"Legitimate if you can, coerce if you have to, accommodate if you must."Jürgen Habermas, as paraphrased by Robert Johnson
There was some interesting back and forth in the media about Germany's gold being held by the Federal Reserve today. You may read about it here.
The objections to the article by Peter Boehringer seem to be a bit thin in parts. While he stresses the 'independence' of the Bundesbank from the political process, he fails to note that the Buba never wanted to pursue the repatriation of the gold in the first place.
It bowed to public political pressure after the embarrassment of their visit to New York in which they were not permitted to view the gold for 'security reasons.' It seems fairly clear to me that the gold has been committed to the markets by the bullion banks.
Oh yes, it 'looks bad' for the Fed and the Bundesbank, but the real question is 'do they care?' Perhaps it is time for a pressure check.
The US Congress has an approval rating of 7%. Do they seem to care? No, and the reasons why they do not care are not that hard to understand, even though we may not like them. Nothing will change unless the existing equilibrium of the status quo and ruling elite changes, along with their sources of power and money. And the same applies to Germany and the UK.
Nothing of note occurred in the Comex warehouses or deliveries on Friday. But the Comex is becoming a Punch and Judy show.
Nothing of note occurred in the Comex warehouses or deliveries on Friday. But the Comex is becoming a Punch and Judy show.
The activity in the precious metals for this week's Comex July option expiration may be driven by silver which is in an active futures contract month. Gold is not.
"The active contract months for silver will be March, May, July, September and December.""The active contract months for gold will be February, April, June, August and December."
