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FLASH: German gold report reveals secret sales that likely were part of swaps

lemetropole's picture




 

Dear Friend of GATA and Gold:

With the Associated Press report appended here, the German gold audit story has just exploded into the English-language press with some important revelations:

-- The gold vaulted by the German central bank, the Bundesbank, with the Bank of England "has fallen 'below 500 tons' due to recent sales and repatriations. ..." So despite the lack of official announcement, Germany lately has been selling gold from London -- perhaps as part of the secret "strategic activities" grudgingly acknowledged two years ago by the Bundesbank to GATA's friend, the German financial journalist Lars Schall:

http://www.gata.org/node/9363

The lack of announcement of the sale of the German gold in London suggests that the sale was actually part of a gold swap with another central bank -- like the New York Fed. That is, the powerful implication here is that German gold in London was sold at the behest of the United States and in exchange Germany took title to United States gold vaulted in the United States -- or title to gold supposedly vaulted in the United States. This way the Bundesbank could continue to claim ownership of the same amount of gold without lying, at least not technically.

As for the Federal Reserve and the U.S. Treasury Department, when you rig every market you can't worry so much about lying.

Of course such gold swaps were the target of GATA's federal freedom-of-information lawsuit against the Federal Reserve in U.S. District Court for the District of Columbia, a lawsuit concluded somewhat successfully last year, having pried from the Fed an admission that it has secret gold swap arrangements with foreign banks:

http://www.gata.org/node/9917

-- The Bundesbank is resisting accountability and has censored part of the auditors' report in the name of protecting secrets of the central banks storing the German gold. But why should there be any secrets about it? Nobody's asking for the combination numbers to the vaults, and the combination wouldn't do anyone any good anyway, as the vaults are guarded. Do these secrets involve gold loans and leases and other legerdemain? That seems to be the case.

-- The campaign to repatriate the German gold has gotten noticed in a big way.

-- The Bundesbank has been officially reprimanded by another German government agency for negligence in its custodianship of the national gold.

-- The Bundesbank won't let German parliament members inspect the German gold vaulted abroad because the central bank vaulting facilities supposedly lack "visiting rooms." And yet one of those vaults, the Federal Reserve Bank of New York, offers the public tours that include "an exclusive visit to the gold vault" -- provided, apparently, that you're not an elected representative of the German people:

http://www.newyorkfed.org/aboutthefed/visiting.html#tabs-1

GATA has made further informational requests of the Federal Reserve, Treasury Department, and State Department involving their gold records:

http://www.gata.org/node/11606

Since those agencies have failed to respond, GATA now is entitled to bring more freedom-of-information lawsuits against them. But we can't do that without sufficient financing.

The auditors' report about the German gold demonstrates that the Western central bank gold price suppression scheme -- part of a vast scheme of rigging all major markets -- can be exposed and defeated by persistent clamor and demands for information. If you haven't already considered helping us financially, please do so now:

http://www.gata.org/node/16

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Unease about Germany's unchecked gold reserves

By The Associated Press
via Boston Globe
Monday, October 22, 2012

http://www.boston.com/news/world/europe/2012/10/22/german-auditors-urge-...

BERLIN -- Germany's central bank has failed to properly oversee the country's massive gold reserves, which have been stored abroad since the Cold War in case of a Soviet invasion, independent auditors say.

The central bank must renegotiate its contracts to gain the right to inspect its gold bars, which are worth tens of billions of dollars and are stored in the United States, Britain, and France, the Federal Auditors Office said in a report to lawmakers obtained by The Associated Press on Monday.

The report says the gold bars "have never been physically checked by the Bundesbank itself or other independent auditors regarding their authenticity or weight." Instead, the Bundesbank relies on a "written confirmations by the storage sites."

Most of Germany's gold reserves -- some 3,400 tons worth an estimated $190 billion at current rates -- have been kept in the vaults of the U.S. Federal Reserve, the Bank of France, and the Bank of England since the postwar days, when Berlin worried about a possible land war with the Soviet bloc.

The auditors maintain that the central bank must be able to at least inspect samples of its gold bars at regular intervals to verify their book value.

