Simon Johnson — Germany’s Gold Delusion

Mike Norman Economics 2013-07-07

Germany’s gold is on the move. For the first time since official gold transactions became more transparent, the Bundesbank has given notice that a significant portion of its holdings will be transferred home from France and the United States. Ostensibly, this is just a matter of monetary housekeeping. But why now? One possibility is that German policymakers believe that we are approaching an every-country-for-itself scenario – and only gold guarded by one’s own police is worth anything....
Project Syndicate Germany’s Gold Delusion Simon Johnson, former Chief Economist of the IMF, Professor at MIT Sloan, and Senior Fellow at the Peterson Institute for International Economics