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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28 responses to “Sovereign Wealthy Germany Wants Half Its Gold Back From Federal Reserve Vaults In NYC”
Meltdown [and I do not mean gold bars].
So Germany fears rats are nibbling at their hoard and are looking to their own house. Britain and France are reviving their colonialism out of pure desperation. The US is slowly going insane like a syphilitic emperor of old, each pyrrhic victory driving it more schizophrenic. Interesting times we live in.
I watched Ron Paul ask Ben Bernanke…Is gold money?There was a pause of several seconds and a deer in the headlights look,then Ben said no.
If he doesn’t think gold is money what the hell are they hanging unto it for then?
Our foolish government up here in the great white north sold all our gold in the ’90’s.
“Mr. Gold”, Jim Sinclair, has attributed this extraordinary public airing of Germany’s ongoing inability to get its gold back, or even get it independently audited, to a “parting shot” by Geithner — a suspected operation of the US Exchange Stabilization Fund. More at http://www.jsmineset.com/author/jimsinclair/
The Washington Post tries to make it sound like the German request is strange. It says Germans are really emotional about their gold reserves; they were raised on a legend about Faust; a recent report has them all in a tizzy… Who’s buying that, I wonder? The Germans want their gold back because they’re crazy… hmm.
Yes, isn’t this all hilarious? As I pointed out, you don’t need gold to get currencies in an emergency that threatens ‘banking’ because this is fixed via central banks printing magic money.
The Germans are very spooked by the PIIGS in the EU which have made it clear, it is the fault of the Germans saving money rather than wild spending by them, causing the crash.
The Germans remember 1924 still.
So by 2020 the germans want half of their gold reserves on in Germany. Right now only 31% of their reserves are in germany. 19% more will be repatriated from France and USA by 2020. http://www.zeit.de/wirtschaft/2013-01/bundesbank-goldreserven-deutschland
Well, I think also that the GOP chose now to scream “default” because this is when most Americans receive a tax refund, which they will not receive if there is a default. The rich don’t get refunds (mostly). They just don’t pay taxes on their hidden money piles and complicated schemes. The GOP is holding the poor and middle class hostage, and this tells me that they have thrown in the towel regarding anyone who is not on their donor list.
“Those who rely on government programs, such as Social Security recipients, veterans, and the poor, would be cut off from receiving aid and government employees would not be able to work.”
That right there is a list of people the GOP wants eliminated. It is somewhere between 200 and 250 million Americans, I think. Actually, it includes just about everyone who is not a member of the top 1 percent.
Virtue builds civilizations. Greed destroys them. There will be no more barn raisings in America. The rich loathe them.
That is the 47% Romney sneered about when begging for money from some rich bastards in Florida. People with resources can endure a shut down. The poor can’t.
Meanwhile, the GOP destroyed the BATF so it barely functions now and is toothless and criminals and crazy people can access firearms but also so can a huge number of people who will discover they need the government to stay alive.
This is beyond foolish of the rich who seem to have learned nothing from previous revolts in history.
I was going to say that while there may not be many lampposts above ground anymore, the peasants can find adequate substitutes for the rich and their servants in Congress and Wall Street.
While I have my doubts about a revolt from overweight and lazy people, these same people no longer need to carry spears or swords. An AR is very easy to carry and use. Requires very little strength or skill. Most of the men I see at the rifle range are extremely overweight, but very good marksmen and they know how to fix their own weapons.
It doesn’t have to be a ‘revolt’ as such. A General Strike and some organization can go a long way… But the US being the US I don’t think it will happen for some reason.
So which is your weapon of choice at the rifle range?
So the rotten Nazis don’t want their gold in grubby Jewish hands anymore? How anti-semitic of them!
I have a Ruger 10/22 carbine for my son and also a Ruger 10/22 60th Anniversary pistol for him also (a special gift). He uses those. I clean them.
I use an old Mauser with a long-eye relief scope, but my favorite rifles are my Kentucky flintlock and Hawken style flintlock rifles. Muzzleloaders. I think I can get off one shot every 30 seconds if I hurry and don’t have problems with humidity gumming up the vent hole and main charge.
In the event of a revolt, I just plan to pick up an AR from a dead body.
The currency wars just got real.
First version of the story I heard was from Handelsblatt, and just said that BuBa wanted their gold back. Didn’t say anything about ‘half’. … probably more than half doesn’t even exist.
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The German repatriation of gold over a decade is a farce.
I want my gold in the here and now. And not 10 years from now.
I find it a little bit amusing. Clearly a face saving device to give the US and France enough time to gather some real gold to send to Germany.
Does anybody know if this has went ahead now? and how did it effect the dollar? I can see the US dollar really struggling in the near future. Personally I prefer owning gold to money in the bank. Gold has dropped sightly as can be seen on this ( site it is now only $1246 per Troy ounce.
The dollar is the strongest international currency right now since the EU and Japan are both deliberately weakening their currency for export purposes.
Gold bugs, the ones who check the reported inventories every day, have noted that some 400 tons of gold have been withdrawn from the GLD fund YTD. From 1349.92 to 946.96 tons.
Hard to say where it went; the financial MOTU are remarkably sneaky when it comes to gold. One theory is that it has gone to Germany, and another is that it has gone to China.
These same gold bugs think the price should bounce now, or some time soon, but then they have been thinking that for quite a long time. I sure have no idea what the market will do. It’s mostly traded on paper contracts without any actual inventory changing hands. (the 400 tons being an obvious exception)
I warned the gold bugs that the main engine driving gold (the real stuff, not the paper gold which is no different from paper money) is INDIA not the US. And India saw the rupee drop like a rock against the dollar so gold is flat or falling when seen as dollars but is still going up…in rupees.
This simple concept irritates gold bugs no end. So they never learn how to play the commodities/floating fiat currency games.
Also noteworthy about India, their government has been upping the tariffs and taxes on gold to discourage Indians from buying it.
In most every part of Asia, people have a long memory of paper money, and if they have a little extra money they get some gold jewelry or coins. Of course the Indian government wants to debase the rupee but does not want middle class Indians to abandon the rupee. So you have this tension. And, I agree totally: Indians are not interested in the paper markets. Not even the $US so much any more … it’s still the strongest currency but for how long.
This simple concept irritates gold bugs no end. So they never learn how to play the commodities/floating fiat currency games….Please do a column on this. My neighbor was robbed by ‘EMF Global’, he gets up before dawn to speculate in futures.
Elaine, I found this elsewhere and would like yr OP.
A] gold is actually a market largely controlled by the women of india.
they are the biggest consumers of gold, and hold reserves far greater than any nation on earth.
B] these days jewelry only takes about half the gold production at best, tech is taking more than 10 percent these days (and growing) and the rest is investment, as far as Jewelry demand goes, China pretty much matches India lately.
Indian and Chinese gold imports are taxed at a fairly high rate. Most Chinese are more interested in land/property.