BILLIONS IN GOLD MISSING FROM U.S. FEDERAL RESERVE
Friday, 10 January 2014 06:25 Original here
January 10, 2014 6:30 AM EST (TRN http://www.TurnerRadioNetwork.com )
-- Billions of dollars in gold from Germany, stored with the U.S.
Federal Reserve, seems to have gone "missing" and Germany wants to know
where it went and why they're being given someone else's gold as
replacement? When Germany demanded to SEE their gold, the Federal
Reserve at first refused, then later allowed the Germans to see only ONE
of NINE vaults allegedly containing German gold, but refused to allow
the Germans to enter that one vault or even touch the gold. The Fed
then told Germany it will take until the year 2020 to get all their gold
back.
For those who are unaware, the world has a system in place for gold
reserves similar to a massive safety deposit box. If, for example, you
put your gold wedding ring in a box at the bank — in this case the
Federal Reserve — you expect to get that exact ring back, not a roughly equal amount of gold.
Years ago, many countries in Europe, worried their national wealth
would be plundered during World War II, stored their gold with the U.S.
Federal Reserve and each of them marked their gold; in this case, it said "Bundesbank, Germany."
Germany has had billions of dollars worth of gold in the Federal
Reserve for decades, but announced last year that it would like at
least a percentage of it returned by 2014, and more in subsequent years.
The initial request generated massive international speculation, but
the actual return so far has been less publicized.
A report from Zero Hedge indicates the initial gold returned to Germany by the United States “didn’t have the Bundesbank stamp on it.” The
Federal Reserve reportedly said it had to melt down the gold for
transport. This doesn't make any sense since the gold was transported
TO the federal reserve in its original shape, size and weight, without
any difficulty. Why would modern transport systems be unable to ship it
back that way?
Another explanation could be that the Federal Reserve has already
sold it off, lent it out or used it as collateral for its own borrowing,
and is now scrambling to replace it.
if this is true, it could bring about an unprecedented financial
crash on a global scale; potentially cataclysmic. To give readers an
idea of how serious this is, remember back to the 2008 “Sub-prime
crisis." Imagine that crash on a global scale, and instead of houses
it’s gold. People who lent money to the federal reserve THINKING it had
gold as collateral, will find the FED has no collateral. UH OH!
Suddenly, the world views federal reserve notes (you know, our cash
money) as worthless.
RESERVE BANK OF INDIA SOUNDED THE WARNING MONTHS AGO
The people of India
have a voracious appetite for gold. One of the options that was looked
at very closely by the Reserve Bank of India was actually similar to
what goes on at the Commodities Exchange (Comex). In other words,
luring Indians into buying paper gold, and as a result, it would
deflect interest that would otherwise be routed to physical gold.
"Paper gold" is a contract, with a set expiration date, that promises
the buyer to deliver a fixed amount of metal gold at a certain price.
This paper gold contract is used to speculate in gold without having to
cough-up the actual cash to take delivery of the gold. Buyers of these
paper gold contracts pay a "premium" over the existing gold price, as
the cost to have the contract. If the buyer exercises the contract
before it expires - which few of them do - they must pay the actual cost
of the gold delivered under that contract. If the contract expires and
the buyer does not exercise his right to take delivery, the "premium"
paid goes into the pocket of whoever sold the paper gold contract.
There is a Chapter V in the Reserve Bank of India
report titled, ‘Dematerialization Of Gold.’ And as you get to the
chart under gold-backed instruments in global trends, what you see is a
chart that was excerpted right out of CPM’s book from 2011. CPM Group is a commodities market research, consulting, financial advisory, and asset management firm.
What the chart shows is the paper claims on gold being approximately
93 to 1 vs physical gold that is available in the same year. This is
an astonishing admission.
It is also admitted in that 2011 report that there was 11.2873 billion ounces of gold as having traded, against an available physical market supply of 120.8 million ounces. Now, to save people from having to do the arithmetic, that’s a ratio of over 93 to 1.
Put simply, anyone who
"owns" several ounces of gold through a paper contract which
"promises" to deliver physical gold at a specific price -- if physical
delivery is demanded -- is one of 93 people in line for the same several ounces of gold.
If all 93 people demanded delivery, ONE of those 93 people would get
it; the other 92 won't because the paper gold commodities markets sold
93 contracts for every 1 contract they could actually deliver on! They
gambled that 93 people would not all want the gold delivered and as
their payoff on such a gamble, they profited from premiums on the 93
paper gold contracts. Put bluntly, the paper gold market is a charade.
COMEX GOLD REPORT CONFIRMS THE FACTS
On January 8, 2014, the COMEX Warehouse published a disclosure chart
which confirms the facts of this story. That chart, shown below, proves
that there are 79.972 "owners" for every single ounce of gold in the
COMEX warehouse. They admit they've sold the same ounces of gold to 79
different people! This is a system that cannot sustain itself once
folks start demanding physical possession of gold; and they'll do that
when they realize the paper money isn't worth the paper it's printed
on. If all those people start demanding "their" gold, COMEX collapses!
LONDON BULLION MARKET ASSOCIATION IN SAME CHARADE
The same paper charade going on in the COMEX is happening at the London Bullion Market Association (LBMA) which describes itself as "The
international trade association that represents the market for gold
and silver bullion, centred in London but has a global client base,
including the majority of the central banks that hold gold, private sector investors, mining companies, producers, refiners and fabricators. On their web site, the LBMA freely admits "Since
the passage of the Financial Services and Markets Act 2000, spot and
forward trading in bullion in the UK have not been regulated
activities." NOT REGULATED!
Egon von Greyerz, founder of
Matterhorn Asset Management
of Zurich, Switzerland, said the LBMA will eventually collapse. "The
simple fact is that the LBMA collapse is coming no matter how many
distractions that various agents of the bullion banks, or the mainstream
media might seek to create. And as that collapse of the paper gold
fraud begins to take place, that is the moment in time when you will see
what I have warned about for some time now in the gold market, and
that is the beginning of the greatest short squeeze in modern financial
history.”
According to Andrew McGuire of
Coghlan Capitol
as early as last April, “Entities went to the LBMA and said, ‘We don’t
trust anybody anymore. We want our physical metal.’ They were told
they would be
cash settled instead
by a bullion bank. The Western governments have been trying to plug
holes, and the reason for it has to do with the default that was taking
place at the LBMA."
These facts indicate the U.S. federal reserve is broke; has used
other countries' gold to cover-up what's been going on at the LBMA and
perhaps even in the COMEX, and as a result, the United States and the
entire western financial system is on the brink of sudden, complete,
total collapse because the gold that everyone thought they had, is gone.
Nothing is backing their paper currency.
Want proof? Those of you who own gold via paper contract, try asking
for the metal to be delivered. One of you will get it; 92 others will
be forced to accept paper money instead; the same paper money that is
heading toward worthlessness.
One more point: Paper money is "legal tender for all debts, public
and private." So even though you have a contract that "promises" to
deliver physical metal gold to you, the fact that "legal tender" exists
means you are REQUIRED to accept that legal tender in lieu of the gold;
you can't refuse the paper money! You'll be left with paper money that
isn't worth anything.
