Where is the German gold bullion reserves?

March 9, 2012 by · Leave a Comment
Filed under: Global News 

Bombshell of a story.  Looks like the German Central Bank (Bundesbank) has not audited their gold reserve since 2007, which I will add is when the financial crisis began.   The article is a little hard to follow because I had to rely on Google Translate to bring it from German to English.   The element that stood out in this article is the fact is that the Federal Reserve Bank of New York does not allow any photos or tours of the facility, but they do send you a “picture” of your gold.  That picture only goes the Central Bank.

Being the huge lapse in auditing, a financial meltdown, I can understand why some of the people would be upset.  Psychologically is must mean a lot to the German people to know that their reserve wealth is safe and accounted for.   Especially because they have basically been underwriting this whole EU bailout.   I think we will see the rectified in the next few weeks.  Most likely just an oversight, hopefully.

Text from Google Translate Link:

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German finance minister pressuring banks to provide more lending

July 13, 2009 by · Leave a Comment
Filed under: Global News 

It is not a good sign to see pressure being put on to banks to provide lending in a economic environment that does not support such an expansion of credit.  This is what will lead to more defaults if the income is not there to support the debt service on this additional lending activity.  Another issue you will have to deal with and the German population is familiar with…inflation. Steinbrueck mention that banks have a responsibility for the overall economy, I would hope that includes price stability and growth, not just growth.

News (Reuters):

Finance Minister Peer Steinbrueck has written to German bankers pressing them to supply the economy with ample liquidity, raising pressure on lenders to increase the flow of funds to businesses.

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U.S. Stock Futures Decline After Global Credit Crunch Deepens

October 5, 2008 by · Leave a Comment
Filed under: Global News 

No surprise that this is now a global crisis, not a U.S. based credit crisis.  Looks like Germany and the national banks has put together a bailout package that equals to almost 10% of our own bank bailout package at $68 billion dollars.  This is for the commercial property lender Hypo, which reported a 95 percent plunge in second-quarter profit because of debt-related writedowns.  I am adding a Global News section to continue my coverage into the global markets.

News:

U.S. stock-index futures dropped as Hypo Real Estate Holding AG required a rescue by the German government, deepening concern that credit-market losses will worsen a global economic slowdown.

Germany and the nation’s banks and insurers agreed on a 50 billion euro ($68 billion) package for commercial property lender Hypo, which reported a 95 percent plunge in second-quarter profit because of debt-related writedowns. BNP Paribas SA, France’s biggest lender, will pay 8.25 billion euros to purchase Fortis’s Belgium bank after a government bailout failed.

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U.S. Losing Finance Superpower Status according German finance minister

September 25, 2008 by · Leave a Comment
Filed under: Economic News 

I would agree, you don’t keep your world currency reserve status by bailing out bad financial institutions, runs huge budget deficits, run expensive wars, run a economy that 70% of GDP is based on consumption and to top it off our biggest single export is U.S. dollars. We need to enact the “No Congressmen Left Behind” program to give them a “Money 101” course so we don’t have this panic on subjects that they are not familiar with. You don’t need P.H.D to understand the basics, you do however need one to do the day to day functions of a economy of any national size. We will continue to see this type of talk until it becomes a reality and at that point it is almost impossible to get that back without major monetary reform. There is a great book called “The Theory of Foreign Exchange” and they have a section about financial crisis and what makes one and what steps have to be taken to reform the currency and I believe it applies more than ever on our situation.

News Release:

German Finance Minister Peer Steinbrueck said the U.S. will lose its position as the world’s undisputed financial “superpower” and called for a ban on speculative short-selling to help restore the global economy.

Steinbrueck, in a speech on the financial-market crisis to lawmakers in Berlin today, set out an eight-point plan urging greater regulation and larger capital reserves for banks. He championed the German banking system over its U.S. counterpart, dismissing the `Anglo-Saxon” model as having “an exaggerated fixation on returns.”

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