I hate my country:
after politics shifted in Chancellor Angela Merkel’s coalition, the government has concluded that stashing half its bullion abroad is prudent after all.
“The Americans are taking good care of our gold,” Norbert Barthle, the budget spokesman for Merkel’s Christian Democratic bloc in parliament, said in an interview. “Objectively, there’s absolutely no reason for mistrust.”
But in reality the gold has been sold into the market. That gold winds up in places like Beijing. But before it gets to Beijing it frequently goes through Hong Kong. And when it goes to Hong Kong, it goes to our refiner, the same people we use. And by the way, Eric, we may own some of the gold that Germany thinks that they own. But Germany will never see that gold because it’s safely stored in my account (and) for our investors at the Hong Kong International Airport.
Regarding that gold, which could have had the symbol of the Bundesbank on it when it arrived in Hong Kong, a leading refiner, one of the biggest in the world that deals with the People’s Bank of China (PBOC), certified that, ‘Yes, we’ve got gold available that we can deliver. We’ve melted it down, we’ve tested it. It may have had the Bundesbank symbol on it when it arrived, but now it’s melted down .9999 (fine) gold.’
That’s how it works in practice. So the Fed gold, that Americans think is theirs, is gone. The gold that the Germans have been told they will get back in 7 years, they’ll never get back because it doesn’t exist anymore (at the Fed). I own it. The People’s Bank of China owns it. The Reserve Bank of India owns it. The central bank of Russia owns it. But the people of Germany (and America) don’t own it.”
Eric King: “So they (the refiner) have admitted then that the Bundesbank gold, they get those bars in and they just melt them down?”
Kaye: “What they’ve done is confirmed that everything I’ve told you is correct. They get gold (bars) from all over the place, including major central banks, including the symbol of the central bank on them, and they melt them down.”
Eric King: “But they’ve confirmed the Western central bank gold is where it comes from in many cases?”
Kaye: “Reading between the lines, and you don’t have to read too much between the lines, it’s all a farce. The gold is gone. It’s been hypothecated and rehypothecated. It’s gone. Not only do the Fed and the U.S. Treasury not own 8,000+ tons, they probably own nothing.”