June 14, 2012 By Joseph P. Farrell

My friend Mr P.T. sent me this as I was scheduling these few weeks' worth of blogs, and I just had to share it, because in its own way, it's shining a light once again on all those stories of fake gold-backed U.S. Federal Reserve bearer bonds that seem to keep being seized:

Don Coxe - Emergency Fed Meeting & Gold Backed Bonds

Now, as I read that, I thought, "where have we heard this before? And what might it all mean?" Well, obviously, from the title of this little musing, we've heard of this before in connection with all those allegedly fake gold-backed US Federal Reserve Bearer Bonds that seem to keep popping up, first with the Japanese Bearer Bond scandal in Italy, then in Spain, then back to Italy.  I've been arguing the speculative hypothesis that this whole phenomenon may represent an actual hidden tier of system of finance. After all, one doesn't counterfeit four dollar bills, one only counterfeits something that actually exists.

Now we're being told a new system of finance might be in the works with, guess what, gold-backed bonds. Indeed, I blogged previously about this subject, with Germany wanting to issue such bonds against the surrender of various nations' gold reserves and their national treasures (who said the elites aren't trying to gobble up antiquities? Shades of the Nazi Ahnenerbedienst, on a much larger scale?).

Now, there was always a problem with the whole bearer-bond scandal that bothered me, and it's a problem that has also bothered some of you, namely, the Federal Reserve, at least officially, doesn't issue bonds, the U.S. Treasury does, and the Fed buys them. So who's buying these alleged bonds, and with what? Well, the answer to the last question is obvious enough: with gold.

But there isn't enough gold to back all those bonds... and one suspects, not enough gold to float all that European debt either, unless (1) there's a heck-of-a lot more gold in existence than we've been told, or (2) someone is making gold in vast amounts (see alchemy here!), or (3) a bit of both.

So we go back to the fundamental statement in this intriguing article:

"This European gold bond is huge news.  When asked if this was bringing gold back into the financial system, Coxe responded, “Yes, exactly.  I did conference calls with people in our organization about this.  I said, ‘Something like this could be unfolding because this crisis is developing so fast.’”

"When asked if this event would begin to trigger a significant revaluation for gold, Coxe replied, “At this point, how they would do it, and whether there would be any revaluation, what it would be is security for issuing specific bonds.  But, of course, once you do that, what you do is you break the virginity of the system.

"Then you have to start looking at revaluations, you’re right.  All of that will come.  My own take is that I think there is a very good chance of this ... that within the next three months we will find that something like this has been done for some of the countries in the eurozone.

"'That means that gold will have been moving back into the (financial) system.'”

Really now... how much gold? Whose gold? Once we get back to those two questions, we're right back square in the middle of all that Operation Golden Lily gold seized by Japan, and all the shady postwar dealings associated with it... and all the covert slush funds that were set up in conjunction with it...

...and once we admit that possibility, then we're looking at a potentially volatile financial situation, one that the goldbugs would have us believe is as stable as the metal and the quantities of that metal in existence.... and that's the problem.