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(Zero Hedge)   The Bundesbank has been watching a little too much Glenn Beck and now wants its precious GOLD   (zerohedge.com) divider line 51
    More: Obvious, Bundesbank, New York Fed, US Fed, gold reserves, Mario Draghi, monetization, entirety, developed country  
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2124 clicks; posted to Business » on 15 Jan 2013 at 12:23 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-01-15 11:36:08 AM
I was wondering why that big Asian guy with the bowler hat was hanging around the NY Fed.
 
2013-01-15 12:41:23 PM
where the majority, or 45%

Uh huh. Sane and rational analysis to follow, I'm sure
 
2013-01-15 12:46:23 PM
I used to skateboard in the park next to the Bundesbank.
 
2013-01-15 01:01:56 PM

Lost Thought 00: where the majority, or 45%

Uh huh. Sane and rational analysis to follow, I'm sure


I would expect no less from someone named Tyler Durden.
 
2013-01-15 01:09:28 PM

Lost Thought 00: where the majority, or 45%

Uh huh. Sane and rational analysis to follow, I'm sure


It gets the point across much better than "plurality" Their largest share, is that 45%, the rest is divided among other banks.
 
2013-01-15 01:42:49 PM
Wooo! See, I told you I was right. I told you that Fix It Again Tony money is no good. It's just a piece of paper.

Now, you'll be sorry. I'll be living rich off of my gold!
 
2013-01-15 01:57:36 PM
It did take some time for Germany to get over the embarrassment from the Grüber family's attempt to repatriate German gold from the NY Fed back in the mid-90s.
 
2013-01-15 02:00:48 PM

gingerjet: Lost Thought 00: where the majority, or 45%

Uh huh. Sane and rational analysis to follow, I'm sure

I would expect no less from someone named Tyler Durden.


No wonder he had so many problems with his credit cards.
 
2013-01-15 02:02:33 PM

Girion47: Lost Thought 00: where the majority, or 45%

Uh huh. Sane and rational analysis to follow, I'm sure

It gets the point across much better than "plurality" Their largest share, is that 45%, the rest is divided among other banks.


Still, if that's the reason, that seems to indicate that he doesn't think his typical reader understands what "plurality" means.
 
2013-01-15 02:02:52 PM
Something, something, possession = 9/10ths, something.

I find your lack of faith disturbing.
 
2013-01-15 02:08:59 PM
www.livedigitally.com

So now he merged himself with a bank?
 
2013-01-15 02:12:53 PM
I hope John McClane is hanging around.
 
2013-01-15 02:53:44 PM

strangeguitar: I hope John McClane is hanging around.


I heard he is getting too old for this stuff
 
2013-01-15 03:07:00 PM
oh great, the ponyhedge links are starting to migrate over here.
 
2013-01-15 03:25:51 PM
Huzzah ZH

When will the other shoe drop? As in China announcing its new accumulation numbers for Au in 2012.

¡WINNING!
 
2013-01-15 03:31:57 PM
How are they transporting ~4,000 tons of Gold back to Germany? Ragnar Danneskjöld licks his lips.
 
2013-01-15 03:41:12 PM

dynomutt: Huzzah ZH

When will the other shoe drop? As in China announcing its new accumulation numbers for Au in 2012.

¡WINNING!


This! If the Chinese government is doing it, then you know it's a good idea. I've got all my money in Mongolian condos. Did you know that Mongolian condo prices are up 400% for the year ending 2012? If these trends continue... AYYYYYYYYYYY!
 
2013-01-15 04:09:19 PM
I saw this posted on the Ron Paul forums on this topic and thought it would fit right in here;

'Hahahaha! The game of musical chairs is beginning. I wonder what the butt-to-chair ratio will turn out to be? And when will the first public failure to produce the goods occur?'
 
2013-01-15 04:19:24 PM
Sorry Germany. We totally thought it was there. It was when we last looked in 1970.
But we're good for it. We'll print you up a few skid-loads of greenbacks to make up for your lost gold.
 
