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China's Largest Conglomerate Buys Building Housing JPMorgan's Gold Vault

Tyler Durden's picture




 

In what is the most remarkable news of the day, which has so far passed very quietly under the radar, Fosun International, China's largest private-owned conglomerate which invests in commodities, properties and pharmaceuticals also known as "Shanghai's Hutchison Whampoa", announced in a statement filed just as quietly with the Hong Kong stock exchange, that it had purchased JPM's iconic former headquarters, the tower built by none other than David Rockefeller, at 1 Chase Manhattan Plaza for a measly $725 million.

Here is Bloomberg described the transaction:

Over the past year, other Chinese developers and wealthy investors have been buying real estate in the U.S.

 

China Vanke Co., the biggest homebuilder listed in mainland China, said in February it joined a residential real estate venture in San Francisco. The families of Zhang Xin, co-founder of Soho China Ltd. (410), the biggest developer in Beijing’s central business district, and Brazilian banking billionaire Moise Safra this year bought a 40 percent stake in New York’s General Motors Building.

 

The landmark 1 Chase Manhattan Plaza, designed by architect Gordon Bunshaft and built in the 1950s, was once the headquarters of Chase Manhattan Bank. Rockefeller, as head of the bank’s building committee, selected the site and oversaw its construction.

 

JPMorgan intends to relocate about 4,000 employees, most of the people who work in the 60-story skyscraper, to other New York locations, Brian Marchiony, a spokesman, said in August. JPMorgan occupies about half of its space.

None of this is particularly newsworthy What is, however, is what Zero Hedge exclusively reported back in March, namely that the very same former JPM HQ at 1 Chase Manhattan Plaza is also the building that houses the firm's commercial gold vault: incidentally, the largest in the world.

Recall:

What do we know about 1 Chase Manhattan Plaza. Well, aside from the fact that the 60-story structure, built in the 1950s, was the headquarters of the once-legendary Chase Manhattan corporation, and which when it was built was the world's sixth tallest building, not much.

So we set off to learn more.

To learn more, we first went to the motherlode: the Landmarks Preservation Commission, whose report on 1 CMP describes everyone one wants to know about this building and then much more, such as that:

One Chase Manhattan Plaza combines three main components: a 60-story tower, a 2½ acre plaza, and a 6-story base, of which 5 floors are beneath grade.

So the old Chase HQ, once the stomping grounds of one David Rockefeller, and soon to be the other half of JPMorgan Chase, has 5 sub-basements, just like the NY Fed...

Reading on:

Excavations, said to be the largest in New York City history, reached a depth of 90 feet

Or, about the same depth as the bottom-most sub-basement under the NY Fed...

But then we hit the jackpot:

Originally constructed with white marble terrazzo paving and enclosed by a solid parapet of white marble travertine that was personally selected by Bunshaft in Tivoli, Italy, the L-shaped plaza levels the sloping site and conceals six floors of operations that would have been difficult to fit into a single floor of the tower, including an auditorium seating 800 [and] the world’s largest bank vault.

And there you have it: the JPM vault, recommissioned to become a commercial vault, just happens to also be the "world's largest bank vault."

Digging some more into the curious nature of this biggest bank vault in the world, we learn the following, courtesy of a freely available book written by one of the architects:

On the lowest level was the vault, which rested directly on the rock - the "largest bank vault in the world, longer than a football field." It was anchored to the bedrock with steel rods. This was to prevent the watertight, concrete structure from floating to the surface like a huge bubble in the event that an atomic bomb falling in the bay would blow away the building and flood the area.

In other words, the world's biggest bank vault, that belonging to the private Chase Manhattan empire, and then, to JPMorgan, was so safe, the creators even had a plan of action should it sustain a near-direct hit from a nuclear bomb, and suffer epic flooding (such as that from Hurricane Sandy).

* * *

So, what the real news of today is not that JPM is selling its gold vault, we knew that two months ago, or that it is outright looking to exit the physical commodities business, that too was preannounced. What is extremely notable is that in one very quiet transaction, China just acquired the building that houses the world's largest gold vault.

Why? We don't know. We do know that China's gross gold imports from Hong Kong alone have amounted to over 2000 tons in the past two years. This excludes imports from other sources, and certainly internal gold mining and production.

One guess: China has decided it has its fill of domestically held gold and is starting to acquire gold warehouses in the banking capitals of the world.

For now the reason why is unclear but we are confident the answer will present itself shortly.

 

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Fri, 10/18/2013 - 13:56 | 4069549 TaperProof
TaperProof's picture

Welcome our new owners, call them master.

Fri, 10/18/2013 - 13:59 | 4069562 MeMadMax
MeMadMax's picture

Ladies and Gentlemen, it gives me great pleasure to introduce you to my new "Must Read" book of the day: "Mandarin, For Dummies"!

Fri, 10/18/2013 - 14:02 | 4069585 Enslavethechild...
EnslavethechildrenforBen's picture

Personally I will be ecstatic when China does go on the Gold Standard, even if that does require me to learn How to read those funny symbols.

Fri, 10/18/2013 - 14:07 | 4069610 Pinto Currency
Pinto Currency's picture

Now they can demand delivery or else they'll dump all their treasuries.

Fri, 10/18/2013 - 14:27 | 4069642 The Juggernaut
The Juggernaut's picture

THAT'S why Jim Rogers moved to Singapore... Do you think Chinese military will guard that area... you know like how American troops guard oil in Iraq...?

