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Bundesbank's Official Statement On Where It's Gold Is (And Isn't)

Tyler Durden's picture




 

Three days ago, as a result of recent discoveries relating to Germany's official sovereign gold inventory, we asked a rhetorical question: "Why Did The Bundesbank Secretly Withdraw Two-Thirds Of Its London Gold?" There we presented the chonology of official disclosure regarding the whereabouts of German gold over the past decade, with an emphasis on its reclamation from London-based official vaults to the safety of the motherland, and left off with another open-ended statement that: "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." Nonetheless, the fact that Germany did this has opened a Pandora's box of unanswered questions, and even demands that Germany promptly demand delivery all of its gold - the second largest such hoard in the world only after the US - held abroad. Below is the official response by the Bundesbank.

Here is the gist::

We do not have the slightest doubt that our holdings in New York and Paris are also made up of the purest fine gold. We have at our disposal fully documented lists of the bars, and our partner central banks send us every year confirmation not only of the bars’ existence but also of their quality.

 

We had nothing but the best of experiences with our partners in New York, London and Paris. There was never any doubt about the security of Germany’s gold. In future, we wish to continue to keep gold at international gold trading centres so that, when push comes to shove, we can have it available as a reserve asset as soon as possible. Gold stored in your home safe is not immediately available as collateral in case you need foreign currency.

How about if you need collateral in your own currency, such as the de facto reserve currency of Europe, the DEM? Crickets?

The punchline:

Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system. The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.

And what otherwise would pass as Saturday Humor:

But, please: for years, our gold has been stored by the highly esteemed central banks of the United States, Great Britain and France without provoking any complaints whatsoever – not by just any fly-by-night operators. Part of the debate in Germany has veered somewhat towards the absurd.

In other words, German gold is being held hostage by the "highly esteemed central banks" of the US and the UK, due to the reserve currency status of the US Dollar, and apparently the British Pound. And the only way a central bank - read the Fed or the BOE - can extend a loan against gold-based collateral, is if said gold is already on location in the US or the UK.

Which of course, does not explain why Germany decided to withdraw two-thirds of its gold from London, as opposed to withdrawing none... or all, if indeed the logic above made sense.

But fear not: Buba has has nothing but the best experiences with its partners in New York, London and Paris, and as a result will gladly continue to allow them sole physical custody of Germany's gold.

Good luck, however, if Germany ever needs to repatriate said gold...

From the Bundesbank:

Gold reserves stored securely

Questions posed by DPA to Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank

How much German gold is stored in the United States, how much in Frankfurt and how much in Great Britain?

The Deutsche Bundesbank keeps part of its gold holdings in its own vaults in Ger-many, while other stocks of gold are stored at the central banks located in major gold trading centres. Specifically, these are

  • Deutsche Bundesbank, Frankfurt am Main: 1,036 tonnes (= 31%)
  • Federal Reserve Bank of New York (Fed): 1,536 tonnes (= 45%)
  • Bank of England, London: 450 tonnes (= 13%)
  • Banque de France, Paris: 374 tonnes (= 11%)

Isn’t storing gold abroad an expensive anachronism?

The New York Fed and the Banque de France also offer to store gold holdings for other central banks free of charge. The Bank of England charges warehousing fees amount-ing to roughly €500,000 per year. Storage in the Bundesbank’s own vaults, too, involves costs. Matters of cost, however, are not the sole consideration in determining the choice of storage facility. The usability of gold as a reserve asset and storage security are much more important. During repeated visits to New York, London and Paris, our internal auditors have satisfied themselves that the security precautions in place there meet the same high standards as those in Frankfurt.

What makes the Bundesbank so certain that German gold holdings are being stored securely abroad – even though, according to the German Federal Court of Auditors, these reserves have never been “physically inventoried and checked for authenticity and weight” by the Bundesbank itself or by independ-ent auditors?

At the beginning of the last decade, we brought 930 tonnes of gold to Frankfurt from London and subjected it to a painstaking inspection. Part of the gold was melted down in order to create new bars which conform with the “Good Delivery Standard” which is customary nowadays in gold trading. Of the 930 tonnes of gold, not one gram was missing. We do not have the slightest doubt that our holdings in New York and Paris are also made up of the purest fine gold. We have at our disposal fully documented lists of the bars, and our partner central banks send us every year confirmation not only of the bars’ existence but also of their quality. We receive confirmation of our gold reserves, measured in troy ounces. The Bundesbank has been drawing up its accounts on this basis since it came into existence. All external auditors have confirmed our accounting practices outright since then.

Why doesn’t the Bundesbank bring the gold back to Germany?

The reasons for storing gold reserves with foreign partner central banks are historical since, at the time, gold at these trading centres was transferred to the Bundesbank. To be more specific: in October 1951 the Bank deutscher Länder, the Bundesbank’s predecessor, purchased its first gold for DM 2.5 million; that was 529 kilograms at the time. By 1956, the gold reserves had risen to DM 6.2 billion, or 1,328 tonnes; upon its foundation in 1957, the Bundesbank took over these reserves. No further gold was added until the 1970s. During that entire period, we had nothing but the best of experiences with our partners in New York, London and Paris. There was never any doubt about the security of Germany’s gold. In future, we wish to continue to keep gold at international gold trading centres so that, when push comes to shove, we can have it available as a reserve asset as soon as possible. Gold stored in your home safe is not immediately available as collateral in case you need foreign currency. Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system. The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.

In the statement it issued on Tuesday, the Bundesbank said that it would “take up suggestions by the FCA wherever possible.” What does that mean specifically? When, and at what intervals, will Bundesbank auditors physically view the gold being held abroad?

The Bundesbank has decided to strive for a more balanced distribution of gold re-serve holdings at home and broad, thereby taking increased account of gold’s function of preserving trust and confidence. After all, reserve assets have psychological significance, so to speak. In the next three years, we will repatriate 50 tonnes of gold annually from New York to Germany. That will give us the opportunity to inspect these bars, melt them down and convert them into “Good Delivery Standard” bars. That will therefore be a sort of spot check. Moreover, we are currently in the middle of discussions about a further expansion of our rights to conduct audits in New York, London and Paris. But, please: for years, our gold has been stored by the highly esteemed central banks of the United States, Great Britain and France without provoking any complaints whatsoever – not by just any fly-by-night operators. Part of the debate in Germany has veered somewhat towards the absurd.

 

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Sat, 10/27/2012 - 17:06 | 2924349 JR
JR's picture

In other words, we are sorry we raised this red flag and have been put in our place.

