More on the German Gold Repatriation Scheme

Tue, Jan 21, 2014 - 3:30pm

This story gets more fantastic by the day. Just like The Jelly of The Month Club, I suspect that it will be "the gift that keeps on giving the whole year" in 2014.

So now we're told that Germany actually repatriated 37 metric tonnes of gold in 2013, or about 5% of the total 700 ton repatriation plan announced about a year ago. Of this 37 tonnes, 32 were shipped the 500km from Paris to Frankfurt while a whopping 5 metric tonnes made it across the Atlantic from New York.

We are then told by the various central bankers that the reason for the paltry and delayed shipments are "logistical" in nature, due to the "challenges" of moving so much gold. Really? Seriously??

Here's one for you...Did you know that, because of the density of gold, an entire metric ton can be poured into a cube with dimensions of just 15 inches on each side? Fifteen inches. If you laid them out in a row, end to end, five cubes (five metric tonnes) would stretch out for a total of 75 inches (also known as 6'3"). Hmmm. And the logistics of shipping more than 5 mts in a single year are challenging, huh?

How about the logistics of loading 32 of these cubes onto a truck and driving them the 500km from Paris to Frankfurt. That sounds like one hell of a challenge, too, doesn't it?

Look this is clearly all a farce, designed to patronize the German people while extending the life of The Great Ponzi. Perhaps the Germans are waking up to this as there's now a movement afoot to get ALL of the German gold back and pronto: We'll see about that. In the meantime, it should be great theater to watch the bankers preen and posture while they try to assuage their citizens' fears.

To that end, I thought I'd include here this latest video from Dan Ameduri. In this piece, Dan interviews Brien Lundin who, among other things, is the founder of the New Orleans Investment Conference. The NOIC is usually the biggest "natural resource" conference of the year so Brien clearly knows a little bit about the metals. You should watch the entire thing but you may find most interesting some of the stuff that is mentioned regarding the German Gold Scheme.

To be continued...


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Fred Hayek
Jan 23, 2014 - 8:44am


And this is not meant to pile on. This is instead some advice...

Bron, this is why so few people trust you. Instead of addressing the main issue, you set up a different argument that no one is making.

Of course, no one expected that entire 700 mts to be returned in a matter of days and weeks. But you set that up as the key point and then knock it down as a logistical fallacy, by doing so claiming that the concerns about the 8 year timeline are therefore meritless. This is the debate tactic of someone attempting to obfuscate.

The chief concerns are these:

  1. The entire 8-year timeline for delivering 700 mts of gold back to Germany.
  2. Only 32 mts (10% of the Paris repat) can make it the 500km from Paris to Frankfurt in 11 months?
  3. Only 5 mts (1.67% of the NY repat) can be shipped from NY to Frankfurt in 11 months?
  4. The initial story of the NY gold being recast into LGD bars before shipment back to Germany, later changed by the Bundesbank once the uproar and questions began.
  5. The growing mistrust of the German people in the process and the new movement to demand ALL of the German gold back immediately.

Whether or not you think the five points above are significant does not matter. We all have our opinions and you are certainly entitled to yours. However, if you choose to address this matter again in the future, I'd be interested to read your thoughts on the actual issues of concern.

Jan 23, 2014 - 8:17am

Ben Bernanke's Banksters Legacy

With Ben Shalom Bernanke set to depart on the last day of January 2014, the critique and speculation of his tenure as Chairman of the Federal Reserve begins. The mainstream financial press is giving mostly favorable accounts. Heretofore, such praiseworthy acclamations strike a shape contrast with the actual record of the state of the economy. However, the admirers of the Fed and his specific enactments live in a time warp that only masters of the universe encounter. For the remaining population, an intense struggle for survival is the actual experience, remembered from the Bernanke years.

Investopedia expresses a complimentary score of The Legacy Of Ben Bernanke, and cites distinguished highlights and concludes that "Under Bernanke’s stewardship, the Fed became the most transparent it has ever been in its history."