But kinda weird... Why didn't the Chinese just build a bigger one... or did they?

Fri, 10/18/2013 - 14:28 | 4069686 New England Patriot
New England Patriot's picture

It's a FOB.

Fri, 10/18/2013 - 14:30 | 4069687 12ToothAssassin
12ToothAssassin's picture

Gold vaults in world banking capitols? Must be preparing for a gold backed world reserve currency.

Fri, 10/18/2013 - 14:32 | 4069693 Pinto Currency
Pinto Currency's picture

How about this scenario:

China moves its real physical into 1 CMP.

They agree to lend it to NY Fed for audit purposes in return for being allowed to make massive purchases of US assets with Chinese held paper.

Fri, 10/18/2013 - 14:40 | 4069724 qussl3
qussl3's picture

It's plausible but it makes the assumption that the US would willingly engage in miltech transfer which they wont, and that the Chinese believe that their property rights will be respected when push comes to shove.

Unless there's something going on behind the scenes like the US literally having a killswitch on the Chinese leadership, this theory doesnt hold up too well.

Fri, 10/18/2013 - 14:46 | 4069740 Manthong
Manthong's picture

For some strange reason, I don't think they will be disposed towards keeping any of their gold in the US,

They could put a pretty rifle range down there, though - the noise would never disturb the neighbors.

Fri, 10/18/2013 - 14:57 | 4069792 kralizec
kralizec's picture

It went for a paltry $725m because the vault is empty...

Duh!

Fri, 10/18/2013 - 15:04 | 4069820 SWRichmond
SWRichmond's picture

Maybe they're going to keep their gold in the US, just like Germany...after all, we're such trustworthy custodians.

Fri, 10/18/2013 - 15:37 | 4069927 SafelyGraze
SafelyGraze's picture

when they go down to the vault, they are in for a surprise

 

Fri, 10/18/2013 - 15:57 | 4070002 BaBaBouy
BaBaBouy's picture

Chinese Now Can BUY All US GOLD And Not Have
To Give Their Game Away.
Just Stash It Right Here Until The Time Is Right
And The Price Is Right ... $50K ...
G E N I U S !!!

Fri, 10/18/2013 - 16:01 | 4070016 bank guy in Brussels
bank guy in Brussels's picture

China is paying for Chase building with US Treasury Bond, which is on Chinese internal books as having long term value = 0

So 'real cost' of building in China's terms is 0, building is free

China gets rent and use of building for short- to medium-term - so profit and win for China

China estimates 40% chance of future US seizure of all Chinese assets in USA ... assets mostly bought for 'free' with marked-to-zero US Treasury bonds

When Chinese assets are seized, China gets to trumpet to the world that US is confirmed as thieving government with no rule of law, that cannot be trusted (world half thinks that already) ...

So US building confiscation creates global win for China, soon to be trusted global business leader in place of the USA

Perfect Chinese plan

Fri, 10/18/2013 - 16:16 | 4070062 ApollyonDestroy
ApollyonDestroy's picture

meh

Fri, 10/18/2013 - 16:19 | 4070072 Pinto Currency
Pinto Currency's picture

 

America has the most productive economy in the world.

They could buy huge swaths of that economy with some of their gold when gold is revalued.

Fri, 10/18/2013 - 16:53 | 4070168 Ying-Yang
Ying-Yang's picture

Sure.... sure, We be happy to house a bunch of your gold here in the good ol USA.

It will be right nice and plenty safe.

Fri, 10/18/2013 - 20:30 | 4070281 Pinto Currency
Pinto Currency's picture

 

Perhaps China could just sell say 1/10 of their gold for ownership of 1/2 of US industry after the gold revaluation.

Barry would probably be all over that given his marxist roots.

Desperate times call for despotic measures.

The best part will be to listen to Barry berate everyone for the crash after he has run the whole show off the cliff.

-

p.s. in the comment 2 blocks above I said "They could buy huge swaths of that economy with some of their gold when gold is revalued."  I mean "China could buy huge swaths of that economy with some of their gold when gold is revalued."

Fri, 10/18/2013 - 23:47 | 4071221 James
James's picture

Read up on China "Special Enterprise Zones" here in the U.S.

My last count was about 60 of them.

These allow Chinese to set up shop on U.S. soil w/Chinese laws. No EPA for example.

Fri, 10/18/2013 - 15:37 | 4069928 strannick
strannick's picture

Bloomberg, CNBC et all found this unnewsworthy...

I @#$%ing LOVE Zerohedge

Fri, 10/18/2013 - 15:06 | 4069826 FEDbuster
FEDbuster's picture

That does seem a bit cheap.  Wonder how much of the building is empty, besides the gold vaults?  Maybe they are going to do a condo conversion on the top 2/3 of the building and sell them to investors (suckers) in Asia?

Fri, 10/18/2013 - 17:33 | 4070305 Urban Redneck
Urban Redneck's picture

Perhaps they bought the vault because they are getting frustrated by the slow rate of withdrawing German gold from FRBNY (matched only by the even slower rate at which Germans are permitted withdrawals) - with a tunnel bewteen the two vaults they are no longer constrained by the 5 ton or so limit of an armored car (which are rather conspicuous if you start running them in shifts to speed up withdrawals).

