Saturday, June 20, 2009
"Maybe the fact that central banks, banks and governments around the world are acting like monetary idiots explains why gold is shooting up in price; or maybe that it is going up in price explains why there is such a new interest in gold; or maybe it just explains why people are as disrespectful of the dollar, as I am. ... Even more telling, I think, is when [Jim Willie] reported, 'The Germans have demanded all of their gold held in custodial accounts inside the [US] to be returned to German soil.' He admits, 'The story is not public, but details have come to me from a private source close to the action.' But if I know Germans, and I don't, they are not going to sit around waiting for America to steal their gold, if indeed there is any left after the criminally incompetent [Fed] and Treasury encumbered thousands of tonnes of gold by leasing it out. ...Interestingly, he adds, 'The Germans have also given counsel for Dubai to demand all of their gold held in custodial accounts inside London to be returned to Dubai, where a new gold trading center will spring up. In my view, THIS IS THE BIGGEST NEWS FOR GOLD THIS ENTIRE YEAR.'," my emphasis, original capitals, The Mogambo Guru (TMG), 31 May 2009 at http://www.atimes.com/atimes/Global_Economy/KE30Dj01.html.
I agree with TMG. The Germans are apparently following Charles DeGaulle (CD). In 1965 CD "sent the French Navy across the Atlantic to pick up $150-milllion worth of gold", Joel Bowman, 13 November 2007, at: http://www.howestreet.com/articles/index.php?article_id=5079. At $35 per ounce, a price the Treasury said would never increase, that was 4,286,000 ounces, worth $4.2 billion today. I remember. "Gold 'does not change in nature,' DeGaulle announced in that 1965 speech, as if he was telling the world something it didn't already know. '[Gold] can be made either into bars, ingots, or coins ... has no nationality [and] is considered, in all places and at all times, the immutable and fiduciary value par excellence.' ... Back in the 1950s and '60s, world governments could simply stroll up to the [Fed], tap on the 'Gold Window', and swap their unwanted dollars for gold. ... Now the world must accept the dollar and nothing else besides. So far, so good. But the scam will only work up until the moment that it doesn't". Indeed.