Here are some telling comments in May to Spiegel Online’s Germans Fret about Their Foreign Gold Reserves from Lew Rockwell’s link this weekend: Did the NY Fed Steal Germany's Gold? A Lot of German Think So…

 On checking the vaults…

“A large portion of Germany's massive gold reserves are stored abroad, mainly in the Federal Reserve in New York. But are the bars really where they are supposed to be? A dispute has broken out over whether the central bank needs to check on its gold, or if Germany can trust its international partners.” -- sysop

http://www.spiegel.de/international/...833289,00.html

“sysop has made a good point in posting this. Given the U.S. federal government bureaucrats' history of stealing from their own citizens, why shouldn't Germans worry about the assets under the custody and control of these known thieves?”  --GeorgeHilbert

“GeorgeHilbert! The recent incident of MF Global absconding with their customers money, in direct violation of US Securities and Exchange Commission (SEC) regulations, as well as the regulators' refusal to even arrest John Corzine for that theft, shows there is no longer Rule of Law in the United States. Only a fool would trust any US financial institution these days. Hopefully Germany's leaders are not fools... “--Mark_Matis

http://www.lewrockwell.com/

Seeing is believing. - The Wise Man's Gold Axiom

Sat, 10/27/2012 - 17:35 | 2924401 Yen Cross
Yen Cross's picture

J.R. ( I'm voting for the lessor of 2 evils).  Rest assured, I'm building a "constituency".  

  The United States will lower her debt, and manufacture @ fair value again!

Sat, 10/27/2012 - 17:07 | 2924351 tony bonn
tony bonn's picture

what a flaming crock of shit....read james turk's analysis of where the gold went....it is kaput, history, finito...and the same can be said of the usa.....just like fucktards who still believe in the magic bullet theory about kennedy's assassination, so the same fucktards believe that the fort knox still holds so much gold.....it holds nerve gas and a few gold plated tungsten bars....and the same fucktards still believe that soetoro is a usa citizen....

Sat, 10/27/2012 - 18:00 | 2924447 toomanyfakecons...
toomanyfakeconservatives's picture

Shit fondue indeed! The world wants it's stolen gold back and that's what's behind the coming death of the petro-dollar. JFK warned us about times like these. We had better to arrest the bankster-politicans before the missiles fly.

Sun, 10/28/2012 - 01:59 | 2924874 willwork4food
willwork4food's picture

Arrest? OK. You go first.

Sun, 10/28/2012 - 02:43 | 2924898 adamas
adamas's picture

info@carl-ludwig-thiele.de

 

ask him directly

Sat, 10/27/2012 - 17:11 | 2924356 Silversinner
Silversinner's picture

First they ignore you,then they laugh at you,then they fight you

and then you win.Denial(ridicule) is conformation in this case.

Sat, 10/27/2012 - 17:13 | 2924360 evolutionx
evolutionx's picture

The Bundesbank's fear of Fed tungsten bars

In response to public pressure, the Bundesbank, the German central bank, now wants to bring "parts" of Germany’s gold reserves home and verify their authenticity. Is fear rife in Frankfurt of counterfeit gold bars from the USA which are actually made of tungsten?

 

http://www.mmnews.de/index.php/english-news/11133-the-bundesbanks-fear-of-fed-tungsten-bars

Sat, 10/27/2012 - 18:06 | 2924458 Haager
Haager's picture

"Mr. Bernanke, please excuse me to call you that late. We are in need for serial numbers of unmodified gold bars in the haul, for the simple reason that Germany wants to get some of their gold back into town. We expect that they will try to verify every inch of these bars.

...

What?

...

If I get you right here, nobody ever thought about the possibility that a minor nation would dare to check their reserves and therefore nobody made any notice about those modifications, the serial numbers and so on?

...

That's a lot of work.

...

So, we have the OK that we create some 50ton on new bars a year, just to please the Krauts?

...

OK, it's top-level."

 

 

Sat, 10/27/2012 - 17:15 | 2924363 Urban Redneck
Urban Redneck's picture

So the German gold is stored in the same lock box as the US Social Security fund and is being dutifully invested in Greek Retirees and German Banks, good to know everything is going according to plan.

Sat, 10/27/2012 - 17:22 | 2924374 nmewn
nmewn's picture

"Gold stored in your home safe is not immediately available as collateral in case you need foreign currency."

lol...wut?

You can't use stacks of euros for collateral? Why, whatever could the problem be with that? Seems we have an issue of trust at the very heart of Fiat Empire ;-)

Sat, 10/27/2012 - 17:46 | 2924423 Yen Cross
Yen Cross's picture

A voice of reason, from day1.

Sat, 10/27/2012 - 18:15 | 2924473 RiverRoad
RiverRoad's picture

And how about that "when push comes to shove" statement?  Kinda graphic.  Was there no more diplomatic way to say that?

Sat, 10/27/2012 - 17:27 | 2924387 Wakanda
Wakanda's picture

Bwaaaahahahahaha!  Ihren Wolfram im Big Apple sicher.

(Your Tungsten is safe in the big apple)

Sat, 10/27/2012 - 17:28 | 2924388 davepowers
davepowers's picture

the best part was 'But, please:...'

Sat, 10/27/2012 - 17:28 | 2924389 jmcadg
jmcadg's picture

My friend in another country holds my gold. That way if I need to use it I can .... Oh shit!

Sat, 10/27/2012 - 17:29 | 2924392 bugs_
bugs_'s picture

Might the Germans need to store some in Beijing?

Sat, 10/27/2012 - 18:45 | 2924507 tenpanhandle
tenpanhandle's picture

Might the german gold already be in Beijing?

Sat, 10/27/2012 - 18:56 | 2924517 mayavision2012
mayavision2012's picture

It could all be under the Dome of the Rock for all we know.  Hummm....

Sat, 10/27/2012 - 17:31 | 2924393 Goldilocks
Goldilocks's picture

Shirley Bassey - Goldfinger (Live at Royal Albert Hall)
http://www.youtube.com/watch?v=51Wg6k9cWhM (2:53)

Goldfinger
http://www.youtube.com/watch?v=MagCoUYvIXE (2:49)

Sat, 10/27/2012 - 17:34 | 2924397 Sophist Economicus
Sophist Economicus's picture

Translation:

Fed to Buba: 'You want us to keep floating your bankrupt banks dollar swaps, you better come up with a way to keep this gold here where we can see it."

Sat, 10/27/2012 - 17:36 | 2924404 q99x2
q99x2's picture

You can swim with digital certificates.