2013-01-15 05:11:38 PM
Does this action have any teeth in it?
 
2013-01-15 05:13:33 PM

Rapmaster2000: dynomutt: Huzzah ZH

When will the other shoe drop? As in China announcing its new accumulation numbers for Au in 2012.

¡WINNING!

This! If the Chinese government is doing it, then you know it's a good idea. I've got all my money in Mongolian condos. Did you know that Mongolian condo prices are up 400% for the year ending 2012? If these trends continue... AYYYYYYYYYYY!


Yeah, you go ahead and keep posting that kind of tripe...

China plans in quarter-centuries, not quarter-years like round-eye.

Ordos is part of a plan, just you watch.

We'll see who's laughing in 2023.
 
2013-01-15 05:21:10 PM

dynomutt: Rapmaster2000: dynomutt: Huzzah ZH

When will the other shoe drop? As in China announcing its new accumulation numbers for Au in 2012.

¡WINNING!

This! If the Chinese government is doing it, then you know it's a good idea. I've got all my money in Mongolian condos. Did you know that Mongolian condo prices are up 400% for the year ending 2012? If these trends continue... AYYYYYYYYYYY!

Yeah, you go ahead and keep posting that kind of tripe...

China plans in quarter-centuries, not quarter-years like round-eye.

Ordos is part of a plan, just you watch.

We'll see who's laughing in 2023.


Kind of hard to laugh when you have lung cancer
 
2013-01-15 05:55:27 PM

Girion47: Kind of hard to laugh when you have lung cancer


How else are they supposed to handle the demographic crunch?
 
2013-01-15 06:15:08 PM

fat boy: Does this action have any teeth in it?


FTA : the long suffering German gold, all official 3,396 tons of it, is about to be moved.

Only about seven million pounds of them.
 
2013-01-15 06:27:00 PM
Return of the Deutschmark?
 
2013-01-15 06:27:40 PM
It's no wonder the Germans are asking for their gold back from the Fed. The Germans have tried to audit the gold in the past but got the runaround from the Feds. This is what happened the last couple times they tried to audit their holdings :

"Tourists are allowed to venture below street level to see the vault. After descending in an elevator, they stand in front of an enormous steel cylinder that pivots like a door in a 140-ton steel-and-concrete frame. But not even the owners are allowed to view their own gold. According to the Federal Audit Office report, the Fed explained that "in the interest of security and of the control process" no "viewings" are possible.

Finally, in 2007, "following numerous enquiries," Bundesbank staff members were allowed to see the facility, but they reportedly only made it to the anteroom of the German reserves.

In fact, auditors from the Bundesbank made a second visit in May 2011. This time one of the nine compartments was also opened, in which the German gold bars are densely stacked. A few were pulled out and weighed. But this part of the report has been blacked out -- out of consideration for the Federal Reserve Bank of New York."
Link - Published Oct. 30, 2012

There are some really sketchy things going on at the NY Fed gold vault. I'm surprised that Germany didn't start a protest over this issue back in 2007.
 
2013-01-15 06:38:31 PM

dynomutt: Rapmaster2000: dynomutt: Huzzah ZH

When will the other shoe drop? As in China announcing its new accumulation numbers for Au in 2012.

¡WINNING!

This! If the Chinese government is doing it, then you know it's a good idea. I've got all my money in Mongolian condos. Did you know that Mongolian condo prices are up 400% for the year ending 2012? If these trends continue... AYYYYYYYYYYY!

Yeah, you go ahead and keep posting that kind of tripe...

China plans in quarter-centuries, not quarter-years like round-eye.

Ordos is part of a plan, just you watch.

We'll see who's laughing in 2023.


I can promise you that I'm not going to be laughing about covering your retirement because you blew it all chasing EZ money and hype.
 
2013-01-15 07:18:46 PM
Just don't mention the War.
 
