Germany May Want PIIGS Gold as Security for ‘Bailouts’ – Merkel’s Officials in Damage Limitation Mode

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Wed, 08/24/2011 - 08:23 | 1594469 oogs66
oogs66's picture

Greece should default first, then use the gold to get new loans....PIMCO probably sitting on a lot of cash they could loan to Greece under the right terms - big coupon and fully secured by gold.


Wed, 08/24/2011 - 08:47 | 1594545 slaughterer
slaughterer's picture

Wir wollen das Gold.  Sie können die Reste haben. 

Wed, 08/24/2011 - 08:26 | 1594474 orca
orca's picture

The government knows something she doesn't:
German government spokesman says calls for Gold collateral can get very complicated
And I know what it is, if you promise not to tell anyone: the shit is not there. It is leased out, sold, stolen, evaporated or eaten by mice, whatever, it is NOT there.

Wed, 08/24/2011 - 08:35 | 1594502 Badabing
Badabing's picture



“German government spokesman says calls for Gold collateral can get very complicated”

No shit, for every lease another 100 to 1 scenario maybe 10X what is believed

Wed, 08/24/2011 - 08:43 | 1594530 orca
orca's picture

You have no idea how complicated it is to transport those bars from vault A to vault B. Super duper gigantically complicated. Has not been done before in the history of mankind.

Wed, 08/24/2011 - 08:58 | 1594595 Confused
Confused's picture

Your statement HAS to be wrong. If not, how did all the gold get into the Federal Reserve building in NY?

Wed, 08/24/2011 - 09:04 | 1594626 NidStyles
NidStyles's picture

There's gold there? You sure about that? Last I looked it was housed on a Military installation at taxpayer expense.

Wed, 08/24/2011 - 09:28 | 1594721 Absinthe Minded
Absinthe Minded's picture

All I know is I got mine in house,fuck the idiots not smart enough to see the writing on the wall. If you're smart you'll take this little fire sale as your opportunity to get in.

Wed, 08/24/2011 - 10:51 | 1595075 Smiddywesson
Smiddywesson's picture

The gold is too there at the NY Fed, I saw it in a Bruce Willis movie.

Wed, 08/24/2011 - 08:45 | 1594536 molecool
molecool's picture

Of course you realize this could crash the gold market.

Wed, 08/24/2011 - 08:48 | 1594547 eureka
eureka's picture

Is the 4,000 metric tons of European gold - deposited at the NY FED -  still there?

Let's guess now - would Wall Street refrain from leases and leverage? Hmm.

Would U.S. imperial elite?

Wed, 08/24/2011 - 08:59 | 1594602 Confused
Confused's picture

There is certainly gold there. As for how much? Who knows.


You can go on a tour of the building. Which is worth doing.

Wed, 08/24/2011 - 10:54 | 1595096 Smiddywesson
Smiddywesson's picture

TPTB have had at least three years to replace any "misallocated" gold.  It's been two years since they knew for certain that the economy was not going to revive.  Does anyone think they would sit idly by and let themselves be destroyed.  They are buying for a reason you know, and that reason isn't to be caught red handed and thrown out of power.

Wed, 08/24/2011 - 09:49 | 1594782 Idiocracy
Idiocracy's picture

Was there any gold in the basement levels of the twin towers prior to 9/11? I seem to recall something about first responders seeing gold around the base of the rubble.

Wed, 08/24/2011 - 08:58 | 1594598 knukles
knukles's picture

"the shit is not there"

That's why it gets complicated.
Although, it'd be no different than anything else in the EU with respect to the Euro.
The budget disciplines, %debt/GDP, telling the truth/whatthefuckever.

So why not make taking no collateral for gold in the form of an empty-promissory note (LOL empty-promissory note....) a really unbelievable unfuckingly inordinately complex bundle of machinations so nobody finds out there's no gold.

Business as normal, all bullshite

Wed, 08/24/2011 - 10:05 | 1594841 reload
reload's picture

"Complicated" just like when Germany says to the Fed "you have 2,500 tonnes of our gold, we want it back please" and the Fed says "well thats a bit COMPLICATED because we err lent it to some of our friends on wall street, and now is definately not a convenient time for them to give it back"

The `if you dont hold it, you dont own it` mantra is gaining momentum daily. In times (now) of systemic strain and growing mistrust the desire to hold physical (not the promise of physical) will be compelling for CB`s around the world.

