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Take physic, pomp

Strange doings, currency wars, and unintended consequences

A recommended long-form piece by Edward Studzinski is on this link, which includes a level-headed discussion of Central Banks’ changing attitudes towards gold. For those who require adult reading material on macro-finance. Excerpt to get you in the mood here.

In January of this year, the Bundesbank announced that in 2014 it repatriated 120 tons of its gold reserves back to Germany, 85 tons from New York and the balance from Paris. Of more interest, IN TOTAL SECRECY, the central bank of the Netherlands repatriated 122 tons of its gold from the New York Federal Reserve, which it announced in November of 2014. The Dutch rationale was explained as part of a currency “Plan B” in the event the Netherlands left the Euro. But it still begs the question as to why two of the strongest economies in Europe would no longer want to leave some of their gold reserves on deposit/storage in New York. And why are Austria and Belgium now considering a similar repatriation of their gold assets from New York?

Whole thing here
Thanks due to reader JS for the headsup. Nice catch, sir.

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