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What Do German Central Bankers Know That We Don't?

Phoenix Capital Research's picture




 

 

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.

 

  • Germany has the second largest Gold reserves in the world behind the US.
  • Since the early ‘80s, Germany has stored the largest portion of its Gold reserves with the New York Fed (45% vs. 13% in London, 11% in Paris and the remaining 31% in Frankfurt).
  • In the fall of last year, German officials began raising the issue of auditing its reserves at the NY Fed.

 

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?

 

With that in mind, smart investors are taking advantage of the lull in the markets to position themselves for what’s coming.

 

We offer several FREE Special Reports designed to help them do this. They include:

 

Preparing Your Portfolio For Obama’s Economic Nightmare

 

What Europe’s Crisis Means For You and Your Savings

 

How to Protect Yourself From Inflation

 

And last but not least…

 

Bullion 101: Everything You Need to Know About Investing in Gold and Silver Bullion…

 

You can pick up free copies of all of the above at:

 

http://gainspainscapital.com/

 

Best

 

Phoenix Capital Research

 

 

 

 

 

 

 

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Thu, 01/17/2013 - 07:30 | 3161606 No Euros please...
No Euros please we're British's picture

So, you go to the bank to draw out your life savings, and the bank say you can't have it. Instead, they'll pay you £50 a week for 7 years.

Draw your own conclusion about the solvency of the bank, but wouldn't it be ultra spooky if you just said "Oh, OK that will be fine".

Let's face it, the gold isn't there and the Germans know it.

Thu, 01/17/2013 - 04:05 | 3161467 Cult of Criminality
Cult of Criminality's picture

If Germany is going to wait seven years for full delivery.

Looks like more smoke and mirrors to me.

A sideshow so to speak.If I could not go in and audit my gold and was told, wait for seven years ,Warships and every other military option would be used to come TAKE my gold.

Unless of course they used their allotment for buying in to the evil talisman.... (dollar)

Thu, 01/17/2013 - 00:56 | 3161237 TyrannoSoros Wrecks
TyrannoSoros Wrecks's picture

Serious question at the risk of sounding ignorant:
Why would Germany store their gold in NYC and not at home? Were they worried about the Soviets getting to it if they invaded?

Thu, 01/17/2013 - 02:03 | 3161352 Mad Mohel
Mad Mohel's picture

After you finish getting the beatin of your life, you don't just turn around and ask your asskicker not to take your lunch money. You lose, you get to shut up and do as your told. Ya feel me?

Thu, 01/17/2013 - 00:32 | 3161196 are we there yet
are we there yet's picture

Fort Knox would make a great underground football stadium if they put in AstroTurf.

Wed, 01/16/2013 - 22:57 | 3160950 Clowns on Acid
Clowns on Acid's picture

A day late and a bar of tungsten short.................

Wed, 01/16/2013 - 22:51 | 3160933 are we there yet
are we there yet's picture

So German gold is returned 5% in 7 years = 100% in 140 years? By then a trillion dollar coin may really be worth a trillion dollars.

Wed, 01/16/2013 - 22:17 | 3160835 Wanton1
Wanton1's picture

 

 

At the rate trees are dying, wood will have replaced gold in 8 years.

Wed, 01/16/2013 - 21:40 | 3160664 1eyedman
1eyedman's picture

"preparing for obama's economic nightmare"....why do the presidents get the blame/credit?  its the fed and central banking f'ing it all up....his problem is that he believes their sht when they say he can have his pet projects too, if he obeys and doesnt rock the boat that is.....thats when romney lost: when he suggested auditing the fed, plug pulled, never was a contender after that

Thu, 01/17/2013 - 03:16 | 3161430 WTFUD
WTFUD's picture

poor lamb, my ass, almost had me feeling sorry for him, not.

Wed, 01/16/2013 - 20:08 | 3160338 GreatUncle
GreatUncle's picture

With all the gold certificates going around do you get that itchy feeling that actually holding the gold you own might be the most imprtant part.Hence Germany wants its gold under its own lock and key and you can't blame them really.

