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Germany Gives Up On Trying To Repatriate Its Gold, Will Leave It In The Fed's "Safe Hands"
Zerohedge ^ | 06/23/2014 | Tyler Durden

Posted on 06/23/2014 8:11:03 PM PDT by Rusty0604

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.

Right now and forever. Sorry suckers. This guy promises everything is just fine:


TOPICS: Business/Economy
KEYWORDS:

1 posted on 06/23/2014 8:11:03 PM PDT by Rusty0604
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To: Rusty0604

So we stole their gold?


2 posted on 06/23/2014 8:14:03 PM PDT by Dagnabitt (Amnesty is Treason. Its agents are Traitors.)
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To: Rusty0604

That’s what happens when you don’t acquire nuclear weapons.


3 posted on 06/23/2014 8:15:04 PM PDT by 2ndDivisionVet (The most dangerous man to any government is the man who is able to think things out for himself.)
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To: Dagnabitt

The vaults are probably empty


4 posted on 06/23/2014 8:15:47 PM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: Rusty0604

What would the Fed say if it was asked to buy the German gold?

Sell the German gold to the Fed and buy it back on the open market.


5 posted on 06/23/2014 8:18:56 PM PDT by InterceptPoint
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To: Dagnabitt

It’s just not there immediately.


6 posted on 06/23/2014 8:20:42 PM PDT by Rusty0604
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To: GeronL

No, they aren’t empty. However, there are so many hands on each brick that it may as well be.


7 posted on 06/23/2014 8:20:57 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: Rusty0604
“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.”

I laughed when I read this.

8 posted on 06/23/2014 8:22:31 PM PDT by uncommonsense (Liberals see what they believe; Conservatives believe what they see.)
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To: uncommonsense

It is funny.


9 posted on 06/23/2014 8:24:12 PM PDT by Rusty0604
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To: Rusty0604

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.”

Never believe anything until its been officially denied.


10 posted on 06/23/2014 8:25:24 PM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: Lurker

Does the US have any gold stored anywhere.?


11 posted on 06/23/2014 8:29:29 PM PDT by Big Horn (Rebuild the GOP to a conservative party)
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To: Rusty0604

The fact that there is no gold was almost discovered in the aftermath of 9/11. Fortunately, GWB swooped in with his US treasury agents to prevent that from happening.


12 posted on 06/23/2014 8:29:41 PM PDT by oblomov
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To: Dagnabitt

Not stolen, really...can you just wait a few minutes while we warm up the printing presses. Did you want that in bundles of $100.00 or $1000.00? sigh


13 posted on 06/23/2014 8:30:55 PM PDT by PatrioticRose
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To: uncommonsense

P. T. Barnum was right.


14 posted on 06/23/2014 8:32:43 PM PDT by Ray76 (True change requires true change - A Second Party ...or else it's more of the same...)
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To: PatrioticRose

People don’t understand that we are no longer “rich”.


15 posted on 06/23/2014 8:34:13 PM PDT by Rusty0604
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To: 2ndDivisionVet

Its what happens when people stupidly elect lesser evils thinking it stays that way.


16 posted on 06/23/2014 8:35:39 PM PDT by Norm Lenhart (How's that 'lesser evil' workin' out for ya?)
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To: Big Horn; Lurker

Nowhere you’ve ever heard of and “not to your knowledge, peasant.”


17 posted on 06/23/2014 8:36:07 PM PDT by 2ndDivisionVet (The most dangerous man to any government is the man who is able to think things out for himself.)
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To: Rusty0604

ok - I find this interesting.

“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.”

This kind of statement makes me think of just the opposite.

They must now be aware that their gold does not exist, and that this statement needs to be made to give warm fuzzies about the world economy and the US in general.

I just have a hard time believing their worded statement.


18 posted on 06/23/2014 8:36:48 PM PDT by ForYourChildren (Christian Education [ RomanRoadsMedia.com - a classical Christian approach to homeschool])
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To: Rusty0604

So is this ZeroHedge telling all the people who went long gold based on ZeroHedges fantasies that they are screwed?


19 posted on 06/23/2014 8:38:44 PM PDT by DannyTN
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To: Dagnabitt

And we no longer have it. Germany would have better luck finding gold bullion in the camps of ISIS.


20 posted on 06/23/2014 8:41:29 PM PDT by Viennacon
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To: uncommonsense

What have they got on this guy? Geez.


21 posted on 06/23/2014 8:44:12 PM PDT by Jane Long ("And when thou saidst, Seek ye my face; my heart said unto thee, Thy face, LORD, will I seek")
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To: DannyTN

I seriously doubt it.


22 posted on 06/23/2014 8:44:37 PM PDT by Rusty0604
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To: Rusty0604
The Federal Reserve bank of NY claims to be sitting on 5700 tons of gold as of 2012.

In the attached audited financial statements, the NY Federal Reserve Bank made over $45 Billion last year and remitted that to the Treasury. If they needed funds to buy back gold, it's not like they couldn't do it from income.

23 posted on 06/23/2014 8:56:58 PM PDT by DannyTN
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To: DannyTN

Wouldn’t it be the opposite?

