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Where the *Bleep* Is Germany’s Gold?

Germany's goldYou may have heard something about this story, but I think it’s important to take a few minutes to restate the facts clearly. In the modern news environment, stories come and go so fast – and in so many parts – that it’s very easy to get lost along the way.

So, here’s what we know so far:

  • In 2012, the Bundesbank (the central bank of Germany) asked to visit the vault of the Federal Reserve in New York, to view the 1,536 tons of gold they have stored there.
  • The Federal Reserve told them no. They were not allowed to see their gold.
  • In response, Germany said that they wanted 300 tons of their gold back.
  • The Federal Reserve said that they’d need seven years to get the gold back to Germany. (Something that should take them seven weeks, tops.)
  • One year later, the Fed has returned only 5 tons of gold to Germany. At this rate, it will take 60 years for the Germans to get less than one fifth of their gold back.

Though I don’t know precisely what, it is very clear that something strange is going on here… something that the prestigious central bankers want to keep away from the light of day.

Shipping 300 tons of metal is hardly a new and difficult technical challenge. Companies involved in metal trading do this all the time. Sure, gold requires extra security, but security is also something that lots of people know how to provide.

Give me half a percent as a premium, and I’ll have it arranged by next week!

The German Responses

The initial German response was the one mentioned above: Give us back our gold. But that happened over a year ago, after they weren’t allowed to see their gold. There have been further responses, following the very lame delivery of five tons.

These responses have come in just the past month or so:

The president of Germany’s top financial regulations group said that manipulation of gold and silver “is worse than the Libor-rigging scandal.” (The Libor scandal was and is a big deal, and lots of lawsuits are underway over it.) That’s a big accusation.

Then, Deutsche Bank, the biggest German bank, dropped out of the London gold fixing pool; the group of bankers that set the official price of gold. This is also related to the investigations by European regulators into the suspected manipulation of precious metals prices by banks. Again, this is a very significant event.

Germany does not seem happy about what the Fed is doing to them. These responses may seem timid, compared to what you or I might do if someone refused to give us back our gold, but they very clearly show that the German banks are objecting. (What’s going on behind the scenes remains unknown to us.)

In addition to this, the Financial Times ran an article advising investors to demand physical delivery of their gold. Bloomberg published an article on gold price manipulation. Whether they were pushed to do this by the Germans remains an open question.

What’s Really Going On?

So, given what we know, the obvious question becomes, “What’s really going on?”

The first answer is that we simply do not know, but even that deserves a short comment:

We don’t know because central banks are above scrutiny. They operate in secret, insulated by governments.

In any honest business, we could learn something about what’s going on, but central banking is different. Its operators not only control the world’s money, but they do it secretly.

So, we can only guess as to what’s happening.

Most likely, however, is that all of Germany’s gold has been lent out and/or used as loan collateral multiple times and that the Fed is having a very hard time unwinding all those loans. If they just give the gold back, the collateral for hundreds (maybe thousands) of international loans goes away.

And when I say “lent out multiple times,” I am not speaking loosely. There is a financial trick called rehypothecation that allows bankers to use the same stack of gold as the collateral for simultaneous loans… over and over and over.

So, in order to pull Germany’s gold out of the lending game (and central banks do loan out gold), lots and lots of loans would have to be rehypothecated to other piles of gold, and that requires a lot of office work. Each bar of Germany’s gold could be involved in a dozen loans, each of which must be re-arranged.

This would account for the slowness of the Fed returning the gold back to where it belongs.

Of course, there are other possibilities. Maybe the Fed is just trying to punish Germany for some reason (they’ve messed with them in the past), or that the gold is simply no longer there – that the Fed or its friends sold it.

The Bottom Line

It would be wonderful to figure out what will happen next, but we’d have to base that on what’s really going on now, and we don’t know even that. As mentioned, central banks never have to tell.

The one thing we can be sure of is that the Federal Reserve and the Bundesbank are at odds. What will come from that is unknown, but this is a very significant problem between giants, and it is already producing consequences.

