Deutsche Bundesbank
Germany’s gold is in U.S. custody, Bundesbank confirms.
Dear Friend of GATA and Gold:
International journalist Max Keiser has just posted a nine-minute documentary he has done about the British government’s gold sales that were begun in 1999 and now are disparaged as “Brown’s Bottom,” after then-Chancellor, now-Prime Minister Gordon Brown, who decided upon the sales and remains unashamed that they marked the bottom of the gold market. Keiser’s documentary is based largely on an interview with Conservative Party opposition Member of Parliament Phillip Hammond, who is shadow chief secretary of the treasury and who remarks that the British gold sales seem to have been structured precisely to knock the price of gold down rather than to maximize the return to the British government. Hammond also wonders aloud whether “something other than achieving the best price” might have been the objective of the gold sales scheme.
But Keiser’s documentary may be sensational for getting an acknowledgement from the German central bank, the Bundesbank, that Germany’s gold reserves are actually in the custody of the United States. This is a detail the Bundesbank long has denied to others who have inquired and is potentially a matter of great controversy in Germany. It raises the question of whether the German gold reserves are actually intact at all or whether they have been used by the U.S. government as part of its long-time gold price suppression scheme or have been comingled and diminished with the gold reserves of other countries held in the United States.
While Keiser’s documentary does not identify the Bundesbank spokesman who confirmed the transfer of the German gold reserves to New York, it does provide the date and location of the confirmation: March 17, 2008, at Bundesbank headquarters in Frankfurt. The documentary shows that Keiser was there and got the interview.
After his interview at the Bundesbank, Keiser remarks: “The most fascinating thing I’ve heard is that all the gold in Germany is in New York.” Indeed.
Keiser’s documentary is titled “Brown’s Bottom” and you can watch it at
YouTube here: “Brown’s Bottom”
GATA hopes that its German friends will press this issue at all appropriate levels.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
If this is true it strikes me as being one of the biggest stories of my lifetime. Germany has the biggest economy in the EU and the Eurodollar is coordinated among all EU members. They must have acquiesced to this physical transfer. My gut tells me that with the emphasis of a missile shield for
Eastern Europe it may be for security reasons. What else could explain the transfer of such an important asset while subsequently undermining their sovereignty and the integrity of their currency. This is serious stuff.
Concerning gold and where exactly America’s has gone to perhaps this will help and again I quote from Dr. Willard Cantelon’s book THE DAY THE DOLLAR DIES pgs. 44-47
“But even before the international stage was set, Representative Louis T. McFadden {R-Pa.}, Chairman of the Committee on Banking and Currency, made statements on June 10 of 1932 which indicated America’s gold was already moving back to Europe. His statements were recorded in the Congressional Record and pages 140-174 in H.S. Kenan’s book entitled The Federal Reserve Bank. Representative McFadden speaks of those on the other side of the water with a strong banking “fence getting the currency of the Federal Reserve Banks-exchanging that currency for gold and transmitting the gold to the foreign confederates.”
McFadden named the dates on which America’s gold was shipped to Germany:
On April 27, 1932, $750 thousand in gold was sent to Germany. One week later another #300 thousand in gold was shipped to Germany in the same way. In the middle of May of that year, 12 million in gold was shipped to Germany……Almost every week there was a shipment of gold to Germany-these shipments are not made for profit.
Representative McFadden referred also to the comments of Senator Elihu Root:
Long before we wake up from our dreams of prosperity through an inflated currency, our gold which could have kept us from catastrophe will have vanished, and no rate of interest will tempt it to return.
In his report to congress, Louis McFadden asked the question,
“Why should our depositors and our government be forced to finance the munition factories of Germany and Soviet Russia?”
Representative McFadden continued,
Gold was taken from the entrusting American people and was sent to Europe. In the last several months $1,300,000,000 in gold has been sent to Europe-every dollar of that gold once belonged to the people of the Untied States and was unlawfully taken from them.”
As I weiged the words of Louis McFadden and other lawmakers, I also witnessed the fantastic scene of America’s vanishing gold. The record was unbeleivable:
1949-$24,500,000,000
1958-@21,593,000,000
1959-$20,478,483,000
1960-$19,420,997,000
1961-$17,667,587,000
1962-$15,997,647,000
1965-$13,733,000,000
On and on the gold drain went, unabated. Then came the crisis in the spring of 1968. We were living in Europe at that particular time. On March 14, hysterical crowds of people crowded and screamed, and scrambled their ways to the windows of the banks of England and to the bank windows of the sub-basements of Paris to exchange their paper for gold. On one single day, the crude and the cultured, the peer and the peasant, carried off 200 tons of the precious metal. They stored it in secret places of their homes and deposited it in various banks in strongboxes labeled with fictitious names.
On that day Senator Everett Dirkson in conversation with Secretary of the Treasury Fowler, William McChesney Martin, and a dozen other senators said,
“We have reached the bottom of the barrel.”
“It seemed like only yesterday when I spoke on monetary matters when America had 26 billion in gold in her treasuries. By June 30 of 1971, it had been reduced to 10.5 billion.”
Something to think about! Thanks Willard and O you will and are missed!
Jerry