Now Germany Will Never Get Its Gold Back From The U.S. Fed

"Today an acclaimed money manager stunned King World News when he said that Germany will never get its gold back from the U.S. Fed, and the reason will surprise KWN readers around the world.  Stephen Leeb went on to elaborate about what is happening behind the scenes that has caused this rift between the U.S. and Germany.

Leeb:  “Right now I am focused on the major economies of the world.  Russian President Vladimir Putin, Chinese President Xi, and German Chancellor Angela Merkel were all together at the World Cup in Brazil.  No matter where you look these three countries are being brought together....

“And today John Kerry turned to China to help with the Iranian negotiations.  Good luck.  China may or may not help, but they will do what is in the interest of China, Russia, and Germany.  That’s the name of the game.

None of them care what the United States wants.  Meanwhile there is still fighting going on in the Ukraine.  So the United States is slowly losing power, losing hegemony.  There was clearly a time when the United States, because of the strength of its dollar, because of the strength of its military, was clearly the dominant power in the world. That’s not true anymore.  Yet the U.S. is still acting like it’s the only game in town.

Right now Russia is challenging the United States in Iraq.  They have been sending in planes and other weapons to support the military.  Iran is also working with Russia to aid Iraq.  The question then becomes:  How long can the United States keep its reserve currency status as it continues to lose power?

As the U.S. continues to lose its influence and reserve currency status, this will send even more money into gold and silver.  Well, China’s photovoltaics program will require 25 percent to 30 percent of the world’s silver by the end of the decade.  Guess what:  We don’t have it.  The world doesn’t have that much additional silver.

Something will have to give, and it will be the price of silver.  That’s just one of the many reasons why silver will be trading well over $100.  That’s why these dips like we have seen over the past couple of days are not going to be as severe as before.  The other problem the manipulators have is there is now a bid in the gold market, and I mean a real bid.

China just reported that they now have $3.99 trillion in reserves.  This is why it’s funny when you keep reading articles from Bloomberg about how much debt the Chinese have and how much money they are spending.  Well, they have $4 trillion in foreign exchange reserves to play with.  This is why the Chinese will continue to accumulate record amounts of physical gold.

The Chinese don’t want to see their reserves lose value, and that’s why they are buying incredibly large quantities of physical gold.  That’s why I’m saying there is a solid bid under this gold market.  I don’t know if the bid is just below $1,300, $1,280 or $1,250, but there is something different going on with the bidding.

So the next step for gold is to break out of its base and head to new all-time highs.  Then it’s really going to be off to the races.  Silver will take care of itself.  You can bet on it as a precious or industrial metal.  So investors are going to make a lot of money in silver.

But gold, that’s the one that you really have to watch because that is the barometer that tells you how much the U.S. is losing its power in the world.  And if I’m right about this bid in the gold market, this decline will be short-lived and it will head to new highs very quickly.

And as far as China goes, we have no idea how much gold they have accumulated.  Nobody knows how much gold they are buying -- not the World Gold Council or anyone else.  The gold is now flowing into China from all directions and they don’t want the West to know how much they are accumulating.

As soon as China, Russia, and Germany have enough gold, they are going to form a new currency bloc.  It will be comprised of yuan, marks, rubles, and gold.  This is why the Fed won’t give Germany any of its gold back.  The U.S. has picked up on this and so the Fed is denying Germany its gold.

The Fed promised to send Germany a mere 300 tons of its 1,436 tons of gold the Fed is supposed to have stored.  Well, only 5 tons have made their way back to Germany because the Fed knows what Germany is up to with the Chinese and the Russians, and so there is no way in hell the Fed is going to give Germany back its gold at this point.  Germany, you may have won the World Cup but you will have to go into the open market if you want your gold back.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/7/16_Now_Germany_Will_Never_Get_Its_Gold_Back_From_The_U.S._Fed.html