US Government to secure mortgage market with gold reserves

[Buttercup McToots]

Source: Moneymarket.co.uk

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=173208

Re: US Government to secure mortgage market with gold reserves

US Government to secure mortgage market with gold reserves
Lee Jones - 19-Sep-2008
The U.S. Treasury Department has promised “hundreds of billions” to save the US markets using its own gold reserves.

President Bush approved the use of existing authorities by Treasury secretary Hank Paulson to make available as necessary the assets of the Exchange Stabilisation Fund for up to $50 billion to buy more illiquid mortgage assets.
When the Government bailed out the the Government Sponsored Enterprises it promised to buy illiquid mortgage backed securities, but this announcement extends that pledge.

The ESF was created after the Great Depression and uses the US gold reserve as collateral for financial stability.

The plan will involve Fannie Mae and Freddie Mac increasing their purchases of mortgage assets. The Government will also expand its own purchase programme for mortgage backed assets, which was announced recently, to help increase the availability of capital for more mortgages.

Paulson says he will also work with Congress to create new legislation that will allow all mortgage backed securities to be bought up by the GSEs and the Government, instead of just those that fit within existing legislation.

This move is exactly what mortgage industry professionals have been calling for the UK Government to make. Earlier today, the Intermediary Mortgage Lenders Association urged the UK Government to take similar action. The Council of Mortgage Lenders also reiterated the call for help with illiquid assets.

Paulson said a press conference in Washington: “We are talking hundreds of billions of dollars, This needs to be big enough to make a real difference and get to the heart of the problem.”

“This morning we've taken a number of powerful tactical steps to increase confidence in the system.

“The underlying weakness in our financial system today is the illiquid mortgage assets that have lost value as the housing correction has proceeded. These illiquid assets are choking off the flow of credit that is so vitally important to our economy.”

Paulson says the Government will buy the illiquid assets but he urged that “this troubled asset relief program must be properly designed and sufficiently large to have maximum impact, while including features that protect the taxpayer to the maximum extent possible.”
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Read more: http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=173208

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Holy Shyte!!

[dixiegrrrrl]

1. Bush regime has refused to do required audits of the gold reserves.

So they are either going to steal or have already stolen the gold.

[valerief]

2. Exactly!!!!

[aquart]

3. So they're guaranteeing the mortgages

with an unknown and uncounted amount of gold?

I feel completely secure now. You?

[bobthedrummer]

7. To those of US that know our "hidden history" the fact that Edwin Pauley never

returned all the wealth stolen by the Axis powers as he was supposed to may be a factor, there are lots of gold bars hidden all over the world to draw from. Here's an Octafish thread that is educational about this.

"Heir to the Holocaust: How the Bush Family Fortune Is Linked to the NAZIS" (started May 16, 2008)
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3294979

[glinda]

33. Oh NO!!!!!!!!!!

Isn't Bush Senior a big gold person? Like has a lot of stocks or something in gold? I recall something like that.

[sinkingfeeling]

4. Oh good! They're now raiding Ft. Knox!!

[Roland99]

5. Gold left there long ago...to NY. From what I remember.

[jberryhill]

10. Watch out for that guy with the hat...

[Virginia Dare]

17. What happens when they gamble this away?...

goodbye America!...:wow:

[Roland99]

6. Pure. Unadultered. Batshit Insane. Madness.

:cry:

[Buttercup McToots]

9. I'm just shaking my head...

I just don't know what to say anymore...:shrug:

[rucky]

8. Watch the Dollar go into freefall.

They're basically admitting that the digital cash the Feds are pumping in is worthless.

[eowyn_of_rohan]

24. Gone With the Wind

Scarlett: Oh,Paw...What are those papers?

Mr. O'Hara: Bonds.They're all we're saved.All we have left,bonds.

Scarlett: But what kind of bonds. Paw?

Mr. O'Hara: Why,Confederate bonds of course, darling.

[Javaman]

11. so correct me if I'm wrong but usually when the value of the dollar goes down..

the value of gold goes up. However, if they are backing this bullshit with gold, technically speaking, the value of the dollar should go up and the value of gold should go down.

so given that this is more or less a chicken or the egg scenario, by which standard are they going to set the value of gold?

my head hurts.

[Buttercup McToots]

12. I'm dizzy too...

I guess this effectively proves that the $ is toast without the
backing of gold...:eyes:

[CatholicEdHead]

13. I am suprised it was not released a couple hours from now

To hide it in the Friday news cycle.

The insanity gets worse and worse and worse.

