Cyprus has proven to the western world that soon the SWHTF with respect to the real value of the Euro. I realize it is April and time for April fools jokes, but I don't think the Germans will end up being the fools and waiting 7 years to get thier gold back from the FED and the banks in NYC. That having been said, how long do you think it will be before the Germans DEMAND their first shipment of gold bullion back to Deuche Bank in Frankfurt so that they are in position to defend the Deuche Mark and their banks with their own gold bullion ?
In the meantime, Michael's short of the Euro sure is helping GIM. I wonder which will come first....... GIM trading at $10/share or a headline in the NEW York Times that reads as follows: Sixth Fleet escorts first shipment of gold bullion back to Frankfort.......( In a surprise overnight move, destroyer escorts from the Sixth Fleet entered NY Harbor to provide cover and security for the first billion dollar bullion shipment back to the fatherland )
Remember the good old days when most countries had currency controls? Cyprus is a sad example of when “hot” money is hungrily accepted when there’s no domestic use for it and invested in Greek bonds!
The very cautious Germans seem finally convinced that the Cold War is over, so all the metal it stored in London, Paris and New York in the 50s is now coming back home (but not on ships, on Lufthansa). A prime benefit could be that the removal of all that weight may raise Manhattan island enough to protect against the next Hurricane Sandy!