The Bank of Italy is the fourth largest owner of gold reserves in the world, which is out of all proportion to the size of the country. But I never thought it wise to sell it, because for central banks this is a reserve of safety.
When asked by Tekoa da Silva his thoughts on gold as a reserve asset, the European Central Bank’s Mario Draghi responded:
“Well you’re asking this to the former Governor of the Bank of Italy, and the Bank of Italy is the fourth largest owner of gold reserves in the world, which is out of all proportion to the size of the country. But I never thought it wise to sell it, because for central banks this is a reserve of safety, it’s viewed by the country as such. In the case of non-dollar countries it gives you a value-protection against fluctuations against the dollar, so there are several reasons, risk diversification and so on. So that’s why central banks which have started a program for selling gold a few years ago, substantially I think stopped…most of the experiences of central banks that have leased or sold the stock of gold about ten years ago, were not considered to be terribly successful from a purely money viewpoint.”
Goldmanite Mario Draghi has just issued Cyprus an ultimatum that the nation’s gold reserves must be liquidated to satiate the Vampire Squid…er…the ECB for Cyprus’ bailout. In response, Cyprus’ Central Bank President Panicos Demetriades just stated:
- PANICOS DEMETRIADES SAYS CYPRUS CENTRAL BANK INDEPENDENCE UNDER ATTACK.
By SD Contributor Rob Kirby:
When sovereign gold is lent / leased – this is done through A BULLION BANK [like Goldman Sachs] whereby, physical bullion is sold into the market to raise cash balances which are then reinvested.
LTCM inadvertently collapsed when they took a highly leveraged position in sovereign Russian bonds and Russia defaulted. If a public ‘work-out’ of LTCM would have ensued – the true state of sovereign Italian finances, as well as the criminal actions of Goldman ‘Hannibal Lecter’ Sachs would have been on public display for the whole world to see – and the Euro would very likely have been still-borne.
For his part in this CRIMINAL FIASCO – Super Mario Draghi was rewarded by being made Vice Chairman of Goldman Sachs International in 2002 and later, in 2011 was appointed president of the European Central Bank [ECB] which on December 13, 2012, was granted exclusive regulatory power over ALL EUROPEAN BANKS:
Our favorite Eurozone politician Nigel Farage has delivered another EPIC RANT, this time completely destroying Barroso’s call for a federal union of European states, informing Barroso that ‘money doesn’t grow on trees (or helicopters).
Farage isn’t satisfied to simply make a fool of Barroso, he goes on to ridicule Godman’s own Mario Draghi and his recent announcement of sterilized, unlimited bond purchases by the ECB (now a moot point as the German court has limited the ESM to €190 billion).
Farage’s rant is a MUST WATCH as always!