Tuesday, January 22, 2013

Where is the Key to the Gold Vault?

The Emperor's New Clothes
Gold-plated tungsten has turned up all over the world, and a top German gold expert found fake gold bars imprinted with official U.S. markings. This added to the reasons why many Germans also lost confidence in the Fed (HERE, HERE, HERE and HERE). The notion rapidly spread when the Fed refused to allow German officials to inspect the 1.536 metric tons of German gold stored in the U.S. since the Cold War.   

In January 2013 the German Bundesbank demanded that the U.S. kindly return the modest amount of 300 tons. It should be moved out of the New York Fed, and repatriated back to Frankfurt, where currently only 31% of Germany's gold is deposited. The rest is supposed to be in New York, Paris and London
. Fine so far. Now the news is that it will take the Fed seven years to procure Germany's 300 tons of gold. Right on. Yes, this is the same Fed that, in its own words, holds some "216 million troy ounces of gold" or some 6720 tons, in its vault 80 feet below Manhattan's ground level. Will the Fed ever pay any  interests? Of course not. Consider it a tribute to Wall Street's Global Empire.

Pimco CEO Bill Gross comments: "When the Fed writes $85 billion of checks to buy Treasuries and mortgages every month, they really have nothing in the “bank” to back them. Supposedly they own a few billion dollars of “gold certificates” that represent a fairy-tale claim on Ft. Knox’s secret stash, but there’s essentially nothing there but trust ... Amazing!" See also HERE & HERE & HERE & HERE