Like many countries around the world, Germany has stored some of its gold reserves in the United States. A few months ago, they asked for the opportunity to audit their American gold holdings, but the Federal Reserve refused to permit that audit. Now why would they do that?
As a result, the Germans have demanded half of their gold back. They have “politely” given the U.S. until 2020 to scrape together a few hundred tons of gold.
The first big question is why it will take seven years to return Germany's property. The second big question is why our government wouldn't permit Germany to audit its own gold.
Perhaps there is no German gold. Come to think of it, no one – including Congress – has been permitted to audit either the Federal Reserve or America’s own gold reserves. Considering the gangster methods employed by U.S. bankers and the government, perhaps there is no gold in Fort Knox.
Here is a good article about the German gold situation and the implications for the broader American and world economy:
Peter Schiff - The Bernanke Shock
By Peter Schiff
February 4, 2013
The financial world was shocked this month by a demand from Germany's Bundesbank to repatriate a large portion of its gold reserves held abroad. By 2020, Germany wants 50% of its total gold reserves back in Frankfurt - including 300 tons from the Federal Reserve. The Bundesbank's announcement comes just three months after the Fed refused to submit to an audit of its holdings on Germany's behalf. One cannot help but wonder if the refusal triggered the demand.
Either way, Germany appears to be waking up to a reality for which central banks around the world have been preparing: the dollar is no longer the world's safe-haven asset and the US government is no longer a trustworthy banker for foreign nations. It looks like their fears are well-grounded, given the Fed's seeming inability to return what is legally Germany's gold in a timely manner. Germany is a developed and powerful nation with the second largest gold reserves in the world. If they can't rely on Washington to keep its promises, who can?
Charles M. Grist
Author of the award-winning book My Last War: A Vietnam Veteran’s Tour in Iraq