James Turk: “If you don’t have control of your gold, you don’t have control of your sovereignty.”

King World News

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Today James Turk spoke with King World News about desperate steps and increased propaganda which are being undertaken by the Western central planners in an attempt to keep the gold and silver markets subdued. This is the second in a series of interviews with Turk that will be released today which reveals the increasingly desperate moves and propaganda we are now seeing emanate from the West.

Eric King:

“I’m going back to this Indian situation, James, because I don’t think people fully understand what a desperate sign this is by the cartel. We had been asking, where is this gold going to come from? We can’t keep emptying the Western central bank vaults and they know they can’t keep up with this falloff in production we are going to see. So in total desperation now, the attempt is to smash gold imports from going into India because they don’t have a choice. This is truly desperation on their part.”

Turk:

“Yes, absolutely. And isn’t it curious that somehow they got the Queen of England to go through the bank vault to proclaim how much gold is actually being stored there in the Bank of England? The unfortunate thing is we don’t know how much of that has been double, triple, or even quadruple times hypothecated and re-hypothecated?….

Continue reading the James Turk interview below…

36 UBS Bankers To Be Implicated In Liborgate, Criminal Charges To Be Filed

ZeroHedge

As the fallout of Liborgate escalates, the next big bank to be impacted in the fallout started by Barclays civil settlement “revelation” is set to be troubled UBS, already some 10,000 bankers lighter, where as many as three dozen bankers are reported by the implicated in the fixing of the rate that until 2009 was the most important for hundreds of trillions in variable rate fixed income products. Only instead of attacking the US or even European jurisdiction, where the next big settlement is set to hit is Japan: a country whose regulators as recently as half a year ago promised there were no major issues with Libor, or Tibor as it is locally known, rate fixings. And while this most recent development will have little material impact on UBS’ ongoing business model, the one difference from previous settlements is that it will likely include criminal charges lobbed against some of the 36 bankers.

From the FT:

“UBS is close to finalising a deal with UK, US and Swiss authorities in which the bank will pay close to $1.5bn and its Japanese securities subsidiary will plead guilty to a US criminal offence. Terms of the guilty plea were still being negotiated, one person familiar with the matter said on Monday, adding that the bank will not lose its ability to conduct business in Japan. The pact between the bank and the US Commodity Futures Trading Commission, US Department of Justice, UK’s Financial Services Authority and UBS’s main Swiss supervisor Finma is expected to be announced on Wednesday, although last minute negotiations continue.”

More:

Not all of the three dozen individuals will face criminal or civil charges and the level of alleged misconduct varies among them. While it also is not clear how many bankers will be criminally charged, people familiar with the investigation said the settlement documents will document an intercontinental scheme to manipulate the Yen-Libor interest rate over several years involving desks from Tokyo to London.

The UK FSA has also notified at least five individuals linked to UBS that they are being personally investigated in connection with Libor. The watchdog has the power to impose fines and ban people from working in London’s financial services industry.

Criminal and regulatory investigations of individuals often take significantly longer than cases against institutions. The global settlement reached with Barclays over the summer did not include any charges against individuals, but several bankers are under criminal investigation, according to people familiar with the matter.

To a big extent, the reason why so many banks have given up on Libor and are now eager to settle comparable allegations, is because in a world in which not banks are primary counterparties to other banks, but central banks onboard all the counterparty risk, especially in Europe, Libor is now an anachronism – an unsecured lending rate remnant from another time, a time when there was risk a bank may fail without dragging its host central bank. That time is now gone, and as a result the only relevant metric now is how effectively can banks flush to the gills with excess reserves courtesy of various central banks, use said capital to generate a return on (central bank) capital, and a high enough ROE to keep shareholders happy.

Which is why even as banks are settling Libor allegations left and right, and even willing to throw some low-level traders under the bus because just like Fabulous Fab Tourre, nobody else had any idea of the criminal rate manipulation that was going on, and certainly not the corner office, what banks are really doing is learning from the master of trading – that would be none other than Steve Cohen – and experimenting with becoming the best hedge fund out there. Because in the new zero NIM normal, where money can not be made by traditional lending verticals, the only option left is to outsmart the competition.

