Deutsche Bundesbank has just released a progress report on its gold bar repatriation programme for 2015 – “Frankfurt becomes Bundesbank’s largest gold storage location“.
During the calendar year to December 2015, the Bundesbank claims to
have transported 210 tonnes of gold back to Frankfurt, moving circa 110
tonnes from Paris to Frankfurt, and just under 100 tonnes from New York
to Frankfurt. Continue reading »
– Bundesbank Slams ECB’s “Bridge Financing” To Greece (ZeroHedge, June 24, 2015):
The Bundesbank’s Jens Weidmann unleashed a litany of cticisim on the Eurosystem (read the ECB) when he said that Greek banks should not continue to buy the short-term debt of their government, which is then repoed back to the ECB in exchange for precious cash. “The Eurosystem must not provide bridge financing to Greece even in anticipation of later disbursements,” said Weidmann, who also sits on the European Central Bank’s Governing Council, which approves such funding to Greece. “When banks without access to the markets buy debt of a sovereign which is likewise locked out of the market, taking recourse to ELA raises serious monetary financing concerns,” he said in a speech to be delivered at a conference in Frankfurt.
– Bundesbank Blasts Draghi For Breaking Bailout Taboo (ZeroHedge, May 14, 2015):
“The head of Germany’s Bundesbank ripped into the European Central Bank on Thursday, saying emergency funding for Greek banks broke the taboo of financing governments and it was not up to central banks to decide who was or wasn’t in the euro zone,” Reuters reports.
– Germany’s Bundesbank Resumes Gold Repatriation; Transfers 120 Tonnes Of Physical Gold From Paris And NY Fed (ZeroHedge, Jan 19, 2015):
Three weeks ago, when looking at the latest NY Fed data of foreign gold held at the largest central bank gold vault in the world, we showed that in the month of November not only was a near record amount of gold withdrawn from the NY Fed, which at 42 tons was the single biggest monthly outflow at the NY Fed in over a decade…
… but that though the end of November, all of the Netherlands’ 122 tons of gold withdrawals had been fully accounted for. This brought up an interesting question: Continue reading »
– Kudos To Herr Weidmann For Uttering Three Truths In One Speech (David Stockman’s Contra Corner, Oct 17, 2014):
Once in a blue moon officials commit truth in public, but the intrepid leader of Germany’s central bank has delivered a speech which let’s loose of three of them in a single go. Speaking at a conference in Riga, Latvia, Jens Weidmann put the kibosh on QE, low-flation and central bank interference in pricing of risky assets.
These days the Keynesian chorus in favor of policy activism is so boisterous that a succinct statement to the contrary rarely gets through – especially at Rupert Murdoch’s Wall Street yarn factory. But here’s what penetrated even Brian Blackstone’s filters:
“The biggest bottleneck for growth in the euro area is not monetary policy, nor is it the lack of fiscal stimulus: it is the structural barriers that impede competition, innovation and productivity,” he said.
– Draghi The Dictator: “Working With The Germans Is Impossible” (ZeroHedge, Oct 12, 2014):
The war of words between Europe’s unelected monetary-policy dictator Mario Draghi and Germany’s “but it’s us that pays for all this” Bundesbank has been gaining momentum since Jens Weidmann penned his Op-Ed slamming Draghi’s OMT ‘whatever it takes’ as “too close to state financing” in 2012. A week ago, Weidmann stepped up the rhetoric by claiming ECB policy is “hostage to politics” and has lost its indepdendence – warning Draghi’s dictatorial policies were leading Europe down a “dangerous path.” But now, as pressure grows from the Spanish (record unemployment, record bad debt, record low yields), Italian (record unemployment, record debt-to-GDP, record low yields) and French (record unemployment, treaty-busting-deficits, record low yields) for Draghi to monetize more assets, he has struck back in Focus magazine, blasting Weidmann is “impossible” to work with because the Germans “say no to everything.” Dis-union… Continue reading »
H/t reader squodgy:
“Like I said…all banksters are in it together to look after each other.
The crunch is imminent, no doubt.”
There is neither real criticism from German politicians, nor any visible efforts to return German gold held in the US, so it seems that US controls Germany, economic analyst Michael Mross told RT.
In one of its recent reports Bloomberg claimed that Germany decided not to repatriate its gold reserves from the US, instead the Bundesbank issued an official statement that underscores it’s “trust” in its American partners. According to Bloomberg, Germany gave up after repatriating just 5 tons of gold, though earlier it was told that it would get all the German gold back by 2020.
RT: What’s really behind Germany’s efforts to get its gold reserves back?
