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Exclusive: Bank Of England To The Fed: "No Indication Should, Of Course, Be Given To The Bundesbank..."

Tyler Durden's picture





 

Over the past several years, the German people, for a variety of justified reasons, have expressed a pressing desire to have their central bank perform a test, verification, validation or any other assay, of the official German gold inventory, which at 3,395 tonnes is the second highest in the world, second only to the US. We have italicized the word official because this representation is merely on paper: the problem arises because no member of the general population, or even elected individuals, have been given access to observe this gold. The problem is exacerbated when one considers that a majority of the German gold is held offshore, primarily in the vaults of the New York Fed, and at the Bank of England - the two historic centers of central banking activity in the post World War 2 world.

Recently, the topic of German gold resurfaced following the disclosure that early on in the Eurozone creation process, the Bundesbank secretly withdrew two-thirds of its gold, or 940 tons, from London in 2000, leaving just 500 tons with the Bank of England. As we made it very clear, what was most odd about this event, is that the Bundesbank did something it had every right to do fully in the open: i.e., repatriate what belongs to it for any number of its own reasons - after all the German central bank is only accountable to its people (or so the myth goes), in deep secrecy. The question was why it opted for this stealthy transfer.

This immediately prompted rampant speculation within various media outlets, the most fanciful of which, of course, being that the Bundesbank never had any gold to begin with and has been masking the absence all along. The problem with such speculation is that, while it may be 100% correct and accurate, there has been not a shred of hard evidence to prove it. As a result, it is merely relegated to the echo chamber periphery of "serious media" whose inhabitants are already by and large convinced that all gold in the world is tungsten, lack of actual evidence to validate such a claim be damned (just like a chart of gold spiking or plunging is not evidence that a central bank signed the trade ticket, ordering said move), and in the process delegitimizing any fact-based investigations that attempt to debunk, using hard evidence, the traditional central banker narrative that the gold is there and accounted for.

And hard evidence, or better yet a paper trail of inconsistencies, is absolutely paramount when juxtaposing the two most powerful forces of our times: i) the central banking-led status quo (which is de facto the banker-led oligarchy whose primary purpose in the past several centuries has been to accumulate as much as possible of the hard asset-based fruits of people's labor, who toil in exchange for "money" created out of thin air - a process which could be described as not quite voluntary slavery, but the phrase would certainly suffice), and ii) "everyone else", especially when "everyone else" still believes in the supremacy of democratic forces, accountability, and an impartial legal system (three pillars of modern society which over the past 4 years we have experienced time and again have been nothing but mirages). Because without hard evidence, not only is the case of the people against central bankers non-existent, even if conducted in a kangaroo court co-opted by the banker-controlled status quo, it becomes laughable with every iteration of progressively more unsubstantiated accusations against the central banking cartels.

Finally, when it comes to cold, hard facts, which expose central banks in misdeed, even the great central banks have to be silent silent, as otherwise the overt perversion of justice will blow up the mirage that modern society lives in a democratic, laws-based world will be torn upside down.

And while others engage in click-baiting using grotesque hypotheses of grandure without any actual investigation, reporting or error and proof-checking to build up hype and speculation, which promptly fizzles and in the process desensitizes the general public and those actually undecided and/or on the fences about what truly goes on behind the scenes, Zero Hedge travelled (metaphorically) in space - to London, or specifically the Bank of England Archives - and in time, to May 1968 to be precise.

While there we dug up a certain memo, coded C43/323 in the BOE archives, official title "GOLD AND FOREIGN EXCHANGE OFFICE FILE: FEDERAL RESERVE BANK OF NEW YORK (FRBNY) - MISCELLANEOUS", dated May 31, 1968, written by a certain Mr. Robeson addressed to the BOE's Roy Bridge as well as its Chief Cashier, and whose ultimate recipient is Charles Coombs who at the time was the manager of the open market account at the Fed, responsible for Fed operations in the gold and FX markets.

This memo, more than any of the other spurious and speculative accusation about Buba's golden hoard, should disturb German citizens, and of course the Bundesbank (assuming it was not already aware of its contents), as the memo lays out, without any shadow of doubt, that the BOE and the Fed, effectively conspired to feed the Bundesbank due gold bars that were of substantially subpar quality on at least one occasion in the period during the Bretton-Woods semi-gold standard (which ended with Nixon in August 1971).