Sat, 10/27/2012 - 17:39 | 2924409 Stud Duck
Stud Duck's picture

Someone needs to explain to the Krauts what "getting Corzined" is!

Sat, 10/27/2012 - 18:01 | 2924448 Yen Cross
Yen Cross's picture

Some one needs to expain to the (Piigs) when to end the "SIESTA".

Sat, 10/27/2012 - 17:40 | 2924412 TN Jed
TN Jed's picture

I don't care what the details are, I just love it when CBs make Voldemort a public conversation.

Sat, 10/27/2012 - 17:41 | 2924414 Schmuck Raker
Schmuck Raker's picture

Hey, it's Germany...

They're too busy keeping track of their shit to worry about their gold.

Different strokes for different folks.

Sat, 10/27/2012 - 17:42 | 2924416 lasvegaspersona
lasvegaspersona's picture

and this is why the US golds its gold in London...for ease of trading..wait, what...

Sat, 10/27/2012 - 17:45 | 2924419 markar
markar's picture

After the crap Wall St. Sold their banks this statement of unequivocal trust? The Germans are bigger dupes that I thought

Sat, 10/27/2012 - 17:46 | 2924420 Money 4 Nothing
Money 4 Nothing's picture

Than explain what your working relationship with Morgan Crucible is?

Sat, 10/27/2012 - 17:47 | 2924424 Angus McHugepenis
Angus McHugepenis's picture

I buy all my furniture at IKEA and keep it stored there. Anytime I want to see my couch I just visit their showroom.

Sat, 10/27/2012 - 17:48 | 2924425 sasebo
sasebo's picture

is a bird in the hand still worth 2 in the bush?

probably nobody here that old ------ 

Sat, 10/27/2012 - 19:57 | 2924584 SILVERGEDDON
SILVERGEDDON's picture

A hand in the bush is worth more than two birds anywhere else. Common sense prevails.

Sun, 10/28/2012 - 02:06 | 2924877 willwork4food
willwork4food's picture

That would depend on whose bush it is in.

Sat, 10/27/2012 - 20:02 | 2924593 klockwerks
klockwerks's picture

sasebo, old enough and it is still a valid thought. I call it good old common sense

Sat, 10/27/2012 - 17:54 | 2924432 Rathmullan
Rathmullan's picture

Tomorrow's headline in some anti-statist newspaper somewhere (I wish):

SANDY TO CLAIM 45% OF GERMANY'S TOTAL GOLD RESERVES

Sat, 10/27/2012 - 17:54 | 2924433 Atomizer
Atomizer's picture

 

 

Debate 2000

Al Gore: Jim.. 'Under my care, I’ll put Medicare under an iron clad LOCKBOX'

 

These fools continue to spin the same peasantry [Wants & Needs]. Under a fractional reserve banking system creating money out of thin air, the Central Planners will desperately coach both parties to save themselves from loss of wealth and public image deprivation.

 

Sat, 10/27/2012 - 17:56 | 2924440 lasvegaspersona
lasvegaspersona's picture

I just realized what utter bullshit this is: if Germany needed gold stored elsewhare for rapid deployment they would keep it with the BIS!!

Sat, 10/27/2012 - 18:02 | 2924451 toomanyfakecons...
toomanyfakeconservatives's picture

The BIS has multi-trillion dollar liens pending over their stolen gold and non-payment of interest, so maybe not... http://www.scribd.com/fullscreen/93544415/LIEN-Affidavit-Against-Bank-of-International-Settlements-BIS-05-14-12

Sun, 10/28/2012 - 00:17 | 2924835 Non Passaran
Non Passaran's picture

That is absolutely laughable.
Please don't waste our time in the future.

Mon, 10/29/2012 - 11:27 | 2927923 toomanyfakecons...
toomanyfakeconservatives's picture

Central banks can't be put out of business and repossessed? 

Sun, 10/28/2012 - 09:25 | 2925050 Urban Redneck
Urban Redneck's picture

An affidavit is not a lien, and that document isn't even worthy of Yahoo Finance. The BIS, however, does not enjoy blanket immunity. The Brussels Protocol expands on the outline of international immunity expressed in the Hauge Convention. However, the very limited immunities of the BIS within the Swiss Confederation are governed by the Headquarters Agreement of 1987.

For example, if Germany runs into "issues" with the Federal Reserve Bank of NY returning the "German" gold, Germany could initiate a claim in the Swiss courts against the US Federal Reserve's gold on deposit at the BIS, depending on the specifics of the claim- the case would be argued either before a Swiss court or an international tribunal, but the Swiss-appointed arbitrator would be third (deciding) vote of an arbitral tribunal.

Mon, 10/29/2012 - 11:32 | 2927935 toomanyfakecons...
toomanyfakeconservatives's picture

Nations that had their gold stolen are going to get it back hook or by crook. Earlier this year, a cluster of liens and complaints against central banks filed in the Hague sparked the mass resignations and the limited arrests we've seen so far.

Sat, 10/27/2012 - 18:05 | 2924457 knukles
knukles's picture

 

Hah ha ha ha ha ha ha ha

Oh shit....
Then they'd really never know where the fuck it was.
Nobody even is quite sure who owns the BIS, who runs it, who's responsible to whom, who's on first, no he's in the gold vault.  The gold vault's on second.... no there is no gold vault.  So where's the gold?  The BIS has it.  So it's in their vault?  Who's they?  The BIS.  They don't have a vault, they keep it in London, Paris and New York. But you said the gold vault was on second.  That's right.  So the BIS's gold vault is on second?  No, they don't have a vault. 

The vaults are in London, Paris and New York!

Sat, 10/27/2012 - 18:41 | 2924501 samsara
samsara's picture

Oh,  I think we know.  A very informed source told us what it was about.

I think you will find the Red Shield is the controling partner....

Carrol Quigley - the bankers' plan

"The Power of financial capitalism had [a] far reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.

This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences.

The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks, which were themselves private corporations.

Each central bank sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world."

Carrol Quigley, Tragedy and Hope, 1966 - [Bill Clinton's mentor and Georgetown University professor]

 

Sat, 10/27/2012 - 22:01 | 2924741 knukles
knukles's picture

Bingo
Bingo
Bingo
And Redsheld was their Name O

That's the conspiracy betting fee sure......

Sat, 10/27/2012 - 22:37 | 2924766 samsara
samsara's picture

It's the process of correlating Names, Dates, Events, and other Facts from a wide variety of articles and documents.   Trying on different patterns, and scenarios.  Conspiracies have nothing do do with that. 

