Since Rivadavia began the external debt with the Baring Brothers The gold journey has had only one direction: from Buenos Aires to London. Scalabrini Ortiz denounced that instead of cash we received papers from English commercial houses in Buenos Aires. Financial savants are quick to explain that this is the usual operation, that it makes no sense to move physical gold, that it is a risky nonsense. It certainly is. However, mysteriously, at the time of payment there was no problem sending the physical gold to London. It seems that the Krakens and Leviathans are British mascots that meekly calm down at Her Majesty’s request.
They also had no problem transporting it by sea when the treasure of Buenos Aires was stolen in the first English invasion. Compensation with compound interest would be possible. But London does not respect private property. Unilaterally it decided to block our trade balances accumulated during the second war. Then they paid us with our own old trains, with which at least, as Scalabrini said, “we bought sovereignty.”
London has also seized gold and accounts from Venezuela and Russia for political reasons. Faced with a third world war, Argentina once again sent gold to London. The government says out loud that the operation would serve to obtain a Repo to pay the January maturities, and involve the IMF with the accounting of the reserves. A deputy asked about gold and the monetary authority responded in an unknown tone: “The irresponsible dissemination of information for political purposes put the security of the assets of all Argentines at risk.”. The Minister of Economy Luis Caputo insists that gold cannot be seized, due to the independence of the BCRA. But he vainly claims that offering the gold as collateral is a great idea of his.
It has been said that it cannot be seized because it is unallocated gold. But it is the most common form of contract. Unallocated It does not mean that it cannot be located (a vulture fund has already requested the location), but that it is not assigned a particular physical gold. It is the difference between a safe deposit box and a gold savings deposit box. Banks keep only a fraction of the cash, since not all clients will want to take the elephant; least at the same time. Argentina no longer has those ingots, it has a golden financial contract. As things come, it will be difficult for the walk through the halls of the BCRA to be hindered again. There will be no gold or corridors.
Caputo leaves for streamming to give signals to the markets but he does not know about gold, when the stocks are going to be released, nor about the Repo and the banks involved. He even questioned agreeing with the IMF. It’s Jorge Suspenso. There are three months left until Argentina goes into default and it has not said how to avoid it.
Luckily the BCRA does not close, it was another campaign lie. They closed the “Scalabrini Ortiz” Railway Museum, a beautiful historical building where they may put a Starbucks, a symbolic sign of the delivery of the Homeland.
