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Germany pulls home gold from London and New York

Home - by - January 17, 2013 - 07:00 America/New_York - 14 Comments

AMERICAN THINKER

As  progressives openly advocate the coining of a pretend trillion dollar platinum  disc and the Fed continues to balloon the world’s stock  of dollars, Germany is bring home a good part of its gold bullion currently held  in the Federal Reserve Bank of New York,  and all of its gold held at the Bank of England in London. It’s a sign that the  Fall of the Dollar as the World’s reserve currency is officially  underway.

No  doubt we will be reassured that there is nothing to worry about here, but it is  a clear sign that gold is going to be playing a larger role as a store of value  for nations as well as individuals.

Ambrose  Evans-Pritchard of the UK Telegraph  writes:

Germany’s  Bundesbank is to repatriate gold reserves held abroad to tighten control and  combat currency crises in the future, pulling a chunk of its holdings from New  York and all its bullion from Paris.

The  move marks an extraodinary breakdown in trust between leading central banks and  has set off ferment among gold enthusiasts, with some comparing it with France’s  withdrawal of gold from the US under President Charles de Gaulle as the Bretton  Woods currency system crumbled in the early 1970s.

Handelsblatt  said the Bundesbank will announce on Wednesday that it intends to relocate the  gold to vaults in Frankfurt, said by insiders to include parts of the old  archive library. Germany has 3,396 tons of gold worth roughly £115bn, the  world’s second-largest holding after the US. Most of the reserves were stored  abroad for safety during the Cold War.

The  bank holds an estimated 45pc of its gold at the US Federal Reserve in New York,  and 11pc at the Banque de France, lower than originally  thought.

MORE

h/t  Mr. Feather

» 14 Comments

  1. Ha ha

    January 17th, 2013

    Betcha Turbo Timmy neglects to pay his taxes this year.

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  2. John Cooper

    January 17th, 2013

    I’ve never understood why a country would choose to store its sovereign gold in another country; Certainly a State like Germany could build a vault for that purpose right at home. So is the U.S. paying Germany to keep its gold in NY and if so, to what purpose? There are a lot of rumors that the gold has been rehypothecated (e.g. loaned out or used as collateral to someone other than the owner) by the U.S.. I guess we’ll find out eventually…maybe…

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  3. Boobie the Rocket Dog

    January 17th, 2013

    Hope all that gold on the move doesn’t give Al Qaeda any ideas. It’d make a good movie or Vince Flynn novel, though.

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  4. Ya sure

    January 17th, 2013

    “There are a lot of rumors that the gold has been rehypothecated (e.g. loaned out or used as collateral to someone other than the owner) by the U.S.. ”

    Or it was simply stolen.
    Do you think Merkel will fall for the old candy-coated tungsten bars trick ?

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  5. Aidan

    January 17th, 2013

    Good for them. The Germans have been asked to look the other way … while economic basket-cases like Greece, Spain and Portugal … suck them dry. There’s a reason Germany has the most solvent economy in Europe … they hate bullshit. Trust me on this … my mother was a kraut …

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  6. Dr Tar

    January 17th, 2013

    @John Cooper Gold is really heavy and requires a lot of security to protect. That makes it difficult and expensive to move any great distance. We store gold in the middle of an army base (Fort Knox) and 10 stories below the streets of Manhattan (Federal Reserve of NY).

    So nations rarely, physically move gold out of the secured vaults. They instead keep record of the gold that is held in the vault and who the gold belongs too. If you were able to visit the Federal Reserves vault in New York you’d see different stacks of gold in separate piles around the vault. Each with a little flag for the nation that actually owns the gold. So Germany’s pile is over on that side of the vault and Hungary’s is over there and so on.

    Now here’s something else to chew on. The article says that Germany’s gold is worth 115 billion UK pounds – at today’s exchange rate of $US 1.6 to 1 UK pound that means their gold is worth about $US 184 Billion . You realize that if we stole all of Gremany’s gold it would pay for about a month and a half of our deficit for this year (projected to be $900 billion for 2013).
    http://en.wikipedia.org/wiki/2013_United_States_federal_budget

    Kinda puts our screwed state of affairs in perspective. But, Ben Bernanke and Oblowme don’t think we should have a debt ceiling. Oh, yeah the skies the limit with these spend thrifts. We are so screwed and screwing it up worse for future generations.

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  7. Dr Tar

    January 17th, 2013

    Make that 2 1/2 months of our spending.

    900/ 12 = 75

    184/ 75 = 2.4533 months of payment towards our estimated deficit in 2013 if we were to steal all of Germany’s gold.

    sorry, I was guestimating the first time.

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  8. J Frank Parnell

    January 17th, 2013

    Germany is concerned about the safety and soundness of our banking system. Wake up Americans. Stop their insane spending!

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  9. MADJACK

    January 17th, 2013

    Listen I only have 2 dollars and fifty-two cents in the bank here in the USA and it scares me. :roll:

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  10. Dagney

    January 17th, 2013

    @John Cooper

    Tar is correct. Also, they were storing that gold during the COLD WAR, whilst Soviet tanks were just the other of the Berlin Wall.

    ;-)

    I’m surprised that the US is willing to give that gold back; I’m even more surprised that the Germans dared to ask their gold back.

    I’m long gold, and silver. I use dollars only to pay the bills and buy daily stuff.

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  11. Dagney

    January 17th, 2013

    The Fed is slow rolling the audit.

    What are the odds the gold ain’t even there anymore?

    Maybe it’s all just a psy-op, press spin to appease German public opinion.

    HArd to tell how much is real.

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  12. IMPEACH Obama

    January 17th, 2013

    My grandfather’s advise: “Don’t believe everthing you hear, and half of what you see.”

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  13. F.D.R. in Hell

    January 17th, 2013

    The original axiom is “Don’t believe anything you hear, and only half of what you see.”

    So, don’t believe me when I tell you that JFK was taken out because he intended to put America back on the Gold Standard.

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  14. AvgDude

    January 17th, 2013

    Subjectively, I’d say there is a 50% chance that some bolshevik turd in the administration will bring up the idea of stealing Germany’s gold by not allowing them to retreive it, and a 10% chance that our thug of a POTUS will try it.

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