Sun, 10/28/2012 - 00:22 | 2924832 Non Passaran
Non Passaran's picture

Nobody is sure who owns BIS? Really?
Is that a variant of the Fed conspiracy?

I'm not saying the German gold is there for sure.
I simply do not care.
Should they prove it is accounted for, all the conspiracy nuts will lose last atoms of credibility.
In case it is gone, that's cool too because I happen to own some.

Sun, 10/28/2012 - 11:24 | 2925199 JR
JR's picture

The motive of conspiracy is power.

“Conspirators work in secret, they must make every effort to insure that their plans are not made public. The first task of a conspiracy, then, becomes that of convincing the people that the conspiracy itself does not exist.” -- A. Ralph Epperson, in his introduction to The Unseen Hand; An Introduction to the Conspiratorial View of History

“The Conspiracy’s one unchanging purpose has been to destroy all religion, all existing governments, and all traditional human institutions, and to build a new world order upon the wreckage they have created.”

Or, the way Franklin Roosevelt put it: “In politics, nothing happens by accident. If it happens, it was planned that way.”

Sat, 10/27/2012 - 18:12 | 2924467 Atomizer
Atomizer's picture

The Bank of International Settlements just pushes paper. They’re the queen bee in theorizing future ideologies in terms of blending monetary and government policies into one entity.

Sat, 10/27/2012 - 17:58 | 2924441 Yen Cross
Yen Cross's picture

 The gold is "radioactive". It's levered beyond belief.

 

 

 

 

 

Sat, 10/27/2012 - 18:04 | 2924446 Pseudo Anonym
Pseudo Anonym's picture

says one rothschild to another rothschild:

We have nothing but the best of experiences with our hofjuden partners in New York, London and Paris.  We do not have the slightest doubt that our holdings in New York and Paris are made up of the purest fine gold.

 what about your gold?  is it safe and pure?  do you know where it is?

Sat, 10/27/2012 - 18:07 | 2924460 knukles
knukles's picture

It's after 5 somewhere.  Do you know where your Gold is?

Sat, 10/27/2012 - 18:09 | 2924462 dumbfounded
dumbfounded's picture

Statment kind of sounds like Homer trying to lie to Marge ... seriously wtf ?!

Sat, 10/27/2012 - 18:09 | 2924465 Yen Cross
Yen Cross's picture

Net longs in (¥) increased.

Sat, 10/27/2012 - 18:17 | 2924475 Tony Rumjog
Tony Rumjog's picture

I would expect to see the Germans start buying gold in the open market and take delivery on settlement.  Look for upticks in settlements that are settled by physical delivery.

This may expose a paper and physical price split in the near future.

Sun, 10/28/2012 - 09:30 | 2925057 Urban Redneck
Urban Redneck's picture

The open market is dangerous (and shallow), it is far safer (and quieter) to engage in off-take agreements with either miners or refiners.

Sat, 10/27/2012 - 18:28 | 2924483 Atomizer
Atomizer's picture

 

 

Many carnival parlors have set up new mirrored rooms to protect themselves..

http://www.opensocietyfoundations.org/

http://www.georgesoros.com/

 

You will understand in time.

Sat, 10/27/2012 - 18:36 | 2924492 Abraxas
Abraxas's picture

What if all gold claimed is there in US and even more? US could drive the currency to the ground while acquiring half of the world in the process, and then when all of us think that China or bloody Russia will take over, BOOM! US dumps the dollar, comes up with 20 K + tons of gold, backs the new currency with it and starts a new 1000 year Empire based on that. Perhaps this is why they don't let the gold being audited. Perhaps, they know what they are doing. I don’t know, but neither does anyone else. All I know is accumulation while possible.

Sat, 10/27/2012 - 18:44 | 2924502 toomanyfakecons...
toomanyfakeconservatives's picture

The world wants it's "on deposit" (stolen) gold back and that's what's behind this sensation and behind the coming death of the petro-dollar. JFK warned us about times like these. We had better arrest the bankster-politicans before the missiles fly.

Sat, 10/27/2012 - 19:31 | 2924551 honestann
honestann's picture

This is only a start.  Anyone who has sold or leased physical gold they "store" will obviously return real, pure, physical gold when withdrawals are requested... up to the point when no more real, pure, physical gold exists.

This is exactly equal to the CLASSIC ponzi scheme.  The first to withdraw get their goods, but when lots of depositors withdraw... at some point... everyone sees the emporer has no gold.

Lesson to everyone: hold your own gold.

Sat, 10/27/2012 - 19:59 | 2924581 Angus McHugepenis
Angus McHugepenis's picture

+1 honestann - That is exactly what will happen. It will start with a few trying to claim the "physical" and once it runs out the late-comers will be rioting and wanting to know what happened to their gold/silver/whatever.

I recall many years ago in Ontario, Canada there was a pyramid scheme called "Women Helping Women" (pretty sure that was the name). This pyramid ran successfully for several years and those involved were all happy with it. But because it was illegal guess what happened?... the police finally busted them and shut it down!

Moral of the story: Even if you like your ponzi, the cops and banksters won't. Always get your cut before it gets shut down.

I'm going from memory here. Appreciate any clarification if anyone else remembers that.

Sat, 10/27/2012 - 19:35 | 2924556 Pumpkin
Pumpkin's picture

Can I get a contract with these dumbasses?

Sat, 10/27/2012 - 19:43 | 2924564 my puppy for prez
my puppy for prez's picture

Germany just forgot to hit the sarc button after it's "statement".  Germany is hoping the world will read between the lines and interpret this pronouncement as exactly what it is:  sarcastic humor designed to humiliate Benny-Boy and get his panties in a wad!  LOL

Sat, 10/27/2012 - 19:45 | 2924566 my puppy for prez
my puppy for prez's picture

Instead of a GOLDRUSH, it will be a GOLDRUN!

Yeeeeeehaaaaaaa!!!!

Sat, 10/27/2012 - 19:49 | 2924571 Bansters-in-my-...
Bansters-in-my- feces's picture

"Free storage" in U.S vaults.....

You know the old saying....

If it sounds too good to be true......

Watch out ........suckers.......!

Sat, 10/27/2012 - 20:12 | 2924608 Papasmurf
Papasmurf's picture

Next thing you know, they will offer interest on gold.

Sat, 10/27/2012 - 19:58 | 2924585 Bicycle Repairman
Bicycle Repairman's picture

At the FRBNY there is a room with four walls.  In the room is a pile of gold.  Each wall has a viewing window.  Separate corridors lead to each window.  Over each window there is a sign: "USA's gold", "Germany's gold", "France's gold" and "England's gold".