2013-01-15 07:24:04 PM

Atomic Spunk: In fact, auditors from the Bundesbank made a second visit in May 2011. This time one of the nine compartments was also opened, in which the German gold bars are densely stacked. A few were pulled out and weighed. But this part of the report has been blacked out -- out of consideration for the Federal Reserve Bank of New York." Link - Published Oct. 30, 2012


www.destructoid.com

Looks fine to me.
 
2013-01-15 08:49:24 PM
viewsfromthesofa.files.wordpress.com

On the case.
 
2013-01-15 09:15:41 PM

Rapmaster2000: dynomutt: Rapmaster2000: dynomutt: Huzzah ZH

When will the other shoe drop? As in China announcing its new accumulation numbers for Au in 2012.

¡WINNING!

This! If the Chinese government is doing it, then you know it's a good idea. I've got all my money in Mongolian condos. Did you know that Mongolian condo prices are up 400% for the year ending 2012? If these trends continue... AYYYYYYYYYYY!

Yeah, you go ahead and keep posting that kind of tripe...

China plans in quarter-centuries, not quarter-years like round-eye.

Ordos is part of a plan, just you watch.

We'll see who's laughing in 2023.

I can promise you that I'm not going to be laughing about covering your retirement because you blew it all chasing EZ money and hype.


What retirement? You think the US economy will be around by then!? HAHAHAHAHAAHAAH

Good luck with that, fool.
 
2013-01-15 09:51:02 PM

dynomutt:

What retirement? You think the US economy will be around by then!? HAHAHAHAHAAHAAH

Good luck with that, fool.


Oh my. Lifetip: the apocalypse never comes. Old age does.
 
2013-01-15 10:03:48 PM
Oh please let it be stolen along the way. It would make a great movie, and be hilarious. Especially if it happened AFTER the Germans had possession.
 
2013-01-15 10:53:44 PM

HotIgneous Intruder: I used to skateboard in the park next to the Bundesbank.


That's all I need to hear. I blame HotIgneous Intruder.
 
2013-01-15 11:05:58 PM
We have top men working on it now. Top men.

i01.i.aliimg.com
 
2013-01-15 11:26:33 PM
The funny thing is that gold has no more intrinsic worth than paper. If anything, paper might have more 'cause at least one can light a fire with it.
 
2013-01-16 12:14:51 AM

gingerjet: Lost Thought 00: where the majority, or 45%

Uh huh. Sane and rational analysis to follow, I'm sure

I would expect no less from someone named Tyler Durden.


"The majority that is held in a single place" is the clear meaning. Well, clear to everyone but you two, apparently.
 
2013-01-16 12:17:17 AM

GoldDude: Sorry Germany. We totally thought it was there. It was when we last looked in 1970.
But we're good for it. We'll print you up a few skid-loads of greenbacks to make up for your lost gold.


We have this really valuable and cool platinum coin we just minted, and the Fed doesn't seem to want it, so here you go.
 
2013-01-16 12:18:59 AM

Atomic Spunk: It's no wonder the Germans are asking for their gold back from the Fed. The Germans have tried to audit the gold in the past but got the runaround from the Feds. This is what happened the last couple times they tried to audit their holdings :

"Tourists are allowed to venture below street level to see the vault. After descending in an elevator, they stand in front of an enormous steel cylinder that pivots like a door in a 140-ton steel-and-concrete frame. But not even the owners are allowed to view their own gold. According to the Federal Audit Office report, the Fed explained that "in the interest of security and of the control process" no "viewings" are possible.

Finally, in 2007, "following numerous enquiries," Bundesbank staff members were allowed to see the facility, but they reportedly only made it to the anteroom of the German reserves.

In fact, auditors from the Bundesbank made a second visit in May 2011. This time one of the nine compartments was also opened, in which the German gold bars are densely stacked. A few were pulled out and weighed. But this part of the report has been blacked out -- out of consideration for the Federal Reserve Bank of New York." Link - Published Oct. 30, 2012

There are some really sketchy things going on at the NY Fed gold vault. I'm surprised that Germany didn't start a protest over this issue back in 2007.


