America is about to lose its most valuable asset, TRUST, as the out-of-control debt is going to destroy the nation. Most people take trust for granted as they have trust in their government, which was the reason why America became such a dominant force over the past century. That trust has allowed the US government to get away with a spending spree of historic proportions – much longer than anyone reasonably would have expected.
Widespread trust in the US dollar across the world, meant the US could buy almost everything at relatively low prices, as the US currency is accepted everywhere around the world. The US can pay for all of her imports in printed worthless dollars. Exchanging paper dollars produced at no cost for valuable goods isn’t a long lasting idea.
America was able to import more than it exported, to consume more than was produced, and spend more than was earned. But once trust in America is broken, it will “lead to a huge decline in the standard of living of U.S. citizens like nothing we’ve seen in nearly a century.” Says Jim Rogers. And that is going to happen once the public at large finds out what really has happened with the nation’s gold reserves.
In accordance to publicly available FT-900 documents, “in 2012, the U.S. exported about $24 billion worth of gold and imported $11.2 billion. On a net basis, that means $12.8 billion worth of gold was exported during 2012. Based on the average price of gold during 2012, the US exported about 217 tons of gold on a net basis. In 2013 America exported over $26 billion worth of gold and imported almost $11 billion. Meaning, on a net basis, $15.4 billion worth of gold was exported, more than 300 tons of gold.”
How could America export so much gold? An investigation in how far back in time this gold-export trend extended. Found astounding results “it was since 1991, the U.S. has been consistently exporting large quantities of gold on a net basis. – And the amount of gold the U.S. exported was well above and beyond what the US should be capable of exporting.”
“Using data from the Gold Fields Mineral Services, the US Census Bureau, the US Mint and Bloomberg, the U.S. total demand and supply of gold during those 20 years was reconstructed. During that time, the U.S. had a total amount of 7,532 tons of gold available for consumption… but the U.S. consumed 7,605 tons.” So, more was consumed than was available. That implies the US should have been a net importer of gold.
But oddly enough, in fact, “The US exported a massive 5,504 tons. How could they have possibly exported more than 5,500 tons of gold after they had already consumed all the gold that was available, plus a little more?” The math makes no sense. Where is all that exported gold coming from? It had to come from somewhere. That’s how this alarming conclusion comes from: “There’s an unexplained supply gap of 5,577 tons of gold. And there’s only one institution in the U.S. capable of secretly supplying such large amount of gold: the Federal Reserve.”
Bill Gross, founder of Pimco, the world’s largest bond fund, calls this scandal “the Fort Knox Fairy Tale”, referring to the Army base where the gold is supposedly being held. Here’s what he recently said: “$54 trillion of credit in the U.S. financial system based upon trusting a central bank with nothing in the vault to back it up. Amazing!”
In the 1950s, the U.S. had 20,500 tons of gold. “At that time, this represented HALF of all gold ever mined. It was the largest accumulation of wealth the world had ever seen.” This enormous concentration of wealth was the symbol of the all-powerful and wealthy America other nations envied. But in the last four decades the US government squandered all that wealth.
“In the late 1950s, the U.S. government started selling most of the gold to various European nations. From 1957 to 1972, the holdings went from 20,500 tons to 8,500, a decline of almost 60%. – Since the late 1970s, America’s officially reported gold reserves have remained at a constant 8,133 tons. So, according to the Fed, the U.S. Treasury has not bought or sold a single ounce of gold for more than three decades.”
How is that possible? “The government’s own documents – the FT-900 reports – show the U.S. has been exporting massive amounts of gold over the last 20 years. Yet the Fed has been telling us for more than 30 years that America’s gold reserves have never changed.” Again, the math simply doesn’t add up. “Fort Knox is still viewed by many as a golden beacon of global finance… a symbol of the American empire’s super power status and strength.”
But this all is a big smokescreen. The last remaining symbol of American financial might is about to be exposed as nothing more than a monetary illusion. “The FT-900 document suggests the vaults are empty. But the Fed keeps reporting, it holds 8,133 tons.” The Fed knows that if it disclosed that most of the gold is gone, it would lead to a major crisis of confidence in the dollar and U.S. government bonds.
Think about – if America’s gold reserves are a lie, then what else has been distorted, and where, if anywhere, what is the truth? The “full faith and credit of the U.S. government” would become worthless overnight. And that would lead to a collapse of the economy and way of life. Plainly it means “faith in America’s finances and confidence in its government are lost.”
The Treasury Department just has published a new report admitting that this kind of loss of confidence would have disastrous consequences for America. “(It) has the potential to be catastrophic: credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spill-overs could reverberate around the world, and there might be financial crisis and recession that could echo the events of 2008 or worse.”
That explains why the Fed doesn’t want anyone to know the U.S. gold is gone. But they won’t be able to hide this from the public for much longer. “Because the truth is… the FT-900 document isn’t the only evidence uncovered that suggests the Fed has been lying about America’s gold reserves.”
As the FT-900 document shows, the U.S. has been exporting massive amounts of gold for the past two decades. This is not a new phenomenon. In fact, the export numbers were already raising suspicion back in 1992. That’s when former Fed chairman Alan Greenspan raised the possibility that all the gold the U.S. was exporting came from the Fed itself. According to the minutes of a closed-door meeting in 1992, Chairman Greenspan said: “Did I hear you correctly when you said that the gold exports in October appear to have come from the coffers of the Federal Reserve Bank of New York? Has anyone looked lately? Mr Truman responded: Well, I didn’t want to tell too many secrets in this temple!”
