Wednesday, March 7, 2012

Is Germany About to Start a Run on Gold Held at the New York Fed?

German lawmakers are to review Bundesbank controls of and management of Germany’s gold reserves. Parliament’s Budget Committee will assess how the central bank manages its inventory of Germany’s gold bullion bars that are believed to be stored not only in Frankfurt, but at locations outside Germany, according to German newspaper Bild.

What's most interesting about all this is that Germany may follow in Hugo Chavez’s footsteps and repatriate their gold to Germany so as to have direct possession of and ownership of their gold reserves. It's really the only way to protect a central bank's gold ownership, since by simply going in and asking the New York Fed to show Germany "their" gold, the Fed can walk them in and show them a pile of gold and tell them that it is theirs. The next day they can walk Chinese officials in and show the Chinese the exact same pile of gold and tell them that the gold is theirs.

Possession is the only sure protection.

Germany’s huge gold reserves – 3,396.3 tonnes of gold are some 73.7% of Germany’s national foreign exchange reserves, and are held not only in Germany but at the New York Fed, in London and in Paris. Dumb.

What kind of pressure will the U.S. put on Germany to prevent them from repatriating their gold? The banksters clearly have German Chancellor Merkel in their pocket, but this is unlikely to be influence that is deep into German political leaders. Thus, a run on gold, started by Germany, is not an impossibility.

In this scenario, the noise you would hear is the spike in gold as Bernanke prints more dollars for open market purchases of gold to fill demand for delivery by various central banks. Yikes.



  1. "Possession is the only sure protection."

    As Murray Rothbard knew all too well.

  2. Long overdue move by Germany.
    One can understand storing gold out of country when Soviet armor looms nearby, but now that threat is done.
    One wonders how much gold the Germans deposited in NY.
    If there was anywhere close to 1000 tons supposed to be there, I wonder if even printing money would be enough to buy that much on the open market.
    I sense maybe The Emperor might have to go have a chat with Angela.

  3. An inquiring mind asks how did Germany come to store its gold reserves outside of the country? By what agreements or principles of understanding did it place its sovereign wealth on foreign soil?

    The Bundesbank by storing its gold in vaults of other countries has participated in participated in a global banking coup d etat, which is leading to the formation of a global federal reserve, that is a One World Bank. Buba’s storage of gold outside the country precludes Germany from issuing any sovereign debt or establishing a sovereign currency. The Bundesbank has precluded Germany from taking any action to establish it self as a sovereign nation state.

    Furthermore, the ECB has established itself as the singular European financial institution by massively expanding its balance sheet by the printing of Euros, by the ECB, with LTRO 1 and 2, and by subordinating Greek sovereign debt (by swapping their Greek debt with new debt that has special status and is not subject to any CAC, that is any write-downs), and by extension it has subordinated all European treasury debt as Bloomberg reported on February 17, 2012, The European Central Bank’s plan to shield its Greek bond holdings from a restructuring may hurt private investors while paving the way for debt insurance contracts to be triggered. The ECB will exchange its Greek debt for new bonds with an identical structure and nominal value, though they’ll be exempt from so-called collective action clauses the government is reportedly planning. That implies senior status for the ECB over other investors, according to UBS AG, and the use of CACs may lead to credit-default swaps protecting $3.2 billion of Greek bonds being tripped. All private investor sovereign bond holdings are now subordinate to those of the Central Banks, the ECB is now the banking backbone of a One Euro Government. The ECB is now the sovereign banking authority in the Eurozone.

    As investment capital is further eroded by competitive currency devaluation, that commenced March 2, 2012, with the trade lower in the world’s major currencies, DBV, and the world’s emerging market currencies, CEW, as seen in this combined Yahoo Finance chart,, political capital will grow replacing investment capital, as leaders meet in summits and announce regional framework agreements, which waive national sovereignty and establish regional bodies such as the EU ECB and IMF Troika as the sovereign. Stakeholders from industry, finance and government will be appointed as monetary cardinals to work under the monetary pope Mario Draghi, which will establish a Eurozone monetary union; these leaders will provide monetary, credit and economic policy. Likewise budgetary commissioners will work in technocratic government to effect fiscal policy which will define a EU fiscal union. Thus through regionalization, a European Federal Government will come about through creative destruction, as fate works to establish regional global governance in all of the world’s ten regions, as capitalism dies on the death of fiat money.

    1. Everybody does it!
      Even Venezuela!!!
      Well, not now...

  4. From ZeroHedge. Seems the Swiss want in on this party too.

    As it turns out, Germany is not alone: as part of the "Rettet Unser Schweizer Gold", or the “Gold Initiative”: A Swiss Initiative to Secure the Swiss National Bank’s Gold Reserves initiative, launched recently by four members of the Swiss parliament, the Swiss people should have a right to vote on 3 simple things: i) keeping the Swiss gold physically in Switzerland; ii) forbidding the SNB from selling any more of its gold reserves, and iii) the SNB has to hold at least 20% of its assets in gold.

  5. Libya tried to repatriate their gold. 114 tons, if I remember. One of Ghadaffi's last acts...

  6. The Gold Quake Memorandum Is Coming!

    You’ll read about the secret history of gold, the central banking cartel and why neither the Fort Knox Depository nor the New York Federal Reserve Bank storage facility in NYC likely have more than a tiny fraction of the gold holdings they claim for the US and other nations like Germany and Switzerland and other central banks of the world.

    It is alleged that the NY Fed has 7,000 tons of gold as of October 2011 and nearly 98% of the gold at the Federal Reserve Bank of New York is owned by the central banks of foreign nations. The rest is owned by the United States and international organizations such as the IMF.

    We believe the pittance of gold bullion stored at these two locations will never have an honest outside audit simply because the gold is not there any longer. A bigger problem is the citizens of Germany and Switzerland are the first of many nations now wanting their gold returned to their home nations but this will never happen and they have no recourse. They can’t push or threaten either the US, nor the Federal Reserve to return the gold or even demand a reputable outside audit because this would cause a global run on all fiat currencies.

    When this becomes common knowledge then the gold price spike as well as the global currency and political collapse foretold in the Gold Quake Memorandum will be upon us. You can reserve a free online PDF copy to be released no later than December 23, 2013 (the 100th anniversary of the establishment of the Federal Reserve) by e-mailing

    Note, the free book could be released far sooner depending on financial, economic and political circumstances.

  7. If Germany requests to have their gold repatriated and the US Government fails to comply, then life will get even more interesting than it is right now.

  8. I suspect knowing al the above, in practice, Germany will ask only a portion of the gold be moved. It may even be moved only to another New York location at first. The end game is quite the same, but it will be slowed.
    What we have to keep in mind is the history of great gold rip-offs - the Spanish in the New World; the British with the Tsar's gold they held to protect for him..and many others, including the nationalization of Gold ownership in the US. Who owns the gold really has the power, and thats why the bankers now are in control - they have used the most sophisticated methods to fool the sovereigns and general populations out of their sound money.

  9. Sorry MATE, your gold is long gone.

  10. "You said to HOLD your gold??? My bad, my bad...I thought you said to fold your gold..."

  11. The usa already used most gold of others thinking they would have enough time (and money) to give it back sometime.. so when they have to give it back to all real owners, i really think usa will be bankrupt!