BuBa: Half of German Gold Reserves Will Be Stored in Germany by 2020!

Bundesbank goldThe gold (German reserves) is being transferred to Germany for the first time. Until 1998, only 2% of our gold, or thereabouts, was stored in Germany. In the first year, we transported five tonnes from New York. This year, we will transfer 30 to 50 tonnes, or perhaps even more, from New York to Frankfurt. And there is still next year to come….We will store half of the German gold reserves in Germany by 2020 at the latest.  -Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank, 2/19/14

Interview with Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank, published in Handelsblatt on 19 February 2014.

Translation: Deutsche Bundesbank

Interview conducted by Norbert Häring and Jens Münchrath.

 

Mr Thiele, do you consider yourself a kind of psychotherapist of the German soul?

 

No, why should I?

 

Bundesbank President Jens Weidmann described the partial transfer of German gold from New York as a trust-building measure in Germany.You are the one responsible for organising this major logistical undertaking.

 

Indeed, we are inspiring trust by storing half of the 3,400 tonnes of gold in Frankfurt by 2020. Building trust also means being transparent. We were the first central bank to publish details of our storage facilities, including the respective quantities of gold stored there.

 

Is there a scenario in which gold could begin to be used in monetary policy?

 

A highly theoretical scenario would involve extreme turmoil on the foreign exchange markets. Germany safeguards its solvency through reserve assets. In addition to foreign currency, our reserve assets include gold reserves. This gold could be pledged or exchanged directly for foreign currency. That is also why we have left the other half of our gold reserves in New York and London. Although we thankfully do not envisage such a crisis scenario, central banks are designed for the long term.

 

In October 2012, you promised the German Bundestag that you would transfer a total of 150 tonnes of gold from New York to Frankfurt by 2015.In January 2013, you extended the time frame to 2020 and increased the amount to 300 tonnes. What time frame are you looking at now?

 

The plans are not contradictory. We specified our initial target in October 2012. In January 2013, we then presented a new gold storage plan and specified a new target that is considerably higher than the first. Instead of only 150 tonnes, we are now transferring 300 tonnes of gold from New York to Germany.


So both targets still apply?

 

We now consider ourselves bound to the new gold storage plan. But the three years have not yet passed. We shall wait and see. We are on the right track in any case.

 

But the members of the German Bundestag have acted on the assumption of the initial promise.The second has got a more long-term oriented time frame. Was your initial promise overly ambitious? In the first year, you only returned five tonnes from the USA.

 

It is not a question of “returning”. The gold is being transferred to Germany for the first time. Until 1998, only 2% of our gold, or thereabouts, was stored in Germany. In the first year, we transported five tonnes from New York. This year, we will transfer 30 to 50 tonnes, or perhaps even more, from New York to Frankfurt. And there is still next year to come.

 

Does that mean that the target of 150 tonnes is still attainable?

 

Since we are in the midst of an ongoing process, I would like you to ask me the question again in two years’ time. In any case, we will store half of the German gold reserves in Germany by 2020 at the latest.

 

Why are you content with such a low target for this year? Is the programme still experiencing teething problems in its second year?

 

No, it is not. We have planned the timing of the transfers in such a way as to ensure that 300 tonnes are transferred from New York to Germany by 2020 at the latest.

 

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There are these rumours that either the gold in New York is no longer there or you do not have unrestricted access to it. Why have you not called in auditors or other externals to oversee the transfers in response to such rumours?

 

It astounds me that Handelsblatt pays any attention to such absurd rumours. I was in New York myself in June 2012 with the colleagues responsible for managing the gold reserves and saw for myself how our money is stored in the vault there. The Americans have never stonewalled or hindered us in any way. On the contrary, their cooperation has been most constructive in every respect. Our internal audit team was present last year during the on-site removal of gold bars and closely monitored everything. The smelting process is also being monitored by independent experts.

 

Does this also apply to opportunities to inspect the stocks? You said a year ago that discussions on the matter with the Federal Reserve Bank of New York were making good progress.

