Babylon's Bankers


While hurricane Harvey has been doing its devastating merry-g0-round in southern Texas, while NASA has been planning a "controlled venting" of the Yellowstone caldera, while US Navy ships are being rammed and "incompetent crews" are being blamed, and while even more missing money is showing up, the gold story just became a little more bizarre if this article shared this week by Mr. S. is any indicator:

The article is about Dutch Fort Knox gold researcher Koos Jansen, and his attempts to get a straight answer from various US Government departments about the state and size of the US' gold reserves. It is anything but a straighforward "the gold is all there" reassurance from Treasury secretary Mr. Munchkin Mr. Mnuchen:

Here is more from Koos Jansen analyzing the FOIA release of documents earlier this year which revealed new information on Fort Knox:

What is worrying is that the reports now in my possession reveal the audit procedures have not competently been executed. Combine that with the fact the documents are incomplete and redacted, and the result is suspicion of fraud. In this blog post we’ll have a first critical look at the reports and the problems to be found within.

It should be clear that the US Treasury (owner of the gold), US Mint (main custodian), Federal Reserve Bank Of New York (second custodian), and the Office Inspector General of the US Treasury (head auditor), are reluctant to disclose information about the audits of the gold at the four largest depositories that store over 8,000 fine metric tonnes. Consider that the most seasoned gold analysts aren’t even aware this gold is audited.

When one turns to the actual mechanics of these audits, one runs into "Schachtian problems." Why "Schachtian"? Well, recall for a moment that interwar Reichsbank president Hjalmar Schacht, in his memoirs Confessions of the Old Wizard recounts a visit he made to the New York Federal Reserve's bullion depository in 1928, when the then governor Benjamin Strong informed him that the depository was unable to locate Germany's gold. Schacht records that he simply smiled and said "That's ok, I know you're good for it." One suspects that Mr. Schacht was not saying more than he was saying, and one suspects that this might be connected to those theories that he received such a light sentence at the Nuremberg tribunals because he had blackmailed the west's "powers that be." While I've never seen nor read any speculations that flesh out those allegations in any depth, I've often wondered if this incident was somehow connected to it.

So what are the "Schachtian problems" that Mr. Jansen has run into? Here it's best to let him speak in his own words:

However, in 2016 I embraced the motivation to push through and find out how many gold bars were counted, weighed and assayed in between 1993 and 2008, when allegedly the last series of physical audits was conducted. Not surprisingly, zero US government departments could provide me the information I was looking for, but through certain FOIAs I obtained leads to submit new FOIAs, and so on 12 Augustus 2016 I demanded, inter alia, the “memoranda submitted by the US Mint Director’s representative regarding audits of the Mint Schedule of Custodial Gold and Silver Reserves to the Chief Financial Officer drafted from 1993 through 2008”. The Mint replied this request would costs me $3,144.96 dollars because it would take 40 hours to search the respective documents, 8 hours for review, and additional costs would be incurred to duplicate 1,200 pages. I thought this was hogwash – 1,200 pages seemed out of proportion for such memoranda, how hard can it be to find a few pages and how did they know it were going to be 1,200 pages if they had to search 40 hours for it – but decided to start a crowdfunding campaign to collect the money.

Having caught out the latest "magic bullet" explanation, the article goes on to illustrate the shoddy procedures in evidence in the audit:

First, they barely weigh any gold when they inspect the gold:

We need to discuss the sample size of the gold verification. In 1998 at Fort Knox 19,800 gold bars were inspected but only 105 of them were weighed and assayed (exhibit 7.2). That’s not much in my humble opinion. In any case, I expected a higher sample size.

Secondly, for the tiny bit of gold they did weigh, the scales they were using were not accurate:

When all parties tried to reconcile the weight of samples on 22 and 23 July 2004, they found out, “the scale was reading at ounces rather than fine troy ounces”, because, “a setting on the scale had not been properly changed”. Allegedly this is what caused alternative readings in the books of the Director of the Mint’s Representative and the OIG’s Representative. And presumably because nobody could figure out how to use the scale correctly they decided to postpone re-weighing the samples until 24 August 2004. This failure of how to use a scale is a colossal disaster for the credibility of the Deep Storage audit procedures.

Let that soak in:  the audits consist of small samples, leaving one to question whether or not the samples are truly representative of the deposit, and once this small sample is weighed, it's weighed on inaccurate scales! One recalls in this connection the attempts by Congress in the 1970s to conduct a thorough audit; unfortunately, it was anything but an audit, as they were allowed into only one vault in Ft. Knox. The other vaults could have contained anything: air, tungsten, or missing paintings stolen in Europe during World War Two. We simply don't know.

