Could put a rocket under NST. Been following this story for...

Could put a rocket under NST. Been following this story for quite some time.

From KWN:
“I think the Germans felt as though they had to say something about repatriating their gold, and we’ve seen a bunch of other countries in much smaller amounts do this as well. I think the Bundesbank felt that with the focus the Germans have on monetary prudence, they felt they had to say something.

So they made the statement that they were going to get a portion of their gold back from the United States. But since that time their repatriation has been overrun by a series of events, especially the fact that the gold that is supposed to be on deposit in the United States just isn’t there. It’s not in the U.S. vaults because it’s gone.

So now there is this attempt to put the genie back in the bottle. Well, it’s one thing to attempt to put the genie back in the bottle, but it’s another thing to do that. So they have resorted to Play No. 1 of central banks, which is just to be quiet about the situation. But there are now too many guys looking at this German situation and the announcement that they have gotten back only 5 tons of gold has left them with egg all over their faces.

Again, the only defense for German central planners has been silence. As I said before, that’s fine for a while. But silence tends to get more and more people curious because there is no reason for silence when a central bank is supposed to be operating for the citizens of a country it’s based in.

And clearly some of these things that go on at central banks are counter to the best interests of the people residing in those countries. I think Bill Fleckenstein has been very consistent in his views on this. I agree with him that central banks are the cause of all these bubbles. So I don’t think there is a chance in hell that all that German gold is sitting in the vaults of the United States where it’s supposed to be. And I certainly don’t think the exact bars Germany deposited some 50 or so years ago are still in place.

But the problem the United States has is that with the gold the central banks and the agent bullion banks who have leased out that gold over the years, they all have a vested interest in not scaring foreign holders of gold that is supposed to be safely stored in the United States. So if we do get to the point where gold can’t be delivered, as long as everybody keeps quiet about it, maybe nobody will panic.

But ultimately entities who are not in the ‘club’ will want their gold back and they are going to start making some noise about it. At that point they will have to find the gold somewhere. And if all that gold is in places where it’s tightly held, it will be an interesting situation to play out.”

Eric King: “I agree with you, Grant, that obviously the German gold is not in the vaults of the United States, which is why Germany has received only 5 tons back and the bars did not match those that were deposited in the U.S. in the first place. But William Kaye has accused the United States and its disinformation agents of lying to people by spreading the ‘farcical’ claim that the entire 8,100-ton U.S. gold hoard is still safely vaulted in the United States.”

Williams: “If you do look at the numbers in the gold market, it’s hard to see how the U.S. gold hoard of 8,133 tons that is supposedly sitting safely in the vaults has not already been mobilized as part of this price suppression scheme. So I don’t think there is any chance that the gold is all there in U.S. vaults.

I think the fact that an audit is fought so hard by the guys who are running this operation just screams louder than anything that the U.S. gold is no longer in vaults in the United States. It’s the simplest thing to have a handful of journalists taken into the vaults as a full audit was being done to show the world that the stacks of thousands of tons of gold bars are real and still in the vaults. Let’s face it -- the journalists are not going to steal any because they would be surrounded by armed guards.

So the fact that no one is allowed to see the gold stored in the U.S. vaults and it hasn’t been audited since Eisenhower was in office is the biggest damnation of the lies being spread in the gold world that the U.S. has all its gold.”

Eric King: “Along those lines, Grant, Germany asked to see its gold that is supposed to be safely stored in the vaults in New York and Germany was essentially told, ‘Don’t even show up at the Fed because we are not going to let you enter the vault.’”

Williams: “Yes, these are the type of actions you see in a desperate situation. Germany was told this was for ‘security reasons.’ So you can say the stupidest things and as long as everybody puts his fingers in his ears and just takes things at face value, the U.S. Fed can just keep doing this stuff.

But then it got to the situation where the Germans essentially said, ‘We will be in town next week and we want to see our gold.’ That was the point where the U.S. Fed was backed into a corner and had to say, ‘No, you can’t see your gold,’ which was just farcical. The U.S. was saying to another country: ‘The core of your asset -- I’m afraid you can’t see it.’ [LAUGHTER.]

There is no possible reason why the U.S. would not let the Germans see their gold. It’s not ‘a security issue.’ It’s Germany’s gold. The whole thing is preposterous. However, it is a security issue if the vault is empty or damn near empty. Then you can’t let the Germans in because it really is a security issue. So when a country is backed into a corner the way the U.S. was with regards to the German gold, well, desperate times call for desperate measures.”