Posted on 01/08/2014 8:38:12 AM PST by dennisw
foreward by JS Kim, Managing Director of SmartKnowledgeU
Here is a recent correspondence from our friend Lars Schall, an independent financial journalist, and the German Central Bank, the Deutsche Bundesbank, regarding the exact whereabouts and specifications of Germany’s national gold reserve. From the correspondence below, it appears that the US Central Bank had already leased out Germany’s gold reserves in prior years and no longer has it, as the gold bars the US Central Bankers returned to Germany last year were clearly not the same ones that Germany originally deposited with them. The questions Mr. Schall’s revelations now beg is (1) if the Banque de France and the Bank of England have Germany’s original gold as well; and (2) if the various Central Bankers are deliberately returning Germany’s gold on a painfully slow timeline because they have already leased out Germany’s gold into the open market in prior years, no longer hold it, and must
therefore scrape together Germany's gold from the open market now.
Below is Mr. Schall’s inquiry to the Deutsche Bundesbank:
December 26, 2013
Dear Ladies and Gentlemen:
I am an independent financial journalist. In connection with the transfer of 37 tons of Bundesbank gold from New York to Germany, I came across the news that the bars were a melted before the transfer. May I kindly ask you for the following information:
Why were the bars melted at all? And why couldn’t that wait until the bars arrived in Frankfurt?
Kind regards,
Lars Schall
[ Is the Fed secretly behind all the “Cash for Gold” shops everywhere? Are they buying up all the gold chains and teeth to remelt into LGD compliant bars to ship to Germany?
Anybody got some more tinfoil? ]
Here is a wild theory...
The Annunaki have returned to “mine” more gold but it is easier to have their agents infiltrate the fed, create money out of thin air and use the cash for gold places to “mine” us of our gold....
But this theory really belongs on kook 2 kook am and not FR.
There are now various tests (speed of sound tests, for example) that can show whether a bar is pure gold or not. Such tests are much easier than having to melt and reform each and every bar.
I suspect that they are melting the gold because the original ones with the German stamps are long gone. The question is, where did they go?
great story!!!!
‘Bars that have the Bundesbank stamp and assay on them’
Meaning that this is Germany’s property.
[ I think this comment was the most interesting -
“...The very fact that repatriation of 300 tons is scheduled to take 7-10 years tells you everything you really need to know. Fed Ex could deliver that to Frankfurt in a single afternoon if you contracted the transport to them...” ]
They contracted through Hansel and Gretel to move one gold bar at a time. In order not to get lost they scrape off a little bit of gold as they travel to leave a trail.... By the time they reach germany not much of the original bar is left... but they have to use what is left of that bar to get back to New York to start the process over again....
H & G Mono Gold Bar Moving Limited Inc. needs to invest in a GPS... they are literally eating their way through gold in order to ensure they don’t get lost...
“Killing people and confiscating their assets? Sounds like Obamacare.”
Sounds like what the Nazis did with the Jews, actually.
Wonder what a Jew-skinned lampshade goes for on E-bay?
Good points there. It does seem to be a valid question to ask (I’m assuming for now they paid for safety, not for a deposit account, which is what would make this a scandal, at least of sorts)
I must admit I return to the point of identity: gold is gold. I don’t see a problem with getting different gold bars back (even for a “safety deposit box” type situation). That’s at worst, shoddy business but it’s not theft, because again, they’re getting their gold back.
The real question would seem to me to be one of timing. Did they have to wait a long time to get the gold back? Is it true it took 7 years to get their gold back? (To me it’s not clear after reading the article how long of a delay there was between a request for the gold and actual delivery). That surely should raise some eyebrows, if true.
That's interesting. I was recently reading about G. Washington's issues, 1777 - 1783, with local currency and British currency. He had to pay some of the Culper spies with British, as they by necessity went behind enemy lines, and needed to blend in. But, also had to deal with British attempts to counterfeit with the purpose of debasing the currency and thwart patriot attempts to keep Washington supplied.
I would insist on the melt to see if the bars were tainted with tungsten.
If I were Bundesbank I would then remelt when I had custody, and restamp.
Because they had to be "stretched" with tungsten cores to cover up the feds theft...
Dear Lars,
It is much easier to coat the tungsten cores that way.
Sincerely....
I'd drill and test every d@mned one of them if I were the Bundesbank.
another problem is that stealing (or refusing to return) another nation’s gold is an “Act Of War...”
just saying...
(2) The NY Fed does not have separate vaults. It's one big vault with separate doors. The German gold has been there for 50 years. It's probably near the back. Gold is heavy. This is probably a LIFO situation.
People and countries hold gold because it is one of the few financial assets that has no counter party risk. The implication is the Fed stored gold for Germany and others, then leased or sold the gold, and has less gold than exist claims on the gold. Fractional reserve gold banking so to speak. If there is a run (Germany wanting their gold back), they have to give them other peoples gold, or go out and purchase gold on the open market.
Would not be surprised to learn if there is very gold, but only IOU’s?
After all we are not on the gold standard anymore, but just the faith we back up our currency.
Actually, in the world of metals investing there are the concepts of "allocated" and "unallocated" storage. Allocated storage means that you get back the physical assets you put in, and if not then the holder is in violation of an agreement.
My new book "When There is No Fema" (http://nofema.com) covers all this (and a ton more) in detail.
Nothing but a big IOU on a 3 x 5 card from the thieves in DC.
Can you imagine the phone calls?
“Hello. Yes, this is Germany. We’d like our gold back.”
“Sorry. We can’t do that.”
“What? Why not?”
“We spent it all on great vacations with lots of women and drugs.”
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