European Central Bank, Frankfurt (Eric Chan)
Received numerous news item emails related to gold, the European Central Bank (ECB), and mainly various European countries as this is more and more in the news. Here are some excerpts:
21 October 2012…
In his latest missive, Mr. Sinclair explains: ‘You must note how central banks are either buying or protecting their gold reserve positions now. This is total about face two years ago. There is another change coming which is a replacement monetary system and the need for some asset on central bank’s balance sheets to have positive value, especially in the USA. Soon all that is required is a change in spread management by the gold banks and you will have whatever price the gold banks want from $3,500 to $12,400.’ http://news.goldseek.com/PeterCooper/1350829958.php
24/7 Wall St. analyzed how the gold rankings compare to each major nation’s gross domestic product and how those figures compare to the top 10 holders of gold. What is surprising in some cases is how countries with the largest GDP are not necessarily the largest holders of gold. Two small nations, the Netherlands and Switzerland, are major holders of gold. Under the terms of the Central Bank Gold Agreement among major European states, many countries are supposed to be selling gold but are not…
The International Monetary Fund is the third-largest official holder of gold, with more than 2,814 tonnes. The European Central Bank ranks right behind India, with 502.1 tonnes and 32.3% of its total foreign reserves held in gold. Central bank buying of gold was recently undertaken by Russia, Turkey, Ukraine and the Kyrgyz Republic. Turkey went as far as raising the gold reserve requirements for its commercial banks.
The World Gold Council report shows low borrowing costs and the support of financial markets spur gold accumulation. Gold is no longer just an inflation hedge; it is the key protection against a global race to devalue currencies, even if consumer prices are somewhat stable. http://www.marketwatch.com/story/10-nations-that-control-the-worlds-gold-2012-10-20Oct 20, 2012
It is now more obvious than ever that gold is becoming the new global reserve currency. Continuous and aggressive central-bank actions from the United States and Europe are driving the demand for gold. Investors have not yet seen any of the real hyperinflationary pressures that seem likely down the road. http://www.marketwatch.com/story/10-nations-that-control-the-worlds-gold-2012-10-20
The World Gold Council issued a report that there is more to the rising price of the precious metals than investor’s worry of future inflation. While gold is being sought out by many investors as a hedge against inflation, the report stated that many central banks are also seeking out the yellow metal as a hedge against currency debasement, and as a form of insurance against rapid market price reversals. http://www.marketwatch.com/story/crude-prices-central-bank-gold-purchases-gold-prices-commodities-currencies-2012-10-19Europe’s debtors must pawn their gold for Eurobond RedemptionSouthern Europe’s debtor states must pledge their gold reserves and national treasure as collateral under a €2.3 trillion stabilisation plan gaining momentum in Germany. May 29, 2012http://www.telegraph.co.uk/finance/financialcrisis/9298180/Europes-debtors-must-pawn-their-gold-for-Eurobond-Redemption.html
The third Central Bank Gold Agreement (CBGA3)The third Central Bank Gold Agreement (CBGA3) currently in force covers the gold sales of the Eurosystem central banks, Sweden and Switzerland. Like the previous two Agreements, CBGA3 covers a five-year period, in this case from 27 September 2009 (immediately after the second Agreement expired) to 26 September 2014.
The third Central Bank Gold Agreement reaffirmed that “gold remains an important element of global monetary reserves”, as was stated in the two previous Agreements….
The ECB and Gold
In one of its first pronouncements, the Governing Council of the European Central Bank (ECB) decided that the national central banks participating in the euro area should include gold in the initial transfer of foreign reserve assets to the European Central Bank. The transfer was to take place on the first day of 1999, the launch date of the euro as a single currency.
The Governing Council decided the initial transfer of foreign reserves would be to the maximum allowed amount of EUR 50 billion. This figure was adjusted downwards by deducting the shares of those EU central banks which would not participate in the euro area at the outset i.e. to a total of approximately EUR 39.46 billion.
