by Jorge Vilches for the Saker Blog
The unstoppable momentum behind Russia´s new Bretton Woods III finances added to the lack of official gold data available worldwide last week prompted The Saker article “NATO´s internal gold war” to publically ask
(1) how hard would it be for most countries to repatriate their now much-needed gold — theoretically still safely vaulted in ´custody´ at the Bank of England — specially if many of them tried to do it at once as most probably would happen…?
(2) why isn´t the current price of gold anywhere near its genuine market value ? Is it due to silent daily central bank interventions that hinder true free-market price-discovery mechanisms? [Ref #1: http://thesaker.is/natos-internal-gold-war/ ]
The above is terribly important vis-á-vis the spanking-new payment system for Russia´s much-needed oil & gas and other essential produce now per Western “sanctions” only buyable either with rubles or gold. With rubles thru yet-not-so-clear–nor-yet-vetted banking procedures of unknown sustainability not been tried out even once yet — think revoking clawbacks…or ´artificial defaults´. While with gold it´d be thru old-fashioned sale of tangible bullion. Furthermore, in order to substantially increase its purchasing power, it would be highly meaningfull to be able to sell such gold – possibly with the buyer taking physical delivery — with a genuine market-reference price most probably very significantly above today´s sharply downward-manipulated quotes thru constant central bank interventions since time immemorial. Thus, we would avoid the coming chaos as the “blitzkrieg sanctions” imposed on Russia are not only not working but visibly having the opposite effect. Stubbornly opposing deeply immature EU wishfull thinking, the ruble today is even stronger than before the Ukraine armed conflict. The Anthony Quinn ´gold in Aqaba´ scene in “Lawrence of Arabia” brightly comes to mind [Ref #2: https://off-guardian.org/2022/04/08/despite-sanctions-the-ruble-is-stronger-than-before-the-war-why/]
The hungry 800-pound gorilla
So clearly Europe is not only shooting itself in the foot right now but rather both feet, plus knee-caps and elbows… and very soon in the temple (both sides) as exquisitely described by Pepe Escobar in “The Saker” per link below.
So this article would be Part II of “NATO´s internal gold war” … or, in other words, a tentative draft Plan to AVOID the terrorizing scenario now looming the Old World. This means that the political adults in the room must immediately stop the EU self-shooting spree and face off this hungry 800-pound gorilla with no good intentions in his purposefull mind.
Agreed, time is of the essence…and the schedule for this draft Plan to succeed may impress as too demanding and/or politically difficult. True enough, it requires careful massaging and political buy-in… and obviously LOTS of hard work, energy, good will and effort from every stakeholder involved. But please beware that this Plan has two huge advantages i.e. (1) having no visible competition and (2) counting with the automatic UK approval as the Brits will not survive without a relatively healthy EU to sell to. Yes, it´s TINA once again…but for a very different Big Bang
If you believe otherwise please just sit back and get the memo from Pepe Escobar re “Europe commits suicide”
[ Ref #3: http://thesaker.is/sit-back-and-watch-europe-commit-suicide/ + http://thesaker.is/the-total-war-to-cancel-russia/ ]
So this Plan could very well be the only chance for the Western world to literally avoid many millions of its people from starving or freezing to death amidst an economic devastation and scarcity of basic staples that no war has ever inflicted so widespread. There are no brilliant ideas to look forward to with a worsening outlook as we speak, with ever more serious infighting and unsolvable conflicts throughout Europe ´AWKI´ and very soon elsewhere too. Tourism is 25% of EU GDP but without A/C and typical food & essential fuel it´d be dead on arrival at the border.
Europeans, this is it
In a nutshell, right now our Western Graeco-Roman Judeo-Christian millenary culture needs to rise to the occasion. Dear “Europa”, as the cradle of Western civilization that you are supposed to be, please be advised that this is it. Otherwise, not just our culture but also our species could soon become functionally disabled. Or, in financial terms which technocrats enjoy so much, we can soon become a forever ´non-performing asset´ a.k.a. wasted garbage.
Accordingly, this draft Plan attempts to AVOID the UK-EU Armageddon that “NATO´s internal gold war” would necessarily bring about. And also please be advised that our success would be the only way at hand to prove the Davos agenda wrong which actually was what brought us to the situation we are now facing in the first place.
The philosopy of The Plan
The basic philosophy behind this über urgent project is probably best represented by a photograph taken at Verdun in 1984 wherein French President Francois Mitterand and German Chancellor Helmut Kohl are firmly holding each other´s hand like two school children both looking straight at the camera for the whole world to see. These two most serious, intelligent and very powerfull elderly statesmen were silently screaming something instantly understood by everyone after French and Germans had killed, maimed and hatefully destroyed each other for decades. Say no more
The math of The Plan
Lacking public domain data, let´s accept a spitball yet trustworthy “back-of-the-envelope” guesstimate of 5000 tons of gold deposited by EU members for custody at the Bank of England. So, if such tonnage were now physically available at today´s ultra low central-bank-manipulated prices it would pay for all of Europe´s oil & gas imports for one full year …while if gold were priced at USD $ 5000 per ounce Troy it would pay for 2,5 years of Europe´s oil & gas needs… And if gold were priced at USD $ 50,000 per ounce (something quite possible if genuine price-discovery mechanisms were set free without central bank manipulation…) those 5000 metric tons of gold at current oil & gas prices (which could be lower due to deflationary pressures) would pay for 25 years of EU´s fuel needs, or more.[Ref #4 https://www.gata.org/node/21861 ] [ Ref #5 https://www.bullionstar.com/blogs/ronan-manly/central-bank-gold-at-the-bank-of-england/ ]
2022 goals of The Plan
Goal (A) is having all countries being able to gradually repatriate their gold bullion now theoretically in custody at the Bank of England if they so desire with a serious and foreseeable schedule in place to be unequivocally complied with.
