The entire United States gold hoard, including gold supposedly held at the Fed for other countries, is now gone, – told the former US Treasury official, Dr. Paul Craig Roberts to the site King World News. This is very bad news for Germany and other countries which have trusted the Fed to safely store their gold. Dr. Roberts comments the recent report on Bloomberg about Germany supposedly being happy with storing their gold at the New York Fed and declaiming to transfer it to Germany: “Clearly what that means is that the United States doesn’t have the gold and cannot deliver it — and has forced Germany to come to terms with that, and to stop asking for it since it can’t be delivered. And so they have told their puppet state to shut up and come up with a different statement that they are content to leave it (their gold) with the Fed. Perhaps they had to bribe them or give them other advantage. But, essentially, they have stopped any German agitation for the return of their gold because it can’t be returned.”
So the implications are: nobody will get it back. People in the gold market have long suspected that the Fed used up all of the U.S. gold trying to suppress the price of gold over the years. And then after they ran out of U.S. gold, they started using all the gold left with the Federal Reserve on trust. “I suspect that is true, – said Dr. Roberts, – because we have seen in recent years (especially since gold peaked at $1,900 an ounce in 2011), more and more reliance on dumping huge amounts of naked gold shorts on Comex, in order to knock the gold price down and suppress it. This way they protect the dollar from quantitative easing by shorting the paper gold market, the futures market. If they still had stocks of gold that they could lease to bullion dealers to sell on the market, they would still be using that technique”.
Paul Roberts assumes that the gold stocks ran out some time in 2011 because since that time the gold price were controlling with naked shorts during market periods when trading is light or non-existent. So it’s a safe conclusion that the supply of gold bullion available to U.S. authorities is almost non-existent. The Western central banks no longer have the metal to back up the bullion banks, as they usually do. “I think the worst part of the catastrophe will be the flight from paper currencies, – concludes Dr. Roberts. And they won’t be able to get into gold because the Chinese will have it all”.