The ECB agreed that 15% of this initial transfer should be in gold, a clear demonstration of the fact that European central bankers continued to believe that gold strengthened the balance sheet of a central bank and enhanced public confidence. The ECB indicated clearly that these transfers of gold would not affect the total consolidated gold holdings of the Eurozone. The remaining 85% was transferred in foreign currency assets. Also there was no implication that the ECB would maintain a constant ratio of 15% of its reserves in gold in the future. Indeed, despite a number of sales, gold’s share of the ECB’s total reserves has grown considerably since then due to the sharp increase in the gold price. As at September 2010, the ECB had 26% of its reserves in gold. http://www.gold.org/government_affairs/reserve_asset_management/central_bank_gold_agreements/
Oct 19, 2012
If you were a populist politician in Italy, you could probably generate a lot of noise about Italy’s huge gold reserves. There they are, the third largest national gold stockpile in the world, and you need the permission of the European Central Bank’s governing council in Frankfurt to do anything with them.
There are people, judging from my Twitter feed, who think it would be a travesty to use them to help ease Italy’s financial travails because it’s “monetary gold,” which raises the question of what 2,450 metric tons of the inert yellow metal held by the Bank of Italy is actually for. (This is the amount left after Italy’s contribution to the ECB’s own capital, 15% of which has to be in gold.) http://blogs.wsj.com/brussels/2012/10/19/italys-gold-whats-the-use/
While the U.S.A. was listed as number 1 in gold reserves by 24/7 Wall St, it was followed by three European countries, Germany, Italy, and France respectively, with Switzerland #6 and the Netherlands #9. FWIW, based upon my understanding of biblical prophecy (see Anglo – America in Prophecy & the Lost Tribes of Israel), I believe that Switzerland will for a time support the European Beast power and thus also whatever central bank it later has (which could be the ECB or something similar).
As I have long warned, the USA dollar will lose its status as the world’s reserve currency and the Europeans will apparently use gold as part of its currency to dominate. Notice what two of my books show:
It seems since many are now questioning the role of the U.S. dollar as the world’s reserve currency, more are looking into other currencies as well as gold. Gold will set records in U.S. dollar terms. When the U.S. dollar totally collapses people all around the world will consider that even if the Euro (or something similar) is strong, having a more gold-backed currency would be safer. The collapse of the U.S.A. dollar will shake a lot of the world’s confidence in non-gold backed currencies.
Having the European power acquiring a lot more gold to back the Euro (even if the backing is only implied) or possibly other future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe.
The financial policies of the Obama Administration (which are a massive acceleration of the previous policies of the Bush Administration) are heading the world into the direction that something other than the U.S. dollar will be valued as its reserve currency. (Thiel B. Barack Obama, Prophecy, and the Destruction of the United States. 2012 Edition 1.1, p. 133)
Having the European power acquiring a lot more gold to back the Euro (even if the backing is only implied) or possibly other future European currency (that might potentially replace the Euro) may greatly increase European credibility, prosperity, and influence around the globe. (Thiel B. 2012 and the Rise of the Secret Sect. 2009, p. 333)
The Bible is clear that the final King of the North and his revived Babylonian empire will accumulate and use gold. And I have long believed that part of the reason for this would be because of devaluation of the USA dollar. The devaluation of the USA dollar has begun and gold has been regularly increasing in value relative to the USA dollar.
Does this mean that gold will go up higher next year? No, it does not. The USA presidential election, how USA taxes and debt are dealt with, food stocks, international matters, etc. all play a role. And the role may raise or lower the value of gold in USA dollar terms in the short run. But in the long run, the USA dollar will be worthless and for a while gold valuable–though even it will be considered less than worthless for a while per scripture (cf. Ezekiel 7:19).
As far as the Beast/King of the North’s gold plan, notice the following from Barack Obama, Prophecy, and the Destruction of the United States:
One more verse should be perhaps touched on here, and that is Daniel 11:43:
43 He shall have power over the treasures of gold and silver, and over all the precious things of Egypt; also the Libyans and Ethiopians shall follow at his heels.