Sun, 10/28/2012 - 05:33 | 2924961 rufusbird
rufusbird's picture

Hey! It's all good! We'll just put DTC in charge of settlements!...

Sun, 10/28/2012 - 19:41 | 2926182 honestann
honestann's picture

Only 4 walls?  Not as bad as I thought!

Sat, 10/27/2012 - 20:05 | 2924598 FFox
FFox's picture

With all the gold issues (stricking miners, stopped production) in South Africa a thinking man would expect gold to easily punch through $2000.... and now add the concern that german gold is only a paper frigging entry that the sheep are supposed to believe is actually REAL HARD GOLD BARS (real money)!

Not to mention the PAPER (again illusion of real gold) GLD ETF that's fooling gold investors into thinking they actually own real gold!  Pulling those dollars away from the mining sector that mines the real thing!

Get out the bull shit grinders lads, as the spin masters attempt to keep gold from pushing over $1800 and tripping the buy machines that will also pull in investors buried in paper bonds (talk about a bubble)!

And the gold bars they do have.... how many are fakes!

Thus, a shift to investing in miners that are producing the real thing (gold and or silver). 

Also (seldom mentioned) are fake silver dollars, face silver rounds, and fake 100 oz. silver bars that add to the frauds that are taking place.... Plus the silver (SLV) ETF is also sucking in investors that (wrongly) believe they're investing in real silver!

The truth is starting to sneek through the banksters blocking devices lads!  Strap to f**k up! 

Sat, 10/27/2012 - 20:16 | 2924610 honestann
honestann's picture

The reason the central banks and their mega-bank owners are knocking the price of gold and silver down the past week is to take the psychological edge off the recent stream of "gold bullish" stories.  As long as the price drifts downward, the masses will not start buying physical gold in respond to these "gold bullish" stories.  The predators-that-be are very concerned their endless schemes can easily get away from them, and eventually they will.

Sat, 10/27/2012 - 20:46 | 2924647 RiverRoad
RiverRoad's picture

Right you are.  And they always knock the price down before they buy.

Sun, 10/28/2012 - 10:38 | 2925123 lakecity55
lakecity55's picture

Which is why I stocked up again, last week.

But, on the way back from the store, it fell off the truck. I went back to look for it, but is was gone.

Rats.

Sun, 10/28/2012 - 11:07 | 2925168 ItchyBeard
ItchyBeard's picture

You can always rehypothecate the receipt.

Sat, 10/27/2012 - 20:28 | 2924614 Monedas
Monedas's picture

Here's how you blow this BS out of the water !  Germany agrees to pay the storage fees for 20 more years .... just let us have our gold ! .... how could an honest bank not take that deal ?    If Germany can't convince it's own people .... I've got bad news for us feckless Americans .... we'll never see our gold !       As one poster mentioned .... the gold doesn't take up much space .... less than the volume of any of a thousand mid-western grain elevators .... it's not an impossible task .... it's very factible !   I'm from Missouri .... show me the fucking gold !   IFM .... SMTFG  !

Sat, 10/27/2012 - 20:26 | 2924615 Monedas
Monedas's picture

Germany dreads to push for a definitive answer to the question they've not dared to ask for 62 years .... I think they just got the answer they feared !      They are not "proud" of the answer they got ?

Sat, 10/27/2012 - 20:39 | 2924636 dolph9
dolph9's picture

Pretty sad from the people who once had the balls to take on the Jews, the British Empire, and the Soviet Union all at the same time.

Now they are reduced to begging for tungsten from New York.

Sun, 10/28/2012 - 09:20 | 2925046 dumbfounded
dumbfounded's picture

Nothing ballsy about sending unarmed civilians to the camps !

I'll agree on the rest ...

Sat, 10/27/2012 - 20:38 | 2924638 Bicycle Repairman
Bicycle Repairman's picture

The problem is people think they are here to take inventory, but they wandered into a game of three card monte by mistake.

 

Sat, 10/27/2012 - 20:42 | 2924642 ch25061
ch25061's picture

pay no attention to the .men at the levers behind the curtain nor to the gold not behind the curtain.

Sat, 10/27/2012 - 20:43 | 2924643 youngman
youngman's picture

I read this and the first thing that comes to my little mind is that I would want my gold in my hands and at my home...I think the little countries are seeing this too....there is going to be a drain...it will not be shouted out in the clock tower though...as every little country wants their gold first...and in a hurry...so ask for it but quietly...if and when they say they can not deliver...then shout it out...

Sat, 10/27/2012 - 20:45 | 2924646 uno
uno's picture

time for bob pisani to do his disasterous vault visit again this time holding a 'german gold bar'

Look for some distraction to happen, like a bombing in germany to change the subject

 something  along the lines of this article on infowars (bold part sums it up nicely):

 

 

Al Qaeda leader Ayman al-Zawahiri is calling on Muslims to kidnap Westerners, citing the success in the abduction of American aid worker Warren Weinstein in Pakistan.

In a two-part, more than two-hour video posted on jihadist web sites, al-Zawahiri called for the abductions as part of a vow not to “spare any efforts” to free Sheikh Omar Abdel-Rahman, the mastermind behind the 1993 World Trade Center bombing.

“God the great and almighty granted us success to capture the Jewish American Warren Weinstein,” al-Zawahiri said in the video posted Wednesday, according to the terror monitoring group SITE Intelligence.

Read full article

Editor’s note: Paul Watson wrote of Al-CIAda sock puppet Ayman al-Zawahiri in 2008:

 

Al-Zawahiri has a history of popping up at the most politically expedient times, most notably when he appeared right before State of the Union speeches two years running, to attack Bush’s policy in Iraq and allow him to use Al-Zawahiri’s words as a rallying call to prolong the occupation, following in the footsteps of Dick Cheney and former Press Secretary Tony Snow, who had compared troop surge skeptics to Al-Qaeda sympathizers.

 

 

 

Sat, 10/27/2012 - 21:04 | 2924672 steveo77
steveo77's picture

Nukers are short sighted, greedy, they want immediate gratification, they don't care about short term risks to others or long term risks to anyone.

And they get drunk on duty.    Drunk while operating the most dangerous thing on earth.  
Proof is here
http://nukeprofessional.blogspot.com/2012/10/booze-kills-nuke.html

And these drunks just arent the worker bees, these are the supervisors.

Nuke is too dangerous for humans.  

