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Why Did The Bundesbank Secretly Withdraw Two-Thirds Of Its London Gold?

Tyler Durden's picture




 

Two days ago we reported that the German Court of Auditors demanded that the German Central Bank, the Bundesbank, verify and audit its official gold holdings consisting of 3,396 tons, held mostly offshore, namely New York, London and Paris, at least according to official documents. It also called for repatriation of 150 tons in the next three years to perform a quality inspection of the tungsten gold. Today, in a surprising development, via the Telegraph we learn that none other than the same Bundesbank which is causing endless nightmares for all the other broke European nations due to its insistence for sound money, decided to voluntarily pull two thirds of its gold holdings held by the Bank of England. According to a confidential report referenced by the Telegraph, Buba reclaimed 940 tons, reducing its BOE holdings from 1,440 in 2000 to 500 in 2001 allegedly "because storage costs were too high." This is about as idiotic an excuse as the Fed cancelling its reporting of M3 in 2006 because "the costs of collecting the underlying data outweigh the benefits." So why did Buba repatriate its gold? Ambrose Evans-Pritchard has an idea.

The shift came as the euro was at its weakest, slumping to $0.84 against the dollar. But it also came as the Bank of England was selling off most of Britain's gold reserves – at market lows – on orders from Gordon Brown.

 

Peter Hambro, chair of the UK-listed gold miner Petropavlovsk, said the Bundesbank may have withdrawn its bullion in self-protection since it did not, apparently, have its own specifically allocated bars in London. "They may have decided that the Bank of England had lent out too much gold, and decided it was safer to bring theirs home. This is about the identification. Can you identify your own allocated gold, or are you just a general creditor with a metal account?"

 

The watchdog report follows claims by the German civic campaign group "Bring Back our Gold" and its US allies in the Gold Anti-Trust Committee that official data cannot be trusted. They allege central banks have loaned out or "sold short" much of their gold.

 

The refrain has been picked up by German legislators. "All the gold must come home: it is precisely in this crisis that we need certainty over our gold reserves," said Heinz-Peter Haustein from the Free Democrats (FDP).

Speculation aside, the fact that central banks, and even banks of central banks (i.e., the BIS), have long lent out gold, is no secret to anyone, traditionally to satisfy short-term physical gold confirmation claims upon a spike in demand, usually associated with a liquidity shortage (when the value of gold as monetary collateral truly shines). The problem with this rehypothecation scheme is what happens when the counterparty suddenly finds themselves insolvent, the gold has since been re-re-rehypothecated, and nobody really knows whose gold it is any more. This becomes a drastic problem when a counterparty in a collateral chain suddenly goes broke... like MF Global did last year, and the lawsuits started flying trying to determine whose gold is where. Needless to say, it was the London office of MF Global that was at fault for breaching a rehypothecation chain (because only in London was there no collateral haircut limit on rehypotehcation), and once physical delivery demands arose, nobody could locate bar XYZ with a given serial number.

That, or the Bundesbank merely foresaw the ultimate unwind of the failed European mercantilist experiment at the start, and refused to leave its most precious asset in the hands of the banker oligarchy which it knew would do everything in its power to procure said gold once the feces hit the fan. Sure enough, BUBA's 'non-denial' denial confirms this too:

The Bundesbank said it had full trust in the "integrity and independence" of its custodians, and is given detailed accounts each year. Yet it hinted at further steps to secure its reserves. "This could also involve relocating part of the holdings," it said.

Yet what is left unsaid in all of the above is that Germany has done nothing wrong! It simply demanded a reclamation of what is rightfully Germany's to demand.

And here is the crux of the issue: in a globalized system, in which every sovereign is increasingly subjugated to the credit-creating power of the globalized "whole", one must leave all thoughts of sovereign independence at the door and embrace the "new world order." After all this is the only way that the globalized system can create the shadow cloud of infinite repoable liabilities, in which we currently all float light as a binary feather, which permits instantaeous capital flows and monetary fungibility, and which guarantees that there will be no sovereign bond issue failure as long as nobody dares to defect from the system in which all collateral is cross pledge and ultra-rehypothecated... for the greater good. Until the Buba secretly defected that is.

And this is the whole story. Because by doing what it has every right to do, the German Central Bank implicitly broke the cardinal rule of true modern monetary system (never to be confused with that socialist acronym fad MMT, MMR or some such comparable mumbo-jumbo). And the rule is that a sovereign can never put its own people above the global corporatist-cum-banking oligarchy, which needs to have access to all hard (and otherwise) assets at any given moment, on a moment's notice, as the system's explicit leverage at last check inclusive of the nearly $1 quadrillion in derivatives, is about 20 times greater than global GDP. This also happens to be the reason why the entire world is always at most a few keystrokes away from a complete monetary (and trade) paralysis, as the Lehman aftermath and the Reserve Fund breaking the buck so aptly showed.

