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It Will Take The Fed Seven Years To Deliver 300 Tons Of German Gold

Tyler Durden's picture




 

With the market yet another algo-controlled snoozer, programmed to close the S&P just green (as otherwise confidence in central planning may fail), the key things we learned today are as follows:

Obama proposed 23 "gun controling" executive actions, which do little to actually control guns - that part falls to Congress, where the proposal will be promptly killed - but which will add some $4.5 billion to US spending, and which will "push for further action on his health care law, including insisting on the kind of mental health coverage states must provide under their Medicaid programs."

The breakdown of the spending is as follows, per Weekly Standard:

  • $4 billion for the president’s proposal “to help keep 15,000 cops on the streets in cities and towns across the country.” (That is roughly $266,000 per police officer.)
  • $20 million to “give states stronger incentives to make [relevant] data available [for background checks] … “$50 million for this purpose in FY2014”
  • “$14 million to help train 14,000 more police officers and other public and private personnel to respond to active shooter situations.”
  • “$10 million for the Centers for Disease Control to conduct further research, including investigating the relationship between video games, media images, and violence.”
  • $20 million to expand the National Violent Death Reporting System.
  • $150 million to “put up to 1,000 new school resource officers and school counselors on the job.”

What can one say: politics, fully, theatrically and embarrassingly "endorsed" by the children sitting behind the president.

* * *

But the biggest news of the day comes from the official Buba announcement that, in its official capacity as a prudent central bank, it - as first of many - is looking to repatriate some 300 tons of gold from the New York Fed. That, however, is not today's news - that was Monday's news.

What is news is that courtesy of the supplied calendar of events in the Buba statement, it will take the Fed some seven years to procure Germany's 300 tons of gold. This is the same Fed that, in its own words, holds some "216 million troy ounces of gold" or some 6720 tons, in its vault 80 feet below ground level.

Putting the above in perspective, the amount of gold that Germany will have to wait 7 years for is shown in red. The amount of gold the Fed supposedly holds, is shown in yellow with a shade of tungsten. Why it will take the Fed 7 years to part with an amount of gold that is less than 5% of its total holdings is anyone's guess...

unless of course, the bulk of the gold in the column on the right has been rehypothecated numerous times to serve as collateral for countless counterparties, and it is no longer clear just who own what to anyone.

* * *

We can only wonder how many centuries it will take the New York Fed to deliver all the gold held by third parties in its vault, once the demand notices start rushing in...

For all those curious how the Fed itself describes the gold vault and its contents, can read more in the pamphet below:

 

 

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Wed, 01/16/2013 - 18:19 | 3159865 GubbermintWorker
GubbermintWorker's picture

April fools!

Wed, 01/16/2013 - 18:21 | 3159876 negative rates
negative rates's picture

I can deliver that gold in......3 days.

Wed, 01/16/2013 - 18:23 | 3159891 Pladizow
Pladizow's picture

"It Will Take The Fed Seven Years To Deliver 300 Tons Of German Gold"

Or 7 minutes to deliver 8000 tons of tungston!

Your choice Germany.

Wed, 01/16/2013 - 18:25 | 3159901 sotto
sotto's picture

I'm sure this will speed up delivery - or not:  http://economiccollapsenews.com/

Wed, 01/16/2013 - 18:28 | 3159922 Pool Shark
Pool Shark's picture

 

 

The reason for the delay is simple:

It will take them 7 years to mine and refine all that gold from scratch - given that there's nothing but gold-plated tungsten in the vaults...

 

Wed, 01/16/2013 - 18:32 | 3159944 AlaricBalth
AlaricBalth's picture

Germany wants their gold holdings repatriated to home soil. They have asked the French to return all of their gold, at a rate of 50 tonnes per year until all 374 metric tonnes are received.

The French have just commenced military operations in Mali. Mali is Africa's third largest gold producer. Mali, this past year, increased its gold production by just over 50 metric tonnes.

Is anyone else seeing the connection here?

I'm willing to bet that France does not have Germany's gold and the Bundesbank has given them a few years to mine it from Mali. Yet the Mali source must be secure, hence the military must make sure the gold flows.

Wed, 01/16/2013 - 18:41 | 3159987 11b40
11b40's picture

Yes....and the U.S. has just volunteered to help the French (connection) with their problems in Mali.  God knows, they will need some help, too.  After all, the CIA supplied units of insurrgent AlQaeda will have fried frog legs for lunch, and sauteed with garlic & butter for dinner.

Wed, 01/16/2013 - 18:45 | 3160008 flacon
flacon's picture

At least Germany is prohibited from using it's army. Just imagine an armed Germany. /s

Wed, 01/16/2013 - 18:57 | 3160057 Enslavethechild...
EnslavethechildrenforBen's picture

They're not getting mine.

Wed, 01/16/2013 - 19:07 | 3160099 Boris Alatovkrap
Boris Alatovkrap's picture

Over my dead teeth!

Wed, 01/16/2013 - 19:42 | 3160241 NotApplicable
NotApplicable's picture

Seven year itch?

Wed, 01/16/2013 - 20:25 | 3160403 economics9698
economics9698's picture

I bet Fed Ex could get it there in 2 days.

