End times

Whatever happened to trust?

For decades, the Bundesbank has relied on written confirmation of its gold holdings in London, Paris and New York. According to the report from the German audit court, the last time Bundesbank officials physically inspected the central banks gold holdings was, well, never.

(It should be stated that the folks at FT Alphaville quote a report saying an inspection took place in 1979/1980.)

Interestingly enough, the Bundesbank is apparently quite happy with taking the word of other central bankers about the existence, location and size of its gold reserves. It put out the word that it disagrees with the Audit Court, which only has advisory power and cannot force the Bundesbank to follow its recommendations, about the need for inspections.

Nonetheless, the Bundesbank is actually going to follow the recommendation that it verify the gold stocks. It also has plans to ship some 150 tons of gold back to Germany for a more “thorough examination.”

5 Responses to “End times”

  1. ivan November 7, 2012 at 18:03 Permalink

    Just to make sure that Gordo and obummer didn’t ‘accidentally’ sell it and substitute gold painted bricks I assume.

  2. James Higham November 7, 2012 at 18:40 Permalink

    I feel an alloy attack coming on.

  3. Amfortas November 8, 2012 at 02:49 Permalink

    http://politicalcalculations.blogspot.com.au/2012/11/president-obamas-debt-measured-in-gold.html

    November 5, 2012

    President Obama’s Debt, Measured in Gold

    How much gold would the U.S. Treasury have to pay out from the nation’s bullion depository at Fort Knox to fully pay off the national debt of $16.222 trillion (as of 1 November 2012)?

    Quick side note: That figure is some $5.595 trillion higher than the $10.627 trillion it was back on 20 January 2009, when Barack Obama was sworn into office.

    To answer the question, we’ve updated our tool for converting cash into an equivalent value in gold! Now, in addition to figuring out how big a solid gold cube would have to be to correspond to a given amount of gold at current spot market prices, it will now figure out how many standard 20-feet long by 8.5 feet wide by 8.0 feet tall intermodal shipping containers would need to used to transport the gold to all the people to whom the government owes all that government-issued debt!

    What we find when we plug in the numbers as of 1 November 2012 is that the entire national debt of the United States is the equivalent of a solid gold cube that is nearly 80 feet tall by 80 feet long by 80 feet wide. Transporting all that gold would require over 431 of those standard 20-foot long intermodal shipping containers.

  4. Rossa November 8, 2012 at 07:34 Permalink

    Assuming they have any gold left.

    http://www.zerohedge.com/contributed/2012-11-04/emperor-has-no-gold

  5. Amfortas November 8, 2012 at 08:30 Permalink

    Someone, somewhere is gold-bricking.

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