by John Galt
October 24, 2012 19:30 ET
The story from Channel 7 in Australia has set off alarm bells worldwide:
While this is not a surprise to many of us after the counterfeit Morgan and Peace dollar scheme uncovered last year and the discovery of hollowed out gold plated tungsten filled bars around the world, apparently the trust between the central banks has fallen to the point where the German Bundesbank wants to bring some of its gold home as well as the ability to send auditors in to verify that the holdings physically exist! The story below from Ambrose Evans-Pritchard in the U.K. Telegraph tonight should raise some personal alarm bells about the future of the world economy:
The story contains one section which in this commentators opinion is both stunning and disturbing:
The country has 3,396 tons of gold worth €143bn (£116bn), the world’s second-largest holding after the US. Nearly all of it was shifted to vaults abroad during the Cold War in case of a Soviet attack.
Roughly 66pc is held at the New York Federal Reserve, 21pc at the Bank of England, and 8pc at the Bank of France. The German Court of Auditors told legislators in a redacted report that the gold had “never been verified physically” and ordered the Bundesbank to secure access to the storage sites.
It called for repatriation of 150 tons over the next three years to test the quality and weight of the gold bars. It said Frankfurt has no register of numbered gold bars.
Excuse me? The German central bank has no record or registry of its own gold bars? It has never audited or validated the holdings at the Federal Reserve Bank in New York? Are they insane?
The Federal Reserve has been playing games with the American public for years and the inability of the U.S. Congress to get an accurate accounting and audit of both the U.S. gold holdings and the activities of the Fed should have prompted the Germans, as well as other nations, to ask for an audit many years ago. The most disturbing aspect of this story is the public announcement of the action to be taken. The question I must ask is simple and a warning:
Is Germany actually preparing for the collapse of the United States instead of just repatriating some of their holdings?
My money is on a “yes” answer to this question, especially if President Obama wins re-election.