Would set in motion this though... truly awesome.

If everybody claims the gold they believe they own, who has a gold certificate but is not getting any then if there is not enough?

Wed, 01/16/2013 - 22:58 | 3160949 Go Tribe
Go Tribe's picture

Fuck the U.S. I'm fighting for the Krauts next time around. Will be easier convincing them not to burn jews than convincing obama not to burn America.

Wed, 01/16/2013 - 19:37 | 3160216 The Alarmist
The Alarmist's picture

D: Rechnung Bitte

A: Let's see, that was 65 years of defense.  That'll be $300B.

D: Bitte ???

A: No problemo ... we'll just take it from your account.  Let's call it a draw.

Wed, 01/16/2013 - 19:34 | 3160202 ramacers
ramacers's picture

the crimson tide is rollin' in.

Wed, 01/16/2013 - 18:25 | 3159904 dunce
dunce's picture

"Full faith and credit", has long been regarded as boiler plate, especially the faith part. After the corzine affair this government  completely lost the faith part and creditors are looking with jaundiced eyes at the credit part.

Wed, 01/16/2013 - 17:45 | 3159737 lakecity55
lakecity55's picture

Heinrich, ze Amerikanners have turned over zee country to a negro.

Gott! Ve must get zee gold back, fastly!

Wed, 01/16/2013 - 21:45 | 3160683 rsnoble
rsnoble's picture

If it were Mr. T I would understand the concern.

Wed, 01/16/2013 - 17:14 | 3159587 rsnoble
rsnoble's picture

That's why the US is sending troops to 35 African countries with lots of mining equipment.   If the US has no gold, Germany has no gold, and all these other countries mentioned have no gold...........where the hell did it go? Rothschild basement?

Thu, 01/17/2013 - 11:25 | 3162285 e-recep
e-recep's picture

PMs have been migrating to the East for quite some time now. The West has lost its upper hand in being the first in Industrial Revolution.

Thu, 01/17/2013 - 02:16 | 3161370 Turtle49
Turtle49's picture

The aliens (ET type) took all of it back to their Home World and left the gold plaed tungsten.  Beats having to mine the gold and having to deal with a bunch of newly minted humanoids like last time.

Wed, 01/16/2013 - 16:59 | 3159496 Widowmaker
Widowmaker's picture

Widowmaker is German.  Fuck the US Federal Fraud Reserve.

It doesn't take brains to see the dollar is hypothejigimicated (or any other fancy word for fucking lies) and run for the hills.

Widowmaker is also seeing a notable increase in the subject of devolution.  Another highly linked word with devolution is chaos.

Banks and the fraud-faggots that work for them will be on the menu of devolution. The printing press ain't a solution for devolution, but eating those that run it is.

Confidence is dead, so is the dollar, so is the US' synthetic "economy" of the incorporated.

Wed, 01/16/2013 - 18:22 | 3159878 LawsofPhysics
LawsofPhysics's picture

Indeed, most will have no idea regarding your reference to the "incorporated economy".  No surprise ammo is hard to get.

Wed, 01/16/2013 - 21:31 | 3160628 espirit
espirit's picture

Hard to get if you can find it even at double the pre "O" blamo -bill price.  My online supplier won't guarantee/accept backorders on components to reload.

Thu, 01/17/2013 - 02:18 | 3161374 The Heart
The Heart's picture

So, do ya think the bush mob that owns the mk-ultra clowns program and the soterobama puppet had anything to do with the astronomical profits from the ammunition and gun maker companies they own under fake names?

One can be sure that if anyone did a study of who owns what in the arms dept and how much they all profited from the latest scare tactic that worked so well to get so many suckers to go out and panic buy at the inflated prices, it would be interesting to say the least. Hey George W, are you listening?

