before the end of this legislative session," Greenspan and Summers said. "It is important that we not miss this opportunity." END.

Many Café members have queried as to what the end game might be for the bullion bank shorts and the for those that have lent out more than 10,000 tonnes of gold. How will it play out when the gold price explodes, as it must?

It is the opinion of some of us in the GATA camp that supply of physical gold required to hold down the price now is so large that a good chunk must be coming from US supply or from the IMF stash. Demand for gold is some 1500 tonnes per year greater than the supply coming out of the gold mines. Based on the Washington Accord, the major European sources are only supplying 400 tonnes of that supply via gold sales. Gold producers, on balance, are reducing their hedging, further contracting gold supply. The physical gold supply entering the market has to be from a very large undisclosed source and there are not many candidates.

The ramifications of US gold or IMF gold being clandestinely used to perpetuate the gold fraud has historic and sinister implications. That subject will be dealt with in various ways in the weeks to come.

For now, we must ask why is it so important that this bill be passed before the election? What urgency is out there to have a push for this bill at this point in time? I could not help but note that Long-Term Capital Management was brought up again. The GATA camp has knowledge that one of the main reasons that LTCM was bailed out was because of their huge borrowed gold short position.

The price of gold has dropped $30 per ounce since the LTCM bailout. Because of the large natural supply/demand deficit, that short, and others like it, could not have been covered yet without the gold price rising. However, it could have been transferred from the books of LTCM to other bullion dealers. If that were the case, the US government must have assured bullion banks that the price of gold would not rise so that there was no intermediate term risk for assuming LTCM`s borrowed gold positions. In essence, they would have a government guarantee for the borrowed gold short positions. Maybe that guarantee is running out and emergency measures will be required for an even bigger bailout to placate the bullion dealers?

Could it be that Manipulation Magicians, Greenspan and Summers are running out of tricks and physical gold supply and that they know trouble is right around the corner? Bush is leading in the US election polls. New revelations by the GATA camp will be presented to you in the very near future that give further credence to our strongly held opinion that the manipulation of the gold market was initiated in late 1994 and that Democrat Robert Rubin was the architect of this plan.

Summers may not only be out of tricks, but out a job - along with fellow Democrats in the current US Administration.

What would a new Treasury Secretary have to say about the gold fraud? When the GATA delegation met with the Speaker of the House on May 10, 2000 we told him that if the Republicans did not deal with this cancerous issue right away that they would be blamed when the gold price exploded and created financial havoc.

Bleibt die Frage: Wer zahlt die Rechnung?!

Gruss

TFischer

[TFischer]

Und hier noch weitere Greenspan Probleme:

Interessant ist der Dow Chart gemessen in Goldgramm!

http://www.usagold.com/gildedopinion/TurkFedReserve.html

Gruss

TFischer