“We are on the threshold of currency wars”..Germany repatriating Gold from New York & Paris “In case of a Currency Crisis”

aleksei-ulyukayev.n

http://rt.com/business/news/currency-war-ulyukaev-japan-104/

In an effort to keep domestic currencies artificially low and competitive in global markets the world economies can end up with another wave of currency wars, warns the First Deputy Head of the Central Bank of Russia Aleksey Ulyukaev.

“We are now on the threshold of a very serious, I think, confrontational action, which is called, maybe excessively emotionally, “currency wars,” Ulyukaev said on Wednesday.

Japan is showing an aggressive monetary policy expansion, with the yen having lost 11% since December when Abe’s Liberal Democratic Party won the general election. Lowering the yen’s value is good for the Japanese economy, as it allows domestic companies to receive bigger export revenues, but it hits developing economies, warns Anna Bodrova of Investcafe.

http://www.forbes.com/sites/afontevecchia/2013/01/16/germany-repatriating-gold-from-ny-paris-in-case-of-a-currency-crisis/

The move appears a response to public outrage over the Bundesbank’s oversight of its gold holdings.  Last October, federal auditors questioned the Bundesbank surveillance of its gold bars, asking whether officials had actually verified the existence of their holdings.  The Bundesbank insisted this was an independent decision and that there was “no loss of confidence” in fellow central banks, the spokesman told Forbes.  Yet the timing, and the fact that only VenezuelaIran, and Libya have recently repatriated gold, and in their case over fears of asset seizures, casts doubt over the Bundesbank’s move.

While Thiele didn’t speak of how it would be transported for security reasons, the gold coming from the U.S. will probably have to be flown in.  This will probably have to be done in 3 to 5 ton shipments, the maximum insurance companies will cover, meaning it will take between 60 and 100 flights.  In 2011, Venezuela’s Hugo Chavez brought 160 tons of gold from New York to Caracas at an estimated cost of $9 million.  Gold from France could easily be moved by truck.

It was unclear whether the move would have a direct impact on gold prices, which were down 0.2% to $1,679.90 an ounce by 12:47 PM in New York.  Major gold miners were all in the red on Wednesday, with Goldcorp, Barrick Gold, Freeport McMoran and Newmont Mining all down between 0.7% and 1.5%, while silver slid 0.4% to $31.40.

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very significant..i blogged on this back in october..as the russian says its coming..the germans announce why they are grabbing all their gold back..a huge amount to..60-100 plane trips worth..lets hope the tungsten ones have been shifted to another countries ledger sheet eh? :)

401

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~ by seeker401 on January 18, 2013.

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