 

That is correct. We have enjoyed an excellent relationship of trust with the New York Fed for many decades. As regards the details of the contracts, however, we are bound by confidentiality which we cannot unilaterally break. From my visit to New York, I can tell you that a number of bars selected by us were removed, inspected and reweighed even while I was there. The inspections conducted by our internal audit team, during which an external auditor was also present, were also completed to our utmost satisfaction.

 

Was an external auditor present during your visit to the New York Fed gold storage facility in June 2012?

 

No, not during my visit. However, an external auditor was present for part of the time during the internal audit team’s inspection of stocks.

 

Did the gold from New York have to be melted down immediately?

 

The gold was removed from the vault in the presence of the internal audit team and transported to Europe. Only once the gold had arrived in Europe was it melted down and brought to the current bar standard. Some of the bars in our stocks in New York were produced before the Second World War. It was confirmed after the melting process, as anticipated, that these bars were absolutely fine.

 

The Federal Court of Auditors (FCA) sparked the debate by calling for an inspection of Germany’s gold holdings abroad. When you announced in October 2012 that part of the holdings were to be transferred to Germany, the FCA responded that this was a first step, but not a comprehensive procedure. Is the FCA now satisfied?

 

The FCA never demanded that the Bundesbank transfer gold to Germany. It was more concerned with extending its rights with regard to inspecting gold reserves abroad. The Bundesbank’s internal audit department now has rights it never used to have. The Budget Committee has acknowledged the FCA’s report, which concludes this discussion. Incidentally, the FCA examined the Bundesbank’s annual accounts for 2012 and found no irregularities.

 

The FCA claims it has no knowledge of newly agreed audit rights.

 

The FCA has access to all information at all times. I am sure the President of the FCA will be able to confirm this for you.

 

If the intention was to build trust, would it not have been better to postpone the smelting process so that you would have been able to present the original bars to skeptics?

 

Prior to transportation, the original gold bars were handed over to us in New York. Our internal audit team checked the numbers of the bars there and then against its own lists. Thevery same gold arrived at the European gold smelters that we had commissioned. This ought to demonstrate to everyone that such conspiracy theories are completely unfounded.

 

Calling in external auditors or critics was not an option?

 

The Bundesbank’s internal audit department is involved in the process from start to finish. Independent experts were present during the smelting process.

 

Are there any advantages for the Americans in storing gold for other nations? After all, they are protecting our reserves free of charge.

 

To answer this question, you need to look at the historical context. As you may know, gold reserves were established during the Bretton Woods fixed exchange rate system. Given the threat from the East at the time, it seemed the safest option was to store German gold as far west as possible. The gold was therefore stored in New York from the outset.

 

So the Americans are taking on high storage costs for nothing in return?

 

No, why high storage costs? The gold has been stored there for decades. The storage rooms already exist.

 

Security guards cost money…

 

It is not just our gold that they protect, but also that of other central banks. But that is a matter for the New York Fed.

 

Just over a year ago, you were asked whether storing gold with the victors of the Second World War was not perhaps an echo of the old Bonn Republic when Germany was not yet a fully sovereign state. Back then, your answer was rather vague. What is your answer today?

 

To my knowledge, gold was stored in New York, London and Paris mainly for security policy reasons. We transferred 930 tonnes of gold from London more than ten years ago without experiencing any difficulties with the Bank of England or upsetting German-British relations.  The same applies to the Banque de France and the New York Fed.

 

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Comments

  1. Theile   hogwash.  disinfo designed to keep the German  people from crucifying the people responsible.  How Merkel figures into this is not known but the people will be rightfully pissed when it becomes known that the German gold, some 3,400 tons, has gone missing. I expect the only reason that France returned that portion they held is German armor and troops would be brought to bear.  Even the threat of that would get Hollande to cough up the phyzz.  France’s army is not what it used to be.

    • What German Military? France has Nukes, Germany has piddly little security forces that are so internationalized in their structure within NATO that they probably don’t even take direct orders from the Chancellor. Germany’s no a permanent member of the Security Council 5 but France is.
       