Ignoring the fact that there isn't any real rational to hold gold reserves anymore - there is simply no precedent for one country to inspect their assets being held by another country.  Especially since the gold has been sitting there for so long.  And this is not being driven by the suspicion of "really sketchy things" at the Fed - this is all being driven by a bunch of paranoid politicians who see a chance to drum up emotion over a non-issue.  Hell - one German politician went to NY and demanded to see the gold.  I don't blame the Fed for telling them to go pound sand.  It should be enough for Germany to ask to verification and for the Federal Reserve to give them the bookkeeping record.
 
2013-01-16 12:56:06 AM
I knew a girl whose dad was involved in shady many a shady dealings.  One story she told was that a lot of rich people wanted to own cows, so he would sell them a cow.  Sometimes they would show up and want to see their cow, so he took them out to the pasture and showed them a cow.  Was it really their cow?  Did he sell that cow to multiple people?  Is the federal reserve no better than gangsters?

/true story, bro
 
2013-01-16 12:59:42 AM

gingerjet:
Ignoring the fact that there isn't any real rational to hold gold reserves anymore - there is simply no precedent for one country to inspect their assets being held by another country.  Especially since the gold has been sitting there for so long.  And this is not being driven by the suspicion of "really sketchy things" at the Fed - this is all being driven by a bunch of paranoid politicians who see a chance to drum up emotion over a non-issue.  Hell - one German politician went to NY and demanded to see the gold.  I don't blame the Fed for telling them to go pound sand.


If there were no rationale to holding gold reserves, countries would have abandoned theirs a long time ago. Central banks are now net buyers of gold. China, Russia, Mexico, South Korea, Kazakhstan and Turkey have bought tremendous amounts of gold in 2011 and 2012, and no major countries have sold any of their gold reserves in the past few years. Even as bad as the situation in Europe has become, none of those countries are selling gold. So the idea that there isn't any real rationale for holding gold reserves is some ridiculous notion you have going on in your head. It's certainly not a belief that most countries actually subscribe to.

gingerjet:
It should be enough for Germany to ask to verification and for the Federal Reserve to give them the bookkeeping record.


I guess Germany isn't content being a sucker like you are. I have no doubt that the U.S. will give Germany the amount of gold that they are supposed to be holding for them, but only a fool blindly trusts without verification from time to time. You should get the stars and stripes away from your face - "Look at the numbers on the spreadsheet! See, you still have your gold!" Only an idiot would buy a load of crap like that.
 
2013-01-16 02:38:01 AM
If there were no rationale to holding gold reserves, countries would have abandoned theirs a long time ago. Central banks are now net buyers of gold. China, Russia, Mexico, South Korea, Kazakhstan and Turkey have bought tremendous amounts of gold in 2011 and 2012, and no major countries have sold any of their gold reserves in the past few years. Even as bad as the situation in Europe has become, none of those countries are selling gold. So the idea that there isn't any real rationale for holding gold reserves is some ridiculous notion you have going on in your head. It's certainly not a belief that most countries actually subscribe to.

That's assuming that countries are acting rationally, which they are not. Fundamentally, the only reason to hold gold is tradition. As I said above, it has no intrinsic value. The question is whether that tradition born thousands of years ago makes sense any more in a modern world. There is a rational argument that it doesn't. If governments where truly afraid of the world going to hell they should be stockpiling food, water, cotton, animals. All one is doing by hording gold is exchanging a paper based medium of exchange/store of value for a gold based one under the romantic notion that people will prefer one to the other. But if the world does go down the toilet gold will be as worthless as paper.
 
2013-01-16 02:57:00 AM
woriddan
Fundamentally, the only reason to hold gold is tradition.

This is a ingenuous oversimplification.
Gold has backed currencies because it is relatively available but also relatively rare.
Silver and Copper have been used as well in the past.

