August 29th, 2014
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THE NEW YORK FEDERAL RESERVE, AND TWO GERMANS

We’re all familiar with Congressman Ron Paul’s frequent calls for a full audit of the US central bank, the Federal Reserve System. Well, here’s one that may have flown beneath your radar set, and like so many stories of this sort, it has deep, and murky, and almost endless possibilities, and unfortunately, space here only permits me to go into a few of them. But first, the article itself. It’s quite lengthy, but, as a close reading will soon disclose, quite important(and I’ve written about this before, but repeat the story here, with some new information):

The Fed’s Gold Is Being Audited… By The US Treasury

Nevermind the implications of the Federal Reserve having its own police force (kind of implies jurisdiction, though, doesn’t it?). What we really need to focus on (for the moment anyway) are these at these very beginning:

“And not only the gold belonging to the US: it is well known that the bulk of Europe’s sovereign gold is also contained deep under downtown Manhattan: we wish them all the best when they attempt to repatriate the physical when they need it, such as the day after the EUR finally collapses.

“No - what the “conspiracy theorists” allege is that claims existing in paper format on the physical gold held under Liberty 33 are orders of magnitude greater than the actual physical gold these claims supposedly have recourse to. Indeed, this too was a conspiracy theory until the failure of MF Global proved it to be a conspiracy “fact” and the entire asset-liability rehypothecation daisy-chain threatened to begin unwinding in November of 2011, at which point forced delivery of hard assets would expose the entire facade of the modern financial system to be a hollow sham.

“So unless the Treasury will also conduct a full “audit” of every single paper trail and every physical bar is mapped to all of its existing obligors, then the entire operation is absolutely meaningless and simply a waste of taxpayer money. Because the physical gold may well be there (and furthermore it is the gold at Ft. Knox that was questionable; never the gold held by the Fed, but who cares about details). The problem is if the paper claims on this gold are far greater than the actual deliverable physical gold for that moment when the latest attempt to kick the can down the rehypothecated road finally fails.” (All emphases in the original)

Now I hope you caught what is really being said between the lines here: foreign gold reserves in deposit with the Federal Reserve Bank of New York were “rehypothecated” several times over such that there are not just one set of claims against this gold, but several. If we want to draw a crude analogy of what is going on here, it would be like keeping not one set of books, using “x” amount of gold as a reserve of backing for a whole set of investments, but several sets of books, each independent and separate from each other, with each set of books representing a whole series of investments made on the same basis of gold. Now, for gold bugs who view gold as a safe and reliable way of managing the output of money by banks, this is bad news, for a gold standard only works when the bankers themselves are honest.

So….with that in mind, fast forward to a little later in the article where we read this:

At this point, the Times piece almost grasps what the real issue is, once again courtesy of Ron Paul:

“’If the gold is there and everything is in order, they should welcome an audit,’ Paul said in an interview.

“He said he doesn’t suspect that anyone has replaced the gold bars with fakes. He’s more interested in examining paperwork that would show whether the gold has been used in any transactions that were never disclosed to the public, such as loans to other governments.

“He is not alone. In Germany, there have been calls by some politicians to “repatriate” the country’s foreign gold reserves and return to a gold standard as the euro common currency faces an uncertain future.

Philipp Missfelder, a prominent German legislator in the country’s ruling Christian Democratic Union party, visited the New York Fed in February seeking to inspect his country’s gold.

 “Missfelder was not given access to Germany’s gold bars, though it’s unclear why, according to German magazine Der Spiegel. He declined to comment.”

Now regular readers at this website will recall that I have written previously about the calls of some countries to repatriate their gold, Venezuela, and subsequently, and more importantly, Germany. Missfelder, a member of Chancellorin Merkel’s Christian Democratic Union party, thus went to the New York Federal Reserve, “seeking to inspect his country’s gold.”

Consider, for a moment, the implications thus far: Missfelder was, in effect, a representative, whether in an official or unofficial capacity, of the German Federal Chancellor, and, according to the article “Was no given access to Germany’s gold bars” and more disturbingly, no reason is given.

Well, the New York Federal Reserve’s actions regarding Germany and gold are, it seems, a part of a pattern going back several decades with respect to that country and its gold.