Wed, 01/16/2013 - 23:05 | 3160979 SafelyGraze
SafelyGraze's picture

something about that chart seems wrong ...

oh. right.

http://oi46.tinypic.com/2a65eu9.jpg

I think I found the problem.

Thu, 01/17/2013 - 08:53 | 3161680 francis_sawyer
francis_sawyer's picture

If I were the Germans ~ I'd just bomb Pearl Harbor again...

Thu, 01/17/2013 - 09:03 | 3161702 TerminalDebt
TerminalDebt's picture

They didn't say 7 years to deliver, they said 7 years to procure, that means buy it from somewhere else with fake money

Wed, 01/16/2013 - 20:30 | 3160410 GetZeeGold
GetZeeGold's picture

 

 

They....don't.....exactly.....have......it......per se.

Wed, 01/16/2013 - 20:30 | 3160426 old naughty
old naughty's picture

They...blame it on 787...belly not large enough.

Some re-construct necessary.

Wed, 01/16/2013 - 21:02 | 3160540 55 men
55 men's picture

Government work is always the slowest.

Wed, 01/16/2013 - 21:15 | 3160580 Doña K
Doña K's picture

Look out for a plane hitting the FRBNY and evaporizing the bulding and the gold with it. Corzined3 

Wed, 01/16/2013 - 21:18 | 3160592 Oracle of Kypseli
Oracle of Kypseli's picture

Germany should take out insurance on that building against fire and terrorism pronto.

Wed, 01/16/2013 - 21:38 | 3160645 GetZeeGold
GetZeeGold's picture

 

Insurance against default.

 

What a novel idea.

Wed, 01/16/2013 - 23:05 | 3160968 Muppet Pimp
Muppet Pimp's picture

threadjack:

Richard Fisher speaks about ending taxpayer liablility for TBTF among other topics. 

http://www.c-span.org/Events/Dallas-Federal-Reserve-Pres-Speaks-on-Insti...

dunno why tyler won't post it...it warrants a post imo

Mr. Fisher is a good man

Wed, 01/16/2013 - 21:41 | 3160670 Ima anal sphincter
Ima anal sphincter's picture

Get Larry Silverstein on it. He's got plenty of experience in those matters.

Wed, 01/16/2013 - 22:35 | 3160889 technicalanarchy
technicalanarchy's picture

but yet the pilots.passport will somehow survive.

Thu, 01/17/2013 - 06:50 | 3161574 CompassionateFascist
CompassionateFascist's picture

U can say that again (fixed it for U)

Wed, 01/16/2013 - 22:35 | 3160890 technicalanarchy
technicalanarchy's picture

but yet the pilots.passport will somehow survive.

Wed, 01/16/2013 - 21:57 | 3160746 secret_sam
secret_sam's picture

Actually, a better bet would be to load uh...like HALF of it....on a 787 TOMORROW and uh...like, fly it right over. 

We got indemnity, right?  RIGHT?!?!

Wed, 01/16/2013 - 21:09 | 3160559 SafelyGraze
SafelyGraze's picture

"The reason for the delay is simple: It will take them 7 years to collect all that gold from US citizens - given that most citizens no longer own any gold ..."

if only there were a way to collect it from foreigners

Wed, 01/16/2013 - 22:22 | 3160847 DeadFred
DeadFred's picture

Rumor is the aircraft carriers sitting off Iran's coast have raised anchor and are heading in the direction of India. /s

Thu, 01/17/2013 - 07:22 | 3161598 Anasteus
Anasteus's picture

This article from Stephen Leeb explains a lot

Why It’s Taking 7 Years For Gold To Be Returned To Germany

Wed, 01/16/2013 - 19:02 | 3160079 earleflorida
earleflorida's picture

germany and italy have just recently offered transport and logistic support... and yes the USSA is also got its nose under the tent, offering various nsa cryptic/logic cyberspace expertise. where to next?--- if you'd guess'd algeria your half way there, but, libya might implode into a sirocco of unimaginable consequences?

jmo

Wed, 01/16/2013 - 19:06 | 3160093 ShankyS
ShankyS's picture

Well they best not be flying that gold back on any Boeing jets.

Wed, 01/16/2013 - 20:00 | 3160314 The Gooch
The Gooch's picture

Dreamdiver.

Wed, 01/16/2013 - 21:45 | 3160689 unrulian
unrulian's picture

+1

Thu, 01/17/2013 - 07:32 | 3161607 GetZeeGold
GetZeeGold's picture

 

 

I'll take the third one from the left. You can have the rest.....you're welcome.

Wed, 01/16/2013 - 22:57 | 3160948 duo
duo's picture

I hope somebody is working on a "Downfall" parody about this.

Thu, 01/17/2013 - 06:13 | 3161553 Cap Matifou
Thu, 01/17/2013 - 08:45 | 3161666 Confused
Confused's picture

If I'm not mistaken, they are allowed to use an army......as it relates to NATO interests.