Goal (B) being able to sell such gold bullion even with buyers taking physical delivery but always at a genuine market price most probably very much higher than today´s fully manipulated quotes thru central bank daily interventions.
Governance & Management of The Plan
1. Arbiter Czar
Immediate appointment of a high caliber Arbiter Czar — with proper staffing & facilities + open budget + funding both in London and Brussels – preferably of non-European or US origin, irrefutably knowledgeable and impartial to be duly followed by UK & EU leaders and institutions in the implementation of this Plan as per guidelines herein. Both the UK and EU Parliaments must immediately approve the political appointment of this Czar ( and substitute sub-Czar ) under these terms with unequivocal and unmitigated support behind his/her role.
2. Full legal open-ended amnesty
Full legal amnesty & indefinite end-of-story “forgiveness forever” to both UK and EU on this topic reconfirmed by ECJ + ECB + BoE + British Judiciary & BIS Basel III thru specific legal homologation by July 1 while setting this topic separate from pending Brexit negotiations with plenty of shared UK + EU blame all around.
3. UK & BoE gold bullion all-inclusive official public domain status Report
Full-disclosure UK & BoE transparent gold-holdings & historical evolution Report + Audits Stages #1 & #2
4. UK official public domain gold bullion transparent Repatriation Plan
Proposed fully-descriptive UK official gold bullion repatriation Plan with time-table & schedule per (3) above.
1. Gold at real free-market price
Definitive and conclusive end to Ponzi scheme derivatives & option futures and central bank interventions etc etc etc allowing gold price to freely reach its own price-discovery + elimination of VAT and other taxes etc
2. “Financial Equivalence” Protocol
“Financial Equivalence” Protocol approval under normal Brexit mechanisms already foreseen.
3. Political reconfirmation and legal homologation
EU Parliament + UK Parliament + BIS Basel III + ECB + BoE + ECJ + British Judiciary of points (2) + (4) & (5).
The all-losers “blame game” (… which badly requires amnesty…)
“ALL-losers”… ALL as in ´everyone´ so don´t even think of it … so just please hold your nose and stick to The Plan.
But to clear the air and thus never coming back to this aspect ever again, let´s leave on record that there was plenty of shameless blame BOTH sides of the English Channel, fog or no fog. Clearly, they were both non-compliant. The UK of course, but also EU members which faked to “trust” the UK while playing parallel games to reap huge benefits from
- EU membership, economics & subsidies despite clear non-compliance with Maastricht inclusion criteria.
- a full euro “free ride” with no questions asked despite the fact that EU financial strategy was unsustainable from get-go like a bunch of drunken sailors coming out of a pub very late at night leaning on each other.
- so they all swept it under the rug, whistled the mess away, and “one hand washes the other” so to speak
- both sides played hardball “for keeps” the only problem being that Russia has now taken their ball away…
Per reknown internationally published experts, everybody that mattered knew and knows — ECB and BIS included – that Western central banks deploy daily surrepticious derivatives & options interventions in the futures market to control commodity prices and protect government fiat currencies against the public’s recognition of their devaluation.
Thus, for decades the price of gold was artificially maintained at ULTRA low levels so nobody in the EU cared much…
Now Russia has changed all that with a BigBang commodities-based Bretton Woods III deal and suddenly gold bullion matters lots because it buys oil & gas and everything Russian that Europe badly needs, or else…. So there was
- NO due diligence nothing meaningful done by the EU or the UK, sheer negligence & carelessness.
- NO world-class fully independent full-scale & depth public domain audits from anyone nor UK nor EU.
- The ´Authorized Custodian´ incurred in guiltfull non-compliance of known tasks, duties & malfeasance
- With deceitfull impunity, BOTH sides always irresponsibly stonewalled every question, doubt or query.
Initial schedule of The Plan
To be expanded and modified on the fly under the leadership and directions of the all-powerfull Arbiter Czar in order to achieve Goal (A) + Goal (B) described before by November 30, 2022.
Meeting to be held in London between UK Prime Minister Boris Johnson and President Ursula von der Leyen of the European Commission and President Charles Michel of the European Council in order to
- officially submit candidates for Arbiter Czar + substitute both to be agreed upon by mutual UK-EU consent.
- discuss and agree on the general framework of the tentative draft plan outlined herein as possibly modified.
- discuss and agree and formally approve the tentative procedures and schedule for execution + open budget
Both the UK and EU Parliaments must have already approved the political appointment of the Arbiter Czar + substitute under the terms of this outline thru an over-arching Law superseding and over-imposed above any other law, ruling, treaty or order. The above should also include proper staffing & facilities + open budget + funding both in London and Brussels plus objectives, goals and procedures to be followed per (A) + (B) + (C).
Approval of full legal amnesty law & indefinite end-of-story “forgiveness forever” concept for both UK and EU and everyone else on this topic, as approved simultaneously by ECJ + ECB + BoE + British Judiciary & BIS re Basel III with specific legal homologation from whomever else is needed while setting this matter completely separate from any possible pending Brexit negotiations.
Granted The Plan is very tight and politically difficult. But there is no other plan for the EU-UK survival as we know them, unless with BoJo´s help we readily welcome the very angry pitchforks to come inside the Palace and warm up
Jorge Vilches is proud to have been introduced many times as “ the quintessence of the independent columnist ”.
Former op-ed contributor for The Wall Street Journal – New York and other financial media, has studied this topic in depth for the past 20 years. WSJ-NY “The Americas” column, editor David Asman today Fox Business News anchor.