We are confident that little if anything will be made of the Buba's action, because dwelling on it too much may expose just who the first country will be (or  already has been) when the tide finally breaks, and when it will be every sovereign for themselves. Because at that point, which will come eventually, not only Buba, but every other bank, corporation, and individual will scramble to recover their own gold located in some vault in London, New York, or Paris, or at your friendly bank vault down the street, and instead will merely find a recently emptied storage room with humorously written I.O.U. letters in the place of 1 kilo gold bricks.

 

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Wed, 10/24/2012 - 20:54 | 2917296 kliguy38
kliguy38's picture

Perhaps they just wanted to help put a little "gum" in some leaks.......

Wed, 10/24/2012 - 21:02 | 2917317 sunaJ
sunaJ's picture

As central planners catch up to the idea that physical possession is 9/10ths of the law, the fraud will soon be revealed.

Wed, 10/24/2012 - 21:14 | 2917355 Mae Kadoodie
Mae Kadoodie's picture

Be careful, I hear that some I.O.U.'s are actually made of tungsten.

Wed, 10/24/2012 - 21:34 | 2917417 jeff montanye
jeff montanye's picture

i'm starting to wonder where that one tenth of the law is for those not in possession.  mf global doesn't leave a good taste in my mouth.

Wed, 10/24/2012 - 21:40 | 2917431 CrockettAlmanac.com
CrockettAlmanac.com's picture

 

 

Because at that point, which will come eventually, not only Buba, but every other bank, corporation, and individual will scramble to recover their own gold located in some vault in London, New York, or Paris, or at your friendly bank vault down the street, and instead will merely find a recently emptied storage room with humorously written I.O.U. letters in the place of 1 kilo gold bricks.

 

"Kilroy: Up yours baby."

http://www.youtube.com/watch?v=OqSiLL8U3vo

Wed, 10/24/2012 - 21:51 | 2917472 FEDbuster
FEDbuster's picture

Sure would be nice to audit and assay the gold at Ft. Knox right about now.  Maybe Geraldo could host a big FOX special, "The Mystery of Ben Bernanke's Vaults"?  Most likely with an ending similar to his last "Vault" show.

Wed, 10/24/2012 - 21:56 | 2917486 Orly
Orly's picture

The last "vault" being full of stale air and dust?

Wed, 10/24/2012 - 22:06 | 2917524 FEDbuster
FEDbuster's picture

Bingo!  A whole lot of bupkis.

Wed, 10/24/2012 - 22:08 | 2917530 markmotive
markmotive's picture

I thought Germany held most of its gold in New York?

http://www.planbeconomics.com/2012/10/23/schall-talks-about-germany%E2%8...

Wed, 10/24/2012 - 22:45 | 2917588 DoChenRollingBearing
DoChenRollingBearing's picture

Again, the FRBNY holds mostly foreign gold, their total holdings are some 7000 tonnes (yes, including a bunch of Germany's).  Ft. Knox (along with a little in San Francisco, West Point and a bit at the FRBNY) adds up to 8000 + tonnes of US gold.  Assuming all the gold is legitimate (my guess is yes that it is), then if I were Germany I would pull at least half of their gold from the FRBNY as well.

Who's going to invade Germany?  Russia?  Poland?

This whole issue is yet another reminder to ALL OF YOU that physical gold is likely to get very scarce...  If you do not own any, then you better get started!

Thu, 10/25/2012 - 00:51 | 2917808 strannick
strannick's picture

"Shipped the gold abroad in case of a Soviet attack''. Might have well shipped it to Moscow for safe-keeping.

Thu, 10/25/2012 - 03:38 | 2917904 Seb
Seb's picture

"Might have well shipped it to Moscow for safe-keeping."

Bad idea. They tend to keep for good anything they receive for "safe keeping".

http://en.wikipedia.org/wiki/Romanian_Treasure

 

Thu, 10/25/2012 - 06:16 | 2917971 Crime of the Century
Crime of the Century's picture

They tend to keep for good anything they are allowed to touch...

FIFY

http://www.nysun.com/foreign/putin-pockets-patriots-ring/16172/

Thu, 10/25/2012 - 01:52 | 2917850 DeadFred
DeadFred's picture

Better get it out of New York right quick. I hear them Iranians might invade at any time.

Thu, 10/25/2012 - 07:04 | 2918006 GCT
GCT's picture

Dochen and the President using the emergency powers act when things really start getting worse can confiscate it all. and not return any gold to anyone, including soverigns.

Sun, 10/28/2012 - 20:26 | 2918014 GCT
GCT's picture

Double post sorry.

Wed, 10/24/2012 - 22:39 | 2917618 seataka
seataka's picture

I chatted with a gal who lives in Ft. Knox who said it was common knowledge there was no gold in Ft. Knox.

 

Wed, 10/24/2012 - 22:54 | 2917649 Orly
Orly's picture

You seriously trust a girl from Kentucky?

Wed, 10/24/2012 - 23:45 | 2917736 blindman
blindman's picture

o,
your avatar looks just like a women i
once called a neighbor and she was from kentucky,
never saw her wearing shoes. once or twice she
watched my son but honestly, i never trusted her.
sometimes you just have to have faith.

Thu, 10/25/2012 - 00:01 | 2917757 Orly
Orly's picture

Why on earth would anyone wear shoes when there's the cool blue grass between your toes?