Sat, 10/27/2012 - 21:05 | 2924674 Wood
Wood's picture

Regarding the gold in French custody...I wonder what foreign currency would be issued for that collateral?

Sat, 10/27/2012 - 21:09 | 2924677 Yen Cross
Yen Cross's picture

All the "xau" is in a San Fernando Valley(porn capital) smelter. "Butt Plugs (r) US"  is living large.

Sat, 10/27/2012 - 21:28 | 2924700 flyonmywall
flyonmywall's picture

Possession is 9/10ths of the law, meaning you have to have it in your hand to actually own the item. The other 1/10th is who has the nuclear weapons, wins. Germany apparently has neither.

Therefore, they do not have most of the gold they say the do, nor do they have the force to take it.

Case closed.

Get physical, or stay home and whine, counting your worthless fiat.

 

 

Sat, 10/27/2012 - 21:33 | 2924706 nathan1234
nathan1234's picture

Their game is up once the lease and swaps expose their hollow lies.

The same gold would have many owners.

 

I guess lying about the assets of the country would be treated as treason and merit a death sentence.

 

 

Sat, 10/27/2012 - 21:35 | 2924711 americanspirit
americanspirit's picture

There is no physical gold in any of the central banks - it has all been given to China in exchange for China's purchase of the worthless paper of western central banks so that bankrupt western elites can keep themselves in power for a few more months/years until the whole thing falls apart at which point they hope, they pray that they and their families will be out of reach of the mobs.

Sat, 10/27/2012 - 21:44 | 2924721 Fix It Again Timmy
Fix It Again Timmy's picture

I've always relied on the kindness of strangers....

Sat, 10/27/2012 - 21:50 | 2924726 Antifederalist
Antifederalist's picture

By my count that is two denials.....

One more and it is a lock.

Sat, 10/27/2012 - 21:51 | 2924728 JLee2027
JLee2027's picture

Epic rant over at cuerzone over the vanished German Gold:

"It doesn't matter if those life boats really exist or not. The blueprint says they do and that is just the same as if they really are there!" -- Captain E. J. Smith, Master USS Titanic

lol. More:

http://curezone.com/forums/fm.asp?i=2001003

Sat, 10/27/2012 - 21:51 | 2924730 Never One Roach
Never One Roach's picture

"I do not have the slightest doubt my holdings are safe and secure in MFGlobal's 'segregated account.'"

Sat, 10/27/2012 - 22:09 | 2924747 Whiner
Whiner's picture

Yes. Unequivocally, yes. I am sure my old pawn shop has my Rolex and hasn't sold it, and having done business with him for years there's no need to check to see though the redemption date has passed.

Sat, 10/27/2012 - 22:11 | 2924749 Monedas
Monedas's picture

The gold has been:  1. Sold at times to depress gold prices and prolong the Ponzi !  2.  Given to poor countries through the IMF to kick start their central banks after the Great Reset !  3.  Given to our enemies by the IMF for the same precise reasons we gave fuel rods to North Korea !  Now what were those reasons ?

Sat, 10/27/2012 - 22:46 | 2924773 cynicalskeptic
cynicalskeptic's picture

A good amount of the European gold held by the NY Fed (as likely in their NJ op center now as at Liberty Street - Manhatttan is a high odds target) was stamped with the Reichsbank Nazi Eagle.   The Germans were methodical in staking their claim to all gold stores in occupied countries during WWII and those markings remained aftger the war when gold was sent to NY to make it easier to settle trade accounts (shifting bars from one national 'cage' in E vault to another.

Current German law forbiods display of the swastika - to the extent that even models of WWII aircraft sold in Germany cannot display this on box art or provide decals with the swastika.  

Perhaps Germany is keeping their gold overseas to avoid the 'embarassment' of taking possession of Nazi 'branded' gold bars - or avoiud the cost of resmelting them.

 

Hey... it's a more 'logical' reason than most of those provided.

Sat, 10/27/2012 - 22:58 | 2924784 alfred b.
alfred b.'s picture

 

        When one deposits money into a bank, he may think he still owns but be assured the bank will do with it what it pretty well please:  you will not be consulted, and will have access to it unless it decides to limit yr access to it.

         The same applies to gold.   Whoever has it in its possession will be using it as it sees fit and will deliver in whole or in part only when and if it chooses.

        Good luck to Germany and all the others lined up to recover the said gold.    As the man said 'Possession is 90% of the law'.

 

 

Sun, 10/28/2012 - 07:08 | 2924786 Supernova Born
Supernova Born's picture

We store it where we can't be expected to account for it.

Sun, 10/28/2012 - 07:11 | 2924797 Supernova Born
Supernova Born's picture

Dr. Zaius might suggest they might not like what they find.

Sun, 10/28/2012 - 10:30 | 2925111 lakecity55
lakecity55's picture

"Those Bastards! They finally did it! All the Gold. Re-Hyporthecated!"

(shakes fist at ruins of FED building).

Mon, 10/29/2012 - 23:56 | 2930371 Tompooz
Tompooz's picture

"(shakes fist at ruins of FED building)."

 

All radio-active!! Damn terrorists!!

Sat, 10/27/2012 - 23:33 | 2924806 Roark12
Roark12's picture

This is like playing one giant game of "Hot Potato" They just keep passing the potato around until the time runs out and the one left holding the potato is Royally Fucked

But, in this game anyone who passed the potato has a claim to the Potato, so they are all Fucked

Sat, 10/27/2012 - 23:47 | 2924808 cranky-old-geezer
cranky-old-geezer's picture

 

 

Wow, that's a lot of fuss over a "barbarous relic" that doesn't pay a dividend ...and you can't eat.

Pledge gold as collateral for loans?

Wall Street doesn't have to do that.  They can pledge any sort of worthless trash financial paper they want, and Bennie will loan full face value on it.

Hell, Bennie will buy that worthless shit outright from 'em, paying full face value plus fees and commissions.

So I guess they can bring all their gold home, go find the most toxic trash financial paper they can, and pledge it as collateral.

Sun, 10/28/2012 - 00:00 | 2924824 holgerdanske
holgerdanske's picture

During repeated visits to New York, London and Paris, our internal auditors have satisfied themselves that the security precautions in place there meet the same high standards as those in Frankfurt.

 

Is that what an auditor does? I thought they would check that the physical serial numbers of selected bars taken at random would match the serial numbers on a list, and ascertain that the bars selected were up to spec. But they didn't even get that far?

There is obviously some gold there, but it might well be the same lost, paraded to all investors as theirs.

