To Ranting Andy Hoffman from myself, David Schectman:
We could have seen this coming. The game is rigged at all levels. To expect the Bundesbank to torpedo the Fed is naive.
With their “token” repatriation, they have racked up some political points without ruffling anyone’s feathers. We should know better by now, to expect any major central bank or government act to favor our position.
From Ranting Andy Hoffman to me:
No matter, this was a HUGE deal. They are not dumb; and if they announced SEND IT ALL there would be a panic.
Had 1,000 in Germany (if not leased out – LOL) and 2,400 abroad. Bringing back 700, or 30% of the overseas-held gold), to make it 50/50.
To recover just a small part of Germany’s gold, Bundesbank will need 7 years – GATA.org
Submitted by cpowell on Wed, 2013-01-16 13:56. Section: Daily Dispatches
9:14a ET Wednesday, January 16, 2013
Dear Friend of GATA and Gold:
The Deutsche Bundesbank’s plan announced today to repatriate some of Germany’s gold reserves from the Federal Reserve Bank of New York is so incomplete and slow as to increase, not diminish, doubt that all the gold is really available.
Venezuela last year managed to repatriate all its gold from the Bank of England in a matter of months, but apparently the Bundesbank will need seven years to retrieve only a small fraction of its gold from the New York Fed.
Bundesbank board member Carl-Ludwig Thiele’s comment today, defending such a minimal repatriation, seems silly. “If I hold gold in my own vaults, I have to check it myself,” Thiele said, according to the Reuters story appended here. So, Herr Thiele, if you keep it somewhere else you don’t have to check it?
Appended are the Reuters story on the Bundesbank’s announcement, the full text of the Bundesbank’s statement, and an incisive response from Peter Boehringer on behalf of Germany’s Repatriate Our Gold campaign and the German Precious Metals Association, who notes the need for a full audit of Germany’s gold that guards against impairment of the reserves through leases and swaps.
CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc.
The following explanation is put forth by Jim Sinclair. I think it is very important and absolutely should be read:
Germany Reacts To The Retiring Treasury Secretary’s Parting Shot – jsmineset.com
January 16, 2013, at 1:05 pm
by Jim Sinclair
My Dear Extended Family,
I respectfully disagree with most of the explanations given today on the why of German actions in gold. My understanding is that the causal event of this notification actually came from the actions of the US Exchange Stabilization Fund and the long term plans to strengthen the euro.
I have published a chart from Patrick showing the extreme change in the ratio of gold to fiat currency presently being held in reserve by Euroland.
First you need to understand what the Exchange Stabilization Fund is and is not. It is an account at a major gold bank in the name of the Exchange Stabilization Fund. This fund can legally trade in gold and does. The President of the USA and the Secretary of the US Treasury run this fund. Those two managers by law are permitted to designate another manager if they wish. The fund can trade long or short, borrow or lend anything. Basically this is a an account that can legally do anything it wants whenever it wants in secret as the year end statement can easily be brought to only benign activates by warehousing all the trades.
Their broker is quite an expert in that strategy to wash year-end positions for clients.
What occurred as I am told is an act in Germany in reaction to a parting shot from the retiring Secretary of the US Treasury via the Exchange Stabilization Fund.
Read more at jsmineset.com