Maybe this problem will go away. But if it doesn’t, it could become very, very significant.

And how that will affect each of us – well, that’s a very good question.

Paul Rosenberg
FreemansPerspective.com

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  • http://www.jesus-on-taxes.com/ Ned Netterville

    When was the last time the Federal Reserve’s gold holdings were subjected to a physical audit by a certified Public (not government) Accountant? Ever? Never?

    • Joch C.

      Never ever…

    • DitchTheDictator

      I think Ike did it… and was the last… he also did Operation Wetback, deporting a huge number of illegal parasites… a great man!!

      • mary

        yeah, great man who had the balls to kill little brown people all over the world. face it, he was a stinkin’ tyrant like the rest of them. And coward, too. Instead of standing up the the MIC, he just told us about it after the fact. And btw, freedom to travel and relocate is a basic human right. That is how people have escaped famine, war and tyranny since the dawn of time. Wonder where your ancestors were from. The chances that they were from where you live now are a bzillion to one. Why was it ok for them move and not for those illegal “parasites?” Oh, I know, you’re not little and brown…

        • DitchTheDictator

          “freedom to travel and relocate is a basic human right.” Are you really that stupid? Countries that allow unfettered immigration are being overrun by muslims… who breed like rats… places like Sweden and Belgium are going to lose their countries if they don’t stop the wave of Islamo-swine… and how about a simple request of wannabe immigrants… obey our LAWS?? Same request for the Dick-tater Obunga.

        • Joseph McGrath

          Why was it OK? A person had to fend for himself or rely on family back then. One couldn’t just drop in and become eligible for the umbrella of goodies that are there for every lazy or dumb fool to demand as a right. People like you make me sick!

          • Pepé

            Illegals are not eligible for anyting; even my ant, she got political asyl and green card in USA, around 1984, had to sign, that she would not get even any welfare..

  • RICHN

    Why would Germany place 1,536 tons of Gold with the Federal Reserve?

    • Joch C.

      Germany did not necessarily ship all of that physical gold there. Much of it is a claim resultant of business. The physical gold may or not even exist. Its hard to tell anymore. Nobody really knows how much gold there is and where it is.

      • alnga

        Fort Knox has been drained for years now. The gold does not always move it just gets relabeled.

    • Soxtory

      The official story is, of course, that at the height of the cold war it was for safekeeping in case they were ever over run by the Soviet Union.

      I think most of the gold is long gone.

      • Rusty Brown in Canada

        Yes, safekeeping. Which is why Piglet used “Ivan” to represent the USSR, since they are notorious for invading their neighbours’ “homes” and “Sam” to represent the USA. Get it?

        Very clever, Piglet.

    • Frederick Bastiat

      It goes back to the end of the gold-exchange standard in 1971. A lot of countries held gold in the U.S. After the dollar could no longer be converted into gold in 1971 some countries just left their gold in the U.S. because of the expense of hauling it back. It is still listed as an asset to that government, but I think it was very foolish to trust the U.S. government after it basically defaulted on August 15, 1971.

    • DitchTheDictator

      It was way back when the cold war was on… moved the gold to the USA to prevent the Soviet hordes from getting it if they overran Germany… a real possibility in those days…

  • Joch C.

    I think the Fed is trying to prevent a gold run which would lead to the demise of FNR notes and cause the new world order to come crashing down. I doubt paperwork has much to do with it, because massive paperwork would be a great excuse to create many new meaningless jobs, something they like.

    • DitchTheDictator

      True… in collusion with the BIS and the IMF… all mega-corrupt NWO swine. But China and Russia are not playing… and India’s citizens either… so (hopefully) some day soon there will be massive defaults/failures to deliver physical and the poop will hit the propeller.