Michael Mross: These German efforts to get back gold reserves are not really there. They are talking about it but it is only a simple and ridiculous theatre in my opinion. I cannot see any effort to do it. What we have is lack to re-transport or take back, 300 tons before 2020, but also this is ridiculous – last year they took back only 37 tons. At the end of the day, it is to make the public calm, but it is not really an effort to take back the gold. Continue reading »
Aaaand it’s gone …
This, by the way, is post no. 26,000!!!
– Germany Gives Up On Trying To Repatriate Its Gold, Will Leave It In The Fed’s “Safe Hands” (ZeroHedge, June 23, 2014):
Several months after it was revealed that Germany was able to only recover a miserable 5 tons of its gold in all of 2013 (under 10% of the 84 tons it was scheduled to repatriate), Germany appears to have given up entirely in its attempt to recover gold which simply is not there, and as Michael Krieger reports, citing Bloomberg, has decided to keep “it” (by “it” we don’t mean the gold since that clearly has not been at the Fed for decades, but merely the paper promises of ownership: for more see China’s gold rehypothecation scandal and how the unwind works) at the NY Fed after all. That is to say, in the “safe hands” of former Goldmanite Bill Dudley.
Just last week, I published a post titled, Video of the Day – “End the Fed” Rallies are Exploding Throughout Germany, which subsequently went viral. Interestingly, only a few days later we find out that Germany’s very own criminal political class has decided it will continue to store the nation’s gold in New York rather than bring it back home as had been the intention. It’s quite ironic that just as protests against the fascist Federal Reserve are spreading throughout the land, the political class officially decides to keep Germany’s treasure across the Atlantic, in care of none other than The Fed itself. Continue reading »
– The PBOC and Bundesbank Sign Pact to Turn Frankfurt into Yuan Hub….Meanwhile Obama Heads to Saudi Arabia (Liberty Blitzkrieg, March 28, 2014):
I haven’t paid too much attention as of late to agreements between China and other nations intended to expand the use of the yuan (renminbi) internationally, because the near-term implications always seem to be exaggerated by many market commentators. That said, this deal between the People’s Bank of China (PBOC) and Germany’s Bundesbank seems quite significant given the importance of Germany within the global economy generally and the E.U. specifically.
From Bloomberg via BusinessWeek:
Germany’s Bundesbank and the People’s Bank of China agreed to cooperate in the clearing and settling of payments in renminbi, paving the way for Frankfurt to corner a share of the offshore market.
And like with the stolen gold & silver from under the twin towers the Buba gold is already gone before the greatest financial collapse in world history will take place.
– Bundesbank Moves Away From Specific Gold Repatriation Schedule (Liberty Blitzkrieg, Feb 11, 2014):
I am typically hesitant to highlight foreign articles that have been translated by others from languages I can’t comprehend. That said, Koos Jansen of In Gold We Trust, is someone who does great work and so I am running with his latest blog post on German gold repatriation, or a lack thereof.
According to Peter Boehringer, Founder German Precious Metal Society, it appears that the German Bundesbank is backing away from a specific repatriation schedule for the nation’s gold. He sources this claim from a recent article written in the Handelsblatt, titled ”Silence is Golden.” So in other words, the Federal Reserve told them to get lost. Continue reading »
– Bundesbank’s Stunner To Broke Eurozone Nations: First “Bail In” Your Rich Citizens (ZeroHedge, Jan 27, 2014):
In what is sure to be met with cries of derision across the European Union, in line with what the IMF had previously recommended (and we had previously warned as inevitable), the Bundesbank said on Monday that countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help. As Reuters reports, the Bundesbank states, “(A capital levy) corresponds to the principle of national responsibility, according to which tax payers are responsible for their government’s obligations before solidarity of other states is required.” However, they note that they will not support an implementation of a recurrent wealth tax in Germany, saying it would harm growth. We await the refutation (or Draghi’s jawbone solution to this line in the sand.)
Germany’s Bundesbank said on Monday that countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help.
– The FT Goes There: “Demand Physical Gold” As One Day Paper Price Manipulation Will End “Catastrophically” (ZeroHedge, Jan 25, 2014):
What have we done: after a series of reports in late 2012 in which we showed, with no ambiguity, that not only might the Bundesbank’s offshore held gold be severely “diluted” (follow our 2012 exposes on German gold here, here, here, and here), but that on at least one occassion, the Fed and the Bank of England conspired against the Buba in returning subpar quality gold, the Bundesbank shocked everyone in early January 2013 when it announced it would repatriate 300 tons of gold helt in New York and all of its 374 tons of gold held in Paris. But convincing the Bundebsbank to demand delivery was peanuts compared to changing the tune of the Financial Times – that bastion of fiat “money”, and where the word gold is mocked and ridiculed, and those who see the daily improprieties in the gold market as nothing but “conspiracy theorists” – to say the magic words: “Learn from Buba and demand delivery for true price of gold”, adding that “one day the ties that bind this pixelated gold may break, with potentially catastrophic results.”