Thu, 10/25/2012 - 02:22 | 2917864 Dead Canary
Dead Canary's picture

What does a girl from Kentucky put behind her ears to make herself more attractive?

Here ankles.

Thu, 10/25/2012 - 07:34 | 2918030 JonNadler
JonNadler's picture

don't tell anyone but Orly was raised in Kentucky

Thu, 10/25/2012 - 00:08 | 2917762 seataka
seataka's picture

Yes, I would, The indian word it comes from sounds like  ken\tuh/key or kentahkee, which means "the happy hunting ground" it was considered heaven. "WALL STREET" on the other hand was named after a wooden wall that was built by Dutch traders, @1620 after they had signed a peace treaty with the locals, who called the place they signed it "Hoboken" which means "pipe of peace" and then they slaughtered them. The line of that wall that was built to protect the Dutch from the enraged indians, after the Dutch massacre of the indians, is the street in New York City called "WALL STREET. (ref: http://www.sidis.net/TSChap7.htm)

Thu, 10/25/2012 - 01:59 | 2917856 Orly
Orly's picture

Very interesting history.  Thanks for sharing.

:D

Wed, 10/24/2012 - 22:54 | 2917651 walcott
walcott's picture

In Ft. Knox Kentucky it was common knowledge that there never was any gold in Ft. Knox.

Thu, 10/25/2012 - 01:46 | 2917844 Mister Ponzi
Mister Ponzi's picture

When the tide finally breaks you don't want to be long tungsten. Supply shock, bitchez!

Thu, 10/25/2012 - 03:48 | 2917906 merizobeach
merizobeach's picture

How exactly would the uneducated common people of Kentucky have any goddamn clue whatsoever how much gold is stored in Ft Knox?  Those stupid motherfuckers probably couldn't locate all fifty states on a map.

Thu, 10/25/2012 - 10:02 | 2918308 dbTX
dbTX's picture

Obama claims to have been in all 57 states

Thu, 10/25/2012 - 11:04 | 2918525 Arthur Borges
Arthur Borges's picture

You mean Goldfinger was misinformed or maybe even set up by the FBI like some 21-year-old Bangladeshi who drove up in front of New York's Federal Reserve with nothing more destructive than the gas in his tank?

I'm so disappointed in James and Pussy.

Wed, 10/24/2012 - 23:56 | 2917751 WillyGroper
WillyGroper's picture

I'd ask Louise but------my long distance is out of order.

http://s6.zetaboards.com/Bill_Still_Reforum/topic/1176801/1/

Thu, 10/25/2012 - 01:09 | 2917819 SafelyGraze
SafelyGraze's picture

"Why Did The Bundesbank Secretly Withdraw its Gold Two-Thirds out of London?"

it sounds like a ribald riddle

hope it has a happy ending

Wed, 10/24/2012 - 22:09 | 2917536 nmewn
nmewn's picture

Oddball: Hi, man.
Big Joe: What are you doing?
Oddball: I'm drinking wine and eating cheese, and catching some rays, you know.

Thu, 10/25/2012 - 03:00 | 2917880 piceridu
piceridu's picture

What's with the negative waves?

Wed, 10/24/2012 - 22:49 | 2917636 Dr Benway
Dr Benway's picture

IOUs are as good as money. Go ahead, count it all up. Every last ounce accounted for.

 

http://www.youtube.com/watch?v=7GSXbgfKFWg

Thu, 10/25/2012 - 01:19 | 2917825 FreedomGuy
FreedomGuy's picture

Start a pool in your office to guess how many times the same gold bar has been sold or held in inventory for a different account. Apply the same guess to GLD or any other paper gold accounts.

Thu, 10/25/2012 - 03:51 | 2917907 merizobeach
merizobeach's picture

According to Jim Rickards, perhaps about twenty times.

Thu, 10/25/2012 - 06:23 | 2917981 Crime of the Century
Crime of the Century's picture

According to Jeff Christian, it is 100 paper to 1 physical, and many of those players foolishly believe they also have claims.

http://www.zerohedge.com/article/jeffrey-christian-and-nick-barisheff-bu...

Thu, 10/25/2012 - 08:23 | 2918092 jmcadg
jmcadg's picture

According to Jeff Christian he later admitted to 400:1 paper:physical.

Musical Chairs - 400 people dancing, 1 chair left and when the music stops you're already sitting on it. :)

Wed, 10/24/2012 - 21:39 | 2917432 mjcOH1
mjcOH1's picture

I'm thinking the red tape involved in shipping that gold is about to get a lot more time consuming.   Nothing to do with where it's going of course.   But there should be some sort of genetic testing to determine what goose laid it and its history for the last 100 yrs or so.

Should all be cleared up in a couple of years, or never if the Euro implodes.  Whichever comes last.

Wed, 10/24/2012 - 22:10 | 2917540 FEDbuster
FEDbuster's picture

Wonder how much of the Venezuela gold has made it down to Hugo's vaults?  Looks like he is ahead of the curve on that call.