Consider the following passage:

“Another amusing incident arose from the fact that the Reichsbank maintained a not inconsiderablegold deposit in the Federal Reserve Bank in New York. Strong (Ed: president of the New York Federal Reserve Bank) was proud to be able to show us the vaults which were situated in the deepest cellar of the building and remarked:

“‘Now, Herr Schacht, you shall see where the Reichsbank gold is kept.’

“While the staff looked for the hiding place of the Reichsbank gold we went through the vaults. We waited several minutes: at length we were told: ‘Mr. Strong, we can’t find the Reichsbank gold.’

“Strong was flabbergasted but I comforted him. ‘Never mind; I believe you when you say the gold is there. Even if it weren’t you are good for its replacement.’” (Hjalmar Horace Greeley Schacht, Confessions of the Old Wizard: The Autobiograhy of Hjalmar Horace Greeley Schacht, trans from the German by Diana Pyke[Houghton Mifflin, 1956. Literary Licensing reprint, 20 ISBN 978-1258126-742, p. 245).

Schacht was, of course, the famous, or depending on one’s lights, infamous on-and-off-and-on-again President of Germany’s Reichsbank during the crucial period from the end of the German hyper-inflation until the early Nazi era, and was in fact the man responsible for stabilizing the Reichsmark after the ruinous hyperinflation, and was one of the founders of the Bank for International Settlements in Switzerland.

So what do we have here?

  1. Twice in history – during the1920s and much later, during the early 2000s -  a high representative of Germany has visited the New York Federal Reserve bank and been denied access to its gold;
  2. In the first instance, the President of the New York Federal Reserve acts as if he fully expects his staff to be able to find Germany’s gold, and acts astonished when it cannot;
  3. Schacht, in what can only be dubbed bizarre behavior in the extreme, does not appear the least bit upset (did he know something Strong himself did not know?)
  4. Decades later, a German Bundestag member and a representative of the governing party of the Chancellorin, visits the same bank and is denied access, which suggests that Germany’s gold still is not there.

I don’t know about you, but this has the malodorous scent of massive fraud, and it is, to my mind, oddly compelling that the whole odor begins to arise during that tumultuous era of financial wheeling- and – dealing associated with German war reparations, the Dawes Plan, the Young Plan, Schacht’s whole role in the formation of the BIS and the strange terms he insisted upon… and there are many other dots to connect here as well, but I think you get the idea…

See you on the flip side

25 Responses to THE NEW YORK FEDERAL RESERVE, AND TWO GERMANS

  1. Look for an aged NY Italian mafiaso to write a tell all book about how he and his crew robbed the NY Fed’s gold vaults using blow torches and then fenced it to the Vatican. Expect a Martin Scorsese Hollywood film of the heist to soon follow.

    Oh, how these tv zombies are so enamored with these witless Italian goonbahs. What a great cover for the real gangsters– the banksters. I remember reading about the Teflon Don in the NY Post years ago and thinking if this dimwitted, ostentatious salami head could be the head of the criminal underworld, I should change careers. It was only years later that I discovered that the Italian mafia was just taking orders from the likes of Larry Silverstein and George Bush, as has been exposed on numerous FBI surveillance tapes.

  2. Very interesting. I should add that Mr. Dawes is glaring at me as i type, from an original Coolidge/Dawes campaign poster I have framed on my wall. He’s not talking.

  3. Mr Farrell,

    After looking at all possible angles of the larger picture one can only come to that conclusion, in my humble opinion.

    This whole crisis thingy is but a veil on *the* geopolitical grand scheme, nothing else, and it has been that way since ages, and it started even before Tiamat fell in times so long gone by that not many souls living today are able to remember even glimpses of those days of old. Things are changing, though, and now time arrived at the other side of the grand wheel again, where angels flight and lions roar will merge, again …

  4. Small point but Ben Strong’s job title was Governor of the Federal Reserve Bank of New York. Congress didn’t change the title to President until 1935 (and Strong died in 1928).

  5. The vanishing gold bars, sounds like one of Fabrice “Fabulous Fab” Tourre’s shell games, where his sack of ‘structured products’ was exchanged for gold bars!

    Having Treasury audit the Federal Reserve is a bit like the Vatican auditing Opus Dei or the Jesuits.

