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Thread: Germany's gold reserves are held in America

  1. #1
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    Default Germany's gold reserves are held in America

    I just came across an interesting article showing that the gold reserves of Germany, Europe's largest economy, are actually held in America. Germany's gold is in U.S. custody, Bundesbank confirms

    Now I'm economically not very knowledgeable but I wonder if this might have implications for Euro stability in an extreme economic crisis situation.

    Suppose for example the Americans refused to return the gold.

    Would that cause a collapse of the Euro and a return of Weimar inflation?

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    That would actually be a war.

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    Politics.ie Newbie Aj1990's Avatar
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    Why would Germany store its gold in the United States?

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    Quote Originally Posted by Aj1990 View Post
    Why would Germany store its gold in the United States?
    Better security I would guess.

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    Quote Originally Posted by Mr.De-Regulation View Post
    Better security I would guess.
    Couldn't they build a safe in a mountain and store it there?

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    Sheesh

    You obviously never watched any of the Die Hard movies.

    Gold reserves of many nations are held in Reserve in New York and it has been that way for many many years.

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    Politics.ie Member mryoungdan's Avatar
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    Recently the German made noises about moving it. Don't worry about it, there are 10000 nukes guarding it.

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    The article to which I gave a link suggests there is some concern that the German gold reserves have been diminished possibly because the Americans traded it as part of schemes to suppress gold price.

    Thus in an extreme crisis that gold could not be returned to Germany.

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    Quote Originally Posted by odie1kanobe View Post
    Sheesh

    You obviously never watched any of the Die Hard movies.

    Gold reserves of many nations are held in Reserve in New York and it has been that way for many many years.
    Indeed. In fact Die Hard: With A Vengeance has demonstrated that the greatest risk to the New York Federal Reserve is German terrorists. In vans.
    "Unless you are an absolute pacifist, then you acknowledge that there are times when taking up arms is appropriate."
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    Is this something to do with the Bretton Woods agreement and the dollar's role as reserve currency ?

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