[KarlInOhio]

One thing isn't clear is whether this is Greek government gold or individual Greek people's gold. From the linked article it looks like it is the government's reserves. I can't say I blame the other countries and bankers demanding that be turned over. If someone was screwing me over by not paying their debts and wanted to declare bankruptcy, I certainly would demand that his coin collection be turned over to me or sold and the assets given to me.

I'll save my sympathy for the chance that individual Greek citizens start having their gold taken away from them to cover the Greek government's debts.

[BfloGuy]

I can't say I blame the other countries and bankers demanding that be turned over.

I think you're right. At first read, it sounds as if ZeroHedge is being far too dramatic. One other point is that, even though FDR did outlaw the private ownership of gold in the U.S., there was still a gold market outside the country.

And it proved important in Nixon's decision to break the last ties to gold. The United States, in order to hold gold down to $35/oz., was constantly having to sell gold on the open market. Eventually, though, the entire world knew that the dollar was vastly overvalued and Nixon realized that our entire gold reserve wouldn't be enough to keep up the fiction.

[El Cid]

That was my take also.
If Greece is getting bailed out for the umpteenth time, if I were the lender I'd darned well want to get my hands on some hard assets as collateral, rather than more promises. I'm surprised they haven't done this earlier.

[MWF054]

I hear they have some nice little islands they could put up for sale too.