posted on Nov, 10 2012 @ 05:27 PM
Originally posted by HIWATT
Originally posted by Skyfloating
how can that Gold possibly withheld if it belongs to Germany
This is exactly what baffles me about the whole thing. It's THEIRS. Why are they asking PERMISSION for anything??
Just go in there and get it!
(if it's even there)
Seriously, this is so stupid.
As i understand it they don't have a claim on allocated bars. They just have a general claim of a certain amount of gold (against whats stored
This is no different than if a citizen bought into 'paper gold' with a fund. Only the magnitude, and the fact that the fund in question is the Fed.
As 'savvy investors' worry about the possibility that some of the gold funds have oversold gold (sold more claims to the gold than the gold actually
exists) the Germans are worried that what they have claim to doesn't exist.
With little fanfare the Germans already withdrew half the gold they stored with the Bank of England, took the physical back to Germany and verified
its purity. Its not inconceivable they'll do the same with the gold in New York.
The worry by the Fed is that if they make the Germans happy and allocate them numbered bars everybody else will and there isnt enough to go around.
You would have a run on the Federal Reserve. Boom.