Sat, 10/19/2013 - 06:54 | 4071406 Element
Element's picture

This is very dodgy, a gold-vault, under a steel-framed building?

Sat, 10/19/2013 - 08:23 | 4071482 Urban Redneck
Urban Redneck's picture

Not if it is an ACTUAL vault (as opposed to a vault door)- since it would have at least 1/2 million cubic feet of structural steel and over 8 million cubic feet of high strength concrete in the outer walls to be the size of football field and the minimum ASTM F1247/F1090 spec for a real vault. You could fly planes into the building all day long and practice "pulling it", and it would be like watching BHO trying to smack down a young Mike Tyson in a boxing ring. That thing wouldn't be "blobbing up" (or going anywhere else) even in the event of nuke in the neighborhood, if it "is" what they say it "is".

Fri, 10/18/2013 - 14:58 | 4069797 Herd Redirectio...
Herd Redirection Committee's picture

This is obviously in exchange for China to NOT dump Treasuries.

Possession, its 9/10ths of the law.  And yes, of course any gold that may or may not be in the vaults (or belong to someone else) are a part of the deal.

Fri, 10/18/2013 - 16:04 | 4070035 Manthong
Manthong's picture

“Possession, its 9/10ths of the law”

True, but I don’t see them moving that building to Shanghai.

On second thought, they just might figure out a way to do that.

On third thought, they can build a skyscraper in a little over two weeks, so why would they bother?

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

Fri, 10/18/2013 - 17:43 | 4070339 Urban Redneck
Urban Redneck's picture

The VAST MAJORITY of bank vaults built today are pre-fab, so the materials already exist for the Chinese to do a huge vault VERY quickly - the one caveat being the way the UL codes are written with maximum spans and areas, they would have to go through a custom design review "process" (the right word escapes me) for certification, which is one reason why no one goes for bragging rights (other than the astronomical cost per ft2 which would basically go unused).

Fri, 10/18/2013 - 17:55 | 4070395 ich1baN
ich1baN's picture

Ya, and they had planned to build the world's tallest building in 30 days but had to cancel because they realized the absurdity about doing something on a massive scale with prefab chinese made material. 

I can't wait for the DOLLAR to plummet because that will finally bring an end to our crony corporatists in China manufactuing goods there that last 1/10th as long as the same product made in the USA, let alone we don't have to spill corporate secrets.

The "Average Kingdom" is just that. Chinese are some of the most xenophobic people I have lived with while I was in China. They actually believe they are a superior race of people. The CCP perpetuates this myth ad nasuem and makes fake demon "laowai" dragons in the news all the time.

They have threatened to nuke 100s of US cities on 2 different occassions now and even are willing to go to WWIII over Iran or Taiwan. Mention the word "Japan" in China and you will see their faces boil over.

There are still 2.9 million slaves in China that work in the trafficking and sex trade industry. Are these really the people we want ruling our lives?

Wake up America, return to your roots. Respect our Founding Fathers and the ideal of a Republic. Fight for freedom, justice, and the greater good because there is a sycophant in Beijing that thinks you are a barbarian. They believe they are molders of men. Ah what hubris! 

Fri, 10/18/2013 - 18:34 | 4070519 Freddie
Freddie's picture

Until Americans pull the plug on TV and Hollywood than O and the Dems plus their Chinese overlords are in charge.  Conservatives rationalize saying they watch Fox which just as bad.  Your cable and sat TV fees keep all of them in the money because they all get a cut of that. 

Fri, 10/18/2013 - 15:28 | 4069895 WillyGroper
WillyGroper's picture

????

guess you can't post chinese caligraphy.

Mon, 01/20/2014 - 13:07 | 4348401 fedupwhiteguy
fedupwhiteguy's picture

this site is limited in other ways also. ah well.

Sat, 10/19/2013 - 05:57 | 4071395 StychoKiller
StychoKiller's picture

Perhaps they really want to check and see if there's a secret tunnel to the NY Fed gold vault...

Sat, 10/19/2013 - 06:42 | 4071412 Tompooz
Tompooz's picture

"Unless there's something going on behind the scenes like the US literally having a killswitch on the Chinese leadership"

Killswitches galore, around the world, to be found in the NSA database...

 

 

 

Fri, 10/18/2013 - 15:02 | 4069811 pulp1
pulp1's picture

That is the GOAL!

3 - 5 years>

Fri, 10/18/2013 - 15:18 | 4069862 dontgoforit
dontgoforit's picture

I believe New Patriot may have nailed it: FOB - Forward Operating Base.  If you were going to head out on a 'bloodless' world domination, gold in all the right places would sure help your efforts. 

Fri, 10/18/2013 - 14:47 | 4069749 qussl3
qussl3's picture

The US has a naval base in Singapore, China has nothing.

What they do have is a Freeport, where physical goods can be vaulted outside national boundaries, ie Singapore customs wont touch stuff moved into the vaults.

Pretty convenient huh?

Fri, 10/18/2013 - 14:16 | 4069650 Grande Tetons
Grande Tetons's picture

No seven year wait time for the not so patient Chinese. 

Fri, 10/18/2013 - 14:52 | 4069778 ziggy59
ziggy59's picture

...but the cupboards were bare....

Fri, 10/18/2013 - 19:37 | 4070699 xtop23
xtop23's picture

Perhaps a means to sell Gold to the Chinese directly in a private manner that keeps them from buying on the open market? No silly Comex reports that will reveal just how depleted their stores are becoming.