 

Wed, 01/16/2013 - 19:28 | 3160186 topshelfstuff
topshelfstuff's picture

so its apparently gold not yet mined that will try to satisfy this Demand

how many recall several years ago when the words "Deep Storage" was added to our Gold accounting...makes sense now

Wed, 01/16/2013 - 19:40 | 3160232 NotApplicable
NotApplicable's picture

Yeah, why don't they just give them that gold.

"Here's the deed. Start digging!"

Wed, 01/16/2013 - 20:10 | 3160360 rehypothecator
rehypothecator's picture

"There are two types of countries in the world.  Those who print the world's reserve currency, and those who dig.  You dig."

Thu, 01/17/2013 - 00:13 | 3161158 MrPalladium
MrPalladium's picture

The good, the bad, and the ugly!!

Thu, 01/17/2013 - 06:15 | 3161556 RafterManFMJ
RafterManFMJ's picture

A gold mine is a hole in the ground with a liar on top. - Sam Clemens

Wed, 01/16/2013 - 18:44 | 3159997 ParkAveFlasher
ParkAveFlasher's picture

"Mon dieu, it eh appears I've lost my gold.  Do you eh accept Alsace-Lorraine?"

Wed, 01/16/2013 - 18:53 | 3160037 CH1
CH1's picture

There's a LOT of rehypothecation to unwind. That takes time!

 

Wed, 01/16/2013 - 21:26 | 3160620 walküre
walküre's picture

Yes that's the most reasonable explanation.

However this action is potentially very bearish for the price of gold in Dollar terms as the Fed might use the attention to crash the price of gold in order to fill the order cheaper.

We may not see much appreciation over this time of 7 years and that may be the real reason for the delay.

Buba and Fed and ECB and BOJ are all fucked, fucked, fucked!!!! They have to contain hyperinflation at all cost!

Depending on how the people will react to this latest action from the man behind the curtain, we could see a financial collapse due to a complete and utter loss of faith in all things paper very quickly.

The man behind the curtain is showing a hand that shouldn't be seen.

Wed, 01/16/2013 - 22:01 | 3160760 fourchan
fourchan's picture

lol im sure my ounces will look on with bemusement unfazed.

Wed, 01/16/2013 - 19:07 | 3160100 CheapBastard
CheapBastard's picture

Taxpayers foot $222,000 bathroom renovation for (former) interior secretary

 

 

http://news.yahoo.com/blogs/ticket/taxpayers-foot-222-000-bathroom-renov...

 

A gold toilet seat?

Wed, 01/16/2013 - 23:41 | 3161077 Spastica Rex
Spastica Rex's picture

A refrigerator? In a bathroom?

Thu, 01/17/2013 - 00:28 | 3161186 geekgrrl
geekgrrl's picture

No, not according to the photos. That's a $22,000 bathroom + $200,000 in someone's personal bank account. It's only 100 square feet, and it's not that impressive. Clearly the money did not go into the bathroom.

I do notice that there is a set of sub-zero refrigerator/freezer drawers that cost $3,590.35. Very unusual.

Thu, 01/17/2013 - 01:18 | 3161286 geekgrrl
geekgrrl's picture

The numbers don't add up. From the article you linked:

"The photos show wall panels were installed that cost about $1,500. Other features include a sub-zero refrigerator, costing about $3,500, custom cabinetry at a cost of about $2,600, a faucet which cost $689 and even a "vintage tissue holder" that cost $65."

So 1500+3500+2600+689+65 = $8354. What's left? The toilets (2), shower, tilework, and lighting. Being generous, call the toilets $500/, shower at $2k, tilework at $10k, lighting at $1k and you come up with $22,354. Now let's double that figure to $45k to cover labor. There is no way, none whatsoever, that that bathroom actually cost $222,000. This is not a matter of "luxurious spending," as the article claims, it's a matter of theft. The money went somewhere, and it wasn't in this bathroom.

Thu, 01/17/2013 - 01:12 | 3161268 PhD
PhD's picture

Well, Bernake flushes 327,000 dollars on worthless MBS every fucking second in the monthly 85 billion dollar QE3 spendings.

Wed, 01/16/2013 - 20:03 | 3160327 frenchie
frenchie's picture

i vote for ! (Elsasser)

Wed, 01/16/2013 - 19:09 | 3160108 SpanishGoop
SpanishGoop's picture

And the French are going to pay for that Mali's gold with what ? euro's they don't have ?

Don't think Mali will accept euro's. France colonising again ?

 

Wed, 01/16/2013 - 19:16 | 3160129 knukles
knukles's picture

Pay?
Hows about spoils of war.

Wed, 01/16/2013 - 19:11 | 3160114 TyrannoSoros Wrecks
TyrannoSoros Wrecks's picture

Interesting theory if true.
50 tons of gold is what, $3 billion?
So the question is which is cheaper, war in Niggeriastan or placing an order through Goldline.com?

Wed, 01/16/2013 - 21:59 | 3160753 secret_sam
secret_sam's picture

The futures market has this totally priced in.

Wed, 01/16/2013 - 22:30 | 3160878 DeadFred
DeadFred's picture

The somber thought I just had is what is the best way for them to get the gold out of the market cheap? Make people want to (or need to) sell. I can think of several ways they could do that but none are pretty.