Yet, they are compelled to mention that from 2008 onward, Bernanke and the Fed embarked on a series of unparalleled – and often unconventional – rescue programs and stimulus measures. These included:

  • ratcheting interest rates down to the lowest levels in American history;
  • force-feeding the U.S. economy with trillions of dollars through successive rounds of "quantitative easing";
  • bailing out troubled Wall Street firms and institutions;
  • orchestrating the rescue of other troubled financial institutions through shotgun weddings; and
  • lending funds to diverse sectors of the U.S. economy to revive stalled credit markets.

Jan 23, 2014 - 7:43am

Bretton Woods

The reports of the Bretton Woods conference which I have read indicate that, while Keynes was active, US lead representative (and subsequently exposed communist) Harry Dexter White called the shots. White definitely overruled Keynes as regards the establishment of the US dollar (rather than some basket of currencies or other alternative) as the reserve currency.

So, given that the convertability of the dollar into gold was presented and established by a known communist, why should we lament the end of that convertability? Does someone suggest that, after WWII, the US needed gold convertability for the dollar to become a (if not the) reserve currency? Why do so many gold bugs long to return to a day when governments can exchange their US fiat for US gold?

As for the inflationary result of the closure of the gold window, I submit that elimination of subsidiary silver coinage (i.e. "junk silver") removed a greater restraint than stopping "Free World" governments from exchanging paper for gold.

Jan 23, 2014 - 7:10am

Nice little pop this morning

And it is kind of interesting to read this from 1965. It reads like it could have been written yesterday.

Why U.S. Opposes a Return to the Gold Standard

by Shih Yuan

[This article is reprinted from Peking Review, #9, Feb. 26, 1965, pp. 24-25.]

FRENCH President Charles de Gaulle’s recent call for an end to U.S. dollar dominance in the international monetary market and a return to the gold standard has met with an immediate spate of abuse from Washington. The alarmed U.S. rulers are apprehensive of losing their financial hegemony over the capitalist world.

It is well known that under the gold standard system gold is considered the only world currency in international payments. The French President’s proposal means that from now on gold should be used as the final medium in international payments and clearance. This would deprive the dollar of its privileged position as an “international currency,” and more than ever many countries would need gold rather than dollars and would rush to cash in dollars for gold from the United States. Consequently, there would be a still greater American gold outflow.

In the capitalist world, the U.S. dollar has occupied for 31 years a privileged position of equality to gold. Many capitalist countries kept the dollar as a reserve to support their domestic currency. Particularly in international payments and transactions, the dollar has enjoyed special prerogatives. Thus, the United States has actually become a central bank for the capitalist world, issuing paper currency and using it as an equivalent to gold. Such an abnormal state of affairs has given the U.S. Government innumerable advantages.

Jan 23, 2014 - 4:40am

The Japanese fear

The Japanese fear inflation…and buy gold

A statement out this morning from Japan’s biggest bullion retailer, Tanaka Kikinzhou Kogyo K.K., shows gold sales surged by 63% in 2013. This comes in the face of Prime Minister Abe’s desperate attempts to weaken the currency and inflate the economy.

According to the statement, sales exceeded purchases for the first time in four years. In 2012 22.9 tons were sold in the form of bars to local investors, in 2013 37.3 tons were sold.

The gold price drop was felt slightly less sorely by gold investors last year as the price fell by just 13% priced in yen. Volumes on TOCOM climbed by 5% last year, thanks to the weakened currency.

Safety Dan
Jan 23, 2014 - 3:45am

What If....

I've pondered the recent discussions on the "Fed's gold", is it really there? Most think not.. What if it was, and more.... Think back to Rickards 2009 currency wars in the war room, with brass.. Think back further to WWII and all the CIA recovered yellow stuff Gen MacArthur and what was the emperor's name in Japan that survived his war crimes.. How much of that loot was recovered and stuck away into the 170 plus banks?

I suggest these ideas as we turdsters know gold is money, and I believe the elite know gold is money. Why would they give it away as debt repayment if they know fiat will do? Price suppression? Did that come up in the currency wars?

