very cute, Bron. Those Aussie Shepherds are wicked smart!Isn't that a bit stereotypical for Australia though? Aussie Shepherds?what's his name: GATA?
Aussie Shepherds were not a popular breed over here due to the coat - too hot for a working dog - but they are becoming more popular.Wicked smart also means wicked naughty.Name is Asher, apparently means blessed, fortunate (needless to say I had no input into the name).
Hi Bron,Cute puppy, thanks for sharing.Now, back to work please: The BIS and the FDIC are both proposing that gold be re-classified from Tier 3 (50% RWA) to Tier 1 (0% RWA).I thought this was all a bit, well...to good to be true therefore probably unlikely, until I read foot-note 32 on page 26 of the Bank for International Settlements document re Basel III "The First Pillar: Minimum Capital Requirements", as follows:"12. Other assets 81. The treatment of securitisation exposures is presented separately in Section IV. The standard risk weight for all other assets will be 100%.(32)(32) However, at national discretion, gold bullion held in own vaults or on an allocated basis to the extent backed by bullion liabilities can be treated as cash and therefore risk-weighted at 0%" http://www.bis.org/publ/bcbs128b.pdf [see page 26, Item 12 Other Assets and Foot-note 32]Then, I noticed that the FDIC document uses exactly the same wording...harmonisation or what?http://www.fdic.gov/news/news/financial/2012/fil12027.pdf [see page 2]As Basel III implementation starts January 1, 2013 I am reading this as, subject to the discretion of national Central Banks, gold bullion* can be treated as a 0% risk-weighted asset.Isn't this the return of gold to the centre of the monetary system?All the bestSR*ps interesting clarification of "allocated gold" in the wording of both documents!
I see it as just giving bullion banks who already hold gold (fractionally) against their gold liabilities a bit more room to move re capital requirements.I don't see conventional banks deciding to exchange their cash reserves for gold or sell mortgages for gold.
Thanks Bron,I was looking for just that sort of balance to my view that this development will give rise to a pro-cyclical loop for gold that will see Soros's expectation come to pass.