Last July I wrote about this same subject. You may recall an interview with William Kaye who said:
Regarding
that gold, which could have had the symbol of the Bundesbank on it when
it arrived in Hong Kong, a leading refiner, one of the biggest in the
world that deals with the People’s Bank of China (PBOC), certified that,
‘Yes, we’ve got gold available that we can deliver. We’ve melted it
down, we’ve tested it. It may have had the Bundesbank symbol on it when
it arrived, but now it’s melted down .9999 (fine) gold.’
That’s
how it works in practice. So the Fed gold, that Americans think is
theirs, is gone. The gold that the Germans have been told they will get
back in 7 years, they’ll never get back because it doesn’t exist
anymore (at the Fed). I own it. The People’s Bank of China owns it.
The Reserve Bank of India owns it. The central bank of Russia owns it.
But the people of Germany (and America) don’t own it.”
Eric King: “So they (the
refiner) have admitted then that the Bundesbank gold, they get those
bars in and they just melt them down?”
Kaye: “What
they’ve done is confirmed that everything I’ve told you is correct.
They get gold (bars) from all over the place, including major central
banks, including the symbol of the central bank on them, and they melt
them down.”
Eric King: “But they’ve confirmed the Western central bank gold is where it comes from in many cases?”
Kaye: “Reading
between the lines, and you don’t have to read too much between the
lines, it’s all a farce. The gold is gone. It’s been hypothecated and
rehypothecated. It’s gone. Not only do the Fed and the U.S. Treasury
not own 8,000+ tons, they probably own nothing.”
Today
Zerohedhedge reports from DieWelt t
hat of the small 37 tons of gold repatriated to Germany only 5 tons of gold were from the New York Fed, the rest came from Paris.
As Welt states, "Konnten
die Amerikaner nicht mehr liefern, weil sie die bei der Federal Reserve
of New York eingelagerten gut 1500 Tonnen längst verscherbelt haben?" Or, in English, did the US sell Germany's gold? Maybe. The official explanation was as follows: "The
Bundesbank explained [the low amount of US gold] by saying that the
transports from Paris are simpler and therefore were able to start
quickly." Additionally, the Bundesbank had the "support" of the
BIS "which has organized more gold shifts already for other central
banks and has appropriate experience - only after months of preparation
and safety could transports start with truck and plane." That would be
the same BIS that in 2011 lent out a record 632 tons of gold...
Going back to the main explanation, we wonder: how exactly is a gold
transport "simpler" because it originates in Paris and not in New York?
Or does the NY Fed gold travel by car along the bottom of the Atlantic,
and is French gold transported by a Vespa scooter out of the country?
Supposedly, there was another reason: "The bullion stored in Paris
already has the elongated shape with beveled edges of the "London Good
Delivery" standard. The bars in the basement of the Fed on the other
hand have a previously common form. They will need to be remelted [to
LGD standard]. And the capacity of smelters are just limited."
So... New York Fed-held gold is not London Good Delivery, and there is a bottleneck in remelting capacity? You don't say...
Furthermore, Welt goes on to "debunk" various "conspiracy websites"
that the reason why the gold is being melted is not to cover up some
shortage (and to scrap serial numbers), but that the gold is exactly the
same gold as before. Finally, to silences all skeptics, the Bundesbank
says that "there is no reason for complaint - the weight and purity of
the gold bars were consistent with the books match." In conclusion, Welt
reports that in 2014 "larger transport volumes" can be expected from
New York: between 30 and 50 tons.
Here we would be remiss to not point out that the reason why the
German people and the Bundesbank have every reason to be skeptical is
that as Zero Hedge reported exclusively in November 2012, before the
Buba's shocking repatriation announcement and was the reason for the
escalation in lack of faith between central banks, it was the Fed and
the Bank of England who in 1968 knowingly sent Germany "bad delivery"
gold. Which is why we have a feeling that the pace of gold
transportation will certainly not accelerate until such time as the
German people much more vocally demand an immediate transit of all their
gold held at the New York Fed: after all, it's there right - surely the
Bundesbank can be trusted to melt the gold (if any exists of course)
into London Good Delivery or whatever format it wants.
Unless of course, the gold isn't there...
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