  • Keith

    Per Reuters:
    “Deutsche Bank AG
    DBKGN.DE has fired three New York-based currency traders, in the latest
    sign that a probe over alleged manipulation of foreign exchange markets
    is gathering steam, according to a source familiar with the situation.”

    http://www.reuters.com/article/2014/02/04/us-deutschebank-forex-idUSBREA131SP20140204

    And also according to the Daily Sheeple, there have been top bankers found dead, committing suicide, including JPM and Deutshe Bank. Seems odd, to say the least.

    http://www.thedailysheeple.com/four-prominent-bankers-found-dead-within-six-days-all-ruled-suicides_022014

  • Fellow Traveler

    Gold is such a barbarous relic, why don’t we just pay them the value of the gold in dollar form? It’s legal tender for all debts, public and private.

    • Tecumseh1768

      Hahahahahaha very good. You really had me going there for a minute.

    • wawapus

      This is sarcasm, right?

    • Frederick Bastiat

      Woo-hoo that was a good one! Nobody with two brain cells to rub together wants to hold dollars that are being debased when the alternative is holding a gold, which is real money.

      We are at the end stages of the world wide experiment with debt-based fiat paper currency that began on August 15, 1971. The sins of the disco era are coming back to haunt us, and I’m not talking about the Bee Gees!

    • tham

      Exactly. Treat the Germans like the Comex would.

  • Fred Smith

    I read recently that every ounce of gold in the COMEX has already been sold, loaned, or collateralized over 90 times! When the Dollar ultimately crashes, the value of gold (among other hard assets) will skyrocket.

  • derfelcadarn

    It is clear since its inception that the Federal Reserve is a criminal organization. Their dealings have always been underhanded, they have swindled the worlds People out of their monies through institutional inflation. Germany’s gold does not exist as a hard asset at the Federal Reserve to give back. The same scenario is very likely the case in other gold “depositories”. When this is finally confirmed heads will roll, if there is any justice it will be literal.

  • Piglet

    Let’s say I lived in a bad neighborhood where my money was in danger of being stolen by a home invasion of Ivan’s gang, so for safekeeping I gave it to my friend Sam. Many years later my neighborhood is safe, so I tell Sam things are okay now and I’d like to have my money back. Sam says no. Can I even SEE my money? Sam still says no. Eventually Sam gives me a few token dollars and I receive vague, lame promises of someday getting the rest back. Maybe. I suspect he hopes I’ll just forget about it and I’ll be distracted by other issues demanding my attention and won’t bother him anymore. In fact, the dollars he gave back may very well have been taken from someone else for whom he’s holding money and may not be the same dollars I gave to him earlier. What should I do?

    On paper my net worth looks pretty good because I can still count that money Sam holds for me, but if I face reality – that Sam spent mine quite some time ago and is deliberately lying to me and keeping me in the dark – then my net worth doesn’t look so good after all, and that will cause all sorts of problems for me at home and abroad. So, is it better to go by this saying? “Don’t ask the question if you can’t stand the answer.”

    Should I go back to pretending that Sam is actually holding my money when it’s obvious that it’s gone and I’ll never get it back? Will it be better for appearances if I go along with Sam’s ruse, to “go along to get along”?

    When this situation is described on a personal level, things seem rather obvious. When it moves up to the Fed level, it seems more complicated. But is it really?

    I’m reminded of what Otter said to Flounder in the 1978 film Animal House: “You f***ed up… You trusted us!” Germany, you f***ed up.

    • Joch C.

      The problems is there is simple. There is supposedly something like 500 trillions dollars worth of wealth in the world. My numbers may be off but the point will be the same.
      Now there is like 200 tons of gold.
      So all of the sudden that gold ring on your finger is worth 50k because an ounce of gold just sky rocketed when given its true value in dollars.
      The giant mess is simple. The bankers and politicians have created a gold-less monetary system yet regular people are still clingling tightly to gold.
      Now we have 2 minds and it has bascically caused a humanity to be somewhat schizoid.

  • S J

    There is a well known story of how in 1945, General Patton and Ike found a huge cave full of Nazis gold in Germany……Patton said, ” lets keep it Ike and use it to fund the war “……Ike allegedly said ” no “…..However, no one actually knows what happened to the gold they found. ….So could this be the 1536 tonnes they are talking about here?