– Things That Make You Go Hmmm… Like Gold Bullion, Gordon Brown, & A Growling Bundesbank (ZeroHedge, Jan 21, 2014):
2013 was an absolutely seismic year for gold, but, as Grant Williams details in his latest letter, the way in which the tectonic plates shifted has yet to be fully understood. Simply put, the gold in every central bank’s possession around the world is the property of the citizens of that country – not of the incumbent politicians or central bankers. Consequently, if the people want it audited, there shouldn’t be any reason to say no … unless… Williams firmly believes that in the years to come, when we look back at the great game being played in gold, we will pinpoint January 16, 2013, as the day when it all began to unravel – the day the Bundesbank blinked and demanded its gold… Continue reading »
– Germany Has Recovered A Paltry 5 Tons Of Gold From The NY Fed After One Year (ZeroHedge, Jan 19, 2014):
On December 24, we posted an update on Germany’s gold repatriation process: a year after the Bundesbank announced its stunning decision, driven by Zero Hedge revelations, to repatriate 674 tons of gold from the New York Fed and the French Central Bank, it had managed to transfer a paltry 37 tons. This amount represents just 5% of the stated target, and was well below the 84 tons that the Bundesbank would need to transport each year to collect the 674 tons ratably over the 8 year interval between 2013 and 2020. The release of these numbers promptly angered Germans, and led to the rise of numerous allegations that the reason why the transfer is taking so long is that the gold simply is not in the possession of the offshore custodians, having been leased, or worse, sold without any formal or informal announcement. However, what will certainly not help mute “conspiracy theorists” is today’s update from today’s edition of Die Welt, in which we learn that only a tiny 5 tons of gold were sent from the NY Fed. The rest came from Paris.
As Welt states, “Konnten die Amerikaner nicht mehr liefern, weil sie die bei der Federal Reserve of New York eingelagerten gut 1500 Tonnen längst verscherbelt haben?” Or, in English, did the US sell Germany’s gold? Maybe. The official explanation was as follows: “The Bundesbank explained [the low amount of US gold] by saying that the transports from Paris are simpler and therefore were able to start quickly.” Additionally, the Bundesbank had the “support” of the BIS “which has organized more gold shifts already for other central banks and has appropriate experience – only after months of preparation and safety could transports start with truck and plane.” That would be the same BIS that in 2011 lent out a record 632 tons of gold…
In other news:
– “Monkey Business” Surrounding the Repatriation of Germany’s Gold Stored at the NY Federal Reserve Bank. (Global Research, Jan 8, 2014):
As you know, Germany has reported that 37.5 tons were delivered last year, which is about 50 tons shy of what was the announced plan last January and was expected to be delivered over the course of 2013. Peter Boehringer (Germany’s equivalent of GATA’s Chris Powell here in the States) asked many questions of the Bundesbank, the most central being: Why was this gold “recast” before being returned?
As there has not been an audit of Fort Knox since the 1950′s, nor a bar list made public since this German gold was claimed to have been deposited with the Federal Reserve Bank of New York back in the 1950s, this is a can of worms that has already been opened and any “answer” will only lead to more questions.
So why exactly would the gold need to be recast before sending it back?
Never mind the obvious question that we’ve already asked. Why will it take up to eight years to send the Germans their gold?
– Bundesbank Warns China’s Currency “On Its Way To Becoming Global Reserve Currency” (ZeroHedge, July 6, 2013):
Following the most recent shift ‘away’ from a USD-centric world (with the China-Australia direct currency convertibility), it seems the possibility of China’s Yuan as the next global reserve currency is getting closer. The Brits, Germans, and now the Swiss (who just signed a free-trade-agreement with China) are all actively vying to become Europe’s Yuan trading hub as it seems the long line of developments to internationalize the currency over the past two years. As Bundesbank board member Joachim Nagel noted in a speech entitled “Reniminbi as a potential reserve currency” this week, “the Chinese currency is well on its way to becoming one of the future global reserve currencies.” He noted that, although the USD is still the most commonly-used currency for settling trade with China; from virtually zero in 2010, the Yuan is used to settle over 12% of trading transactions now – and is likley to increase further.
