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 - 18:32 | 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 - 18:26 | 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?

Thu, 01/17/2013 - 03:41 | 3161447 _underscore
_underscore's picture

Has anyone considered the much more significant possibility that the Fed (and B de France) does have (all of) the gold, but won't return it in less than 7 years?

Has, in fact, the timetable for reserve currency change just been given to us?

 

 

Thu, 01/17/2013 - 09:59 | 3161551 Disenchanted
Disenchanted's picture

Stolen gold you say...

 

 

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