The facts:  

At least two central banks have conspired on at least one occasion to provide the Bundesbank with what both banks knew was "bad delivery" gold - the convertible reserve currency under the Bretton Woods system, or in other words, to defraud - amounting to 172 bars. The "bad delivery" occured even as official gold refiners had warned that the quality of gold emanating from the US Assay Office was consistently below standard, and which both the BOE and the Fed were aware of. Instead of addressing the issue of declining gold quality and purity, the banks merely covered up the refiners' complaints 

It is this that the Bundesbank, the German government, and the German people should be focusing on. If in the process this means completely ridiculing the Buba's "she doth protest too much" defense strategy that what is happening in the media is a "phantom debate" as per Andreas Dobret's recent words, so be it. In fact, one may be well advised to ignore anything Buba has said on this matter, because in attempting to hyperbolize the matter out of irrelevancy, the Buba is now cornered and will have no choice now but to explain just what the true gold content of the gold even in its possession is, let alone that which is allocated to the Buba account 50 feet below sea level, underneath the infamous building on Liberty 33.

Full May 1968 memo from the BOE to the NY Fed: highlights ours:

MR. BRIDGE

THE CHIEF CASHIER

 

U.S. Assay Office Gold Bars

 

1.  We have from time to time had occasion to draw the Americans’ attention of the poor standards of finish of U.S. Assay Office bars. In addition in 1961 we passed on to them comments from Johnson Matthey to the effect that spectrographic examination did not support the claimed assay on one bar they had so tested (although they would not by normal processes have challenged the assay) and that impurities in the bar included iron which caused some material to be retained on the sides of crucible after pouring.

 

2. Recently, Johnson Matthey have put 172 “bad delivery” U.S. Assay Office bars into good delivery form for account of the Deutsche Bundesbank. These bars formed part of recent shipments by the Federal Reserve Bank to provide gold in London in repayment of swaps with the Bundesbank. The out-turn of the re-melting showed a loss in fine ounces terms four times greater than the gross weight loss. Asked to comment Johnson Matthey have indicated verbally that:-

 

(a) the mixing of “melt” bars of differing assays in one “pot” could produce a result which might be a contributing factor to a heavier loss in fine weight but they did not think this would be substantial ;

 

(b) a variation of .0001 in assay between different assayers is an extremely common phenomenon;

 

(c) over a long period of years they had had experience of unsatisfactory U.S. assays

 

3. It is not, however, possible to say that the U.S. assays were at fault because Johnson Matthey did not test any of the individual bars before putting them into the pot.

 

4. The Federal Reserve Bank have informed the Bundesbank that adjustments for differences in weight and refining charges will be reimbursed by the U.S.Treasury.

 

5. No indication should, of course, be given to the Bundesbank, or any other central bank holder of U.S. bars, as to the refiner’s views on them. The peculiarity of the out-turn will be known to the Bundesbank: it has so far occasioned no comment.

 

6. We should draw the attention of the Federal to the discrepancy in this (and any similar subsequent such) result and add simply that the refiners have made no formal comment but have indicate that, although very small differences in assay are not uncommon, their experience with U.S. Assay Office bars has not been satisfactory.

 

7. We hold 3,909 U.S. Assay Office bars for H.M.T. in London (in addition to the New York holding of 8,630 bars). After the London gold market was reopened in 1954 we test assayed the bars of certain assayers to ensure that pre-war standards were being maintained. It might be premature to set up arrangements now for sample test assays of U.S. Assay Office bars but if it appeared likely that the present discontent of the refiners might crystalise into formal complain we should certainly need to do this.  In the meantime I would recommend no further action.

 

31st May 1968

 

P.W.R.R.

To summarize: Bank of England discovers discrepancies with US Assay Office gold bars, notifies the NY Fed that its gold bars have major "bad delivery" issues, but, and this is the punchline, on this occasion, we'll keep it quiet, because the Bundesbank got these bars. This is merely one documented assay occasion: one can imagine that of the hundreds of thousands of gold bars in official circulation, the "good delivery" quality of bars outside of the US, and perhaps BOE, official holdings has progressively declined over the decades of Bretton Woods. One can also only imagine what has happened to all those "good delivery" bars currently held by the Fed as custodian at the NY Fed. Literally: imagine. Because there is no way to check what the real gold consistency of these gold bars is, and whether the refiners found ongoing future inconsistencies with "good delivery" standards of bars handed off to other "non-core" central banks. And, yes, without further evidence the above is merely speculation.

