00:00Ever since the 1950s, German gold has been stored in New York,
00:05in the underground vaults of this building, an outpost of the US Federal Reserve.
00:10Its current value is around 160 billion euros.
00:14But in Germany, even among economic experts,
00:17there is growing concern that Donald Trump could seize this treasure.
00:24I no longer rule it out under Donald Trump.
00:27What we've experienced since his election proves that he is prepared to abandon this rules-based world order
00:33and also the rules we had in the transatlantic alliance.
00:37And that's why I think it would be better if we kept the gold here.
00:42The US president has not yet commented on Germany's gold reserves,
00:46but it's the history of the reserves that has experts worried.
00:49The reserves are in part the result of Germany's large trade surpluses with the US.
00:54And in the eyes of Trump, that trade surplus equals theft.
00:58Another point, Trump claims the Germans have spent too little on defense for years.
01:06Here's what he could do.
01:07He says, well, the Germans have invested far less in defense for 10 years than they should have.
01:12We picked up the tab.
01:14So you have an open bill with us.
01:15So let's make it payable now.
01:17After the US, Germany holds the second largest gold reserves in the world.
01:24Approximately one-third of them are stored in New York.
01:28If regardless who owns the gold, the US were to suddenly seize it from its owner,
01:33then New York as a gold trading center would be lost.
01:36A step like this would be an attack on New York as a financial center.
01:40It would have so many disadvantages that I'm convinced no one in the US can afford it.
01:45The president of the Bundesbank, who is the chief guardian of Germany's gold reserves,
01:50has declined to comment on the issue on camera.
01:53But he recently told a German newspaper,
01:56quote,
01:57I have no doubt that our gold is still safely stored at the Fed in New York.
02:02These are currency reserves with a special protected status.
02:06In May, Jerome Powell's term as Fed chair ends.
02:10He still represents a world of reliable rules,
02:14including those regarding foreign gold reserves.
02:17But that could change with Kevin Walsh,
02:19US President Trump's pick for the next Fed chair.
02:22As always, we need to adjust the side before they change the time.
02:24TRANSY
02:28Next Time
02:28Episode 95
02:30New York
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