    Two Germans and the Fed may not be the proper place to raise the spectre of the Vatican, or is it?

    Joseph, have you, or anyone else here, dipped your toes into Eric Jon Phelps’ – The Vatican Assassins? Given the history of the Vatican/CIA ratlines, it would make sense that the 4th Reich would find Vatican vaults a safe harbor from which to finance current and future rape, murder and plunder. In a sense, Phelps’ zeroing in on the Jesuits may have inadvertently placed the spotlight onto the real money power.

    Phelps at times is a bit difficult to navigate for he exposes a peculiar racist side of himself that is a bit uncomfortable. Even so, he does throw out some sparkling tidbits that should not be cast aside. Phelps states that both Hitler and Stalin were agents of the Jesuits: According to the late Jesuit priest, Fr. Alberto Rivera, a fellow Jesuit named Fr. Bernhardt Staempfle wrote Mein Kampf, as the stage was being set for Germany’s new Roman Catholic star, Adolf Hitler.

    Since Germany was the seat of Protestant Reformation, according to Phelps, Hitler’s publication was to set in motion the Vatican’s reclamation machine. Don’t forget, Ratzinger’s prior position under Pope John Paul II was the head of the old ‘Office of Inquisition’, which goes under the current euphemistic moniker of ‘Congregation for the Doctrine of the Faith’; is a nasty bit of history that still lives.

    Back to the question: Who does it serve? Who really holds the purse strings to the IMF? Do all central banks report back to Rome? The pope proudly wears the two keys; a blatant symbolical statement, annunciating that he alone is god over both material and spiritual realms. Is this turkey sitting on the gold bars?

    Hitler Catholic Background:
    http://one-evil.org/people/people_20c_hitler.htm

    Stalin Catholic Background:
    http://one-evil.org/people/people_20c_Stalin.htm

    • Hi amunaor,

      “Having Treasury audit the Federal Reserve is a bit like the Vatican auditing Opus Dei or the Jesuits”- spot on, Baby-

      I think the most underestimated player in this global financial scheme is “The Holy See”-

      behind every religion is a banking system and behind 1/6th of the world population being Catholic is one of the most influential banks of the world- I think we might safely assume they’re playing a major card or two in the Tarot deck of life-

      Larry

      • The gold reserves held by the Vatican –
        http://one-evil.org/acts_global_depression/acts_global_depression.htm

        The largest single holder of ingot/bullion gold of any organization for the past 1,000 years is and has always been the Roman Cult…..

        The Roman Catholic Church controls approximately 60,350 metric tonnes of gold, twice the size of the total official gold reserves around the world or approximately 30.2% of all the gold every mined/produced. At current prices, it puts the asset value of the greatest treasure in human history at over US $1,245 Billion.

        For most of the past 1,000 years, the Catholic Church has been in a dominant position to control the world market of gold with over 50% of all gold and a high point from around the 14th Century to around 17th Century of controlling over 60% of the total gold ever mined.
        The treasure has been split between various declared reserves as well as undisclosed reserves……..

        Papa Ratzinger prays to ‘See’ it all:

        VATICAN CALLS FOR NEW WORLD ECONOMIC ORDER (11/25/2011) –
        VATICAN CITY – The Vatican has called for radical reform of the world’s financial systems, including the creation of a global political authority to manage the economy.

        Pope Ratzinger: We Need A World Government

        That is one of the main themes of his brand new encyclical entitled Caritas in Veritate, or Charity in Truth. In it, Pope Ratzinger publicly calls for a “true world political authority” with “real teeth”.

        Papa Ratzinger, the man who proudly wears the keys to both realms, proclaims that the creation of a World Central Bank to control the world is good for you. That is, of course, as long as Papa is the president of the ‘World’s’ 4th Reich Bank!

        According to – Vatican Exposed by Paul Williams: Despite its claims otherwise, the Vatican Bank is not a branch of the State of Vatican City. (Stato della Citta del Vaticano). It exists as an entity unto itself without corporate or ecclesiastical ties to any other agency within the Holy See. It is under the direct supervision of the pope. He is the one and only stockholder. He owns it; he controls it.

        Holy See? What’s in your wallet? Now you See it, now you don’t!