The problem at hand is that pure-Fiat currency has no bottom. The Federal Reserve is like a child on a non-earned allowance. It's spend spend spend and then oh shiat they overpay for their house and are totally bankrupt - as their first mistake. For the Fed, it's the country- QE3 is unprecedented.

/The real issue is that ATMs have to dispense 50's soon.
//When are we getting our 1000 bill back?
 
2013-01-16 03:28:09 AM

worlddan: The funny thing is that gold has no more intrinsic worth than paper. If anything, paper might have more 'cause at least one can light a fire with it.


I'll trade you ten pounds of paper for ten pounds of gold. You'll come out ahead.
 
2013-01-16 03:38:00 AM

worlddan: . All one is doing by hording gold is exchanging a paper based medium of exchange/store of value for a gold based one under the romantic notion that people will prefer one to the other. But if the world does go down the toilet gold will be as worthless as paper.


I don't believe that a doomsday scenario is all that likely in the US. But gold is still extremely important to a country's economic status. It's a tradition. It's also jewelry, money, a store of value, an investment - it's a lot of things.

For most countries, gold reserves represent financial stability and economic power, but countries in fiscal trouble (Italy and Spain come to mind) are not willing to sell their gold, even at near record high prices. Why? Because the status that comes from having gold reserves is more important to them than paying down their rising debts. The gold tradition has remained strong for thousands of years and isn't about to change anytime soon.
 
2013-01-16 11:23:08 AM

DrPainMD: worlddan: The funny thing is that gold has no more intrinsic worth than paper. If anything, paper might have more 'cause at least one can light a fire with it.

I'll trade you ten pounds of paper for ten pounds of gold. You'll come out ahead.


Learn the meaning of "intrinsic".
 
2013-01-16 11:56:24 AM
Gold is valuable because it fulfills the following requirements:

Easily divisible
Easily transportable
Limited quantity (can't make more)
Relatively few industrial uses

Very few materials fulfill those qualities, and if they do, I imagine they are very valuable.
 
2013-01-16 01:20:21 PM

MattStafford: Gold is valuable because it fulfills the following requirements:

Easily divisible
Easily transportable
Limited quantity (can't make more)
Relatively few industrial uses

Very few materials fulfill those qualities, and if they do, I imagine they are very valuable.


Don't forget "non-toxic."

worlddan: All one is doing by hording gold is exchanging a paper based medium of exchange/store of value for a gold based one under the romantic notion that people will prefer one to the other. But if the world does go down the toilet gold will be as worthless as paper.


That's actually fairly unlikely. There's a reason that most cultures with any appreciable access to gold settled on it as a medium of exchange. This will likely happen again, probably rather quickly: it has become too ingrained in the human psyche.

Besides, gold actually does serve a useful function: getting trade in a common medium started again. This allows people not only to band together and to specialize, this last being key to getting civilization rolling again.
 
2013-01-16 02:45:28 PM
It's gonna be a hoot when asteroid miners start pouring tons of gold a year into the world economy.
 
2013-01-16 09:02:36 PM

gingerjet: Especially since the gold has been sitting there for so long.  And this is not being driven by the suspicion of "really sketchy things" at the Fed - this is all being driven by a bunch of paranoid politicians who see a chance to drum up emotion over a non-issue.  Hell - one German politician went to NY and demanded to see the gold.  I don't blame the Fed for telling them to go pound sand.  It should be enough for Germany to ...


The problem is: In the last years more and more gold bars appeared with tungsten rods inside, even in the gold reserves of other countries. And considering that the gold bars currently owned by the Bundesbank in New York don't have to be the same the Bundesbank put there due to transactions happening since then it is really not unreasonable to check whether the inventory is still 100 percent gold and not half tungsten.
And another thing: Imagine the opposite. Imagine American gold reserves in Germany, and the Germans wouldn't allow the Americans to check their own property. You could power a continent with the resulting rage.
 
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