Speculating on Germany's Past: Soldiers of Fortune

[Kellanved]

During the 1920s, the cash-strapped German government acquired foreign capital through loans. Germany did not pay all of its loans back though, and the remaining bonds could be worth billions today. Now soldiers of fortune, speculators and lawyers are launching a money-hungry onslaught on Germany's central bank.

Every beautifully-designed, hand-made bond is graced with an image of Cologne's famous Cathedral. A heroic Germania keeps a watchful eye over the Rhine River, and the top part of the bond, in squiggly writing, reads "German External Loan 1924."

Ronnie Fulwood, a strawberry farmer from Florida, proudly presents one of these bonds that helped the German Reich inject fresh cash from the New World into its ailing municipalities and companies during the 1920s. But these opulently designed bonds were not exactly what they seemed: Ten years after they were issued, Adolf Hitler halted all interest payments and repayments.

Now the bonds cast their magical spell on speculators and soldiers of fortune, and for a good reason: The loans have to be repaid in "gold coins from the United States, with the standard weight and fineness applicable and valid on Oct. 15, 1924."
...
http://service.spiegel.de/cache/international/spiegel/0,1518,330728,00.html

[amazona]

1. doesn't make sense

If you have not made payments on a loan for a set number of years, then the loan is dead and legally uncollectible.

1924 was a long time ago. No reason to honor these bonds whatsoever unless it is some kind of wealth transfer of I would think very questionable legality.

[tritsofme]

2. There is no German Central Bank IIRC

Its just a branch of the ECB.

[Kellanved]

3. no,

the German Central Bank is still in operation. Central Banks do more than "just" issuing Currency.
http://www.bundesbank.de/index.en.php

[tritsofme]

4. And it does less than most central banks now,

For instance it can no longer set its own monetary policy, as that is set by the ECB.