As for transportation, it can be done and insurance can be bought.


Wed, 08/24/2011 - 08:27 | 1594476 rsi1
rsi1's picture

that gold could be useful if it wasnt because it is less than 5% of the value of those countries debts if they managed to even sell all of it at the currently peaking prices of $1850/ounce. What a great solution, for most of the PIGS you dont even cover one year of deficits, yes, makes total sense to sell it in a stupidity contest perhaps?

colalteral is good idea though.

Wed, 08/24/2011 - 08:36 | 1594504 Jim in MN
Jim in MN's picture

Gold or industrial assets are acceptable.  Land and ancient monuments/tourist attractions, negotiable but at a steep discount.

Wed, 08/24/2011 - 08:46 | 1594543 molecool
molecool's picture

I'd accept their hot bitches.

Wed, 08/24/2011 - 09:06 | 1594637 Long-John-Silver
Long-John-Silver's picture

Hot Bitchez degrade in value rapidly due to ageing. Gold never degrades and you can use it to buy fresh new Hot Bitchez.

Wed, 08/24/2011 - 10:59 | 1595120 Smiddywesson
Smiddywesson's picture

that gold could be useful if it wasnt because it is less than 5% of the value of those countries debts if they managed to even sell all of it at the currently peaking prices of $1850/ounce.

That's the end game, amass as much gold as possible and ramp prices as high as you need to dig yourself out.  That's what central banks are doing, and that's why they can't hold gold down.  They can drive down price after quick advances like we have had over the last 7 weeks, but they can't force it under the trend line over the last ten years.


Wed, 08/24/2011 - 08:28 | 1594477 Jim in MN
Jim in MN's picture

All your debases are belong to us!  Raus!

Wed, 08/24/2011 - 08:56 | 1594580 eureka
eureka's picture

Most likely U.S. has been secretly sucking every sovereign's gold, Why else would Uber-Satan Greenspan lately chirp about returning to a gold standard?

U.S. empire is still the Uber-Satan of the world. Own it.

Wed, 08/24/2011 - 08:28 | 1594478 Azannoth
Azannoth's picture

"Ireland has just 6 tonnes"

In Irealnd there is a Bookie on every street corner(and no I am not exaggerating), and I have seen 0 gold coins shops(just a few jewelers), their culture is of total ignorance and stupidity

Wed, 08/24/2011 - 08:38 | 1594516 Badabing
Badabing's picture

All the leprechauns have the gold .   

Wed, 08/24/2011 - 08:49 | 1594553 Dugald
Dugald's picture

Dat's roight to be sure.....All the gold in Ireland is in a crock at the end of a rainbow!!

Wed, 08/24/2011 - 09:21 | 1594686 Herman Strandsc...
Herman Strandschnecke's picture

That may be so but I bet they felt the virginian earthquake in Dublin five hours before you did.

Wed, 08/24/2011 - 11:21 | 1595207 Smiddywesson
Smiddywesson's picture

The Irish hold no gold because the word's out they're switching to a Lucky Charms standard.

Wed, 08/24/2011 - 08:55 | 1594582 tmosley
tmosley's picture

Look to the laws.  They may be prohibited.  Such was the case in the US from 1933-1973.

Wed, 08/24/2011 - 09:00 | 1594607 rsi1
rsi1's picture

nah, its a free country, unlike others, its not ilegal. if it were ilegal, people would be more aware of it, and would have gold.

Wed, 08/24/2011 - 08:30 | 1594483 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

... and this is how you steal a countries real wealth with money 'printed' out of fresh air.

The whole world will be bought with imaginary "Jew confetti"! As was the plan all along...

... the greatest scam in history.

Wed, 08/24/2011 - 08:44 | 1594531 Internet Tough Guy
Internet Tough Guy's picture

Self immolate already, racist.

