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Oct 27, 2012

NYT Global Update -October 27, 2012-: In Syria, Cease-Fire for Holiday Falls Apart


 
The New York Times International Herald Tribune
October 27, 2012

Global Update

 
TOP NEWS

In Syria, Cease-Fire for Holiday Falls Apart

By HANIA MOURTADA
The truce called in Syria to mark the most important Muslim holiday of the year eroded markedly on Saturday with each side accusing the other of breaking the cease-fire.

Winter's Approach Adds to Crisis as Refugee Population Swells

By RICK GLADSTONE
The population of registered war refugees in Syria's neighboring countries is expected to nearly double by year's end, to more than 700,000 people, just as the winter approaches.

In Final Days of the Race, Fighting County by County

By JEFF ZELENY and JIM RUTENBERG
The fight for the White House is being waged on intensely local terrain, in places whose voting histories and demographics have been studied in minute detail by both sides.
Business

Graphic: The Wen Family Empire

Diagram showing the family of Wen Jiabao and their business network.
Opinion

Op-Ed Contributor

Europe and the 'Asia Pivot'

By TOMAS VALASEK
The NATO alliance can and must remain strong, even as America's defense priorities shift toward the Far East.
WORLD

India's Plague, Trash, Drowns Its Garden City During Strike

By GARDINER HARRIS
In Bangalore, the capital of India's modern economy, the ubiquity of garbage highlights the incompetence of governance and the dark side of the country's rapid economic growth.

Indonesia Arrests 11 It Says Were Plotting Attack on U.S. Embassy

By THE ASSOCIATED PRESS
The national police say the suspects planned a range of domestic and foreign attacks, including against the Australian and American Embassies.
Memo From London

European Union Exit? Concerns Grow for Britain

By STEPHEN CASTLE
With the euro zone almost three years in crisis, the prime minister has been hinting he could hold a referendum on Britain's relations with the troubled union.
BUSINESS

In Dairy Industry Consolidation, Lush Paydays

By ANDREW MARTIN
Through certain deals, huge paychecks went to a small group of people, including the chief executive of Dean Foods and a former head of a dairy cooperative.
The New American Job

A Part-Time Life, as Hours Shrink and Shift

By STEVEN GREENHOUSE
Retailers are relying on part-time workers, a trend that has frustrated millions of Americans who want full-time jobs but must instead settle for reduced pay and benefits.

From Calm Leadership, Lasting Change

By NANCY F. KOEHN
Rachel Carson, who wrote the groundbreaking "Silent Spring" 50 years ago, offered an indelible example of the power of individual action.
TECHNOLOGY
Circa Now

A Web of Answers and Questions

By HENRY ALFORD
How much information is too much, and what does all this Web searching say about ourselves?
The Haggler

Summoning the Power of the Crowd

By DAVID SEGAL
When Radio Shack stopped communicating with the Haggler, his public plea resulted in an outpouring of reader messages to the company.
DealBook

Citigroup Pays Fine and Fires Star Technology Analyst

By BEN PROTESS and RANDALL SMITH
Citigroup paid a $2 million fine and fired two employees after authorities accused the bank of improperly disclosing confidential information to media outlets about YouTube's earnings and Facebook's initial public offering.
SPORTS

John Terry: Chelsea's Dark Knight

By SARAH LYALL
One of the canniest, toughest and best defenders in English soccer, John Terry is also perhaps the country's most reviled player.
Soccer Roundup

Arsenal's Late Goal Thwarts Q.P.R.

By THE ASSOCIATED PRESS
Mikel Arteta's goal in the 84th minute gave Arsenal a 1-0 win over visiting Queens Park Rangers Saturday in England's Premier League.

Williams Powers On, To Final vs. Sharapova

By BEN ROTHENBERG
Serena Williams, who won all three of her round-robin matches in straight sets, powered past a sluggish Agnieszka Radwanska in the semifinals, 6-2, 6-1.
U.S. NEWS

F.D.A. Details Contamination at Pharmacy

By SABRINA TAVERNISE and ANDREW POLLACK
A report from the Food and Drug Administration filled in a disturbing portrait of the pharmacy whose pain medicine set off one of the worst public health drug disasters since the 1930s.

Urgent Warnings as Hurricane Sandy Strengthens and Heads to Northeast

By MARC SANTORA
Forecasts show the storms, led by Hurricane Sandy, likely to converge with potentially devastating effect on the Eastern Seaboard as early as Sunday evening.

U.S. Set to Sponsor Health Insurance

By ROBERT PEAR
Two plans, added to the Obama health law as a substitute for a pure government-run health insurance program, will be offered in every state.
OPINION
Op-Ed Contributor

Mars and the Science of Skipping Stones

By JOHN GROTZINGER
Locating smooth and flat rocks on Mars means water once flowed there -- and nothing could be more important. It means that we sent Curiosity to the right place.
Op-Ed Columnist

What Moderation Means

By DAVID BROOKS
If the presidential candidates are going to spend the last days of their campaigns pandering to moderate voters, they should do it right.
Op-Ed Contributors

How Castro Held the World Hostage

By JAMES G. BLIGHT and JANET M. LANG
The Cuban missile crisis proved that a small revolutionary state, backed into a corner and convinced of its demise, can bring the world to the brink of catastrophe.