Remember, nothing lasts forever: Continue reading »
– Just Say Nein: Bundesbank Rejects OMT (Again) (ZeroHedge, April 25, 2013):
The last few minutes have seen markets taking a decidedly negative stance. Led by FX carry, risk-assets in general are rolling over. Some attributed it to Bernanke waking the devil from his slumber:
- *BERNANKE SAYS VULNERABILITIES REMAIN IN FINANCIAL SYSTEM
but it appears that the decision of Germany’s Top court is the market-moving event:
- *BUNDESBANK REJECTS OMT IN OPINION FOR TOP COURT: HANDELSBLATT
Instantaneously EUR is tumbling, financials are dropping, and the ‘promise’ of Draghi’s tail-risk killer is perhaps being removed. Remember, the high court is due to vote in June on whether the ESM is constitutional under German law and this rejection of ‘OMT’ leaves that decision much more in limbo than the market was expecting.
Via Bloomberg: Continue reading »
– What Do German Central Bankers Know That We Don’t? (Phoenix Capital Research, Jan 16, 2013):
Ben Bernanke and the rest of the US Federal Reserve bet the farm that they could engage in countless monetary interventions, keep interest rates at zero, and print over $2 trillion in new money without damaging the US’s credibility.
They were wrong. Indeed, Germany just fired a major warning shot to the US Federal Reserve. Continue reading »
– Bundesbank Official Statement On Gold Repatriation (ZeroHedge, Jan 16, 2013):
When we first heard about it, we thought Handelsblatt had gotten something very wrong. The implications were just so staggering. Turns out the news was spot on. Here is the official announcement from the Bundesbank, which roundly refutes all the spin the Frankfurt bank spoon-fed the people in October and November when it repeated time after time that there is nothing wrong with keeping German gold in NY and Paris, and on the contrary, it was better for everyone involved.
From the Bundesbank:
By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany. The other half will remain in storage at its partner central banks in New York and London. With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time.
The following table shows the current and the envisaged future allocation of Germany’s gold reserves across the various storage locations: Continue reading »
– It Begins: Bundesbank To Commence Repatriating Gold From New York Fed (ZeroHedge, Jan 14, 2013):
In what could be a watershed moment for the price, provenance, and future of physical gold, not to mention the “stability” of the entire monetary regime based on rock solid, undisputed “faith and credit” in paper money, German Handelsblatt reports in an exclusive that the long suffering German gold, all official 3,396 tons of it, is about to be moved. Specifically, it is about to be partially moved out of the New York Fed, where the majority, or 45% of it is currently stored, as well as the entirety of the 11% of German gold held with the Banque de France, and repatriated back home to Buba in Frankfurt, where just 31% of it is held as of this moment. And while it is one thing for a “crazy, lunatic” dictator such as Hugo Chavez to pull his gold out of the Bank of England, it is something entirely different, and far less dismissible, when the bank with the second most official gold reserves in the world proceeds to formally pull some of its gold from the bank with the most. In brief: this is a momentous development, one which may signify that the regime of mutual assured and very much telegraphed – because if the central banks don’t have faith in one another, why should anyone else? – trust in central banks by other central banks is ending.
Much more importantly, it is being telegraphed as such, with Buba fully aware of just what the consequences of this (first partial, and then full; and certainly full vis-a-vis the nouveau socialist regime of Francois Hollande which will soon hold zero German gold) repatriation will be in a global monetary arena, which is already scraping by on the last traces of faith in a monetary system that is slowly but surely dying but first diluting itself to oblivion. And in simple game theory terms, the first party to defect from the prisoner’s dilemma of all the bulk of global gold being held by the Fed, defects best. Then the second. Then the third. Until, in this particular case, the last central bank to pull its gold from the NY Fed and the other 2 primary depositories of developed world gold, London and Paris, just happens to discover their gold was never there to begin with, and instead served as collateral to paper gold subsequently rehypothecated several hundred times, and whose ultimate ownership deed is long gone.
It would be very ironic, if the Bundesbank, which many had assumed had bent over backwards to accommodate Mario Draghi’s Goldmanesque demands to allow implicit monetization of peripheral nations’ debts has just “returned the favor” by launching the greatest physical gold scramble of all time. Continue reading »
– The Federal Reserve Cartel: Part III: The Roundtable & the Illuminati (Veterans Today, Dec 10, 2012):
According to former British intelligence agent John Coleman’s book, The Committee of 300, the Rothschilds exert political control through the secretive Business Roundtable, which they created in 1909 with the help of Lord Alfred Milner and South African industrialist Cecil Rhodes. The Rhodes Scholarship is granted by Oxford University, while oil industry propagandist Cambridge Energy Research Associates operates out of the Rhodes-supported Cambridge University.
Rhodes founded De Beers and Standard Chartered Bank. According to Gary Allen’s expose, The Rockefeller Files, Milner financed the Russian Bolsheviks on Rothschild’s behalf, with help from Jacob Schiff and Max Warburg.