Fri, 10/18/2013 - 14:06 | 4069606 Mark Carney
Mark Carney's picture

China will be mad when they find no gold there, lol

Fri, 10/18/2013 - 14:15 | 4069643 diogeneslaertius
diogeneslaertius's picture

"China will be mad when they find no gold there, lol"

the gold has already been moved of course and this is known by the buyer. but i still almost shot coffee out of my nose.

Fri, 10/18/2013 - 15:04 | 4069812 Renewable Life
Renewable Life's picture

So wait......."old JPM HQ" being bought for its largest gold vaults" today, and yesterday JPM Chase banks says NO MORE INTL WIRE TRANSFERS, after Nov. 17th!!!!

Nope, nothing going on here, I'm sure its totally unrelated! Shit always happens for no reason!

Remember Jamie is rich "because he's smarter then you" and he gets the information before other people do, I wonder what he knows????

Fri, 10/18/2013 - 15:20 | 4069871 dontgoforit
dontgoforit's picture

Enter the Dragon - the REAL new world order.

Fri, 10/18/2013 - 14:00 | 4069576 Bluntly Put
Bluntly Put's picture

You mean someone actually bought the manipulation mechanism? I wonder if they did their due diligence to know the extent of the fraud?

.

Fri, 10/18/2013 - 14:33 | 4069701 blackholes
blackholes's picture

Don't have to worry about delays in delivery when you own the place, I guess.

Fri, 10/18/2013 - 17:59 | 4070406 kita27
kita27's picture

possession is 9/10 of the law!     

Fri, 10/18/2013 - 18:40 | 4070544 Jumbotron
Jumbotron's picture

"Welcome our new owners, call them master."

They're just protecting what's their's.  Can't say that I blame them.

Fri, 10/18/2013 - 23:15 | 4071174 AGuy
AGuy's picture

They Bought the Gold and JPM threw in the building for free!

 

Sun, 10/27/2013 - 17:16 | 4095821 Crash Overide
Crash Overide's picture

On a positive note, Chinese food is pretty good.

Fri, 10/18/2013 - 13:58 | 4069550 Kirk2NCC1701
Fri, 10/18/2013 - 13:58 | 4069559 Jannn
Jannn's picture

China has net imported 1033 tons YTD (through Hong Kong and all other ports): The Biggest Economic Power Shift In Decades.

 

http://koosjansen.blogspot.nl/2013/10/economic-power-shift-to-china.html

Fri, 10/18/2013 - 13:59 | 4069568 McMolotov
McMolotov's picture

Arr your gord vaurt are berong to us.

Fri, 10/18/2013 - 13:59 | 4069570 Tsar Pointless
Tsar Pointless's picture

All your gold are belong to us!

Fri, 10/18/2013 - 14:00 | 4069572 starman
starman's picture

the great American garage sale lol,  anyone dejavue ? 

Japan buying LA?

Fri, 10/18/2013 - 15:13 | 4069844 augustusgloop
augustusgloop's picture

exactly what i was thinking- like the japanese buying rockefeller center, at&t building, pebble beach golf course... the foreigners buying all our real estate smells like a top in commercial real estate (just like all the New York real estate families selling in 2007-2008 when the 'smart' institutional money was forming investment vehicles to buy NYC real estate). 

it's a fallacy to think that the chinese know the 'long game' just because we don't understand them...talk funny, huge trade surplus, must be smart. The best is the confusion of Zhou Enlai's retort to the question "what do you think of the French Revolution," to which he replied, "it's to early to tell." the only thing is, it was interpreted as being a response to the 1789 revolution, but he was really referring to the 1968 student riots. cultural bias at its best. 

Fri, 10/18/2013 - 15:22 | 4069876 dontgoforit
dontgoforit's picture

And Pebble Beach golf course, and the IBM Bldg in downtown Atlanta, etc. etc.  However, in the end, it's only a building in the center of America's trade center....and after all, who's China's biggest trade partner?

Fri, 10/18/2013 - 17:32 | 4070302 jimmytorpedo
jimmytorpedo's picture

Obama administration: Marxist

Chinese Government: Communist

USA: Fucked

It's all going as planned by Cloward/Pivens.

Fri, 10/18/2013 - 14:16 | 4069574 Mercury
Mercury's picture

What is extremely notable is that in one very quiet transaction, China just acquired the building that houses the world's largest gold vault.


 Does the property come...furnished?

If you are of the mind that gold is a reliable store of value and wealth preserver it does not really follow that you would ever “have your fill” of domestically held gold and instead start storing the stuff in your frienemy’s backyard on the other side of the world.

Maybe the Chinese are anticipating another crash and want to have hard money on hand for when major assets suddenly go on sale.

 

Fri, 10/18/2013 - 14:38 | 4069720 bagehot99
bagehot99's picture

Maybe they just want to have their gold holdings geographically-diversified.

Which is always helpful to party bosses in dictatorships that just might have to leave in a hurry, and might need some walking around gold when they get somewhere less exciting than where they just left.

Or maybe. Or maybe.

Who knows?

 

 

Fri, 10/18/2013 - 14:49 | 4069762 LawsofPhysics
LawsofPhysics's picture

Boy, they are going to be pissed when they realize that the vaults are already empty.

Fri, 10/18/2013 - 15:24 | 4069887 dontgoforit
dontgoforit's picture

Some interesting comments.  One never knows until everyone knows.

