In January 2013, the German central bank asked for half of its gold back. It was being stored by the Federal Reserve Bank of New York on behalf of the German government.
The Federal Reserve said: “Sure. In seven years, maybe.”
This week, the German government said: “We were only kidding. We don’t want our gold. We trust the American government.”
You can’t get blood out of a turnip.
It does no good to lock the gate after the horse has run away.
So, the German government is putting lipstick on its pig. It really did say that there is no problem, that it trusts the United States. The German government expects the voters to accept this.
“The Americans are taking good care of our gold,” Norbert Barthle, the budget spokesman for Merkel’s Christian Democratic bloc in parliament, said in an interview. “Objectively, there’s absolutely no reason for mistrust.”
What this means is that Germany isn’t going to get its gold . . . ever.
The day Germany turned over its gold to the New York Federal Reserve Bank, it surrendered ownership . . . forever.
There has never been a full audit of the gold held by the Federal Reserve or at Fort Knox. “Trust us.”
If the voters in Germany go along with this, they will announce for all the world to hear: “We are dumber than dirt.”
The German government needed to save face. So, now that has been stiffed by the Federal Reserve, it comes up with an explanation. “No problem!.”
The Federal Reserve has remained silent.