Banks and governments kinda sorta embrace real money.....sorta

QWealth is among the many expat/offshore guru groups that I've read up on. And like so many, I have no way of knowing how substantial it or its ideas are. This appears to be a genuine news blip, one with infinite potential. Will it grow or will it sink without a trace?

You’ll notice that Q Bytes is finally back from summer holidays, refreshed and ready for the new season. We will shortly be offering you a major new free report on Second Passports, but more on that in an upcoming issue.

One fascinating thing that happened over the summer, which was kindly drawn to our attention by our friends at Global Gold in Switzerland.

In, the Federal Reserve and FDIC circulated a letter to banks that proposes to harmonize US regulatory capital rules with Basel III. BASEL III is an accord that tells a bank how much capital it must hold to safeguard its solvency and overall economic stability.

It´s a global standard on bank capital adequacy, stress testing, and market liquidity risk. Here´s the important bit:

At the top of the proposed changes is the new list of "zero-percent risk weighted items," which now includes "gold bullion" right after "cash."

That´s the part to take notice of. If the proposals are approved by regulators - and that seems likely since adoption of Basel III will be - then this is a momentous change for the gold market. Now banks will be allowed to hold bullion in their vaults and count it among their Tier 1 assets - in other words, the least risky assets.

That by itself would be bullish for the gold price, as banks that recognize gold´s unique characteristics seek to stockpile more of it.

So, somebody up there, some class of otherwise elite or effete financial gnomes are thinking alternatives to FRS-style funny money. The question of whether the people running things are sane comes back to mind . Where are the known bad ones planning to live once they destroy this country and leave it a smoking fourth-world hulk? Conversely, if they hate it that much, why are they living here?

The Bush family and other plutocrats have bought huge properties in Argentina and Uruguay. Does this mean they'll cease from world-wrecking once they thither flee from the ruins of ameriKa, Europe, Australia? They won't live like locals down there, they'll use their legendary wealth to insulate themselves from everything the least bit unpleasant while thousands of their cronies are gettting cabin fever in the underground cities that already exist for them alone. But do any of them care at all for their children and grandchildren? Do they really think they're invulnerable to the financial and social vicissitudes of the planet onto which their royal hides had the gross indignity to be born?

They (except Obummer) have to be capable of reading the writing on the wall. We must pray they do, and that the above monetary scoop will be the start of something big. 




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