Tags: Adolf Hitler, Aldous Huxley, Aleister Crowley, Allen Dulles, Annunaki, Assassination, Bank of England, Banking, Benjamin Disraeli, Bertrand Russell, Bible, BP, Bundesbank, Cecil Rhodes, CFR, China, CIA, Council on Foreign Relations, David Icke, developing countries, Dictatorship, Drugs, Economy, Egypt, EU, Europe, Fascism, Fed, Federal Reserve, France, Freemasonry, Global News, Golden Dawn, Government, Guiseppe Mazzini, H. G. Wells, Hapsburgs, Helena Blavatsky, Helena Petrovna Blavatsky, Henry Kissinger, Hong Kong, IG Farben, Illuminati, Israel, Italy, James Paul Warburg, Jaques deMolay, Jerusalem, Jesus, Joseph of Arimathea, King David, King Solomon, Knights of Malta, Knights of St. John, Knights Templar, Mary Magdalene, Merovingians, Middle East, MKULTRA, Muslim Brotherhood, Mystery Schools, Nazi Germany, Nazis, New World Order, Nomura, Palestine, Palestinians, Paul Volcker, Pierre Plantard, Politics, Priory of Sion, Rockefeller, Rosicrucians, Shroud of Turin, Skull & Bones, Spear of Destiny, Sumer, Theosophical Society, Thule Society, Trilateral Commission, U.K., U.S., Zbigniew Brzezinski
– Exclusive: Bank Of England To The Fed: “No Indication Should, Of Course, Be Given To The Bundesbank…” (ZeroHedge, Nov 9, 2012):
Over the past several years, the German people, for a variety of credible reasons, have expressed a pressing desire to have their central bank perform a test, verification, validation or any other assay, of the official German gold inventory, which at 3,395 tonnes is the second highest in the world, second only to the US. We have italicized the word official because this representation is merely on paper: the problem arises because no member of the general population, or even elected individuals, have been given access to observe this gold. The problem is exacerbated when one considers that a majority of the German gold is held offshore, primarily in the vaults of the New York Fed, and at the Bank of England – the two historic centers of central banking activity in the post World War 2 world.
Recently, the topic of German gold resurfaced following the disclosure that early on in the Eurozone creation process, the Bundesbank secretly withdrew two-thirds of its gold, or 940 tons, from London in 2000, leaving just 500 tons with the Bank of England. As we made it very clear, what was most odd about this event, is that the Bundesbank did something it had every right to do fully in the open: i.e., repatriate what belongs to it for any number of its own reasons – after all the German central bank is only accountable to its people (or so the myth goes), in deep secrecy. The question was why it opted for this stealthy transfer.
– Bundesbank’s Official Statment On Where It’s Gold Is (And Isn’t) (ZeroHedge, Oct 27, 2012):
Three days ago, as a result of recent discoveries relating to Germany’s official sovereign gold inventory, we asked a rhetorical question: “Why Did The Bundesbank Secretly Withdraw Two-Thirds Of Its London Gold?” There we presented the chonology of official disclosure regarding the whereabouts of German gold over the past decade, with an emphasis on its reclamation from London-based official vaults to the safety of the motherland, and left off with another open-ended statement that: “what is left unsaid in all of the above is that Germany has done nothing wrong! It simply demanded a reclamation of what is rightfully Germany’s to demand.” Nonetheless, the fact that Germany did this has opened a Pandora’s box of unanswered questions, and even demands that Germany promptly demand delivery all of its gold – the second largest such hoard in the world only after the US – held abroad. Below is the official response by the Bundesbank.
Here is the gist::
We do not have the slightest doubt that our holdings in New York and Paris are also made up of the purest fine gold. We have at our disposal fully documented lists of the bars, and our partner central banks send us every year confirmation not only of the bars’ existence but also of their quality.
We had nothing but the best of experiences with our partners in New York, London and Paris. There was never any doubt about the security of Germany’s gold. In future, we wish to continue to keep gold at international gold trading centres so that, when push comes to shove, we can have it available as a reserve asset as soon as possible. Gold stored in your home safe is not immediately available as collateral in case you need foreign currency.
How about if you need collateral in your own currency, such as the de facto reserve currency of Europe, the DEM? Crickets?
Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system. The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.
And what otherwise would pass as Saturday Humor: Continue reading »
– Is Draghi’s Bond-Buying Dream Circling The Drain As ECB/Bundesbank Lawyer Up? (ZeroHedge, Sep 24, 2012):
Following closely on the heels of our recent (now must read) discussion of the potential illegality of Draghi’s OMT, Reuters is reporting the somewhat stunning news that the ECB and Bundesbank are getting lawyers to check the legality of the new bond-buying program. Germany’s Bild newspaper – via the now ubiquitous unnamed sources – said in-house lawyers were checking both what proportions the program would have to take on and how long it would have to last for it to breach EU treaties (that specifically ban direct financing of state deficits).While Draghi – full of bravado – likely said whatever he felt was necessary at the time to stop the inversion in the Spanish yield curve, it is becoming clearer that, as usual, the premature euphoria (in the complacent belief that central banks can solve every problem with a wave of the magic CTRL-P wand) was misplaced.
