This is a fascinating story from Zero Hedge and dovetails nicely with this earlier post regarding the central bank of China’s plan to convert China’s holdings of U.S. debt into equity in the U.S. Though this was not a debt swap, it is an iconic Manhattan landmark built by David Rockefeller, and an impressive hunk of equity purchased very quietly for a mere $727 Million. Not exceptionally pricey considering its 60 story tower, 2.5 acre plaza, and a six-story base with 5 floors beneath grade.
The building located at 1 Chase Manhattan Plaza also happens to be the former JPMorgan headquarters and houses the largest commercial gold vault in the world. The vault is longer than a football field and anchored in the bedrock with steel rods built literally to withstand an atomic bomb.
Why does China desire a gold vault? China is the biggest gold mining nation and in addition to not selling any of it, they have acquired over 2000 tons in the last 2 years from Hong Kong? Could it be they see a need for housing some of the gold they are accumulating in the banking capitals of the world? China’s gold purchases of late have been as parabolic as our debt accumulation. Don’t forget China’s now up-front desire to have the Yuan become the world reserve currency.
Aloha, Mikie ~just a blogger (fightin’ like a girl)