That’s really interesting. So what you’re saying is, Germany sold more to the states than they bought, but the states were able to “keep” the money by marking off that Germany had so much gold.
And I guess now, Germany is concerned that the states may no longer honour that ledger.
Germany can’t be more concerned than before. I expect that the publicity is a chip in the current trade negotiations that must be happening after Trump announced the tariffs.
How would that work exactly? Trade surplus is just an accounting balance. It’s the difference between what US importers paid for German goods and what German importers paid for US goods. The money went to the companies involved, how would it be used to buy gold for the German state?
It’s mostly a result of Bretton-Woods. Countries with a trade deficit had to pay those with a surplus -mostly in gold. And because shipping gold is expensive, that gold stayed in the USA. The German central bank had 24 tons in 1950 but 4000 tons by 1951.
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That’s really interesting. So what you’re saying is, Germany sold more to the states than they bought, but the states were able to “keep” the money by marking off that Germany had so much gold.
And I guess now, Germany is concerned that the states may no longer honour that ledger.
Germany can’t be more concerned than before. I expect that the publicity is a chip in the current trade negotiations that must be happening after Trump announced the tariffs.
How would that work exactly? Trade surplus is just an accounting balance. It’s the difference between what US importers paid for German goods and what German importers paid for US goods. The money went to the companies involved, how would it be used to buy gold for the German state?
It’s mostly a result of Bretton-Woods. Countries with a trade deficit had to pay those with a surplus -mostly in gold. And because shipping gold is expensive, that gold stayed in the USA. The German central bank had 24 tons in 1950 but 4000 tons by 1951.
Interesting, didn’t know that about Bretton-Woods (or probably forgot), thanks for the info!
Yeah me neither, Wikipedia reminded me, there’s and entire entry to the acquisition of gold by the German government