Philippines: Wealthiest Nation on Earth?, Following Shambhalista's Dubai Philippine gold Options

[ShambhalistaLVL3...]

Since Shambhalista does a better job of looking into the occult mysteries of Lemuria, i am exploring the Atlanticist Mystics LOL
http://en.wikipedia.org/wiki/John_dee

The Spirits never sleep, you know.

Atlantis and Lemuria are the same thing.
Its Sundaland.
Its the same myth with a different name.

PROOF:

http://www.atlan.org/faq/#1

[azaz]

The post below from Ming Forum, 25 Feb 2010:


...that the written legalized documents issued by Rev. Fr. JOSE ANTONIO DIAZ himself on the Diaz & Poirrotte letterhead clearnly states in SCHEDULE 11, that " cash deposit with or without interest or non-compunnded interest must be Transfer and Paid by the Depository Bank to TARCIANA C. RODRIGUEZ my assignee and paymaster whose obligation is to pay and distribute the respective names on files to wit " Then it states that # 1, Depository Bank handling fees, charges, etc 7%, and 5% Legal Fees-Attorney Ferdinand E.Marcos and 7% GLOBUS UMBRELLA, and 25% to Philippines Hummanitarian and Insfrastrcture and then the rest is paid out to private persons, all named with their respected percentages... What I see is the other 30% of the cash settlements is 15% for the VATICAN and 15% for the country/Government where the cash deposit is located.

-----------------------------------------------------------------------------------------------------------------------------------------
It says that Santa Romana allotted 25% to Philippine humanitarian and infrastructure (projects, I suppose).
If it is referring to the 617,500 metric tons then 25% is about 150,000 metric tons, or 4.5 Trillion USD. Many of those accounts are in China, Hongkong and England. So I guess they will benefit too. And according to the postings at Ming's, this 2010 is the final year of dismantling those bank accounts and be given to the rightful beneficiaries. Is the Philippines ready? Our government ready?

This post has been edited by azaz: Mar 7 2010, 06:19 AM

[matigasngulo]

Meanwhile, on the other side of the world...

http://www.youtube.com/watch?v=ZKczs-7BFRI

http://www.youtube.com/watch?v=6cq9yEVcGIU

This post has been edited by matigasngulo: Mar 8 2010, 01:53 AM

[trismegistos]

Meanwhile, on the other side of the world...

http://www.youtube.com/watch?v=ZKczs-7BFRI

http://www.youtube.com/watch?v=6cq9yEVcGIU

Nice links you got there.

I remember OZ was a code for Atlantis/Lemuria.

It will get worse everyday because of the Hyperinflationary measures. We are coming to the end of the Funny Money. As I have said before, we must go back to the good ole days of Fixed Exchange rate and the Gold standard. A new Bretton woods agreement must be forged by sovereign nation states and agree that the Financial system brought about by Floating exchange rate and Speculation on derivatives is totally bankrupt. And reject a Common Currency(or a common currency among regions like the Euro for EU like being proposed by Japan and China) espoused as a false New Bretton Woods proposed by Alan Greenspan which is another way of saying: surrender your sovereignty to us and bow down, sheeples.

We should study closely GEOPOLITICS, the workings of the Global Financial elites, the secret socieites, the Bilderberg Group, the Council of Foreign Relations, the Trilateral commision.

Let's hear it again Larouche's and Billington's story on how Schultz, a freemason of the Scottish rites(secret arm of the Anglo-zionist empire/global financial elites), together with his Economic Hitmen, destroyed the Philippines... http://larouchepub.com/other/2004/site_pac...ilipp_coup.html

----------------------------------------
PRETEND TO BE GLOBAL, AND BE NATIONALISTIC.