As to the remaining relevant facts: the US ran out of good delivery gold in March 1968 and only had coin bars remaining. Which is why it closed the gold pool and went to a two-tier price system. The Bundesbank went on to cover some of the outstanding gold debts of the Fed to the gold pool. Subsequently, the US then did several deals with the BOC to get a substantial amount of gold to pay back the Bundesbank which was sent over to England from March until June 1968. One can, again, only speculate on the quality of said gold. The Fed then created unsettled accounts to account for these transfers between itself and the Buba.

In light of the above facts and evidence, one can see why the Buba is doing all in its power to avoid the spotlight being shone on the purity of its gold inventory: after all the last thing the German central banks would want is someone to go through the publicly available archived literature, to put two and two together, and figure out that it does not take one massive "rehypothecation" (see "to Corzine") event for German gold credibility to be impaired: all it takes is death from a thousand micro dilutions over the decades to get the same end result. Because chipping away one ounce here, one ounce there for years and years and years, ultimately adds up to a lot.

We eagerly look forward to the Buba's next iteration of self-defense. We can only hope that this one does not include a reference to a "phantom debate", to "East German terrorist Simon Gruber" or to Goldfinger, as it will merely further destroy any remaining credibility the Bundesbank may have left in this, or any other, matter.

* * *

Look forward to more archive-based disclosure ot what may have happened to Buba's, and not only, gold in the coming days and weeks.

 


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Fri, 11/09/2012 - 18:44 | Link to Comment Peter Pan
Peter Pan's picture

I didn't know there were international waters on the east German border.

Fri, 11/09/2012 - 18:59 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

And Mitt didn't know Iran did. Do you think MIC cheerleaders care about the facts? Just bomb them, steal their gold, and steal their beer even if it because they talk funny.

In the words of Maynard, "Let's have a war and build a New Jersey. Let's have a war, so you can go and die. Let's have a war, crank up the Dow Jones. Let's have war and clean out this place."

Fri, 11/09/2012 - 19:07 | Link to Comment knukles
knukles's picture

Doc, you forgot the oil.  Gotta steal their oil, too.  Best they have both gold and oil.  Then we can occupy for the long term and really fuck up the culture.

They hate us for our Feifdoms

Fri, 11/09/2012 - 19:35 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I want a beer girl in those big people leprechaun outfits

Sat, 11/10/2012 - 00:07 | Link to Comment willwork4food
willwork4food's picture

I'll take two and a 6-pack to go please.

Sat, 11/10/2012 - 10:43 | Link to Comment cowpieflapjack
cowpieflapjack's picture

They hate us for our greedoms.

Fri, 11/09/2012 - 19:07 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

I didn't know there were international waters on the east German border.

It's the other Strait of Hormuz. Just remember that the next time someone uses the term Straits of Hormuz.

Fri, 11/09/2012 - 17:50 | Link to Comment jimijon
jimijon's picture

Diluted Alchemy. What is real? What is matter? The delusion / illusion that only appointed alchemists can conjure authentic numbers.

 

Fri, 11/09/2012 - 17:51 | Link to Comment Dick Darlington
Dick Darlington's picture

This!

Fri, 11/09/2012 - 17:52 | Link to Comment DollarMenu
DollarMenu's picture

Damn, this shit is better than any TV show.

Thanks TD & ZH.

Fri, 11/09/2012 - 19:15 | Link to Comment mick_richfield
mick_richfield's picture

True, but there was a movie with Brad Pitt that was based on this web site.
It was pretty good.

Fri, 11/09/2012 - 19:36 | Link to Comment old naughty
old naughty's picture

"...better than any TV show."

OMG, you are comparing this to them TV shows, still?

Who around here still hope to get reality from them?

Fri, 11/09/2012 - 17:54 | Link to Comment saints51
saints51's picture

Mr. Panos intercepted delivery. Greeks have it stashed in their mattresses.

Fri, 11/09/2012 - 17:55 | Link to Comment jmcadg
jmcadg's picture

Is Chavez melting down his hoard as we speak?

Sat, 11/10/2012 - 00:17 | Link to Comment thecoloredsky
thecoloredsky's picture

depends if ghaddafi's gold was pure

Fri, 11/09/2012 - 17:57 | Link to Comment Seasmoke
Seasmoke's picture

Argo Fuck Yourself

Fri, 11/09/2012 - 17:58 | Link to Comment Joebloinvestor
Joebloinvestor's picture

The United States says to trust and obscure.

