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    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

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 - 07:04 | 3161588 samwell
samwell's picture

Oh, but its just a coincidence that France is now "suddenly" invading Mali whose anual production could sure help the "French" out right about now.

 

et tu vichy "french", Federal Reserve.

 

 

Thu, 01/17/2013 - 08:17 | 3161634 TWSceptic
TWSceptic's picture

This reminds me of Die Hard 3 but in the opposite direction, if you know what I mean...

Wed, 01/16/2013 - 18:20 | 3159866 sotto
Wed, 01/16/2013 - 18:25 | 3159868 freedogger
freedogger's picture

They are just waiting for the right asteroid to fly by. Then they will mine it. I am not making this shit up. http://www.planetaryresources.com/

Seven years seems optimistic.

Wed, 01/16/2013 - 18:50 | 3160027 Winston Churchill
Winston Churchill's picture

So the FedRes will be buying forty three tons a year.

Just low enough to not upset the physical price,maybe ?

Got to get it from somewhere,sure as hell isn't in the vault.

Wed, 01/16/2013 - 18:55 | 3160050 SHEEPFUKKER
SHEEPFUKKER's picture

It's not Germany's gold right? It's the German bankster's gold and they are in on the fiat ponzi as well.  Let me do some quick cocktail napkin math.....I believe we have 7 more years of fiat ponzi.  

Wed, 01/16/2013 - 18:19 | 3159869 AgLand
AgLand's picture

Takes a lot of work to make that tungsten look real you know!

Wed, 01/16/2013 - 19:21 | 3160152 XitSam
XitSam's picture

Nonsense. The Chinese can knock that out in 3 weeks. With discount for large orders.

Wed, 01/16/2013 - 18:20 | 3159872 michiganmaven
michiganmaven's picture

they have to wait 7 years so they hope they forget they asked... that way the Feds ponzi stays up a while longer... 

Wed, 01/16/2013 - 18:22 | 3159880 Spider
Spider's picture

Well hopefully someone can remind the Fed that the bars they should give the Germans should be yellowish-gold in color rather than red.  Dont blame the Fed ... they probably havent seen a real one in a LONG LONG time

Wed, 01/16/2013 - 18:22 | 3159881 Super Broccoli
Super Broccoli's picture

that makes 117KG a day ... they're moving the shit using a single cessna ?

Wed, 01/16/2013 - 18:22 | 3159882 lolmao500
lolmao500's picture

15 000 new dog killers/enslavers aka cops is a waste of money... and I'm being kind.

Wed, 01/16/2013 - 18:22 | 3159884 Lukacko
Lukacko's picture

Looks like we finally got a general economic collapse timeframe. Sometime within 7 years. Because after that it won't matter whether Germany gets its gold or not.

Wed, 01/16/2013 - 18:27 | 3159919 CPL
CPL's picture

See why everyone has been stalling for time yet?

 

It's time for the cheque to get paid and everyone is broke.

Wed, 01/16/2013 - 18:37 | 3159963 ParkAveFlasher
ParkAveFlasher's picture

Mighty awkward around the ol' TGI Friday's table ... say, who ordered the molten chocolate cake?  Wasn't me ... you had two drinks?  I only had one ... hey guys, just give me some cash, I only have a credit card ... oh, no, I can't break a fifty ... wait a second I'm short ...

Wed, 01/16/2013 - 22:16 | 3160831 secret_sam
secret_sam's picture

I'd like to inquire about 7 year calls, plz.

Wed, 01/16/2013 - 18:40 | 3159973 Citxmech
Citxmech's picture

7 years to the zero hour?

Great!  I should be fully prepped by then.

Thu, 01/17/2013 - 00:19 | 3161174 Oldballplayer
Oldballplayer's picture

Isn't that when you order another round for the table?

Thu, 01/17/2013 - 05:33 | 3161527 Clashfan
Clashfan's picture

Now that's optimistically funny. Oh, wait...

Wed, 01/16/2013 - 20:05 | 3160332 Winston Churchill
Winston Churchill's picture

Make that sometime in the next two.You get nothing ,Kraut MFers..

What happened to the other 1000 tons they have in the NY Fed ?

They want their gold back, and are offered a quarter of it over seven yars.

Whats wrong with this picture ?

Surely JPM will give it back,they only borrowed it.

Thu, 01/17/2013 - 09:03 | 3161703 e-recep
e-recep's picture

the kondratieff wave suggests big change around year 2020.

Wed, 01/16/2013 - 18:23 | 3159889 emsolý
emsolý's picture

Hell, I can get you a toe by 3 o'clock this afternoon... with nail polish. These fucking amateurs...

