Berlin follows Caracas in goldbug repatriation

Why are they doing it? Because the conspiracists have won.

You may have heard that the Bundesbank is planning to repatriate its gold from the New York Federal Reserve to its own coffers in Germany.

The AP reports:

The Bundesbank plans to bring back to Germany some of its 1,500 tonnes of gold stored in the vaults of the Federal Reserve in New York, and the 450 tonnes stashed with the Bank of France in Paris, reported the German newspaper Handelsblatt.

The central bank declined to comment on the report but will on Wednesday outline a plan to manage the reserves, which total about 3,400 tonnes, or 270,000 gold bars.Most of Germany's massive reserves have been stored abroad since the cold war amid fears of a Soviet invasion.

It's a similar story to one from 2011, when Venezuela announced it would be repatriating up to 211 tonnes of its gold from various vaults around the world. Here's how the FT reported it at the time:

Venezuela would need to transport the gold in several trips, traders said, since the high value of gold means it would be impossible to insure a single aircraft carrying 211 tonnes. It could take about 40 shipments to move the gold back to Caracas, traders estimated.

“It’s going to be quite a task. Logistically, I’m not sure if the central bank realises the magnitude of the task ahead of them,” said one senior gold banker.

It feels — although I can't put my finger on why (no snark intended, for once) — that the tone of the reporting around the Bundesbank's decision has been far more respectful than it was eighteen months ago. Then, it seems to have been taken as a given that the move was a mad power grab on Chavez's part, and all the economics blogs focused on the difficulty of actually carrying out the pledge.

Take Felix Salmon:

It seems to me that Chávez has four main choices here. He can go the FT’s route, and just fly the gold to Caracas while insuring each shipment for its market value. He can go the Spanish route, and try to transport the gold himself, perhaps making use of the Venezuelan navy. He could attempt the mother of all repo transactions. Or he could get clever.

This time, however, the analysis is focusing less on how the transportation will work, and more on patiently analysing the Bundesbank's decisions. Ezra Klein, for instance, writes:

So what the heck is Germany doing? It is a nation with a deep-seated fears about the stability of its currency, no doubt in part the legacy of the Weimar hyperinflation of the early 1920s. The fixation on its gold comes at a time when the world of finance seems in chaos. Germans are being asked to help rescue Greece and other European nations with troubled finances. The European Central Bank has bought bonds from some of those nations, which Germans widely view as tempting enormous inflation. Against that backdrop, it is perhaps not shocking that there is political resonance to the theory that the New York Fed and Banque de France may be putting one over on the Bundesbank and that some of Germany's gold might actually be missing.

This is doubtless partly because transporting up to 1,500 tonnes of gold between New York and Berlin is — probably rightly — seen as less risky than transporting 211 tonnes of gold from London to Venezuela. But it's also because Germany is a Very Serious Country full of Very Serious People and Venezuela is the home of Wacky Hugo.

Germany is repatriating hundreds of tonnes of gold because economic conspiracy theorists have gained a relatively substantial amount of political capital in the country. Venezuela did the same thing in 2011. They are both very silly places.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Forget the flat caps - this is what Labour voters really look like

Young, educated women are more typical than older, working-class men. 

In announcing the snap election, Theresa May set out her desire to create a “more united” country in the aftermath of last year’s referendum. But as the campaign begins, new YouGov analysis of over 12,000 people shows the demographic dividing lines of British voters.

Although every voter is an individual, this data shows how demographics relate to electoral behaviour. These divides will shape the next few weeks – from the seats the parties target to the key messages they use. Over the course of the campaign we will not just be monitoring the “headline” voting intention numbers, but also the many different types of voters that make up the electorate. 

Class: No longer a good predictor of voting behaviour

“Class” used to be central to understanding British politics. The Conservatives, to all intents and purposes, were the party of the middle class and Labour that of the workers. The dividing lines were so notable that you could predict, with a reasonable degree of accuracy, how someone would vote just by knowing their social grade. For example at the 1992 election the Conservatives led Labour amongst ABC1 (middle class) voters by around 30 percentage points, whilst Labour was leading amongst C2DE (working class) voters by around 10 points.

But today, class would tell you little more about a person’s voting intention that looking at their horoscope or reading their palms. As this campaign starts, the Conservatives hold a 22 per cent lead amongst middle class voters and a 17 per cent lead amongst working class ones.

Age: The new dividing line in British politics

In electoral terms, age is the new class. The starkest way to show this is to note that Labour is 19 per cent ahead when it comes to 18-24 year-olds, and the Conservatives are ahead by 49 per cent among the over 65s. Our analysis suggest that the current tipping point – which is to say the age where voters are more likely to favour the Conservatives over Labour – is 34.

In fact, for every 10 years older a voter is, their chance of voting Tory increases by around 8 per cent and the chance of them voting Labour decreases by 6 per cent. This age divide could create further problems for Labour on 8 June. Age is also a big driver of turnout, with older people being far more likely to vote than young people. It’s currently too early to tell the exact impact this could have on the final result.

Gender: The Conservative’s non-existent “women problem”

Before the last election David Cameron was sometimes described as having a “woman problem”. Our research at the time showed this narrative wasn’t quite accurate. While it was true that the Conservativexs were doing slightly better amongst young men than young women, they were also doing slightly better among older women than older men.

However, these two things cancelled each other out meaning that ultimately the Conservatives polled about the same amongst both men and women. Going into the 2017 election women are, if anything, slightly more (three percentage points) likely overall to vote Tory.

Labour has a large gender gap among younger voters. The party receives 42 per cent of the under-40 women’s vote compared to just 32 per cent amongst men of the same age – a gap of nine points. However among older voters this almost disappears completely. When you just look at the over-40s, the gap is just two points – with 21 per cent of women and 19 per cent of men of that age saying they will vote Labour.

With both of the two main now parties performing better amongst women overall, it’s the other parties who are balancing this out by polling better amongst men. Ukip have the support of 2 per cent more men than women, whilst the gender gap is 3 per cent for the Lib Dems. 

Education: The higher the qualification, the higher Labour’s vote share

Alongside age, education has become one of the key electoral demographic dividing lines. We saw it was a huge factor in the EU referendum campaign and, after the last general election, we made sure we accounted for qualifications in our methodology. This election will be no different. While the Conservatives lead amongst all educational groupings, their vote share decrease for every extra qualification a voter has, whilst the Labour and Lib Dem vote share increases.

Amongst those with no formal qualifications, the Conservative lead by 35 per cent. But when it comes to those with a degree, the Tory lead falls to 8 per cent. Education also shapes other parties’ vote shares. Ukip also struggles amongst highly educated voters, polling four times higher amongst those with no formal qualifications compared to those with a degree.

Income: Labour’s tax increase won’t affect many Labour voters

John McDonnell, Labour’s Shadow Chancellor, has already made income part of this campaign by labelling those who earn above £70,000 a year as “rich” and hinting they may face tax rises. One of the reasons for the policy might be that the party has very few votes to lose amongst those in this tax bracket.

Amongst those earning over £70,000 a year, Labour is in third place with just 11 per cent support. The Conservatives pick up 60 per cent of this group’s support and the Lib Dems also perform well, getting almost a fifth (19 per cent) of their votes.

But while the Conservatives are still the party of the rich, Labour is no longer the party of the poor. They are 13 per cent behind amongst those with a personal income of under £20,000 a year, although it is worth noting that this group will also include many retired people who will be poor in terms of income but rich in terms of assets.

Chris Curtis is a politics researcher at YouGov. 

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