Three Urgent Steps To Philippines' Survival:
http://larouchephil.com/content/three-urge...ppines-survival

Philippine LaRouche Society Confronts Quackademics on TV
part 1:
http://www.youtube.com/watch?v=fG-XB-O2R-Q...feature=related
part 2:
http://www.youtube.com/watch?v=AFvTS5tjxe4...feature=related
part 3:
http://www.youtube.com/watch?v=gwHizTyd21g...feature=related
part 4:
http://www.youtube.com/watch?v=ug5jlZHwfQY...feature=related
part 5:
http://www.youtube.com/watch?v=n8jxcMIjKMI...feature=related
Members of the Philippine LaRouche Society have a radio show aired every sunday night at AM radio DZXL 558khz from 8:00-9:00pm manila time
link of the radio station:
http://www.rmn.ph/amstations/dzxl

This post has been edited by trismegistos: Mar 8 2010, 11:18 PM

[matigasngulo]

i'll listen to the clips later, can't comment now.

the links i copied are commonly posted by people who shout "TUNGSTON GOLD! TEXAS SUCCESSION ! MARSHALL LAW !
actually i was thinking about creating a "pro-gold" video in response to the Oz movie to criticize the main points, but it seems that Youtube is now censoring my videos as well.

re Geopolitics, these are some extracts from a WW2 pamphlet entitled (from 1943, but it was revised several times ) "South-East Asia". Since it was made by fascists for fascists you expect to read something like this

Until the beginning of the heroic defensive struggle of the Japanese Empire against Anglo-Saxon Greed South-East Asia remained almost completely under white colonial domination.

A special place in the south-east Asian colonial field is filled by the Philippines: In their geographic and ethnic [„völkisch“] situation they belong to South-East Asia. Culturally they can be regarded as part of Hispanic America, since though the political failure of spanish Rule the spanish culture, has with the help of the roman-catholic Christendom proven remarkebly tough. Politically and economically the Philippines since 1898 have been oriented to the the anglo-saxon United States. The Americans, who otherwise love exerting themselves for the ideals of Freedom and Democracy, had brutally annexed the islands after their victory over Spain, without regarding the popular will of the Filipinos, who even then already wished to be independent. This independence was the central problem of all who wanted to inquire about the state of the islands The Americans viewed the Philippines as an economic and power-political base of their Far Eastern interests. Against this the the Filipinos retained their quest for independence even under American domination. They relied on the utterances of influential american politicians, who in fact were for the granting of independence to the islands sooner or later. Its granting was made conditional on the population's ability to constitute a stable government and to secure Peace and Order. The american President Wilson demanded soon after the first World War, that Congress grant the Philippines independence immediately, but was unable to have his wish. The enemies were still too powerful. They liked pointing to the economic reasons that made Independence impossible. But the Ecopnomy of the Philippines does not show the tendency of monocultures like the Dutch East Indies or Malaya. Huge plantations are only few in the islands. The basis of Production (Sugar, Hemp, Coconut Oil) is peasant tenancy, which during the Great Depression could adapt better than a complex industry. The precarious fact of the Filipino economic structure is its almost completely one-sided orientation of external trade with the United States. The most important products, which on the islands could only be consumed to a small degree, like Sugar and Hemp, where exported to 60 to 75 % to the United States. In the last years the role of Japan in external trade has become ever stronger. Also this fact was tkaen as a reason to withhold independence by the american side. One also pointed out that an independent Filipino Republic was unable to defend itself against a japanese military invasion. American aid would come too late, because of the great distance to american bases. Pearl Harbour in Hawaii lies around 9000 km away! One pointed out, tht the important military-geographic situation of the islands on the west side of the Pacific Ocean and at the entrance to the south-east Asian waters the islands would become an object of contention in world-politics, even if they islands were to be self-sufficient.

At last the america groups which were for the granting of independence gained the upper hand. But not from a selfless cause ! It was becoming obvious, that some products of the Philippines like Sugar and Coconut Oil had come to be a great competitor for american products (like cuban sugar!). In granting independence, one hoped that this competitor would be wiped out, since the products of a sovereign Philippines could be taxed by appropriate tariffs. And to this the political-strategic reasons were added. In a conflict with Japan one would reckon with a swift conquest of the Islands by the Japanese, which in this present war in the indopacifc space came to be The reconquest of the Isalnds by the american fleet would come with great sacrifices and was in no realtion to the factual economic and strategic value of the isalnds. Back then one did not expect, that in the outbreak of war the US-Fleet would be greatly hampered by the sinking of five Battleships and thus incapable to the reconquest of the islands. Accordingly, the northern Philippine Island Luzon with the capital Manila lies only 400 km from japanese Formosa. Thus Japan will out of purely military geographic reasons be able to keep her conquests and America has lost the Philippines for ever.
The Philippines were promised independence for 1945. A new constitution was created, one which – and one mentions this as a curiosity – as the first and only one in the world contains the „Kelogg-Anti-War Treaty“ in Section 3 of the paragraphs. The question of possible american fleet bases would have to settled by mutual treaties. But as in the last years japanese-american Relations became ever tenser, the granting of independence was again postponed, according to the economic reasons ennumerated. One sees that american statemen were completely insincere. It would also have been bizarre, that a brutal and aggresive great power like the United States will have retreated from such an important strategic position.