Wed, 10/24/2012 - 22:23 | 2917573 knukles
knukles's picture

Venezuela had announced some time ago that the deliveries had been accomplished.
Remember, it was shortly after Hugo demanded his gold back from London that the Arab Spring-a-ling forces miraculously captured Tripoli and within days announced a massive sale of Libya's gold which was held at the BoE in order to pay for arms, ammo and fighters salaries.

Now, there has just Fuck All Never been Rebels in any Fucking Country ever sold Gold Reserves to pay for the Arms and Ammo, etc., being Given to Them for free by the Supporting Forces.

It doesn't happen that way.

The so called sale of Libyan gold was made in order to be able to dip into one dwindling unallocated pile of shiny in order to make physical to Hugo.

In My Not so very Humble Opinion because that's the only way all these stories fit together.....
liberal application of Occam's Razor

A ton here and a ton there and pretty soon you're talkin' real gold.

Wed, 10/24/2012 - 22:31 | 2917598 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1  I'll buy that knukles!    I'll buy more gold soon!  

Don't get left out as the gold train pulls out of the station...

Wed, 10/24/2012 - 22:39 | 2917619 knukles
knukles's picture

Woooo wooo chuga chug chug chug chuga chug chug

 

Wed, 10/24/2012 - 22:53 | 2917642 fuu
fuu's picture

I always thought the swiftness of setting up the Central Bank of Benghazi was suspect.

Wed, 10/24/2012 - 22:56 | 2917657 Orly
Orly's picture

You mean like waaay before the civil war was over and Khaddafi wasn't even dead yet kinda swiftness?

Wed, 10/24/2012 - 23:06 | 2917677 knukles
knukles's picture

Yeah....
See ya'll are catchin' on.

Good on ya'

Wed, 10/24/2012 - 23:06 | 2917679 fuu
fuu's picture

Yes, they formed a new national oil company at the same time.

Wed, 10/24/2012 - 23:13 | 2917691 knukles
knukles's picture

There ya go'
Only reasons to invade somebody...
Oil or Gold

Watch real close....
Listen to the sabres rattling.

 

And PS on the "new" oil co.
If I remember correctly, BP is in big time...
They'd been nationalized earlier, etc.

Dibs!

Thu, 10/25/2012 - 06:26 | 2917986 ParkAveFlasher
ParkAveFlasher's picture

Wow, so Hugo essentially pushed the button on Qaddafi?  I can believe it.

Thu, 10/25/2012 - 07:16 | 2918017 Patriot Eke
Patriot Eke's picture

The bank being setup so quickly is no surprise to me.  How else would you manage all of the gold you just "acquired?"  It's the same as it ever was, and the banks are the worst thieves.  They have entire armies at their disposal too.

One has to wonder... How much gold does Iran have?

Thu, 10/25/2012 - 06:28 | 2917975 HardAssets
HardAssets's picture

One wonders what the level of awareness is among the general public in each country. From what I gather from the article, in Germany there are public interest groups that pushed this. And, seemingly there were those in their central bank who actually are looking out for German interests. One can only imagine (since there seems to be a complete 'news' blackout on the subject) that the public awareness of how the banksters are robbing everyone is very high in Iceland.

In America, most people are completely clueless on these topics. The 'news' and 'education' sectors are completly bought off by (ultimately) bankster and corporate interests. Though Ron Paul helped a great deal to bring it to the attention of many more people.

Thu, 10/25/2012 - 06:25 | 2917984 Winston Churchill
Winston Churchill's picture

.MMM,

They saying needs an update to 'posession is 99.999% % the law'.

Wed, 10/24/2012 - 23:47 | 2917739 Gringo Viejo
Gringo Viejo's picture

I have the feeling the Fort Knox "myth" is about to get "pantzed" in the not too distant future.

Thu, 10/25/2012 - 03:02 | 2917885 tyrone
tyrone's picture

You do realize that the Republicans are going to win the necessary 5 seats in the Senate to have control of the US Congress for at least 2 years. Then, Ron Paul will have his day and he WILL mandate a full audit of the US Gold reserves held in Ft. Knox, FRNBY, USMA in West Point and wherever else there exists a dribble of AU. Thats when Bernanke is really going to start shitting. Part of the audit process will be drilling random bars. This is going to get fun real soon.

Thu, 10/25/2012 - 05:53 | 2917949 Vlad Tepid
Vlad Tepid's picture

Hey, Tyrone, I'll bet you a shiny 1/10 oz gold eagle that Ron Paul won't be a sitting congressman in six months.

Thu, 10/25/2012 - 01:22 | 2917826 Silver Bug
Silver Bug's picture

The currency wars continue to intensify.

 

http://jamesturkblog.blogspot.ca/

Wed, 10/24/2012 - 21:16 | 2917366 unrulian
unrulian's picture

perhaps for an "accident" on the Danube

Wed, 10/24/2012 - 21:38 | 2917399 Muppet of the U...
Muppet of the Universe's picture

As the machine nears its end, cogs that were not yet moving will jolt into motion, one by one, like slaves in a chaingang. 

The clang they make will be felt in your stomachs.  & when such motions become regular so as to not worry you, the machine will be one minute to midnight. 

