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It Will Take The Fed Seven Years To Deliver 300 Tons Of German Gold
ZeroHedge.com ^ | 1-16-2013 | Tyler Durden

Posted on 01/17/2013 1:30:40 PM PST by Renfield

....The biggest news of the day comes from the official Buba announcement that, in its official capacity as a prudent central bank, it - as first of many - is looking to repatriate some 300 tons of gold from the New York Fed. That, however, is not today's news - that was Monday's news.

What is news is that courtesy of the supplied calendar of events in the Buba statement, it will take the Fed some seven years to procure Germany's 300 tons of gold. This is the same Fed that, in its own words, holds some "216 million troy ounces of gold" or some 6720 tons, in its vault 80 feet below ground level.

Putting the above in perspective, the amount of gold that Germany will have to wait 7 years for is shown in red. The amount of gold the Fed supposedly holds, is shown in yellow with a shade of tungsten. Why it will take the Fed 7 years to part with an amount of gold that is less than 5% of its total holdings is anyone's guess...

unless of course, the bulk of the gold in the column on the right has been rehypothecated numerous times to serve as collateral for countless counterparties, and it is no longer clear just who own what to anyone.

* * *

We can only wonder how many centuries it will take the New York Fed to deliver all the gold held by third parties in its vault, once the demand notices start rushing in...

For all those curious how the Fed itself describes the gold vault and its contents, can read more in the pamphet below:

 


TOPICS: Business/Economy; Conspiracy
KEYWORDS: europeanunion; fed; fraud; germany; gold; goldbugs

1 posted on 01/17/2013 1:30:47 PM PST by Renfield
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To: Renfield

There nothing like Gold derivatives.


2 posted on 01/17/2013 1:34:16 PM PST by Paladin2
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To: All

Link to the pamphlet mentioned above:

http://www.scribd.com/fullscreen/79237637?access_key=key-1sdp3zeh9so95s83so9e


3 posted on 01/17/2013 1:35:24 PM PST by Renfield (Turning apples into venison since 1999!)
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To: Renfield
"...unless of course, the bulk of the gold in the column on the right has been rehypothecated numerous times to serve as collateral for countless counterparties"

Thanks for posting. A friend told me about this at about 10:30AM this morning...I hadn't heard a thing about it.

Rehypothecated

"Rehypothecation is a practice that occurs principally in the financial markets, where a bank or other broker-dealer reuses the collateral pledged by its clients as collateral for its own borrowing."

Doesn't this mean that they don't have the Geman gold?

4 posted on 01/17/2013 1:38:13 PM PST by blam
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To: Renfield

Translation: It will take the fed 5 years to electroplate all those tungsten bricks with gold leaf and then 2 more years to actually move it .


5 posted on 01/17/2013 1:38:47 PM PST by GraceG
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To: Renfield

So, unless your gold is in your direct physical possession, you don’t actually have any gold.


6 posted on 01/17/2013 1:41:37 PM PST by marron
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To: Renfield

I wonder what the Germans think about this?


7 posted on 01/17/2013 1:43:29 PM PST by Rusty0604
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To: Renfield

Their gold and ours is long gone.


8 posted on 01/17/2013 1:47:15 PM PST by 3Fingas (Sons and Daughters of Freedom, Committee of Correspondence)
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To: marron
So, unless your gold is in your direct physical possession, you don’t actually have any gold.

Correct, IMO.

And obvious to anybody who has actually thought the matter through.

9 posted on 01/17/2013 1:47:45 PM PST by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
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To: Renfield

It’s not there. They’re using the seven years to push the swindle into the next president’s term.


10 posted on 01/17/2013 1:48:50 PM PST by Born to Conserve
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To: blam

From what we know so far, it appears that the FED not only doesn’t have the German gold, it also doesn’t have the Greek gold, the Irish gold, the Venezuelan gold, the Brazilian gold, etc. A bunch of nations are now clamoring for repatriation of their gold, and the FED is telling them all to get lost. Meanwhile, China is buying up all the gold it can find on the spot market, and Fort Knox hasn’t had an honest audit in my lifetime.

The real question here, is, “where is all of that gold?” What happened to it? The international banking families have put the gold somewhere...they didn’t just eat it. So where is it?


11 posted on 01/17/2013 1:49:29 PM PST by Renfield (Turning apples into venison since 1999!)
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To: GraceG

Should we brace ourselves for a run on the ‘gold bank’?


12 posted on 01/17/2013 1:50:36 PM PST by fhayek
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To: Renfield

What kind of country keeps their gold in the USA repo? Germany is leaving that club. Not sure they knew it would take so long, maybe they should ask for all of it. Smart countries want to know or actually, they (should) want to own, their gold, on their own soil. After all, the outlaws running USA may have misplaced it or may soon loose it.


13 posted on 01/17/2013 1:51:41 PM PST by veracious
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To: Renfield

“....in the meantime, here, have these scraps of paper.”