Wed, 01/16/2013 - 23:40 | 3161073 secret_sam
secret_sam's picture

I think it's really just the abstract point.  Is someone prepared to try to threaten the political stability of EUR/USD?  We all know there's major governmental drag on certain commodity prices.  Opinions vary widely on exactly what that drag is, but whatevs.

Thu, 01/17/2013 - 07:34 | 3161610 GetZeeGold
GetZeeGold's picture

 

 

The futures market has this totally priced in.

 

Tomorrow never comes....hell of a title for a James Bond movie.

Wed, 01/16/2013 - 23:48 | 3161089 DoChenRollingBearing
DoChenRollingBearing's picture

How about the Treasury just offer to buy ANY AND ALL GOLD for an arbitrary high price, say $10,000 / oz.  That would set a worldwide price floor for gold.  Next stop would be Freegold.  And our gold would be worth so much more, that we could easily pay down our debt, and deliver to Germany the gold that belongs to them.

Winners: physical gold owners

Losers: non-gold owners affected by hyperinflation

Thu, 01/17/2013 - 04:57 | 3161499 mt paul
mt paul's picture

afrostan

might have been more politicly correct...

Wed, 01/16/2013 - 19:30 | 3160194 Mr Pink
Mr Pink's picture

That would also give the US 7 years to "liberate" Iran's 500 tonnes

Wed, 01/16/2013 - 20:39 | 3160467 eduard khil
eduard khil's picture

It's in the Mali...er...the Mail.

Wed, 01/16/2013 - 22:21 | 3160844 Buck Johnson
Buck Johnson's picture

It's getting clearer and clearer that this "war" to liberate Mali (why not Yemen or Syria) is being done to get at Mali's gold and resources because in the rest of the world France and the US would have to buy gold and it would send gold soaring and destroy the paper currency.  If Germany truly thinks they are getting a their gold they have another thing coming trust me.

Wed, 01/16/2013 - 22:25 | 3160859 Freddie
Freddie's picture

The Germans (and the Dutch) do not trust a race hustling muslim marxist and the French

Wed, 01/16/2013 - 23:49 | 3161092 DoChenRollingBearing
DoChenRollingBearing's picture

Who would?  Wait, don't answer that...

Wed, 01/16/2013 - 22:26 | 3160863 andyupnorth
andyupnorth's picture

That's the type of information that I wish the mainstream media would pick up on... or at least Jon Stewart on the Daily Show...

Thu, 01/17/2013 - 11:32 | 3162319 DontNeedNoStink...
DontNeedNoStinkinUsername's picture

Hmm . .Mali with 80.something % of their countries income derived from Gold mining just gets invaded by france who has to give Germanys gold back . . . . Not haerd to see where the gold is coming from !!??!!

Wed, 01/16/2013 - 18:56 | 3160051 Piranhanoia
Piranhanoia's picture

And it will only cost $5 an ounce to get it out of the ground.  According to someone.

Wed, 01/16/2013 - 19:16 | 3160133 Zap Powerz
Zap Powerz's picture

Id be willing to sell them mine for 10,000/oz....you know, if I had any.

Wed, 01/16/2013 - 19:40 | 3160230 Muddy1
Muddy1's picture

Your canoe tip over?  Dang, I hate when that happenz.

Wed, 01/16/2013 - 20:07 | 3160339 Terminus C
Terminus C's picture

MathMan bitchez!

Wed, 01/16/2013 - 21:51 | 3160713 akak
akak's picture

"And the shit is everywhere!"

Wed, 01/16/2013 - 19:46 | 3160253 krispkritter
krispkritter's picture

I took a quick swipe at that subject the other day, Hitler Learns German Gold is Tungsten: 

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

(Took all of 15 minutes and a single cup of coffee, which explains spelling and grammar...see About.)

Wed, 01/16/2013 - 21:09 | 3160556 BTFDemocracy
BTFDemocracy's picture

Why is this not top-voted comment?

Wed, 01/16/2013 - 22:05 | 3160780 secret_sam
secret_sam's picture

agreed.  +1 and +1

Wed, 01/16/2013 - 22:51 | 3160929 AlaricBalth
AlaricBalth's picture

That was incredibly well done. I couldn't stop laughing.
+100

Thu, 01/17/2013 - 00:43 | 3161217 tip e. canoe
tip e. canoe's picture

"if Draghi had balls, I'd crush them like grapes!"

hahaha

Wed, 01/16/2013 - 21:14 | 3160572 rguptatx
rguptatx's picture

Down here in Texas, we cal it "marinated', not "plated" in gold.

Wed, 01/16/2013 - 23:56 | 3161102 merizobeach
merizobeach's picture

"It will take them 7 years to mine and refine all that gold from scratch"

My first thought also.  Sprott recently described ordering delivery on his 'allocated' silver: the serial numbers didn't match, as the production dates were from after the delivery order was placed.

