Germany to the Fed: We Demand to See Our Gold!
Posted by Adam English - Thursday, November 1st, 2012
As previously report in Wealth Wire, the German federal
auditors' office has publicly criticized Bundesbank, its central bank,
saying they should be more pro-active when it comes to taking control
and responsibility for the county's gold reserves stored in the United
States, Britain, and France.
Now they're encountering the same thing domestic politicians and citizens in the USA have faced for decades. The Fed is stonewalling the Germans and refusing to let them even see the gold they own.
and repeated requests were only partially addressed. Bundesbank staff
members were allowed to see the facility in 2007, but they reportedly
only made it to the anteroom of the German reserves.
Bundesbank auditors made a second visit
in May 2011. This time one of the nine compartments used to store
Germany's gold was opened. Only a few bars were pulled out and weighed,
but that was it.
Even the details of this minuscule
inspection were blacked out in a German auditor's report “out of
consideration for the Federal Reserve Bank of New York.”
So far, the 1,536 metric tons of gold, worth about $93 billion at spot prices, has only been backed up by personal assurances.
Fed's secrecy has warranted increasing suspicion and concern. It is
understandable to limit access as much as possible for security reasons.
these are high-ranking officials with $93 billion in deposits. The Fed
is merely holding the reserves for the Germans and is refusing to allow
them to inspect what they own.
Fed's actions only help validate claims that Germany's gold is long
gone or been lent out and that promissory notes -- official “IOUs” --
are sitting in the vault. The Fed has vehemently denied the claims but
has worked tirelessly to avoid any form of inspection.
The leaked report from the German auditors has caused grave concern in Berlin about the gold reserves entrusted to the Fed.
Bundesbank board member Carl-Ludwig Thiele cautiously stated, "I would like more transparency on the issue."
tame assurances and diplomatic understatements will not suffice. Thiele
was summoned to Berlin to provide an explanation to a parliamentary
Heinz-Peter Haustein, of the pro-business Free Democratic Party, stated during the hearing, "all the gold has to be shipped back."
The Bundesbank has pledged to bring back
and inspect 150 tons of gold from abroad over the next several years.
There are also plans to count and weigh the gold bars stored in one of
its nine chambers at the Fed in New York.
As to what inspecting a mere 11% of
Germany's reserves will actually settle, when a direct inspection will
occur and how much of the 150 tons shipped back to Berlin will come from
the Fed, no details are available.
11/02/2012 04:21:00 PM
Thanks to: http://www.ascensionwithearth.com