Fri, 10/18/2013 - 15:54 | 4069995 gavrilo princip
gavrilo princip's picture

buying gold, and now buying the gold vaults. the game is clear. later, when the gold is used to trade goods globally, Yellen will be telling that she never saw it coming. By that time, her opinion and dollar bills will be worth even less than today.

Fri, 10/18/2013 - 14:00 | 4069575 DoChenRollingBearing
DoChenRollingBearing's picture

O/T a bit, but I saw a catalog of bearings from ZWZ, their largest manufacturer.  I was very impressed.  Their technology (at least ZWZ´s) is right up there with the best of them.  German machinery...  They even make the really big bearings for windmills (and China is ahead of us in wind turbine technology).

So, yes, it makes perfect sense that China wants other places to store the immense wealth they will be making in the future.

Fri, 10/18/2013 - 14:04 | 4069594 fonzannoon
fonzannoon's picture

China is working on a gold backed Yuan to usurp the USD and they want gold stored in NY? 

This whole thing is a bunch of crap.

Fri, 10/18/2013 - 14:08 | 4069614 Bay of Pigs
Bay of Pigs's picture

Like we need moar rabbit holes to crawl down.

Yes, something really stinks...

Fri, 10/18/2013 - 16:02 | 4070024 cro_maat
cro_maat's picture

"moar rabbit holes"

Let's not forget that the vault in Chase Manhatten Plaza is linked to the Fed's vaults. If China is secretly negotiating the liquidation of large tranches of their Treasury holdings with the Fed then this would be a convenient way for the Fed to deliver gold to China (into their new vaults) without exposing the liquidation.

Sat, 10/19/2013 - 06:05 | 4071399 StychoKiller
StychoKiller's picture

Wheels within wheels within wheels...

Fri, 10/18/2013 - 16:08 | 4070044 Renewable Life
Renewable Life's picture

Whether you believe it's going to be backed by gold or not, the Chinese ARE going to push the Yuan into the front seat with the dollar, as the planets reserve currency!

There's not single person you can find, who has done business in China, who won't tell you that. The Chinese only ambition in this world is too become the worlds #1 economy, culture, and power, period!

They also believe, total victory will only be had, if it done without firing a shot!

Fri, 10/18/2013 - 14:05 | 4069599 Enslavethechild...
EnslavethechildrenforBen's picture

It will be just a temporary holding place until they can ship their Gold over the pond. They will gladly exchange their paper for your metal.

Fri, 10/18/2013 - 14:07 | 4069611 fonzannoon
fonzannoon's picture

Then why didn't Germany out bid them for it?

Fri, 10/18/2013 - 14:11 | 4069624 Ham-bone
Ham-bone's picture

..."ancient Chinese secret"...

Fri, 10/18/2013 - 14:14 | 4069639 fonzannoon
fonzannoon's picture

Excellent point Ham-bone. Now we know what they will be storing in there!

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

Fri, 10/18/2013 - 14:40 | 4069675 Ham-bone
Ham-bone's picture

http://www.youtube.com/watch?v=BJP5f-fsHrs

nice...but this is what I was actually thinking...

What does worry me a lot in gold right now is how utterly dependent the market has become on the Chinese...if they are buying half of all new supply...what happens if they stop or slow down for whatever reason?  Is there an obvious party ready to pick up the slack???

Fri, 10/18/2013 - 14:49 | 4069763 Bay of Pigs
Bay of Pigs's picture

Yeah, India. Too bad their gov't suspended imports. I'm sure Russia and some Arab states would take all they could too.

There isnt enough gold anywhere on the planet to satisfy the claims made on every single ounce out there. It's just another paper Ponzi.

Fri, 10/18/2013 - 14:46 | 4069750 Miffed Microbio...
Miffed Microbiologist's picture

But doesn't this violate the first rule of physical? If it is not in your possession it is not truly yours? I guess China thinks the USA is so far gone they'd never consider nationalizing it.

Miffed;-)

Fri, 10/18/2013 - 14:01 | 4069577 Seize Mars
Seize Mars's picture

All your base are belong to us.
I am disappoint.

Fri, 10/18/2013 - 14:05 | 4069597 diogeneslaertius
diogeneslaertius's picture

this post was relvant to my interests.

Fri, 10/18/2013 - 14:01 | 4069579 Running On Bing...
Running On Bingo Fuel's picture

"Just because there's a gold vault down there does not mean that there is any gold in it".

That's what the guys at the security desk told me...

Fri, 10/18/2013 - 14:01 | 4069582 Canuckistan Al
Canuckistan Al's picture

You got to figure that it will be a lot eaier to move the gold from the Fed over to their new shiny fault next door. I suspect the Chinese are saying no freaking way we are going to wait 7 years for our Gold like Germany did, should only take a couple of hours to move it across the street.

Fri, 10/18/2013 - 14:04 | 4069591 Seize Mars
Seize Mars's picture

It's aaaaaallllll on purpose, folks. And brzezinski is one of the senior scriptwriters.
Ever read one of his books? 110% smokescreen and misinformation.