So now the War in the Far East and the Pacific has become a Fact. And so the Conquest of the Philippines by Japan has become a hard fact for the Anglo-Saxon powers! Thus all the prior discussions about the independence of the Philippines have been overtaken by events. These islands endowed with rich natural resources, but sparsely populated, will be made, like the other former occidental colonial possessions, part of the New Order of East Asia. Especially the Philippines seem to be ordained, because of their great position in relation to Japan, to be able receive the japanese over-population. IN which political-legal Form the Philippines or its native population will shape its future, cannot be said conclusively today.

and in passing

The pan-Asianist movement in East Asia was accompanied by the pan-Malayan movement in South-East Asia. It was also against european colonial domination, and it was focused on the unity of the different Malay peoples in the insular space. One can observe as the first steps in this direction the Filipino struggle for independence and the formation of an independent Malay naval center in the Dutch East Indies during the first World War. For the political formation of the Malay Peoples the same can be said as said for the Pan-Asian movement. Japanese victory has greatly accelarated this development, that in peaceful times would have required several decades. The political unification to a Greater Malay Empire, that with 80 to 100 Million in a relatively autarc living space, would have previously caused great difficulties due to the spatial and ethnic division.

Thailand and the Philippines are lauded for being resistent to Communism, but the author is actually very prescient (in Vietnam a.k.a "Annam", in Indonesia, as well as in Malaysia, nationalism WILL be combined with Communism.

In the Philippines bolshevism didn't have any possibility to disguise itself as a native Nationalism that could be exploited for propaganda purposes.

and anybody hear of a scheme of rubber plantations to divide the Philippines in Christian and Moro parts ?.

„typical example of hypocritical and brutal Anglo-saxon profit-politics

some statistics in passing: the Philippines has 5,83 % of Sugar production in 1938/39 and Manila a Population of 623500


This post has been edited by matigasngulo: Mar 12 2010, 01:25 AM

[engkantada]

Good Am! I got interested with the topic do you know somebody who buys the BILLS for the ABL? Tnx

This post has been edited by engkantada: Mar 23 2010, 03:13 PM

[engkantada]

Good Am! I got interested with the topic do you know somebody who buys the BILLS for the ABL? Tnx

What to do with ABL Bills?

[matigasngulo]

Does somebody accept them at face-value ? 1 to 1 exhcange in today's pesos or more ?

[engkantada]

Got Booted out...... any who.... A question I've been wanting to ask and i honestly guess that this needz a precise answer... I have friendz now who quarrels whether the ABL's have GOLD back-ups located across the globe... Do the ABL Bills have the secret to unlocking the mysteries of the Philippine's Wealth- SO CALLED "GOLD" and the "CERTIFICATES" ? Is it really true that NOW it is being Hunted by the moneyed people for Redemption?

I've seen the posts and was critical at one point... I will be able to sleep well knowin the facts about this thx very much

[azaz]

Got Booted out...... any who.... A question I've been wanting to ask and i honestly guess that this needz a precise answer... I have friendz now who quarrels whether the ABL's have GOLD back-ups located across the globe... Do the ABL Bills have the secret to unlocking the mysteries of the Philippine's Wealth- SO CALLED "GOLD" and the "CERTIFICATES" ? Is it really true that NOW it is being Hunted by the moneyed people for Redemption?