Besides, the evil banksters know that they do not care how armed Americans are, the chinese will just waste them all away at 3:22 am sometime with race specific bio-weapons in a surprise attack they have openly bragged about doing to take the bread basket. Long story short, the profiteers of war make more money for off-shore accounts, and no mater how many guns Americans have, it will not matter after the surprise attack on the homeland.

Wed, 01/16/2013 - 16:22 | 3159333 walküre
walküre's picture

For cryin' out loud !!!

EIGHT FUCKING YEARS!

My personal WTF moment of the young year 2013.

How long does it take the innovative nation of Germany to repatriate 674 tons of gold? Apparently it will take them 8 years.

Hello Merkel, your very own fleet of A380 can do the job in about 5 trips (cargo capacity of A380 is 140 tons).

Why the delay and holdup? Why give the yanks 8 years to invade somewhere else and replenish our gold holdings?

Why still keep some gold in NY and LON and not bring back ALL OF IT? Who is making these stupid decisions?

Thu, 01/17/2013 - 03:31 | 3161443 WTFUD
WTFUD's picture

No expert but fitted with back-up batteries the Dreamyliner could manage it in 2 trips ( and have a ready excuse at hand shoud a mishap occur ).

Wed, 01/16/2013 - 21:03 | 3160545 blue
blue's picture

NO currency is based in gold who cares...

Wed, 01/16/2013 - 20:25 | 3160406 SaveTheBales
SaveTheBales's picture

8 years to get the gold?

Didn't that used to be called a Loan?

Thu, 01/17/2013 - 00:59 | 3161245 andrewp111
andrewp111's picture

Germany might have used that gold as collateral to borrow US dollars from the Fed, and that is why it will take 7 years.

Wed, 01/16/2013 - 16:49 | 3159456 Tango in the Blight
Tango in the Blight's picture

You're naieve but I give you +1 for your straight talking.

Wed, 01/16/2013 - 21:20 | 3160585 walküre
walküre's picture

Thanks? Give me an explanation as to why they need that much time. Just based on your own opinion.

The EU and the EURO might be in the dustbin of history in 2020. I know they're all sitting in ivory towers everywhere but it couldn't have escaped even the dumbest of the elite that the people across the South are on the verge of civil wars and the people in the North are just as angry and fed up with the Euro Enchilada.

It took Hitler only 10 years to seize power in Germany after he had "putsched" from the Bierhaus in 1923. He was imprisoned during that time and came back to be the next national leader. That was 90 years ago and we've come along way since in terms of communication, propaganda and mass hysteria. If you're able to read German, go read across the German blogosphere to get an idea of how cool, calm and collected the German people are when it comes to supporting the EU and the Euro /not.

8 years is a joke. I'm not even taking it serious.

Thu, 01/17/2013 - 03:35 | 3161445 WTFUD
WTFUD's picture

. . .explanation. . .because the Pentagon told them so. . .

Wed, 01/16/2013 - 16:20 | 3159320 Volaille de Bresse
Volaille de Bresse's picture

"That is a phantom menace that doesn't exist anymore doing quite a bit of damage in Mali with captives"

 

Yes and no! A dickhead with an AK-47 in the middle of the desert is... a dickhead with an AK-47 in the middle of the desert. 

As soon as he brags he and his buddies are "Al-Qaeda African branch" whoa he's become a threat to the civilized world. 

Wed, 01/16/2013 - 15:48 | 3159157 zuhoobie
zuhoobie's picture

The German's just realized that the FDIC only insurers the first $250k of gold on deposit at the Fed...

Wed, 01/16/2013 - 15:46 | 3159144 Joebloinvestor
Joebloinvestor's picture

Germany is just getting ready for when China and Russia announce the new gold backed (yeah trust Russia and China) currency after the FIATS blow up.

Wed, 01/16/2013 - 15:27 | 3159040 Cyrano de Bivouac
Cyrano de Bivouac's picture

Why doesn't Germany take all the gold now?