The report acknowledges that such inspections might be logistically complicated, but it stresses that "this cannot discharge [the bank] from the necessity to carry out an inventory."

The central bank said in a reaction to the report that was also sent to lawmakers Monday that it sees no reason for a physical inspection of the bars. "There is no doubt about the integrity of the foreign storage sites in this regard," it stated.

The debate on most of the gold reserves being held by foreign authorities has caused some inevitable conspiracy theories questioning their very existence, but several German politicians have also voiced unease.

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, German daily Bild reported.

Given the growing political unease about the issue and the pressure from auditors, the central bank decided last month to repatriate some 50 tons of gold in each of the three coming years from New York to its headquarters in Frankfurt for "thorough examinations" regarding weight and quality, the report revealed.

An initiative backed by some German economists, industry leaders, and a few lawmakers dubbed "bring home our gold" launched in May has attracted some 10,000 supporters online so far.

But Finance Minister Wolfgang Schaeuble and others maintain that there is no reason to worry.

"I currently have no doubt about the stock and the storage of the gold reserves," said Priska Hinz, the opposition Greens top lawmaker on the budget committee. "I do not doubt the reliability of the foreign central banks," she told the AP.

Several passages of the auditors' report were blacked out in the copy shared with lawmakers, citing the Bundesbank's concerns that they could compromise secrets involving the central banks storing the gold.

The report said that the gold pile in London has fallen "below 500 tons" due to recent sales and repatriations, but it did not specify how much gold was held in the U.S. and in France. German media have widely reported that some 1,500 tons -- almost half of the total reserves -- are stored in New York.

 

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Wed, 10/24/2012 - 09:32 | 2915525 mick_richfield
mick_richfield's picture

"And they do not doubt my reliability."

Wed, 10/24/2012 - 01:40 | 2915027 Bugsquasher
Bugsquasher's picture

Flash spike in Silver price at 23:30 EST.  Any ideas?

http://www.kitco.com/images/live/silver.gif

Wed, 10/24/2012 - 14:33 | 2916310 debtor of last ...
debtor of last resort's picture

Sprott.

Wed, 10/24/2012 - 09:31 | 2915520 mick_richfield
mick_richfield's picture

It's interesting that the 16th to the 23rd was the time window claimed by Wynter Benton to prove they could move silver.  This spike happened just a few minutes before the end of that window.

I kind of rashly assumed they meant "get it up and keep it up".

Wynter Benton may or may not be real, but at least this is an interesting coincidence.

 

Wed, 10/24/2012 - 12:00 | 2915899 Silver Garbage Man
Silver Garbage Man's picture

I agree about wynter Benton
I think they did say they could prove it, so we shall see.

Wed, 10/24/2012 - 01:26 | 2915023 indygo55
indygo55's picture

Send in those Walmart inventory guys. They are really good at this!

Wed, 10/24/2012 - 01:20 | 2915020 dunce
dunce's picture

Only a fool would trust obama ,  giethner, and our ponzi paper banks.

Wed, 10/24/2012 - 01:18 | 2915017 AustrianJim
AustrianJim's picture

Venezuela started it.

Wed, 10/24/2012 - 14:32 | 2916302 debtor of last ...
debtor of last resort's picture

Nixon started it.

Wed, 10/24/2012 - 01:14 | 2915013 Joebloinvestor
Joebloinvestor's picture

Maybe the Germans will pull the trigger on the starting gun for gold to take off.

Wed, 10/24/2012 - 00:17 | 2914950 Mr. Lucky
Mr. Lucky's picture

"But Finance Minister Wolfgang Schaeuble and others maintain that there is no reason to worry."  LOL

Tue, 10/23/2012 - 23:56 | 2914914 Seasmoke
Seasmoke's picture

better to much too early, then one day late !

Tue, 10/23/2012 - 23:41 | 2914889 Bazza McKenzie
Bazza McKenzie's picture

"There is no doubt about the integrity of the foreign storage sites in this regard,"

As Ronald Reagan said "Trust, but verify."  Fraud is not perpetrated by those you do not trust, since you don't give them the chance.  Fraud is perpetrated by someone in whom you have placed trust.