I've seen the posts and was critical at one point... I will be able to sleep well knowin the facts about this thx very much

As far as I have read, there are over 100 ABL certificates ranging from 3500 metric tons to 7000 metric tons. Now, even if your ABL is genuine, its redemption is currently being blocked by the DNP enterprises around the globe. Diaz Trustees, based on the document left by Jose Antonio Diaz, is only allotting 5% of Diaz's gold bullion to Ex-Pres. Marcos as attorney's fee. If that 5% is referring to the 617,500 metric tons then that is about 30,000 metric tons, or just four ABLs at 7,000 mt, or nine ABLs at 3500 mt. Anyway, 30,000 metric tons is still around 900 Billion USD. So, I think the best thing to do, if people are holding any ABLs is to consolidate with other ABL holders and try to come up with a common solution.

This post has been edited by azaz: Mar 24 2010, 09:48 PM

[matigasngulo]

Please stop reading this and turn back to the front page of the BusinessMirror. Notice the two graphics on the right-hand side showing the 30-day movement of the peso and of the PSEi or Philippine Stock Exchange index. I will wait right here.

Notice anything interesting? How about the correlation between the movement of the peso and the stock market?

This is something that I have been talking about for years. Peso up, market up; peso down, market down.

The graphics on the front page show the movement of both since February 20. During that period, the peso appreciated from about 46.50 to about 45.50. The stock-market index rose from approximately 3,015 to 3,084. The percentage changes are interesting, too. Peso up 2.15 percent; stock market up 2.29 percent.

Please do not think this is unique or coincidental. On October 28, 2009, the peso was trading at approximately 48 to the dollar. The PSE index closed around 2,000. Since October 2009, the peso has appreciated by 5 percent; the market by about 50 percent.

It would be nice if the percentage increases over the last six months were the same as the PSE. Then I could do a big “I told you so!” However, the price of the peso is controlled and manipulated by the Bangko Sentral ng Pilipinas (BSP) while the stock market is controlled by individual buying and selling.

In effect, the stock market has been telling us that the peso is due for some significant appreciation in the future. The rise of the peso in the last month is an indication that the BSP is beginning to let the peso move slightly more toward its real value. And what is the “real” value of the peso? Probably closer to 35 than 45.

Now, of course, do not expect to see the peso near 35 to the dollar anytime soon. That kind of movement and volatility would not be good for the economy at all. Yet in truth, the peso is probably undervalued by as much as 30 percent in relation to the US dollar. This is based on the purchasing power of the peso in comparison to the US dollar. All Asian currencies are undervalued. That is because Asian countries are in fierce competition for their exports, and one way they can (or think they can) better compete against one another is through maintaining a cheap currency. Perhaps more important, China ’s currency is undervalued by about 50 percent. The other Asian countries cannot afford to allow their currencies to rise to a true value against the dollar while China continues to keep a cheap renminbi. If the Chinese currency remained where it is and the peso appreciated to 35, there would not be any locally made product left as Chinese imports would absolutely take over the local economy of the Philippines as well as all our other neighbors.

Yet the charts of the peso and the Philippine Stock Exchange are both at a critical point. That critical point is a breakout to the upside that forecasts a strong and prolonged upward movement.

The key price for the PSE composite index is 3,120. A break of 3,120 immediately targets 3,250, then 3,350, and finally 3,600/3,800. For the peso, the breakout level is 45.50 which targets 44, then 42 and to 40 to the dollar.

Notice that we are talking about both the peso and the PSE moving to levels not seen since the good old days, pre-financial crisis, in 2008. Beyond those prices, we are looking to a move to pre-1997 Asian crisis level.

Could that happen? Of course. In 1997, the US economy and dollar were at the top of the game. The Dow Jones was making new historic highs practically on a daily basis. Gold was trading around $325 an ounce. The Japanese yen was 125, not 90. The euro traded in 1999 at nearly par to the dollar, costing $1.07 to buy one euro, not $1.35 as today.

As money fled then from Asia to the West, so, too, will funds flee the West and come to Asia and the Philippines. The problems that confronted the Asian countries in 1997 are almost exactly what are facing the West today. No one wanted to buy Asian government debt. Economic growth stopped. Unemployment rose.

