Vice Chairman Of Germany's CDU Party Demands Gold As Collateral From European Bailout Recipients

Tyler Durden's picture

Yesterday we had the Bundesbank making a very strong case for why a pan-European bailout (funded by Germany), would need a "fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty" (beneficial for Germany), today we see the next and final stage of the proposed annexation of Europe by Germany - that which focuses on procuring that which is really important. Hint: not spam. From Spiegel: "Minister Ursula von der Leyen pushes the hard line: any financial aid for euro countries should only come against collateral - as gold reserves or industrial holdings."  More google-translated conditionality: "The CDU politician wants to ensure future aid allocations from the rescue fund through extensive security of the country. The ARD Berlin Studios said the minister, who is also vice-chairman of the CDU party, many of these countries had large reserves of gold and industrial holdings, which they could use for such collateral." And now we know the next steps: i) Eurobonds will come after there is a change to the European constitution which make Germany supreme ruler, and ii) at that point Germany will have all the gold in Europe pledging its bailout. Yes, gold.... not spam.

More from Spiegel:

"Some states are making great efforts to service their debts," she said. "This must be honored. This, however, efforts are also required to maintain long term, it is the collateral," argued the politician. "In fact we have such an effective European debt brake," said von der Leyen,the "Hannover Allgemeine Zeitung".


Thus, von der Leyen, the first cabinet member who has made such claims publicly. The former family minister belongs to the new CDU Commission, which was set up in response to the intra-party debate about the euro crisis. The Panel is to 24 October a Leitantrag work for the party in November. He is also Finance Minister, Wolfgang Schäuble.


Lies with their demands for collateral von der Leyen, however, not on the official cabinet line. For the federal government counts the linking of aid and strict conditions, it said on Tuesday from the U.S. government. Should provide collateral in the form of cash reserves or industrial holdings, the recipients of such aid by von der Leyen's idea, in these circles was not mentioned.

And so on. The gist is more than clear.

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Zero Debt's picture

In that case Germany should keep an eye on Switzerland

slaughterer's picture

Wir wollen das Gold. Sie können die Reste haben. 

TradingJoe's picture

Jawohl Schlachtmeister! Stets zu Diensten! :)))

Careless Whisper's picture

Marc Faber: Halten Sie physisches gold , idealerweise in Schließfächern außerhalb der USA.

Marc Faber: Hold Physical gold, ideally in safe deposit boxes outside the US

@ 1:10

DosZap's picture

Marc Faber: Hold Physical gold, ideally in safe deposit boxes outside the US.

Here Faber is a ding a ling(and I like the guy),in a saftey deposit box in ANY Bank, anywhere, is stupid.

Also,like how many countries are going to let Americans EVEN open an account,plus the costs involved of flitting around the globe to store Gold.(he's talking to the super rich, not most real PEOPLE).

Plus, contrary to popular belef,contents of SD Boxes dissapears regularly,and there's no insurance unless you want to pay big bucks, and provide proof of contents.

Storing any wealth in Banks Ultimately controlled by a Commie Gvt is insanity.

tsx500's picture

exactly right.    i do give Faber credit though... at 2:04 of the video he says (twice) "...i do not trust anyone."     cnbc doofuses silent. 

theMAXILOPEZpsycho's picture

Anyone can open a account or bullionvault or or any of the multitude of 3rd party companies that offer via mat storage in Zurich, Hong Kong, London, Singapore etc etc

SWRichmond's picture

It's kind of like Versaille in reverse, bitches.  Poetic in a vengeful kind of way.

Charlie Bravo's picture

.....this shit is getting real, fellas.

Charlie Bravo

CH1's picture

Yep. I think I'm starting to smell gunpowder and to hear chants of "Germany stole our gold!!"

midtowng's picture

Well, since you can't eat gold what use does it have. Right?

Sudden Debt's picture

more like logic.

Why the fuck is Greece Buying Gold with their Bailout money?!


LONDON (MarketWatch) -- The central bank of Greece added further to its gold reserves in June, lifting its holdings by 1,000 troy ounces for a second consecutive month.

According to the International Monetary Fund, the country increased its reserves to 3.585 million ounces in June, from 3.584 million ounces in May and 3.583 million ounces in April.

The debt crisis in Greece and other euro-zone nations like Portugal had led to speculation among market participants and observers over whether Europe's debt-laden countries may move to liquidate their gold holdings in order to raise cash.

However, accounting for the recent small increase in reserves, a spokeswoman for the central bank recently told Dow Jones: "The Bank of Greece buys and sells gold coins, so there is a small fluctuation in its gold holdings from month to month."

Greece's gold reserves are down slightly from the 3.601 million ounces held in May last year after the central bank sold a small amount of its holdings in mid- to late-2010.

trav7777's picture case they have to leave the euro and need to support their currency.  Duh

theMAXILOPEZpsycho's picture

So if they leave the euro wages out increase!

or are they going to peg it to gold at some thing like 0.00000000 gram for a weeks labour, stone breaking?

This shit is hilarious

Italy it sitting on tonnes of the stuff. Can they just sit tight, wait for the shit to go exponential and actually be in a good position?? IE better than the UK, say? And maybe buy up some of that north sea oil?