        • great info, amunaor- thanks for enriching my horizons- but I’m not yet convinced of the concept “(the pope).. He is the one and only stockholder. He owns it; he controls it”- you must know yourself that “Bennie the Rat” is nothing more than a complete stooge/front man for a very vast underground- no one man in the world of geopolitics is his own person- how could they be?- one single person cannot be an entire financial mafia-

          following saying has been attributed to the Medici family: “money gets power- power protects money”- as I’ve often stated (my gut instinct tells me) I still haven’t ruled out the Italian Black Nobility for having the upper hand controlling the world’s financial system and their immediate stooges (Vatican, Rockefellers, Rothschilds, etc.)- the Roman empire only disappeared overtly- and the rabbit hole is just so incredibly deep-

          Larry

          .

  6. Why spend all this time talking about gold? Gold was such a small amount of the funds traded for WWII. The Bundesbank is the real thief. More gold was traded in Gold Bonds than in gold itself.
    Take a look at the Dawes and Young bonds.
    *2B face value sold.
    *Trustee J. P. Morgan stopped dealing in the bonds until Germany cleaned up its bookkeeping. JP could see what was going on.
    *the BIS was formed and controlled by Germany as the new trustee of the Dawes & Young Loan.
    *Germany passed a law that all bonds in Germany had to be placed in the bank.
    *Germany passed a law that all bonds in the German banks had to be sent to the Bundesbank.
    *Germany passed a law where all bond coupons would be paid by the Bundesbank.
    *Germany passed a law where no German could own foreign currency (bonds).
    *Germany passed a law replacing all foreign currency bonds with Mark bonds. Note, the Mark bonds were paperless bonds.
    *Germany passed a law where Germany could use/sell all the bonds in the Bundesbank. In other words, Germany could keep reselling the same bond over and over.
    *Script (a receipt for a Dawes bond) was being traded on Berlin stock exchange and well and the bonds themselves.
    *Germany passes a law that offers Mark bonds for replacement of D & Y bonds that are now in default.
    War is over.
    U.S. and Germany make up story of Russia stealing D & Y bonds, 450M face value.
    American taxpayer are gifting Germany 600M to 900M per year and needs to hold off payment of D & Y bonds for at least 5 years. This is so Germany can get back on its feet. Otherwise the U.S. taxpayers will be paying off the D & Y bonds. Remember the cities and companies sent their payments to the Bundesbank so the German government got the money and owes on the bonds.
    *Germany & U.S. passed German law over American bondholders for validation.
    Validation said in 1953 you had to have a record on a bearer bond going back to 1945 that it was in the US or 1936 outside of the U.S. to get paid.
    About 40,000 bonds are still held by U. S. bondholders who have never gotten paid. At a wholesale price today, they would come to more that $16B.
    You don’t have to go looking for the gold. It is in the bonds (Paper gold). There are 5 active lawsuits trying to collect today on these bonds.

  7. In today’s/yesterday’s banking system fraud is systemic. In fact without FF(fraud flow) the system is dead/hence the term Zombie Bank.
    And the fact that ALL financial fraud flows(FFF) through London, where hypothecations approach infinity & beyond!; it’s time to start sharpening the guillotine blades, …for zee banksters & their little helpers(scalpers).
    Call it PAYBACK!

  8. ??? This would actually be great news for gold bugs! Less gold would equal a higher price.

    What would be really bad for gold bugs was if there WAS enough gold to cover all these pieces of paper. That would indicate that there was more gold in the world than what’s been publicly acknowledged. And that the price of gold has been deliberately inflated to cover up that fact. Think De beers and their diamond cartel. Control the perception of scarcity and you control the price.

    How could we actually have more gold than what’s been acknowledged? You’ve answered that one yourself. The technology to create gold already exists. It just needs a cheap source of power like cold fusion to run it. Think of all the hidden trillionaires this could create!

  9. “but this has the malodorous scent of massive fraud”- of course it’s fraud- anything new in the world?-

    ““Philipp Missfelder, a prominent German legislator in the country’s ruling Christian Democratic Union party, visited the New York Fed in February seeking to inspect his country’s gold.