So the scenario is that the gold at the back is really bricks, the gold in the front is in turn owned by whoever insists loudly enough to be admitted to see it.

Lying, thieving banksters!

This is becoming rediculous. Just get the lost inspected, and to all depositors, the ones taking their gold out first might get gold, the latter ones, bricks!

 

Sun, 10/28/2012 - 10:23 | 2925093 lakecity55
lakecity55's picture

The cunning FED put a different serial# on each side of the bars. Then, when country X comes in, it looks like it's all there. Then, they turn them over when the next auditors arrive from country Y.

 

Sun, 10/28/2012 - 12:40 | 2925369 WmMcK
WmMcK's picture

The "lots" are "lost" (or vice versa).

Sun, 10/28/2012 - 00:30 | 2924840 silverdragon
silverdragon's picture

And then when the Chinese announce they have 10,000 tonne of gold and get outsiders to audit it, the worlds central banks shit themselves.

 

Sun, 10/28/2012 - 10:20 | 2925086 lakecity55
lakecity55's picture

The Chicoms have 10,000# of gold-painted Tungsten.

On second thought, perhaps they sold fake gold all over the world and now have the only real gold.....

Sun, 10/28/2012 - 02:18 | 2924883 MarcusLCrassus
MarcusLCrassus's picture

"Oh, yes, you can believe us.  All that gold is there, to the last ounce.  And that's exactly why we refuse to audit it!"

Sun, 10/28/2012 - 02:44 | 2924899 Magnum
Magnum's picture

This is obviously a good time to buy physical gold.  Governments around the world are going to be calling in their gold stocks, for domestic storage, and there's a very high probability that the gold storage deal is another Madoff racket.  I wonder how much Chinese gold is stored in New York?  

Long infrared gold detection devices capable of locating the global gold hoard in Tel Aviv.

Sun, 10/28/2012 - 03:16 | 2924911 adamas
adamas's picture

OK the gold really is there , this video shows a man counting it , together with bar numbers.

idiot conspiracy theorists muttering at their computers cannot refute this evidence.

 

http://www.britishpathe.com/video/german-gold-reserves/query/Gold

 

 

Sun, 10/28/2012 - 03:52 | 2924920 foxenburg
foxenburg's picture

so the NY Fed has been given 3 years notice that they have to come up with 150 tons of the good stuff so that it can be inspected. they ought to be able to manage that.

Sun, 10/28/2012 - 03:52 | 2924921 foxenburg
foxenburg's picture

so the NY Fed has been given 3 years notice that they have to come up with 150 tons of the good stuff so that it can be inspected. they ought to be able to manage that. probably. 

Sun, 10/28/2012 - 05:22 | 2924958 frederic
frederic's picture

On http://beforeitsnews.com/gold-and-precious-metals/2012/10/gold-standard-... it is claimed that the world will return to a gold standard on januari 1st 2013. It was also mentioned by a wealth manager on the Flemish radio (Belgium). 

Do any one of you have some other confirmations of this ?

It is my understanding (limited, for sure) that this could/must mean that there would be a fixed price for gold (how much ?) with respect to at least one of the currencies (which ?)

Sun, 10/28/2012 - 10:17 | 2925085 lakecity55
lakecity55's picture

Isn't that the website claiming "Nibiru" is going to hit the earth?

And Comet Elenin was going to wipe out life with its poisonous gas "tail?"

The story has NO corroboration.

********************

OMG! A spirit guide just spoke to me thru my crystal! It's True! Gold is going to 1millionUS$!

Keep stackin'

Sun, 10/28/2012 - 05:40 | 2924963 Coldfire
Coldfire's picture

In other words, BuBa trusts, but doesn't verify. Is trottel le mot juste?

Sun, 10/28/2012 - 07:26 | 2924992 topspinslicer
topspinslicer's picture

They have that there fancy quantum variety of gold where it can be here and there at the same time -- very complicated stuff this gold is

Sun, 10/28/2012 - 21:05 | 2926378 el Gallinazo
el Gallinazo's picture

Yes, now modern physics and economics must deal with the paradox of Schrödinger's Gold.

Sun, 10/28/2012 - 07:41 | 2924995 Venerability
Venerability's picture

I'm not an expert on German politics and welcome further discussion here and elsewhere.

But it seems one of main outcomes of this is to embarrass Jens Weidmann, who is, I believe, slightly "Ryanesque." Note that he is much younger than the current main crop of German leaders and came from the IMF, rather than the rough and tumble of party politics.

I think this is a possible very positive campaign issue for Peer Steinbrueck and the SPD.

I don't believe Steinbrueck is the equivalent of Francois Hollande. But he would certainly work better with Hollande - and Monti -and Obama - and even Putin! - than Chancellor Merkel has.

The German populace just may be back at the point where they want a dramatic change.

It happens every so often, and 2013 may be the year it happens again.

Sun, 10/28/2012 - 08:18 | 2925009 Ghordius
Ghordius's picture

lol, my compliments for the eye to this little detail. yes, this might shut Jens Weidmann a bit up, for a while and this might just have been one of the purposes of the whole leak.

I personally think Peer Steinbrueck is much worse than the very media-exaggerated Hollande. We are talking about a guy similar to Gordon Brown without the positive Scot traits but with all negative German traits

Sun, 10/28/2012 - 09:15 | 2925040 Venerability
Venerability's picture

Duplicate comment.

Disregard.

Sun, 10/28/2012 - 09:12 | 2925041 Venerability
Venerability's picture

Thanks.

If you Fellas don't like Steinbrueck, I probably would.

Gordon Brown was badly hoodwinked a decade or so ago. To his credit, he seems to have admitted it quite publicly.

He's been positively Mensch-like in recent years.

 

Sun, 10/28/2012 - 12:54 | 2925169 Ghordius
Ghordius's picture

"you Fellas"? Meaning? I personally dislike Steinbrueck, not for his political opinions but for his glee at his party's repeated strong-arming of Switzerland for ideological reasons. There is a whole bunch of Germans Social-Democrats and Tax Department employees that love nothing else than making the German Tax Code ever greater, more exacting and supposedly "more just", and attack the Swiss Confederation for it's too liberal ways - particularly when they grant too much privacy protection to the individual, citizen or not.

I dislike the pettish way of how they go after their goals. bad for social democracy, having such dishonourable champions. Class Warriors of the worst kind.

Sun, 10/28/2012 - 08:18 | 2925008 tuttisaluti
tuttisaluti's picture

You can only be sure that your gold is there, when you repatriate all of it.