As the dollar devalues over time, oil prices will rise. The Philippines must react by allowing the peso to appreciate to offset rising fuel costs. As the dollar depreciates, initially those Filipinos dependant on remittances will take a hit. However, over time, dollar devaluation will cause inflation to rise in the US. Even now the official numbers are inaccurate. Real inflation is running nearly 9 percent higher on a year-to-year basis in the US. As price inflation rises in the West, so, too, will wage inflation. At some point, there will be a washout in that remitted dollars will mean fewer pesos, but the amount of remitted dollars will rise significantly. We are already seeing this happening, with the dollar amount of remittances up 8.5 percent in January 2010.

Follow the peso and then look at the stock prices. Both will take a short rest where they are right now at their respective resistance levels. That will not last for long.

The peso is going up. The stock market is going up. Bank on it.

http://www.businessmirror.com.ph/index.php...n&Itemid=64

[matigasngulo]

The Philippines has had a number of positive developments that boost its economic prospects going forward save one that prevented the New York-based global rating firm Moody’s Investor Service from upgrading the country’s current credit standing further.

On Monday its Singapore unit released a statement saying the country’s sovereign credit remains rated a “Ba3” with a stable outlook, mainly because of its continued inability to attract substantial foreign investments.

“But there remains a dearth of investment spending relative to its rating and regional peers, thereby underpinning the importance of fiscal reform to generate higher revenues. That would enable adequate public investments and ultimately higher rates of potential growth,” said Moody’s analyst and assistant vice president Christian de Guzman.

He said this after enumerating a number of positive developments that steeled the Philippines from the ill effects of the global recession, such as its high foreign-exchange reserve level of more than $45 billion, remittances of more than $17 billion, a current- account surplus which means an economy which sets aside some of its foreign-exchange inflows for future use again to defend against external sector reverses.

“The Philippines was one of the few countries in the region to avoid year-on-year contractions in output during the worldwide recession, and its rating is supported by the country’s fortified external-payments position, as well as a fairly sound and liquid banking system,” said de Guzman.

“The country’s historically high level of official foreign-exchange reserves has been bolstered by the resilience evident in remittances from the large number of Filipino workers overseas; this situation has helped buffer the economy and government finances from external shocks and has greatly supported its exchange-rate stability.”

“In terms of economic fundamentals, for the near term, remittance inflows and receipts from business-process outsourcing—now a major industry—will (among other things) support the current account, as well as private consumption,” he added.

Although it is hampered by a relative lack of infrastructure, foreign investors continue to find the Philippines attractive as a low-cost destination due to the abundance of a skilled, English-speaking labor force and favorable fiscal incentives, as well as other factors, according to Moody’s.

The scale of the Philippines’ $160-billion economy is in the mid-range among Moody’s-rated countries but its per capita income of $2,900 “is very low” and coupled with relatively low fixed capital investments, constrain the strength of the country’s economy.

The last rating action on the Philippines was taken July 23, 2009, when Moody’s upgraded the sovereign bond rating to Ba3 from B1.

http://www.businessmirror.com.ph/index.php...s&Itemid=58

sooo, any news, rumors, gossip about indulgences, re-imbursements, recoveries etc ? a time-table for 2010 ? there are going to be new banknotes in december.

[azaz]

Although only 5% is allotted to ex-Pres.Marcos by DNP Enterprises, Marcos gold asset may not be only confined with his percentage from Santa Romana's 617,500 metric tons. Many sources reveal his recovery of World War II gold buried (and more are still maybe buried) in different parts of the Philippines. I suppose ABLs might also be backed by this if the late president was able to find a way to deposit the physical gold in some local or foreign banks. So, to Engkantada, if you have an ABL, I think the best way is to reach former First Lady Imelda Marcos and get what she thinks. She may also have an ABL and the other documents. What DNP Enterprises is searching for right now are lost SGSR gold certificates at 7,000 metric tons each. They call them Gemini, Virgo, etc.. certificates. DNP gives a certain finder's fee for the recovery of these certificates but I do not exactly know how much.

As for 2010, Todd Alphine says that this is the last year of dismantling the more than 100 bank accounts of Severino Garcia Santa Romana, aka, Fr. Jose Antonio Diaz. Twenty-five percent is allotted for Philippine reconstruction. But I do not know when it will benefit our countrymen or if it will be given at all. Pray. Only God knows.

