Over the weekend we stated the gold repatriation avalanche had begun with a Netherlands citizens group joining the German Federal Accountability Office in demanding the BOE and NY Fed return their nation’s gold reserves.

We predicted that an avalanche of nations across the West would soon join Germany and Venezuela in attempting to repatriate their tungsten gold reserves from the Fed and the BOE, and it appears that avalanche is picking up momentum as Ecuador, with 26.3 tons of gold reserves, has just demanded the repatriation of one third of their foreign gold holdings ‘to support national growth‘.

From Bloomberg (h/t ZH):

Ecuador’s government wants the nation’s banks to repatriate about one third of their foreign holdings to support national growth, the head of the country’s tax agency said.

 

Carlos Carrasco, director of the tax agency known as the SRI, said today that Ecuador’s lenders could repatriate about $1.7 billion and still fulfill obligations to international clients. Carrasco spoke at a congressional hearing in Quito on a government proposal to raise taxes on banks to finance cash subsidies to the South American nation’s poor.


In SilverDoctors’ exclusive interview with Cheviot’s Ned Naylor-Leyland discussing the gold repatriation issue published earlier today, Naylor-Leyland stated that the key issue will be whether the gold repatriation issue spreads, and that those with physical metal on deposit in NY or London shouldn’t expect to see an ounce of real metal:

I think the more important issue though is whether this (repatriation requests) spreads.  We’ve seen some further comment from within Holland, although I think that’s still at quite an early stage development/story over there.
The key thing is that this particular subject becomes more widely understood and discussed. 
As you and I know, if you’re holding your central bank gold reserves either in the Bank of England or the NY Fed, unless you are Theseus trying to find the Minotaur, you have no chance of getting out of there with any metal.   It’s going to be a really interesting 3-6 month period here where undoubtedly the subject has to evolve from its current relatively early stage and become a much bigger deal.

Welp, that didn’t take long.

 

Unfortunately for our central bankster friends, it appears the musical chairs game of allocated/fractional/rehypothecated paper gold is quickly coming to an abrupt end.   As Jim Willie so eloquently explained earlier today, this could quickly devolve into WWIII.

Got PHYZZ??

  1. They probably want all of it but it’s not ready for shipment, someone else owns it and it has to be aquired over a period of time to maintain the demand/price curve. Or maybe they don’t want to be a bother : )

  2. This is the sharp end of the avalanche. Germany who has a lofty independance on the Euro issue is showing a slight disregard for keeping up the appearance of solidarity on the global economic imporance of Gold and has realised that it’s “first in best dressed” as far as getting their share of the mythical 8,000 odd tons of Gold held in the US. Ecuador having less reason to be polite to the powers that be about their piece of the pie are making a grab.
    It’s unfortunate that this is probably the beginning of the end of the facade of cordiality regarding Gold and other assets held abroard, there’s going to be some mighty disappointed players. We can only wonder about what will ensue . . . .
    Keep stacking !

  3. Naylor-Leyland stated that the key issue will be whether the gold repatriation issue spreads
    -  -  -  -  -  -  -  -  -  -  -  -
    The key question is not whether the issue spreads, but whether there is actually enough physical Gold in New York, London, etc.  to satisfy the growing number of countries who want to bring their Gold home.

  4. @ clambake, yes there’s going to be some mighty disappointed players.

    This reminds me of the childhood game, ‘musical chairs,‘ in which those who are still standing when the music stops, will not have a chair to sit in.    See – everything that you need to know as an adult  – you were taught in those old childhood games, nursery rhymes & stories that have been passed down through generations.

    • Actually, it is musical chairs without any chairs. The scum is already claiming that they “lost” their gold in their Haarp generated storm Sandy.

  5. All I can say is WOW!  This really looks like it is starting to quickly snowball into a desparate escape for the exits!  Watch these banker scum turn on each other like the scoundrels they are.  Just keep your metal hoarding a private affair as things heat up, I expect the MSM to try and deflect blame onto people like us for wrecking this wonderful, just and equitable system they have built….

    • I keep all my gold, silver, copper and nickel in the reserves of the Bank Of Successful Sumkid (BOSS)! I follow the principle of “If you don’t hold it, you don’t own it”. Even if I do want to keep my gold and silver at a bullion bank, I can not do it because you have to be 18 years or older.

  6. 427  I notice that most of my posts  have the phrase   ‘your comments awaiting moderation’  I never knew what it meant.  Maybe it had to clear some of my more inflammatory comments about Chas Napolitano, the TSA and Nazis.   The Gestapo reads the Silver Doctors, of that I am sure.  I can only imagine what they think.  But I think that it is something pretty harmless since my stuff passes review as far as I know.

    • @AGXIIK – the posting/commenting system has a build in automatic moderation feature…its designed to attempt to filter out spam.  occasionally it does put a regular SD user’s comments in moderation, but it also prevents hundreds of comments like Click here to sell your gold jewelry and click here for a free enlargement.
        im not a techie so I dont understand all of how it decides to moderate some posts…but I get to them and approve readers comments tripped up in the filter as soon as I see them and am able.

