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History will look back on this salvo as being the beginning of the end of the U. The incident Sinclair is referring to is the notorious failure of the Bretton Woods currency system in By order of President Nixon, America defaulted on its gold obligations. Foreign nations, led by France, balked, but they lost the battle.
Has America finally printed one too many dollars out of thin air? German fear of inflation from money printing is well telegraphed. The Bundesbank has fought the European Central Bank over its quantitative easing programs. Is Germany now signaling that a confrontation with the Federal Reserve is immediate? And that Germany will throw its weight behind those who are pushing for an alternative global reserve currency to the dollar?
According to the Bundesbank, the reason is twofold. First, storing gold in America makes it easier to sell, or pledge, in case of an economic emergency. It is easier for others to quickly take ownership of it. According to the Bundesbank, that is no longer a concern. Forcing Germany to store its gold overseas was the primary financial mechanism preventing Germany from ever starting another war.
Now America, Britain and France appear to think that insurance policy is no longer needed. It will be a tragic mistake. Frankfurt has retaken possession of tonnes out of 1, tonnes stored across the Channel.
Now it is repatriating tonnes of gold from America, which equates to about 20 percent of its holdings in the U. Interestingly, the German central bank says it will take seven years to get its gold from America. What is that all about? Why would America need seven years to transfer what is essentially a bunch of bricks? Is America still hesitating at relinquishing control over Germany? It took less than three years for Germany to remove more than twice that much from Britain.
Northern Europe, led by Germany, is fighting for control of the European Central Bank against a group of mostly southern nations led by France. The outcome will impact euro exchange rates, debt markets, employment, social stability—and ultimately, even which countries will remain part of the eurozone. After the gold in New York was able to be transferred ahead of schedule in , roughly 91 tonnes of gold still remained in Paris.
This was relocated to Frankfurt this year and as a result, there are no longer any German gold reserves in Paris. The following table gives an overview of the gold transferred.
Once they arrived in Frankfurt am Main, all the transferred gold bars were thoroughly and exhaustively inspected and verified by the Bundesbank. When the inspections of transfers had been concluded, no irregularities came to light with regard to the authenticity, fineness or weight of the bars. In spring , the Bundesbank will publish an updated version of its gold bar list as at 31 December on its website. And so, Germany's repatriation of tonnes of gold - or 53, bars of gold - is complete, lifting the amount of gold held domestically to 1, tonnes or Going forward, Germany will still have 1, tonnes held at the NY Fed, and another tonnes of gold at the Bank of England.
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We also provide translations of several articles for that purpose. Secure storage outside the banking system Learn more. From the press release: Gold Geopolitics Economics Financial crisis Central banks.