This post has been edited by azaz: Mar 30 2010, 06:30 AM

[trismegistos]

Panibagong deadline? Parang marami na yatang deadline ang nakalipas na.
Kung desperado tayo makuha ang ginto para makaahon sa pagka-utang at kahirapan, parang mas desperado pa yata ang mga global elites na makuha ito...
Gagawin lahat kahit gumamit ng TEM?

Philippine nationalism is also rising, and this has to be check-mated once and for all in the oligarchs’ perception. This nationalism is intersecting with the rise of the ASEAN as a region-state, and it won’t be long before the Philippine nation and its neighbors will realize that their region was formerly the Majapahit Empire, that they were thus duped by the Western powers into believing for some time that they were separate nations and states (nations crafted by the same powers). They are one nation, and they will prevail.

Lastly, there are the huge hoards of gold the country possesses. No, the hoard doesn’t belong to the Marcos family, but comes from diverse sources. A large amount of the bullions were a heritage of the Majapahit Emperor and passed on to descendents, many of whom are Filipinos. Some other large hoards remain unearthed, but lie secured deep within the surface... I’ve done meditation visions before on the gold hoards, and was almost overwhelmed at the sight of the precious metals filling up large bank vaults specially designed for them (these are the bullions traceable to the Majapahit princes).

The oligarchs’ financial empire—created through liberalization, deregulation, privatization, globalization, and bubbled through legitimized looting and swindling—is now eroding rapidly, and it won’t be long before massive risings across the globe may lead to the overthrow of the oligarchic puppet states, confiscation of properties (watch oligarchs’ assets sequestered in Russia), and decapitation of the perceived criminals and their subaltern war criminals. Before the total collapse of the NWO’s global empire happens, drastic moves have to be done. The predators badly need the gold to bankroll their assets and sustain ascendancy of power.

Amid all the synergized anarchy-–or synarchy—across the globe perpetuated by the same predatory oligarchic families, moves are now being made to get the Philippines at all cost. The Pentagon’s men are moving to possibly install puppet generals to power in a failed election scenario, while the Anglo-European financiers eye the installation of liberal candidate Noynoy Aquino and crocodile factions to power.

Meanwhile, very surreptitiously crystal_line re_ceptors were installed in Luzon notably the Laguna Lake area, under the guise of ecology projects. I was able to monitor this move through visions... These receptors will be used to re-echo submarine earthquake vibrations detonated by possible combination of nuke and Tesla Earthquake Machine or TEM.

It is a likely eventuality that a quake can be calibrated to yank the Marikina fault a bit that can ruin Manila into flattened debris. Producing 1/3 of the nation’s wealth, a flattened Manila means total devastation to the nation that is struggling hard to end mass poverty and achieve development maturity by 2016 or so.

The devastation of the Philippines via submarine nuke and TEM could also distort or warp the electromagnetic field or EMF of the islands and keep the cross-galactic Light Forces at bay

This post has been edited by trismegistos: Mar 30 2010, 10:03 PM

[azaz]

Blessed Holy Week to all!

http://www.youtube.com/watch?v=2Shd1iKHSLE

This post has been edited by azaz: Apr 1 2010, 04:32 AM

[matigasngulo]

For going through Good Friday & Saturday:
http://www.youtube.com/watch?v=NnJNT_xzDMA

[trismegistos]

Happy Easter to All!

[azaz]

To ABL holders, a message from BSP:

http://www.bsp.gov.ph/publications/media.a...206&yr=2001

http://www.bsp.gov.ph/regulations/regulati...pe=2&id=322

This post has been edited by azaz: Apr 4 2010, 02:26 AM

[matigasngulo]

it just amazes me that rich people could be so easy to swindle.

LMAO i guess i get to eat my words...

http://www.youtube.com/watch?v=ACm1ntw_4dM...player_embedded

http://www.youtube.com/watch?v=oSpCSzgB4MA...player_embedded

This post has been edited by matigasngulo: Apr 11 2010, 09:22 AM

[matigasngulo]

where is IT at ?