The “he” is the King of the North. This is the same King of the North that valued gold and silver in Daniel 11:38 (although other scriptures, also show that gold and silver will have value around this time, like Revelation 18; 9:20, the Bible is clear that gold and silver will be worthless for a short time before Jesus returns, e.g. Ezekiel 7: 19).
The fact that the King of the North will accumulate gold (and some silver) is consistent with several Byzantine (“Greek” Orthodox) prophecies of their expected Great Monarch:
Emperor Leo the Philosopher (died 912): You will amass gold…And you will be the leader of the surrounding nations…
Addressed to Emperor Manuel II Palaeogous (died 1425): The Emperor…will discover gold and silver…
Saint Andrew Fool-for-Christ (c. 4th century): God will reveal to this king all the gold wherever it happen to lay concealed from view…
One side note is that, in Egypt, major gold deposits were found in 2006. This is relevant for a couple of reasons, including that it does prove that Egypt now does have enough gold that some foreign power would be interested in taking/using it (and in that respect is a fulfillment of biblical prophecy). (Thiel B. Barack Obama, Prophecy, and the Destruction of the United States. 2012 Edition 1.1, pp. 132-133)
Gold and silver are of value into the time of the final Babylon (Revelation 18:11-16). So, in that respect, the Eastern and Roman Catholic “prophecies” are correct. It may well be that the King of the North will realize that his currency needs more gold-backing as the collapsing of the USA dollar will likely send shockwaves against other paper currencies. Gold will help stabilize whatever currency he is supporting.
I have also long written that he even may start amassing gold prior to the invasion of the USA (Daniel 11:39) or the King of the South. The ECB and others in Europe seem to be starting to implement this plan.
For a time, the European Beast power will be the world’s major economic power per Revelation 13 and 18. Having gold stocks will be one of many ways to assure the rest of the world that it should defer that leadership to Europe (military prowess per Revelation 13:1-4 as well as signs and lying wonders per Revelation 13:11-17 and 2 Thessalonians 2:9-12 will be other ways according to scripture).
Some articles of possibly related interest may include:
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? What MUST happen BEFORE the Great Tribulation?
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
When Will the Great Tribulation Begin? 2012, 2013, or 2014? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000?
2012 and the Rise of the Secret Sect This is a link related to a book by Bob Thiel (COGwriter). This link also has YouTube videos. This book documents and explains hundreds of prophecies. And since it was published, world events have aligned with at least 24 predictions in the book and many more will to come to pass. Those who purchase the book at the www.thesecretsect.com website receive a lengthy bonus report documenting world events that aligned with the book.
2012 and the Rise of the Secret Sect (English Kindle edition). This is the 2nd edition of the book, released in January 2012, and includes a summary of many of the predictions that world events have aligned with since the book originally came out in September 2009.
2012 y el surgimiento de la secta secreta 2012 libro del Dr. Thiel en Español.
2012 und das Auftreten der geheimen Sekte (German Edition) 2012 Buch von Dr. Thiel in deutscher Sprache. 2012 und das Auftreten der geheimen Sekte (German Kindle Edition)
2012 e o Surgimento da Seita Secreta (Portuguese Edition) 2012 livro do Dr. Thiel em português. Este livro documenta e explica centenas de profecias. E desde que foi publicado pela primeira vez, pelo menos 24 já começaram a acontecer.
2012 e o Surgimento da Seita Secreta (Brazilian Portuguese Edition) 2012 livro do Dr. Thiel. Edição em português do Brasil. Este livro documenta e explica centenas de profecias. E desde que foi publicado pela primeira vez, pelo menos 24 já começaram a acontecer.
Barack Obama, Prophecy, and the Destruction of the United States This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about Mitt Romney. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic, Catholic, Kenyan, and other America-Related Prophecies? What About Mitt Romney?
Barack Obama, Prophecy, and the Destruction of the United States–Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon’s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States–Amazon Kindle edition.)