Wed, 08/24/2011 - 09:00 | 1594606 tmosley
tmosley's picture

Not particularly racist.  It is more of an insult to the currency than the the race or religion.

If you are going to attack someone for being racist, I would suggest you go spend some time in the Rothschield thread.  Huge number of people who I have never seen posting before came out of the woodwork to jabber on about how evil DA JOOZ are.

Wed, 08/24/2011 - 09:10 | 1594655 Internet Tough Guy
Internet Tough Guy's picture

Yes just say 'Rothschild' and the ZH claven swings into full cross-burning moral outrage. It's a reason comments here should be disregarded if not avoided. Apparently ZH is quite comfortable being the last bastion of such cockroaches.

Wed, 08/24/2011 - 09:10 | 1594654 Long-John-Silver
Long-John-Silver's picture

You should google "Jew confetti" so you understand what an ignorant comment you just made.

Wed, 08/24/2011 - 09:13 | 1594664 Internet Tough Guy
Internet Tough Guy's picture

Because it's really a compliment, right penguin?

A conspiracy theory took root that the inflation was a Jewish plot to ruin Germany. The currency became known as "Judefetzen" (Jew- confetti), ..."


Wed, 08/24/2011 - 14:29 | 1596060 tamboo
tamboo's picture

says the biggest palestinian murdering racist of all time.

only about 60 million christians slaughtered by them in russia alone.

dont forget ukraine and armenia too mr. play the race card.

Eustace Mullins: The Secret Holocaust (e-book) - Wide Eye Cinema


Wed, 08/24/2011 - 10:02 | 1594836 SMG
SMG's picture

Not Jews, Illuminati.   Blame the right people for true justice.

Wed, 08/24/2011 - 11:23 | 1595217 Smiddywesson
Smiddywesson's picture

Regardless of who bears the blame, you are dead on...the greatest scam in history.

The Fed and the ECB are not going down without a fight.

Wed, 08/24/2011 - 08:33 | 1594494 DonnieD
DonnieD's picture

Can't they post Spam as collateral?

Wed, 08/24/2011 - 08:34 | 1594497 DaBernank
DaBernank's picture

Cyprus should offer the northern 1/3 of their island as collateral to Germany.

Wed, 08/24/2011 - 08:34 | 1594499 SwingForce
SwingForce's picture

Are you perhaps in the gold business?

Wed, 08/24/2011 - 08:35 | 1594501 MonkeySmoke
MonkeySmoke's picture

How can a barbarous relic, religion, non-money item be used as collateral? Why would anyone, especially a country want "gold"?

/sarc on

Wed, 08/24/2011 - 08:48 | 1594549 Dangertime
Dangertime's picture

May I suggest diamonds?

Wed, 08/24/2011 - 08:35 | 1594503 FunkyOldGeezer
FunkyOldGeezer's picture

1) where are those Gold reserves actually vaulted?

2) IF the Eurozone actually has more than the USA, AND it is mostly in European vaults, where does that leave the Euro/Dollar WTSHTF. Euro more attractive as a  run-to currency, or the new Global?

I'm just asking.

Wed, 08/24/2011 - 09:19 | 1594601 eureka
eureka's picture

Per Jim Rickards you are correct. Italy has far more gold per capita than U.S..

Wed, 08/24/2011 - 08:36 | 1594507 williambanzai7
williambanzai7's picture

Ireland has 10,000 gallons of whiskey

Wed, 08/24/2011 - 08:41 | 1594519 Snidley Whipsnae
Snidley Whipsnae's picture

...and, whiskey aint paper!

Irish Whiskey... real collateral and almost the equal of gold!

Wed, 08/24/2011 - 08:42 | 1594524 Arrowhead
Arrowhead's picture

I am long Redbreast

Wed, 08/24/2011 - 08:37 | 1594510 Bartanist
Bartanist's picture

Requiring gold as a collateral against a fiat loan?

So, Germany and the EU/ECB would be trading a journal entry for a physical asset. That hardly seems fair. People around the world have to get over the misunderstanding that bank journal entries have real value and are on parr as a tradeable asset for REAL physical assets and labor.

The so called PIIGS would be much better off creating their own fiat journal entries and telling Germany to go pound sand.

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