What a great system for a reserve currency.

Fri, 11/09/2012 - 17:58 | Link to Comment Seize Mars
Seize Mars's picture

Fraud. Theft. Lies. Threats. Invasion, murder.

Government is great!

Let's put them in charge of my fucking health care.

Oh, and by the way, they'd really, really like to disarm us as well.

Fri, 11/09/2012 - 18:22 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

Bought another gun yesterday. Gun store was doing great business , more than last election. There's many out there that are thinking along your lines of thought. People I now are either asleep and content or wide awake and prepping. We live in very interesting times.

Miffed:-)

Fri, 11/09/2012 - 19:00 | Link to Comment Parrotile
Parrotile's picture

As an outsider I have this vision of a "Post Financial Apocalyptic" America where a large chunk of the population are indulging in the mother of all shootouts with each other - bullets (and larger ordnance) flying everywhere, probably pretty indiscriminately too.

Ever thought for one moment that this might be just what TPTB want to happen - the "Armed, therefore potentially troublesome" subset of the population conveniently running their own "mutual depopulation programme"?

If the "Armed and Dangeroous" subset get a-hold of the "really big stuff" from the hundreds of Military / National Guard depots it''' certainly become very interesting, very quickly.

It would make downtown Beirut at the height of the "troubles" look like a quiet afternoon in a Public Library . . . . .

Fri, 11/09/2012 - 19:10 | Link to Comment knukles
knukles's picture

There is no reason whatsoever to buy a shit load of guns and ammo.

As my best friend MgySgt used to say; "there'll be plenty layin' 'round on the battlefield"

Fri, 11/09/2012 - 19:38 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

As an outsider I have this vision of a "Post Financial Apocalyptic" America where a large chunk of the population are indulging in the mother of all shootouts with each other - bullets (and larger ordnance) flying everywhere, probably pretty indiscriminately too.

You do know that television and movies aren't real, don't you? The American "wild west" was far more peaceful than indicated in pop culture, but peace is more difficult to market than lots of killin' and explosions.

Post financial apocalyptic America won't be a picnic, but after some stressful adjustments, most exchanges of bullets will probably be as barter items in trade for other goods.

Sat, 11/10/2012 - 12:54 | Link to Comment PLira
PLira's picture

True that on the "Real" Old Western society being much less wild than portrayed.

An armed society is a polite society.

Fri, 11/09/2012 - 19:42 | Link to Comment Dr. Engali
Dr. Engali's picture

Kill them all and let God sort them out.

I have considered this very point myself. Why go through the bother of disarming the populous? It's too much trouble. When the time comes they have us so divided we will take out each other and TPTB will come mop up the rest.

Fri, 11/09/2012 - 19:53 | Link to Comment DosZap
DosZap's picture

I have considered this very point myself. Why go through the bother of disarming the populous? It's too much trouble. When the time comes they have us so divided we will take out each other and TPTB will come mop up the rest.

Dr. won't work bro, just 10% of the RED side is enough to take out all the LEFT side.

The RED side were born, and teethed on weapons, and their use, and actually know how to use them, and very well,at MANY ranges.

most here do not have a clue that civilain shooters, and instructors taught (may be different now), to a HUGE degree taught the military many new tricks,and shooting skill sets.

Just as MOST real innovations come from the private sector, so it is/was with our troops.

Fri, 11/09/2012 - 20:04 | Link to Comment Dr. Engali
Dr. Engali's picture

I hope you're right. Actually I'm counting on that fact.

Fri, 11/09/2012 - 21:56 | Link to Comment knukles
knukles's picture

Sounds like good math to me....

Fri, 11/09/2012 - 22:06 | Link to Comment dexter_morgan
dexter_morgan's picture

meh, whaddaya think the drones are for - will take the reds out in a new york minnit.

Sat, 11/10/2012 - 00:42 | Link to Comment Lednbrass
Lednbrass's picture

Yeah, thats been a spectacular success in the Middle East.

Fri, 11/09/2012 - 20:20 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

 

just 10% of the RED side is enough to take out all the LEFT side.

 

So wild Indians are going to attack the liberals? That ought to be interesting.

Sat, 11/10/2012 - 03:22 | Link to Comment John_Coltrane
John_Coltrane's picture

5 million experienced NRA members couldn't agree more.  I even like the odds of the NRA membership vs the US army-many of which likely have stronger alligience to the NRA than they do our current government.

