Germany has been facing mounting pressure to audit its national gold holdings from various political groups. Some leaders also want all of the nationâ€™s gold brought back home, so Germanyâ€™s Bundesbank last week publicly revealed its plans to repatriate half of its gold.
BERLIN(BullionStreet): The Germans are demanding their gold reserves be returned to them, and economist, columnist, radio host and international conference speaker Jerry Robinson says on his Follow the Money Weekly program this week that is bad sign for America.
Robinson explains in the opening part of this week’s FTM Weekly program that the move appears to be the leading edge of a “similar breakdown of global trust in the U.S .government’s ability to handle its finances.”
Robinson explains more fully that Germany has been facing mounting pressure to audit its national gold holdings from various political groups. Some leaders also want all of the nation’s gold brought back home, so Germany’s Bundesbank last week publicly revealed its plans to repatriate half of its gold.
Explained Robinson, “Make no mistake. Germany is making a bold political statement by publicly demanding that the Federal Reserve return a large portion of its gold holdings.
“And remember, Germany is still feeling burnt by Greece. As the Eurozone’s top economy, Germany has become increasingly anxious over its economic role. They cannot afford any more financial surprises. So moving the gold back from the New York Fed seems like a reasonable move to help restore a feeling of control and economic confidence in the country.”
He suggested it’s the beginning of the end of the U.S .dollar as the reserve currency of choice. “There is a wave of fear sweeping the highest levels in Germany today over the safety of its gold holdings that are held abroad. While some European economists claim these fears are irrational In an unusual public move, Germany’s Bundesbank is to repatriate gold reserves held abroad to tighten control and combat currency crises in the future, pulling a chunk of its holdings from New York and all its bullion from Paris. Similar moves occurred in the years preceding the ultimate breakdown of the famed Bretton Woods system in 1971,” he said.
Tom Cloud then joins the podcast for a precious metals market update, offering his insights into the gold, silver and other markets.
Additionally, Jay Peroni talks about his weekly investing strategy, and John Bearss comes to the microphone to talk about retirement and the income needed.
He notes that since the American Taxpayer Relief Act of 2012 was passed so late in the year, it has created a logistical nightmare when it comes to filing your tax returns for the IRS.