    ”Missfelder was not given access to Germany’s gold bars”-

    I think we can safely assume Missfelder was not even allowed to be NEAR the place let alone allowed to try to assess Germany’s gold

  10. from a historical perspective, China’s dominance has always been with gold.
    The question I have is why so much importance on a metal thats only historical worth is a superficial piece of ornament. I guess it needed to be replaced with the green bomb, aka paper, to advance civilization.
    If only responsible people could get control.

    Sion btw, Set Isis Osiris Nephertys and I suspect Horus an anagram for Hour or time. Parented by Geb (greenbomb) and A nut….funny the mars “rover” was weighed down with Nuts.
    woof woof has a come a knocking on ars.

    Pan dora the explorer box is being opened.

    • Horus being the Sun traversing the sky, it’s more likely the word “hour” is derived from Horus, rather than the other way around.

      • Either way you look at it, it is the Kings English, an alpha bet invention.

        Kind of like trading places, he who sits under the gourd has it made in the shade…..that is till the worms come a feeding….head worms and mysteries.

  11. The Reichsbank reserves stored in New York have nothing to do with the actual German Federal gold reserves stored there. The vast majority of the current german gold reserves, officially the second-largest on the planet stem from the trade surplus of the Wirtschaftswunder in the 1950′s and early 1960′s. As far as i recall the Reichsbank gold has “vanished” from every radar after 1945, and is never mentioned anywhere.

    Regarding the strange secrecy the Bundesbank has kept upon all matters of german gold reserves since 1957, as did her predecessor, the Central Bank Council of the German States from 1951-1957 i wonder what really is going on with the german gold reserves. Then there is this period from 1945 to 1951 when the allied powers hold authority over the german financial affairs and subsequently over the gold reserves, and to find anything meaningful or even interesting during that timeframe is near to impossible.

    It seems that there are Bundesbank vaults existing in Frankfurt am Main and in Mainz (Mayence) and there are rumours that gold reserves are stored there, but as usual it is nearly impossible to get a statement from the Bundesbank in that regard, even a parliamentary comission had not much luck this spring to get more than vague comments on their official questions to the Bundesbank regarding the whole matter of german gold reserves and where these are stored and how much gold there is in physical presence at which places exactly. In that audit it became clear that the vaults in Frankfurt and Mayence seem to be a reality, but that was it then, no more information was given whatsoever, as the Bundesbank is officially independent of political influence and cannot be questioend let alone officially audited by the parliament whithout the Bundestag getting close to the edge of legal possibilities. The Bundesbank has, to the public, always kept her fierce “independence” of any political interference whatsoever with all means possible.

    From my view, when watching the broader picture here, i would assume that neither the Bundesbank officials nor the german federal gouvernments since 1951 have been idiots. I would not wonder if all german gold reserves would be stored in Germany long since and the (fairy tale of the?) german gold reserves stored in New York, London and Paris is but kept as a nice destraction from the real circumstances. Especially when watching the german behaviour in the so-called €uro-crisis one comes to some conclusions, wether riht or wrong is to be seen: That this “financial crisis” is nothing else but a full fledged war of the former western allies (that is: Wall Street and the City of London) against Germany to prevent her to defect from their system of global dominance on whatever cost, to prevent that anglo-american nightmare of a Germany slipping out of the (since at least 1914) so well forged chains finally siding with Russia and China (and most possibly, India, too) to once and for all crush the “western financial empire” and thus, ruining completely and forever the global dominance strategy of the USA and the western financial elites.

    Some bold “prediction” comes to mind: Germany leaving the €uro, thus leaving the €urozone to implode, a step maybe started by some smaller country like Finland, Austria or even the Netherlands leaving first to prevent Germany getting the full blame, then some reason will be found and stated by the western powers (as usual) to justify action against Germany, maybe via NATO intervention to “help” Germany in her (internal political turmoil?) struggle after leaving the €uro, maybe via France, maybe also via Poland (which is the most devoted poodle of the USA in Europe, no offense meant here, one can understand it when looking at the history of that country), who knows, which then would lead Russian (and Chinese?) intervention to “help” Germany as well. There are too many prophecies out there which describe exactly such a scenario, too many to be mere chance, something is brewing here and some people obviously had some glimpses of what may (or may not) happen. And on top of that there are *a lot* of unpaid bills here since 1945, especially when it comes to the former german territory “given” to Poland after WWII.