With engine belts breaking free and gears stripping loose, the machine, which buys and sells people, will come to a violent end, and that "commodity", manpower, which will then be without master, will roam the streets- bloody pitchforks in mind.

Wed, 10/24/2012 - 21:50 | 2917453 seataka
seataka's picture

Nice read. thank you and if I may say: nested metaphors are so sexy

 

Wed, 10/24/2012 - 22:35 | 2917500 Muppet of the U...
Muppet of the Universe's picture

no that was fail.  & this will be only minor fail.  Give me a day and I could write something nice, but I have beer and liqour to drink.  So this will suffice.

 

Behind the screen, with engine belts breaking free, and central gears stripping loose,

that agesless machine, which owns, buys, and sells me, will encounter that black goose.

 

Fuckit, I wrote something better. 

Jack led me around Wellington’s house, into parlors, libraries, dining rooms,
and socials, chancing upon illustrious faces and blue-ribbon brides- fictitious embraces by
Jekylls as genuine as their Hydes.  We laughed when we arrived, and snickered as we left,
remarking that none of them were akin to brothers, because not one mattered to the others.
Sickened by this circus, I downed Jack, one swig after another, until all the noise was
smothered.

 

Now see this shit is harder to do.  But I can't get paid for making something dope like this...  So I trade commodities b/c its the only entrepanuerism left, and I wonder why I feel empty at the end of the day...

Wed, 10/24/2012 - 22:36 | 2917612 Orly
Orly's picture

Dope, you say?

Wed, 10/24/2012 - 22:58 | 2917660 Orly
Orly's picture

I'm a big R L Stevenson fan, so I guess I just didn't get the whole Jekyll and Hyde thing.

Wed, 10/24/2012 - 23:12 | 2917692 Muppet of the U...
Muppet of the Universe's picture

well people in positions of power, money, general wealth...  They don't call themselves satanists, but they do follow the mentality.

Which is more closesly related to edward hyde.  But, the manner in which these people portray themselves is that of a civilized or decent man- there's your jekyll. 

So I say famous or wealthy faces and their trophy wives are not the jekyls they portray themselves as, but rather, self-involved, small minded, and heartless like mr hyde.

Reality be told, everyone is about as genuine as their hydes, b/c they all pretend to be good, but they would rather die than give a fuck about me.

& where my words lose you this song will pick up.  http://www.youtube.com/watch?v=4v4RXArgH-4

Thu, 10/25/2012 - 00:26 | 2917783 Heyoka Bianco
Heyoka Bianco's picture

You "feel empty at the end of the day" because you're a freakin' muppet! It's right there in your name! You should be thrilled not to have that hand up you, at least for a little while.

Wed, 10/24/2012 - 22:04 | 2917511 live free
live free's picture

Your reply reminds me of a book by Stephen King.. The Tower.... all machines from a once great land grind to a stop and the ones that remain or broken and slow... as a lone gunman wanders the earth to find out what heppened... taking on the "machines" of old and trying to find out how to stop it.

Kind of an interesting analogy for today... I should re-read those books after my other TEOTWAWKI books are finished lol.

Wed, 10/24/2012 - 23:18 | 2917701 delacroix
delacroix's picture

you've forgotten the face of your father.

Wed, 10/24/2012 - 21:28 | 2917406 SafelyGraze
SafelyGraze's picture

cw 4 times, stopping on 67

ccw past 67 twice, stopping on 82

cw past 82, stopping on 40

ccw, stopping on 09

listen for the click before moving the handle

do not run. act natural. let the ID badge do the work for you.

Wed, 10/24/2012 - 21:41 | 2917439 jeff montanye
jeff montanye's picture

and from a far more innocent time, before the battle of the somme,  http://en.wikipedia.org/wiki/A_Retrieved_Reformation

Wed, 10/24/2012 - 21:05 | 2917326 Alpo for Granny
Alpo for Granny's picture

Maybe there is a cold front coming in and they need to sew a little extra into their jackets?

 

 

 

Wed, 10/24/2012 - 22:28 | 2917596 GtownSLV
GtownSLV's picture

Check Chavez's basement. BOE audit minus 3 tons and counting.

Wed, 10/24/2012 - 22:42 | 2917624 AGuy
AGuy's picture

I will go out on a Limb and suggest this is in prepriation for Germany to return to the Deutschmark. Germany may have decided to repatriate its hard currency before making an announcement on fears that it may not be able to do so after it leaves the Euro.

Wed, 10/24/2012 - 20:55 | 2917298 Jam Akin
Jam Akin's picture

Hypothetically speaking, why wouldn't one recall all of one's gold from these centers of propriety?

Wed, 10/24/2012 - 21:03 | 2917324 sunaJ
sunaJ's picture

I may be slow, but you mean hypothecatingly speaking, right?

Wed, 10/24/2012 - 21:10 | 2917342 Alpo for Granny
Alpo for Granny's picture

I see what you did there, clever one. I green you!

Wed, 10/24/2012 - 23:54 | 2917748 Sabibaby
Sabibaby's picture

I wouldn't want my gold commingling with paper!

