Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity”
Liberty Blitzkrieg ^ | 02 June 2014 | Michael Krieger

Posted on 06/02/2014 4:27:40 PM PDT by Lorianne

This is a great example of how the game works. In a world in which every government on earth needs “liquidity” to survive, and the primary goal of every government is and always has been survival (the retention of arbitrary power at all costs), the provider of liquidity is king. So what is liquidity and who provides it?

In the current financial system (post Bretton Woods), the primary engine of global liquidity is the U.S. dollar and dollar based assets generally as a result of its reserve currency status. Ever since Nixon defaulted on the U.S. dollar’s gold backing in 1971, the creation of this “liquidity” has zero restrictions whatsoever and is merely based on the whims and desires of the central planners in chief, i.e., the Federal Reserve. As the primary creator of the liquidity that every government on earth needs to survive, the Federal Reserve is thus the most powerful player globally in not only economic, but also geopolitical affairs.

The example of the so-called sovereign nation of Ecuador relinquishing its gold reserves to Goldman Sachs for “liquidity” which can be conjured up by the Fed on a whim and at zero cost tells you all you need to know about how the world works

(Excerpt) Read more at libertyblitzkrieg.com ...


TOPICS: Foreign Affairs; Government
KEYWORDS:

1 posted on 06/02/2014 4:27:40 PM PDT by Lorianne
[ Post Reply | Private Reply | View Replies]

To: Lorianne

probably not a good idea


2 posted on 06/02/2014 4:28:19 PM PDT by ptsal (Repubicans swallowing more kool-aide from Rove & Kristol)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

Rather odd that the leftist government in Ecuador would do such a deal with Goldman, but it does show that Goldman is more powerful than most nations.


3 posted on 06/02/2014 4:34:10 PM PDT by Oliviaforever
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

A lot of late-nineteenth and early-twentieth century political cartoons (that filled my grade school history books) are making sense to me for the first time.


4 posted on 06/02/2014 4:38:48 PM PDT by Oratam
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

Correa is a Marxist and a fan of Chavez. He defaulted, then reneged on 70% of the face value of Ecuador’s government debt. To borrow any more, Ecuador now has to come up with hard assets placed in escrow such that Ecuador cannot touch that collateral. Since Ecuador has fewer natural resources than Venezuela, what’s happening in Venezuela today will repeat itself in Ecuador.


5 posted on 06/02/2014 4:41:22 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne
Ever since Nixon defaulted on the U.S. dollar’s gold backing in 1971,

For international holders of U.S. dollars. FDR took the U.S. dollar off the gold standard domestically in 1934 when possession of gold by U.S. citizens was outlawed.

6 posted on 06/02/2014 5:02:03 PM PDT by Yo-Yo (Is the /sarc tag really necessary?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Zhang Fei

I guess the open secret is that Marxists do love money... Sure theyndebauche it as everything else, but their way of thinking shallow makes them inevitably more dependent on paper money than anything else.


7 posted on 06/02/2014 5:19:31 PM PDT by lavaroise (A well regulated gun being necessary to the state, the rights of the militia shall not be infringed)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Lorianne

The gold is gone. It has been sent to Russia or China.


8 posted on 06/02/2014 5:43:26 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson