Well, well, well… the Germans don’t want their gold back any longer. They kinda sorta did in Dec. 2012 and expected something like 42 tons per year for 7 years to get 300 of their 1,500 tons from the FRBNY. That didn’t work out so well since they only received 5 tons last year …and it was reportedly not even the same gold that was originally deposited because the bars that were delivered were “recast”…but at least it was gold. We were told that they were recast because of the “impurities” that needed to be removed. Really? Is gold really like bread that molds over time and grows “impure?” The Bloomberg story of “How the Germans don’t want their gold back” (my quote) is here.
OK, I’m sorry but this stinks to high heaven. No I did not graduate from an Ivy League school or a white shoe University like Oxford so I was never let in on the wink, wink, pinky swear secret handshake of the elites. Maybe it is considered “gentlemanly” not to turn in or squeal on one of your own even if it involves theft from your own countrymen. Think this one through for a moment, Germany asked for their gold back. Not all of it mind you, only 10% of their total and just 20% of what the Federal Reserve was supposedly holding…and only received a whopping 5 tons which equates to less than 2%.
Let’s put this in street terms, 40 years ago you gave your friend (a local businessman with a good reputation) Louie $1,500 to keep safe because you didn’t trust the banks. You never really needed the money but every once in a while you would buy him a beer and pull him away into a corner at the local bar and ask him if the money was still safe. Every time you asked him he told you “as safe as could be” so you never really worried about it. But then one day you hear how Louie’s partner Sam asked for his money back but then a few weeks later Sam was found dead in a car trunk. Then the same thing happens again twice to Monty and then to Hugo, they are also found dead so you start scratching your head because these are all sort of similar …but then it happens. You find out through the grapevine that their houses were burglarized during the funeral and each one of the widow’s was heard saying that everything was busted up and the “cookie jar” was missing! Aha! Do you get it yet?
OK so I’ll finish the story for you. After hearing about this you “tip toe” up to Louie and ask him if it’s OK to have the $1,500 back? Louie grunts and growls a little bit so you back off and say, “How about $300?” After asking a few questions meant to put you off, Louie agrees to give you the $300 over the next 7 years. The only problem is that after the first year he only gave you $5 back and asked you to buy him a beer…and something else is a little bit strange. The dollar bills that you gave him were so old that they were “gold certificates” and had old serial numbers on them, you didn’t remember the numbers but you knew they were early numbers. The strange part is that the dollar bills you got back were new ones. They smelled new, the bills were crisp and even “better” than the ones you gave Louie to begin with. They even said “Federal Reserve Notes” on them. Hey wait a minute these aren’t the bills I gave Louie all those years ago! Do you see what happened?
Now you are in a pickle, Louie is walking down the street swearing at everyone and even gives out a few beatings on the way. He finally walks up to you and says (not asks), “Hey Angelo, you still need all that money back or is it OK if I still keep it safe?” What are you going to say to him? Oh and I forgot, you and Louie are also business partners in several restaurants around town that aren’t doing so well anymore. If you put the word out on the street that Louie is a thief, people might wonder about the food quality and then your other restaurant investments go down the drain.
Let me explain this for you and I will add that it is in “my opinion” so folks like Jeff Christian cannot yell “liar liar pants on fire.” “In my opinion,” the German gold is gone, LONG gone! They will never get it back. They know it, the Fed knows it and I hope that you know it too. We stole it. We sold it. Maybe even 10 times over…or 100? The Germans cannot say anything at all about it because their banks are just as leveraged as or even more so than ours are. If they open their mouths… the entire system will be exposed as a fraud. The entire system will collapse; there will be violence, chaos and loss everywhere you look. Period, end of story and extremely simple. “We” knew this 17 or 18 months ago when the story first broke that Germany wanted their gold back but could only get 20% of it …over 7 years…and now they only got 2% and suddenly they don’t want it anymore. Could the story get any better?
I have to ask, do “they” (the German and American powers that be) really believe that ANYONE could be this foolish? Do they really believe that ANYONE believes ANY of this story? No, they do not. What they do know is that this (as well as other situations) is an example of “MAD” (mutually assured destruction) if they are recognized. So, very simple, just “don’t recognize them.” Tell a happy story that Bloomberg can print…and then just forget about it. “Fuggedaboutit” because the average person will forget about it and only the tin foil hat society will ever even mention it …and they are crazies anyway and no one listens to them! Gold should be up $200 on this news and never to look back but it’s not because it is still “under control.” If you know anything about poker then you know that you cannot bluff on every single hand because sooner or later your bluff will be called!
I penned this piece yesterday evening and thought that it was finished but a little more comedy has come out since then. The head of German gold repatriation has come out and responded to the Bloomberg article. Peter Boehringer now says that the article is a false headline that he is taken out of context and old news. His response sounded to me (but I am a jaded nut job) like he protests too much and that “they really didn’t want their gold back in the first place.” If I were a reporter and had the chance to ask just a couple of questions I would ask: What has changed? Why the about face and especially since you didn’t get your promised 42 tons…which turned out NOT to be the gold that you deposited in the first place? Who is holding a gun to your head?
One last thought, the Bloomberg article quotes Norbert Barthle, the spokesman for the CDU (Angela Merkel’s Christian Democratic Party) as saying, “The Americans are taking good care of our gold.”
Objectively, there’s absolutely no reason for mistrust.”
Umm, no reason for mistrust? I’m almost speechless (that almost never happens)! How about simply because you are in essence saying “trust me?” How about the above mentioned facts that they only received 5 of a promised 42 tons for the year 2013 and the fact that it wasn’t even the same gold? Have they really stooped so low as to answer with the tried and true response of a 5 year old…”BECAUSE?” Let me finish with this, “they” must think that either they are so smart or that “we” are so dumb…”they don’t need no stinkin’ common sense” because whatever they feed us we will consume.