If the Federal Reserve Bank of New York has all of the gold in its vaults that is owed to Germany, there will be no problem.
But what about other central banks?
If they follow suit, the scene in Die Hard 3 will be repeated: gold flows out.
Before this happens, there had better be an independent audit of the Federal Reserve. Is all of the gold held by the NYFED on behalf of the U.S. government kept separately from all the gold the NYFED stores for foreign central banks?
If the NYFED has mixed the assets, the Congress had better stop the NYFED from shipping U.S. gold abroad.
That would mean a default by the NYFED. That would cause a huge move up in the price of gold.
Better now than later.
If this happens, the government can tell the NYFED to auction off its gold in the form of American gold eagle coins. Let Americans buy it.
Why should Germany be at the head of the line? But it is. It will get its gold.
You had better get yours. Now.