    If Germany would have her gold on her own territory long since and all that endless babble about her reserves abroad would be a mere distraction it would be possible for Germany to introduce some kind of a gold standard for a “new” Deutsche Mark instantly. This, combined with the global business interrelations of german financial institutes and the well-woven implications of bancruptcy by countries such as Greece, Spain, Italy, France, Belgium and even the UK could bring Wall Street and the City in a rather serious situation leading to acts of desparation in all parts of the financial, political and military structures of the anglo-american system of global power.

    Just my five cents here. And i have not yet mentioned the other areas of interest these days: Syria, which is the key to Iran, which itself is the key to the Eurasian heartland, not to mention 2012 and the whole planetary change stuff … something *big* seems to be lurking around the corner.

    • Germany is a pawn who created Israel, America is controlled via proxy through the State of Israel.
      The whole thing is about to go off….something big does seem to be around the corner. A massive bubble fiat is about too burst.

      China it would seem, to be the “code” writers, lurking in the shadows…consider the forbidden being finished in 1420, and the start of the rebirth phase.

      Kind of humoroess Dr Frankenfurter singing about being caught with a flat and “babies” don’t you panic too Brad and Janet.

    • You are arguing essentially the same view as I have been arguing, namely, that the current European financial crisis is in part geopolitically motivated, to keep Germany in the Eurozone and EU.

    • Most of the assets were gone by the end of the war. When the U.S. entered the war the assets were exiting Germany. Just look at the stock markets in Europe. And the bank accounts being opened the Switzerland. Bonds prices went up when the U.S. got involved because everyone knew Germany would lose if the U.S. got involved. The real money was with the German Industrial Giants that were world wide in business.
      You will never get a full picture of what happened unless you follow the SIS and the X2 project of safehaven. Which by the way is still mostly classified. All this is part of the Economical Warfare that England, Germany and the U.S. were involved in against Russia. Sending the U.S. printing plates to Germany to let them print money was part of this same program. It is said that it cost the U.S. taxpayer over $2B. When Hover went after Harry D. White claiming he sent the plates to Europe. Harry just happened to die.

      Point being, Germany and the Eurozone are trying to create a safe haven currency to help the U.S. compete with China. Otherwise China will end up controlling the mineral resources of the world.

      I do not understand Jedi talking about China in 1492.

      To JHM, the Euro is a Bundesbank operation.
      What gold was in the salt mines is what the industrialist left for Hitler.
      From 1945 to 1949 the Allies controlled Germany. All the gold was used for war bills according to the London Debt Accord.
      Maybe this will help.
      Germany had banking trouble in the late 1800’s. They had two major changes. One in 1910 and the other in 1925. After WWI with the hyper inflation Germany was broke. But the German companies were very, very rich. They dealt in money from many countries.
      To keep the communists out of Germany the Dawes Plan was formed. Part of the agreement was Germany had to change it banking structure. Which it did.
      After Hitler took over, he changed it back to the old system.
      After WWII the Allies changed it back to match the U.S. system. Which by the way was built on a much older German banking system.
      There is a lawsuit by Dr. Joh Levy against the Vatican. The Vatican sent its gold to New York. But it seems the Vatican bank help Germany move its gold out of Germany. The Bundesbank nor the Vatican will release any details.
      As far as unpaid bills from 1945. The only bills the New Germany (FRG) has to pay is according to the London Debt Agreement. Any gold found would belong to the old Germany which is no more, and would have to be used to pay WWII war debt.

  12. So they did with the gold what they did with the houses??? These people have gone well beyond nation wrecking, this time. lol

    Wait till the EBT card runs out, then the liberal’s diversities will come a knock, knock, knocking and it will be burn, baby, burn.

    • When you fail to make payments on your automobile, they send in the tow-truck. In this case; for whatever reason, it’s Kingdom Towing and the tow-truck is the war machine.

  13. So now it’s the US Treasury as the power behind the US Federal Reserve? And the Treasury is making sure that bankers get more return on bonds, and all of the inflation this Treasury control of the Fed is supposed to hedge is caused by a small war. There be some problems with that tale.