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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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).

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