Buba Gold Fantasies
Those of us who follow the gold blogosphere, even sporadically, have now been subjected to a plethora of wild imaginings concerning the Deutsches Bundesbank’s (Buba’s) ‘repatriation’ of German gold from the NY Fed (and to a markedly lessor extent, noise concerning ‘repatriation’ from Paris).
You know what I mean: ‘The Fed refuses to let Germany have their gold back!’ ‘All 300 tonnes could have been flown to Frankfurt in days (or weeks at least).’ ‘That didn’t happen because the Fed doesn’t have the German gold anymore – the Fed sold, leased, or swapped (or hypothecated, or even re-hypothecated) it all long ago without telling the Bundesbank, and now cannot get it back (or at least not readily or easily or right away).’ ‘One can therefore definitely conclude that the all the Fed’s gold is also long gone, just like all the US Treasury gold supposedly held at Fort Knox or West Point.’. This list of unwarranted fantasies, declared stridently as absolute fact, could be elaborated, but that short list should suffice to remind you of what I am talking about.
Admittedly, neither the Bundesbank nor the New York Fed have been completely forthcoming about revealing what has transpired between them, and why they have now agreed to a seven year timetable to move 300 tonnes of gold from New York to Frankfurt (there was an earlier schedule of 150 tonnes by 2015), leaving it up to others to freely imagine why that could possibly be. Since seemingly everyone else feels free to make up all kinds of bizarre things in order to ‘explain’ what, according to their fevered imaginations, has been going on, why not me, too?