• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

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 - 18:29 | 3159930 backhandtopspin...
backhandtopspinslicer's picture

benny has a new hobby of tweeting that is gonna keep him busy for awhile

Wed, 01/16/2013 - 18:31 | 3159934 A Lunatic
A Lunatic's picture

Germany's gold must be on the bottom of the stack.

Wed, 01/16/2013 - 18:33 | 3159947 tsuki
tsuki's picture

Don't give them any excuses. 

Wed, 01/16/2013 - 18:32 | 3159935 backhandtopspin...
backhandtopspinslicer's picture

time to make the donuts

Wed, 01/16/2013 - 18:33 | 3159948 backhandtopspin...
backhandtopspinslicer's picture

tell me again why you want your gold back? and exactly what did it look like?

Wed, 01/16/2013 - 19:37 | 3160215 knukles
knukles's picture

Yellow?
You said it was shiny yellow?
Nope, ain't seen anything like that around here in a long while.
What?  When?
Oh, they shipped somethin' like that to London years ago.  Some bucktoothed funny takin' pansy ass guy came and got it...
You OK?
Mister?
Wake up, mister!
Somebody call a doctor!

Wed, 01/16/2013 - 18:34 | 3159954 ian807
ian807's picture

I think the Germans wanted verification as to the presence or absence of gold holdings at the federal reserve.

They got their verification. 

Between that and the refusal to audit, the situation is clear enough. Now what? Accuse the fed of fraud and end it? You can end the fed and replace it with.... what? Congresscritters? Perhaps it's the lesser of two evils, but not by much.

And the gold is still gone.

Wed, 01/16/2013 - 18:59 | 3160047 mr. mirbach
mr. mirbach's picture

I have been saying that there is no gold for many years now,  maybe some one will start to question the official story...

The only gold in Fort Knox is the wash on the tungsten bars.

Wed, 01/16/2013 - 18:38 | 3159959 Super Broccoli
Super Broccoli's picture

let's put this into perspective :

It's like having $1.500 on your bank account, requesting the bank all of it ... and ending up with the bank agreing to give you $300 over the next 7 year -.-

Don't know about you but if my bank does that to me i'll beat the shit out of the bank manager, burn the bank and put a sign on it that says : "don't ever fuck with me again suckers !"

Wed, 01/16/2013 - 18:45 | 3160004 11b40
11b40's picture

....and then you will go to jail, where you will never again see fresh borccoli.

Wed, 01/16/2013 - 18:39 | 3159961 sadpanda
sadpanda's picture

I think I saw somewhere that Mali's 3rd leading export was gold. U.S and France owe Germany gold. U.S and France have had joint military operations around that area. I'm sure there's a good reason for it. Probably no connection.

Wed, 01/16/2013 - 18:54 | 3160045 Citxmech
Citxmech's picture

I just read they produce 50t/year. . . Hmm.. .  (does some math in head)

No, I'm sure that's a complete coincidence.

Wed, 01/16/2013 - 19:23 | 3160169 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Yeah.  Gotta be a coincidence.  Obama, being an African native, wouldn't hose fellow Africans out of their gold, no way, no how.

Wed, 01/16/2013 - 21:38 | 3160650 DaveyJones
DaveyJones's picture

be fair, he's an equal opportunity hoser

Wed, 01/16/2013 - 18:37 | 3159964 Whiner
Whiner's picture

Layaway plan, Bitchez!

Wed, 01/16/2013 - 18:45 | 3159966 Yen Cross
Yen Cross's picture

Who cares?...  This shit is like using oscillators & trendlines<> Old News.

This crap, is right up there with telling me I have to register my Metal.

 SERFS , BANKERS < Enforce it Bitchez!  This country is a fucking slum, and the amounts of $ people make in 5-10 minutes is obscene.

  XAU Drones Bitchez. > forward.

Wed, 01/16/2013 - 21:49 | 3160702 awakening
awakening's picture

Your losing your touch Yen.

No gold in the hands of the US Federal (they still call it Federal, lol) Reserve Bank means no confidence in the USD; because this lack of confidence literally is THE END to 'Full Faith and Credit' of said dollars by the USG (can't trust them with my gold = can't trust the value of their currency = bye-bye Global Reserve Currency status).

