The German Central Bank was planning to repatriate its gold reserves from the United States and France. They moved it out of Germany because of the Cold War, right, the threat the Russians would take it? It’s just the same reason most of the gold is sitting in the basement of the New York Fed. In World War II, Europeans moved their gold over here to avoid the war, and now they’re moving back.
Ultimately, it was agreed upon that Germany would only actually take a fraction of its holdings back. Why the sudden change of heart? Glenn opened Wednesday’s Glenn Beck Program with a disturbing report about what really happened when the Germany Central Bank decided to repatriate its gold reserves:
“The reports that are coming out now is that the gold we sent them over the holidays was melted down and recast. This is important. It begs the question why? I can think of several reasons, but none of them really make sense, except the situation is worse than even I thought it was when I talked to you about rehypothecation.
I think there’s a good chance that there’s not a lot of that gold left. But how did that happen? I mean, do we have another Sandy Berger loose, you know, stashing gold bricks in his socks? No, the answer is partially rehypothecation.”