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What Do German Central Bankers Know That We Don't?
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.
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Preparing Your Portfolio For Obama’s Economic Nightmare
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What Germany knows that we (meaning Phoenix Capital) do not know is that it doesn't take 7-8 years to move a couple of thousand tonnes of gold. What Germany knows is that the gold is not there, and it will take 7-8 years to accumulate a couple of thousand tonnes of gold -- except if you are Chinese, in which case you can move a couple of hundred tonnes a day into deep Asian storage meant to come off market for the next 50 years. The gold at the US Fed is gone. It's been gone a long time. The gold in London is gone. The gold in France is about to be gone, as soon as the commie Hollande figures out how to get his hands on it. It's been gone a long time. That's what the Germans know, and actually, as long as they can make nice-nice with DC, they really don't even care that it's gone.
Hey Germany, here's the signs we (the 99%) have been getting from the Fed:
.!..
..probably translates well to German. The whole economy is some kind of screwy voodoo bizarro-world brought to you courtesy of the US Fed. Don't hold your breath too long for 'your' gold.
That is going to be some boating accident the Germans will have bringing that gold back to their shores.
The Fed is responsible for shipping. US Navy escort of course. So the odds of an accident at sea just tripled. "Uh... we lost it. Sorry. It was in the third ship, it really was. But it's gone now. Sorry. Got any more?"
It's necessary to make currency reform a bargaining chip. A new German currency needs to be backed by gold. So to make the threat of currency reform viable at the negotiations table, you need to repatriate the gold. Of course Germany doesn't intend to drop out of the Euro. But the leverage that the PIIGS lately (in particular the Irish and Italians) believe to have over Germany needs to be countered.
More thoughts on the Irish and Italians can be found here (German):
http://www.insm-oekonomenblog.de/9697-erpressung-und-austritt/
Who the fuck stores the wealth of their nation overseas in some other country's vault, particularly one as openly corrupt as the US? Dumbshits better be scraping their nail on every bar and doing a tungsten check when it arrives in Germany.
A country that lost a war in your grandparents generation?
sure, but insisting on the delivery of that gold means "fuck history, fuck victory, i want my money". it signals the change of an era in the western block.
True, but the Germans also see the US borrowing trillions and pissing it away. +113% debt since Q2 2008, but only 2.5% real GDP growth. If I was Germany, i would be nervous about the US too.
http://confoundedinterest.wordpress.com/2013/01/15/game-of-thrones-gold-...
They know you post shit articles.
On the other hand this may all be a smokescreen to hide the fact that there is no gold. Germany is pretty much the NWO, so they cannot go against themselves. It will be announced with great fanfare that the gold has been repatraiated but that would just be a show for the German people. Or Germany may been selected to bring down the US, which many Nazis in Germany and the US have worked towards since the end of WW2, and would consider poetic justice! Germany may yet prove to be the winner of that war!
No smokescreen, I think that Germany is getting their gold out while they still can. Because they know eventually this game will end badly and anybody trying to get their gold from the US will get an IOU or F off when all those politicians are running around trying to find money to quell the masses.
Agreed. That's the thing about rats, once the ship starts to sink, it's every rat for themselves.
I think it was Paul Tsongas who said of the ending of the cold war "Germany and Japan have won"
But I think theyre both really client states of the US since 1945. Im sure this gold repatriation is also a result of more central bank cooperation - and seems more directed at France
It was a Soviet general who said that with the ending of the Cold War "we did the worst thing possible do the USA, we took away her enemy." I guess Al-qaeda gave us one back, even if it is just a phantom menace now that doesn't exist anymore.
Al-qaeda is one sorry ass replacement for the uSSR as an enemy -formed and promoted by the CIA/NSA/MI6/Mossad, et al., it never got off it's feet sufficiently to meet expectations, but nevertheless remains one of the most reliable divisons of the CIA -from providing boots on the ground for 911, Libya, Afghanistan, Syria, Iran , etc. to guarding helping in the very important Opium cultivation/distribution network in Afghanistan - it's where the action is and is still the best department for a young, agressive agent/asset to find glory, promotion and fortune. It's not too often an agent can be involved with a big operation like 911 or killing a Kennedy - but the al quaeda division of the CIA assures action , excitement and an opportunity to be a part of history. Where else could you be an eyewitness to history -like watching your comrade partner agent shove a gun up Gaddaffi's ass.
That is a phantom menace that doesn't exist anymore doing quite a bit of damage in Mali with captives.
It's also a phantom menace that is used interchangeably with "terrorist" and, thereby, gets blamed for every aggression against american interests regardless of actual involvement...
GOODBYE DOLLAR!
Barbarous Relic .... who needs it anyway?
No one answered where did the gold go then (if it is not in the fed).
Rehypothecated to dust?
"What do German CB know that we dont?"
Quit the act, you knew.
And, some of us knew.
What Do German Central Bankers Know That We Don't?
Überlieferung
"What Do German Central Bankers Know That We Don't?"
The chinese are coming.