Uh Oh: Germany Wants to SEE its US Gold
2012 11 01
By Sven Böll and Anne Seith | Spiegel
For decades, almost half of Germany’s gold has been stored deep below the Federal Reserve Bank of New York. Now, with the euro crisis swirling, German politicians are asking their central bankers to take stock of the reserves. Some even say that the gold should be shipped home.
Bundesbank President Jens Weidmann wanted to personally convince Peter Gauweiler that the German gold was still where it should be. Early this summer, the head of Germany’s central bank took the obstinate politician from the conservative Christian Social Union (CSU), a party that is a member of the government coalition in Berlin, and a number of his colleagues into the Bundesbank’s inner sanctum: the gold vault.
There, 6,000 gold bars are stacked on industrial-strength shelves in a purpose-built building in Frankfurt. An additional 76,000 bars of bullion are stored in four safe boxes, in sealed containers.
But even this personal inspection wasn’t enough to reassure the visiting member of parliament -- on the contrary: "The Bundesbank monitors its domestic gold in an exemplary fashion," Gauweiler says, "and this makes it all the more incomprehensible that the bank doesn’t look after its reserves abroad."
For quite some time now, Gauweiler has been pestering the government and the Bundesbank with questions concerning where and how the country’s reserves are stored, and how often they are checked. He has submitted requests and commissioned reports on the topic.
Last week, Gauweiler celebrated his greatest triumph to date in his gold campaign, which has been a source of some amusement for many fellow German politicians: A secret report by the Federal Audit Office had been made public -- and it contained stern criticism of the German central bank in Frankfurt. The Bonn-based auditors urged a better inventory system, including quality checks.
This demand, which even the bank’s inspectors saw as nothing more than routine, alarmed the Berlin political establishment. Indeed, the partially blacked-out report read like the prologue to an espionage thriller in which the stunned central bankers could end up standing in front of empty vaults in the US.
For decades, German central bankers have contented themselves with written affirmations from their American colleagues that the gold still remains where it is said to be stored. According to the report, the bar list from New York stems from "1979/1980." The report also noted that the Federal Reserve Bank of New York refuses to allow the gold’s owners to view their own reserves.
Not surprisingly, this prompted strong reactions in Berlin: The relevant Bundesbank board member Carl-Ludwig Thiele was summoned to Berlin to provide an explanation to the parliamentary budget committee. Heinz-Peter Haustein of the business-friendly Free Democratic Party (FDP) was even quoted by Germany’s mass-circulation Bild newspaper as saying that "all the gold has to be shipped back."
The Bundesbank’s otherwise reserved Thiele said that he found at least "part of the debate" to be "rather grotesque." His financial institution currently has more pressing problems. Bundesbank head Weidmann, for example, is desperately fighting the European Central Bank (ECB) decision to buy unlimited quantities of sovereign bonds from crisis-ridden countries as a way of lowering their borrowing costs. In addition, the Bundesbank has already pumped nearly €700 billion ($906 billion) into primarily southern European countries as part of the euro-zone central bank transfers known as Target II.
Germany’s gold reserves are currently worth some €144 billion and are not stored "with dubious business partners," as Thiele stresses, but rather with "highly respected central bankers."
Read the full article at: spiegel.de
"Germany’s gold reserves are currently worth some €144 billion and are not stored "with dubious business partners," as Thiele stresses, but rather with "highly respected central bankers.""
Thanks, Spiegel! We all needed a good laugh. ;)
Latest News from our Front Page
NATO Exercise in Ukraine Coincided with MH-17 Shoot-down
2014 07 24
Rapid Trident was omitted from the flurry of coverage on the shoot-down MH-17.
From the U.S. Army in Europe website:
Rapid Trident supports interoperability among Ukraine, the United States, NATO and Partnership for Peace member nations. The exercise helps prepare participants to operate successfully in a joint, multinational, integrated environment with host-nation support from civil and governmental agencies. ...
Warning of ’imminent’ terror attack in Norway
2014 07 24
Norwegians were warned Thursday of the concrete possibility of a terror attack occurring in that country at the hands of people with connections to an extremist group in Syria.
A press conference was called in Oslo, Norway on Thursday where an announcement was made of a "possible concrete threat" to national security in that country from terrorists related to an extremist ...
Judge says government can access everything in a Gmail account
2014 07 24
All your emails are belong to us.
At least that’s what the latest court order from a judge in New York says. The warrant, granted on June 11, states that the government can access all the content and files contained in a Gmail account.
Yes, this is a significant blow to privacy.
The subject of this specific search relates to a money laundering ...
Scotland Yard Spied on Grieving Families: secret surveillance after police victim shot seven times in head ’by mistake’
2014 07 24
More terror from the ’anti-terror’ brigade.
Undercover police gathered evidence on 18 grieving families
By Rob Evans and Vikram Dodd | The Guardian
Undercover police officers secretly gathered intelligence over two decades on 18 families fighting to get justice from the police, it was revealed on Thursday.
The intelligence covering high-profile campaigns was collected between the mid-1980s and 2005, and affected grieving families ...
Air Algerie AH5017 with 116 onboard goes missing for hours, found crashed in Mali
2014 07 24
An Air Algerie flight carrying 110 passengers and six crew members has reportedly crashed in Mali after having disappeared from radar early on Thursday morning between Burkina Faso and Algeria.
A French Ministry of Defense official told Fox News that the two French fighter jets located the wreckage of the plane, which had crashed in Mali. An airport official additionally confirmed ...
|More News » |