http://albertpeia.com/warningshot.htm
‘Germany has the
second largest Gold reserves in the world behind the US. Since the early ‘80s,
it has stored the majority of these reserves with the NY Fed (45% vs. 13% in
London, 11% in Paris and the remaining 31% in Frankfurt).
With that in mind, everyone
needs to be aware that last Monday Germany’s Bundesbank announced it will be
moving a major portion of its reserves from the US and all of its
reserves from France back to Frankfurt.
Nearly half of
Germany’s gold reserves are held in a vault at the Federal Reserve Bank of New
York — billions of dollars worth of postwar geopolitical history squirreled
away for safe keeping below the streets of Lower Manhattan.
Now the German
central bank wants to make a big withdrawal — 300 tons in all.
On Wednesday,
the Bundesbank said that it would begin moving some of the reserves, the
second-largest stock in the world after that of the United States. The goal is
to house more than 50 percent of German gold in Bundesbank vaults in Frankfurt
by 2020, up from a little less than a third today, the bank said…
The new policy
will include the complete withdrawal of 374 tons of German gold stored at the
Banque de France in Paris, about 11 percent of the total. Bundesbank officials were
quick to note that the decision was not a reflection of French trustworthiness.
Rather, because France and Germany now share the euro, there is no need for
reserves as insurance against currency crises
This announcement
came with the usual political statements that the decision had nothing to do
with a lack of trust between the Bundesbank and the US Fed or Bank of France,
but the message is obvious: Germany sees the writing on the wall and is moving
to secure its Gold reserves.
Remember, Germany
has spent the better part of two years preparing for financial chaos. Since the
autumn of 2011, it has:
1)
Implemented legislation that would permit Germany to leave the Euro but remain
a part of the EU.
2)
Revived its Special Financial Market Stabilization Funds, or SoFFin for short,
allocating 480 billion Euros to the fund (and also providing German banks with
a place to dump their Euro-zone Government bonds if they need to).
3)
Implemented reforms that would allow it to close off its borders for as long as
30 days if it needed to (so individuals and capital couldn’t leave Germany)
4)
Created a working group to assess both the economic impact of a Greek exit from
the Euro as well as how to manage the impact of a collapse in France.
5) Pulling
all of its Gold from France as well as a major portion of its Gold from the US.
All of these are
verifiable facts that the Western Media has avoided talking about. It is very
easy to connect the dots here: Germany is implementing a contingency plan to
put a firewall around its financial system for when the EU finally breaks down.
A final note here:
the tension between the world’s Central Banks just increased dramatically.
Since the Great
Crisis began in 2008, the world’s Central Banks have collectively pumped $10
trillion into the global financial system. Every major Central Bank from
Germany to the US and China wants to debase its currency to benefit exports and
facilitate dealing with its debt load (even China sports a real Debt to GDP
north fo 200%).
This competitive
debasement has lead to increased tension between the world’s Central Banks. You
will never hear their stated outright for the simple reason that the single
most important responsibility of the Central Banks is to maintain confidence in
the system.
However, underneath
the veneer of goodwill and the occasional necessary coordinated
intervention, tensions are rising between Central Banks. When the US debases
the US Dollar it pushes the Euro higher. This hurts German exports which in
turn angers the Bundesbank.
The Bundesbank fired
a warning shot at the Fed last autumn when it announced it wanted to have its
Gold reserves at the Fed audited. To be clear here: no one of major financial
import has ever questioned the Fed’s trustworthiness before. However, at the
time of this announcement Germany stated it had no intentions of actually
moving its reserves.
Fast-forward to
today and Germany has not only audited and checked its Gold reserves at the Fed
but it is now moving them. In plain terms, Germany has told the world
that A) it does not trust the Fed and B) it is through playing around.
This situation will
likely be getting worse going forward. The fact that Germany will be removing all
of its Gold reserves from France certainly doesn’t bode well for future German
French relations if push ever comes to shove (it’s not as though Europe has a
history of getting along well).
Remember, the only
thing holding the financial system together is belief in the Central Banks. If
the Central Banks (it was Germany’s Bundesbank that is behind the Gold move)
stop trusting one another or grow openly antagonistic, then things will get
very bad very quickly.
For months now we’ve
been asserting that the “improvements” in the global economy and financial
system were a mirage. Germany’s move has confirmed this. If the financial
system was in fact safe and the global economy was improving, Germany would not
feel the need to repatriate its Gold.
Which begs the
question, what exactly do German Central Bankers know that we don’t?
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