Fed’s Dirty Little Secret: “The Gold Isn’t There (shortened)

SHTF Plan ^ | 1/21/14 | Mac Slavo

[Kartographer]

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.

[DManA]

I don’t trivialize it. These guys run the world. Apparently they think it’s important. Why? I don’t know.

[Jet Jaguar]

Goldbug ping.

[bert]

There are two conditions.

Gold held by the fed to conduct trade
Gold heale by the Treasury...... treasure.

The first is in the vaults in New York.
The latter is in Ft Knox

[9YearLurker]

There has been no assumption of physical assets backing US dollars.

[dennisw]

The Fed is acting exactly like the gold bankers of old.... Fed is doing fractional reserve gold banking which the German situation had brought to light. The Feds gold has been lent out, leased out etc etc

For the Fed to send Germany’s gold back the Fed has to buy physical gold on the open market. It’s own gold bars are all leased out

[Kartographer]

Do your research first.

http://www.newyorkfed.org/aboutthefed/goldvault.html

[Kartographer]

http://www.bloomberg.com/news/2014-01-20/bundesbank-to-recall-30-50-tons-of-gold-from-new-york-in-2014.html