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
'Spectre' Is Doomed: Did North Korea Kill James Bond? No, but Political Correctness will
Comment: Below is an interesting article from Forbes on the fate of the Bond franchise. They asks: 'Spectre' Is Doomed: Did North Korea Kill James Bond?
North Korea probably wasn't behind the Sony hack, China also chimed in. Looks more like a False Flag Hack. North Korea is a lot of things, but behind the Sony attack? Probably not. They have ...
NYPD officer slayings: When the Left's False Narratives Have Deadly Consequences
On Saturday afternoon, Black Brooklynite Ismaaiyl Brinsley ambushed two NYPD police officers and shot them both to death while they were sitting in their patrol car. According to early reports, there was “no warning” and “no provocation.” Brinsley simply approached the vehicle and “unloaded” on the two officers sitting inside. Hours before the assassination, he had announced his intent ...
Saudi oil chief: No conspiracy behind oil prices
Nothing to see here or here
Saudi Arabia's oil chief on Sunday dismissed allegations that his kingdom conspired to bring down oil prices in order to harm other countries and told a summit of Arab energy leaders that he was confident the market would stabilize.
The kingdom, which is dependent on oil revenues, is able to weather lower oil prices due to ...
North Korea's internet is having serious problems
North Korea is having serious connectivity issues this morning, North Korea Tech reports. The country has extremely limited web infrastructure to begin with, but reports from Dyn indicate the country's infrastructure has suffered a series of major outages over the past 24 hours. As a result, anyone at a North Korean IP would have found it nearly impossible to connect ...
The Left, The State And (Opportunistically As Always) Big Business
Adapted from Paul Gottfried‘s address to the 2014 H.L. Mencken Club Conference, at a panel focused on “The Left and the State,“ following remarks made by Carl Horowitz of the National Legal and Policy Center and Keith Preston of Attack the System
I’d like to come back to a remark that Carl Horowitz made in Keith Preston described in his remarks, ...
|More News » |