Monday, February 18, 2013

Get Ready for Some Major Disinformation about America's Gold

An audit of the gold held at the New York Federal Reserve has been completed and the disinformation campaign has started. Notice how LaTi reports the story:
The U.S. government’s gold in New York is safe in a vault underneath Manhattan, and some of the precious metal there is purer than previously thought.
The problem with this is that the gold held at the New York Federal Reserve is not "The U.S. government’s gold." It is gold held, for the most part, by the Federal Reserve for foreign countries.

LaTi goes on:
That’s according to a first-ever audit conducted last year by the Treasury Department of U.S. gold on deposit at Federal Reserve banks in New York and elsewhere.
This is curious because it is the government conducting the audit.  That's like having Bernie Madoff's brother auditing Bernie's customer accounts. Why wasn't an independent auditing firm brought in? And since the gold is held for countries like Germany, why didn't Germany and others who have gold on account get to pick the auditor?

Here's more LaTi disinformation, which misdirects from the above important questions:
As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district, according to the inspector general’s office. Auditors drilled tiny holes into the bars to remove samples that were tested for fineness in a process called assaying. 
In three of the 367 tests, the gold was more pure than Treasury records indicated, according to  the Treasury's inspector general. As a result, the government notched up the value of its gold holdings by approximately 27 fine troy ounces – or about $43,500, based on gold’s market value Monday.
Then LaTi tells us this:
The audit of the Fed gold came after 2012 presidential contender and former U.S. Rep. Ron Paul (R-Texas) questioned the central bank's gold holdings. While he was in Congress, Paul questioned whether the New York Fed had loaned or otherwise encumbered U.S. gold in financial arrangements, and he advanced a bill that would have required a full assay and audit of the country’s gold reserves.
But Dr. Paul was most concerned about "the country’s gold reserves," which is different from what is held at the Fed. The country's gold reserves are held mostly at Fort Knox, which no one is allowed to see, much less audit.

Then we have two more paragraphs of disinformation:
The New York Fed holds 99.98% of the U.S.-owned gold bars and coins in the custody of the Federal Reserve. The rest of the gold is on display at Fed banks in cities such as Richmond, Kansas City and San Francisco. 
As of Sept. 30, when the market price of gold was $1,776 an ounce, the Fed banks held $23.9 billion in U.S. gold. (Gold has since declined in value, and on Monday the precious metal was hovering around $1,610 an ounce.)
Unlike Fort Knox, the NY Fed gives tours of its vaults, so Americans can see the gold of other countries, but not US gold.
Bottom line: This audit was designed to confuse. Expect more stories about how the Treasury conducted and audit of US gold. Not true. Fort Knox gold, where America's gold supposedly sits, is off limits to all and has never been audited.
Again, the gold held at the New York Fed is mostly gold held for foreign countries. It does not belong to the Federal Reserve or the United States government. LaTi after misdirecting throughout the full story, ends with the limited truth:
The vast majority of the country’s gold reserves is held elsewhere, in Fort Knox, West Point and Denver.
Of course, the full truth is this gold has never been audited and unlike the NY Fed, which provides tours, there are no tours of the Fort Knox gold.



Every year tens of thousands of visitors from around the world visit the gold vault as part of a free, public tour of the New York Fed. This tour is designed to educate visitors about the Federal Reserve Bank of New York and Federal Reserve System. You can register for a tour here.



Bottom Line: The audit of the NY Fed gold will be used to deceive and give the impression that the gold supposedly held for American's has been audited.

18 comments:

  1. "In three of the 367 tests, the gold was more pure than Treasury records indicated, according to the Treasury's inspector general."

    LOL! That's because we spent years sending the crappy stuff to Germany. I wonder how much this ZH report going public had to do with Germany's decision to take its gold back:

    "To summarize: Bank of England discovers discrepancies with US Assay Office gold bars, notifies the NY Fed that its gold bars have major "bad delivery" issues, but, and this is the punchline, on this occasion, we'll keep it quiet, because the Bundesbank got these bars. "

    http://www.zerohedge.com/news/2012-11-09/exclusive-bank-england-fed-no-indication-should-course-be-given-bundesbank#comment-2966214

    ReplyDelete
  2. Even more amusing - the thought that proving gold is there is proof it's not encumbered and not promised to more than one "owner". Hilarious!

    ReplyDelete
    Replies
    1. What amazes me is that the FED is always downplaying golds importance, stating that it's a worthless relic in our currency. So why do they keep and protect it in Fort Knox ?
      God knows the amount stored ( if you believe that number )is so little to cover even a small fraction of our worth and debt, you wonder why the USA is still the worlds currency, I was going to say Gold standard !!

      Delete
  3. And of course proving some gold is there (if not getting an INDEPENDENT audit is proving something) means that the gold belongs to the people they say it belongs to, right? Couldn't possibly be rehypothecated because an assay can detect that, right? Can't be used as collateral in gold swaps because assaying detects that too, right?
    The thing I find astonishing is that ANYONE believes ANYTHING they say anymore.

    ReplyDelete
  4. In spite of all this misinformation, gold is best for investment. Individuals should try to increase their our gold reserves to secure their investments and their future against economic turbulence.

    ReplyDelete
  5. I get to show off my friends stamp collection.

    ReplyDelete
  6. Move along. Nothing to see here.

    ReplyDelete
  7. They decided they'd just show us somebody else's gold. Kind of like seeing a model home. The one you are buying may not be in the same condition if it even exists yet. "This is what the gold would look like"

    ReplyDelete
  8. My calculation of 34,021 bars if they are the standard 400 Onz bars indicates that there are less than 500 tons of gold in the NY Fed.
    WTF goes????

    ReplyDelete
    Replies
    1. Correct, it would come to 423.276 metric tons only.

      Delete
  9. Potemkin gold vault. When the truth finally comes out, the long list of guilty banksters needs to be tried and convicted.

    ReplyDelete
    Replies
    1. Banksters convicted? Yeah, right.... Like that will happen....

      Delete
  10. Why can't we verify the gold that is in Fort Knox? I think we all know why. Even if verification was on option who would do it, government auditors!

    ReplyDelete
  11. I think it was on History channel or maybe Discovery channel whiched aired a show that proved indirectly that there is no gold in Fort Knox!!

    ReplyDelete
  12. Well there you have it, government efficiency at its finest. They can say they audited the US Gold and the Fed even though neither happened. No doubt the propaganda media will run this story into the ground, resurrect it, run it into the ground again, and then dismiss all free thinkers as Audit Truthers. Ugh!

    ReplyDelete
  13. Understandable is that the western global banksters do what they must in order to maintain power of a fractional reserve currency system fueled by paper and ink that has been further reduced to numbing numbers of computerized digits.

    Assuring that the path of western societies continue to devolve into a rudderless, dependent, drug culture of broken families fed media propaganda addicted to progressive concepts . . . in order to limit the capacity for individuals to think . . . to ponder . . . to stand up . . . and ask direct questions that deserve substantive answers that should be verified.

    ReplyDelete