Wed, 10/24/2012 - 21:23 | 2917383 Jam Akin
Jam Akin's picture

You caught my drift perfectly, good sir!

Wed, 10/24/2012 - 23:13 | 2917695 Matt
Matt's picture

If you withdraw all your gold from the system, you will be punished. Bit surprised there havent been any repercussions for Germany. 

Thu, 10/25/2012 - 05:36 | 2917939 Urban Redneck
Urban Redneck's picture

The last thing Germany wants is a strong currency.

Wed, 10/24/2012 - 21:10 | 2917303 GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

Oh..! Somebody's central bank knows what's coming. First one out wins... the poor "Dragon family" still trying to sue for their bonds/gold.

 

Promissory notes don't get the respect they use too...

 

The international financing system/scam is going to become unglued.

Wed, 10/24/2012 - 21:39 | 2917434 Muppet of the U...
Muppet of the Universe's picture

First one to blink wins.

Wed, 10/24/2012 - 22:32 | 2917606 DoChenRollingBearing
DoChenRollingBearing's picture

@ GoodMorning

It's OK to say "first rat off the ship wins..."

Wed, 10/24/2012 - 20:58 | 2917308 Stuck on Zero
Stuck on Zero's picture

Did you ever think that Germany is anticipating the breakup of the European Monetary Union.  If that happened all the EU debts would go unpaid and Britain could claim the gold as repayment of some bond obligation.  Everything would fall back to the old maxim: "Possession is 9/10s of the law."

 

Wed, 10/24/2012 - 23:10 | 2917689 JLee2027
JLee2027's picture

You better believe when the music stops, Gold is staying put. If there's any left in London you mean.

Thu, 10/25/2012 - 00:06 | 2917760 WillyGroper
WillyGroper's picture

Had Chavez not repatriated, how would an EU breakup effect him? Other than outright theft.

Have a friend from VZ. He hates Chavez. Gets his panties in a wad when I tell him the man is VERY prescient.

Worlds 3rd largest oil reserves------hmmmmm, who's next? 

Thu, 10/25/2012 - 03:07 | 2917890 tyrone
tyrone's picture

Chavez is dying of C.

Wed, 10/24/2012 - 21:03 | 2917310 UP Forester
UP Forester's picture

A bar in hand is worth 50 on the books....

Wed, 10/24/2012 - 21:42 | 2917442 sunaJ
sunaJ's picture

Yes. That will be the new stock market. Owning paper will be the bet to make for those with money to burn. Wait. That's where we are now. And they own the government.

Wed, 10/24/2012 - 22:33 | 2917608 DoChenRollingBearing
DoChenRollingBearing's picture

@ UP  + 1

FOFOA would say that ratio is probably closer to 100:1.

Wed, 10/24/2012 - 21:01 | 2917315 callmestupid
callmestupid's picture

I am so glad I have been following  your site. If not I would'nt hear about everything you write about that isn't in the press! Maybe I won't be so stupid in the future. Great works. Get some sleep. 

Wed, 10/24/2012 - 21:14 | 2917363 Dapper Dan
Dapper Dan's picture

What is in the "press" these days ????

Already long ago, from when we sold our vote to no man, the People have abdicated our duties; for the People who once upon a time handed out military command, high civil office, legions? — everything, now restrains itself and anxiously hopes for just two things: bread and circuses.

— Juvenal, Satire 10.77–81

Wed, 10/24/2012 - 23:16 | 2917699 The Gooch
The Gooch's picture

"What is in the "press" these days????"

Half of Georgia Pacific's inventory and "Ben's special blend green no. 7 kosher ink™"

Silver (too) bitchez.

 

 

Thu, 10/25/2012 - 08:12 | 2918077 MillionDollarBoner_
MillionDollarBoner_'s picture

Ist das du, Angela?

Wed, 10/24/2012 - 21:02 | 2917316 ebworthen
ebworthen's picture

Physical posession just as true now as it was in 1939.

Tangible assets never go out of style, just wax and wane according to the belief in fiat database nothingness.

Wed, 10/24/2012 - 21:02 | 2917318 Boilermaker
Boilermaker's picture

CNBC 'NetNet' article stated it makes absolutely no difference if its there or not or if it'd all there...or not.

They said it only matters if they wanted to make watches.

No shit.

Someone have a link?

BTW....GO TIGERS!

Wed, 10/24/2012 - 21:31 | 2917397 Orly
Orly's picture

For your perusal...

http://www.cnbc.com/id/49540593

And the quote you referred to:

"The actual presence of the gold wouldn’t make a lick of difference unless, say, Germany’s central bank decided it wanted to start using the gold for some practical, non-monetary purpose like making watches."

This wasn't a quote from someone in the know for the article.  Apparently it is the opinion of the author, John Carney from NetNet.

:D

 

Wed, 10/24/2012 - 21:34 | 2917416 Boilermaker
Boilermaker's picture

See?! I ain't about no lie!

Wed, 10/24/2012 - 22:27 | 2917587 knukles
knukles's picture

Aaaaaarrraghhhhhhhhhhhhhhhhhhhhhhhhhhhhh!