      France giving Germany more Gold than NY in my opinion is because they need to keep good credit with Frankfurt and German Finance, where London and New York couldn’t care less about German Finance as they have the Petro-Dollar WRC to suck off. The City of London might as well change its domestic currency to USDs as far as I’m concerned … the Sterling is such an impotent relic of the Empire, they only keep it because the UK is the worlds most extensive living museum of feudalism … keeping up appearances.

    • @AGXIIK  your are too kind.  Hogwash is too nice of a descriptor.  Let me say it plainly…  LIAR!

    • CHINA IS FLEXING AND THERE IS NOTHING YOU, ME, OR ANYONE ELSE CAN DO ABOUT IT. http://s3alpha.net/blog/china-starts-to-make-a-power-move-against-the-u-s-dollar

      WITH CHINA NOW OWNING THE FEDERAL RESERVE, CHINA IS GOING TO DO A LITTLE AUDIT TO SET THE RECORD STRAIGHT.

      WHERE IS THE GOLD!!!

    • @WillNotBeASlave
       
      Your ignorance on what currency is and what it does astounds me. So let me educate you. The ability of a nation to own its own currency means that they can borrow money on the international markets, by creating Bonds. Sterling is hardly an “impotent” relic as it still serves the purpose of money creation through Bond Purchases. If the UK did use the dollar as its domestic currency then it would take away the right to raise money on the open markets, inflate or deflate as seen fit, or hedge the pound against a world wide basket of currencies to protect our wealth.
       
      I seen other countries that depend on the dollar for their domestic currency, it isn’t pretty. Especially since the dollar is worth how many pounds again? well last I looked I think it was £0.6 to $1. and as for the Euro? about £0.82…pound is a strong currency.
       
      Yeah, lets all go for the dollar, and be run by a quango on Capital hill. Stupid stupid stupid. Can just imagine waking up one morning and the Fed has decided to actually pump real money into the economy, that would be a hoot for the UK.
       
      So what you really are saying that we should give up our sovereign state, and become the 51st state of a country that is being financially bum rushed by the Chinese, and being Usurped by the Europeans.
       
      Nah, I think I will stay this side of the pond, with the Pound, well my lumps of gold and silver. I don’t trust Fiat, I trust American Fiat even less.
       
       
       

    • @ AG ; @ WNBS
      France Army is very good for some points : military information gathering (human), Special forces for Ex Ops (Zaire, Lebanon, Gabon, Tchad, Côte d’Ivoire, Somalia, Ex yougolavia, kosovo, Mali, Centrafrique now), submarine forces, but also some poor and week points : military transportation (A400M start to be delivered but with huge late), drones (we have to buy to US). And as soon that the operation is medium size we need help, generally from US.
      Nukes are a different matter since we should never use them (that’s the strategy), they are a life insurance against other nuclear countries ONLY.
       
      Concerning why France send gold and US no, I don’t know, may be the answer is as simple that we still have some, and US no. Or it’s a political pressure for something we don’t know

    • @WaitingForSilver >>>Your ignorance on what currency is and what it does astounds me. So let me educate you.
      Ohh … ohhh … here comes another ‘lesson’ from WFS, I can’t wait.
      First of all I said CITY OF LONDON dip sh*t … you know that square mile Country-within-a-Country who your Westminster harlots ACTUALLY work for? The other parts of the UK (UK minus 1sq mile) don’t have hardly any manufacturing left, the North Sea Oil is about to run dry, and as far as your NeoLiberal so-called-Conservatives and NeoLiberal Fabians (yes, they be corporatist you know … Tony Blair case point) are concerned, the rest of the Island is a mere technicality. Yes, the Fractional Reserve Pound is only good to keep the Socialism going outside the walls of The City and to keep Wat Tylers crew on the cool-aid and playing cricket instead of taking down The City!
       
      The problem with MOST of the British is you have no idea what The City Of London Corporation actually represents, and where its true loyalties lie … you need to look into the Isle of Man and Channel Island connections with the Corporatist Square Mile, and that people like Mugabe bank with Barclays. Cayman Islands, Bermuda etc… all a BIG part of the problem that the British people are dead ignorant of, and have no idea how much USD’s are handled through this system, completely unregulated by any US Agency as they deal in EuroDollars.
       