Bild goes on to note that this matter could be referred to the European Court of Justice – and the ECB/Buba were preparing for such an event. Of course, since every other rumor in recent months, most of which have originated in credible media, has proven to be a lie, it is likely this is also merely leaked disinformation to push the German case, i.e. anti-Europe.
BERLIN, Sept 25 (Reuters) – The European Central Bank and Germany’s Bundesbank central bank are getting lawyers to check the legality of the ECB’s new bond-buying programme, a German newspaper said on Tuesday.
German tabloid Bild, which did not name its sources, said ECB and Bundesbank in-house lawyers were checking both what proportions the programme would have to take on and how long it would have to last for it to breach EU treaties.
– Bundesbank’s Weidmann Likens Draghi’s OMT To “Devil’s Work” (ZeroHedge, Sep 18, 2012):
Ongoing grand plans to flood the economy market with money have reminded Bundesbank’s Jens Weidmann of the scene in the play Faust – when the devil (Mephistopheles) ‘disguised as a fool’, convinces an emperor to issue large amounts of paper money – which solves the kingdom’s financial problems in the short-term but ends rather badly in rampant inflation.
As The Telegraph notes, without specifically mentioning Mario Draghi’s bond-buying programme, he said: “If a central bank can potentially create unlimited money from nothing, how can it ensure that money is sufficiently scarce to retain its value?” He added: “Yes, this temptation certainly exists, and many in monetary history have succumbed to it,” Mr Weidmann warned.
Although the remarks were in context – Frankfurt is currently marking the 180th anniversary of the death of Goethe – they defy calls by leaders for Mr Weidmann to tone down his criticism of the ECB, particularly at a febrile moment in the crisis. Continue reading »
– Bundesbank Text: Weidmann Reiterated Bond-Buy Criticism (Financial Market News, Sep 6, 2012):
FRANKFURT (MNI) – The following is a statement issued by the Bundesbank on Thursday:
“In the most recent discussions, as before, Bundesbank President Jens Weidmann reiterated his frequently substantiated critical stance towards the purchase of government bonds by the Eurosystem.
He regards such purchases as being tantamount to financing governments by printing banknotes. Monetary policy risks being subjugated to fiscal policy. The intervention purchases must not be permitted to jeopardise the capability of monetary policy to safeguard price stability in the euro area.
If the adopted bond-purchasing programme leads to member states postponing the necessary reforms, this will further undermine confidence in the political leaders’ crisis-resolution capability. This underscores the crucial importance of ensuring both credibility in the promised conditionality and the resolute determination to immediately terminate intervention purchases if the underlying conditionality is no longer assured.
The announced interventions in the government bond market carry the additional danger that the central bank may ultimately redistribute considerable risks among various countries’ taxpayers. Such risk-sharing, however, can be legitimately authorised solely by democratically elected parliaments and governments.”
ECB (and Federal Reserve) banksters are totally in love with the weapon of last resort, the so-called ‘Nuclear Option’ or ‘Quantitative Easing’ (QE).
Quantitative easing = printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!
One man – Jens Weidman – opposing the thieves:
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
– John Maynard Keynes
And now the irresponsible deficit spending and (unlimited) bankster bailouts can go on and on. Who will benefit and who will lose?
“When a country embarks on deficit financing and inflationism you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
– Alan Greenspan
And the ECB’s ‘Hyper Mario’ will have to monetize TRILLIONS in bad debt!!!
Weimar (hyperinflation) all over again?
In less than one year the Eurozone will be much worse off than before.
Only the stock markets will be happy (for a while).
Bundesbank chief Weidmann: He’s obviously in the Governing Council voted against the bond purchase.
Bundesbank-Chef Weidmann: Er hat im EZB-Rat offenbar gegen den Anleihenkauf gestimmt. Geholfen hat es nichts
Google translation: Financial markets cheer the death of the Bundesbank (Welt, Sep 6, 2012):
ECB President Draghi breaks with brazen principles of German monetary policy. The central bank is pumping unlimited money in the bond markets. Stock markets cheer – for Germany begins the nightmare
As it was, the word that everyone had been waiting indefinitely. Which it was used, Mario Draghi, President of the European Central Bank (ECB). Unlimited wants the ECB to buy in the future decision of the Central Council of Euro-bonds with countries to stabilize the ailing financial markets in the monetary union.
Polleit holding gold for the investment of the hour, because unlike central bank liquidity, do not let any physical precious metals increase.