Thu, 01/17/2013 - 00:48 | 3161224 bagehot99
bagehot99's picture

Why would they give the Fed 7 years to 'find' this gold? If its been re-re-re-hypothecated, they'd want their bullion NOW - possession being nine tenths of the law. I agree this is weird, I just don't think it's about missing gold. I think it's about a total lack of faith in our central bank - the BuBa is the only 'serious' central bank left in town. Ok, Swiss too. 

Thu, 01/17/2013 - 01:45 | 3161327 AE911Truth
AE911Truth's picture

The reason for the delay is simple:

It will take them 7 years to mine and refine all that gold from scratch - given that there's nothing but lien encumbered gold in the vaults subject to cease and desist orders.

http://www.scribd.com/Free_Nations/documents

Thu, 01/17/2013 - 06:59 | 3161585 samwell
samwell's picture

why do you think France is invading Mali?  8th largest producer of gold on the planet in 2006!  confirmation that they don't have the German genuine shit! 376/8=47 tons/yr.  Mali annual production in 2006=85 tons.  

action plan for international zionist movement:  Invade Mali  (have french and US people pay for it, of course), plunder their natural resources and loadstone of Au.  Shuttle a good portion of the Au proceeds to Deuchland and pocket the change.

money junkies are hard up now don't you know it.

 

Voila!

Wed, 01/16/2013 - 18:34 | 3159912 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

7 years to git er done - that is cuz it is a union shop

So, I'm wondering, where will the US confisc, er, procure this 300 tons of gold?

Wed, 01/16/2013 - 18:39 | 3159969 Almost Solvent
Almost Solvent's picture

WW2.1

Wed, 01/16/2013 - 20:09 | 3160349 James-Morrison
James-Morrison's picture

Maybe The FED should adopt Herman Cain's Nein-Nein-Nein plan

Thu, 01/17/2013 - 01:44 | 3161321 TPTB_r_TBTF
TPTB_r_TBTF's picture

 

 

It's time to negotiate a Peace Treaty for WWII.  There is no peace treaty with Germany!

I suggest setting war reparations at, ... umm?, ... 300 Tonnes of Gold.

Wed, 01/16/2013 - 19:08 | 3160103 Esso
Esso's picture

Eh, 300 tonnes of gold ain't shit. Hell, ZHers lose that much per week in boating accidents.

Thu, 01/17/2013 - 00:18 | 3161171 Joy on Maui
Joy on Maui's picture

I almost needed a fresh "Depends" after that one!

Wed, 01/16/2013 - 20:19 | 3160390 HardlyZero
HardlyZero's picture

Maybe the Fed can borrow the Gold from the French ?  Or if the French are also tapped out maybe the Fed can loan the Gold to the French first, before they loan it back to be shipped to Germany by Fedex (in a few years) ?

Wed, 01/16/2013 - 22:29 | 3160871 Freddie
Freddie's picture

The US will confiscate Americans gold right after they take your guns.  Nice job Obama voters and you know you are posting here you CS'ers.

Wed, 01/16/2013 - 18:58 | 3160062 max2205
max2205's picture

I get it

This is really about wasting more money on cops and pensions

 

 

 

Wed, 01/16/2013 - 18:59 | 3160067 The Gooch
The Gooch's picture

It will take seven years to conquer Africa?

Wed, 01/16/2013 - 21:58 | 3160752 Joe moneybags
Joe moneybags's picture

I think that the article's headline is transposed:  it should have  read "It will take the Fed 300 years to deliver 7 tons of gold to Germany".

Wed, 01/16/2013 - 18:23 | 3159893 BoNeSxxx
BoNeSxxx's picture

I am confused... did the Germans ask for their gold today and the Fed said they have to wait 7 years for it?

Or

Did the Germans say they wanted it delivered over the next seven years?

Because there is a HUGE difference between the two...

Wed, 01/16/2013 - 18:31 | 3159936 wee-weed up
wee-weed up's picture

Makes no difference...

He who has the gold makes the rules!

Wed, 01/16/2013 - 18:38 | 3159946 wee-weed up
wee-weed up's picture

And if no one is allowed to prove he doesn't have the gold...

he still makes the rules!

Wed, 01/16/2013 - 20:11 | 3160363 Dre4dwolf
Dre4dwolf's picture

Not true, he who has the gold makes the rules, but he who has the gun takes the gold.

 

o..

 

... wait.

Wed, 01/16/2013 - 20:22 | 3160396 HardlyZero
HardlyZero's picture

We need to develop a new commodity based rock-paper-scissor game updated for the modern meme.  Does an 'un-g*n' trump a un-gold ?  Or is that a UN-g*n or UN-gold (in state dept. speak).

Wed, 01/16/2013 - 18:32 | 3159945 busted by the b...
busted by the bailout's picture

don't confuse us; it's more fun this way.

Wed, 01/16/2013 - 18:47 | 3159965 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

They work these sorts of matters out before the press releases.  Angela said she wanted the gold now. Barack said lump sum delivered 30 years out.  Angela threatened to disrobe in front of him right der in die Oval Office, and Barack quickly agreed on delivery over 7 years.

Wed, 01/16/2013 - 19:36 | 3160214 willwork4food
willwork4food's picture

That would almost be as bad as Hillary Clinton disrobing. Almost.

Ewww. The horror.

