Germany Says Its Gold Is Safe In US Hands, Doesn't Want It Back
mrearlygold
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Germany Gives Up On Trying To Repatriate Its Gold, Will Leave It In The Fed's "Safe Hands"
Several months after it was revealed that Germany was able to only recover a miserable 5 tons of its gold in all of 2013 (under 10% of the 84 tons it was scheduled to repatriate), Germany appears to have given up entirely in its attempt to recover gold which simply is not there, and as Michael Krieger reports, citing Bloomberg, has decided to keep "it" (by "it" we don't mean the gold since that clearly has not been at the Fed for decades, but merely the paper promises of ownership: for more see China's gold rehypothecation scandal and how the unwind works) at the NY Fed after all. That is to say, in the "safe hands" of former Goldmanite Bill Dudley.
Via Mike Krieger's Liberty Blitzkrieg blog,
Just last week, I published a post titled, Video of the Day – “End the Fed” Rallies are Exploding Throughout Germany, which subsequently went viral. Interestingly, only a few days later we find out that Germany’s very own criminal political class has decided it will continue to store the nation’s gold in New York rather than bring it back home as had been the intention. It’s quite ironic that just as protests against the fascist Federal Reserve are spreading throughout the land, the political class officially decides to keep Germany’s treasure across the Atlantic, in care of none other than The Fed itself.
To be fair, this merely seems like a way for Angela Merkel and the rest of her German cronies to save face. After all, it was very clear that the Federal Reserve had already told them “no” when they asked for the gold back in the first place. Why else would it take almost a decade to transport the gold from the U.S. to Germany, which was the latest repatriation schedule.
We learn from Bloomberg that:
Germany has decided its gold is safe in American hands.
Surging mistrust of the euro during Europe’s debt crisis fed a campaign to bring Germany’s entire $141 billion gold reserve home from New York and London. Now, after politics shifted in Chancellor Angela Merkel’s coalition, the government has concluded that stashing half its bullion abroad is prudent after all.
“The Americans are taking good care of our gold,” Norbert Barthle, the budget spokesman for Merkel’s Christian Democratic bloc in parliament, said in an interview. “Objectively, there’s absolutely no reason for mistrust.”
Ending talk of repatriating the world’s second-biggest gold reserves removes a potential irritant in U.S.-German relations. It’s also a rebuff to critics including the anti-euro Alternative for Germany party, which says all the gold should return to Frankfurt so it can’t be impounded to blackmail Germany into keeping the currency union together.
The Bundesbank, Germany’s central bank, sent a delegation to the New York Fed’s vault in 2012 for spot checks on the hoard. As the gold’s guardian, the Frankfurt-based Bundesbank is obliged to ensure its safety. It says it’s sensible to store part of the reserves outside the country so they can be swapped more easily for foreign currency in an emergency.
This last sentence is absolutely incredible in its Orwellian irrationality. Swap gold easily for foreign currency? Foreign currency can be conjured up in infinite amounts at will by crooked bankers in suits with phony smiles and calming words filled with complex economic jargon. So Germany needs to be able to swap its gold for that?
German says Thank You
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Tom Pilitowski
US Rare Coin Investments
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Photographer: Thomas Trutschel/Photothek via Getty Images
CDU's Juergen Hardt told reporters in May, “It’s my view that the gold reserves should... Read More
Germany has decided its gold is safe in American hands.
Surging mistrust of the euro during Europe’s debt crisis fed a campaign to bring Germany’s entire $141 billion gold reserve home from New York and London. Now, after politics shifted in Chancellor Angela Merkel’s coalition, the government has concluded that stashing half its bullion abroad is prudent after all.
“The Americans are taking good care of our gold,” Norbert Barthle, the budget spokesman for Merkel’s Christian Democratic bloc in parliament, said in an interview. “Objectively, there’s absolutely no reason for mistrust.”
