Zero Hedge reports today that a market analyst for Deutsche Bank has figured out an easy way for the Swiss National Bank to nullify the Swiss Gold Initiative if it is approved at Switzerland's national referendum on November 30.
The referendum would require the central bank to increase its gold reserves, and the Deutsche Bank analyst, Robin Winkler, writes that rather than purchase more reserves, the bank could just pretend to have them for one day each month, the day of the bank's monthly report, a bookkeeping pretense accomplished with an overnight gold swap, reversed the following day.
Of course such evasion and deception would be perfectly in the spirit of central banking, though it might tend to remind people that central banking has become worse than the disease it purports to cure.
As was confirmed by the secret March 1999 report of the staff of the International Monetary Fund, gold swaps and loans are primary mechanisms of surreptitious manipulation of markets by central banks:
http://www.gata.org/node/12016
http://www.gata.org/files/IMFGoldDataMemo--3-10-1999.pdf
Zero Hedge's report is headlined "How Central Banks Use Gold Swaps To 'Boost' Their Gold Holdings" and it's posted here:
http://www.zerohedge.com/news/2014-11-15/how-...se-gold-swap...