And with retail investors leaving the marketplace in droves, the only ones left to be outsmarted are other banks. In other words, the cannibalization phase is almost upon us. Which means that just like the Knight Capital “fat finger” led to the collapse of one of the biggest market makers, so more and more banks will soon set their sights on their peers (think Bear and Lehman circa 2008), in an attempt to turbocharge their returns in a field in which there are simply too many competitors for everyone to make the needed returns.

Of course, if in the meantime some lowly attorney general can score some brownie points by amputating a division that is no longer needed, and throwing some janitors in minimum security prison for 12-24 months, so much the better for their political career. Sadly, nobody at the top, certainly nobody at HSBC or any of the other big banks, will ever see true justice, at least not until they too suffer the fate of Dick Fuld and suddenly find themselves as the main dish at the ever shrinking predators’ ball.

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Just coincidence? Queen is Trotted Through Bank of England’s Gold Vault

GoldSeek

Dear Friend of GATA and Gold:

Maybe it’s just a coincidence but maybe instead it’s a propaganda campaign launched by the British government and the Bank of England to assuage growing international concerns about the oversubscription, lending, and swapping of Western central bank reserves.

First, a few days ago, the Bank of England invited videojournalist Brady Haran and University of Nottingham chemistry Professor Martyn Poliakoff to tour its gold vault for a fascinating lecture in which the professor discussed gold’s remarkable qualities. (Of course gold’s most remarkable quality may be its capacity to replicate itself to infinity in the hands of a central bank — just like ordinary money.) The Guardian’s report of the tour, along with a link to the video made about it, is here:

http://www.guardian.co.uk/science/grrlscientist/2012/dec/10/1

And then today the Bank of England welcomed Queen Elizabeth II herself for an even grander tour of its gold vault, which attracted all the major British news organizations and instantly became a sensation throughout the United Kingdom.

The Telegraph’s story is here:

http://www.telegraph.co.uk/news/newsvideo/royalfamilyvideo/9742780/Queen…

The Evening Standard’s is here:

http://www.standard.co.uk/news/uk/dont-do-it-again-prince-philips-advice…

But perhaps most interesting is the Daily Mail’s account, since it is accompanied by the most photographs and is headlined with what may have been meant as a bit of a joke but what actually is the crucial question of the hour, never officially asked: “How Much of This Is One’s Own Gold?”:

http://www.dailymail.co.uk/news/article-2247578/How-ones-gold-Queen-insp…

How much indeed? For as recently as last year the Bank of England insisted on secrecy for its gold market activities, including leasing, which the bank said it discontinued in 2007; swapping, on which the bank did not comment; and transactions involving other central banks whose gold is vaulted or said or thought to be vaulted at the Bank of England:

http://www.gata.org/node/10778

Of course one can’t expect the queen to be familiar with such obscure detail. She has spent her life not studying economics but, far more tediously, gladhanding for the British government, and when she was trotted through the gold vault today it was her job to accept the most superficial and patronizing answers from bank officials about how the disaster in the world financial system could have been allowed to happen. But they did let her see the gold — somebody’s gold anyway.

Now if only the queen could get an invitation to tour Fort Knox. Could we get those Australian radio pranksters to do just one more royal impersonation in a phone call to the Treasury Department? Or would that risk Secretary Geithner’s suicide?

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Largest Capital In The World Now Entering Gold & Silver Space!

Today Rick Rule told King World News that the most massive and most intelligent pools of capital on the planet are now looking to crowd into the gold and silver space.  This is huge news for a sector that has been in a state of consolidation for over a year, and strongly supports the thesis that 2013 will be a banner year for gold and silver.

Rule had this to say about this extraordinary development: 

“The things that support the thesis, particularly with regards to the gold equities, has been the approaches Sprott (Asset Management) has gotten from the very largest sovereign wealth funds in the world, and the very largest suppliers of private capital in the world.”

Rick Rule continues:

“It’s interesting to see the big money starting to be attracted to the sector.  It’s interesting to see that point of view being shared by the largest aggregations of capital on the planet.  There are oceans of capital looking for a home.

There are literally trillions of dollars looking for a home….

Continue reading the Rick Rule interview below…

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