Another sign the US dollar is in trouble: Germany is demanding the Bank of NY which is a Federal Reserve entity, hand over half of the gold it has held for Germany since WWII. Germany is, along with China, one of the few major countries with sovereign wealth and it is as of today, #1. Not Japan nor China, it is Germany. The Germans are still hitched to the euro but they fear it is doomed at this point in time so are quietly preparing the ground for the possibility their fellow sovereign wealth holders might switch suddenly to the gold standard which ruled international trade for hundreds of years, with one empire after another wearing the Gold Trade Crown and then giving it up through bankruptcy and war.
Here are the supposed facts about the gold hoard held in NYC: The Federal Reserve Bank of New
As early as 2008, the Fed’s vault contained roughly 216 million troy ounces of gold valued at over 281 billion dollars at today’s price of gold. Each gold bar weighs 27.4 pounds and is valued at $520,000 at $1300 an ounce. Ninety- five percent of the gold stored at the federal reserve is foreign-owned with the United States owning only 5%. U.S. gold reserves are stored at Fort Knox, Kentucky, and elsewhere but the New York Fed has double the amount stored in Kentucky.
If this news here is what is going to happen, I expect all this gold to be called for by the owners: Germany to bring home some of its gold reserves – The Washington Post
The decision caps a discussion in which top German policymakers questioned whether they could believe the New York Federal Reserve’s promises that it had 122,597 bars of high-quality German bullion in its basement. Some German lawmakers had said they wanted to bring home the entire reserve, arguing that in a time of instability and fears over the future of Europe’s shared euro currency, keeping all the treasure locked up in German vaults would be prudent.
Germany is demanding $35 billion in gold ingots to be handed over after being tested for purity. The recent examination of the gold hoard in London showed lots of fraud with all sorts of metals mixed in with the gold.
And the central bank president periodically takes German lawmakers into his own vaults to assure them that the country’s domestic stash is safe and sound.
Thiele said the German central bank planned to leave half of its gold parked abroad so that it would be available as collateral if Germany needed to buy large amounts of foreign cash on short notice – a step it would typically take only in case of a crisis with its own currency. Then he showed a crowd of reporters some bars of gold, along with the tools used to check their purity.
So, gold is meaningless unless there is a crisis. HAHAHA. All the people who pretended gold was some foolish thing of the past obviously don’t understand the basis of ‘money’ which has been, for the most part, gold. That is the gold standard for currencies which has been artfully abandoned recently but only so that countries ravaged by WWII and revolutions could recover via trade mainly with the US and mainly with the US running deficits with defeated nations or countries which flirted with no-currency of value lifestyles.
The Germans are getting nervous. They will keep some of their hoard in the US so they can use it as collateral to buy (GUESS WHAT???) dollars if there is some ‘currency problem’ which translates as ‘the euro is too STRONG and exports are a problem’ more than anything. Europe doesn’t want a strong euro, their entire problem these days is, like with Japan, the weak dollar. Neither Europe nor Japan can buy up enough dollars to make their currencies weak enough to flood the US with their exports.
Here is a previous article about the NYC gold hoard the Fed holds: The Fed’s Gold Problem Is Now International
By Adam English
Wednesday, November 7th, 2012
Philipp Missfelder, a leading lawmaker from Chancellor Angela Merkel’s center-right party, has asked the Bundesbank for the right to view the gold bars in Paris and London, but the central bank has denied the request, citing the lack of visitor rooms in those facilities.”
Fellow EU members haven’t forgotten WWII. Nor have they forgotten how they all tried to hoard gold after the US began selling Fort Knox gold during the Vietnam war. And despite agreeing with US economists that gold is stupid, they know in their bones, in their history, that is a lie. So they pretend to be disinterested while being very angry the Germans want to take more control over the gold they are supposedly holding for Germany.
Germans should understand, these countries will not hand over this gold if there is any crisis in the floating fiat currency scheme. We are in a crisis, a slow moving but eventually destructive cyclic crisis with all industrial nation traders desperate to downgrade their currencies.
The Germans are about to encounter the same refusal in the United States. The Fed is stonewalling the Germans and refusing to let them even see their gold stores.
Previous and repeated requests were only partially addressed. Bundesbank staff members were allowed to see the facility in 2007, but they reportedly only made it to the anteroom of the German reserves.
Bundesbank auditors made a second visit in May 2011 in which one of the nine compartments used to store Germany’s gold was opened — and only a few bars were pulled out and weighed. And the details of this minuscule inspection were blacked out in a German auditor’s report “out of consideration for the Federal Reserve Bank of New York.”
It would not surprise me to learn there is no gold for Germany. Even asking for half has caused a row. I suspect the Germans aren’t asking for all the gold is due to spooking the US so they are easing their way forwards. They know you don’t need gold bars in NYC in order to buy up currencies! Good lord, look at the trillions the Fed and Bank of England conjured out of thin air when Europe’s banks began to fall apart four years ago. Germany’s gold didn’t save the euro. Germany’s CREDIT did this.
No, the Germans don’t want to panic the Americans right now but are getting very queasy watching Congress flirt with bankruptcy just to make political points. And they should be scared.
Meanwhile, Japan prints yen like crazy but since they, too, run trade deficits, this doesn’t work to make the dollar weaker. Shares lose 2.56% as yen surges ‹ Japan Today: Japan News and Discussion
In forex markets, the dollar slipped to 88.07 yen against 88.80 in New York Tuesday afternoon, while the euro fetched 117.00 yen against 118.14 in U.S. trading.
Easy to understand: the US is printing dollars faster than Japan. And China as well as the oil pumping nations selling to Japan are holding more yen, too. And then there is Iran: to buy oil from them, you have to use gold. Ah, yes, as I said from day one, forcing Iran out of the world’s banking system is forcing them to become a gold-fianced trader using a gold standard, ipso facto. While the US buys oil with money we print and which is not backed by gold. How odd this all is, a retrograde movement in currencies triggered by US imperialist demands on Iran!
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