gold, page-23371

"The US Department of Treasury owns the US Gold reserves, not the Fed."

What on earth does this have to do with my original post?

For a number years HC gold bugs (probably including @11up) have claimed that the US Government (Treasury or Fed - it doesn't really matter which) wouldn't give Germany its gold back because it didn't have it. The Bundesbank announcement exposes this conspiracy theory for the nonsense it always was.


Note: I am still a little puzzled by the Bundesbank's move in repatriating its bullion. If German banks are going to have problems, it will be funding their US dollar balance sheets. I alway thought that holding reserves with the Fed in New York was a sensible move, because in the past it has been the Fed who has provided the necessary funds in a crisis (2011), and having collateral on the spot would simply the negotiations. One must conclude that the other assets held in NY (such as $86 billion in US Treasuries) will be sufficient for that purpose.