Banksters

THE LATEST THEORY ON THE GERMAN AND FED GOLD

July 15, 2013 By Joseph P. Farrell

If you've been following the German gold story, or for that matter, the gold story in general, here's the latest theory about where it went and how it got there, courtesy of King World News:

Game Over - “It’s All A Farce, The Fed & German Gold Is Gone”

Now this raises all sorts of questions, and I will try to summarize the ones that bother me. The first problematic, as far as I can see, concerns (and please pardon the expression) gold buggery itself. There is a prominent school of economics that holds, of course, that gold and silver are the only real foundations for "sound money."  I'm not here to debate one way or another about that, because I do think that proponents of the idea have a point. But, as this article observes - whether or not its allegations actually are true - one can easily steal a country's "monetary soundness" by melting down its gold (and/or silver) and then stamping it with your very own special corporate or country logo. It's a game as old as culling and clipping coins, and banksters have been playing it for centuries. Indeed,in a certain sense, bullion lends itself much more easily to such shenanigans, especially if it is circulating in actual coinage, an unlikely prospect in today's modern world, with transactions increasingly being conducted electronically.

The second problem here is the implication of the article, for it clearly implies that China is behind the latest manifestation of "culling and clipping," only in this case it isn't culling and clipping at all, it's the literal melting down of other nations' gold and then re-stamping it as one's own. The real problem, though, isn't China, it's the Fed, which had the custody of the USA's and Germany's gold. In other words, China would not have been able to melt anything unless someone had first authorized the transfer of the bullion in the  first place.

The third problem is the re-hypothecation itself. I have been arguing recently that the real story behind the Snowden affair isn't the fact that the NSA spies on...well, just about everyone. That's old news folks and I suspect we all know it. The idea that the U.K., U.S.A., France, Italy, Germany, Japan, Russia, China, India or any other major power would not use its vast technological resources to spy on the competition and everyone else is just plain naive.  But the NSA's capability, if public reports are to be believed, now lie in the zetta-bytes of storage and processing power. An immense capability. It is also a capability that would allow that agency, better than any other entity in the world, to have a very clear idea not only of the actual amount of gold in existence, but also to have a very clear picture of the re-hypothecation, and of who would ultimately hold final claim on any bullion.

I've been advancing the idea over several blogs and some books that the actual amount of gold in existence my be much larger than any publicly revealed or stated figures, perhaps by as much as an order of magnitude. Recently I also pointed out that scientists have figured out a way to "stretch" gold, i.e., make the same amount of gold do double duty by alloying it in unusual fashion with - of all things - proteins, in a kind of "alchemo-mineral-animal" fusion, a form of alchemy. Applied to the gold supply en masse it would obfuscate those figures even more.

Then, of course, there's those stories about "monatomic gold," the gold that has not only been melted but actually consumed in extraordinarily high heat, which, so the story goes, reduces it to a fine white granular powder, one in which the chemical properties of the element remain, but the mass is reduced almost 44%. Additionally, so the story goes, the powder also reduces the mass of things it is in contact with. It's the white powder Philosophers' Stone of the alchemists. It's some of the exotic matter sought by theoreticians. And, if the stories are true, that mass-loss property would perhaps signify the real reasons gold is so valued: it's a gateway to "anti-gravity," even if only in the sense of allowing an exotic state that can be studied for its putative abilities to manipulate or alter mass.

So, the final high octane speculation of the day: perhaps one should look not only to China, but also perhaps off world, for some of that missing gold. And perhaps, too, the stories are the reasons that Russia and China appear to eager to buy vast amounts of the stuff, and why Germany wants its gold back so badly. After all, the article indicates this is a "strategic initiative" for China, but one wonders if just the economic aspects are the entire sum of the matter.

In short, it may have nothing whatsoever to do with "sound money."

But then again, it just might, for if the stories are true, then maybe it functions as a kind of "interplanetary petro-dollar," the basis of commercial exchange in markets we can only imagine.

See you on the flip side.