BY Peter Schiff | February 04 2013 8:37 AM
The financial world was shocked this month by a demand from
Germany's Bundesbank to repatriate a large portion of its gold reserves
held abroad. By 2020, Germany wants 50% of its total gold reserves back
in Frankfurt - including 300 tons from the Federal Reserve. The
Bundesbank's announcement comes just three months after the Fed refused
to submit to an audit of its holdings on Germany's behalf. One cannot
help but wonder if the refusal triggered the demand.
Either way, Germany appears to be waking up to a reality for which central banks around the world have been preparing: the dollar is no longer the world's safe-haven asset and the US government is no longer a trustworthy banker for foreign nations. It looks like their fears are well-grounded, given the Fed's seeming inability to return what is legally Germany's gold in a timely manner. Germany is a developed and powerful nation with the second largest gold reserves in the world. If they can't rely on Washington to keep its promises, who can?
read more : http://www.ibtimes.com/peter-schiff-bernanke-shock-1058708
Either way, Germany appears to be waking up to a reality for which central banks around the world have been preparing: the dollar is no longer the world's safe-haven asset and the US government is no longer a trustworthy banker for foreign nations. It looks like their fears are well-grounded, given the Fed's seeming inability to return what is legally Germany's gold in a timely manner. Germany is a developed and powerful nation with the second largest gold reserves in the world. If they can't rely on Washington to keep its promises, who can?
read more : http://www.ibtimes.com/peter-schiff-bernanke-shock-1058708
Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.