Ending talk of repatriating the world’s second-biggest gold reserves removes a potential irritant in U.S.-German relations. It’s also a rebuff to critics including the anti-euro Alternative for Germany party, which says all the gold should return to Frankfurt so it can’t be impounded to blackmail Germany into keeping the currency union together.
The Bundesbank, Germany’s central bank, sent a delegation to the New York Fed’s vault in 2012 for spot checks on the hoard. As the gold’s guardian, the Frankfurt-based Bundesbank is obliged to ensure its safety. It says it’s sensible to store part of the reserves outside the country so they can be swapped more easily for foreign currency in an emergency.
Germany’s election in September hastened the shift when the Free Democratic Party, which flirted with bringing the gold home, dropped out of Merkel’s coalition and was replaced by the Social Democrats. Other supporters included Philipp Missfelder, a member of Merkel’s Christian Democratic Union who quit as her government’s envoy for relations with the U.S. in April. Juergen Hardt, his successor, signaled a change of position.
Postwar History
“It’s my view that the gold reserves should be stored wherever they might be needed in an emergency,” Hardt, also from the CDU, told reporters in May. There’s no evidence that German gold at the New York Fed has been tampered with, he said.
German gold reserves, the second-biggest in the world after those of the U.S., totaled 3,386.4 tons on March 31, according to World Gold Council data. Due to German postwar history, the biggest part is stored at the Federal Reserve Bank of New York; the rest is in London, Paris and Frankfurt.
After World War II and the export revival of West Germany’s “economic miracle” in the 1950s, the central bank accumulated dollars it swapped for gold at the Federal Reserve. With Germany split between capitalist west and the communist East German state until 1990, storing most of the gold abroad was a way to keep it out of Soviet reach during the Cold War.
Gold Inventory
That the hoard had never been counted and isn’t fully on German soil for easy access was fodder for critics.
Lawmakers including Klaus-Peter Willsch, a CDU member who opposed bailouts during the debt crisis, asked federal auditors for an opinion. Their report in October 2012 increased pressure on the Bundesbank, urging it to do an inventory and “physically ascertain” German gold holdings abroad.
The central bank met the critics halfway. Last year, it began moving the Paris gold to Frankfurt, pointing out that Germany and France now have the same currency, the euro. Enough of the gold in New York and London will be brought home so half the reserves will be in Germany by 2020.
German gold abroad is stored “only at central banks of the highest international reputation” in countries with “stable democratic structures” and high security standards, the Bundesbank said in a presentation in 2013 in response to bring-our-gold-home campaigners.
Storage Sites
“The Bundesbank never doubted the integrity of the foreign gold-storage sites,” Carl-Ludwig Thiele, the bank’s council member for payments and settlements, said in an interview on May 23. “We were able to see everything we wanted to see in New York. As far as we’re concerned, there are no more open issues.”
The Social Democrats, Merkel’s junior coalition ally, have signaled agreement with the Bundesbank position. Campaigners at “Repatriate Our Gold” also doesn’t see the Bundesbank going further anytime soon.
“Right now, our campaign is on hold,”
And they don't even get a kiss
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
"German gold abroad is stored “only at central banks of the highest international reputation” in countries with “stable democratic structures” and high security standards, the Bundesbank said in a presentation in 2013 in response to bring-our-gold-home campaigners."
Sorry Bundesbank, but someone who won't give you back your gold has a very questionable "international reputation." And if it wasn't questionable before your request for your gold it is certainly far beyond questionable now.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
-Agree and it all exists. All is well. Hey, lease some out. Jack!
-Disagree and demand it, and guess what. Its not there. System crumbles. Everybody looses.
Two roads.
-One road and you continue to own the gold (even though you don't, but don't ask, don't tell)
-The other doesn't have the gold, and you've suddenly been in a fatal car wreck.
I knew it would happen.
Knowledge is the enemy of fear
Okay, answer a straightforward question. If Germany wants its gold back, why can't they get it back? What's the problem?
I knew it would happen.
<< <i>This story has been a farce since it began, contrived by sellers to feed upon the emotions of the buyers. It is easy to create conspiracy theories in small and opaque markets where facts are not easily attainable.