Fri, 10/18/2013 - 14:04 | 4069595 diogeneslaertius
diogeneslaertius's picture

lease-in/lease-out by NWO, Inc. to whom both "nation states" are mere subdiairies and distinct operating divisions

 

our government has been hijacked forever and China is an open laboratory where human life is not just cheap, it is worthless.

tonight im gonna party like its 1912

http://youtu.be/CtCZ5HKr-qI

Fri, 10/18/2013 - 14:16 | 4069648 DLux
DLux's picture

The ancient culture in China has been horribly brutal for thousands of years. Human life is definitely worthless there.

Death by a 1000 cuts was utilized in China as punishment for over 1000 years until outlawed in 1905. Beheadings were commonplace for 4000 years.

Fri, 10/18/2013 - 14:05 | 4069600 Seize Mars
Seize Mars's picture

You can't buy pussy, though. Wait...can you?!

Fri, 10/18/2013 - 15:04 | 4069821 Enslavethechild...
EnslavethechildrenforBen's picture

Every gov in the world prints paper that you can give away for clean pussy.

Fri, 10/18/2013 - 20:18 | 4070820 Seize Mars
Seize Mars's picture

Hmm

Fri, 10/18/2013 - 14:11 | 4069618 Ham-bone
Ham-bone's picture

.

Fri, 10/18/2013 - 14:34 | 4069703 Running On Bing...
Running On Bingo Fuel's picture

Frack the bedrock bitches!

Fri, 10/18/2013 - 14:11 | 4069620 mbutler101
mbutler101's picture

Someone needs to fall on their sword...will it be JP Morgan?

Fri, 10/18/2013 - 14:11 | 4069623 John Bigboote
John Bigboote's picture

Furnished with lots of office furniture but no bullion (that doesnt belong to a lot of soon to be dissapointed "holders").

Fri, 10/18/2013 - 14:13 | 4069633 diogeneslaertius
diogeneslaertius's picture

BUCKAROO BANZAI

AGAINST THE

WORLD CRIME LEAGUE

http://youtu.be/8MqJ3iGBdOo

Fri, 10/18/2013 - 14:15 | 4069647 John Bigboote
John Bigboote's picture

Love it. Good times.

Fri, 10/18/2013 - 14:12 | 4069626 Kirk2NCC1701
Kirk2NCC1701's picture

Dear Messrs Bankfine, Demon and Obummer,

Please present yourself to us for "An hour on the Tower of Power".

Sincerely, PBOC

Fri, 10/18/2013 - 14:23 | 4069658 Mercury
Mercury's picture

In the meantime...

 

Fri, 10/18/2013 - 15:10 | 4069729 Running On Bing...
Running On Bingo Fuel's picture

You guys are fearful that the Chinese have the potential to rule globally.

It's the welfare state that made us weak, the political system, and how the juice used it against us.

In China everyone works. There are no safety nets. You work or you perish from starvation. Because of this the people are strong.

In the US, the masses are weak and dependent, feminine and worthless like this thing:

http://en.wikipedia.org/wiki/John_Miller_%28journalist%29

Fri, 10/18/2013 - 19:24 | 4070660 Freddie
Freddie's picture

One of the things that was pretty funny was Greece, EU and maybe Cyprus was looking for a bailout from China.   It was less than a year ago.  I think they wanted the Chinese to buy EU bonds or ECB (European Central Bank) bonds.

Some wag, not sure if it was Nigel Farage, said that the Chinese had no interest in buying European bonds to support european walfare programs that allowed Europeans to work 30 hours a week and retire at age 49 or something.  It was right on the mark.  The Chinese said no thanks to those bonds and the "bailout."

Mon, 10/21/2013 - 12:45 | 4076350 MeelionDollerBogus
MeelionDollerBogus's picture

Actually there is healthcare if you reside in your home province of birth. That's it.

Fri, 10/18/2013 - 14:12 | 4069627 diogeneslaertius
diogeneslaertius's picture

"starting to acquire gold warehouses in the banking capitals of the world"

you create a new base, you move all your shit there because the population is pliant, you use the templates perfected in the west for manufacturing, mining etc. (use round eye managers and design to get the ball rolling)

 

all it took was the yat-sen, kai-shek, mao loop to gut the culture, csco and goog built some slick Orwellian hardware (why simply dominate the media eh CFR?) hand-picked council of 300 (several thousand in this case) viceroy superclass c3po's run the whole deal. Maurice Strongisn't "hiding" in Beijing -- Suharto didn't happen on accident lol.

you then play the western nations while using them as your pit-bull. when it comes time to pull the plug people will cheer as you decommission spent assets and then buy your own shit for pennies on the dollar and get to act as both savior and new moral high ground.

 

think about it. you undercut your own ponzi scheme hologram (comex/lbma) - its a great con really. fucking round eyes barely can even figure out whats going on. they genuinely marvel at the actual physical volume of the sge and legitimacy of Chinese markets.

 

this is the NWO putting its finger in your face and saying to you "thou shalt have suicide nets outside thine factories or thou shalt have no GNP."

Fri, 10/18/2013 - 14:12 | 4069628 A Lunatic
A Lunatic's picture

It will be used as a giant sex dungeon........

Fri, 10/18/2013 - 14:17 | 4069653 Madcow
Madcow's picture

yes exacly - the US is descending into madness - becoming a police state run by bankers and sex crininals.  

here'a video of a woman being tortured by a "cop"  for refusing to have sex with him. Its a good thing no bankers were there or things could have really gotten out of hand - 

 

http://www.youtube.com/watch?v=DkhrWZ6twjw#t=259

 

Fri, 10/18/2013 - 14:14 | 4069637 lasvegaspersona
lasvegaspersona's picture

hmmm

paper gold does not require a vault...I wonder why they need a vault?

