Look at that price drop! Quick stir up some stories about the FED having to buy gold.
Posted on 01/08/2014 8:38:12 AM PST by dennisw
foreward by JS Kim, Managing Director of SmartKnowledgeU
Here is a recent correspondence from our friend Lars Schall, an independent financial journalist, and the German Central Bank, the Deutsche Bundesbank, regarding the exact whereabouts and specifications of Germany’s national gold reserve. From the correspondence below, it appears that the US Central Bank had already leased out Germany’s gold reserves in prior years and no longer has it, as the gold bars the US Central Bankers returned to Germany last year were clearly not the same ones that Germany originally deposited with them. The questions Mr. Schall’s revelations now beg is (1) if the Banque de France and the Bank of England have Germany’s original gold as well; and (2) if the various Central Bankers are deliberately returning Germany’s gold on a painfully slow timeline because they have already leased out Germany’s gold into the open market in prior years, no longer hold it, and must
therefore scrape together Germany's gold from the open market now.
Below is Mr. Schall’s inquiry to the Deutsche Bundesbank:
December 26, 2013
Dear Ladies and Gentlemen:
I am an independent financial journalist. In connection with the transfer of 37 tons of Bundesbank gold from New York to Germany, I came across the news that the bars were a melted before the transfer. May I kindly ask you for the following information:
Why were the bars melted at all? And why couldn’t that wait until the bars arrived in Frankfurt?
Kind regards,
Lars Schall
Even if the gold bars are still there, there might be difficulty in unwinding ownership. For example if Germany deposits the gold and person A borrows it to sell it short to person B. Then person C borrows B's gold and sells it short to D. Now Germany, B and D all claim the same gold bars, which may have never left the shelf at the Fed, while the Fed, A and C all owe the gold to someone. Everything is "fine" just so long as no one abrogates their contracts or demands physical delivery of the gold. However when Germany demanded the gold, that put at risk everyone involved in the chain of short sales.
This is similar to a run on the bank where most of the bank's money is lent out to earn interest. Once the bank refuses to pay a deposit, the whole house of cards crashes. The fed is trying to act like a far less honest version of George Bailey trying to calm the crowd and convince them that they don't need their deposits back right away.
Ted’s Senate page new post is #auditthefed.
“Since 1955.”
Worse than I thought.
Mr. GG2 has speculated that there may be a big stack of tungsten plated with gold sitting in Ft Knox.
Yep. Find one and you'll find the other.
Melting probably proved they weren’t gold coated tungsten.
This is what I don’t understand about this story. It seems like a non-story, because of the analogy you gave.
Can someone explain, why is it such a big deal that Germany didn’t get back the exact gold bars they deposited? Is it still not gold? Do the ones they received not weigh the same? Why should it be considered anything more than shoddy business practice (if even that)?
Ah, but the ATM didn’t flash a message that said
“we have no twenty dollar bills to give you”
Much, not all of the worlds gold is housed beneath NYC. It is in caches for each nation and is transferred back and forth daily to satisfy national obligations. The gold itself goes nowhere except back and forth between the cages.
But suppose you deposited many $20 bills with the bank. And then when you went to the ATM to withdraw some of them, you got this printed message:
"Your request has been noted. It will take us 7 years to complete your request. You will hear from us in 7 years. Have a nice day."
Addendum: I meant to put a question mark at the end of that...
Seven years for a payback does seem to be ridiculous unless this withdrawal threatens to knock down an entire house of cards.
Good point. With my tinfoil hat on too tight I had been thinking the melting was to insert tungsten but it makes more sense that Gernmany required the melt to prove that there was not tungsten.
faulty analogy
a more accurate one would be you retrieving your safe deposit box and the pictures and documents were not the same but duplicates of the ones you placed in there originally.
Germany’s gold was stored in a vault. the intention is that it would not move and would not be touched.
obviously, that is incorrect and the rest of the world needs to comprehend the magnitude of that
If Germany cannot trust the US Government to honor the deposits made, why should ANYONE on the planet do so?
If substantial rumors of this grow, the US Dollar as a world currency, let alone THE World currency, is doomed. With the US AT LEAST 17 Trillion in debt, no plan to reduce it and no indication of fiscal responsibility (”Print, Print, Print” being the motto of the Federal Reserve/US Treasury) people & nations will begin to do an over-print on US bills which reads “The Untied States of Ponzi” and use them for fire starter.
Once the panic starts, you ain’t never seen a ‘run on the bank’ like this will be. When we were in Vietnam the US issued “MPC”, Military Payment Certificates for the US troops to use in the PX, etc. They had images of various, usually classical looking, ladies. These were NOT supposed to be used outside the US military, but invariably tons went into the local Vietnamese economy. Every few months they would change the series and we had to exchange our old MPC for the new bills. (”Hey, what do the girls look like this time?”)
They would lock down the (rear area) bases one morning unannounced, then we’d all swap our money before being allowed out the gate to go to the PX. Once the exchanges were done, we’d head to the PX, hitching a ride on a passing 6-by. The roads outside the bases would be lined with Vietnamese waving bundles of the old MPC, hoping to get 10 cents on the dollar, to exchange for the new series bills.
“‘Fallen! Fallen is Babylon the Great!’
She has become a dwelling for demons
and a haunt for every impure spirit,
a haunt for every unclean bird,
a haunt for every unclean and detestable animal.
For all the nations have drunk
the maddening wine of her adulteries.
The kings of the earth committed adultery with her,
and the merchants of the earth grew rich from her excessive luxuries.” Revelation 18:2,3
If I was a German citizen, I’d INSIST that my government accelerate the repatriation of the nation’s overseas gold bullion reserves. And I’d insist that the returned “bullion” be tested like hell to determine 100% authenticity.
Just as in any Ponzi scheme, the ones who get out of the scam at “the end” will be getting out with next to nothing (or, more likely, nothing).
The question I want to know is “Is all of the United States’ GOLD in Ft Knox all “GONE”?!” I couldn’t give a SH!T LESS about Kraut GOLD!
The Gold in Ft. Knox is probably there... Probably in a thinly wrapped layer around a whole bunch of tungsten bars....
Look at that price drop! Quick stir up some stories about the FED having to buy gold.
Seven years for a payback does seem to be ridiculous unless this withdrawal threatens to knock down an entire house of cards.
“...The very fact that repatriation of 300 tons is scheduled to take 7-10 years tells you everything you really need to know. Fed Ex could deliver that to Frankfurt in a single afternoon if you contracted the transport to them...”
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.