*Update: A couple of people have made a stink about this post claiming that it is misleading because the prior agreed upon repatriation schedule has not actually changed. That said, anyone who reads the Bloomberg piece will quickly conclude that the article clearly implies something had changed, which is why I made this assumption. In fact, the source article was so misleading that Peter Boehringer, co-founder of “Repatriate Our Gold,” posted the following in the comment section:
What Mr. Boehringer makes clear, is that there is nothing “new” in the Bloomberg article. That of course is not to say that the repatriation schedule as it stands is not preposterous. It is, and he agrees with that wholeheartedly. So the reason for this update is clarify this one key misunderstanding. That doesn’t change many of the key points of the post. Those are:
1) The interesting observation that German officials and politicians continue to put so much faith in the Federal Reserve just as “End the Fed” protests spread through the nation.
2) The ridiculous notion that it is in any nation’s interest to liquidate gold for Central Banker created fiat, which can be conjured into existence in infinite amounts, at zero costs in no time.
3) That the politics on the ground of the ruling party seem to be shifting against repatriating the gold (that is clearly Bloomberg News’ take).
Just last week, I published a post titled, Video of the Day – “End the Fed” Rallies are Exploding Throughout Germany, which subsequently went viral. Interestingly, only a few days later we find out that Germany’s very own criminal political class has decided it will continue to store the nation’s gold in New York rather than bring it back home as had been the intention. It’s quite ironic that just as protests against the fascist Federal Reserve are spreading throughout the land, the political class officially decides to keep Germany’s treasure across the Atlantic, in care of none other than The Fed itself.
To be fair, this merely seems like a way for Angela Merkel and the rest of her German cronies to save face. After all, it was very clear that the Federal Reserve had already told them “no” when they asked for the gold back in the first place. Why else would it take almost a decade to transport the gold from the U.S. to Germany, which was the latest repatriation schedule. We learn from Bloomberg that:
Surging mistrust of the euro during Europe’s debt crisis fed a campaign to bring Germany’s entire $141 billion gold reserve home from New York and London. Now, after politics shifted in Chancellor Angela Merkel’s coalition, the government has concluded that stashing half its bullion abroad is prudent after all.
“The Americans are taking good care of our gold,” Norbert Barthle, the budget spokesman for Merkel’s Christian Democratic bloc in parliament, said in an interview. “Objectively, there’s absolutely no reason for mistrust.”
The Bundesbank, Germany’s central bank, sent a delegation to the New York Fed’s vault in 2012 for spot checks on the hoard. As the gold’s guardian, the Frankfurt-based Bundesbank is obliged to ensure its safety. It says it’s sensible to store part of the reserves outside the country so they can be swapped more easily for foreign currency in an emergency.
This last sentence is absolutely incredible in its Orwellian irrationality. Swap gold easily for foreign currency? Foreign currency can be conjured up in infinite amounts at will by crooked bankers in suits with phony smiles and calming words filled with complex economic jargon. So Germany needs to be able to swap its gold for that? Well, it seems many nations are falling for this simple, yet effective scam, as I outlined in my post: Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity.”
German gold reserves, the second-biggest in the world after those of the U.S., totaled 3,386.4 tons on March 31, according to World Gold Council data. Due to German postwar history, the biggest part is stored at the Federal Reserve Bank of New York; the rest is in London, Paris and Frankfurt.
“Right now, our campaign is on hold,” Peter Boehringer, a Munich-based euro critics who co-founded an initiative to bring home all of Germany’s gold in 2012, said in an interview.
Full article here.
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