Bitcoin Forum

The title says it all, but just to elaborate:

German citizens may have thought their federal government had gold reserves.

It turns out that was a lie (http://www.silverdoctors.com/german-parliament-denied-access-to-inspect-german-gold-reserves-due-to-lack-of-visiting-rooms/). The Euro is truly a Fiat currency, and not backed by anything – not even the gold they say they have.

Ok, they're now moving some of the gold back (http://www.nytimes.com/2013/01/17/business/global/german-central-bank-to-repatriate-gold-reserves.html?hp&_r=1&) to Germany. I wonder if that means some other nation will now be on the "short end" and lack sufficient gold to back its currency?

Obligatory: I'm not a goldbug (or a silverbug for that matter). I actually think gold is a bad long-term investment. All I'm saying is, those guys who claimed to be holding all that gold? Yeah, they don't have it.

Good thing we don't let them mint new Bitcoins!

Yep and now they are in the process of repatriating it back to their countries.  Germany is already in the process of getting it back.  Now what will be interesting is if those reserves are really available to be sent back and somehow they have been leased out or worse.

Exactly.

What funny business is up when Germany wants some gold from the US?

Is Germany giving the US the equivalent value in Euros? The US was just "holding it for Germany"? Is this a loan repayment?

If the US gold reserves have now been somewhat diminished, what other country is going to be told to take a hike if they want to repatriate theirs?

A lot of questions, and zero accountability. I much prefer Bitcoins.

90% (  600.000 kilo's ,if i'm correct )  netherlands gold is stored in "other nations" of which most is stored in the US. My guess it would be at least 60%. If not 85 or 89%.
90% in other countries. Most of it in America 10% at home ( about 3 billion worth, if i'm correct.)

Gold weighs a shit ton. Thus when you buy gold you try not to move that shit because it weighs a shit ton.

So what we did is we bought all that shit and said: "Yeah, just hold it for us, don't bother sending it, because that shit weighs a shit ton."

Now what with the Tungsten Bar scandals and strange happenings at Fort Knox and all that, we said: "Know what? We don't really like what we're seeing here. Crate up that shit and ship it here, even though it weighs a shit ton."

Which is pretty much what any sensible person would do. I mean, you don't lend DVDs to a guy you know plays frisbee with them either.

You say there is a nation that still backs its currency by gold? Which one is that?

I think Lebanon has still like 50% of the currency backed by gold amazingly enough.

China is expected to announce a large increase in gold reserves and many creditable analyst suspect once they hit 6,000 tonnes, they will unveil an international gold-backed yuan.   This would be a shrewd move on their part.

It is fact Wall Street banks funded both sides.  Hell, Brown Brothers Harriman was actually seized by the United States, under the "Trading with the Enemies" act, for this exact situation.  What you're referring too is the "gold leasing" operation that has taken place for 50 years atleast.  This is how they can use gold stored in vaults to settle other accounts by a country leasing their gold to another.   I think this is a driving force behind why Germany wants more of its gold home so it serves as a signal to the world that they have a majority amount in their own vaults and could prove it.

Can anyone explain this, so I understand it?

How does gold reserve leasing work? One country lends it's gold out to another country so the borrowing country has the gold for a period as backing for loans? Does the lending country still consider it's gold an asset? It smells like fractional gold, and a lot of other bad banking practices!!

You basically have the gist of it.  They carry it on their balance-sheet while leasing it to another country who carries it on their balance-sheet.  It is basically fractionalizing gold for central bank use.

Germany has been asking politely for their gold back for several years now. Since 2010 I think?

Yes, the last Tungsten Bar Scandal before the 2012 Tungsten Bar Scandal was in October 2009.

Now with German Parliament being denied last year to see this supposed Gold we have in the US (due to reasons of "Oh, ehm, there's actually....well...you know....ehm... you've got so much gold here, there's no place to stand, because the room is full of gold... so yeah... you can't look at it. No room for that.... Go home please? Please?") we're picking up the pace a bit.

Hitler Learns German Gold is Tungsten:
http://www.youtube.com/watch?v=PqvDUEVbIbk

Bitcoin; Because when you want to check your balance, the US government doesn't start making excuses...

I wish there was a way to "favorite" or "upvote" posts in a thread. :)

@Richy_T: thanks!

Lol, that's a good frisbee joke, but yea makes sense.