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The Netherlands, Germany and Gold Stored in US Vaults
The big news in gold is that Germany has failed to get back bullion stored in the US, while the Netherlands just announced they received 122 tons of the precious metal from the New York vaults.
Germany is getting 700 tonnes of its bullion back by 2020. Whenever the US is happy to ship it. Years. No rush.
Meanwhile, the precious metal has been leaving New York without stating who was getting it, until “surprise”, the Netherlands announced yesterday they just brought home all they wanted back from the US, also known as repatriating their gold.
Why did the Netherlands get their bullion back and not Germany? Why did they ask for it now?
It’s a game of pointing to something shiny while quietly pocketing the silverware – or in this case the goldware.
More precisely, it’s the game of Coins and Crowns we’re all feeling.
We, the peasants, get to see the moves after they’re made and are left guessing how many coins there really are, where they are, what shape and purity they are, and who really owns and gets to wear the crowns.
After years of public pressure, German citizens finally found out in 2012 that 1,500 tonnes of their gold was in storage in New York at the US Federal Reserve, 350 tonnes in Paris, and 700 tonnes in London.
There are no gold audits in Germany or the US, and Germany refuses to tell the citizens the serial numbers of their bullion bars.
In 2013, after more pressure, Germany declared they would bring home 700 tonnes of the metal stored in the US by 2020.
They say there’s no worries because they are so confident in New York’s super duper splendid care.
They are BFFs.
Of the 700 tonnes they’re holding onto, the US has returned 37 so far. Great friends.
That’s it. Only 37 of 700 tonnes Germany wants back.
Meanwhile, the Netherlands got back all of the 122 tonnes they wanted. Why did New York give the Netherlands their gold and not return Germany’s?
The German citizens want their gold, but the German government told them they can wait seven years for it.
We show trust in our friendships when we borrow and lend with each other. We both benefit from this kind of closed system, and trust our BFFs not to unravel our knitted gloves, or trade in our yellow pickup truck for a cheaper model painted the same colour.
Plus, we give the mitts and pickup back when our friends ask. Friends don’t play the “make me” game.
Or the “Sure, in seven years.” game either.
Germany is powerful, so if they can’t get their gold maybe something is wrong.
Maybe there is no gold. Maybe Germany and the US are having a spat.
Or a break-up.
Or just maybe … winter is coming and someone thinks they’ll need their gloves and four-wheel drive soon.
The global balance of power is shifting and friendships are being shaken up.
There’s been a change in the world monetary system every fifty years or so, and there’s an economic and social winter every hundred years or so. The Romans called it a Seculum — a greater cycle that spins with a spring, summer, autumn and winter — and lasts about the length of a lifetime.
Each closed system, whether a friendship, family, society, country or business, has the same cycles.
Quantum physics says we can’t know where an individual atom is, but the study of cycles shows we can know where a group in a closed system are.
We can’t stop the cycle, but we can do things to either minimize or play it up. We can make a winter easier to endure, even while the world is experiencing a Great Depression, but we can’t stop it.
If a closed system is well run it can survive the winter. If not prepared, or mismanaged, then it doesn’t fair so well — either suffering, or being invaded within or without.
Summer friends might have different alliances in the winter.
When it gets cold outside you might ask for your gloves back.
But if the forecast is for a blinding months-long blizzard, and your friend wasn’t prepared, then even that BFF might say “How about next spring?” or perhaps even “Make me.”
The economic temperature is dropping, we’re already in a global depression and currency wars, and gold has always been monetary warmth and safety in a societal winter.
Why do you think repatriating is going on?
The Coins and Crowns game players know the forecast.
The world reserve currency has never been diluted to the extent it is now, and when winter arrives it might be absolutely bone chilling.
But before the weather report airs to the masses, the players are preparing.
China, Russia and India have been, and are still, buying gold hand over fist. The Netherlands repatriated a good portion, Germany has a tiny handful back, and Switzerland is voting whether to keep 20% of their reserves in bullion.
Germany said, “No rush. We’re friends. I trust you, you beautiful New York central bankers. Give it back whenever you want. Seven years is just fine.”
The German government didn’t broadcast a problem with repatriating, because it could lead to distrust.
The only thing that holds the fiat currency charade together is confidence that your pals won’t make off with your gloves in a snowstorm.
Germany being denied their gold could have brought on a rush to buy the metal, making the price jump and the bullion scarce before the bigger players were finished filling their vaults for the winter ahead.
The US would lose power and influence, adding another nail to the US world reserve currency coffin. Germany would be seen as being pushed around by the US, and both would have to pay a higher price for the metal.
Instead they told you all is well. and to look over there. Something shiny. Circus clowns. Crazy daisy stock market fun.
The Netherlands, on the other hand, quietly made a deal and got their gold back.
After delivery to Amsterdam, the Netherlands then publicly announced they had repatriated bullion from the New York FED. They used to have 50% of their gold in the New York vaults. Now it’s only 31%.
The Netherlands has 31% of their precious metal at home and 31% in the US, with the rest in Canada and the UK. This makes them conservative without being alarming.
No breaking weather warning yet.
These repatriating moves show we’re in the late autumn of a global seculum. All the players are pointing to the shining stars of the stock exchange, while quietly socking away bullion.
Or, at least trying to get their gloves back before the snow starts falling.
Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
from the album Coins and Crowns
The Gods of the Copybook Headings
words by Rudyard Kipling music by Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
Available on iTunes.