Das ist nur eine Alibi Uebung.

Sun, 10/28/2012 - 08:22 | 2925011 tuttisaluti
tuttisaluti's picture

US Dollars = Reserve currency backed by nukes

Sun, 10/28/2012 - 08:37 | 2925023 outofideas
outofideas's picture

I'm convinced the gold is at the NY fed, I've once seen a documentary about an ex-Stasi sociopath stealing it during a daring heist only to be stopped at the last minute by a NYPD detective, I think his name was McClane.

I'm pretty sure the TV wouldn't lie to me about these things, and although the documentary doesn't show it, I'm sure they put it back after the recovered it.

Sun, 10/28/2012 - 09:18 | 2925025 outofideas
outofideas's picture

double post for the win.

Sun, 10/28/2012 - 08:55 | 2925030 gratefultraveller
gratefultraveller's picture

Here is a report by Russia Today about a book written by the former head of the West German Military Intelligence claiming that a secret agreement exists between the Allies and the german government, with a contract to be signed by each new german chancellor that affirms as follows:

1. Allied control over the german media until 2099 or until an official peace treaty has been signed

2. The "chancellor act" that each new chancellor has to sign before he can be sworn into office

3. The seizure of the german gold reserves by the Allies

http://rt.com/usa/news/germany-us-pact-komossa/

A photocopy of a letter by the secret service informing the finance minister of the disappearance of a copy of said treaty, and the invitation to strongly deny its existance should it appear in public:

http://staseve.wordpress.com/2011/10/26/die-geheime-kanzlerakte-jeder-bundeskanzler-geschaftsfuhrer-der-treuhandverwaltung-unterschreibt-sie-in-washington/

 

Sun, 10/28/2012 - 09:29 | 2925033 Dr. Gonzo
Dr. Gonzo's picture

So the gold is all gone then? 

Sun, 10/28/2012 - 09:23 | 2925048 Pumpkin
Pumpkin's picture

The are really correct about not using fly by night operators.  They are dealing with true professionals.  They just had better ask themselves, "proffessional what"?

Sun, 10/28/2012 - 09:29 | 2925054 Dr. Gonzo
Dr. Gonzo's picture

The Bundesbank does have a point. I was going to buy my girlfriend a gold locket for her birthday but it made so much more sense to give her a piece of string she could wear around her neck with note saying 10 shares of GLD. Technicly I didn't even buy her any claims to gold but I might some day and I'm pretty much good for it as long as I can hit the lottery or make a big score at the casino. She's loves it and wears it all the time. Her girlfriends are so jealous. 

Sun, 10/28/2012 - 10:15 | 2925083 billsbest
billsbest's picture
The complete trail of Germany's stolen gold:

http://chasvoice.blogspot.com/search/label/Germany%27s%20Gold%20Reserves

 

Sun, 10/28/2012 - 10:21 | 2925090 muppet_master
muppet_master's picture

die kenyan Fuhrer:

"trust me your gold is safe"  = PRINT BABY PRINT !!! then SELL german gold BABY SELL !!

just like that previous ZH article about the vietnam banks selling their citizens gold...those fools were enticed to have the banks hold it bc they were paying them "dividends"...LOL !!

odummer enticed the Germans bc "its safe" with him !! ROFLMAO !!!

Sun, 10/28/2012 - 11:09 | 2925171 resurger
resurger's picture

This is bullshit! The gold will never come back

Sun, 10/28/2012 - 11:34 | 2925223 cosmyccowboy
cosmyccowboy's picture

http://www.youtube.com/watch?v=gZB57b3lPQE&feature=related

 

dont you lie to me, i get evil as a man can be!

Sun, 10/28/2012 - 13:12 | 2925427 coltek
coltek's picture

Why does Germany get a piece of paper saying the gold is there, with bar #'s and all?

 

Why can't they just trust them for ever? - They are as pure as the driven snow after all!

 

I wonder if they even know if the damned gold even reached the said repositories in the first place. It was probably a done deal between them all 60 years ago.

 

Who did Gordon Brown sell the gold to? Did it get delivered? Was it even there in the first place?

Mon, 10/29/2012 - 09:07 | 2927436 Bicycle Repairman
Bicycle Repairman's picture

"Who did Gordon Brown sell the gold to?"

The market.

Sun, 10/28/2012 - 13:53 | 2925497 robertocarlos
robertocarlos's picture

We don't need no gold!

Sun, 10/28/2012 - 14:20 | 2925534 wandstrasse
wandstrasse's picture

If Buba spoke the truth (no clue if, what, where, how much...) and acted accordingly (get everything on German soil, count and examine it) this would be the THIRD time that we Germans kick off a world war.

Sun, 10/28/2012 - 14:38 | 2925561 JR
JR's picture

And pay for it.

“The Germans are most familiar with 1921, but they tend to forget that the Weimar inflation was a result of Germany trying to pay reparations abroad. They were ordered by the Allied powers to print Deutsche Marks not for domestic spending, not to run a domestic deficit, not to rebuild Germany, not to employ labor, but to throw reichsmarks onto the foreign exchange market to obtain the foreign currency to pay the Allies, so that the Allies could turn around and pay the arms debts for what they bought from the United States before entry into World War One. It was the collapse of the foreign exchange that caused the hyperinflation, not domestic spending. And Germany’s hyperinflation was not cured by the central bank creating less money. It was cured by setting up a triangular flow of international payments. American bondholders would lend money to German municipalities that would issue bonds. The municipalities would receive dollars, and turn them over to the Reichsbank. It then would issue German currency against this for local spending – using the dollars to pay the Allies. The Allies would pay America, and that would keep the circular flow going. But to do this, interest rates had to be held down in the United States, to make German and other European borrowing more profitable for international lenders.”  – Professor Michael Hudson 08/2012

Sun, 10/28/2012 - 16:12 | 2925772 de Cosmos
de Cosmos's picture

Next they will announce that all of Germany's gold has been accounted for, tested and secured and is all in one big pot at the end of a rainbow.  Moreover, that rainbow is the very same one that the Bernanke and Draghi are sittiing on pushing on a string.

Sun, 10/28/2012 - 17:54 | 2925972 billsbest
billsbest's picture
90% of Dutch Gold Reserve Is Held Abroad
This could be a giant "Oh, Oh" for the Dutch people
Sun, 10/28/2012 - 21:23 | 2926418 nastaking
nastaking's picture

Microsoft may have announced Haipai i9377 Android 4.1 3G Smart Phone  for its

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