Fed’s Dirty Little Secret: “The Gold Isn’t There… Exists as Paper IOU’s”

By Mac Slavo. 

The assumption by global depositors who have entrusted their national savings with the Federal Reserve and US Government has always been that when they request to repatriate their holdings the Fed would simply open the vault, access said assets and ship them back to where they belong.

That’s exactly what Germany expected would happen last year when the country requested that the Federal Reserve return about one-fifth of their gold reserves. But that’s when things got really dicey. The Fed announced that Germany’s gold would be returned… but it would take seven years to get back home.

The response to Germany’s request turned heads all over the world and raised concerns that the Federal Reserve had squandered its gold holdings. But this isn’t the only red flag that was raised. Public pressure reached such levels that the Fed was forced to take steps to maintain confidence in its operations, so it started shipping gold to Germany. Except it turns out that the gold being sent back to the Bundesbank wasn’t actually German gold. It contained none of the original serial numbers, had no hallmarks, and was reportedly just recently melted.

The implications are earth shattering and hit the very core of the problems facing America today. The whole system as it exists is just one big paper IOU.

In this must-watch interview with Future Money Trends, Jefferson Financial CEO Brien Lunden weighs in on Germany’s gold, what is happening at the Fed and what other central banks are doing right now. Brien also shares his thoughts on where the gold market is today, what to expect in coming years as gold supplies tighten up, how mining companies like Brazil Resources are taking advantage of the current environment, and how to profit from gold in coming years.

(Full transcript and interview)

For the reply to be that it would take seven years for this Gold to be sent back to you, your Gold to be sent back to you, was an obvious admission that the Gold just isn’t there.

Yes, it’s an admission that the German reserves were not still sitting there in the vault in the same form that they were sent there after WWII. They were not the original Central Bank Gold bars, same serial numbers etc. It’s an admission that at some point since then, that Gold has been used for other purposes.

So the dirty little secret here, is that a significant portion of central bank Gold reserves, including the U.S., don’t exist now in their original bar form. In fact, they exist as IOU’s, paper IOU’s, from the very banks that were bailed out in 2008 by the Federal Reserve.

So the Gold isn’t there, and the secret that they’re hiding is that it’s been replaced by IOU’s, and importantly those IOU’s are for Gold that was borrowed at much lower prices.

The Fed, through their recent actions, has essentially admitted that the gold stored in their vaults isn’t really there. Just as our government refuses to be openly transparent to with the American people, the Fed has resisted all calls to open their books (and vaults) to impartial third-party accountants for review.

The whole system, it seems, is now operating on IOU’s. Be it consumers, banks, the Fed or even the US government, all of the US dollars being exchanged are nothing but worthless pieces of paper, because given the lack of transparency at the Fed, we have to assume that the physical assets supposedly backing all this currency have already been spent.

Are we wrong in making this assumption?

If you were to store some emergency funds with a friend who promised to get them back to you whenever you asked, and then you ask and are told it’ll be a few years before he’ll get you the cash, what assumption would you make? That your friend has the money on him right now, or that he’s used it for other purposes and doesn’t really know exactly when he’ll have it available for repayment?

Our entire consumer economy, as well as the credit worthiness of our nation, is built upon confidence. It’s took decades to get America in a position where our country’s monetary issues and services would be trusted by the international community. It’s taken just a few years for that confidence to be lost.

It’s now only a matter of time before our creditors and global investors pull the plug on the whole thing.

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Categories: International-news

Author:General Maddox

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2 Comments on “Fed’s Dirty Little Secret: “The Gold Isn’t There… Exists as Paper IOU’s””

  1. Anenome Ofglobalgov
    January 24, 2014 at 8:04 am #

    The plugg has already been pulled on the US$ as the reserve currency. The BRICS nations, Australia, Japan and others have already been deals with China in which their own respective currencies are used. The US$ is dead, the flood of useless US$’s just hasn’t yet come home to roost. Get our of all useless fiat paper money and by tangible hard assets such as gold, silver, farmland etc before the mega-derivatives gambling market is purposely crashed by ‘Mr Global’ (The Committee of 300) and mass bank bail-ins (preplanned) occur. This is not a time in history to allow the mind to adopt ‘willful-blindness’ nor ‘normalcy-bias’. Facing reality and action in protecting yourselves is the way survivalists must go. The G20 nations have been ordered by the BIS (Bank of International Settlements) to have their bank bail-in legislation in place BY THE NEXT G20 MEETING NOV 2014 in Brisbane Australia.

    It is part of ‘The Great Levelling’ as exposed by Jim Sinclair. The Great Flushing occurred in 2008 GFC (500 U.S. banks closed down, not just Lehman Bros), The Great Levelling 2014-2016 is the annihilation of the Middle Class (by theft of their pension funds and deposits etc), Then in 2016-2020 The Great Reset (transfer of the world’s economy and currencies from west to east etc). The first world will be reduced to third world status and BRICS nations will in 2020 become the new consumers. Gold is being held down artificially and will rise dramatically when the COMEX paper gold futures rigging comes to an end. All this according to Jim Sinclair (also check out LinsdeyWilliams.net for what has been planned as a step by step slow burn, culminating in one global digital-only currency (NEVER allow this!) and this will bring in the One World Government ie Earth Inc.

    Mr Global is also progressing with The Great Culling, an ominous term – watch GMO foods, vaccines, water additives, chem trails (not the normal water vapour con trails) with their aluminium etc being sprayed over vast areas in various countries. Grow your own and protect yourselves against this psychopathic tyranny.

  2. Anenome Ofglobalgov
    January 24, 2014 at 8:20 am #

    Here is the reality of what we are dealing with. When you read this information you may immediately think “They would never do that!”. Here’s the thing – No, YOU would never do that, ‘they’ ARE doing it! These people do not see the world the same way as you and I. They feel superior and feel that they ‘own’ it and have the rights to the world and its resources, and that your purpose is serfdom ie to serve them. Here is just one factoid to get you into THEIR (psychopathic) mindset, these are the terms they use when referring to we, the sheeple/people, “expendable containers, useful idiots, useless eaters, and more recently human resources”. I once read that 1 in 5 people have psychopathic tendencies and thought “well, where are they all, I only have been aware of 1?” The Insiders and their Useful Idiots may well be where they are! The Committee of 300 (read John Coleman’s book of the same title) are the aristocrat descendants’ of the British East India Co. The British East India Co did not go away, it just morphed via creating and controlling nations’ central banks etc.

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