900,000 bars of tungston coated with 1/16th of an inch of gold were traded into For Knox in the 1980's during the Clinton Era and have been swapped into various treasuries around the world. What will happen when those nations demand real gold??
Fake Gold in Ft. Knox
Fake gold bars! What's next?
It's one thing to counterfeit a twenty or hundred dollar bill. The amount of financial damage is usually limited to a specific region and only affects dozens of people and thousands of dollars. Secret Service agents quickly notify the banks on how to recognize these phony bills and retail outlets usually have procedures in place (such as special pens to test the paper) to stop their proliferation.
But what about gold? This is the most sacred of all commodities because it is thought to be the most trusted, reliable and valuable means of saving wealth.
A recent discovery -- in October of 2009 -- has been suppressed by the main stream media but has been circulating among the "big money" brokers and financial kingpins and is just now being revealed to the public. It involves the gold in Fort Knox -- the US Treasury gold -- that is the equity of our national wealth. In short, millions (with an "m") of gold bars are fake!
Who did this? Apparently our own government.
Background
In October of 2009 the Chinese received a shipment of gold bars. Gold is regularly exchanges between countries to pay debts and to settle the so-called balance of trade. Most gold is exchanged and stored in vaults under the supervision of a special organization based in London, the London Bullion Market Association (or LBMA). When the shipment was received, the Chinese government asked that special tests be performed to guarantee the purity and weight of the gold bars. In this test, four small holed are drilled into the gold bars and the metal is then analyzed.
Officials were shocked to learn that the bars were fake. They contained cores of tungsten with only a outer coating of real gold. What's more, these gold bars, containing serial numbers for tracking, originated in the US and had been stored in Fort Knox for years. There were reportedly between 5,600 to 5,700 bars, weighing 400 oz. each, in the shipment!
At first many gold experts assumed the fake gold originated in China, the world's best knock-off producers. The Chinese were quick to investigate and issued a statement that implicated the US in the scheme.
What the Chinese uncovered:
Roughly 15 years ago -- during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] -- between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day.
According to the Chinese investigation, the balance of this 1.3 million to 1.5 million 400 oz tungsten cache was also gold plated and then allegedly "sold" into the international market. Apparently, the global market is literally "stuffed full of 400 oz salted bars". Perhaps as much as 600-billion dollars worth.
An obscure news item originally published in the N.Y. Post [written by Jennifer Anderson] in late Jan. 04 perhaps makes sense now.
DA investigating NYMEX executive
Manhattan, New York, --Feb. 2, 2004. A top executive at the New York Mercantile Exchange is being investigated by the Manhattan district attorney. Sources close to the exchange said that Stuart Smith, senior vice president of operations at the exchange, was served with a search warrant by the district attorney's office last week. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchange's markets. She declined to comment further other than to say that charges had not been brought. A spokeswoman for the Manhattan district attorney's office also declined comment."
The offices of the Senior Vice President of Operations -- NYMEX -- is exactly where you would go to find the records [serial number and smelter of origin] for EVERY GOLD BAR ever PHYSICALLY settled on the exchange. They are required to keep these records. These precise records would show the lineage of all the physical gold settled on the exchange and hence "prove" that the amount of gold in question could not have possibly come from the U.S. mining operations -- because the amounts in question coming from U.S. smelters would undoubtedly be vastly bigger than domestic mine production.
No one knows whatever happened to Stuart Smith. After his offices were raided he took "administrative leave" from the NYMEX and he has never been heard from since. Amazingly, there never was any follow up on in the media on the original story as well as ZERO developments ever stemming from D.A. Morgenthau’s office who executed the search warrant.
Are we to believe that NYMEX offices were raided, the Sr. V.P. of operations then takes leave -- all for nothing?
The revelations of fake gold bars also explains another highly unusual story that also happened in 2004:
LONDON, April 14, 2004 (Reuters) -- NM Rothschild &Sons Ltd., the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.
Interestingly, GATA's Bill Murphy speculated about this back in 2004;
"Why is Rothschild leaving the gold business at this time my colleagues and I conjectured today? Just a guess on my part, but [I] suspect something is amiss. They know a big scandal is coming and they don't want to be a part of it... [The] Rothschild wants out before the proverbial "S" hits the fan." -- BILL MURPHY, LEMETROPOLE, 4-18-2004
What is the GATA?
The Gold Antitrust Action Committee (GATA) is an organisation which has been nipping at the heels of the US Treasury Federal Reserve for several years now. The basis of GATA's accusations is that these institutions, in coordination with other complicit central banks and the large gold-trading investment banks in the US, have been manipulating the price of gold for decades.
What is the GLD?
