Are the central banks running a fractional gold system?

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investorzzo's picture
investorzzo
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Are the central banks running a fractional gold system?

I can't stress how important this is to read. This might bring down the whole system. If this can be proved it could unravel the whole banksters cabal......

http://alasdairmacleod.blogspot.com/2010/12/are-central-banks-running-fr...

Johnny Oxygen's picture
Johnny Oxygen
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Re: Are the central banks running a fractional gold system?

Yep

Unfortunately that wouldn't surprise me at all. In fact I would be surprised if that wasn't the case. I mean if the BIS, IMF and EU have no problem with printing fiat currency in a reckless manner then why would they hesitate to sell gold they don't have?

Saffron's picture
Saffron
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Re: Are the central banks running a fractional gold system?
Johnny Oxygen wrote:

Yep

 I mean if the BIS, IMF and EU have no problem with printing fiat currency in a reckless manner then why would they hesitate to sell gold they don't have?

my guess would be because they *do* understand that fiat money eventually always tanks and so they'd want to make sure they don't tank with it. This is assuming they are greedy but not stupid.

But considering when all hell is breaking loose around you, being rich just makes you stick out like a sore thumb, maybe they are stupid (*and* greedy.)

jumblies's picture
jumblies
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Re: Are the central banks running a fractional gold system?

I'm not involved or even really conversant in the financial/banking world, but I'd read this story a while ago (it was posted here or somewhere similar) and I'd already assumed this was going on. In other words I thought "of course they are".

Whether it was in Mike Maloney's book or something Max Keiser had said, I'm led to believe that 60% of Germany's 3.5 tonnes of gold reserves is held in the US. If that's the case, and that the 8+ tonnes of un-audited gold the Fed has in Fort Knox, given the wild and exciting manipulation of the gold market over the years I've really wondered whether a lot of the gold shifted around is actually the US and German stockpile. If there's no audit, why not sell (uh, loan/lease) 90% of your physical gold to another country? You still retain 100% on your books, but someone else can put 90% on their books giving you 190% and therefore driving down the gold price. And if it's not audited, who would know?

Hell, why not have the US Govt sell some bonds to the Fed, so the Fed give the US Govt some "cash" that the US Govt uses to lease some of the Fed's gold? Then the Fed gets to charge interest on money it magicked up for non-existent gold that the US Govt (ie. taxpayer) leased. This is consistent with how banks operate, whether it's a foreign or domestic customer.

Magic gold or currency, I fail to see the difference here. Fractional reserve? Sure, why not!

 

investorzzo's picture
investorzzo
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Re: Are the central banks running a fractional gold system?

Interesting that right after I post this, news comes of another FED gov. talking about the Gold standard. Could they be telling us something, like getting us ready for a basket of currencies using gold as part of it? Even if they can pull this off, inflation in America will be huge! We will no longer be the reserve currency. Jon

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/1/6_Jim...

Wendy S. Delmater's picture
Wendy S. Delmater
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Turkey Targets Gold

hat tip to Zero Hedge, from the Wall Street Journal

Comments Tyler Durden: "In other words, "sequester" the population's hard assets (politely of course), and convert these to paper to fund the country's creditors, both foreign and domestic. Mostly foreign. In other words, Southeast Europe is slowing becoming the staging ground for the 21st century equivalent of Executive Order 6102, where first Greek, and now Turkish gold, is about to be pulled from point A to point B, where point B is some top secret vault deep under London."

jumblies's picture
jumblies
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Bundesbank Confirms German Gold Held By FED, BOE and Banque

http://www.zerohedge.com/news/bundesbank-confirms-german-gold-held-fed-boe-and-banque-de-france

Bundesbank Confirms German Gold Held By FED, BOE and Banque De France

Germany's Bundesbank confirmed yesterday that the German gold reserves are held overseas by the Federal Reserve, the Bank of England and the Banque de France.

There has been a lack of clarity and transparency regarding the German gold reserves, as there are with many other nations gold reserves, and this had led politicians and journalists seeking transparency.

The Bundesbank has previously resisted calls for a more transparent accounting of the German gold reserves.

So the Bundesbank doesn't want to be open with the German people about how the German people's gold holdings. If all is above board then why not?

The Bundesbank said it has complete confidence in valuations and the security of its gold holdings at other central banks and said that "there is no doubt about the integrity and the reputation of these foreign central banks where the gold is held."

So this central bank has complete confidence in the other central banks, even though none of them want to be transparent (ie. honest) about their positions. One question though, how do they know those banks have the gold and that all is well?

"From these central banks, the German Bundesbank annually gets confirmation of the gold holdings in troy ounces as a basis for its accounting," the Bundesbank’s statement said.

Uh oh.

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