Gold: Who Wants To Bet On the U.S. Government?

Germany knows what de Gaulle knew. Who wants to bet on government?

Last night, I saw my first article on Germany repatriating their gold from France and the United States at TF Metals' website. Today it was all over the internet. Gosh, it might be true. http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9804444/Bundesbank-to-pull-gold-from-New-York-and-Paris-in-watershed-moment.html

Germany

Value of reserves: $174.7 billion
Holdings total: 3,743.7 tons

The Deutsche Bundesbank, Germany's central bank, has 3,743.7 tons of gold reserves, which are valued at about $174.7 billion. According to the World Gold Council, Germany’s gold coffers account for 73.7 percent of total foreign reserves.

Remember that old saying? Possession is 9/10ths of the law? Well, apparently Germany remembers that old cliche'. http://en.wikipedia.org/wiki/Possession_is_nine-tenths_of_the_law

The Bundesbank wants it's gold back. As it turns out, the first guy to panic is often the one who panics best. Germany is the world's second largest owner of gold at nearly 4000 tons. The USA is allegedly the largest holder at 9000 tons of gold- although and unfortunately- nobody has seen it for 40 years.

It is a secret. You want to hear something oddly interesting? The United States government is under no obligation to report sales of our gold. The United States Treasury has complete dominion over US gold and if in fact they have sold or disposed of bullion- it is highly unlikely that anybody would know. I have researched this at great length and I have often wondered where the gold to mint US Gold Eagles comes from. I have always assumed that it was freshly mined gold from gold mining operations. The truth is, I simply don't know. I want to include this snip from wikipedia. The US used to own nearly five times the amount of gold that we own now.

Gold holdings peaked during World War II at 20,205 metric tons (649.6 million oz. troy). Today, holdings are 4,578 metric tons (147.2 million oz. troy) in 368,000 standard, 400 oz. troy (12.4 kg or 27.4 lb avoirdupois) gold bars. At the June 17, 2012 rate of $1,618.82 an ounce [6] it is worth $238.290 billion, while the World War II total of 649.6 million oz. troy would be worth $1.051 trillion. The depository also holds monetary gold coins. The 1933 Double Eagle was also a temporary resident after transfer from 7 World Trade Center in July 2001, until its sale in July 2002 for $7.59 million. Sometime in 2004, 10 additional allegedly stolen 1933 Double Eagles were transported to Fort Knox for safekeeping.

So clearly our government can dispose of gold- whenever they want to. You get the feeling that the post WWII 102% debt to GDP ratio may have been reduced via gold sales. Today's debt eclipses any potential gold sales.

Yesterday, I posted a link next to this blog that allowed readers to sign a petition for an audit of OUR gold. We need 25,000 names to get some sort of government response. I think the petition had around 5000 names at the time I posted it.

Foreign gold has been stored in the U.S. for nearly 100 years. Foreign owners have long been content to leave gold parked in the US. The biggest problem with doing that- is that the US is simply a bully. If in fact our currency goes kaput- just how would another country wrestle it away? We're back to that possession is 9/10ths of the law thing.

That wouldn't be so far fetched if in fact we hadn't done it already.

In 1971, Charles de Gaulle of France demanded payment of French debts be made with U.S. gold.
On Aug.15, 1971, Richard Nixon officially removed the U.S. from the gold standard. Take that, Charlie. So there was some foreshadowing long ago...

Charles de Gaulle was always a gold bug...he didn't bet on the U.S. government.


“Betting against gold is the same as betting on governments. 
He who bets on governments and government money bets against
6,000 years of recorded human history.”

 




Comments

MizuBob said…
As always, your posts are interesting and thought provoking. Thank You for this.
Anonymous said…
"We're from the government and we're here to help you." (translation: we're part of an organized crime syndicate and we're gonna fuck you over some more)
Anonymous said…
The bottom line is that if you own physical gold and it's not in your possession, you don't own it. The reason the German's now claim that they won't take full possession of their U.S. holdings until 2020. That means that the Fed told the German's that the gold was not available or the Fed told the German's to screw off. The German's released there "plan" to take back the gold by 2020 to save face.
Bottom line, the Fed ain't got the gold.
Anonymous said…
It can be viewed at the New York Fed in lower Manhattan folks.
Brian said…
Heh. Get me a ticket, I'll be on the next plane to see it.

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