Okay, answer a straightforward question. If Germany wants its gold back, why can't they get it back? What's the problem? >>
Only two possible answers and which one you choose shows how you perceive the Gold market.
1. because there is no gold.
2. because the story is a farce.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
One must always, always, be aware of the current standing and reputation and exchangeability of any and all representative money or value systems.
It is really good to question and break the mental image of a money system down and realize what it fully is to better deal within its system.
Question everything, but also use it all to its full advantage and know the risks.
Sure was much easier before when I was a kid and I thought the dollar bills in my pocket were money and valuable and ever lasting.
<< <i>This story has been a farce since it began, contrived by sellers to feed upon the emotions of the buyers. It is easy to create conspiracy theories in small and opaque markets where facts are not easily attainable. >>
Just like the story of Germany not being able to have their gold returned?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
“The Bundesbank never doubted the integrity of the foreign gold-storage sites,” Carl-Ludwig Thiele, the bank’s council member for payments and settlements, said in an interview on May 23. “We were able to see everything we wanted to see in New York. As far as we’re concerned, there are no more open issues.”
1) The Fed does not control German gold in the USA. It's being held by the New York Federal Reserve Bank in their vault at no charge.
2) If they want to move it there will be transportation fees.
3) The gold is all there, they have separate storage areas for each country/group who has gold stored at the NY Fed, and thus they can perform physical audits if so desired.
This statement seems to contradict itself. Now we're supposed to think that the NY Federal Reserve Bank isn't the main Fed facility? duh.
2) If they want to move it there will be transportation fees.
Why would that even be an issue?
3) The gold is all there, they have separate storage areas for each country/group who has gold stored at the NY Fed, and thus they can perform physical audits if so desired.
Apparently not.
Apparently not.
I don't see what the big deal is and why people keep blowing smoke about it. Nobody gets to conduct an audit. Why the charade?
I knew it would happen.
<< <i>This story has been a farce since it began, contrived by sellers to feed upon the emotions of the buyers. It is easy to create conspiracy theories in small and opaque markets where facts are not easily attainable.
Okay, answer a straightforward question. If Germany wants its gold back, why can't they get it back? What's the problem? >>
Germany does not want its gold back and never did.
Knowledge is the enemy of fear
<< <i>
<< <i>This story has been a farce since it began, contrived by sellers to feed upon the emotions of the buyers. It is easy to create conspiracy theories in small and opaque markets where facts are not easily attainable.
Okay, answer a straightforward question. If Germany wants its gold back, why can't they get it back? What's the problem? >>
Germany does not want its gold back and never did. >>
I wanted a new Jaguar until I realized I couldn't have it.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
They say "bonkers".
True - "Germany" doesn't want it back, but a segment of their population does. And this doesn't negate the fact that Bundesbank actually did ask for a significant part of their gold back. They did ask.
What's your point in denying this? It's not a difficult thing to do an audit, and it seems that everyone connected with the banking system or the financial system treats the idea of an audit like it is radioactive.
I knew it would happen.
<< <i>Germany does not want its gold back and never did.
True - "Germany" doesn't want it back, but a segment of their population does. And this doesn't negate the fact that Bundesbank actually did ask for a significant part of their gold back. They did ask.
What's your point in denying this? It's not a difficult thing to do an audit, and it seems that everyone connected with the banking system or the financial system treats the idea of an audit like it is radioactive. >>
The problem with audits is all modern accounting is basically fraud.
A highly publicized audit process could expose that fact to "Heinrich sechs - packen"
<< <i>We say "bankers"
They say "bonkers". >>
I thought it was "boinkers"
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>1) The Fed does not control German gold in the USA. It's being held by the New York Federal Reserve Bank in their vault at no charge.
This statement seems to contradict itself. Now we're supposed to think that the NY Federal Reserve Bank isn't the main Fed facility? duh.
"Now we're supposed to think that the NY Federal Reserve Bank isn't the main Fed facility?" Correct, in this capacity the NY Fed is acting alone.
