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Gold reserve mysteries

Last Wednesday the Bundesbank released a statement to the effect that 300 tonnes of Germany’s gold will be moved from New York and 374 tonnes from Paris. This should be a simple operation: rail or trucks from Paris, and a few military planeloads (or ships) from America – as soon as they have somewhere to store it.

Instead they plan to do it over the next seven years, which is a postponement. This tends to confirm suspicions that the gold does not actually exist. As a side issue, along with the Bundesbank statement is a PDF download with slide number 14 entitled “Storage at the Federal Reserve Bank New York”. It looks like a photomontage rather than real gold, and the come-on is to believe it’s the Bundesbank’s. This gives the game away: the whole exercise is a public relations stunt.

Why hold any gold in New York nowadays? The Soviets are no longer menacing the Fulda Gap. Yes, New York is obviously still a critical trading venue, but not for physical gold – the Bundesbank apparently withdrew 940 tonnes from the Bank of England in 2000, where the physical market is actually located.

The reason this matters is that independent deductive analysis has concluded that the central banks have been supplying the market with physical bullion in order to suppress the price, all of which is either officially denied or goes unanswered. The origin of price suppression actually go back to the 1990s, and was exposed by Frank Veneroso in a paper published in 1998, confirmed by detective work from our own James Turk, and triply confirmed by the evasive responses on this issue given by central banks and the IMF to the Gold Anti-Trust Action Committee (GATA). The public are unaware of this issue because the mainstream media, with the occasional exception, refuses to investigate the subject.

But here is something that joins up a few more dots. We know that Gordon Brown sold half of Britain’s gold at the bottom of the market from 1999-2002. We commonly assume that he was just incompetent. What is not commonly appreciated is that he learned his economics from Ed Balls, the current Shadow Chancellor. As his economics advisor, Balls was the puppet-master and Chancellor Brown the puppet. Ed Balls was also a close friend of Larry Summers, who was US Deputy Secretary of the Treasury from 1995 and then Secretary of the Treasury from 1999 to 2001 – the time of Britain’s gold sales. As Treasury secretary Summers was head of the Exchange Stabilization Fund, the US government’s mechanism for supplying bullion to the markets. In the light of these deeply Keynesian relationships from the mid-1990s, it is unlikely that Brown acted in isolation. More than likely Washington was also supplying the market through swaps and leases that were never recorded as changes of ownership.

The net result is that there is not enough physical gold left in the vault to deliver to Germany, which is why they are stalling for time. What was presented to us last Wednesday was just a desperate attempt to stop the whole issue becoming more public.

This article was previously published at GoldMoney.com.

4 comments to Gold reserve mysteries

  • Paul Marks

    Of course (as we were reminded recently) we should talk about ounces (not “tonnes”) of gold.

    Anyway – yes it does not take seven years to move some gold (how they moving it – by rafts and mules?).

    The suspicion has to be that the New York Fed has used the gold (or some of it) – that it is not really all there.

  • George Doughty

    If any or all of this is true, I would be only slightly surprised. My surprise would be at the sheer audacity of it, not at the contempt for the general populations. Considering Pareto’s principle (80-20 rule),of that small number of our benevolent overlords, 80% may be utterly indifferent and 20% might be downright malevolent. The world has had madmen in charge before. Keep your powder dry.

  • Mr Ed

    There is one way that the gold may turn up for Germany. By a bizarre quirk of the laws of physics and chemistry, in some Federal Reserve and US government vaults the element Gold Au 79 may undergo a particularly rapid radioactive decay pathway, on which there is remarkably little published literature.

    The only stable isotope of gold is Au 197. This undergoes a rapid triple α-decay to lose 3 Helium nuclei, forming Iridium 193 then Rhenium 189 and then Tantalum 185. Tantalum 185 then undergoes a process of neutron emission to become Tantalum 184, followed by electron capture, where a proton ‘grabs’ an electron to become a neutron, turning Tantalum 184 into Tungsten 184, a stable isotope of Tungsten, this also emits a neutrino.

    The Helium gas that the gold decay emits makes the Bundesbankers’ voices go squeaky when they realise that their gold has ‘disappeared’ naturally, and the neutrino is the tiny ‘particle’ of value left, but it cannot readily be observed or captured. All this radiation makes an audit of the Fed’s gold far too dangerous, of course.

    This is, at least in theory, how Tungsten ends up in gold bars and it will allow the central bankers to recover the Bundesbank’s gold.

  • Paul Marks

    Mmmm Mr Ed.

    I believe Mr O. would suggest his razor.

    And in this case that would be that we are deaing with a bunch of crooks.