Jan 17, 2013
With the market yet another algo-controlled snoozer, programmed to close the S&P just green (as otherwise confidence in central planning may fail), the key things we learned today are as follows:
Obama proposed 23 “gun controling” executive actions, which do little to actually control guns – that part falls to Congress, where the proposal will be promptly killed – but which will add some $4.5 billion to US spending, and which will “push for further action on his health care law, including insisting on the kind of mental health coverage states must provide under their Medicaid programs.”
The breakdown of the spending is as follows, per Weekly Standard:
What can one say: politics, fully, theatrically and embarrassingly “endorsed” by the children sitting behind the president.
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But the biggest news of the day comes from the official Buba announcement that, in its official capacity as a prudent central bank, it – as first of many – is looking to repatriate some 300 tons of gold from the New York Fed. That, however, is not today’s news – that was Monday’s news.
What is news is that courtesy of the supplied calendar of events in the Buba statement, it will take the Fed some seven years to procure Germany’s 300 tons of gold. This is the same Fed that, in its own words, holds some “216 million troy ounces of gold” or some 6720 tons, in its vault 80 feet below ground level.
Putting the above in perspective, the amount of gold that Germany will have to wait 7 years for is shown in red. The amount of gold the Fed supposedly holds, is shown in yellow with a shade of tungsten. Why it will take the Fed 7 years to part with an amount of gold that is less than 5% of its total holdings is anyone’s guess…
unless of course, the bulk of the gold in the column on the right has been rehypothecated numerous times to serve as collateral for countless counterparties, and it is no longer clear just who own what to anyone.
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We can only wonder how many centuries it will take the New York Fed to deliver all the gold held by third parties in its vault, once the demand notices start rushing in…
For all those curious how the Fed itself describes the gold vault and its contents, can read more in the pamphet below:
This article was posted: Thursday, January 17, 2013 at 5:54 am