Fri, 11/09/2012 - 20:16 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

 

If the "Armed and Dangeroous" subset get a-hold of the "really big stuff" from the hundreds of Military / National Guard depots it''' certainly become very interesting, very quickly.

 

But government is the armed and dangerous crowd.

Fri, 11/09/2012 - 18:06 | Link to Comment Wakanda
Wakanda's picture

"bad delivery"

When the Dominos guy hands you a cold pizza?

When the Chinese take out sends pork roll instead of shrimp roll?

When the US Federal Reserve shorts you 172 bars of gold?

Inquiring minds want to know.  -  Congrats Tylers!

Fri, 11/09/2012 - 18:06 | Link to Comment jimijon
Fri, 11/09/2012 - 18:07 | Link to Comment Seize Mars
Seize Mars's picture

By the way, this is Superior reporting, ZH. Well done.

Sat, 11/10/2012 - 00:42 | Link to Comment DaveyJones
DaveyJones's picture

good point, we don't tell him we love him enough

Fri, 11/09/2012 - 18:07 | Link to Comment centerline
centerline's picture

The demise of the Roman empire comes to mind.  This time though is it a handful of central banks who have managed to wrap the globe in counterparty risk with neat little bow (actually looks more like a fuse I think).  Yeah... it's going to end well.

Fri, 11/09/2012 - 19:08 | Link to Comment Burr's 2nd Shot
Burr's 2nd Shot's picture

THIS TIME IS DIFFERENT!
or something.

Sat, 11/10/2012 - 00:21 | Link to Comment willwork4food
willwork4food's picture

Actually it is a bit different. Didn't Jesus, mother Shipton, the Mayans and a few others comment on this age?

Naw, can't be.

Fri, 11/09/2012 - 18:09 | Link to Comment Sweet Chicken
Sweet Chicken's picture

Bares repeating.

 

 

American Eyes

American Eyes

View the world through American eyes

Bury the past

Rob us blind

And leave nothing behind

Fri, 11/09/2012 - 18:09 | Link to Comment Dr. Engali
Dr. Engali's picture

This is why I live the Hedge.. Well this and the commentary. Great job Tyler's, and thank you.

Fri, 11/09/2012 - 18:12 | Link to Comment tongue.stan
tongue.stan's picture

the rabbit hole is deep and lined with tungsten

http://www.youtube.com/watch?v=ESidBrr2cxk

That' all folks!

Fri, 11/09/2012 - 18:13 | Link to Comment GubbermintWorker
GubbermintWorker's picture

Alas, am glad that I am but a poor slob who's gold consists of fractional ounces.

Fri, 11/09/2012 - 18:14 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

Who has most of that 185,000 tons of gold? Why most of the readers here @ZH bitchez... :)

Of course, 99% of it has been lost due to unfortunate boating accidents...

Fri, 11/09/2012 - 20:18 | Link to Comment Mesquite
Mesquite's picture

India (the citizens)

Sat, 11/10/2012 - 14:26 | Link to Comment HedgeCock
HedgeCock's picture

What a coincidence, Hurricane Sandy took 99% of my gold out to sea...

Fri, 11/09/2012 - 18:15 | Link to Comment divide_by_zero
divide_by_zero's picture

Gold was obviously lost thru the "Corzine's share" much like Angel's share with wine when it ages.

Fri, 11/09/2012 - 18:15 | Link to Comment Intoxicologist
Intoxicologist's picture

In Intoxicologist lingo, this can be construed as short-shotting someones drink then, right?

Fri, 11/09/2012 - 18:16 | Link to Comment Thecomingcollapse
Thecomingcollapse's picture

Mouth Agape!  I sure hope this hits the mainstream..preferably German media! 

Get your popcorn ready!

Fri, 11/09/2012 - 18:19 | Link to Comment dwdollar
dwdollar's picture

Just think... we have even less information to draw conclusions about Fort Knox.

I'm sure Uncle Scam is saving the highest quality gold bars for US citizens. /sarc

Fri, 11/09/2012 - 18:18 | Link to Comment jmcadg
jmcadg's picture

So was Gordon Brown just selling UK gold at fair Market value? Rather than admit to having tungsten in the UK stack, clear out the US crap, keep the good shit? Just thinking...

Fri, 11/09/2012 - 18:18 | Link to Comment Colonial Intent
Colonial Intent's picture

Long Tungsten?

