Hi WANNABE,

I agree with your view. I don't think the gold is there, so the transfer of small amounts over 7 years is part of the balancing act, that the German Central Bank and the New York banks have agreed upon in order to siphon off some of the external pressure from the German public on the one hand and the markets (price setting) on the other hand.

I also think, that the UK has no gold to be send back to Germany. Regarding the French gold, I think (differently from the Turd) that the French do have that gold, but that they only send small quantities back to Germany to be in line with the gold repatriation from the US. I believe in the theory that the Eurozone maintains at least 10.000 tons of gold to keep the Euro someway tied to/expressed in gold, so I have no reason to believe that the French don't have that gold anymore.

Even though the annual quantities to be sent back from the US to Germany are small, it will be hard enough for the US Banks to liberate 50 tons per year from the highly leveraged gold market.

Another question is to what extent the Germans have been negotiating with the Chinese. I expect that the Chinese would be willing to buy European debt paper as long as the Eurozone keeps its 10.000 tons in gold reserves. So if the Eurozone wants to keep the Chinese interested in buying Eurozone debtpaper, they may have to ask the Chinese their opinion on whatever measure they take in relation to gold, whether it concerns the amount of gold kept in Eurozone vaults or whether its concerns the timing of the repatriation. The amount of physical gold kept in the Euzone may be important for the Chinese in terms of Euro debt paper goldbacking. The timing of repatriation has an effect on the price of gold and thus on the remaining time period at which the Chinese can accumulate gold at low price levels.

There are probably much more negotiations going on than we can imagine, because also the oil producers may be concerned about the petro dollar scheme and the access to gold.