A fake gold audit of the gold in the Federal Reserve Bank of New York, a private depository, was made by the government. It did not include any audit of the legal claims against this gold.
The audit mentioned that the government’s gold is in Ft. Knox. No audit was made of the gold in Ft. Knox.
This non-audit will probably satisfy critics of the Federal Reserve and the government. We will be told that there was a full audit. There was not.
Germany’s central bank, under political pressure, has requested the return of half of its gold. It is willing to wait until 2020. Why it didn’t request all of it by the end of next month is something of a mystery. It is as if the central bank does not believe that the New York Federal Reserve Bank can actually deliver this gold if other central banks made the same request. So, the German bankers do not want to cause a stampede.
If I were a central banker, I would demand immediate payment and let the Germans wind up at the tail end of the stampede.
That’s why I am not a central banker.
Someday, there will be a run on the Federal Reserve Bank of New York. Voters will tell their politicians to tell the nation’s central bank to get its gold. That will be a great day for liberty at 33 Liberty Street, NYC.
Until then, central banks are in charge, not voters. Voters are merely convenient fictions in the world of central banking. “Trust us,” central bankers tell politicians. “Trust us,” politicians tell voters. Voters comply.