Wed, 01/16/2013 - 22:11 | 3160808 Yen Cross
Yen Cross's picture

Don't care. I'm playing this "price action ponzi scheme" for all it's worth. I lost touch in 2001. I suggest you do the same.

Wed, 01/16/2013 - 22:57 | 3160882 awakening
awakening's picture

I suppose we both have a different means to the same end (presuming your putting some of your winnings in the 4X game into something more tangible), though I too did indeed lose (what little I had to begin with) my touch in 2001 (2 planes, 3 building collapse, I was never good at math obviously) when I first distrusted the USG then later followed the money down a path best illuminated in the ZH Archives.

edit: btw I didn't downvote/junk you.

Wed, 01/16/2013 - 22:57 | 3160947 secret_sam
secret_sam's picture

It's not like anyone would ever pick up a GUN to try to enforce a contract.

Wed, 01/16/2013 - 18:39 | 3159972 blu
blu's picture

Bernanke to BuBa: Either you wait 7 years because I say so, or else send over your navy if you have one. Either way is fine with me.

Wed, 01/16/2013 - 18:44 | 3160001 Super Broccoli
Super Broccoli's picture

no i believe it was more like :

"either you wait 7 years, either i go bust and you'll get none of it"

And as for the US military might well they better quit the emperialist crap righto. With half of the world dreaming to nuke them, they probably can't offer to have the other half (which actually has the nukes) doing it

Wed, 01/16/2013 - 18:39 | 3159974 Its_the_economy...
Its_the_economy_stupid's picture

Ben Had a dream. He could not understand its meaning. He brought in the wisest men of the realm (economists w PhD's), but none could decipher it. He dreamt of 7 skinny cows eating 7 fat cows, yet growing no fatter. What could it mean?

Wed, 01/16/2013 - 19:03 | 3160082 Umh
Umh's picture

Mad cow disease.

Wed, 01/16/2013 - 22:00 | 3160758 akak
akak's picture

The skinny cows were bullemic.

Wed, 01/16/2013 - 19:47 | 3160265 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Bovine tapeworm.

Wed, 01/16/2013 - 19:53 | 3160288 Unprepared
Unprepared's picture

The Krug: According to Keynesian book of Dreams, there will be 7 years of debt monetization and Fed BS expansion followed by 7 years of hyperinflation, asset impairement and debt destruction. Biflation would then sweep the land.

The Bernank: So what do you advise?

The Krug: Print, print, print.

Thu, 01/17/2013 - 02:30 | 3161390 DeadFred
DeadFred's picture

It means with a little bit of cunning you can get a whole country to sell themselves into debt slavery. At least that's what happened to first time that dream went around.

Wed, 01/16/2013 - 18:40 | 3159975 godzila
godzila's picture

Just out of pure academic interest :) what is the preferred method of moving such significant amount of gold over the Atlantic ? Airfreight ? Surface ? What would be the cost to the BUBA. Finally any word on quality control of the delivered goods ?

Wed, 01/16/2013 - 18:46 | 3160013 Super Broccoli
Super Broccoli's picture

well seing the "speed" of it ... they apparently opted for camel's back

Thu, 01/17/2013 - 13:59 | 3163001 PrintemDano
PrintemDano's picture

Turtle,  Sea Turtle

Wed, 01/16/2013 - 18:40 | 3159978 lolmao500
lolmao500's picture

Germany : Ve vant ze money, Bernanke.

Bernanke : Look, pal, there never was any money. The big Obama gave me an empty briefcase, so take it up with him, man.

Germany  : Ve don't care. Ve still vant ze money, Bernanke, or ve fuck you up.

Wed, 01/16/2013 - 18:41 | 3159981 reader2010
reader2010's picture

Take your PAPER GOLD instead.

Wed, 01/16/2013 - 18:41 | 3159982 TheObsoleteMan
TheObsoleteMan's picture

This is the "Emperor has no clothes" moment I have long awaited for. No need to audit the gold in Fed vaults, West Point, or Ft.Knox. THE US HAS NO GOLD. They have been playing liars poker, and have just been called.