That's just plain irresponsible.

Wed, 10/24/2012 - 22:19 | 2917568 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"BTW....GO TIGERS!"

LSU or Auburn (I'm in Louisiana)?

Wed, 10/24/2012 - 22:21 | 2917570 Orly
Orly's picture

Princeton, silly.

:/

Wed, 10/24/2012 - 22:22 | 2917577 Boilermaker
Boilermaker's picture

I literally meant actual tigers. They really should be allowed to run. It just seems right.

Wed, 10/24/2012 - 23:27 | 2917713 nofluer
nofluer's picture

I BEG your pardon. If the Tigers you refer to are the LSU Tigers, then I must needs offer a spelling correction. Properly written, the phrase is "GEAUX Tigers."

Thank you for your attendance. You are forgiven. (I didn't geaux there... but a close friend did.)

Thu, 10/25/2012 - 00:04 | 2917722 Orly
Orly's picture

That always irritated me, having half grown up in Louisiana.  "Geaux" is a plural form of some invented verb, so in essence you're saying, "Gos Tigers."

See?  Makes no sense.

:/

Thu, 10/25/2012 - 00:57 | 2917812 nofluer
nofluer's picture

"Makes no sense."

Ummm... who changed the rules? I didn't know anything had to make sense re: Acadians? (aka "cajuns.") Think of where they came from!!! And why! :-)

Thu, 10/25/2012 - 01:10 | 2917820 Orly
Orly's picture

From Acadia, Canada.  Why?  To get out of Quebec as soon as possible.

Thu, 10/25/2012 - 05:52 | 2917942 Urban Redneck
Urban Redneck's picture

It makes sense in French (or Spanish, Italian, Portuguese, German, etc.) English has a relatively simple verb conjugation methodology (but bad French is my blood, having lived in Genève and having a bunch of ancestors who quit Québec for Ville de la Nouvelle Orleans in the 1600 & 1700s).

Wed, 10/24/2012 - 21:03 | 2917321 ziggy59
ziggy59's picture

Will the trial be watched by more people than a DWTS finale?

Wed, 10/24/2012 - 21:06 | 2917331 Pancho Villa
Pancho Villa's picture

Gordon Brown was selling UK gold reserves from 1999 to 2002. And 940 tons of German gold are pulled from London in 2000-1.

Maybe the Germans were privately concerned about whose gold Brown was actually selling.

Wed, 10/24/2012 - 21:16 | 2917365 El Hosel
El Hosel's picture

Brown should take a lesson from JPM... Just sell gold that does not exist and call it good.

Wed, 10/24/2012 - 21:23 | 2917389 scatterbrains
scatterbrains's picture

Brown left a real big shit stain in his wake when he sold the peoples gold to himself through his secret *family*

Wed, 10/24/2012 - 21:32 | 2917411 LeisureSmith
LeisureSmith's picture

That's why they call it Browns bottom. He got the call, shat his pants and signed the order.

Wed, 10/24/2012 - 22:54 | 2917650 jackinrichmond
jackinrichmond's picture

at least brown only sold 1/2 of their gold.. canada sold all 1000 tons about the same time the imf was 'helping' them with their ecomony. 

Wed, 10/24/2012 - 21:09 | 2917339 Snidley Whipsnae
Snidley Whipsnae's picture

And the PBoC had this to say about that... deafening silence.

Wed, 10/24/2012 - 22:37 | 2917615 DoChenRollingBearing
DoChenRollingBearing's picture

Hey Snidley!  + 1

The Chinese are just being smart not saying anything, just keep stacking wealth.

Wed, 10/24/2012 - 21:09 | 2917341 Boilermaker
Boilermaker's picture

Hey, what's with these god damn pop up ads that show up at the bottom of my iPhone when on this site?

That's some annoying shit. Seriously.... Wal-Mart? I'm going to click the pop up to go to Wal-Marts site?

Wed, 10/24/2012 - 21:14 | 2917357 ziggy59
ziggy59's picture

I thought it me...i dont get walmart..homedepot and some insurance co...

Good luck opting out..

As good a chance as Ron Paul winning in 13 days

Wed, 10/24/2012 - 21:20 | 2917378 Boilermaker
Boilermaker's picture

Expedia now. Man, ZH selling out hard to the man.

Wed, 10/24/2012 - 21:24 | 2917393 Tyler Durden
Tyler Durden's picture

There are numerous other media venues that believe in wealth redistribution and getting something, or even everything, for free. Many of them even encourage you to complain when getting said free stuff.

Would you like to be pointed in their general direction?

Wed, 10/24/2012 - 21:27 | 2917403 ziggy59
ziggy59's picture

Uh oh... The Wrath of T.D. ...

Thats the sequel to The Wrath of Khan, no?

Wed, 10/24/2012 - 21:32 | 2917405 Boilermaker
Boilermaker's picture

No. But I did find a cheap flight to Reno and a sale on Faygo pop.

So, ZH is not only my source for news but also my ticket to big big savings.

Everybody plays, everybody wins.

