August 9, 2007 (LPAC)--According to a report in La Repubblica today, Italian central banker Mario Draghi (Mr. Britannia), who is also head of the Financial Stability Forum, has just completed a dossier on a world systemic crisis simulation, and is pushing his colleagues to look into the dossier. The dossier required months of work and continental conference-calls, which lasted even two days in a row.

Central bankers deny officially that the current subprime and CDS meltdown can bring down the system, but they are preparing exactly for that option. "The central bank is prepared to build a dam with all instruments, including the essential one, gold reserves," says the article. Draghi is now pushing his colleagues to define within a short tere "principles and procedures" for more frequent "crisis simulations".

The outrageous aspect of this story is that the revelation is occurring in the midst of a debate in Italy, on whether the government should use a portion of Italian gold reserves to balance the budget. A Parliament resolution voted on July 29th called for that, and Premier Romano Prodi, two days ago, said that this proposition cannot be ruled out. Prodi received a blunt answer from the European Central Bank, claiming unique jurisdiction on those gold reserves, as per treaties. Now central banks are revealing: we need your gold to bail out the hedge funds!