GLD is a short form for Good London Delivery. The London Bullion Market Association (LBMA) has defined "good delivery" as a delivery from an entity which is listed on their delivery list or meets the standards for said list and whose bars have passed testing requirements established by the associatin and updated from time to time. The bars have to be pure for AU in an area of 995.0 to 999.9 per 1000. Weight, Shape, Appearance, Marks and Weight Stamps are regulated as follows:
Weight: minimum 350 fine ounces AU; maximum 430 fine ounces AU, gross weight of a bar is expressed in troy ounces, in multiples of 0.025, rounded down to the nearest 0.025 of an troy ounce.
Dimensions: the recommended dimensions for a Good Delivery gold bar are: Top Surface: 255 x 81 mm; Bottom Surface: 236 x 57 mm; Thickness: 37 mm.
Fineness: the minimum 995.0 parts per thousand fine gold. Marks: Serial number; Assay stamp of refiner; Fineness (to four significant figures); Year of manufacture (expressed in four digits).
After reviewing their prospectus yet again, it becomes pretty clear that GLD was established to purposefully deflect investment dollars away from legitimate gold pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination for many of these fake tungsten bars where they would never see the light of day -- hidden behind the following legalese "shield" from the law:
[Excerpt from the GLD prospectus on page 11]
"Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss."
The Federal Reserve knows but is apparently part of the scheme
Earlier this year GATA filed a second Freedom of Information Act (FOIA) request with the Federal Reserve System for documents from 1990 to date having to do with gold swaps, gold swapped, or proposed gold swaps.
On Aug. 5, The Federal Reserve responded to this FOIA request by adding two more documents to those disclosed to GATA in April 2008 from the earlier FOIA request. These documents totaled 173 pages, many parts of which were redacted (blacked out). The Fed's response also noted that there were 137 pages of documents not disclosed that were alleged to be exempt from disclosure.
GATA appealed this determination on Aug. 20. The appeal asked for more information to substantiate the legitimacy of the claimed exemptions from disclosure and an explanation on why some documents, such as one posted on the Federal Reserve Web site that discusses gold swaps, were not included in the Aug. 5 document release.
In a Sept. 17, 2009, letter on Federal Reserve System letterhead, Federal Reserve governor Kevin M. Warsh completely denied GATA's appeal. The entire text of this letter can be examined at http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf.
The first paragraph on the third page is the most revealing.
"In connection with your appeal, I have confirmed that the information withheld under exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."
The above statement is an admission that the Federal Reserve has been involved with the fake gold bar swaps and that it refuses to disclose any information about its activities!
Why use tungsten?
If you are going to print fake money you need to have the special paper, otherwise the bills don't feel right and can be easily detected by special pens that most merchants and banks use. Likewise, if you are going to fake gold bars you had better be sure they have the same weight and properties of real gold.
In early 2008 millions of dollars in gold at the central bank of Ethiopia turned out to be fake. What were supposed to be bars of solid gold turned out to be nothing more than gold-plated steel. They tried to sell the stuff to South Africa and it was sent back when the South Africans noticed this little problem.
The problem with making good-quality fake gold is that gold is remarkably dense. It's almost twice the density of lead, and two-and-a-half times more dense than steel. You don't usually notice this because small gold rings and the like don't weigh enough to make it obvious, but if you've ever held a larger bar of gold, it's absolutely unmistakable: The stuff is very, very heavy.
The standard gold bar for bank-to-bank trade, known as a "London good delivery bar" weighs 400 troy ounces (over thirty-three pounds), yet is no bigger than a paperback novel. A bar of steel the same size would weigh only thirteen and a half pounds.
According to gold expert, Theo Gray, the problem is that there are very few metals that are as dense as gold, and with only two exceptions they all cost as much or more than gold.
The first exception is depleted uranium, which is cheap if you're a government, but hard for individuals to get. It's also radioactive, which could be a bit of an issue.
The second exception is a real winner: tungsten. Tungsten is vastly cheaper than gold (maybe $30 dollars a pound compared to $12,000 a pound for gold right now). And remarkably, it has exactly the same density as gold, to three decimal places. The main differences are that it's the wrong color, and that it's much, much harder than gold. (Very pure gold is quite soft, you can dent it with a fingernail.)
A top-of-the-line fake gold bar should match the color, surface hardness, density, chemical, and nuclear properties of gold perfectly. To do this, you could start with a tungsten slug about 1/8-inch smaller in each dimension than the gold bar you want, then cast a 1/16-inch layer of real pure gold all around it. This bar would feel right in the hand, it would have a dead ring when knocked as gold should, it would test right chemically, it would weigh *exactly* the right amount, and though I don't know this for sure, I think it would also pass an x-ray fluorescence scan, the 1/16" layer of pure gold being enough to stop the x-rays from reaching any tungsten. You'd pretty much have to drill it to find out its fake.