 

Fri, 11/09/2012 - 18:25 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

I don't buy it .

The central bankers hold no nationality - they are all just good friends..............

 

I believe you could cash a Sterling cheque in Berlin up to 1916...............what exactly does that tell you ?

Fri, 11/09/2012 - 19:12 | Link to Comment knukles
knukles's picture

Somethin' big happened?

Fri, 11/09/2012 - 19:39 | Link to Comment THE DORK OF CORK
Fri, 11/09/2012 - 18:26 | Link to Comment resurger
resurger's picture

JESUS CHRIST!

Fri, 11/09/2012 - 18:27 | Link to Comment slackrabbit
slackrabbit's picture

Holy shit!

Fri, 11/09/2012 - 18:29 | Link to Comment mantrid
mantrid's picture

I wonder what poor Chavez got

Fri, 11/09/2012 - 18:31 | Link to Comment Smiddywesson
Smiddywesson's picture

LOL, same thought on Chavez

 

Fri, 11/09/2012 - 18:30 | Link to Comment MsCreant
MsCreant's picture

No one said it yet?

Say it! Say it!

Fri, 11/09/2012 - 18:35 | Link to Comment Colonial Intent
Colonial Intent's picture

Gold Bitchez?

Fri, 11/09/2012 - 18:45 | Link to Comment MsCreant
MsCreant's picture

Say it with conviction!

Fri, 11/09/2012 - 18:50 | Link to Comment GubbermintWorker
GubbermintWorker's picture

GOLD, SILVER, BRASS, AND LEAD......BITCHEZ!

Fri, 11/09/2012 - 19:12 | Link to Comment Colonial Intent
Colonial Intent's picture

.

Fri, 11/09/2012 - 19:06 | Link to Comment Parrotile
Parrotile's picture

And nickel (you don't want to leave your lead in the cold without a jacket do you?? !!)

Old but nice-the old 7.62mm NATO Boxer rounds do still have pretty excellent "Stopping Power" - and they fit the AK 47 too!!

(Just sayin' . . .  )

Fri, 11/09/2012 - 20:23 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Parrotile said:

And nickel (you don't want to leave your lead in the cold without a jacket do you?? !!)

Copper is the most widely used material for jacketing lead bullets. Nickel is used more for protecting the brass cartridges from corrosion (nickel washed brass).

Old but nice-the old 7.62mm NATO Boxer rounds do still have pretty excellent "Stopping Power" - and they fit the AK 47 too!!

I hope you never need to depend on that sort of "knowledge". The 7.62x51mm NATO round (Boxer? Most military cartridges use Berdan primers) and the 7.62x39mm AK-47 round are in no way interchangeable. The shells differ in length, diameter, and shape, and even the bullets themselves are of different diameters (7.82mm v. 7.92mm).

(Just sayin' . . .  )

Well, yeah, the internet is like that.

Fri, 11/09/2012 - 20:43 | Link to Comment FeralSerf
FeralSerf's picture

They don't fit very well. The 7.62 NATO is 51mm long.  The AK47 is 39mm long.  The 7.62X51 is similar in energy to the old .30-06.  The AK47 7.62X39 is similar to the .30-30 Winchester.  Big difference.

http://en.wikipedia.org/wiki/7.62×39mm

http://en.wikipedia.org/wiki/7.62×51mm_NATO

Fri, 11/09/2012 - 21:13 | Link to Comment lakecity55
lakecity55's picture

PRIMERS FOR RELOADING, BITCHES!

Fri, 11/09/2012 - 21:12 | Link to Comment lakecity55
lakecity55's picture

PALLADIUM, TOO, BIT-CHEZ!

"and me.... I'm Rhodium. I'm cool, too."

"PLATINUM HERE, MOFOS!"

 

(Thought I would round it out)

Fri, 11/09/2012 - 18:50 | Link to Comment GubbermintWorker
GubbermintWorker's picture

GOLD, SILVER, BRASS, AND LEAD......BITCHEZ!

Fri, 11/09/2012 - 18:31 | Link to Comment Blagio
Blagio's picture

1974 Audit of Fort Knox

Here we see Rep. Gene Snyder of KY holding a U.S. Postal scale as Rep. John B. Conlan of AZ places a gold bar on it. When you enhance the image, you can see that the scale shows the bar weighing 22.25 pounds. A normal bar of .995 gold would weigh 28.9 pounds, nearly 30% more.

