No, still not about the Russian gold, and German. Just last week, we published a post titled "End the fed", which literally blew up a German Internet. Interestingly, after just a few days later, we learned that German politicians decided to continue to keep the national gold in new York, instead of returned as planned.
The irony is that the official decision to leave a national treasure on the other side of the Atlantic came at a time when the protests against the fed spread around the country.
Frankly, this looks like a way to save face for Angela Merkel and her German friends. In the end, it is obvious that the fed has already told them "no" when it came to returning the gold. What other reason to transport gold from USA to Germany would take almost a decade (which was implied by the last schedule of returning to the gold)?
Germany has decided its gold is in America safe.
Wave of distrust that has risen during the debt crisis in Europe, led to the decision to return to Germany all of its gold reserves to 141 billion dollars in gold from new York and London. Now, when there was a shift of politicians in the entourage of Chancellor Angela Merkel, the government concluded that the best solution would be to hide half of the total national gold overseas.
"Americans are concerned about our gold properly, said in Parliament on budget policy expert Norbert Barthle. — Objectively, to distrust, there is absolutely no reason".
Talk of the return of the second largest world reserves, away from potentially touchy relations between the United States and Germany. This can also be seen as a rebuff to critics, in favour of the alternative to the euros who insist on returning the gold to Frankfurt, so you couldn't use it to blackmail Germany with the aim of preserving the single currency.
Germany's Central Bank, the Bundesbank sent in 2012, the Commission, in the Federal reserve vault in new York to check national stock of gold.
Since the national gold is in its custody, Bundesbank is obliged to ensure its safety.
They say it is quite prudent to keep some gold reserves outside the country, in case of extreme necessity you can easily exchange it for foreign currency.
The last statement is striking in its Orwellian irrationality. Easy to exchange gold into foreign currency? Foreign currency can indefinitely inflate roguish bankers in expensive suits with fake smiles and complicated set of economic terms in stock. And Germany hopes to keep the possibility to exchange their gold?
German gold reserves are the second largest reserves after USA. According to the world gold Council, on March 31, they amounted to 3 tons 386,4. Most of these reserves are stored in new York, the rest in London, Paris and Frankfurt.
But before this, Germany just announced its intention in 2020 to retain only 50% of its gold reserves, among other things, the second in the world in massiveness – 3.396 tonnes. That is, in this case, move 300 tons from new York and 374 from Paris to the cellars of Frankfurt. Stocks in new York (37%) will continue to exist, and only Paris will be deprived of German gold completely. Emphasis is the language that the Germans move gold:
"...in order to build credibility and confidence at home and to be able to change the gold for foreign currencies at gold trading centers abroad within a short time."
Comes to mind the thought that our eyes is change the structure that existed from the day of introduction of Euro. Berlin fully displays his gold from Paris, with whom he has a common currency and thereby shows that in the future he is not interested in Paris as a financial centre, which will be paid as needed to change the gold. Apparently, according to Berlin new York in the future will retain this function, but besides him the German gold is still in the same place, and that storage Germany has not presented any demands. This place is London, where 13% of gold reserves of Germany. British store actually fell out of the news, and yet it involves a very important event that occurred ten years ago.
In 2000, the Bundesbank had in the Bank of London 1.440 tons of gold. Then submitted to The Telegraph in 2001, the balance dropped to 500 tons (now, by the way, it is 450). 940 tons of gold during the year were removed from London vaults and quietly moved to Frankfurt. According to the official version, "due to the fact that the cost of gold storage was prohibitively high." In America the German gold is stored for free in General, because, according to the Americans, it gives weight to the dollar as the world reserve currency, but now withdrawn. Version of a decade ago looks completely far-fetched – so why the Germans did it?
Ambrose Evans-Pritchard in the Telegraph voiced the hypothesis is due to the fact that London at that time started to sell gold at a low level price, in connection with which the Germans began to fear that their own gold could go under the hammer.
Actually, besides the obvious risk here is hidden something else. Poslova Carl-Ludwig Thiele, "after the return of our gold from London it was subjected to a thorough check. As a result of the ingots was melted to meet the London Quality standard of Delivery, which is the basis of the international gold trade".
Mr. Thiele had completely forgotten the fact that the London store only deals with bullion coated, others out there simply do not accept. If his Bank was forced to melt their gold, then from England back some fakes.
The Shadow Of Bretton Woods
And here we must refer to the events of the second half of the twentieth century, namely 1968. If a good rummage in open archives of the Bank of England, you can find there a memo C43/323 dated may 31, 1968 and entitled "Data of the gold and foreign exchange – different". In it someone asks Robson to Roy Pierce, at that time the chief cashier of the Bank of England and the final recipient of the note was Charles Coombs, responsible for operations with gold and foreign currencies by the Federal reserve.