With that much bullion ‘missing’ or hypothecated multiple times, it would seem to be bullish for gold.


24 posted on 06/23/2014 9:06:00 PM PDT by MichaelCorleone (Jesus Christ is not a religion. He's the Truth.)
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To: MichaelCorleone

Well IF the gold is missing despite both the FED and Bundesbank saying it is not, and IF Bundesbank was demanding it back, that would be bullish for gold, which is what ZeroHedge has been claiming for years.

BUT now Bundesbank isn’t demanding it back, so there is no bullishness. It no longer matters whether it’s missing or not, which it probably isn’t, because Bundesbank is happy leaving it here. No additional demand for gold.

I suspect the Russian’s aggression has influenced the decision to leave it here. But Bundesbank was never gung ho to bring it all back home anyway. They were moving slowly anyway. Which was prudent even if it fed the conspiracy hacks.


25 posted on 06/23/2014 9:13:36 PM PDT by DannyTN
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To: Rusty0604

Germany just learned about the golden rule.


26 posted on 06/23/2014 9:15:06 PM PDT by RC one (Militarized law enforcement is just a nice way of saying martial law enforcement. xtr)
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To: Rusty0604
“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.”

In past ages the guy would have been saying something like that because he had some sort of a plan.

27 posted on 06/23/2014 9:37:11 PM PDT by aardwolf46
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To: GeronL

Tungsten has its uses.


28 posted on 06/23/2014 9:37:11 PM PDT by Sparklite
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To: Sparklite

lol


29 posted on 06/23/2014 9:38:06 PM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: DannyTN
How about if it was learned or strongly suspected that there are several, if not scores, of claims on Germany's gold?

Would that change the market psychology at all?

I am not long gold, btw, nor do I own any bullion.

30 posted on 06/23/2014 9:55:46 PM PDT by MichaelCorleone (Jesus Christ is not a religion. He's the Truth.)
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To: GeronL

I think you may be right.


31 posted on 06/23/2014 9:57:00 PM PDT by antceecee (Bless us Lord, forgive us our sins and bring us to everlasting life.)
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To: Rusty0604

“Pa, I got the gold right here pa!”....

“There ain’t no gold”....

BLAM! BLAM! BLAM!

“Whooped em again Josey”

“Yeah, whooped em again kid”


32 posted on 06/23/2014 11:01:02 PM PDT by Carthego delenda est
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To: MichaelCorleone

There is a big difference between learned and strongly suspected, especially when it’s gold bugs doing the suspecting.

The claims would have to be answerable in gold. If the claims can’t demand the metal itself, then I don’t see why it would affect market psychology at all.


33 posted on 06/23/2014 11:49:26 PM PDT by DannyTN
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To: 2ndDivisionVet

The NSA must have good stuff on Angela for her to give up her gold....


34 posted on 06/24/2014 12:26:21 AM PDT by x_plus_one (the universe is not secular - the enemy is at the gate - islam delenda est)
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To: Rusty0604

Don’t worry Germans. There is an IOU signed by Obama with a golf scorecard pencil


35 posted on 06/24/2014 12:28:17 AM PDT by Organic Panic
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To: Rusty0604
More evidence that there is NO GOLD! It been sold so many times that if the truth ever got out there would be a world wide banking crisis.
36 posted on 06/24/2014 4:53:11 AM PDT by 2001convSVT (Going Galt as fast as I can.)
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To: Rusty0604; COUNTrecount; Nowhere Man; FightThePower!; C. Edmund Wright; jacob allen; ...

hmmm... two in a row with the same graphic...

Nut-job Conspiracy Theory Ping!

To get onto The Nut-job Conspiracy Theory Ping List you must threaten to report me to the Mods if I don't add you to the list...

37 posted on 06/24/2014 6:09:30 AM PDT by null and void (In this war, the front line is at your front door...)
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To: Rusty0604; null and void

Much like the subprime market where debt was assigned a value that wasn’t there and resold multiple times, gold has been speculated and resold without physically being there.
Where it really is now, only those who have it know.


38 posted on 06/24/2014 6:22:26 AM PDT by Darksheare (Try my coffee, first one's free..... Even robots will kill for it!)
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To: Dagnabitt

Yep.... it’s gone.

“You ain’t gettin’ it ‘cuz we ain’t got it and we’re the USA and you’re Germany and there ain’t nothing you can do about it except accept our IOU.”


39 posted on 06/24/2014 6:23:31 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: Rusty0604

Looks like the practice of fractional reserve banking is being applied to physical gold stores, as well.


40 posted on 06/24/2014 6:42:31 AM PDT by Disambiguator (#cornedbeef)
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To: Disambiguator

Yes it has.


41 posted on 06/24/2014 7:10:11 AM PDT by Rusty0604
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To: null and void

“two in a row....” now that’s a conspiracy


42 posted on 06/24/2014 8:48:54 AM PDT by Nifster
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To: Rusty0604

the American people need to start using some of these excuses when the fedgov comes knocking

need records? sorry, drive crashed and we burned the originals

want money? sure... in 10 years, during which we’ll give you 5%


43 posted on 06/24/2014 6:51:42 PM PDT by sten (fighting tyranny never goes out of style)
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