2) If they want to move it there will be transportation fees.
Why would that even be an issue? The German's may have decided it was too expensive to repatriate their gold due to the cost of secure shipping of such a large amount of gold.
3) The gold is all there, they have separate storage areas for each country/group who has gold stored at the NY Fed, and thus they can perform physical audits if so desired.
Apparently not.
Apparently not.
I believe there may have been some issues, but I have seen non-Fed workers checking their gold in the vault; it looked like they were having fun playing with the bars.
I don't see what the big deal is and why people keep blowing smoke about it. Nobody gets to conduct an audit. Why the charade? >>
in this capacity the NY Fed is acting alone
The German's may have decided it was too expensive to repatriate their gold due to the cost of secure shipping of such a large amount of gold.
I believe there may have been some issues, but I have seen non-Fed workers checking their gold in the vault; it looked like they were having fun playing with the bars.
I knew it would happen.
"You can have your gold back, but right now its in 'the system.'
The system is like the national health care system. Either you're in the system, or you're screwed.
Still want it back? Are you really sure that is what you want to do?
Actually one can't believe Germany would be blind as to what goes on in the world before any
of this came about. Some kind of posturing over something or other or to save face.
Makes me wonder what the downside of owning gold directly over the next couple of decades will bring...
of this came about. Some kind of posturing over something or other or to save face.
Makes me wonder what the downside of owning gold directly over the next couple of decades will bring...
That's a very excellent point. Nobody promised that gold wouldn't be banned for personal use, even if the gov.coms of the world decide to use it as a currency reserve asset, like the IMF has already recommended.
Sovereign default risk = the best reason for owning gold, and no guarantees are attached.
Inflation hedge, Hyperinflation hedge, Deflation hedge = in the world of imaginary electronic money, it's anybody's guess what function or status gold will have at any given moment.
I knew it would happen.
<< <i>Fantasy Land ------------>
in this capacity the NY Fed is acting alone
The German's may have decided it was too expensive to repatriate their gold due to the cost of secure shipping of such a large amount of gold.
I believe there may have been some issues, but I have seen non-Fed workers checking their gold in the vault; it looked like they were having fun playing with the bars. >>
France once showed up in New York harbor with a battleship to transport their gold back home.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Knowledge is the enemy of fear
the fed insists in their frequent reports the fort knox gold is pledged as collateral for frns.
I knew it would happen.
<< <i>I especially love the explanation that it would be "too expensive" to move any gold anywhere. >>
Agreed, thats ridiculous....just like the entire story from the beginning. Radical PM bulls are being played like a fiddle.
Knowledge is the enemy of fear
http://www.whatdoesitmean.com/index1475.htm
Yup, the simplest explanation is that all the gold is gone. Thats leaves only silver to be a viable precious metal. Yes, yes, thats it!!! Silver will again be the metal of Kings. Silver will return to its righteous stature. And since present day Kings prefer gold leaving only peasants to own silver, those peasants will be able to overtake the Kings. To rule the World. To return to harmony and order. To punish the Kings for their corruption. Yes, yes, yes!!!!
Viva la SILVER!!!!!!
Knowledge is the enemy of fear
So one must also carefully weigh the odds in using and counting on any 'system' to endure long enough to get your value back, before someone else gets yours or its foundation crumbles. A repository or any other wealth holders 'internals' seem like 'ripe picking' to me now even if outwardly appearing solvent in their marketplace.
One must expand ones mindset to not only be savy in investment methodology, but also in the sense of validity of 'repository' over time, with nothing guaranteed 100%, including holding directly. Just because an annual report may be big and fat, doesn't mean its all really there. Just because you have pillow full of cash doesn't mean it will be that full when you try to spend it. And just because you have PMs in stored or in hand, doesn't mean you have guaranteed value when the time comes.
These are valuable "George Carlin" lessons to me. One must not only be aware of the juggling act going on but also be able to play the game. Security of anything may only be as relative as that of the life of fiat currency.