Skip to comments.Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity”
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. dollars 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 ...
probably not a good idea
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.
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.
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.
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.
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.
The gold is gone. It has been sent to Russia or China.