Germany wants to inspect the gold it has stored at the Fed.

CalicoJack

German poiliticians wants to inspect the gold it has stored at the US Federal reserve bank.

Link

derryb

the demand for tungsten just went up!

tneig

So, here is where we see the complexity other nations have to deal with.

For an individual, we would all likely say to take physical posession of the gold.

But from what I'm gathering about national bulk gold storage is:

German can inspect its ~gold~, but it and everyone else knows they they only own a "potential," and not the gold. If German wanted to take it all back, it could cause a run on the gold in these banks. Germany would likely never get all their gold. It's all leased and moved around the room and on the books with multiple owners to every ounce. Like a bank or a credit union that could not deliver all the cash in a run.

So, what does Germany do, rock the boat? Any rocking of the boat risks their "gold potential." Now if they slowly took out 5% a year it would still be noticed, with the same likely run on the gold bank from other nations. Wars have started for less.

Germany will likely continue this phony posturing for a bit. Get to inspect some prepared records and physical, then go along with the game. Its like suddenly realizing you have to keep face, realizing that you really lost full ownership of your money. And that you lose all your money if you make too much trouble.

Physically getting out all their gold is only a 'thought concept'. They don't have another safe place to store it (pardon the pun, safe), they couldn't actually get it, and the reprecussions would likely be very high for the attempt down to the demize of the individuals making those decisions.

CaptHenway

Please correct the false thread title from "Germany wants..." to "A few right-wing German politicians want..."

secondrepublic

I have to smile when I read about all the trust the Germans place in our goverment. Let's hope neither their trust nor their gold has been "misplaced"

johnny9434

<< <i>I have to smile when I read about all the trust the Germans place in our goverment. Let's hope neither their trust nor their gold has been "misplaced" >>

no doubt about that

1jester

Jim Willie offers more insight into the issue.

Unknown

This content has been removed.

LowBudget

can you blame them? we have guys who cant do their own taxes running things.

PerryHall

<< <i>can you blame them? we have guys who cant do their own taxes running things. >>



Good point. I assume you're talking about Turbo-tax Tim.

derryb

central banks are realizing the importance of their gold holdings and the fraudulent behavior of those that hold it.

jmski52

Anyone storing someone else's assets should be more than willing to provide 100% verifiability, instead of no verifiability - at regular intervals if requested, not every few decades or so.

Branding someone as "Right Wing" just because they stand up for their own peoples' rights, strikes me as somewhat illogical. Accountability ought to be considered normal.

CaptHenway

<< <i>Anyone storing someone else's assets should be more than willing to provide 100% verifiability, instead of no verifiability - at regular intervals if requested, not every few decades or so.

Branding someone as "Right Wing" just because they stand up for their own peoples' rights, strikes me as somewhat illogical. Accountability ought to be considered normal. >>



The linked story says:

"Bundesbank President Jens Weidmann wanted to personally convince Peter Gauweiler that the German gold was still where it should be. Early this summer, the head of Germany's central bank took the obstinate politician from the conservative Christian Social Union (CSU), a party that is a member of the government coalition in Berlin, and a number of his colleagues into the Bundesbank's inner sanctum: the gold vault."

In common usage, "conservative" = "right-wing." How do you interpret it otherwise?

cohodk

What would happen to Germany if they didnt have any gold? Would they suddenly find themselves back in the Dark Ages? Would all the Mercedes' stop running? What about bratwurst and Oktoberfest?

CaptHenway

<< <i>What would happen to Germany if they didnt have any gold? Would they suddenly find themselves back in the Dark Ages? Would all the Mercedes' stop running? What about bratwurst and Oktoberfest? >>



They would have to hold Oktoberfest in September........

calleocho

Amazing that after the beating the took on the war, Germany will still end up with the second largest gold reserves in the world.

The country was basically split in half and had to pay war reparations as well...How did they end up with the 2nd largest gold reserves in the world?

LowBudget

<< <i>

<< <i>can you blame them? we have guys who cant do their own taxes running things. >>



Good point. I assume you're talking about Turbo-tax Tim. >>

It would be like Peanuts' Pigpen opening a laundromat

KUCH

<< <i>Amazing that after the beating the took on the war, Germany will still end up with the second largest gold reserves in the world.