Such a top-quality fake London good delivery bar would cost about $50,000 to produce because it's got a lot of real gold in it, but you'd still make a nice profit considering that a real one is worth closer to $400,000.
What's going to happen now?
Politicians like Ron Paul have been demanding that the Federal Reserve be more transparent and open up their records for public scrutiny. But the Fed has consistently refused, stating that these disclosures would undermine its operation. Yes, it certainly would!
UPDATE: Audit of Fed Reserve Amendment Passes!
In an unprecedented defeat for the Federal Reserve, an amendment to audit the multi-trillion dollar institution was approved by the House Finance Committee with an overwhelming and bipartisan 43-26 vote on Thursday afternoon despite harried last-minute lobbying from top Fed officials and the surprise opposition of Chairman Barney Frank (D-Mass.), who had previously been a supporter.
The measure, co-sponsored by Reps. Ron Paul (R-Texas) and Alan Grayson (D-Fla.), authorizes the Government Accountability Office to conduct a wide-ranging audit of the Fed's opaque deals with foreign central banks and major U.S. financial institutions. The Fed has never had a real audit in its history and little is known of what it does with the trillions of dollars at its disposal.
The manufacture of fake gold bars goes back years and, because of this, it is not likely that the originator of this scheme will ever be revealed or brought to justice. Meanwhile the world is just beginning to learn that much of its national reserves of gold may be fake. If more testing reveals that this gold was guaranteed by Fort Knox and the US Treasury then perhaps they will demand an exchange for "real" gold -- wouldn't you?
This is all happening at a time when the US economy is at its lowest and most vulnerable. The effects could be devastating.
Some investors are already selling gold commodities before these facts are widely known. They are investing instead in silver -- the next best metal. This will undoubtedly drive silver prices up.
According to Jim Willie, 24 year market analyst and Ph.D in statistics, "The bust cometh, and it will be spectacular. The stories told in the press will be peculiar, since not told objectively. The headlines might be a comedy, with phony reports of foreign subterfuge, when the perpetrators are home grown."
This is yet another story in the decline of America and capitalism -- a decline based on greed, deception and fraud.
Only a small number of people control the world’s finance, simply because they control the politicians. The world’s financial crisis is rooted in the manipulation of the world’s money. During the last three hundred years powerful wealthy families having no allegiance either national or racial owned the banks in Europe. They soon learned that they could control the world through the manipulation of capital stored in their banks. Amazingly enough, the capital never leaves the bank. It is simply moved around from one account to another.
The Illuminati is a money cabal of twelve families. They loaned large sums of money to the Austrians to fight their enemy of the day, and then financed the the enemies to fight the Austrians. They financed Napoleon’s wars against Russia and other nations, and then financed these nations in their struggle against the French invaders.
The Illuminati financed the allies and their enemy Germany during the First World War. They also poured millions into the giant IG Farben Chemical Industries that built up Hitler’s vast armaments industry. They have no allegiance, but to their secret society.
The secret order ot the Illuminati sought to establish a One World Government with its own international currency. Their goal: to abolish all social classes and religions and ownership of private property. They would establish a new World Order ruled by the Illuminati.
The manipulated the bank failures, and then raised the cry for stability in the banking system and they had the solution. Political pressure was mounted in 1913 the Federal Reserve Board was established with the token participation of the U. S. President who was given the privilege of appointing the Chairman of the Board, selected by the money Barons.
The Federal Reserve Board now directed the money matters of the U. S. –lots of it. They now could manipulate the entire economy---creating inflation or deflation, recession or boom. And, they encouraged the government to borrow money-–lots of it—and the bankers reaped billions in interest. It was profitable scheme for both the Illuminati and the Greymen.
Neither Presidents, Congressmen, nor Secretaries of the Treasury direct the Federal Reserve. In the matters of money the Federal Reserve directs them.
Then the Illuminati and the Graymen conspired to secure their ‘paper’ loans to the Federal Government. They pressured the politicians to legislate the Income Tax, (also passed in 1913) with the assurance that the income tax would never rise above one percent.
The Greymen, the industrialists secured another provision in the income Tax Act that granted their ‘Foundations’ exemption from income tax. Moe money was loaned to the large corporations, who flooded the American Markets with their over-production, which the natural increase in population and leveling, or reduction, in their purchasing power failed to absorb.
Again, the international bankers had the solution. They loaned vast sums of money to the Third World and other nations who could not use the capital effectively; to buy American overproduction. Generally, the interest rates and economic breakdowns forced the lending nations to plead bankruptcy. When these nations reneged on their loans, the international bankers said, “no problem, we will just take over these resources,” In desperation, on Asian leader caught up in this international conspiracy, said: “First, we lost control of our money, then we lost control of our governments, and we became a financial colony”.
