In spite of assurances from the Bundesbank to the Federal Reserve that the gold audit questions Germans and the German government are raising will eventually go away, it doesn't look that that will be happening any time soon, as new questions continue to be asked on the internet. Here, for example, are two crucial articles, and they deserve a very close look and analysis. Indeed, in the latter article - long but crucial - there is a detail that connects a great many dots, if you know what dots there are:

Some Follow-Up Questions For The Bundesbank, And Its Gold

James Turk - The Entire German Gold Hoard Is Gone

Let's begin with a few quotation from the first article and note what they mean:

"1. Thiele says:

"By 1956, the gold reserves had risen to DM 6.2 billion, or 1,328 tonnes; upon its foundation in 1957, the Bundesbank took over these reserves. No further gold was added until the 1970s"

"This is factually incorrect. From a documented source such as Timothy Green's gold reserves report from 1999 (source), we find that German gold reserves were 1,328 tonnes in 1956 and contined to rise every year until 1969 when they hit 4034 tonnes, an increase of 200% since 1956! Offical German gold in 1970 was 3,537 tonnes and declined to 2,963 by 1979. Since then it has increased by just 400 tonnes."

In other words, Thiele is confirming - from the mouth of a central banker - that theme which i have hypothesized here over and over: either the central banks do not know the actual amount of gold, or those amounts are being deliberately obfuscated to cover up a massive fraud. This seems to be confirmed by the next statement:

"2. Thiele says:

"At the beginning of the last decade, we brought 930 tonnes of gold to Frankfurt from London and subjected it to a painstaking inspection. Part of the gold was melted down in order to create new bars which conform with the “Good Delivery Standard”.

"Fact: All gold stored at the Bank of England has to be London Good Delivery Standard. Bars that do not conform are not accepted. That is how the LBMA system works. There is an accepted refiner list. There would be no need to melt down anything from the Bank of England unless the Bundesbank had been duped with coin bars or similar and/or does not have faith in the BOE in the first place." (Emphasis in the original)

Bingo! Ding ding ding ding ding! "Tyler Durden" at Zero Hedge is correct: what Thiele's admission in fact means is that the Bundesbank had been defrauded and that the fraud included the Bank of England as either the transhipment point, or point of origin. For reasons I won't get into here, I believe it to have been the transmission point.  I submit that it is right here that we have the real reason for the concern about the gold reserves in Germany: someone in the German government - someone perhaps even familiar with the 1928 story of Hjalmar Schacht - knew of this fraud and what it portends, and what it portends is nothing less than massive.

Now let's turn to the second, and much more lengthy article. And I will simply present a few quotations, and for your benefit, the ESF refers to Exchange Stabilization Fund, which is, as the author of this article avers, one of the smoking guns:

"James Turk 2001 - This past December in "The Smoking Gun" I provided substantive proof that the Exchange Stabilization Fund was intervening in the gold market. From publicly available reports prepared by the Federal Reserve, I established that the weight of gold held as a component of the US Reserve Assets has been changing, and that these changes – some of which are of significant size – result from activity by the ESF. These Federal Reserve reports conclusively demonstrate that the ESF has been intervening in the gold market since at least 1996.

"Though these Federal Reserve reports make clear that the ESF is involved in the gold market up to its 'earmarks', a lot of people remain skeptical. I don't know why that is. It is worth noting that many of the most obstinate skeptics who deny US government involvement in the gold market live overseas and have little, if any, experience or understanding of the way the US government really works. But even Americans find it difficult to accept that the US government intervenes in the gold market. Ironically though, they readily admit that the government intervenes in the debt markets, foreign currency markets, and according to a growing number of people, even in the US stock market. It is therefore most baffling that they do not concede the ESF's involvement in the gold market."

Now consider this:

"CHAIRMAN GREENSPAN. Could I just formally respond to Governor Lindsey? There is a question here of whether or not the amount the United States Treasury gives us has to be appropriated funds, which I think is really where our examination of the issue has to be. In examining the take-out, we ought to make certain that we talk to them with respect to the question of what happens if they do not get the appropriated funds.

"MR. TRUMAN. Mr. Chairman, the Exchange Stabilization Fund does not have appropriated funds.
CHAIRMAN GREENSPAN. Are we going to be getting a take-out from the Exchange Stabilization Fund?
MR. TRUMAN. I think that is what is in the program.
SPEAKER(?). That is not the same as the Treasury.
MR. TRUMAN. Even if we didn't, the precedent in the 196Os – I think there was a question then about whether the Treasury could engage in foreign exchange operations outside of the ESF – was the use of Roosa bonds in the 1960s. The Treasury floated Roosa bonds to obtain foreign currencies and used some of those currencies to take us out. That did not involve appropriated funds. That was treated as a debt-management operation.

"The above passage confirms what we already know, but many people refuse to admit. The ESF is a slush fund beyond Congressional oversight." (Emphasis added)

Just in case you want to know, the Exchange Stabilization Fund was established in 1934 as a result of - you guessed it - FDR's confiscation of US gold, and thus, as the author correctly deduces, this is a slush fund directly beholden to the American executive and to the financial oligarchy.

In short, you're looking at part of a financial mechanism that is completely off the books... you're looking at something that has the potential for massive fraud, and you're looking at something that could fund a lot of covert activity... and indeed, may have been doing so for a very long time...

... see you on the flip side.

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".


  1. Yaj on November 16, 2012 at 11:17 am

    The idea of hidden gold exchange is all well and good.

    But it still doesn’t explain why gold is valuable.

    Also re: James Turk: He sure appears to have a lot of interest in increasing the value of whatever gold positions he holds, so his data would of course make these claims.

    Gold can be made. So who really cares about Turk or the ostensible dealings of this exchange?

  2. Robert Barricklow on November 16, 2012 at 10:47 am

    This scam is your scam. This scam is my scam. This scam was made for you & me.

    And indeed it was that way from the get-go.(Babylon’s Banksters)

    The magic, to the scam, is all about art concealing art. But the magic wand’s(GOLD) true power is in making the hand that weilds it(CONTROLS IT) appear to be otherwise empty.

    Money needs to be based upon something other than gold, oil, or anything “they” could “control”.

    What I’am saying, is that they’re end game, is to revert to the gold standard. “They” would have not only the lion’s share; they would “control” it.(probably, in essence, as a one-world currency)

    So this “in fighting” is propbably about which “faction”, ultimately controls it(of which the people are just spectators, with no say in the control of their labor).

    A paradigm shift is needed to put money in its proper place, as a servant of mankind.
    Not it’s Master.

  3. Nidster - on November 16, 2012 at 9:43 am

    “– someone perhaps even familiar with the 1928 story of Hjalmar Schacht – knew of this fraud and what it portends, and what it portends is nothing less than massive.”

    “a financial mechanism that is completely off the books…you’re looking at something that has the potential for massive fraud….”

    On the Richter Scale what does “massive” mean? Or rather, where would it fall between ‘a bump in the road’ and ‘Apocalypse Now’?

    • bdw000 on November 16, 2012 at 10:47 am

      No way to tell: “they” have kept a lid on this sort of thing before, they can probably do it again (though of course I cannot know the future).

      It is “massive” in the sense that regarding the world financial system, “everything you know is wrong” (to quote a comedy album from the 1970’s).

      What will the actual consequences be for the world?? Who knows. Could be anything from a worldwide great depression or worse, to nothing at all.

      My guess: nothing at all. TPTB probably do not want the whole system to collapse, so they won’t let it.

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