Tue, 10/23/2012 - 23:56 | 2914915 jeff montanye
jeff montanye's picture

trust but verify seems an oxymoron.  but the observation about fraud is spot on.

Wed, 10/24/2012 - 01:26 | 2915022 Oliver Jones
Oliver Jones's picture

It is like the old saying: "Trust in God, but lock your car."

Wed, 10/24/2012 - 21:39 | 2917433 ozziindaus
ozziindaus's picture

or as engineers say "in god we trust, the rest, bring data"

Tue, 10/23/2012 - 23:31 | 2914875 tony bonn
tony bonn's picture

neither germany nor the usa has any gold left - it left a long time ago on trains headed for beijing, seoul, tokyo, hong kong, mumbai, and a whole of places with funny sounding names....

Wed, 10/24/2012 - 11:57 | 2915893 whotookmyalias
whotookmyalias's picture

Not doubting this, but do people realize the faulty logic here:

"The lack of announcement of the sale of the German gold in London suggests that the sale was actually part of a gold swap with another central bank -- like the New York Fed. "

"....suggests" is a huge leap of faith.  Sort of like a misunderstanding in a sitcom.  Without the leap of faith, the show is over.

Wed, 10/24/2012 - 07:54 | 2915299 Shibumi2
Shibumi2's picture

and you know this how?

 

ANYONE could have grabbed the gold, and those who did the grabbin ain't speaking up

Wed, 10/24/2012 - 02:46 | 2915055 fourchan
fourchan's picture

thats why nobody checks the gold reserves, nobody wants to know the truth,

 

it no longer exists in the places they claim.

Wed, 10/24/2012 - 13:28 | 2916119 are we there yet
are we there yet's picture

Odd job stole it all, while on location.

Wed, 10/24/2012 - 08:07 | 2915317 petolo
petolo's picture

Watch me pull a gold bar out of my hat............oops, wrong hat.

Dracki  thr Flying  Squirel.

Tue, 10/23/2012 - 23:27 | 2914866 fuu
fuu's picture

"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"

 

Are you shitting me?

 

Wed, 10/24/2012 - 12:54 | 2916020 RafterManFMJ
RafterManFMJ's picture

"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"

 

 

It must be hard telling the Germans shit like that, and keeping a straight face.  Not even sure Mr. Bean could pull that off.

Wed, 10/24/2012 - 13:56 | 2916191 fuu
fuu's picture

Being such fine engineers I am surprised Germany hasn't offered to build the visitor rooms if need be.

Wed, 10/24/2012 - 04:54 | 2915159 DosZap
DosZap's picture

How about SCREW YOU,Budesdikwads,it's the German peoples GOLD.

Repatriate it or we hang your asses.

Sieg Smile,Sieg Smile!!!!

Wed, 10/24/2012 - 09:01 | 2915458 optimator
optimator's picture

How about, because the gold is so heavy, we send Leopards and Marders to haul it back.

Wed, 10/24/2012 - 12:44 | 2916000 takinthehighway
Tue, 10/23/2012 - 23:25 | 2914859 tongue.stan
tongue.stan's picture

what kind of sick bastard would want to inspect a gold suppository anyways?

Tue, 10/23/2012 - 23:10 | 2914842 MikeMcGspot
MikeMcGspot's picture

A question please on math and alchemy?

If 10 different auditors from 10 different countries with 10 different balance sheets all gaze at the same single gold bar and tally it on the ledgers, does that mean the one bar is really 10?

 

Tue, 10/23/2012 - 23:26 | 2914865 jal
jal's picture

As long as the 10 auditors do not get to talk to each other then the multiple claims are valid.

Tue, 10/23/2012 - 23:14 | 2914846 I think I need ...
I think I need to buy a gun's picture

THIS SHIT IS GETTING OLD PEOPLE

Wed, 10/24/2012 - 13:26 | 2916112 NotApplicable
NotApplicable's picture

Old people gotta die of something.

Tue, 10/23/2012 - 23:52 | 2914909 bardot63
bardot63's picture

Then stop reading.

Tue, 10/23/2012 - 23:27 | 2914868 Harbanger
Harbanger's picture

The Germans sold their Gold for an IOU?  Hehe...All your Gold are belong to us now.