Full original article: Finanzmärkte bejubeln den Tod der Bundesbank (Welt, Sep 6, 2012):
EZB-Präsident Draghi bricht mit ehernen Prinzipien der deutschen Geldpolitik. Die Zentralbank pumpt unbegrenzt Geld in die Bondmärkte. Die Börsen jubeln – für Deutschland beginnt der Albtraum.
Da war es, das Wort, auf das alle gewartet hatten: unbegrenzt. Der es benutzte, war Mario Draghi, der Präsident der Europäischen Zentralbank (EZB). Unbegrenzt will die EZB nach Beschluss des Zentralbank-Rats künftig Staatsanleihen von Euro-Problemländern kaufen, um die schwer angeschlagenen Finanzmärkte der Währungsunion zu stabilisieren.
– Bundesbank’s Weidmann Warns: Debt Monetization Is An Addictive Drug (ZeroHedge Aug 25, 2012):
It is one thing for various anti-Central Planning (and thus central bank) outlets to warn, over 3 years ago, that easy monetary policy is merely an enabling substance, and is addictive as any drug to a dysfunctional political establishment which is more than happy to avoid fiscal prudence if monetary policy is readily available to delay the inevitable day of reckoning when monetizing the debt will no longer work. It is a different matter entirely when the head of the world’s only solvent central bank – the German Bundesbank, which happens to be the biggest guarantor of that other mega hedge funds the ECB, and which of all developed economies also happens to have had the closest recent encounter with hyperinflation (unlike all the “other” theoretical experts who enjoy talking extensively about matters they have zero experience with). In an interview with German Spiegel magazine, Buba head Jens Weidmann, once again has loudly warned what as recently as 2009 very few dared to even think: namely that rampant and gratuitous deficit plugging using central bank debt issuance, and thus explicitly monetizing the debt, “can be addictive as a drug.” Obviously, like any drug overdose, the aftereffects are always fatal.
Bundesbank President Jens Weidmann has strongly criticized of the plans of the European Central Bank to launch a new program to purchase government bonds. “Such a policy is for me too reminiscent of public funding via printing,” Weidmann warns in an interview with SPIEGEL. “In democracies it is parliaments that should decide on such an extensive pooling of risks, and not central banks.”
If you buy the Euro-banks government bonds of individual countries, “the papers end up in the balance sheet of the Eurosystem,” Weidmann warns: “Ultimately, the taxpayers of all other countries pay.” The basic problems are not solved in this way, the Bundesbank president – on the contrary: “The blessing of the central banks would raise persistent monetization demands,” said Weidmann in SPIEGEL. “We should not underestimate the risk that central bank financing can be addictive like a drug.”
– What Happened After Europe’s Last Three Currency “Unions” Collapsed (Zerohedge, Aug 21, 2012):
It may come as a surprise to some of our younger readers, that the Eurozone, and its associated currency, is merely the latest in a long series of failed attempts to create a European currency union and a common currency. Three of the most notable predecessors to the EUR include the Hapsburg Empire, the Soviet Union, and Yugoslavia. Obviously, these no longer exist. Just as obvious, all of these unions, having spent time, energy, money, and effort to change the culture and traditions of member countries and to perpetuate said unions, had no desire, just like Brussels nowadays, to see these unions implode. The question then is: what happened after these multi-nation currency unions fails. VOX kindly answers: “they all ended with disastrous hyperinflation.” Just in case anyone missed it, here it is again from VOX:
In the last century, Europe saw the collapse of three multi-nation currency zones, the Habsburg Empire, the Soviet Union, and Yugoslavia. They all ended in major disasters with hyperinflation. In the Habsburg Empire, Austria and Hungary faced hyperinflation. Yugoslavia experienced hyperinflation twice. In the former Soviet Union, ten out of 15 republics had hyperinflation (e.g. Pasvolsky 1928, Dornbusch 1992, Pleskovic and Sachs 1994, and Åslund 1995).
So… trying to pull infinite demand from the future to the present once the ability to fund said present deferred demand ends, has consequences? Oh yes, Virginia. It does indeed: Continue reading »
– “The Euro Crisis May Last 20 Years” – The European Headlines Are Back (ZeroHedge, Aug 18, 2012):
In Europe, the “no news” vacation for the past month was great news. The news is back… As is Merkel.
- “The Euro Crisis May Last 20 Years” – Welt
The first five years of the global crisis are over, investors flee from complex financial products and into gold, silver and commodities. Experts warn against a false sense of security. “We should not give us the illusion that the crisis will soon be over,” says Patrick Artus of the French bank Natixis. Years of negative developments such as the growing debt, or the de-industrialization of specific sectors should now be reversed. “Such a process takes time.” Arthur looks to get politically and economically unstable savers years. “Investors have to live with depressed markets and considerable fluctuations learn.” In his view, it must not remain in a lost decade. “The euro crisis may also last 20 years,” says Arthur.