Now...about that term life policy I've always had my eye on but never dreamed I could afford....

Wed, 10/24/2012 - 21:37 | 2917427 Orly
Orly's picture

I get Febreze, Ozarka water and Depends.  Ruckiree, all products I use daily!

:0

Wed, 10/24/2012 - 21:44 | 2917447 Boilermaker
Boilermaker's picture

ZH and Wal-Mart...

That's a marriage made in heaven. It just makes good old fashioned sense. Especially with all the 'Amerikkkans are fatties' articles.

Wed, 10/24/2012 - 22:28 | 2917589 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"ZH and Wal-Mart..."

Somehow there's a disconnect here:

<http://freecodesource.com/people-of-walmart/Women-Of-Walmart/>

Thu, 10/25/2012 - 04:19 | 2917916 merizobeach
merizobeach's picture

All you fags and your smart phones...  :-)

Wed, 10/24/2012 - 22:29 | 2917595 fuu
fuu's picture

Guilt by association meet guilt by association.

Wed, 10/24/2012 - 21:49 | 2917467 dogbreath
dogbreath's picture

That Fabreze smells worse than shit

Wed, 10/24/2012 - 21:50 | 2917473 Orly
Orly's picture

It's unscented.  And it works very nicely, thanks.

Wed, 10/24/2012 - 21:58 | 2917490 Boilermaker
Boilermaker's picture

I don't know what "Sams Choice" cola is. But, evidently it's all the taste at half the price!

That's just a no-brainer.

Wed, 10/24/2012 - 22:07 | 2917516 dogbreath
dogbreath's picture

Mind if i drop by and use the Bafroom when I'm in the neighborhood.

Thu, 10/25/2012 - 12:13 | 2918767 forexskin
forexskin's picture

good recovery

don't forget to look on the back of the faygo bottle fora chance to win an all expense paid trip to see the ICP at Gathering of the Juggalos tm.

Wed, 10/24/2012 - 21:33 | 2917418 unrulian
unrulian's picture

Actually, i doubt there are any media sites that offer anything truely for "free" as we all know when you get something for free you are the product

Wed, 10/24/2012 - 21:41 | 2917440 Tyler Durden
Tyler Durden's picture

Next time you are in a bank grab a bag of cash and walk out, using that logic. Just tell the SWAT you are the product.

Wed, 10/24/2012 - 21:53 | 2917463 sunaJ
sunaJ's picture

Is that this week's assignment, Sir?

Wed, 10/24/2012 - 21:52 | 2917480 Boilermaker
Boilermaker's picture

Yea, like NBA athletes not getting paid to play in the Olympics. I mean...really, they have kids to feed for cryin' out loud.

Wed, 10/24/2012 - 21:56 | 2917488 unrulian
unrulian's picture

shouldn't be a problem...worked exacltly that way for Corzine

Wed, 10/24/2012 - 22:02 | 2917507 Tyler Durden
Tyler Durden's picture

Bundling a few million for the president in advance helped

Wed, 10/24/2012 - 22:16 | 2917555 FEDbuster
FEDbuster's picture

Corzine is now just another MFG victim, due to his $225K MFG stock loss.

Wed, 10/24/2012 - 22:22 | 2917578 unrulian
unrulian's picture

We don't need SWAT in Canada; banks and gov't give the bags of cash freely...

Wed, 10/24/2012 - 23:01 | 2917669 IridiumRebel
IridiumRebel's picture

So it's like our Fed to BOA! Huh! Whodathunk?

Wed, 10/24/2012 - 23:04 | 2917673 samsara
samsara's picture

Tyler,   It's great to see you commenting a few times.   It would be great to see you do it more.

truly

Wed, 10/24/2012 - 21:39 | 2917435 Dr. Sandi
Dr. Sandi's picture

How's about a link to where I can sign up for some of those great discounts over at the Federal Reserve?

Wed, 10/24/2012 - 22:05 | 2917514 Boilermaker
Boilermaker's picture

Just keep checking back. It'll 'pop up' eventually.

Wed, 10/24/2012 - 21:46 | 2917459 JPM Hater001
JPM Hater001's picture

Sadly Tyler, they all think they should get all of this for free.

Donate people.  I have only donated once ($50 about 9 months ago out of 18) but I would recon thats one more than 90% of you.

Wed, 10/24/2012 - 22:13 | 2917550 Boilermaker
Boilermaker's picture

You mean like FaceBook?

Wed, 10/24/2012 - 21:50 | 2917475 Hulk
Hulk's picture

Hey TD, was that 50 tons per year a misprint and is that figure really 500 tons per year?

500 tons per year for 3 years would make more sense...

Wed, 10/24/2012 - 22:59 | 2917662 IridiumRebel
IridiumRebel's picture

100 years ago ppl would hunt for their food. You can't take your meaty paw and click the fuckin X in the corner? As soon a you do that ad is gone.

"We grow fat like the Romans."
-Grandad

Wed, 10/24/2012 - 23:08 | 2917686 Overfed
Overfed's picture

It's like bandwidth costs money or sumthin'! :-)

Do NOT follow this link or you will be banned from the site!