  • triliberty

    Wheres the gold how many contracts are out on this gold how many times have they claimed this gold they create out of thin air like paper exists and with this they bring prices down and keep them down with their LIES!

  • paulthecabdriver

    Did anyone check under the couch?

  • Kay Michelson

    y’all know the Fed Res ain’t federal and it doesn’t reserve anything. IT IS PRIVATELY OWNED. I’m sure the Budnesbank is privately owned. all the central banks are linked and are privately owned and they have no business setting the price of anything

    • Joch C.

      Yet the board of directors is confirmed by THE AMERICAN GOVERNMENT. This very government has enough fire power to destroy darn near everything yet they leave this supposedly private Fed alone. So somehow, the Fed Reserve and Fed government MUST be in bed together. It is obvious taxes collected come nowhere close to paying for the enormous governments in America. Heck, tax collected basically pays interest only. So now you see, the Fed reserve is the great enabler of all things socialism. Gov and Fed are kissing cousins or maybe twins or maybe 1 in the same. Tax funded governments are tiny, mean, lean, essentials only. Fiat funded government are limitless. Look at your local gov and special districts, county, state and Fed. Add it all up x 50 states. American guberment is beyond gigantic and none of it would be possible without Fed Reserve.

      • Rusty Brown in Canada

        “…kissing cousins or maybe twins…”. Yes, very good. But thank you for not using “joined at the hip” which is overtly salacious and means something quite other than what most people think. See the last page of “Breakfast at Tiffany’s” for the original source:

        “…Am joined at the hip with duhvine $enor. Love? Think soo’ Anyhoo am looking for somewhere to live ($enor has wife, 7 brats)…”

        • Joch C.

          Maybe similar to how alligators allow birds to ride on their back and other symbiotic relationships?

      • Krogoth Alexander

        In bed as in the FED has tied America to the bed and has nine tails in it’s hand?

  • tomevs

    This excerpt is from a ‘Summary of Rothschild Power’, by Ben Steigmann,
    a scholar involved with such studies.

    Each of the following paragraphs are as they occur in the article.
    Each is a point in itself and builds a more complete picture of what has led to
    current conditions. Accepting documented history as worth considering even though we have been denied these particulars of our ‘civilized’ development, is likely
    as uncomfortable as it has been intended to be.
    The last paragraph offered here provides insight into the ongoing fraud with all its corruption .

    From the article:

    In discussing the
    Denmark incident, Morton noted that “someone once said the wealth of Rothschild
    consists of the bankruptcy of nations.”: http://tinyurl.com/6npv4jx

    The Rothschilds had established a
    network all over Europe, with Nathan Rothschild financing the British and James
    Rothschild financing the French. (See “The Rothschilds” by Morton, p. 43:
    http://tinyurl.com/77krjuu). So the same family was financing both sides of
    this war!

    The Rothschild apologist Niall Ferguson
    denied that the Rothschilds scored another financial coup d’etat when, with
    advance intelligence, they started dumping securities as the battle of Waterloo
    was ending, creating the expectation that they knew Napoleon had won, when, in
    reality, they knew that Napoleon had lost, and they thus monopolized Britain’s
    market in consols, which formed the basis of British debt. When we look into
    the origins of Ferguson’s argument, we find that it is spurious:
    http://winstonsmithministryoftruth.blogspot.com/2013/02/rabbi-gordon-on-intimacy-with-3-year.html?showComment=1360471267900&m=1#c2101218525128065078

    And in reality, the historian Ignatius
    Balla had established that this had indeed occurred in a book that was almost
    suppressed (http://tinyurl.com/6r39g2d), but was proven accurate in a court
    case (http://tinyurl.com/7asrrva). It was also discussed by Rothschild biographer
    Frederic Morton on p. 49 of his biography of the family
    (http://tinyurl.com/6p3r3ft). The financier Henry Clews noted in “The Wall
    Street Point of View”, Vol. III, p. 253, “The Consolidated Act in 1757 … by
    which the debts of the nation, including annuities, were consolidated or
    brought together into one scheme, and average rate of interest being struck at
    three per cent. [T]hese “consols”, … are kept in account in the Bank of England
    and virtually form the great bulwark of its deposits.” (http://tinyurl.com/789gdk3)

    As monopolizers of British Bank of England consols, the Rothschilds won control
    of the Bank of England, henceforth they ruled England, and collected interest
    on the debts they were owed, which of course exceeded the amount of money in
    the society in the first place, since money was/is created as a debt to the
    nation via book entry!