    • @AGXIIK

      Yes AG  “your comments awaiting moderation” Is when they have words blocked or a member in there entirety. And also sometimes when you post articles with many links

    • Spam blocker is embedded in the blog software package.  It has an obvious issue with sometimes blocking user posts and moving them into a spam folder.  It’s not the Doc’s doing.  Future updates may have a fix.  Until then the work around is someone has to manually look through the spam folder and release the authentic posts.  Have I got it about right, Doc?

    • @427 You mean like this?
      http://www.todayifoundout.com/wp-content/uploads/2010/09/spam5.jpg
       
      To do it like that, you should copy the picture and then paste it on the comment box. But, don’t copy and paste the picture’s link. So, copy and paste only the picture itself with the right click.

  7. Understood Doc  I figured that posting something with the PIPA or SOPA problems we heard about a while back would require moderation. I dont bring any photos, links or videos to SD because I’m a technodoofus.  Too much brain damage for me.  Besides which the folks at KNW get pretty think skinned at times.
    There’s also  the potential for someone  here  like Pat Field or Ed B saying something really edgy and getting a Brandon Raub treatment. (Just kidding guys)
     I think along those lines since some of my BOB homies and I say things that could get us a trip to Gitmo. We are kind of paranoid when it comes to email and phones.
      One thing I dont want to do is get someone elses website in trouble because of my posts and stuff.  thanks for explaining.

    • “There’s also  the potential for someone  here  like Pat Field or Ed B saying something really edgy and getting a Brandon Raub treatment. (Just kidding guys)”

      GRRR… LOL!  :-)
       

  8. Let it snow, let it snow, let it snow.  The more snow the bigger the avalanche.  It is always the unstable under-layer that causes the fall.  
     
    If we see many more by the end of the week, I would expect a quick rise in the prices. 

  9. As another wedge is driven into the exposure of the Federal Reserve as a total fraud. They may get something back but I bet over half of it won’t be gold. Going to have to test every last ounce.

    • Indeed they are, Mary, and I am hoping that each and every “gold” bar will be tested via ultrasound to guarantee that it really is ALL gold.  Further, I want those who are requesting their gold to publicly state that they are going to do this BEFORE accepting ANY of these bars as “their” gold.  Squeeze those bankster b@st@rds and squeeze them until they go… POP!  :-D

       

  10. Pat Fields and Ed B  You make so much sense and tell the truth about the system that in my opinion that could actually make a person dangerous to the powers that be  Truth is not a commodity valued in high places today.  It can be down right dangerous and people ARE Waking up to the reality of our situations Many times I self-moderate to add a little caution to my words

  11. Chavez is looking like the smart one here.  He got his gold.  Crazy how things work sometimes.  Chavez is one evil guy.  But, perhaps his one redeeming quality is that he has been onto the Western and European banksters for some time.  Used his influence to keep the likes of JPMorgan and Goldman Sachs out of much of South America.  Probably saved most of the countries down there from the fate of Greece and Spain.

  12. Ecuador is having a major dispute with England over giving Julian Assange asylum in their Embassy in central London. The US is involved since Assange believes, if he leaves the embassy he will be eventually deported to the US and being accused of espionage for his role in Wikileaks. With Germany, and others, requesting their gold, Ecuador probably sees this as a good time to send several messages at once. The US has isolated this country so much that they have turned them into an enemy. We cannot afford to keep adding to that list.  

    • Ecuador should tell Britain/ US that if Julian Assange isnt allowed to leave soon, unmolested , they will demand ALL their gold, and raise the biggest stink about  it if they delay or make excuses.  Maybe the scumbags can come up with 1/3.
       
       
       

