Ecuador Demands Repatriation of 1/3 of Gold Reserves
Over the weekend we stated the gold repatriation avalanche had begun with a Netherlands citizens group joining the German Federal Accountability Office in demanding the BOE and NY Fed return their nation’s gold reserves.
We predicted that an avalanche of nations across the West would soon join Germany and Venezuela in attempting to repatriate their
tungsten gold reserves from the Fed and the BOE, and it appears that avalanche is picking up momentum as Ecuador, with 26.3 tons of gold reserves, has just demanded the repatriation of one third of their foreign gold holdings ‘to support national growth‘.
From Bloomberg (h/t ZH):
Ecuador’s government wants the nation’s banks to repatriate about one third of their foreign holdings to support national growth, the head of the country’s tax agency said.
Carlos Carrasco, director of the tax agency known as the SRI, said today that Ecuador’s lenders could repatriate about $1.7 billion and still fulfill obligations to international clients. Carrasco spoke at a congressional hearing in Quito on a government proposal to raise taxes on banks to finance cash subsidies to the South American nation’s poor.
In SilverDoctors’ exclusive interview with Cheviot’s Ned Naylor-Leyland discussing the gold repatriation issue published earlier today, Naylor-Leyland stated that the key issue will be whether the gold repatriation issue spreads, and that those with physical metal on deposit in NY or London shouldn’t expect to see an ounce of real metal:
I think the more important issue though is whether this (repatriation requests) spreads. We’ve seen some further comment from within Holland, although I think that’s still at quite an early stage development/story over there.
The key thing is that this particular subject becomes more widely understood and discussed.
As you and I know, if you’re holding your central bank gold reserves either in the Bank of England or the NY Fed, unless you are Theseus trying to find the Minotaur, you have no chance of getting out of there with any metal. It’s going to be a really interesting 3-6 month period here where undoubtedly the subject has to evolve from its current relatively early stage and become a much bigger deal.
Welp, that didn’t take long.
Unfortunately for our central bankster friends, it appears the musical chairs game of allocated/fractional/rehypothecated paper gold is quickly coming to an abrupt end. As Jim Willie so eloquently explained earlier today, this could quickly devolve into WWIII.