14 posted on 01/17/2013 1:53:49 PM PST by Sirius Lee (All that is required for evil to advance is for government to do "something")
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To: marron
So, unless your gold is in your direct physical possession, you don’t actually have any gold.

And the certificate representing ownership will be just as valueless as Federal Reserve Notes once the SHTF.

15 posted on 01/17/2013 1:55:31 PM PST by peyton randolph (FUBO and his wookie beard)
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To: Rusty0604
The Germans? Who cares about the Huns! I wonder what Ann's going to say about this?!! Paging Ann Barnhardt....paging Ann Barnhardt.... Break out the bubbly, woman!
16 posted on 01/17/2013 1:57:52 PM PST by bayouranger (The 1st victim of islam is the person who practices the lie.)
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To: fhayek
GOLDMAN: Gold Is Going To $1200
17 posted on 01/17/2013 1:57:53 PM PST by blam
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To: Renfield
Lol.

Fort Knox U.S. Gold Reserves to be Independently Audited and Assayed? Congressman Ron Paul Pressures

The Dutch Ask Their Central Bank: "Where Is Our Gold?"

Marc Faber: Don’t Store Your Gold In The United States

The Gold Standard Is Coming

18 posted on 01/17/2013 2:00:50 PM PST by Theoria
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To: Renfield

It’s simply not there.


19 posted on 01/17/2013 2:15:47 PM PST by Sam Gamgee (May God have mercy upon my enemies, because I won't. - Patton)
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To: Renfield
That's not what the article that is linked says.

It says Bundesbank is planning a phased relocation. It doesn't say the FED can't deliver if it was all requested tomorrow.

Just gold bugs trying to scare up some business.

"To this end, the Bundesbank is planning a phased relocation of 300 tonnes of gold from New York to Frankfurt as well as an additional 374 tonnes from Paris to Frankfurt by 2020.">

20 posted on 01/17/2013 2:16:38 PM PST by DannyTN
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To: Renfield

I think the key can be found in the New York Times article...

“At a packed news conference, Bundesbank officials attended by armed security guards demonstrated on Wednesday how they tested the bars for quality and authenticity. No two bars have exactly the same weight and purity, so each must be assessed separately.”

http://www.nytimes.com/2013/01/17/business/global/german-central-bank-to-repatriate-gold-reserves.html?_r=0

Every bar is gonna have to be weighed (VERY carefully) and tested for purity. That’s gonna take a while.


21 posted on 01/17/2013 2:21:45 PM PST by JoeDetweiler
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To: Renfield

in other wordsm “you can’t have it back!”


22 posted on 01/17/2013 2:31:09 PM PST by faithhopecharity
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To: JoeDetweiler

well, it could take awhile to get it down to the last couple of percent accuracy

but the Germans can test it “pretty close” by just using a bath tub and a high school student who has learned about Archimedes

I bet the Germans will be very happy to clear out their gold now that way (if it is there!)

PSW: Stealing another country’s gold (or just “not letting them have it when they want it”) is, of course, an open Act of War....


23 posted on 01/17/2013 2:36:30 PM PST by faithhopecharity
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To: Renfield
Aurc Goldfinger planned to move 1000 tons of gold out of Fort Knox in a few hours.

If you wamt a job done efficiently, a private contracter is the way to go.

24 posted on 01/17/2013 2:41:11 PM PST by Oztrich Boy (I think, therefore I am what I yam, and that's all I yam - Rene "Popeye" Descartes)
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To: DannyTN

Thank you for injecting some sanity into the thread.


25 posted on 01/17/2013 2:42:22 PM PST by Moltke ("I am Dr. Sonderborg," he said, "and I don't want any nonsense.")
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To: marron

Bingo, we have a winner. You only have a piece of paper that says you have gold .... and that piece of paper is only worth the paper it is written on. Possibly, they will need to call Corzine in as a consultant. With a straight face he can say “damn, where did all that gold get to?”.


26 posted on 01/17/2013 2:59:42 PM PST by RetiredTexasVet
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To: DannyTN

You and your stinkin’ facts can just ruin a really good conspiracy thread.


27 posted on 01/17/2013 3:04:33 PM PST by Mr. Lucky
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To: JoeDetweiler

Hahaha, stuff em with tungsten, sorta like what we did during the mortgage crisis by bundling crap with good stuff and stiffing Europe. We are good at dat!


28 posted on 01/17/2013 3:10:02 PM PST by SgtHooper (The last thing I want to do is hurt you. But it's still on the list.)
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To: faithhopecharity
"...but the Germans can test it “pretty close” by just using a bath tub and a high school student who has learned about Archimedes..."

Have that same high school student do a report on the mass per volume similarity of tungsten to gold.

Then have them compare the spot price of tungsten to the spot price of gold.

(Hint: Tungsten $20-21 per lb. Gold $26,928 per lb.)

Then have them do a report on whether a nefarious person/entity would walk away from an opportunity to get a roughly 120,000% return on an investment.

