by Wendy McElroy, Dollar Vigilante:
The US Dollar could crash at a finger snap under at least one circumstance: if the gold holdings at the Federal Reserve Bank of New York (NY Fed) are revealed to be missing. An event last week made that circumstance edge a bit closer. Austria wants to audit the 150 tons of gold it stores in the UK (some sources say 280 tons.) According to Austrian Trend magazine, “there is a rising disbelief among Austrians about the existence of the gold.”
If the bullion is not there, then a flood of audit demands could reveal empty vaults around the world. But particularly in one place. A disproportionate percentage of the world’s gold reserve is in the vault of the NY Fed. Or, at least, the physical gold is said to be there. A recent delivery of repatriated gold to Germany is reason for skepticism.
THE BACKDROP OF MIXED AND MISSING GOLD: The Federal Reserve website states, “All bars brought into the vault for deposit are carefully weighed, and the…markings on the bars are inspected to ensure they agree with the depositor instructions and recorded in the New York Fed’s records. This step is vital because the New York Fed returns the exact bars deposited by the account holder upon withdrawal—gold deposits are not considered fungible.”
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