The Sec. of the Treasury tried to explain away this discrepancy by claiming that the scale was a common household scale and was defective. The photo shows, however, that it was an official postal scale, typically accurate to one ounce.

B

Fri, 11/09/2012 - 18:31 | Link to Comment SmittyinLA
SmittyinLA's picture

BOC (Bank of China?) 1968? We're we at war with them at that time?  

Fri, 11/09/2012 - 20:27 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

Cold war. Although this was going on:

 

Sino-Soviet relations soured after the Soviets invaded Czechoslovakia in August 1968. In October, the Chinese demanded North Vietnam cut relations with Moscow, but Hanoi refused.[234] The Chinese began to withdraw in November 1968 in preparation for a clash with the Soviets, which occurred at Zhenbao Island in March 1969. The Chinese also began financing the Khmer Rouge as a counterweight to the Vietnamese communists at this time. China's withdrawal from Vietnam was completed in July 1970.[235]

 

http://en.wikipedia.org/wiki/Vietnam_War

Fri, 11/09/2012 - 18:32 | Link to Comment SmittyinLA
SmittyinLA's picture

Was "the Nam" a total fraud? 

Fri, 11/09/2012 - 19:35 | Link to Comment Poor Grogman
Poor Grogman's picture

With al that Hippy coombaya touchy feely stuff breaking out in Cali and people "dropping out" of the system.

Of course it was..

 

Couldn't have peace and love breaking out now could we?....

 

 

Fri, 11/09/2012 - 18:36 | Link to Comment rosethorn
rosethorn's picture

"the refiners have made no formal comment but have indicate that, although very small differences in assay are not uncommon, their experience with U.S. Assay Office bars has not been satisfactory."

 

Should trigger an audit immediately.

Fri, 11/09/2012 - 19:14 | Link to Comment knukles
knukles's picture

Close enough for government work.

Fri, 11/09/2012 - 21:28 | Link to Comment Urban Redneck
Urban Redneck's picture

As much as government employees are cut from the same stock the world over, that level of BS in an assay office isn't acceptable.

However, while laughing at the the latest english-language propaganda from Swiss government I came across this:

http://www.ezv.admin.ch/ezv/03085/index.html?lang=en

Scroll down to the Precious Metals Control video

at 3.10 into the video they have a gold plated tungsten bar that I haven't seen before

 

(that's offical government media, not some reporter running around the NY jewelry district)

 

 

Fri, 11/09/2012 - 23:02 | Link to Comment smiler03
smiler03's picture

+1 Great link, very educational, not just the tungsten bit.

Sat, 11/10/2012 - 02:17 | Link to Comment dogbreath
dogbreath's picture

there is never just one cockroach

Fri, 11/09/2012 - 18:41 | Link to Comment debtor of last ...
debtor of last resort's picture

XPOSURE

Mr. Durden.

Don't get Assange'd

And thanks for the wipers.

Fri, 11/09/2012 - 18:43 | Link to Comment luna_man
luna_man's picture

 

 

And...If you don't check with MY MAIN MAN first...

 

"I pity the fool"

Fri, 11/09/2012 - 18:45 | Link to Comment Al Huxley
Al Huxley's picture

For something that apparently is just held for 'tradition' everybody sure fucks with it a lot.

Fri, 11/09/2012 - 19:21 | Link to Comment mick_richfield
mick_richfield's picture

Well, that's traditional too.

There's a reason all the coins that matter have little ridges all around their edges.

Fri, 11/09/2012 - 18:46 | Link to Comment AUD
AUD's picture

gold bars that were of substantially subpar quality

 

declining gold quality and purity

Yes indeed ZH - quality

Fri, 11/09/2012 - 18:48 | Link to Comment MsCreant
MsCreant's picture

Everyone, everywhere, anytime you can, should be commenting on this story and putting the pressure ON!

 

Fri, 11/09/2012 - 19:16 | Link to Comment knukles
knukles's picture

Doubled over, grunting...

Sat, 11/10/2012 - 02:39 | Link to Comment putaipan
putaipan's picture

SCRUM !

Fri, 11/09/2012 - 21:51 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

Did GATA know about this? Or did ZH scoop GATA and they're reading along with us right now?

Sat, 11/10/2012 - 12:33 | Link to Comment Bay of Pigs
Bay of Pigs's picture

In 1999 when GATA launched their organization, they laid out the groundwork of the bullion banks (JPM, GS, HSBC, etc...) the COMEX and Barrick Golds involvement in the gold suppression scheme. That in turn led them to the FED, UST and the swaps and leases between Central Banks. Little by little, and bit by bit, they've been able to piece together ther story and ongoing criminal enterprise that engulfs the entire financial sector.