Recently Roger Roxas won a $22 billion award against the Marcos, largest in history. YAMASHITA'S TREASURE - ROXAS BUDDHA # 1

One has only check history to see how Mrs Imelda Marcos spent $1 million in a single day in 1978 in New York to confirm they had much gold. Where is it? I have talked to personnel who loaded Marcos onto a Military Aircraft, (C17; C5?); he confirms no gold went with them on their flight to Hawaii.

I cut out an article in the Washington Post [now disappeared from any Google search] about the CIA and Navy Seals in a joint effort recovered over 300 tons Au in 2003 of the west coast of Luzon Island. Where did that gold go?

Here's more food for thought...

In one noteworthy case, attorney W.R. "Cotton" Jones walked into the Swiss Bank Corporation in New York City and asked the bank to authenticate a $25 million certificate of deposit issued by the Bank and bearing the Federal Reserve seal. Cotton was quickly arrested by the Secret Service and his certificates were confiscated. As Cotton rhetorically asks, how can a Swiss bank have a federal agency intervene on its behalf and confiscate personal possessions? What right does the Secret Service have to arrest, interrogate, intimidate, and threaten anyone on a Swiss bank’s behalf, without due process of law?

The answer is obvious: the banks that maintain the US government’s stolen gold are above the law, and if they stonewall long enough, anyone trying to sue them will eventually fade away. The Seagraves asked the Treasury Department, Defense Department, and the CIA for records on Yamashita’s gold in 1987, but were told the records were exempt from release. During the 1990s, the records mysteriously went missing. Other records were destroyed in what the Seagraves caustically call "history laundering."

Did you know Hoover's son had to get permission from the Treasury to sell $100 million worth of gold bullion?

So I ask again, what if.. What if the gold is being held hostage. Btw, where did the Federal Reserve get 16 Trillion to lend out? What if....

Sir Peter Latterman Fortenton
Jan 23, 2014 - 3:44am


We can move around 10 million barrels of oil out of Saudi every Day, refine and distribute it round the world,

but a few golden cubes in handy liftable sizes, nah, forget it.

I wonder did it take 5 years to get the German gold INTO the fed vaults?

OldhatFred Hayek
Jan 23, 2014 - 2:43am


Your kidding me right? I hope this was sarcasm on your part.

Do you even remotely understand the capacity to move stuff in and between developed nations?

Come on man!

Fred Hayek
Jan 23, 2014 - 1:16am

Way to argue against a point that's beside the point, Bron

Argue against a flippant bit of hyperbole instead of defending the absurd failure of the U.S. to return more than 5 tons of Germany's gold in one year's time.

Back in 1971, France had one of their warships go to New York and pick up $191 million worth of gold for which they had smartly turned in crappy U.S. fiat paper providing at least some of the impetus for Nixon's August 15th announcement that year.

How much gold was $191 million at 1971 prices? Let's use $35 per ounce and we get 5,457,143 ounces of gold. And that translates to 374,289 pounds or 187.1 tons. And the ship would take about a week to go back to a German port from New York.

So, really this all could have been done easily in one year. At the very least, 5 tons in one year is an implicit statement that the U.S. has no interest in or intention of giving Germany back its gold. Hell, Koos Jansen's numbers show that there was over 2,000 tons of gold that went into China from the Shanghai Exchange this year. How big a deal would it have been for the U.S. to simply purchase the 40 something tons due this year? That's only 2% of what was taken from the Shanghai exchange into China.

Unfortunately for those who would apologize for the U.S. in this matter or try to obfuscate, this is just one more bit of information that the whole world can see making the case that the present U.S.-U.K. dominated gold pricing system is very likely one large scam.

Jan 23, 2014 - 12:55am

R Germans Puppets?

That is the important question. Can they exercise free will? After WWII they were taken over, text books rewritten and a new people emerged, guilty as hell, and under UK-USA controll.

The German people are now "of Prussia" not called Germans anymore. Ok, sit down, the info maybe contradicts your bs education. The War, remember, we killed them, took over their country and installed puppets, for sure. Today with the internet we can hope the German people wake up, but Draghi and the GS group have other plans , you bet.

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