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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
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