Thursday, July 11, 2013

Fort Knox Gold is Gone

Although it is not news to long time readers of The American Chronicle, the knowledge of Fort Knox’s divestiture of gold by US politicians is going main stream. Well connected hedge fund manager William Kaye of Hong Kong told King World News this week that the US Treasury’s claims of owning 8000 plus tons of gold is an outright lie.
We reported earlier Jim Willie’s shocking revelation that Fort Knox is perhaps the world’s largest repository of nerve gas, its gold having long been stolen by senior government officials in order to suppress the price of gold and to line their pockets.
But the chorus of dissent among official Washington’s legion of liars grows louder. Kaye relayed the word from his many contacts in the gold world that much so-called sovereign gold has come through one of the world’s largest gold refiners to be melted down for transference to Asian powers.
One would think that the Germans would have learned the hard way that most politicians are liars, but one would be grossly mistaken. The recent demands by the Bonn government for return of its gold are laughable. Not only have the bullion banks, most notably JPMorgan Chase, told the Germans they would have to wait 7 years for a small fraction of their gold, but it was melted down long ago, with no hope of ever recovering it.
Many schemes for stealing the barbarous relic have been implemented by politicians since the 1960s when the London Gold Pool was established to suppress the price of gold. The most outrageous scheme involved Bill Clinton and Robert Rubin, then Secretary of the Treasury. Clinton came into office vowing to manage finances like a Republican, keeping an eye on bond prices as an indicator of inflationary pressures.
This provided cover for Wall Street vulture Rubin to take over the gold supply. The duo shipped out massive quantities of gold plated tungsten as the supply of pure, or even 90% gold stolen by Roosevelt under scaremongering during the Depression, was inadequate to quell the price.
The US Treasury used the mechanism of gold leasing to its client banks such as Goldman Sachs and JPMorgan Chase. It is much like a repo loan in that the Treasury would lend the gold in exchange for cash, but without having any term associated with it. Since officially the Treasury was loaning, rather than selling the gold, it could continue to claim it as an asset on its balance sheet.
But in fact, it really wasn’t the Treasury’s gold to lease since the Treasury had turned over its gold to the private banking cartel of the Federal Reserve. Thus the Federal Reserve supplied the physical gold to its member bullion banks who in turn sold the gold at a tidy profit on the open market, usually overseas in Asia.
Zero Hedge has reported recently that JPMorgan Chase’s gold supplies are at their lowest levels on record, below 770,000 ounces, and accounts for 80% of physical gold deliveries.
Why the run on gold when everyone knows that it is barbarous relic? National governments have stolen so much gold from allocated gold accounts and safety deposit boxes that no one trusts the home of the Whale Trade to safe keep his gold. If the bank can steal Germany’s gold, what barrier is there to keep it from stealing a small time depositor?
The Swiss National Bank, among many others, has been the leading thief of Swiss held gold. Although very little publicity has been raised about the thefts, large lawsuits are being pressed against the criminal banks.

All of these desperate and criminal activities speak loudly to the fact that gold is in severe and permanenent backwardation, meaning that the spot price of gold is higher than the forward months' future prices. Those denying this observation have pointed to the paper price of gold for refuting our claims. Unfortuantely the paper price of gold is not a reflection of its true price, and is indeed a highly manipulated value.

But recently even the paper prices have shown backwardation, an ominous sign of a breakdown in the criminal cartels' controls of the gold price. But the problem associated with backwardation is extensive economic destruction as price and pathways through price discovery collapse. It is not at all a good sign. The Great Depression of 2008 continues.
Thus the stage is set for the great gold bull market. The last 10 years were a warm up. The next 10 years will see an exceptional explosion in its price, although it will not happen overnight. The perfidy of American politicians, sponsors of the continuing 1000 year Reich, those ever loyal Citizens of the World, is greater than anything dreamed by Benedict Arnold.
King World News, Game Over - “It’s All A Farce, The Fed & German Gold Is Gone,” July 9, 2013

Copyright 2013 Tony Bonn. All rights reserved.

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