Wed, 01/16/2013 - 18:39 | 3159968 SilverIsKing
SilverIsKing's picture

GERMAN: Bernanke, bitte liefern Sie mir 300 Tonnen des besten deutschen Gold. (Bernanke, please ship me 300 tons of your finest German gold.)

BERNANKE: Ummmmm, sure.  When would you like me to ship it?  I can have it shipped to Frankfurt or Berlin if that works for you.

GERMAN: Ich will das Gold viel früher. Wie wäre es mit dem Ende des Monats? (I want the gold much sooner.  How about the end of this month?)

BERNANKE: Well, see that's a problem.  I can probably get the transportation at any time but I need time to retrieve the gold.

GERMAN: Wie viel Zeit brauchen Sie. Einen Monat, zwei Monate? (How much time do you need?  A month, two months?)

BERNANKE: Probably about 7 years.

GERMAN: Das ist lächerlich. Ich sollte nicht warten, 7 Jahre dafür. Wo ist das Gold? (That's ridiculous.  I shouldn't have to wait 7 years for this.  Where is the gold?)

BERNANKE: Listen here Freund, if you don't agree to wait 7 years, you're not going to get any gold.  What are you going to do about that?

GERMAN: 7 Jahre ist perfekt (7 years is perfect)

 

So to answer your question, the Germans said they wanted it delivered in 7 years.

Wed, 01/16/2013 - 22:09 | 3160795 secret_sam
secret_sam's picture

This strategery can only work until the US dollar collapse, tho.  Heh heh...

Thu, 01/17/2013 - 04:00 | 3161464 old naughty
Wed, 01/16/2013 - 18:39 | 3159971 Biosci
Biosci's picture

The latter.  But don't let the facts get in the way of a good story.

Wed, 01/16/2013 - 18:51 | 3160029 tenpanhandle
tenpanhandle's picture

you have the facts?

Wed, 01/16/2013 - 19:13 | 3160121 Biosci
Biosci's picture

There is nothing in the statement to suggest the former, so to assume otherwise -- and to get all spun up about it -- isn't justified.  Entertaining, but not justified.

Wed, 01/16/2013 - 20:24 | 3160402 HardlyZero
HardlyZero's picture

If they try to save on shipment and use a Slow Boat (to China, or Chinese chartered) will there be a boating accident ?

Wed, 01/16/2013 - 18:51 | 3160030 CH1
CH1's picture

It's all obfuscation for the sleeping masses anyway.

None of us knows what they actually said to each other.

Wed, 01/16/2013 - 19:29 | 3160189 knukles
knukles's picture

Bernak:  What?  No fucking way.  You and we both know that shit impossible.  Quit yanking my chain.

Kraut Banker: No, you're responsible for that shit, I got  a warehouse receipt..

Bernak:  That went through London, peckerhead.

Kraut:  Fucks that gotta do with it and don't give me that rehothecation horse turds, I got your receipt meaning it's your problem.

Bernak:  No.  There is no more you and me, it's our fucking problem.

K:  Why?

B: Because those fucking pansy assed queers in London lost the shit.

K:  Lost?  What the fuck..

B:  They lost it.  If you lost all that shit and had ugly smelly hairy toothless bags for women and even uglier men who dressed upa s women, you'd probably forget where you put all that gold, too.

K:  No, I want it now.

B: Fuck you

K: Fick dich

               And so the conversion meandered amicably about their respective realities as Ben reminded the Krauts that America won the war and the Krauts reminded Ben they make the cars, schnapps and have very muscular, blonde, blue eyed, twisted, perverted women named Hansel, Kristen and Squishy, thereby trumping the American position and agreeing to 7 years because the number reminded both of the Illuminati ritual child sex parties they're both attending at this year's Bohemian Grove celebrations, fick dich....

Wed, 01/16/2013 - 21:26 | 3160618 Raymond Reason
Raymond Reason's picture

It's obfuscated the hell out of me.  Why settle for 7 years, if they really want to be the first in line?  This 7 year lead time must be rather shocking to Netherlands et al.  Why announce any of this to the press? 

This seems to be a major breach of confidence in the global confidence game.  But for what purpose?  Is this a power struggle among the international crime families?  Truly the Brits own the US central bank, and there are centuries of bad blood between the Germans, Brits and Frenchies.   

Wed, 01/16/2013 - 22:11 | 3160803 secret_sam
secret_sam's picture

       for what purpose?

It takes a lil bit of awhile to start to imply some kind of suggestion of something unsavory like....currency conflicts...

(+1)

Thu, 01/17/2013 - 00:04 | 3161133 merizobeach
merizobeach's picture

"Why settle for 7 years, if they really want to be the first in line?"

Because the next central bank to ask for a single ton will have to wait 8 years.

Thu, 01/17/2013 - 06:56 | 3161580 Irelevant
Irelevant's picture

Vs. 1 - Electoral stunt by Merkel. Will get the votes, will revoke the deal, will say gold very well kept in NY and Paris.
Vs. 2 - Merkel wants to fuck Hollande hard, requests 350 tones of gold from Paris, Paris doesn`t have said gold, invades Mali.
Vs. 3 - Buba realizes the gold "isn`t" in the "deep storage vaults" of the NY Fed and Paris BdF. In order to avoid prosecution at home requests said gold, time frame of 7 years is set up as the gold, indeed, is not there.