      FACT: More USDs are exchanged daily in The City than anywhere else on Earth. London is Forex Central, Gold & Silver Central, and the bank accounts and securities that this Corporatist Beast and its Tax Havens utilize are mostly USD’s. Overseas USD Banks do Fractionally Reserve USD’s as well you know, not just Fed Members within US Jurisdiction. Wake up!
       
      >>Yeah, lets all go for the dollar, and be run by a quango on Capital hill. Stupid stupid stupid.
      Your problem is that you don’t realize that BOTH the US and UK are run by a Corporatist Entity that USE the USD as their weapon of mass destruction, and The City Of London is a massive part of this. The City is now where all of the USD DERIVATIVE PRODUCTS are created and dealt to the world. Check out what the DTCC is, and also their Subsidiary run out of The City with J.P.Morgan directors at the helm. But you are not interested in the detail because you simply emotionally react against any UK criticism because you are too proud of your own National Ponzi Scheme and want to blame Americans for a problem that was actually BORN IN THE CITY OF LONDON IN 1694! …and it DOES NOT EVEN REPRESENT THE PEOPLE OF BRITAIN! Wake Up!
      The Fed was created by this same Transatlantic Debt-Capital Cabal… but take your ill founded Nationalism and simplicity and go watch a Cricket match while the world burns … and drink too much tea and get Prince Charles teeth!

      >>The ability of a nation to own its own currency means that they can borrow money on the international markets, by creating Bonds.
      Have fun with the Euro then :P seems like both of your Harlot Parties are quite ok with going without the pound..as long as The City Of London gets its ‘Ancient Privileges’ renewed under EU Laws (Which is the only reason any of the UK Harlot Parties would not vote down the Pound just yet… Merkel is insisting ‘NO EXCEPTIONS’ so at least she is good for something, as the truth of the City will be revealed) … as for the rest of the UK, seems like both Harlot Parties couldn’t give a damn; but waive your Union Jack in the breeze and continue to dream of times past.

  2. Well, it appears Mr. Savoie had a few words in this subject earlier this month. Glad to see he’s ‘back in the fray’.

    http://www.silvermarketnewsonline.com/articles/WhoControlsTheGoldStealing_Savoie013114.pdf

  3. AND IT’S GONE!!!!!
     


    • aside from the humor of South Park (I am a fan)  I hope this clip goes down in  history as one of the best indictments of our banking system ever produced.  Don’t get me started on “It’s a Wonderful Life’  
      Soggy sentimental disinfo Federal Reserve  agitprop.
      The only smart person that whole movie was the first person to get her money back when the run on the bank took place.
      Kill the Fed
      Maybe someone could match this clip with some good marching warrior music that we can play when we storm the banker barricades, pour gasoline into the bumkers  and burn the rat bastards out of their nests.

  4. They have to mine the gold first LOL

  5. Poor reporter, it must be like talking to a robot. A money stealing robot. 

  6. great cartoon, sad truth

  7. Such a fucking Pinocchio!
     
    Where are the independent auditors that overlooked the smelting process? I wanna speak to them, see them, ask them who bought them!

  8. ITS ALL ABOUT PERCEPTION. AS LONG AS EVERYONE BELIEVES THAT THEY ARE GETTING THEIR GOLD THEN EVERYTHING IS FINE AND IT SNOT LIKE ANYONE WILL ACTUALLY KNOW IF THEY GOT THE GOLD OR NOT. THEY WILL JUST PUT OUT A PRESS RELEASE STATING THAT THEY IN FACT RECEIVED A SPECIFIC AMOUNT IN THEIR VAULTS EVEN IF THEY DONT. THEY WILL PLAY THE GAME WITH THE U.S AS LONG AS NEEDED.

    • You are correct! It is ALL a big game/play acted out on the world stage. How do I know this? The Bible tells us that the countries of the world wept as she [the USA] was destroyed for they had all been made rich by her and that there would be no one to buy their merchandise.