Ahmeexnal's picture

Yes, you are correct. This would indeed happen in an "isolated europe" scenario.

But you have to understand there are other forces at work. When TSHTF, wars will break out.

First within europe. Then, when the dust settles, the moslems will just sweep over the old continent and take over.

Such is life.

Randy Kruger's picture

Gold market is so tiny compared to the cash requirements of bailout targets, that this strategy is hardly worth discussing.  Gold would have to be valued at a multiple of where it is today for the numbers to even begin to make sense.

Sgt.Sausage's picture

==>Gold would have to be valued at a multiple of where it is today for the numbers to even begin to make sense.

... and that's gonna happen right soon now. It's been happening for a decade, and it's happening right the fuck now. Give it another decade and we'll easily see mid 5-digit gold. $50,000 seems like a nice round number.

They're not stupid - they see this happening and they see their chance to grab the gold(and other collateral) at today's cheap prices. Give it time. It will play out.

Manthong's picture

Game time.

Now that they are starting to bitch about handing over their traditional barbarous relics and scrambling to get more of it, the price will start to reflect true value in relation to the mountains of paper.

NotApplicable's picture

They are maxing our their credit for PMs while they still can. Why not?

SilverRhino's picture

LOL ... that is the nation-state equivalent of maxing out the Credit Cards and buying PM's.   

That's beautiful!! :)

Dangertime's picture

Gold is looking very toppy for this leg-up.

Hedge your bets peeps and buy some puts.

mayhem_korner's picture

Negatory.  Any spare fiat available for put premiums is to be funneled into physical.  Get out of the paper trading game before it burns down.

CH1's picture

No more paper, except perhaps mines.

Maybe some paper will go up, but it is still paper, and liquidation is ultimately controlled by the state.

slaughterer's picture

The region between $1900 and $2000 was always going to be the difficult battle.  If you think gold will crash through $2000 before Friday (as mentioned on ZH), then you are setting yourself up to be played. 

SheepDog-One's picture

Yep, and only a few months ago $1,200 was deemed Mt Everest for gold. I'd agree gold would 'crash thru $2,000' if Bernank announced QE3 insanity...but thats OK he wont.

slaughterer's picture

Even Michael Burry anticipates easing well into the next Presidential term.  I have no doubts we will see QE3.   Maybe not this Friday, but by year end.    

maxmad's picture

Of course you do.... sheep to the slaughterer

theMAXILOPEZpsycho's picture

yeh but then there's a blood bath in equities which also means money goes to gold - or am I missing something

some commentators are actually saying QE3 will end this leg up for gold as money will flow back into equities which confuses the shit out of me...

clearly gold wins either way and they can only halt it with huge margin hikes, confiscation, or leasing. Silver wins even bigger.

Founders Keeper's picture

If the PTB cannot defend gold $2000 for a month or so, I'll take it as further evidence the next leg down in the markets and financial system are accelerating faster than even I expect.


theMAXILOPEZpsycho's picture

I'm with Jim Sinclair and his Jesse Livermore method.

Gold is now being pulled up on angels wings

Silver is just breaking out of the shakles too

SheepDog-One's picture

Hell with that, Ive been hearing 'gold is looking real toppy and you better put your money in puts here' since gold was $500.

Dangertime's picture

Yes, but now I am suggesting it.

Bring the Gold's picture

If you have to play with paper it might be an ok SHORT TERM move. But really you are just trying to maximize gains. The End Game is afoot Dr. Watson!


FWIW, I own PM mines and Sprott PHYS when I must dabble in paper form...which I must sadly. When ever you can though it's all about Olivia Newton John's age old advice:


Enjoy the video 3 ladies of ZH.



tsx500's picture

right. ok.  i was just thinking the same thing.  NOT.     

pods's picture

Well good thing they just found tons of Au from that defunct Libyan government?


DeanCarvin's picture

All your Gold are belong to us!

magpie's picture

The little PIIGies ask for their gold back from London and NY and the gold goes where...

Frontrun Hugo, Ursulas.

theMAXILOPEZpsycho's picture

I'm from London, and I have to say its going to be funny watching the banking sector (and all the hanger-on insutries - restaurants, suit companies, corperate art makers etc etc) falling on their asses. Its going to be dangerous, but also hilarious as I negotiate my way through the carnage with my bullion.

Josh Randall's picture

Libya, PIGS, Egypt, Venezuela, et al -- the endgame is GOLD, you can't have a new global universal currency without it

PulauHantu29's picture

Edward Dempsey, chief investor officer at Pension Partners, has been and remains bullish on gold. "Technically, gold is not showing any signs of slowing down," he says. "It's not at the moment exhibiting any signs of weakness or slowing down."

What's driving gold now is "money running from leveraged financial system," Dempsey says, echoing the views of other gold bulls like Porter Stansberry.

orca's picture

Those countries have lied about everything. So good luck recovering those gold reserves, I don't believe at all they are still where they are supposed to be.

mayhem_korner's picture

The Great Tungsten Ponzi...

BTW, how do you get orca from a peering giraffe?

orca's picture

Easy, in FED speak I am either a land orca or a sea giraffe.