Wed, 01/16/2013 - 20:03 | 3160330 Deacon Frost
Deacon Frost's picture

The facts are for 2012:

U.S produces 175 tons of Gold till Sep-2012

http://www.bullionstreet.com/news/us-produces-175-tons-of-gold-till-sep2012/3820

Wednesday, January 16th 01:46 PM IST

 

Wed, 01/16/2013 - 18:41 | 3159984 CheapBastard
CheapBastard's picture

I'm confused. We can move over 100,000 soldiers, thousands of airplanes and dozens of ships to an area (like Iraq) in a few weeks yet we can't make good on Germany's request for 7 years?

 

Smells fishy.

Wed, 01/16/2013 - 18:55 | 3160036 tenpanhandle
tenpanhandle's picture

That was their choice; they chose the 7 years for their gold over the 100k soldiers, thousands of airplanes and dozens of ships in a few weeks.

Wed, 01/16/2013 - 19:44 | 3160252 willwork4food
willwork4food's picture

LOL. +10

Wed, 01/16/2013 - 20:09 | 3160350 Prince Eugene o...
Prince Eugene of Savoy's picture

That's funny right there.  Beautifully stated.  I logged in just to comment up tenpanhandle's response.

Thu, 01/17/2013 - 19:22 | 3164349 howenlink
howenlink's picture

Me too.

Wed, 01/16/2013 - 20:54 | 3160516 Raymond Reason
Raymond Reason's picture

Brilliant!!

Wed, 01/16/2013 - 21:29 | 3160609 DaveyJones
DaveyJones's picture

beautifully ugly

Thu, 01/17/2013 - 09:01 | 3161696 e-recep
e-recep's picture

black humor.

Wed, 01/16/2013 - 18:44 | 3159998 css1971
css1971's picture

Why would the Germans want to wait 7 years? Might as well get it over and done with. A 747 can carry 250 tonnes. Takes about 8 hours. They could have it done and dusted in a couple of weeks.

 

Unless it's ALL leased out and they have to wait for the leases to expire.

Wed, 01/16/2013 - 22:27 | 3160869 Matt
Matt's picture

The regular vaults were not safe enough, so we reallocated your gold into our super secure "deep storage". The problem is, the "deep storage" is so secure, we have to literally move millions of tons of rocks to get your gold out. Takes a bit more time, but it is totally worth the added security and peace of mind.

Thu, 01/17/2013 - 06:45 | 3161572 RafterManFMJ
RafterManFMJ's picture

To be even more secure we broke the gold down into 1 gram bits and dispersed them in tons of ore and then buried them in a mine. This is Mega-deep storage.

Wed, 01/16/2013 - 18:45 | 3160010 Harbanger
Harbanger's picture

Sorry Fritz, Obama needs the stash for his 3rd term in office.  It isn't the 1st time Germany was tricked by an American progressive, remember how Woodrow Wilson offered justice and fairness regarding the treaty of versailles.

Thu, 01/17/2013 - 06:39 | 3161569 Cap Matifou
Cap Matifou's picture

Wilson was fucked over by the real movers (you say WHAT?, when you learn the brothers Max and Paul Warburg sat at the negotiating table one for Germany and the other for the US) Wilson was raped, and returned home a broken man. That defeat, selling the country out to the money trust (singning the fed law), getting a stroke finished him out.

Wed, 01/16/2013 - 22:01 | 3160766 Joe moneybags
Joe moneybags's picture

Or, how about...."I bet I'll get my 2013 Mayan Calendar before Germany gets its gold."

Wed, 01/16/2013 - 18:23 | 3159895 negative rates
negative rates's picture

It's pure clad too, it will take 7 years to smelt it back to orignal.

Wed, 01/16/2013 - 18:26 | 3159914 RafterManFMJ
RafterManFMJ's picture

Paper gold can be delivered electronically in a fraction of a second. Silly Germans, doing things the hard way.

Wed, 01/16/2013 - 18:45 | 3160005 HardlyZero
HardlyZero's picture

Now they will not be allowed to use g*ns to protect the shipment, they will instead have to convert the Gold/Tungsten into pure Gold thread and then weave it into underwear so it does not set off metal detectors, and then have the delivery men make 10 Million trips back and forth betwen NYC and Germany.  It will take 100 delivery men 7 years to make the thread-wise shipments, and to then reprocess the undies in Germany in a special German designed undie-smelter.

Wed, 01/16/2013 - 18:56 | 3160044 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Were shall I send my resume?

PS - My undies smelt real good.

Wed, 01/16/2013 - 20:00 | 3160315 Silver Bug
Silver Bug's picture

Wow, they most certainly do not have the gold. If they did this wouldn't be an issue at all for them. The gold has been replaced with pieces of paper that say IOU nothing. Good luck Germany, your screwed.