    Opinion:
    When these factual events in our history are overlooked, it only helps keep the
    mask on these forces we all contend with now.

    • Joch C.

      Has to make you wonder how man of todays wars/battles are nothing more than a manipulated investment?

    • tomevs

      The research of Eustace Mullins is based mostly on information gathered in the Congressional Record. By examining testimony under oath, from congressional hearings on events including espionage and war-planning, he provides a very detailed account of how these things that no citizen wants are put into motion. It is highly disturbing considering we grow up thinking our ‘free’ country is something we know to be true. IMHO, we are being ‘gamed’, and so were our elders.

  • Zoum

    If I understand rehypothecation correctly the physical gold would not change hands and should still be available to at least be viewed by Bundesbank as they requested in 2012.

  • William Ripskull

    One thing you failed to mention was the farce around the small portion of gold they finally received at the end of last year. I’m only repeating what I read in multiple places, but it sounds like the gold they got back weren’t the original bars they stored, and there were several crazy stories about why, including that they melted down and recast the bars to conform to some British standard, all of which were retreated from when people in-the-know started asking obvious questions. There were even rumors around the purity of the bars, though with the all the secrecy, who knows. But there is definitely something “not right” going on.

  • Steve

    The NSA got a earful of the conversations between Brunswick and the Federal reserve. Fort Knox HAS NO GOLD! Waiting for that download of juicy gossip “Hot Wire Laughs for 2013 Edition”. The 5 tons went to Germany is not the same gold. Germany gold bars were serialized. All was re-melted and now in Hong Kong. I’m surprised that Germany’s Natzies turned to pretty little Panzies, are so squishy soft on this. View the 1,536 tons of gold they have stored there? The Federal Reserve told them no. They were not allowed to see their serialized gold in trust of the USA. The Federal Reserve (manly mafia thug) is a private company in bed with the Federal Government (obedient little gurl). There have been top bankers found dead, committing suicide. Wait; they did not shoot themselves or have fatal car accidents, they were pushed from tall buildings for getting ready to reveal some secret. Hard to be Superman on 8 figure salaries. Mom it’s a bird, a plane …it’s it’s a dead banker. So how in America should we view the Government or your beloved Bankers to run your life. Long live Omamacare! Give me a down vote on this if you just woke up and reply with plenty of explitives.

    • Joch C.

      IRS collects enough tax revenue from all sources to pay only interest on debt. This come nowhere close to funding all the different guberments in America. So obviously the governments are dependent upon the Fed Fiat. Who controls the military? Military is boss, no? Maybe government is bossing the FedReserve? Maybe in the year 1913, the progressives in congress knew they needed a new funny money system to fund their giant dream of total statism? Maybe people who claim Fed Reserve is private and or a bully are in denial as to the true nature of their beloved guberment?

  • Slvrizgold

    Where’s the gold? It’s now in private safes of central bankers and their colleagues. You didn’t think Alan Greenspan, Gordon Brown, and their ilk sold all that public gold years ago just for kicks?! No, it was to complete the theft. Transferring public wealth into private hands.

  • DitchTheDictator

    With the refusal to allow an audit of the physical gold (like they refused when asked by Congress) the Fed (and their corrupt servants in congress) spit in the Germans faces… so Germany requested their gold back… and again were refused. Coupled with the massive NSA spying and the “Fugg the EU” comments… i think the US is running really short on meaningful allies these days… the combo of Bush and Obongo may prove fatal to our great country… especially with Russia and China getting into bed together…

    • Krogoth Alexander

      IMO this has nothing to do with America.. it’s all the privately owned banks playing the game they have played for many many years.

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