  9. Hahahhaaahha.
    Only half? by 2020???
    Hahahahahaaahhhaa

    Into the world of finance.http://s3alpha.net/blog/reuters-rbs-suspends-fx-trader-bringing-total-to-three

  10. The ease at which people in a position of trust, leadership, and authority lie is appalling.  It’s a global epidemic.  Something about being a sociopath gravitates them to these positions and once in power they have this radar to sniff out other sociopaths to form their networks.

    • @UglyDog
       
      “The ease at which people in a position of trust, leadership, and authority lie is appalling.”
       
      Yes, it is.  Must be due to all the practice they get.  Becoming a world-class liar isn’t easy.  It requires people to lie when there is no need to lie, just for the practice!  X-[
       

    • Amen to that UglyDog … birds of a feather flock together, and it is a mighty big flock indeed.

  11. “We now consider ourselves bound to the new gold storage plan. But the three years have not yet passed. We shall wait and see. We are on the right track in any case.”
    How can people believe this crap and the Banksters promises. LMAO Keep Stacking

    • @Marchas45
       
      “How can people believe this crap and the Banksters promises.”
       
      I dunno, Charlie.  It’s beyond my understanding.  Seems to me that a bankster’s promise has all the sincerity of a whore’s kiss… but none of the fun!  Although I don’t know any, I would guess that whores are much more honest than banksters.  At least we KNOW what they’re all about.
       

    • @Ed_B
      Nice one! J.P.SuperWhore … no offense to the Whores .. LOL

    • @WillNotBeASlave
       
      Thanks.  Prostitution may be “the oldest profession”, with soldiering next, but banking has to be close after that.  It’s too bad that it has been so utterly corrupted.  Banking seems to be like politics… best left to the local level because the farther these guys get from their neighbors, they more s*** they try to pull on everyone.  If they were local and tried this, their neighbors would yell over the fence at them to knock it off… and they probably would, rather than be ostracized from their community!  lol
       

  12. Its funny, Germany has a navy, I checked:
    http://en.wikipedia.org/wiki/List_of_active_ships_of_the_German_Navy
     
    I suspect they will be in NYC in May 2014 for Fleet Week:
    http://gonyc.about.com/od/holidays/p/fleetweek.htm
     
    Why not just send a few boats downtown and pick up the gold then. 

  13. I could actually hear the evasiveness, arrogance and obsfucation in his replies, just like someone who is ordered to spout this bullshit and expect the masses to believe it. (Lies the whole lot of it)

  14. willnotbeaslave.   copy that on the German military
     what I meant to say was the German FIAT tank forces, armored with 12 inch thick skins of EUROs.  Yeah right
    I’m still think in terms of Panzer tanks and German troops marching around the Maginot Line and taking Paris in 40 days.  I’m still kind of WWII Bliztkrieg thinking having grown up in post WWII history
    Now German has an army of bankers to send in to the fray?
    FIAT to the front of us, FIAT to the rear.
    Into the Valley of Bundesbank rode the 600.
    I wonder what Amshel Mayer De R. would think of that. How would he trade it?
    I’m not sure what the French have.
     Croissant Corp De Guerre?
    The Force De Frappe might have a bit of a blow back if used on Dusseldorf

    • @AGXIIK
       
      “Now German has an army of bankers to send in to the fray?”
       
      Yeah, and probably lawyers too.  It was kinder to send in the Waffen SS back in the 1940s than these rogues today.  :-(
       

    • @AGXIIK
      The French Military still has quite a lot of punch. It wouldn’t take them very long to train the masses of now-unemployed to be jar heads and send them over the border either. 2week crash course would be enough, they’ve all played video games long enough to have semi decent RPG aim. France still has a semi-decent Military Industrial Complex as well, whereas Germany has been completely stripped of any war making capabilities. However if the French wanted to spend some Euros on deficit war spending it would have to ask Frankfurt first … LOL. What irony, European ‘Union’ is a complete farce.
      @Ed_B
      You’re on fire lately :P I would definitely choose the Waffen SS over a squad of Lawyers any day … The Waffen SS would play fair!

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