The note explicitly describes how during the Bretton woods agreement two of the Central Bank, England and the United States, in the course of the conspiracy sent to Germany gold bullion obviously low quality.
For non-English-reading, just the facts: at least two of the Central Bank conspired at least once to pass the Bundesbank that was 172 bullion "gold bad delivery", and both of the Central Bank were aware of this. The "bad delivery" occured despite warnings from the official melters that the quality of gold from US Assay Office noticeably below standard, and the Bank of England and Federal reserve knew. Instead of fix the situation, banks simply agreed to close this information from the Bundesbank. The gold was transferred to London, that he settled in Berlin as part of the regular payments.
The Bank of England finds no inconsistency in American gold, shall notify the Federal reserve that among his ingots discovered a lot of "bad delivery", but – and this salt – in this case, the parties expect to keep it a secret, since the ingots obtained the Bundesbank. This is only one documented incident. It is easy to imagine that hundreds of thousands of bars, on the securities listed as the LPC, during the years of Bretton woods lost some weight. It is unknown how many peripheral banks received them as LCP, and you can imagine what happened to the bullion stored in new York. It is to imagine, because the real way to check their quality does not exist. Without more evidence this is all just a mind game.
Thus, it becomes clear desire of Germany to keep secret the gold operation with London, in particular, why is the return in 2000 was carried out so secretly, although the Germans had every right to reclaim their property. If anyone has attended even a good rummage in open sources, this would put into question the entire gold reserves of Germany, because God knows how many times was a bad delivery and what is the true content of gold in the metal, which is stored in Germany and for Germany. The fact that part of it had melted, says that Scam in the U.S. and England was opened, but still effectively occupied Germany was not in a position to claim.
They used to say "get out", and now "come tomorrow"
Draws attention to the repayment period. 300 tons of Germans will be vozvrashatsa years. From the same Federal reserve that supposedly keeps 6720 tons of gold in its vault. This despite the fact that three times more volume was returned from London in the course of the year. Of course, the whole world thought of one – in the basements of America and France this gold simply do not exist. I'm not going to focus on the widely publicized problem of tungsten ingots. Anyone interested will find enough information about fakes, filled in with tungsten and plated with gold, supposedly discovered by Chinese and other banks around the world. It is unknown how these hoaxes spread, although with the data on "bad delivery" all of this paints an interesting picture.
Even if the gold is still in place, the problem may be in another. Unknown whose this gold in our time. Yes, initially the American bankers acted only as guardians of these values. However, the gold from the vaults of the Federal reserve was repeatedly used by the banks to provide mutual loans and paleobiosphere when the lender uses the collateral of its customers to their own loan. As a result there is a chance that the seven years of need the Federal reserve to determine to whom the gold belongs to physically. The probability that in the process of paleobiosphere as collateral could be presented the gold, which under no circumstances had no right to change the owner.
Volfram or empty storage – these probabilities cannot be ruled out. But it is quite possible that even 5% presumably stored his gold the US Federal reserve can't return just because that cannot match its owner and the metal. It's already floated to the surface in 2011, when the chain paleobiosphere stopped just in time for London. The result was a completely wild story by HSBC, one of the two most important custodians of gold in the world, including not somebody, and the SPDR Gold Shares trust, which owns more than 42 million ounces (that's more than the gold reserves of China). HSBC was forced to sue MF Global "to determine whether he or any other person authorized by the owner of the gold for $850.000".
This is already the edge, because of legal, physical gold bullion can not go from owner to owner until it is stored. It has a unique number and cannot be changed. But it also led to the suit! Instead of the normal procedure was to find the owner of gold is extremely difficult, because the ingots were re-pledged many times in the course of lending operations. As a result HSBC at some point, I began to receive conflicting instructions from multiple owners of the same gold. Important here is not the amount of the claim, as has become the credibility of the mechanism of storage of gold funds are under foreign control. How many more ingots rotates in credit transactions without the knowledge of their owners? Think about it you every.
So the current situation is not the point, it's so fat comma. Extra publicity is absolutely no point in Germany, which allows itself to the mouths of Andreas, Dobre, member of the Executive Board of the Bundesbank, to declare in nebraskabuy:
- discussions about the safety of gold outside of Germany visualearning fears;
- the debate about it sucked from the finger and not to present weighty arguments;
- relations between the Bundesbank and the Federal reserve of Zapravochny for many years;
- Frankfurt is not a trading platform on the gold market, so store your gold in new York is convenient from all points of view;
- for 60 years, Germany has never had any problems with the storage of gold in the United States or of doubt about the honesty of the Federal reserve;
- Germany will continue to use the advantageous position of the new York stock exchange, to use gold if necessary;
- although gold is important, the main task of Germany – to combat the crisis of confidence in the Eurozone, what should concentrate on.