Wed, 01/16/2013 - 18:46 | 3160009 lolmao500
lolmao500's picture

Don't worry, the confiscation of private gold in the US will begin shortly... to pay Germany.

Wed, 01/16/2013 - 18:47 | 3160017 yogibear
yogibear's picture

That's right. Like every other Ponzi (Fractional Reserve) they have been playing. They have been doing it with gold. Indeed the emperor has no clothes. They will have to buy what's needed on the open market or confiscate it.  

Wed, 01/16/2013 - 18:59 | 3160065 mr. mirbach
mr. mirbach's picture

keep an eye on tungsten blank orders/shipments from China...

 

Wed, 01/16/2013 - 18:42 | 3159986 azengrcat
azengrcat's picture

Benank better be careful, they may send in Simon Gruber to make the withdraw.

Wed, 01/16/2013 - 18:48 | 3160022 Super Broccoli
Super Broccoli's picture

yeah it's funny how US movies actually predict what's to happen.

Ze germen taking NY's gold, the black president, NY's destruction ...

Wed, 01/16/2013 - 18:41 | 3159990 DeficitAlchemist
DeficitAlchemist's picture

I hope it all doesn't go by Boat, we should hopefully find some on 747's, because I know with a box cutter or two and an Israeli accent I could totally commandeer any US commercial liners 747 and rerout it and its cargo.

I could even smash the whole shebang into my basement after a complex movement of turns, to avoid the hassle of repacking it, all I need is 3 weeks of cessna training and then pretend home is the Pentagon... I will do it without brushing the rose bushes any, and all wreckage will vanish of its own accord, because this how this shit rolls, this is already proven.

Wed, 01/16/2013 - 19:03 | 3160084 gabeh73
gabeh73's picture

You might need to call a friend to have him shut down NORAD for the day. Shouldn't be too big a deal, they don't really do much to stop planes from crashing into the Pentagon anyway.

Wed, 01/16/2013 - 18:42 | 3159991 Wile-E-Coyote
Wile-E-Coyote's picture

We can't let you have your Gold back for security reasons.

7 yrs FFS

Wed, 01/16/2013 - 18:43 | 3159995 PeeramidIdeologies
PeeramidIdeologies's picture

First of all this bullshit about media/video games causing violence has to stop. The world has been a violent place since before we were here, as seen in the animal kingdom. You want to stop this needless violent behaviour among the future generations (for a lot of people it too late) BE A PARENT!! There is no reason for these kids to act like this if they have someone at home to be there for them. It's. that. fucking. simple.

As for gold repatriation, I wouldn't be hoping to take any large deliveries in the future. If you don't have yours you better get on it before someone with more influence then you does.

Wed, 01/16/2013 - 18:44 | 3159996 Racer
Racer's picture

FBRNY: They want WHATTTTT, oh sh!t , what the  F%ck do we do now?

ARRRRRGGGGHHHH we can't print gold for GARDS sakes

Wed, 01/16/2013 - 18:45 | 3160003 sampo
sampo's picture

But, but, they're so dusty!

Wed, 01/16/2013 - 18:45 | 3160007 Its_the_economy...
Its_the_economy_stupid's picture

Is asking for your gold akin to terroristic threatening? Can we arrest a few German Nationals for terrorism?

Wed, 01/16/2013 - 18:52 | 3160032 Racer
Racer's picture

They could declare war on Germany because Germany is threatening the US by wanting to return it when it was confiscated Nazi gold and they have no right to it. And this amounts to a demand with menances and an act of war by Germany

Wed, 01/16/2013 - 18:46 | 3160011 THE DORK OF CORK
THE DORK OF CORK's picture

Emergency ....................

 

http://www.youtube.com/watch?v=xwEyz4BuFWI

Wed, 01/16/2013 - 23:00 | 3160961 secret_sam
secret_sam's picture

Now is ze time in Sprockets! vhen ve donce.

Wed, 01/16/2013 - 18:46 | 3160012 semperfi
semperfi's picture

how long will it take for Netherlands to get theirs ?

HAHAHAHAHAHAHA!!!!   IDIOTS !!!!

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