Is Fort Knox Empty?

Posted: January 23, 2014 in Economic Freedom, Uncategorized
Tags: , ,

Some of you may recall the issue that arose several years ago regarding gold bouillon being gold plated tungsten. Seems like the Fed’s have emptied out the vaults in typical goldsmith fashion. If you know the history of money and fiat script, I apologize for reitterating the short explanation here.  What happened was people put their gold on deposit with one who had armed men protecting the vault. They were given a receipt for the gold on deposit. Since it was easier to carry paper around, they began to trade the paper allowing the recipient of the paper to go to the gold reservoir and withdraw the amount of gold indicated on the paper receipt. Before long, those issuing the receipts and receiving the gold figured out that they could issue more receipts than there was gold and, voila, we had artificial currency creating inflation until there was a bank run, at which time it became apparent that the amount of “gold” in circulation on paper vastly exceeded the amount of gold actually in existence.

Here is an article regarding the actual gold that is supposed to be in the US vaults and what is happening because Germany requested a fraction of the literal gold they put on deposit with the US back:

Fed’s Dirty Little Secret: “The Gold Isn’t There… Exists as Paper IOU’s”
Read more at http://freedomoutpost.com/2014/01/feds-dirty-little-secret-gold-isnt-exists-paper-ious/#TZxpIOWDqfbu44wU.99

The assumption by global depositors who have entrusted their national savings with the Federal Reserve and US Government has always been that when they request to repatriate their holdings the Fed would simply open the vault, access said assets and ship them back to where they belong.

That’s exactly what Germany expected would happen last year when the country requested that the Federal Reserve return about one-fifth of their gold reserves. But that’s when things got really dicey. The Fed announced that Germany’s gold would be returned… but it would take seven years to get back home.

The response to Germany’s request turned heads all over the world and raised concerns that the Federal Reserve had squandered its gold holdings. But this isn’t the only red flag that was raised. Public pressure reached such levels that the Fed was forced to take steps to maintain confidence in its operations, so it started shipping gold to Germany. Except it turns out that the gold being sent back to the Bundesbank wasn’t actually German gold. It contained none of the original serial numbers, had no hallmarks, and was reportedly just recently melted.

The implications are earth shattering and hit the very core of the problems facing America today. The whole system as it exists is just one big paper IOU.

In this must-watch interview with Future Money Trends, Jefferson Financial CEO Brien Lunden weighs in on Germany’s gold, what is happening at the Fed and what other central banks are doing right now. Brien also shares his thoughts on where the gold market is today, what to expect in coming years as gold supplies tighten up, how mining companies like Brazil Resources are taking advantage of the current environment, and how to profit from gold in coming years.
Read more at http://freedomoutpost.com/2014/01/feds-dirty-little-secret-gold-isnt-exists-paper-ious/#TZxpIOWDqfbu44wU.99

Full transcript and interview)

For the reply to be that it would take seven years for this Gold to be sent back to you, your Gold to be sent back to you, was an obvious admission that the Gold just isn’t there.

Yes, it’s an admission that the German reserves were not still sitting there in the vault in the same form that they were sent there after WWII. They were not the original Central Bank Gold bars, same serial numbers etc. It’s an admission that at some point since then, that Gold has been used for other purposes.

So the dirty little secret here, is that a significant portion of central bank Gold reserves, including the U.S., don’t exist now in their original bar form. In fact, they exist as IOU’s, paper IOU’s, from the very banks that were bailed out in 2008 by the Federal Reserve.

So the Gold isn’t there, and the secret that they’re hiding is that it’s been replaced by IOU’s, and importantly those IOU’s are for Gold that was borrowed at much lower prices.

The Fed, through their recent actions, has essentially admitted that the gold stored in their vaults isn’t really there. Just as our government refuses to be openly transparent to with the American people, the Fed has resisted all calls to open their books (and vaults) to impartial third-party accountants for review.

The whole system, it seems, is now operating on IOU’s. Be it consumers, banks, the Fed or even the US government, all of the US dollars being exchanged are nothing but worthless pieces of paper, because given the lack of transparency at the Fed, we have to assume that the physical assets supposedly backing all this currency have already been spent.

Are we wrong in making this assumption?

If you were to store some emergency funds with a friend who promised to get them back to you whenever you asked, and then you ask and are told it’ll be a few years before he’ll get you the cash, what assumption would you make? That your friend has the money on him right now, or that he’s used it for other purposes and doesn’t really know exactly when he’ll have it available for repayment?

Our entire consumer economy, as well as the credit worthiness of our nation, is built upon confidence. It’s took decades to get America in a position where our country’s monetary issues and services would be trusted by the international community. It’s taken just a few years for that confidence to be lost.

It’s now only a matter of time before our creditors and global investors pull the plug on the whole thing.
Read more at http://freedomoutpost.com/2014/01/feds-dirty-little-secret-gold-isnt-exists-paper-ious/#TZxpIOWDqfbu44wU.99

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