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Daily Dispatches

China is in default on a trillion dollars in debt to U.S. bondholders

Section: Daily Dispatches

By Andrew Hale
The Hill, Washington
Tuesday, July 4, 2023

Every country should pay its sovereign debt. Default, we are told, is not an option.

But has anyone told China?

The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.

Curb use of central bank alternatives to Libor, watchdog says

Section: Daily Dispatches

By Huw Jones
Monday, July 3, 2023

LONDON -- The use of four dollar-denominated alternatives to the now-scrapped Libor interest rate need restrictions to avoid threatening financial stability, a global securities watchdog said today.

IOSCO, a global securities watchdog group that includes the U.S. Securities and Exchange Commission as a member, said a review has identified "varying degrees of vulnerability" in these four unnamed rates.

The final dollar-denominated London Interbank Offered Rate or Libor was published last Friday.

Jan Nieuwenhuijs: Despite its declining price, gold is strengthening

Section: Daily Dispatches

By Jan Nieuwenhuijs
Gainsville Coins, Lutz, Florida
Monday, July 3, 2023

The U.S. dollar price of gold has been declining in the past two months, though it continues to show significant strength against the 10-year TIPS yield, to which it was tightly correlated from 2006 until 2021. Gold's performance since early 2022 must be seen as bullish.

A big change has occurred in the gold market since Russia invaded Ukraine and the West seized the euro and dollar denominated assets from Russia’s central bank. 

USAGold's July 'News & Views' letter is available

Section: Daily Dispatches

12:35p ET Saturday, July 1, 2023

Dear Friend of GATA and Gold:

USA Gold's "News & Views" letter for July, posted today, offers its top 10 gold-related commentaries for the last month and they may encourage fans of the monetary metals. The July edition can be found here:

Gold revaluation is imminent even as Fed fights it, Maguire tells LFTV

Section: Daily Dispatches

10:30p Friday, June 30, 2023

Dear Friend of GATA and Gold:

Gold revaluation is imminent, London metals trader Andrew Maguire tells Kinesis Money's "Live from the Vault" program with Shane Morand this week, with the U.S. Federal Reserve continuing to short the monetary metal in the paper market while central banks around the world are steadily buying physical gold to strengthen their currencies. But, Maguire adds, it is silver that is the most undervalued asset.

The program is 33 minutes long and can be viewed at YouTube here:

Kinross rejected takeover bid from Endeavor, sources tell Bloomberg

Section: Daily Dispatches

By Dinesh Nair, Jacob Lorinc, and Jack Farchy
Bloomberg News
via Yahoo News, Sunnyvale, California
Friday, June 30, 2023

In recent months Endeavour Mining made a takeover approach to rival Kinross Gold Corp. that was rebuffed by the Canadian company, according to people familiar with the matter.

... Dispatch continues below ...


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Venezuelan central bank keeps losing lawsuit to recover gold reserves

Section: Daily Dispatches

By Marc Jones and Mayela Armas
Friday, June 30, 2023

LONDON -- The Venezuelan Central Bank board controlled by the government of President Nicolas Maduro on Friday lost its latest appeal over $1.95 billion of the country's gold reserves held in the Bank of England's underground vaults.

The Venezuelan central bank was challenging a previous ruling that certain decisions of Venezuela's top court should not be recognised by English courts in the gold case.

Shadow reserves -- how China hides trillions of dollars of hard currency (and maybe gold too?)

Section: Daily Dispatches

There is no mention of gold in this report but at least it may strengthen suspicions that the Chinese government has much more gold than it has been reporting to the International Monetary Fund. It's also a reminder that government financial and economic data everywhere is easily falsified, just as the secret March 1999 report of the executive staff of the IMF confirmed that official gold reserve data is misleading because the agency allows member central banks to include leased gold with unencumbered gold:

Moscow Exchange launches quarterly gold futures, plans perpetual futures soon

Section: Daily Dispatches

Moscow Exchange to Launch Perpetual Gold Futures in July

From Interfax, Moscow
Thursday, June 29, 2023

MOSCOW -- The Moscow Exchange plans to start trading in perpetual gold futures in the near future, Maria Patrikeyeva, head of the exchange's derivatives market, said.

Alasdair Macleod: Geopolitical evolution

Section: Daily Dispatches

By Alasdair Macleod
GoldMoney, Toronto
Thursday, June 29, 2023

The increasing number of nations seeking to join the BRICS brings geopolitics into the spotlight. At the time of this writing, existing members, those who have applied to join, and those expressing an interest total 36 nations, with over 60% of the world's population and a third of global GDP.