 

http://ericsprott.blogspot.ca/

Wed, 01/16/2013 - 20:07 | 3160337 Turd Ferguson
Turd Ferguson's picture

From GATA:


Statement by Peter Boehringer
on behalf of
Repatriate Our Gold
and the German Precious Metals Association http://www.gold-action.de/campaign.html
http://www.gold-action.de/ Wednesday, January 16, 2013 We welcome the Bundesbank's announcement to repatriate significant portions of Germany's gold held abroad. All reasons cited in the past for this storage had either been false or at least outdated since 1990 (with the end of the Cold War and the theoretical military threat to the Bundesbank's domestic gold vaults). We are also satisfied that propaganda arguments (e.g. "chauvinistic/nationalistic demands for repatriation," "repatriation too expensive," "absurd debate questioning the integrity of US/UK central banks," etc.) have not been repeated at the Bundesbank's press conference today. Actually, by announcing some repatriation, the Bundesbank has implicitly acknowledged our point of view of gold as real money and integral part of a nation's monetary reserves. But we do not approve of the speed and volume of the planned repatriation. The Bundesbank has just announced that it will repatriate only 675 tonnes by 2020 by then bringing the total of German gold held in Germany to approximately 50 percent (1,700 tonnes) of total German gold reserves. The Banque de France will allegedly be given up as a Bundesbank storage facility (374 tonnes) and up to 300 of 1,535 tonnes will be repatriated from the New York Fed. In our view, there is a lot of room for speeding up and increasing the volumes for this repatriation. In addition, the Repatriate our Gold campaign insists on proper and independent physical and full audits of the Bundesbank's own vaults in Germany. This includes the publishing of bar number lists, which has been overdue for years. These gold bar number lists are important to prove or disprove multiple ownership of specific bars which could have come about through gold loans. This is one more reason to audit and repatriate all gold bars -- as an incomplete audit and incomplete lists would not fulfill this important purpose. To quote from the statement of purpose of the Repatriate Our Gold campaign: "Gold has been natural money for thousands of years. It has been used throughout history either as physical coinage or as the solid cornerstone for stable paper currencies. Up until 1913 most Western societies prospered and grew steadily and naturally under a monetary standard with at least partial gold backing. The gradual abandonment of the gold backing throughout the 20th century and the ultimate delinkage of all currencies from gold in 1971 is the fundamental cause of the ongoing inflation (the U.S. dollar has lost 98 percent of its purchasing power since 1913) as well as the main reason for the global financial crises since 2007. We believe it is essential to re-introduce a partial gold backing for the world's monetary system. And to back future national currencies, the gold needs to be physically present in the respective country. Gold needs to be re-monetized -- at least on a voluntary basis as a means of payment the people are free to choose at any time. "We therefore campaign for: "-- Independent, full, neutral, and physical audits of the gold hoards of the world's central banks. "-- The repatriation of all central bank gold; that is, the physical transport into the respective ownership countries."

Thu, 01/17/2013 - 02:20 | 3161377 DeadFred
DeadFred's picture

Bar number? They want bar numbers? If they let out those numbers anyone could see the overlap with GLD's bar numbers. Only a terrorist would ask for bar numbers.

Wed, 01/16/2013 - 21:35 | 3160642 robobbob
robobbob's picture

Overnighted from china?

Wed, 01/16/2013 - 21:54 | 3160729 Treeplanter
Treeplanter's picture

You wanna move a lot of stuff?  Call U.S. Xpress... do not call the govt.

Wed, 01/16/2013 - 18:22 | 3159886 Pladizow
Pladizow's picture

.

Wed, 01/16/2013 - 18:25 | 3159907 Snakeeyes
Snakeeyes's picture

Or they can do what Goldfinger did - explode a dirty nuclear device preventing removal. /sarc

http://confoundedinterest.wordpress.com/2012/12/30/if-the-chinese-raided...

Wed, 01/16/2013 - 18:37 | 3159962 bigkahuna
bigkahuna's picture

ummmmmmmmmmmmm...

Wed, 01/16/2013 - 18:45 | 3159994 Al Gorerhythm
Al Gorerhythm's picture

One column missing in the bar graph that should answer the reasons for the extended delivery process: "Total Obligations and Encumberances of FRBNY". Man, that would be a real heart-stopper for Germany. I guss the have some sort of idea, or would, if they look at the BIS derivitives report on Gold and "Other" precious metals outstanding.

Wed, 01/16/2013 - 22:27 | 3160667 jcpicks
jcpicks's picture

Some other countries may not be so patient.

Fed's dead honey.....Fed's dead.

Wed, 01/16/2013 - 22:08 | 3160794 F. Bastiat
F. Bastiat's picture

Theft by deception.  Another crime.

Wed, 01/16/2013 - 22:54 | 3160846 Ham-bone
Ham-bone's picture

I'm literally baffled with bullshit...so many questions arise without a single fucking answer...and that is the point isn't it. 

TPTB just bought themselves 7yrs to do nothing.  Leave us wasting our time trying to figure out the un-figurable...

Wed, 01/16/2013 - 22:24 | 3160852 philipat
philipat's picture

I will gladly pay you next Tuesday for a Hamburger today?

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