- German finmin: no new aid programme for Greece – Reuters
German Finance Minister Wolfgang Schaeuble said on Saturday that there were limits to the aid that could be granted to Greece and said the crisis-stricken country should not expect to be granted another programme.”It is not responsible to throw money into a bottomless pit,” Schaeuble said at a government open day in Berlin. “We cannot create yet another new programme.”
- Euro Countries Plan Strategies to Prevent Break-Up: Sueddeutsche (via Bloomberg)
Euro-currency area countries are evaluating a multitude of reform options, Sueddeutsche Zeitung reports, citing unidentified people with knowledge of the plans.
These are to be whittled down into a coherent strategy in the “coming weeks”. If Greece exits, members will boost plans to support other vulnerable countries. Options include increasing aid to Ireland and Portugal. ECB would consider supporting Italy and Spain through bond purchases. Greece’s new start would be supported by EU funding. These questions will be discussed “in the autumn”.
- Deutsche Bank Among Four Said to Be in U.S. Laundering Probe – Bloomberg
Deutsche Bank AG (DBK) is among four European banks being investigated by U.S. regulators for alleged money-laundering violations, according to an attorney with knowledge of the matter. Federal regulators, including the U.S. Treasury’s Office of Foreign Assets Control, the Federal Reserve, the Justice Department and the New York District Attorney’s office are all involved in the probe of Deutsche Bank and three other European banks, said the attorney, who asked not to be identified because the investigations are confidential.
- German Industry Group Head says No Place for Greece in Eurozone: WiWo (via Bloomberg)
If Greece doesn’t meet IMF and EU requirements, it must leave the euro, Hans-Peter Keitel, president of Germany’s BDI industry federation, says in an interview with Wirtschaftswoche magazine. Keitel previously said Greece must stay in the euro at all costs: WiWo
Keitel says clear progress is being made in combating the euro crisis. The German federal government is not ambitious enough in its savings program, Keitel says.
- German Taxpayer Association Head Criticises ESM: Euro am Sonntag (via Bloomberg)
Rainer Holznagel, head of German taxpayer association, says payment of Spanish bank debt would require 3% VAT increase in Germany, Euro am Sonntag reports, citing interview.
ESM reduces the rights of the German parliament and the independence of nation states, Holznagel says: Euro am Sonntag
- Bundesbank Vice-Head Opposes Schaeuble’s Banking Proposal: WiWo (via Bloomberg)
German Finance Minister Wolfgang Schaeuble’s proposal to separate traditional banks from their investment banking units isn’t possible, Bundesbank Vice- President Sabine Lautenschlaeger tells Wirtschaftswoche magazine.
Both types of banks would still be dependent on market confidence, Lautenschlaeger says. Lautenschlaeger favors an investigation into the relationship between lenders and those banks which trade in unregulated financial products.
- Westerwelle Opposes Relaxing Greek Aid Terms: Tagesspiegel
Relaxation of the agreed on terms for Greek assistance would be misunderstood by countries such as Spain, German Foreign Minister and FDP member Guido Westerwelle told Tagesspiegel am Sonntag in interview.
Spanish prime minister would have difficulty passing reforms in parliament if terms were eased for Greece, Westerwelle says. Westerwelle gives his “solidarity” to the people of Greece. Greek Prime Minister Antonis Samaras to visit Berlin on Friday
And just to prove that Europe’s beggars continue to refuse to get the memo…
- Spain says there must be no limit set on ECB bond buying – RTRS
The European Central Bank must take forceful and unlimited steps to buy sovereign debt to help Spain reduce its refinancing costs and eliminate doubts over the euro zone’s future, Spain’s economy minister said in comments published on Saturday. “There can be no limit set or at least (the ECB) can’t say how much they will use or for how long,” when it buys bonds in the secondary markets, Luis de Guindos told Spanish news agency EFE.
- France Favors Greece Rescue Package, Opposing Germany: Welt (via Bloomberg)
France and southern European nations are in favor of a third rescue package for Greece should it prove necessary, Welt reports, without saying where it got the information. Germany rejects a new rescue package. Germany opposes giving Greece more time to enact cost cuts. Preparations underway for Greece possibly leaving the euro. Main consideration is how to protect other euro crisis countries from the fallout.
Tags: Angela Merkel, Bonds, Bundesbank, Debt, Deutsche Bank, Economy, ESM, EU, Europe, France, Francois Hollande, Germany, Global News, Government, Greece, Guido Westerwelle, Politics, Spain, Wolfgang Schaeuble, Wolfgang Schäuble