Fri, 10/18/2013 - 14:15 | 4069644 Madcow
Madcow's picture

anyone who owns "Gold" or a Gold ETF or any other derivative that is held by JPM deserves what they get - 

 

Fri, 10/18/2013 - 14:26 | 4069649 TwoCats
TwoCats's picture

The reason is unclear ?!?!?!?   I am a software developer, not a financial wonk, and it's clear enough to me.  China wants to become the world's reserve currency (and make good on the fact that U.S. Citizens are already chinese debt-slaves).  In order to do this, they need to acquire a lot more gold.  Holding it abroad makes it easier to accumulate more than people think they have.

Really, was that so difficult?

P.S. I especially love when people (not on ZH) say that China can't eclipse the US as the world's reserve currency because "our economy is bigger than theirs".  They just need to gradually expand the base of nations and institutions that use the Yuan as the root unit of account instead of the USD.  Then someday it won't be so gradual.  They also need to ensure that their currency is perceived as more stable than the USD, hence the gold.

Edit: proofreading

Fri, 10/18/2013 - 14:17 | 4069654 Sizzurp
Sizzurp's picture

Maybe China is looking down the road to their own gold backed reserve currency.  They will want to be able to balance the trade account deficits with real gold delivery. Another possibility is that China just bought a lot of gold that has been parked in NY and they need a place of their own to stash it.

Fri, 10/18/2013 - 19:31 | 4070678 Freddie
Freddie's picture

On that "down the road" idea.  A thousand years is nothing to the Chinese.  Islam and conquest.  The Muslims remember getting kicked out of Spain around 1492 AD.  To them that was like yesterday.

Fri, 10/18/2013 - 14:18 | 4069656 Dr. Everett V. Scott
Dr. Everett V. Scott's picture

The sale price was amazingly low.  I wonder what else was involved?

Fri, 10/18/2013 - 14:22 | 4069668 Running On Bing...
Running On Bingo Fuel's picture

Maybe some oral?

Fri, 10/18/2013 - 14:49 | 4069761 ajax
ajax's picture

 

 

Your 'gold vault' angle is pure bullshit ZH.

What is interesting is the low price paid for all that NYC real estate/floor space.

 

Fri, 10/18/2013 - 15:03 | 4069818 Running On Bing...
Running On Bingo Fuel's picture

You're right but the truth will not come out for a few years.

The underground vault is going to be converted to the largest Bris Studio in the world made up of 8000 studio-like themed shrines decorated by the worlds most kosher rabbis.

It is known that one rabbi, with the help of Michael Eisner, is going to have a Disney like studio for Bris and Bar/Bat Mitzvah.

Mazel tov! Bitches.

Fri, 10/18/2013 - 14:20 | 4069659 adr
adr's picture

Make sure to take as many shares as possible off insiders hands at $1000+ so you can hold onto the worthless paper while they transfer their dollars to yuan for the long haul.

Google is above $1000 to lure in muppets, there is no other reason.

Fri, 10/18/2013 - 14:26 | 4069677 czarangelus
czarangelus's picture

If you wanted to internationalize a gold backed currency, or a gold backed trade settlement instrument, wouldn't it make sense? Shouldn't we expect them to do similar things in, say, London, Tokyo, and Berlin?

Fri, 10/18/2013 - 14:26 | 4069679 williambanzai7
williambanzai7's picture

They are planning the worlds largest foot massage parlor.

Fri, 10/18/2013 - 14:51 | 4069774 ajax
ajax's picture

 

 

"They are planning the worlds largest foot massage parlor."

Damn right Banzai - and space is needed for those basins of dead footflesh-eating littles fishes.

Gold vault my ass.

Fri, 10/18/2013 - 14:27 | 4069682 vincent
vincent's picture

I'm sure the racketeers have already tunneled an alternate entrance.

If I were china I would'nt hold my pecker in that vault.

Fri, 10/18/2013 - 14:27 | 4069683 Z_End
Z_End's picture

China: So we bought some gold in New York and got a really nice building included...

Fri, 10/18/2013 - 14:31 | 4069689 Dr. Engali
Dr. Engali's picture

That's going to make one hell of a Chinese buffet.

Fri, 10/18/2013 - 14:33 | 4069697 FranSix
FranSix's picture

Distressed asset sale of a building by a bank that sold it's gold, bought by a communist regime seeking legitimacy by buying an old building.

Fri, 10/18/2013 - 14:34 | 4069702 yogibear
yogibear's picture

It knows the US dollar is getting close to being trashed,

The Fed wants to steal more wealth and the Chionese want real wealth, gold.

Fri, 10/18/2013 - 14:34 | 4069704 Peter Pan
Peter Pan's picture

Chinese Premier: we like to return american funny money to you in excange for something real. Also we like to buy buiding with people inside. Chinese ghost city not have income.

Fri, 10/18/2013 - 14:34 | 4069705 Jackagain
Jackagain's picture

Here's a preview of what will happen when China opens JPM's gold vault:

 

http://www.youtube.com/watch?v=P84OKTUx6LY

Fri, 10/18/2013 - 14:36 | 4069707 slyhill
slyhill's picture

Sum Ting Wong

Sat, 10/19/2013 - 02:48 | 4071328 LostPolarBear
LostPolarBear's picture

Hoe Lee Fuk

Fri, 10/18/2013 - 14:39 | 4069722 Conax
Conax's picture

Do they get the connecting tunnel, too?