GATA | THE GATA DISPATCH -October 27, 2012-: Sure, there's probably still gold in central bank vaults, but how many claims to it?

Sure, there's probably still gold in central bank vaults, but how many claims to it?

1:18p CT Saturday, October 27, 2012
Dear Friend of GATA and Gold:
In his otherwise spectacularly obtuse commentary the other day about the clamor to audit Germany's gold reserve --

http://www.gata.org/node/11868

-- CNBC Senior Editor John Carney stumbled onto a point often made by GATA about the unreliability of central bank claims about gold vaulting. In reference to the foreign gold vaulted at the Federal Reserve Bank of New York, Carney wrote:
"The compartments do not have labels reading 'Germany's gold' and so on. They are instead numbered, and only a few people at the Fed know what numbers correspond to which country. The Fed says it does this to protect the privacy of the depositors. But this also makes actual inspection less reliable. There's no way for Germany to know that the gold it is being shown is Germany's, as opposed to some other depositor's. In an extreme case -- which I have no reason to believe is true -- miscreants at the Fed could just show everyone who came to visit the same pile of gold."

Of course mere "miscreants" at the Fed are hardly the problem; the problem is policy throughout Western central banking that, in support of the gold price suppression scheme, facilitates the double-counting (or multiple-counting) of gold reserves.

For example, the International Monetary Fund long has allowed central bank members to count leased gold as if it is still in the vault of the bank leasing it. Thus multiple claims develop to the same gold and the world's gold supply is perceived to be larger than it really is, suppressing the gold price.

The same thing happens with the major gold and silver exchange-traded funds when their shares are allowed to be borrowed and shorted -- multiple claims develop to the same gold. There is much suspicion about the major gold and silver ETFs, GLD and SLV, because of the grotesque conflicts of interest on which they operate, the custodian of GLD's gold being HSBC, the world's biggest gold shorter, and the custodian of SLV's silver, JPMorganChase & Co., being the world's biggest silver shorter.

The London Bullion Market Association runs a fractional-reserve gold banking system in which claims are issued against gold that is not in the possession of the issuer of the claim. This too increases the perception of the world's gold supply and suppresses the price.

The great disparagement about gold in recent years has been that even with its strong price appreciation it has not kept up with inflation over the longer term. The most likely explanation for gold's failure to keep up with inflation is the creation by bullion banks, backstopped by central banks, of a vast imaginary supply, "paper gold." The fear of paper gold is behind the growing belief in Germany that the country should repatriate its gold reserve.

As central banks are the issuers of currencies that compete with the natural currencies, gold and silver, they have a powerful interest in controlling and weakening their competitors. As the issuers of claims to monetary metal they don't possess, bullion banks have an identical interest.
GATA long has documented secret transactions in gold by central banks and their refusal to answer specific questions about their custody of national gold reserves:
http://www.gata.org/taxonomy/term/21

So the scenario raised but disbelieved by CNBC's Carney wherein a stash of gold might stand in for multiple stashes is hardly farfetched. That is almost certainly why the major gold and silver ETFs were created -- to corner the investing public's gold and silver so it might be applied in emergencies, against their investors' interest, for price control. Evidence of this cornering was produced inadvertently last year when HSBC invited CNBC's Bob Pisani to visit the secret GLD gold vault and, when he arrived, presented him with a GLD gold bar to display for his audience -- only for the bar later to be identified as being registered to a different ETF. One gold stash was standing in for another stash:
http://www.gata.org/node/10368
http://www.gata.org/node/10372
http://www.gata.org/node/10427
 
No one seriously doubts that there is some gold in the basement vaults of the New York Fed. But merely inspecting it would not prove anything. The serious questions here are about ownership title -- questions that can be answered only by a full disclosure of central bank gold records. How much gold is there and how many ownership claims are there to it?

If central banks are merely vaulting their gold and not using it to manipulate markets, if there are no secret schemes being undertaken with official gold, there should be no problem with disclosing these records.
But of course, as was demonstrated by GATA's recent lawsuit against the Federal Reserve for access to its gold records, particularly records involving gold swaps --
http://www.gata.org/node/9917

-- and by GATA's recent questioning of other central banks about their gold reserves --
http://www.gata.org/node/11862
 
-- this examination of title to gold is exactly where central banks become most secretive. Thus this is also where serious financial journalism about gold would start, if any was ever permitted and undertaken.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


* * *

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http://www.cambridgehouse.com/event/vancouver-resource-investment-confer...