[Buttercup McToots]

14. GOLD RESERVE PER COUNTRY

GOLD RESERVE PER COUNTRY
()
CIA World Factbook 2008

China

$1,493,000,000

Japan

$881,000,000

Russia

$470,000,000

Taiwan

$282,900,000

South Korea

$271,100,000

India

$239,400,000

Brazil

$178,000,000

Germany

$111,600,000

France

$98,240,000

Mexico

$85,110,000

Turkey

$74,390,000

Australia

$71,150,000

Iran

$69,200,000

Libya

$69,150,000

Italy

$69,000,000

United States of America

$65,890,000

Poland

$61,460,000

Norway

$56,840,000

Indonesia

$53,270,000

United Kingdom

$47,040,000

Argentina

$46,180,000

Canada

$35,060,000

Saudi Arabia

$34,000,000

Philippines

$33,310,000

Venezuela

$31,630,000

Egypt

$31,140,000

Israel

$30,990,000

Ukraine

$28,520,000

Sweden

$28,020,000

Iraq

$21,260,000

Lebanon

$19,400,000

Spain

$16,320,000

Pakistan

$16,030,000

Afghanistan

$8,900,000

Syria

$6,039,000

Greece

$2,700,000

Nepal

$963,500

Thailand

$75,000

North Korea

$0




GFP Ranking

1 United States
2 Russia
3 China
4 India
5 Germany
6 France
7 Japan
8 Turkey
9 Brazil
10 Great Britain
11 Italy
12 South Korea
13 Indonesia
14 Mexico
15 Canada
16 Iran
17 Egypt
18 North Korea
19 Spain
20 Pakistan
21 Australia
22 Saudi Arabia
23 Thailand
24 Argentina
25 Sweden
26 Israel
27 Greece
28 Taiwan
29 Syria
30 Philippines
31 Poland
32 Ukraine
33 Norway
34 Iraq
35 Libya
36 Venezuela
37 Lebanon
38 Nepal
39 Afghanistan

Nuclear weapons, past and present military experience, training and equipment quality are not taken into account.

[Lone_Star_Dem]

15. Oh, and of course there's no Congressional oversight of the ESF

I'm speechless.

[diamidue]

30. exactly

paper gold. Just another frikkin' bamboozle. And what will this do to the price of physical gold now? Will they attempt to cap the price to hold it steady? I don't see how they can do that on a World Market tho. This whole thing is just amazing.

[Warren Stupidity]

16. WTF?

This is startlingly odd. Are our t-bills no longer good?

[dixiegrrrrl]

26. Bless your pea picking lil heart.....

"Are our t-bills no longer good? " he asks.


My dear, our money and our gold and our T-bills and our debt is all backed by
"the full faith and credit" of the United States.
And surely you and me and all of them countries have full trust in the United States, right?

[Buttercup McToots]

18. Research

Research

http://www.federalreserve.gov/releases/h....
From H4.1, fed balance sheet they have 11billion in gold.

This aligns with the treasury assets in the US reserve assets report.
http://www.federalreserve.gov/releases/B....

However, it also states:
"Gold stock is valued at $42.22 per fine troy ounce".

Using this, 11041 million at 42.22 an ounce is
261511132 ounces. priced at current 863 an ounce gives 225,684,106,916

225 billion.

[Virginia Dare]

19. Help me out what does this mean, is our government bankrupt?...n/t

[whosinpower]

20. This gift just keeps on giving

So now - those crappy mortgages are being sold to the government and being secured by GOLD?!?

If you haven't felt that you are being raped to the core - you should now. This last ditch effort will strip the last vestige of value from the US system. Checkmate.

[anarch]

21. I pretty much totally fail to see how this is any kind of a good idea

[mike_c]

22. the wealthiest one percent just figured out the mother of all ways to harvest...

...the last vestiges of public wealth left in this country. I'm not an economist, so someone more knowledgible please correct me if I'm wrong, but "securing" a mountain of bad debt with a molehill of gold simply means that whomever holds the debt will eventually get all the gold when there isn't any other way to collect, right?

If this doesn't bring out the torches and pitchforks then Americans deserve the screwing they're in the midst of receiving!

[Karenina]

27. Bingo!

[Buttercup McToots]

28. Truth

That is a truth...

[formercia]

35. After the Gold goes public lands and infrastructure.

The boys will milk every dime out of us before they leave for India.

[Mojorabbit]

23. I wonder if this is why

people have been complaining for the past three months that they have not been able to buy gold from the mint.

[htuttle]

25. Whee doggie! Time to pawn off grandpa's watch!

We're like a meth addict -- with a nuclear arsenal...

[SpiralHawk]

29. "You proles can kiss your everlovin patrimony goodbye. Smirk." - Republicon cronies

[gristy]

31. The U.S. guvmint still has gold reserves?

Who knew?

[KamaAina]

32. You have to wonder just who that outfit is that's blitzing the teevee with ads to sell your gold

you know, "Cash4Gold". I figured they were just trying to profit from the crappy Bush/McCain economy.

But now I'm wondering if they might be a subsidiary of the Carlyle Group or something. :tinfoilhat:

[glinda]

34. Must be info somewhere

It is Bush Senior. I just know it. It is the Bush family. I can feel it!!!!!!!!!!!!!

[Karenina]

36. ttt