Wait til those smug New Yorkers get to deal with Chinese paramilitary goon guards on the street in front of that building. 

Move arong, lound eyes.   hahaha

Fri, 10/18/2013 - 14:42 | 4069726 Never One Roach
Never One Roach's picture

Buying all the GOLD...houses...buildings...

Soon the Chinese will be stealing all our women!!!

[except, maybe, not the Walmart mammas]

Fri, 10/18/2013 - 14:54 | 4069783 HamRove
HamRove's picture

Our women LOVE big ATM receipts.

Fri, 10/18/2013 - 14:42 | 4069730 Orémus
Orémus's picture

they would not be so stupid to store their gold in it

as soon as it is full there is a mysterious robbery and all is gone, sorry

Fri, 10/18/2013 - 15:04 | 4069822 astoriajoe
astoriajoe's picture

did you make sure you got all copies of the keys?

I thought you asked the sellers attorney to get ALL the keys.

Fri, 10/18/2013 - 14:43 | 4069732 Elliptico
Elliptico's picture

Gold backed yuan?

Fri, 10/18/2013 - 17:42 | 4070332 MeelionDollerBogus
MeelionDollerBogus's picture

Amerinbi, backed by 'american' gold!

Fri, 10/18/2013 - 14:43 | 4069737 Orémus
Orémus's picture

and thank you by the way

Fri, 10/18/2013 - 14:43 | 4069738 Bunga Bunga
Bunga Bunga's picture

That's the ticket for the rich and corrupt Chinese, when the economy falters and the Maos take the streets again. Family and Gold already parked in the US.

Fri, 10/18/2013 - 14:45 | 4069744 HamRove
HamRove's picture

China bought the whole thing for less than a billion, BUT its the largest store of Gold in the US...something don't smell right, ya dig?

Next up China buys up Coca-Cola..so the may pee-pee in it.

Fri, 10/18/2013 - 14:45 | 4069746 curbyourrisk
curbyourrisk's picture

Possession is 9/10th of the law Bitchez!

Fri, 10/18/2013 - 14:46 | 4069751 Winston Smith 2009
Winston Smith 2009's picture

.002% chance QE will end in 2032:

http://tinyurl.com/le6e5hn

Fri, 10/18/2013 - 14:47 | 4069753 daveO
daveO's picture

Yep. They've been unloading Treasuries since spring. They are going to clean out every last oz. at the FED by selling Treasuries. This is very bullish for real money. Very bearish for Federal Reserve Toilet Paper. 

Fri, 10/18/2013 - 14:50 | 4069765 RaceToTheBottom
RaceToTheBottom's picture

They just wanted to have some of their gold help near the centers of WashDC (US Gov and IMF) and NYC (bankster criminals and UN).  Once the SDRs become the world currency, they want to justify being a large portion of the mix.

Presently a basket of currencies,consisting of the euro, Japanese yen, pound sterling, and U.S. dollar.  They will be included in the mix.

The world powers will not give up their ability to deficit finance...

Fri, 10/18/2013 - 14:50 | 4069769 1C3-N1N3
1C3-N1N3's picture

Pull it!

Fri, 10/18/2013 - 14:51 | 4069771 LawyerScum
LawyerScum's picture

That vault doesn't hold gold, it holds the only remaining copy of the Necronomicon. 

Fri, 10/18/2013 - 14:55 | 4069782 falak pema
falak pema's picture

After having bought a share in nuclear power in UK, after having proposed to buy a major part of Peugeot in France, they now buy into corporate USA. While USA sulks in the hangover from Debt default avoidance, Xhina moves on to place its investments all over the world including Africa.

The next two years in this global game will be very interesting.

Fri, 10/18/2013 - 14:54 | 4069786 papaswamp
papaswamp's picture

The Chinese have a plan and they are executing it. ....

Fri, 10/18/2013 - 15:02 | 4069813 astoriajoe
astoriajoe's picture

and sadly, we seem to be assisting.

Fri, 10/18/2013 - 15:10 | 4069839 HamRove
HamRove's picture

Handing it to them on a golden platter.

Fri, 10/18/2013 - 14:55 | 4069787 Poofter Priest
Poofter Priest's picture

They start vaulting gold for companies and soverigns....then if any of these interests default, China keeps their stash of metal.

And yes...if they go to a pm backed currency, having 'stations' in the major financial hubs makes it so easy to do transactions.

Fri, 10/18/2013 - 14:55 | 4069789 Frank N. Beans
Frank N. Beans's picture

the gold vault is only useful because it shortens the tunnel they need to dig to China.

 

Fri, 10/18/2013 - 14:57 | 4069791 Save_America1st
Save_America1st's picture

Gee, I hope nobody flies a big jet into that building...

Fri, 10/18/2013 - 15:01 | 4069809 astoriajoe
astoriajoe's picture

1 down, 1,509 to go.

Fri, 10/18/2013 - 15:04 | 4069819 1835jackson
1835jackson's picture

They are planning on being #1 that's all . 

Fri, 10/18/2013 - 15:06 | 4069829 toros
toros's picture

I noticed a lot of "We Buy Gold" places popping up around Chase Manhattan Plaza.  Now i know why thank ZH!

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