29 posted on 01/17/2013 3:17:05 PM PST by SnuffaBolshevik (In a tornado, even turkeys can fly.)
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To: Renfield

It seems like a lot of trouble to move all that gold.

Why don’t we just cut them a slice off Obama’s trillion dollar Platinum coin.


30 posted on 01/17/2013 3:21:03 PM PST by Venturer
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To: Oztrich Boy
Aurc Goldfinger planned to move 1000 tons of gold out of Fort Knox in a few hours.

I thought he just intended to nuke it and make it useless.
31 posted on 01/17/2013 3:27:32 PM PST by 762X51
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To: 762X51

No, no, no. You’re confusing that with President Obama’s plans for the Constitution.


32 posted on 01/17/2013 3:33:36 PM PST by Mr. Lucky
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To: DannyTN
The Germans originally wanted to get ALL of their gold back at once. The "phased relocation" plan is a result of their recognition that they can't get all of it at once, because it isn't there, and the FED has to buy gold on the open market to cover the short (and the Bundesbank is doing this to prevent ordinary Germans from asking too many pointed questions). 300 tons in seven years is the FED's optimistic projection of what it can buy without raising too much interest in the American public.

Things will really get interesting as other countries press more vigorously for the return of their gold.

33 posted on 01/17/2013 4:03:06 PM PST by Renfield (Turning apples into venison since 1999!)
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To: DannyTN; All
Here's another comment from ZeroHedge (1-16-2013)

Ben Bernanke and the rest of the US Federal Reserve bet the farm that they could engage in countless monetary interventions, keep interest rates at zero, and print over $2 trillion in new money without damaging the US’s credibility.

They were wrong. Indeed, Germany just fired a major warning shot to the US Federal Reserve.

On Monday, Germany announced that it will be moving a significant portion of its Gold reserves out of storage with the New York Fed and moving them back to Germany.

A few background details.

Why would Germany suddenly decide that it wants to change a policy it has had in place for over 30 years?

More importantly, how did it go from wanting to audit its reserves to actually removing them from the NY Fed’s care?

In simple terms, Germany has just announced that it doesn’t trust the US Fed.

The world’s Central Banks have been staging a global currency way for several years now. Germany, China, Japan, and the US all want to keep their currencies weak to improve exports and minimize their debt loads.

In the case of Germany, it’s the second largest exporter of goods in the world behind China. More than anyone in the EU, Germany wants a weak Euro. However, every time the Fed announces a new policy, the US Dollar falls, the Euro rallies and German exports fall off a cliff.

Germany is now openly telling the Fed that it is done playing around. This will have severe consequences in the financial system.

Remember, the only thing holding the financial system together is belief in the Central Banks. If the Central Banks (it was Germany’s Bundesbank that is behind the Gold move) stop trusting one another or grow openly antagonistic, then things will get very bad very quickly.

For months now we’ve been asserting that the “improvements” in the global economy and financial system were a mirage. Germany’s move has confirmed this. If the financial system was in fact safe and the global economy was improving, Germany would not feel the need to repatriate its Gold.

Which begs the question, what exactly do German Central Bankers know that we don’t?

34 posted on 01/17/2013 4:07:30 PM PST by Renfield (Turning apples into venison since 1999!)
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To: 762X51
From Buffy the Vampire Slayer

Willow: "What did you think, Buffy?"
Buffy: "Test isn't until tomorrow, right? I don't have an opinion till then."
Willow: "But you read it, right?"
Buffy: "Kind of not. I rented the movie."
Tara: "Oh, with Charles Laughton?"
Buffy: "I don't know. Was he one of the singing gargoyles?"
Willow: "Oh, boy."
Buffy: "I'm kidding!"

35 posted on 01/17/2013 4:39:50 PM PST by Oztrich Boy (I think, therefore I am what I yam, and that's all I yam - Rene "Popeye" Descartes)
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To: faithhopecharity

“but the Germans can test it “pretty close” by just using a bath tub and a high school student who has learned about Archimedes”

Nope. Tungsten is a fairly cheap metal that weighs almost exactly the same as gold. Testing it involves more than just measuring it’s specific gravity.


36 posted on 01/17/2013 4:42:39 PM PST by babygene ( .)
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To: Oztrich Boy

Book? Movie? Nuked or stolen, does it really matter as long as Pussy Galore is part of it? I didn’t think so.


37 posted on 01/17/2013 4:53:11 PM PST by 762X51
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To: babygene; SnuffaBolshevik

Thanks. (Stealing their gold. Would be a clear act of war-—?)


38 posted on 01/17/2013 5:12:02 PM PST by faithhopecharity
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To: Renfield
"The Germans originally wanted to get ALL of their gold back at once"

Source?

Why are they using a phased approach to draw down the gold they have stored in Paris too?

39 posted on 01/17/2013 6:26:08 PM PST by DannyTN
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To: Renfield

ZeroHedge has been claiming the sky is falling for as long as I remember.


40 posted on 01/17/2013 6:30:18 PM PST by DannyTN
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