Tue, 10/23/2012 - 23:09 | 2914838 Bastiat
Bastiat's picture

Is that a gold bar in my pocket or am I just happy to read this?

Tue, 10/23/2012 - 22:59 | 2914828 Herkimer Jerkimer
Herkimer Jerkimer's picture

I think poo-poo is about to hit the fan!

 

"The report acknowledges that such inspections might be logistically complicated, but it stresses that "this cannot discharge [the bank] from the necessity to carry out an inventory."

No… I don't think these "inspections" would be logistically complicated at all. I think anybody that ran any kind of store, say, like a hardware or grocery store, could do the inventory. They do even have these fancy things called "compooters" now-a-days. I hear it makes things much easier, like tracking stuff, numbers and all that!

 

Better buy in now, muppets! I has a feeling that when the big boys find out theirs is either filled with tungsten or just not there, it's going to be a sandwich that will be epic to watch being swallowed!

Show us da money!

As my dear old departed dad would say!

 

"in God We Trust! All Others Pay Cash!"

OJO

V-V

Wed, 10/24/2012 - 00:43 | 2914982 The Shootist
The Shootist's picture

Or as my Zim note says "I promise to pay the bearer on demand, 50 trillion dollars." Your friend, Gono.

Tue, 10/23/2012 - 22:55 | 2914821 Bansters-in-my-...
Bansters-in-my- feces's picture

Who's your Daddy...???

Wed, 10/24/2012 - 08:40 | 2915388 Al Gorerhythm
Al Gorerhythm's picture

I don't know. Why does everyone always bring this up?

Wed, 10/24/2012 - 13:24 | 2916105 NotApplicable
NotApplicable's picture

LOL

Reply of the day!

Tue, 10/23/2012 - 22:49 | 2914815 dexter_morgan
dexter_morgan's picture

worthless barbaric relic

Tue, 10/23/2012 - 22:47 | 2914810 Clever Name
Clever Name's picture

Why would anyone get their panties in a wad over their gold?

Oh right, its 'tradition".

"Trust us, its there"

"Can we see it?"

"Nein!"

 

"The central bank must renegotiate its contracts to gain the right to inspect its gold bars" Really?

Tue, 10/23/2012 - 23:42 | 2914896 ltsgt1
ltsgt1's picture

When the fake money Ponzi scheme is about to blow up, everybody is looking to get their hands on real cold hard cash/gold.

Wed, 10/24/2012 - 00:52 | 2914991 Cap Matifou
Cap Matifou's picture

Too bad Germany was to sign a secret treaty in 1949 to give gold holdings into "safe hands" for the next 150 years, i.e. until 2099. This is the "legal problem" every serious attempt to verify or return german gold runs into.

Germany’s sovereignty restricted by US and allies, insider’s book claims
http://rt.com/usa/news/germany-us-pact-komossa/

 

Wed, 10/24/2012 - 01:58 | 2915029 New World Chaos
New World Chaos's picture

GERMANY trusted JEWISH INTERNATIONAL BANKERS with a few thousand tons of gold, thinking they wouldn't get revenge?  Bwahahahah!

Aaaaaand it's gone.

Wed, 10/24/2012 - 12:59 | 2916037 omniversling
omniversling's picture

would not the German International Bankers have been the ones to arrange the movement of the metal? Who did that, and when?

 

GIB, meet JIB...now where are we going to hide this stuff...

 

Aaaaaand it's gone.

Wed, 10/24/2012 - 11:34 | 2915833 john39
john39's picture

>>GERMANY trusted

as if they had a choice... as if the American people have any say about the gold that is supposed to be in Fort Knox...   thankfully, israel's global scam is being exposed, and that criminals running that country will not escape the growing global revolt.

 

Wed, 10/24/2012 - 06:58 | 2915232 MillionDollarBoner_
MillionDollarBoner_'s picture

"International Communists and Jewish Bankers"

There...fixed it fer y'all ;o)

Wed, 10/24/2012 - 02:52 | 2915057 fourchan
fourchan's picture

lololol omg NWC you have the post of the month!! oh the irony!

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