So what's in Fort Knox? More than anything else, the depository contains a long history of secrecy and data obfuscation.

And where have we encountered that before? The budgetary process, the obfuscations surrounding the bearer bonds scandals, and, of course, Herr Schacht, who, whatever else one might say about him, at least pointed out the problem began in 1928...

Sounds an awful lot like a hidden system of finance, and that what may lie at the root of the obfuscation is re-hypothecation...

...and lots of it.

See you on the flip side...


  1. An interesting historical reflection involving Peter David Beter (former legal counsel to the American Gold Association and the Import-Export Bank of the U.S., appointed by JFK). Great archival footage. The charade continues to unravel!

    I’d like to introduce you to Mrs. Louise Boyer, a very decent lady and a highly competent secretary. So competent, in fact, that she spent nearly three decades working as the personal secretary of one of the most powerful men in America, Governor Nelson Rockefeller.

    From rubbing elbows with the high society of the world, to arranging his personal meetings with national and international leaders, coordinating his political events, or seeing to the details of his extensive travels, this was obviously an intelligent, capable, and steady lady.

    At least, she was. Until she decided in the summer of 1974 to contact a New York newspaper and tell them that she was privy to explosive information regarding the Rockefeller family arranging with the Fed for large amounts of US gold to be sold and shipped to buyers in Europe, reportedly at the official price of $42.22/oz, while gold on the open market was selling for somewhere around $175/oz.

    Three days after the publication of the article, Ms. Boyer was found dead, having “apparently” thrown herself through the windows of her tenth-story New York apartment and plunging to her death.

    The elaborately concocted story that followed, attempting to convince the public that the Fed still held the US’ gold, is below:

  2. The solution is simple: they are laughing at us. This is the same run-around the researchers got when prying-into the alphabet-agency files on Roswell. The PTB are laughing at us. The ‘incorrect scale’ fiasco was not real; the banksters are laughing at us.

    The gold is long-gone, except for plausible-deniability ‘show’ amounts. There is no other RATIONAL explanation for the stonewalling and obfuscation. Otherwise, we would see a comprehensive inspection and audit. The PTB are relying on a “Trust in the Gov’t” meme by the public which is quickly evaporating.

    Ironically, the PTB did it to themselves. Kennedy and the Warren Commission started it off. Then, the Twin Towers and the 9/11 Commission Report finished it off. Nobody who is faintly awake believes the gov’t (the deep state side) any more. This is feeding-back to Fort Knox and the Fed. “Believe Us” just doesn’t work anymore. Prepare for it to get very ugly, when we get the first whistleblower (who lives)…

      1. (Note that several articles have obfuscated the amount of gold having been repatriated from the Fed to Germany. They mush-mouth it as ‘Germany got all the gold back it wanted’, while the reality is Germany only got one-third of it’s Fed-held gold released back to it. Germany wanted ALL of it back, but ‘settled’ for one-third back. Hmm…)

  3. One question what are they really doing with all this wealth that they hiding the truth about the gold reserves at Fort Knox. And what about the other gold depositories around the World are they missing gold bars or are the bars just gold plated as well.

    1. Yep, common core strikes again. One simply cannot read the scales operating instructions and comprehend them anymore.
      Consider this; the interest on the national debt is to be paid to the central banks in gold. With a $20T national debt, it would take all of the gold in Fort Knox to repay just part of the interest. Whether the gold is there or not is a moot point as it most likely doesn’t belong to the USSA any more. Why should the owners of that gold allow an audit of their property by someone who has no interest in it?
      The perfect Ponzi scheme. Loan the USSA fiat “money” and have the interest repaid with real currency. They probably could care less if they ever get the principal back, the interest alone would be worth the loss of, well, nothing. Now apply this same scam across the entire earth with every central bank.
      We are suffering under the Golden Rule: He who owns the gold makes the rules.

      1. U got it. The ‘creditors’ have made off with the ‘secured collateral’ long ago, and the shackles of compounding interest have been chafing the national and as you indicated, global population ever since….
        “It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congressional session June 5, 1933 – Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only” United States Congressional Record, March 17, 1993 Vol. 33

        1. And on that note…
          “Every effort has been made by the Federal Reserve Board to conceal its power. But the truth is, the Federal Reserve Board has usurped the government of the United States. It controls everything here; and it controls our foreign relations. It makes or breaks governments at will. No man, and no body of men, is more entrenched in power than the arrogant credit monopoly which operates the Federal Reserve Board and the Federal Reserve Banks. These evildoers have robbed this country of more than enough money to pay the national debt. … Faithless government officers who have violated their oaths of office should be impeached and brought to trial.” — Congressman Louis T. McFadden before the House of Representatives, in the midst of the Great Depression, 1932.

Comments are closed.