In other words, the answer to Mr Greenspan’s question is NO – nobody has looked. The Fed’s vaults were not audited for the last 60 years. And that’s exactly the reason the Fed constantly refused their auditing. The only way to prove once and for all the Fed isn’t lying about America’s gold reserves is through a full independent audit. However, the last audit of gold stored in Fort Knox took place in 1953, just after U.S. President Dwight Eisenhower took office. So, there hasn’t been a comprehensive audit of Fort Knox in over more than 60 years.
Publicly traded companies must undergo annual audits, why should the Federal government be exempt? What are they hiding? It would be extremely easy for the government to audit the gold. According to a Treasury document, it would cost only about $15 million to conduct an audit. And yet the government has had the disrespect to deny all requests for an audit because of the costs involved, which of course is ridiculous.
Anyone still wondering that the German Gold is gone? The Fed has been able to fool the people so far, but Germany as an ally doesn’t trust the Fed any longer, and requested their gold back. And what about all other central banks that stored their gold in vaults controlled by the Fed?
“Much of the gold in the (Fed) vault arrived during and after World War II as many countries wanted to store their gold reserves in a safe location.” The German Central bank, in fact, keeps 1,536 tons of its gold in storage at the Federal Reserve’s vaults in Manhattan, 80 feet below sea level.The Fed prohibited the Germans from inspecting their own gold!”
The repatriation of a country’s gold reserves is supposed to be a smooth and quick affair. It isn’t supposed to take seven years. But once started to putting all the pieces of the puzzle together, it’s easy to understand why. – The gold isn’t there. It’s gone. Precious metals expert John Embry says, “if the gold were actually there, they could put it on a couple of cargo planes and get it back to Germany in a week.”
But if America’s gold isn’t where it should be – inside the vaults controlled by the Federal Reserve – then where is it? There’s some data that shows a tremendous amount of gold has moved into other countries in the East, especially China. Data released by the Hong Kong Census and Statistics Department show that over the last couple of years alone, China has imported 2,614 tons of gold. – The gold is gone. The Fed needs time to try to buy some of it back. – The problem is the Fed has run out of time.
Throughout history gold has always gone to where wealth was being created. – From Athens to Rome to the Byzantine Empire. The huge gold holdings after the World War II in the USA were a clear reflection of the unique economic power of the USA.
Look at what happened to Britain when it started selling off its gold. – The country was on the gold standard for nearly 200 years, from 1717 until 1914. That was a prosperous period for the British Empire.
How much gold is left in the West? And what happens when the fiat currencies crash and gold is simply unavailable in the West? Simply put, people won’t be able to purchase any gold, because there’s nothing of it available.
Contrary to what is concluded above: Jim Rickards claims in this video interview with Peter Schiff that the gold held by the Fed is leased out several times over, but still is sitting in the Fed vaults. If that were the case, why won’t the Fed allow a physical audit?The Fed and the big banks are undeniably engaged in trying to hold down the price of gold and silver on a daily basis – now they are having trouble getting silver to die. The reason: India and China have been buying physical silver hand-over-fist.
By the way; Jim Rickards is a front man for the US government, with the task to sell to the world the idea to replace the US Dollar by IMF SDRs as a reserve currency, which actually is impossible as the SDR isn’t operational in the foreseeable future.
The United States is desperately trying to put a stop to an alliance between Germany, China, and Russia. Investors must be heavy on physical gold and silver in order to survive the coming chaos and shift of power that is about to occur. Says Stephen Leeb in an interview on King World. And continues:
“Oil production is dropping and yet the price of oil is dropping along with it because demand is just not there. – And Europe is in no position to tolerate the kind of economic decline it is now staring at. – The (EU’s) Baltic States, however, has a major trading relationship with Russia. – The trade is now being done in rubles. This puts the dollar at an even greater risk of losing its reserve currency status. – Eventually this will trigger a move in gold that will blow people away as gold skyrockets. – TheChinese continue to have a very, very strong bid in the gold market. Judging by the action in gold, whenever it looks like its getting ready to fall it gets support coming in the form of bids from China. – So there won’t be lot of downside risk in gold. As the dollar falls from grace, this will turbocharge gold and silver and also completely change the way the world is being run. – In the meantime, I would still focus on silver. Despite economic weakness in the world, I still think silver will be a stronger performer than gold. – Silver is much cheaper for the masses to buy.”
End of No-Alternative-To-Dollar Era
War and destruction are to keep the stock market up. If there were peace the market would crash. So keep financing the war machine, free money for warmonger. Repeating the 9/11 boogeymen story. Doesn’t create economic growth either. Are driven to keep control over oil, and other natural resources. Completely destroying the economy in the process.
The absurdity runs deep in the USA: America is using American military equipment to bomb other pieces of American military equipment halfway around the world. The American weapons the US gave to Iraqi army totally failed at making Iraq secure and have become tools of terror. Now the USA has to use American weaponry to destroy the American weaponry it gave Iraqis to make Iraqis safer over again. The end of the empire is on its way to total disintegration! The US Empire now has become an out of control rogue state.
In this episode of the Keiser Report, Max Keiser and Stacy Herbert note that as the Empire collapses, they’ve killed all the boogeymen and yet blood for oil has not helped create escape velocity. They also discuss what the return of humpback whales and great white sharks to the waters off Manhattan can tell us about the end of a monoculture in fiat currencies where the dollar has reigned supreme. In the second half, Max interviews Dr. Michael Hudson about the war machine, Judge Griesa’s ruling, super imperialism and the end of a 60 year cycle in which there was no alternative to the dollar.
“There is no possible reason why the U.S. would not let the Germans see their gold. It’s not ‘a security issue.’ It is Germany’s gold. The whole thing is preposterous. However, it is a security issue if the vault is empty or damn near empty. Then you can’t let the Germans in because it really is a security issue. So when a country is backed into a corner the way the U.S. was with regards to the German gold, well, desperate times call for desperate measures.”