Over half the United States national debt is now in the hands of foreign nations. Since WWII, in the absence of any other stable currency, and the rejection of gold in Brento Woods, the world accepted the American dollar as the standard medium of internationial exchange. The price of oil and gold and the values of foreign ecuurncies were established in American dollars backed by the American industrial empire.
This prompted foreign nations with trade surpluses to the United States, to convert their revenues to American securities which forms a major portion of the U. S. debt. Some of these countries are now facing their creditors, and in turn, may cash in their credits with the United States, which the U. S. is in no position to redeem. It is a serious delima for all creditor nations. To kill the ‘American golden goose’ is to plunge the world into economic and financial collapse. The Trancendors view this world scenario with pessimism; the problem is simply too vast, too serious indeed. Fornately, it will be relatively shor-lived, unlike the Great Depression, two to three years—long enough to establish a ‘New World Order’.
The massive indebitedness of nations was not an accident. It is a crisis brough on at three lebels. First it was a conspiracy to collapse the financial systems of the world and out of the chaos, create a ‘New World Order’ with a system of financial control in the hands of the conspiratorial elite who would, in effect, rule the world. The financial elite, commonly known as the ‘Illuminati’ and the ‘Graymen’, a secret cabal of internatioinal bankers and industrialists, were aided in their conspiracyhy with secret irganizations of the “intellectual elite” in the banking, media, industry, politics and professional faculties.
The Illuminati and the Greymen have a common objective, a One World Government with an international currency replacing the U. S. dollar. That is where their common agenda with the money barons ends.
It is now a question of who will dmonate and control the new world government and its World Bank—the financial cabals of the Illuminati and the Greymen, or, democratically appointed representatives of world nations.
The “intellectual elite” argue that the world is changing dramatically and requires new solutions for the new problems—the problems of the world terrorism, ecological problems, globalization of economies and communication, the instability of currencies world wide and man’s venture into space. These are huge problems requiring solutions of a universal nature, requiring an international regime through a World government, the United Nations.
Devolution of national powers to the United Nations would be required. This would be hard for staunch nationalist Americans to accept. This would mean the end of human rights as put forth by the Free Masons who were the writers of the Constitution.
This all boils down to is the ancient feudal war between the Free Masons and the royal Massonic Lodge of Europe who reward their members not by their good deeds but by their inbred, royal bloodline. The ancient blood ties be they real or not, traced their family linage back to two daughters supposedly fathered by Jesus with Mary Magdalene who was exiled to the south of France shortly after the crucifixion.
It all started in 1704 when Queen Sophia married William Hanover of Germany. England got a large piece of land on the coats of Germany and William Hanover brought the Royal Masonic Lodge into England. Those Free Masons who believed in the Rights of Man refused to convert to the Royal Masonic Lodge became outlaws and migrated to the Americas. What the American Revolution was all about was not paying English taxes on tea but preserving a way of life—“freedom.”
When King Hanover traveled around his country visiting hamlets and villages the mayors and other officials would suck up to the King by proffering up their daughters in the hope that they could get them pregnant. Then they could claim family ties to the bloodline of Jesus Christ.
The Free Masons had to go underground to preserve their sacred knowledge and law.
I have always subscribed to the idea that the natural evolution of any government is more and more control of its people to where they become completely enslaved. I believe some of the ancient civilizations on earth reached the ultimate goal of mind control slavery where they could broadcast messages directly into the heads of their subjects on a daily basis. We are nor far from that now with our television, radio and movies.
They want to take us back to the days of Feudal Europe where the Barons own the land and the Surfs and slaves do the work. When you have a free society like American you have to destroy them economically before you can completely enslave them.
There is not a single president of the United States who was not selected, groomed, and financed for that political office. Once in office they occasionally refuse to play the game. Several presidents brought with them a strong, personal agenda for economic and financial reform and the controlling interests reaction was swift and deadly. There is no event that demonstrates the ‘conspirators’ ruthless political control that operated beyond the laws of nations better than the assignation of President Kennedy and his brother, Bobby.
President, Nixon saw through the control process from the start. As a corporate lawyer in new York, working for, The Powers That Be,’ he knew the system and played the game. He kept his money in BB Rebozo’s Miami Trust bank. Gradually during his term in office, he took a more independent stand, particularly in the financial affairs of the nation. Watergate removed him from office.
President Carter grew increasingly concerned about the control of the nation’s finance over which, he discovered, he had no control. He pressed for change and he was dropped after on term.
President Reagan grew increasingly more concerned about the President’s total absence of control of the Federal Reserve Board. He wanted to establish a bank run by the government, for the nation. Often at night, he would pray for guidance. He left a quiet, but disillusioned man.