Wed, 01/16/2013 - 18:23 | 3159890 backhandtopspin...
backhandtopspinslicer's picture

no conspiracy theory here -- they get paid by the hour

Wed, 01/16/2013 - 18:24 | 3159892 lolmao500
lolmao500's picture

Germany should tell Ben to go fuck himself and that if he doesn't bring it WITHIN A MONTH, ALL OF IT, the GERMAN ARMY is gonna take care of business, they gonna bring back all of the gold PLUS expenses, PLUS the head of Bernanke back to ze motherland.

Wed, 01/16/2013 - 18:27 | 3159917 Super Broccoli
Super Broccoli's picture

i'm in !!!!! as long i get to play with Benrnake's head on a stick i'll sign in the army righto !!!!

Wed, 01/16/2013 - 19:03 | 3160080 tenpanhandle
tenpanhandle's picture

somehow I get the idea your play is going to involve a teabag.

Wed, 01/16/2013 - 22:19 | 3160838 secret_sam
secret_sam's picture

They're going to have to conquer Poland and France before they get OUR attention.

Wed, 01/16/2013 - 18:23 | 3159896 deejo
deejo's picture

I know this, because tyler knows this

Wed, 01/16/2013 - 18:31 | 3159938 lolmao500
lolmao500's picture

We are all Tyler!

Wed, 01/16/2013 - 18:23 | 3159898 JohnG
JohnG's picture

 

 

At least it only costs $5 to dig it out of the ground.

(RIP MethMan)

Wed, 01/16/2013 - 18:24 | 3159900 backhandtopspin...
backhandtopspinslicer's picture

never mind -- we'll come get it ourselves

Wed, 01/16/2013 - 18:25 | 3159908 yogibear
yogibear's picture

Bernanke and the Fed are panicking to get the gold. They will take 7 years too divert other gold to the Germans.

LOL, the Fed doesn't have it.  We have been using it to mint Gold Eagles......

Germans must have "SUCKERS" written on them.

Wed, 01/16/2013 - 18:26 | 3159911 backhandtopspin...
backhandtopspinslicer's picture

that is almost as bad as getting some pan am silver from the northwest mint

Wed, 01/16/2013 - 18:42 | 3159992 Citxmech
Citxmech's picture

LMFAO.

They do keep you on the edge of your seat, don't they?

Wed, 01/16/2013 - 18:26 | 3159913 Lendo
Lendo's picture

That flyer is hilarious because it's complete bullshit. 

Wed, 01/16/2013 - 18:26 | 3159915 spinone
spinone's picture

It will take 7 years to move 1 ton back and forth from NY to Frankfurt 300 times.

Wed, 01/16/2013 - 18:31 | 3159916 fuu
Wed, 01/16/2013 - 19:28 | 3160091 The Gooch
The Gooch's picture

Your taste is impeccable and I raise you ten, under the cover of darkness. Ground Zero 33 Liberty St.

Wed, 01/16/2013 - 19:36 | 3160212 fuu
Wed, 01/16/2013 - 22:26 | 3160865 secret_sam
secret_sam's picture

+ 1

As much as I love this, I feel compelled to point out that that top horizontal pixel is permanently altering your brainwaves upon exposure...

 

Wed, 01/16/2013 - 18:26 | 3159918 giggler123
giggler123's picture

Before that happens they will pull another 911 for sure but this time it'll be in the places where the gold is stored.  No one wants nuked gold?  At the same time elevating everyone elses gold not stored their to the roof.  That is not fact, this is not what might happen, it will or war which is better?

Wed, 01/16/2013 - 22:15 | 3160821 Argentbilly
Argentbilly's picture

There were gold vaults in the subfloors of WTC.

Wed, 01/16/2013 - 18:27 | 3159921 backhandtopspin...
backhandtopspinslicer's picture

benny at the fed be saying It is not our tradition to give back gold

Wed, 01/16/2013 - 18:28 | 3159925 busted by the b...
busted by the bailout's picture

They will need to mint up a few more 1oz platinum coins first to get the cash to buy the gold.

You didn't think it was in a lockbox did you?

Wed, 01/16/2013 - 18:29 | 3159927 Super Broccoli
Super Broccoli's picture

Germany : "ze want our gold back"

Bernanke : "don't you want nice a trillion platinum coint instead ?"

Wed, 01/16/2013 - 19:59 | 3160313 are we there yet
are we there yet's picture

Perhaps we can interest you in some tulips for repayment.

Wed, 01/16/2013 - 18:29 | 3159928 urbanelf
urbanelf's picture

They have to buy it from me before they can give it to Germany.

Wed, 01/16/2013 - 18:29 | 3159929 dolph9
dolph9's picture

The Fed doesn't have the gold, it will have to buy it on the market.

It will do so over 7 years so as to not cause any price spikes.

Both the Germans and the Fed know this, of course.

Wed, 01/16/2013 - 21:35 | 3160641 DaveyJones
DaveyJones's picture

and many other ugly truths

Thu, 01/17/2013 - 00:55 | 3161234 tip e. canoe
tip e. canoe's picture

wonder how that DB bldg demo is going

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