Just a few months, as the official Bundesbank makes a complete u-turn and demands their gold back. It just means that all preparations have been completed and the need for the smoke screen disappeared. The risk of being the last of salutogenesis in the moment when all will fall the chains of apex and each ingot shows up on five of owners, has become too large. In the world now treats the derivatives at $1 quadrillion, which is about 20 times the planetary GDP, and someday all this will be presented for redemption.
Actually Berlin has long understood what it faces. What he has in store in response, we will have the opportunity to learn in the coming years. Experts have described the situation by declaring financial war, and this time Germany looks the defending party. Moreover, the desire to return the gold home immediately after the word is associated with the improvement of relations with Russia.
It's unknown what part he took in the Bank of France, but two weeks after the announcement of the Bundesbank, France launched an operation in Mali. This African country is the third largest exporter of gold in Africa. Seven years is a sufficient period of time to satisfy the request of the European partner. According to a popular joke, Germany has demanded to return her gold from the underground vaults of France. France went to extract it from the ground.
Here was this information. Managing the Hong Kong hedge Fund William Kay, for 25 years, worked for Goldman Sachs in mergers and acquisitions, spoke about missing gold by the fed and Germany — where it went, and how much gold it owns, the people's Bank of China.
Kay: global hegemony (leadership or dominance in the world) is changing, and most people are not aware of this change. This region of the world, Asia-Pacific, specifically China, has positioned itself as a leading world power, as can be seen in the last five to ten years.
My sources tell me that contrary to official figures, China has at least four, and perhaps eight thousand tons of physical gold...
China is not only the world's largest gold producer but also the largest importer.This is an ongoing process in China. This strategic initiative. China is accumulating gold in large quantities, which is very fast pace appears from the West. This geopolitical dynamics, and the far East this rises.
In the "new world order", which should occur when this operation is over, the positions of China, Russia, Brazil will be significantly strengthened. The position of the United States, Europe, and the UK will be significantly weakened. This is a serious consequences.
King: bill, if China already has more than 4000 tons of gold, and maybe even 8000 tons, up to what amount do you think they will increase their gold reserves?Kay: Well, they haven't finished. Gold was rented, and we know about it, because it was admitted by major Central banks. The fed acknowledged this, the European Central Bank admitted it, the Bank of England admitted it. They all recognized that participate in the wholesale leasing of gold to the market.
In practice, it is something like this: the fed communicates with his agent, usually JP Morgan, Goldman Sachs sometimes, and they say, "well, the price of gold should be limited, here 20, 30, 40, 50 tons of gold, we give to you in the lease as his agent. But theoretically we can call him back."
The theory is great, but in reality, when JP Morgan and Goldman Sachs get the gold they sell it on the market. These banks on operations with precious metals are concentrated in a short position on gold, scoring from lowering the prices. And the fed says, "well, we still have a contract under which, in theory, we can withdraw the gold. So in official documents, we will advise that you still speak to them."
But in reality the gold was sold on the market. This gold is moved to places such as Beijing. But before you get to Beijing, it often goes through Hong Kong. And there it goes to our contractors for processing, to the same people with whom we deal. And by the way, Eric, we may own the gold, which Germany considers to be an asset. But Germany will never see that gold because it is stored securely in my account (s) accounts for our investors in Hong Kong International airport.
About this gold, which at the time of arrival in Hong Kong could be the symbol of the Bundesbank, a leading refiner, one of the largest in the world, working with the people's Bank of China, certified: "Yes, we got gold, which can supply. We melted it, we defined the sample. Perhaps it was a sign of the Bundesbank at the admission, but now it melted. It 0,9999 (pure) gold.
Here's how it happens in practice. So gold is the fad that Americans believe their left. Gold, which the Germans said that will take him through 7 years — they won't take him because he's gone (the fed). I've got it. It is also the people's Bank of China. The Reserve Bank of India. The Russian Central Bank. The people of Germany (and America) it no longer belongs.
King: So are these processors, they are then admitted that he had taken the gold of the Bundesbank, got the bars and just melted them?Kay: what they did, proves that I was right about that. They get gold (ingots) from all over, including major Central banks, including the Central Bank with the sign on them, and melted them.
Tags: USA , crisis , geopolitics , Germany , gold