Wed, 01/16/2013 - 18:59 | 3160073 InvalidID
InvalidID's picture

 

 Because the US said, 'We'll get it to ya when we get around to it, now sit down and shut the fuck up, we're busy.'

Wed, 01/16/2013 - 15:25 | 3159020 Hannibal
Hannibal's picture

Not to trust the City of London and New York.?

Wed, 01/16/2013 - 15:20 | 3159007 Madcow
Madcow's picture

1. Lord loves a working man

2. Don't trust Whitey

 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/16_Ge...

Wed, 01/16/2013 - 19:06 | 3160094 Conax
Conax's picture

3.  See a doctor and get rid of it.

Wed, 01/16/2013 - 15:16 | 3158973 besnook
besnook's picture

this is kind of similar to when degualle asked the usa to pay it's current account deficit off in the contracted gold bullion and nixon promptly went off the gold standard. this could be the reverse where the world decides it is time to return to the gold standard and the usa(the dollar) is left holding the bag with vast empty vaults of dust.

how do you say rehypothecate this in german.

Wed, 01/16/2013 - 20:04 | 3160329 Savyindallas
Savyindallas's picture

Nixon did not go off the gold standard  -it was a temporary measure to defend the dollar. What's wrong with you people? Our government would never lie to us  -if they did, our crackerjack media, lead by the New York Times would raise such a shit storm that the lying politician would resign within 48 hours or be lynched by an angry mob of educated American Patriots.

Wed, 01/16/2013 - 15:22 | 3159014 Jack Sheet
Jack Sheet's picture

"Schieben Sie sich Ihre Wiederhypothekisierung in den Arsch"
Mit freundlichen Gruessen

Thu, 01/17/2013 - 02:26 | 3161384 The Heart
The Heart's picture

Ahhhh...it's you.

We have heard about your cousin, Jack Shitte:

Jack Schitt is the only son of Awe Schitt. Awe Schitt, the fertilizer magnate, married O. Schitt, the owner of Needeep N. Schitt, Inc. They had one son, Jack.

In turn, Jack Schitt married Noe Schitt. The deeply religious couple produced six children: Holie Schitt, Giva Schitt, Fulla Schitt, Bull Schitt, and the twins Deep Schitt and Dip Schitt.

Against her parents' objections, Deep Schitt married Dumb Schitt, a high school dropout. After being married 15 years, Jack and Noe Schitt divorced.

Noe Schitt later married Ted Sherlock, and because her kids were living with them, she wanted to keep her previous name. She was then known as Noe Schitt Sherlock.

Meanwhile, Dip Schitt married Loda Schitt, and they produced a son with a rather nervous disposition named Chicken Schitt.

Two of the other six children, Fulla Schitt and Giva Schitt, were inseparable throughout childhood and subsequently married the Happens brothers in a dual ceremony.

The wedding announcement in the newspaper announced the Schitt-Happens nuptials. The Schitt-Happens children were Dawg, Byrd, and Horse.

Bull Schitt, the prodigal son, left home to tour the world. He recently returned from Italy with his new Italian bride, Pisa Schitt.

Now when someone says, 'You don't know Jack Schitt,' you can correct them and tell them you know the whole family!

Sincerely,

Crock O. Schitt

Thu, 01/17/2013 - 04:05 | 3161466 Jack Sheet
Jack Sheet's picture

LOL, , Dogg Schiedt became a rap singer... details too shocking to reveal here...

Wed, 01/16/2013 - 15:40 | 3159114 besnook
besnook's picture

that is a useful phrase to know.lol

Wed, 01/16/2013 - 15:07 | 3158916 Fuh Querada
Fuh Querada's picture

Graham doesn't know dick.

Wed, 01/16/2013 - 15:07 | 3158914 robnume
robnume's picture

Good fuckin' luck gettin't your gold from the New York Fed, Deutschland! If I have to be the one to tell you that it is GONE POOF! then you're dumber than you look!

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