The country was basically split in half and had to pay war reparations as well...How did they end up with the 2nd largest gold reserves in the world? >>



Could it be that Nazi Germany stole and pilfered the gold from all countries it occupied?

jmski52

I don't remember Germany having to pay reparations after WW2. That was WW1, and it was one of the reasons that the Weimar Republic went down in flames due to hyperinflation. The Allies put money into Germany to help it rebuild, and there were no reparations after WW2. See: Marshall Plan

I think that I read recently that Germany's gold was accumulated mostly since 1971. This makes some sense, because the US helped to rebuild Germany after WW2 and it didn't happen overnight, so I doubt that they accumulated much gold in the '50s and '60s while the rebuilding was still going on. The recovery in West Germany with a vibrant free market economy stands in stark contrast to the stagnation and drab existance experienced by East Germans until 1989.

Nazi Germany did pilfer gold from the Jews, and in all liklihood they may have taken gold from every country they conquered, but by the time the Russians and Americans were racing to get to Berlin there wasn't much left of Germany. It may be that the Russians, who got there first took the gold. It may be that the gold was all spent before they got there.

If anyone here is too young to know about it, the East Germans were shooting people during the 1950s and early 1960s as they tried to escape East Berlin, and the Berlin Wall was built to keep East Germans in. West Germans could travel anywhere they wanted, except to the Communist Bloc.

1jester

Didn't the Nazis (as a political organization, country or individually) do some or most of their banking through banks in Switzerland? Then, even after the Russians pilfered the country after the war, whatever was left in Switzerland would not have been taken, correct? I wonder whatever happened to all of that.

The communist regime in East Germany actively killed anyone trying to escape, even till the bitter end of the wall, not only in the 50s and 60s. I remember when I was in Germany (several tours) in the 80s, we would hear the stark reminder of communism almost on a daily or weekly basis on AFN radio and the Stars and Stripes as the death toll racked up each and every year. Hundreds upon hundreds were slaughtered trying to escape East Germany.

jmski52

Jim Willie claims to have personal contacts in Switzerland who think that Nazi gold is still given shelter there. Former Nazis were persona non grata after WW2, so I'd be surprised if any Nazi gold in Switzerland would have made its way back into official German vaults after WW2. But, stranger things have happened - things like putting a private banking cartel in charge of issuing the money supply for the world's preeminent nation.

tneig

'Hah, they put their gold in our Fed banks for safe keeping.' They are likely never to see the entire lot again, ever.
Maybe, the best they can do is play the game.

Although, if I was making germany's decisions, I'd be taking out as much as I could over time, regardless of how it affects the game.
Because the game always has an end, and it usually fairs poorly for those dependant upon on another party.

derryb

Germany realizes it will soon be needing that gold

cohodk

<< <i>Germany realizes it will soon be needing that gold >>



They gonna sell the gold to pay bills?

Justacommeman

<< <i>

<< <i>Germany realizes it will soon be needing that gold >>



They gonna sell the gold to pay bills? >>



No. They will use it to fund General Burkhalter's 50th Birthday Bash. I saw it once on Hogan's Hero's

MJ

tneig

Then they must be pooping their pants knowing that they aren't going to get the physical.
But they must already know that.... Maybe they better lease it out as well and utilize the potential....



<< <i>Germany realizes it will soon be needing that gold >>

ksammut

<< <i>I don't remember Germany having to pay reparations after WW2. That was WW1, and it was one of the reasons that the Weimar Republic went down in flames due to hyperinflation. The Allies put money into Germany to help it rebuild, and there were no reparations after WW2. See: Marshall Plan

I think that I read recently that Germany's gold was accumulated mostly since 1971. This makes some sense, because the US helped to rebuild Germany after WW2 and it didn't happen overnight, so I doubt that they accumulated much gold in the '50s and '60s while the rebuilding was still going on. The recovery in West Germany with a vibrant free market economy stands in stark contrast to the stagnation and drab existance experienced by East Germans until 1989.

Nazi Germany did pilfer gold from the Jews, and in all liklihood they may have taken gold from every country they conquered, but by the time the Russians and Americans were racing to get to Berlin there wasn't much left of Germany. It may be that the Russians, who got there first took the gold. It may be that the gold was all spent before they got there.

If anyone here is too young to know about it, the East Germans were shooting people during the 1950s and early 1960s as they tried to escape East Berlin, and the Berlin Wall was built to keep East Germans in. West Germans could travel anywhere they wanted, except to the Communist Bloc. >>



I believe some reparations were paid but not necessarily all in cash. Much of it was in dismantling of plants. You can google a number of articles.

derryb

<< <i>

<< <i>Germany realizes it will soon be needing that gold >>



They gonna sell the gold to pay bills? >>


Maybe they'll buy dollars with it.

cohodk

<< <i>

<< <i>

<< <i>Germany realizes it will soon be needing that gold >>



They gonna sell the gold to pay bills? >>


Maybe they'll buy dollars with it. >>



Hmmmm, more demand for dollars.