  13. It’s sad that America is more inclined to turn countries into enemies.  We used to create allies.  From what I read Ecuador is a country with a solid rule of law. I l hope that they can get their gold back but just asking for 1/3 is almost like Oliver Twist begging for a bit more gruel.  It would be nice if all the countries in the world could sit at the same table without rancor and each get a serving of justice without feeling like they are only tolerated.  Ow well, there is next year.
    There is something fascinating about income tax, our labor value in silver and the ultimate taxes; capital gains and death taxes.   With the posts here outlining the reality of the story of income taxes and my newness to the precious metal paradigm, it seems strange and obtuse as to how income taxes are tied to the use of a currency. Or maybe its just the use of the FRN.  It is as if we, the people, were suckered into using the FRN and once trapped within this single currency we were then forced to accept the income tax, something that was only used rarely in our past history. The government’s forced repudiation of gold in FDRs reign and later the same for silver during the 1960′s apparently supports this contention. 
      Our value as laborers was once based on the fractional silver units of work. Those silver bits, in and of themselves, represented a days work.  When we broke the linkage to silver as a measure of work value, we got sucker punched into thinking that  the USD paper money was a better system.  That does not seem to have worked out well since our labor value, post income tax, does not seem to have increased all that much over the last century. It now takes two breadwinners to maintain a household whereas one used to suffice.
    The cost of income taxes has increased from a miniscule 1-2% to as much as 35-50%.  The onerous burden of income taxes on our FRN based labor, as opposed to the  millenium-old silver based labor value, has become of near crushing oppression to the common man.Don’t EVEN get me started about SS and Medicare.
    And why does government cost so much today. Because we have allowed it and almost ignored the yoke of taxes to assume their massive size. It’s taken a century to get here. Government has grown according to our wishes or so it seems. If we did not wish it we would have overthrown it just like the founding fathers overthrew the British.
    But there are those other two taxes that do not appear to have any connection to our labors.  The first is capital gains.  We build our homes by our  labor that essentially goes untaxed since we do not pay ourselves and therefore do not create income taxes.  We can equate our labor to a silver based price of our personal exertions and embed that silver based labor our thoses structures. Using the analogy of building the home is just a metaphor for building anything, such as a business, a more commonplace thing of our hard work.  Hammers, saws and shovels scare me. They imply manual labor, something that at this late date in my life gives me the willies. So building a business is more up my alley.
    The government does not tax us up front for our success because our labors are essentially invisible to the government and silver, not FRN, based
    But once the home or business is built and we sell it, we either pay ordinary income taxes of 50% if sold in one year or capital gains after one year.  That rate was nicely dropped to 15% for most folks but then there are the state taxes.  Between those you could easily pay 25%.  So in the end the government was still able to secure of piece of your silver based sweat equity by forcing you to alert them to the sale of that which you spent building and then gutting you of your savings to pay their extortionate and burdensome taxes. Nothing escapes the eyes of Big Brother.
    That is the one thing that infuriates me about capital gains. This univited interloper, a psuedo partner, weighs in when you sell something you built and sticks his hand out asking for a piece of your flesh  That is why the gummint will never even see a nickel of my precious metals sales from this time on.  BTW The Capital gains tax is slated to double next year.  So when Obama says ‘you didn’t built that, someone else did it for you’, I can assume he is, in reality, telling us that it is the invisible hand of the tax man and government’s taxation version of Prima Nocta that he refers to. The gummint ALWAYS HAS THE FIRST DIP OF THE WICK INTO THE FRUITS OF YOUR LABORS. William Wallace was more than a little offended at that act, just so you don’t forget his wrath. 
    The government did help you built it by not taxing your labor spent in the heavy lifting that you invested up front. They were just being nice people (HAHAHAHA) and leaving you  with the illusion that you had actually escaped the clutches of the government while sweating away at your exertions.

    The last and one of the cruelest taxes is the Death (estate) tax. That really hacks me off.  After paying roughly 50% in income taxes in the course of our livetimes, we then hop the twig and our heirs find the gummint once against reaching into our pockets for our meager remaining stack of silver and stripping us, once again, of up to 50% of the estate.
      In our personal case, 97% of our estate is precious metals and not that we plan to leave the mortal plane soon but the gummint is going to find that there is no one penny of tribute they will take from us when we shuffle of this mortal coil. It all goes to charity, every penny.
    When you get a chance and have nothing better to do, calculate your lifetime income and then back out an estimate of your lifestyle spending and see what is left. I figured that of the 100% of our income, the tax man got about 60%, we spent 20% and have about 20% left over.  Knowing what I know about the average Joe or Jane’s nest egg at 60 years of age it is frighteningly low for a country supposedly as rich as this one, (about $50,000 or less). Maybe that’s the plan. Take everything from the common man during his life and let him have nothing at his demise. That’s where the payroll taxes come in IMO
    we consider ourselves most extremely fortunate to have even 20% left over and 97% of that is in precious metals.  In a funny way, after a lifetime of FRN based income with its sick paradigm of income  and capital gains taxes we have turned  our residual net worth of the silver based labor value of our life’s work back into silver and gold.  It is ironic that this turn of the circle resulted after reading about the story of precious metals and the part they played in the history of the world through the SIlver Doctor Channel and the wise posts of those who see through the scam of income taxes to the reality of silver and gold and the only real currency.
      Man plans, God laughs. Maybe this time he’s laughing along with us and not at us..  Maybe.

  14. Its interesting chavez asked for and got everything because he is viewed as an enemy… He can ask for the lot he knows the US are after him anyway. But germany ecuador holland and others ask for small portions to appease the public in their countries and not offend the fed… Our freinds cant ask for whats theirs without duress, it pays to be an enemy where gold is concerned

  15. First Venezuela, then Germany, then Netherlands and now, it’s Ecuador! Ecuador’s reason to take out a part of their gold is just an excuse to have their gold out of the bullion banks’ vault. Got phyzz? Yeah, in my possession because if you don’t hold it, you don’t own it! :D

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