Dear Germany, We're Very, Very Sorrry.....
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? Well, it
seems many nations are falling for this simple, yet effective scam, as I
outlined in my post: Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity.”
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.
“Right now, our campaign is on hold,” Peter
Boehringer, a Munich-based euro critic who co-founded an initiative to
bring home all of Germany’s gold in 2012, said in an interview.
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