Do you like conspiracy theories? Is The Da Vinci Code on your most-read list? Still wonder who killed President Kennedy?

Amid all the turmoil in the global financial markets these last two years, several “conspiracy theories” have come to the front. There is no question now that some major financial institutions in effect plotted to conceal the debt problems of Greece by hiding that country’s obligations through a series of transactions that masked the true extent of the Greek government borrowings.

There is no question that bankers knew the potential worthlessness of the subprime mortgages they packaged as respectable investments. Even the Federal Reserve Bank of New York concealed the extent and purpose of the multibillion-dollar bailout of AIG which protected the interests, not of the public, but of private banking firms that did business in the shadowy investment vehicles that AIG bought and sold.

Yet the longest-running conspiracy theory in the financial world and one that you are probably not aware of is, where is all the gold that banks and governments are supposed to be holding in their vaults?

Although the world’s currencies have not been backed by gold for three decades, all major governments have kept some currency credibility by the fact that they hold a substantial amount of physical gold in reserve. The most famous of these holdings is the United States government gold stored at Fort Knox, Kentucky.

It has been taken as an article of faith that this gold exists in physical form. However, there is little proof that governments and banks actually still have all the gold that they claim to possess.

The Bangko Sentral ng Pilipinas (BSP) claims on its statement of assets that it is holding some $6 billion worth of gold. That may be true in an accounting sense, but it may not be true that the BSP is actually physically holding anywhere near that amount.

The US government says it is holding tens of billions of dollars worth of gold. That is possible but no one really knows. There has not been a physical audit of the gold supposedly stored in Fort Knox for nearly 50 years. It is possible that Fort Knox is not filled with shiny yellow gold, but with pieces of paper, receipts for that physical gold that has been loaned to another government or financial institution.

Institutions and individuals buy and hold physical gold. They often store it at companies called bullion banks vaults. When you store it, you are given a receipt saying you have a certain amount of gold on deposit. It works the same way for money deposited at a bank. The bank does not keep your physical money in their vaults but loans it to a third party that signs a promise to pay. The bank can do this because it is unlikely that all of its depositors would want cash at the same time. But if that ever happens, it is called a bank run and the bank can fail because there is not enough free cash to cover the deposits.

Further, a $100,000 cash deposit may be backed by a collateralized mortgage on a house now worth only $50,000. That is what has caused hundreds of bank failures in the US recently.

Because these bullion banks are not well-regulated, it is probable that they have sold or loaned the gold they are supposed to be holding. The latest potential scandal is with ScotiaMocatta, the only bullion bank in Canada. Witnesses who have seen their vaults report that there is very little physical gold inside. They have sold or loaned their depositors’ gold to someone else, and if all the people who theoretically have gold stored there want delivery, there will be a failure.

Financial giant Morgan Stanley was sued and settled the lawsuit for selling clients gold they did not have. Morgan bought the receipts—which are promises to pay—from others to back the claims for the physical gold that their clients purchased. There was no physical gold.

It is likely that many countries (hopefully not the Philippines) have loaned their gold to companies like Morgan Stanley and that many of those government bank vaults are empty, holding only paper receipts.

I am not saying it has happened, but this could be the reality. Say for a moment that the BSP loaned out its gold when the price was $500 per ounce. The borrower sold the physical gold at that $500 price, hoping they could buy it back at $400 to make a profit and then repay the BSP with physical gold. Now that the price is $1,000, the borrower of gold from the BSP cannot afford to buy back.

So the question that is being asked about and to the world’s central banks is: Do you still have the physical gold in storage or are you holding receipts and promises to pay that are potentially worthless?

I want to think that the BSP is holding physical gold because I sincerely believe that the BSP is well-managed by professional and financially prudent executives. Yet when looking at the BSP financial statement and their press
releases, there is no firm confirmation that physical gold is being held in the government’s vaults. The BSP simply includes “gold” as part of its total gross international reserve assets. But the BSP could be valuing the receipts for the physical gold that it has loaned out, not physical gold holdings.

If that is the case, then that $6 billion of gold is not gold but a paper asset which has unknown value, that the Philippines may or may not get back in the future.

I hope I am wrong about this.