Now having ZH reach a much wider audienece all these years later can only be a good thing.

Nice work Tyler(s). 

Fri, 11/09/2012 - 19:00 | Link to Comment Shigure
Shigure's picture

In the record you put a link to (C43/323) dated 1st May 1967 to 31st October 1968, the description reads:

"Discussion of New York clearing system; FRB Bulletins for comments; some 1967 devaluation papers; large United States (US) gold shipments; US defence purchases and offset payments; some figures of US banks' Euro-Dollar borrowings."

So, has the Euro been going that long then?

Fri, 11/09/2012 - 19:12 | Link to Comment AUD
AUD's picture

Eurodollar is $US denominated credit outside of the US.

Fri, 11/09/2012 - 20:31 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

A good question and an excellent answer.

Fri, 11/09/2012 - 20:57 | Link to Comment Shigure
Shigure's picture

AUD. Thanks for your reply

Fri, 11/09/2012 - 21:02 | Link to Comment Orly
Orly's picture

Yeah, seriously.  I was five years old and you weren't even born yet.

Fri, 11/09/2012 - 19:00 | Link to Comment illyia
illyia's picture

Nice investigation job TDs. Under-appreciated in this competitive crowd. But you did real homework on this.

Thanks.

Fri, 11/09/2012 - 19:15 | Link to Comment bugs_
bugs_'s picture

Yamashita's (bad delivery) gold

Fri, 11/09/2012 - 20:51 | Link to Comment FeralSerf
FeralSerf's picture

It's been claimed that Barrick fixed that.

Fri, 11/09/2012 - 19:17 | Link to Comment silverserfer
silverserfer's picture

best way to get your gold is to dig it out of the ground yourself. it wont be 24k but at least the impurities are mainly silver! 

Dig bitchez!

Fri, 11/09/2012 - 19:39 | Link to Comment akak
akak's picture

 

best way to get your gold is to dig it out of the ground yourself.

And why not?  The shit is everywhere, and it only costs $5 to dig from the ground!

Fri, 11/09/2012 - 20:28 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

akak said:

And why not?  The shit is everywhere, and it only costs $5 to dig from the ground!

Bravo!

Fri, 11/09/2012 - 23:11 | Link to Comment smiler03
smiler03's picture

"And why not?  The shit is everywhere, and it only costs $5 to dig from the ground!"

 

Dig from the ground? Ha! What a fool! You can just scoop shit up from the side of the road in China.

/allegedly

Sat, 11/10/2012 - 01:45 | Link to Comment knukles
knukles's picture

Fuckin' move to Heaven, roads are paved with it.

Fri, 11/09/2012 - 20:06 | Link to Comment Never One Roach
Never One Roach's picture

"Your gold is in a segregated account...no worries."

Sat, 11/10/2012 - 03:11 | Link to Comment putaipan
putaipan's picture

no.  this is pre- "corazined".

 

poof, bitches!

 

(edit, to get the "poof bitches" joke right)

 

in sloooooowww motion.-  pooooooofffff..............beeeeeeaaaaaaaaatchhhhhhhhes~

Fri, 11/09/2012 - 19:21 | Link to Comment eddiebe
eddiebe's picture

Are they talking about The Bubba?

Fri, 11/09/2012 - 19:22 | Link to Comment DosZap
DosZap's picture

Oh, and BTW.

Have any of you noticed the colors of the SO called US bars holdings?.

Some(a lot) look like they are mix of wheel weights, and gold, or fools gold.One would expect the color of 0.999 Gold to be Uniform, esp GOOD DELIVERY BARS.

Fri, 11/09/2012 - 19:32 | Link to Comment KingTut
KingTut's picture

It's worth mentioning that when the US confiscated citizen's gold in 1933, the majority of that was in the form of US gold coins.  To make them more durable in circulation, the coins were 22 karat, whereas pure gold is 24 karat.  So if one of these "coin melt" bars was refined into good delivery bar, 400 oz of 22 karat will out-turn at 366 oz of fine, for a loss of 34 oz.  Pretty significant.

The quicky audit of Ft Knox conducted in the 1950's revealed many bars with strange coloration.  This might be explained if they were "coin melt", instead of good delivery.  Why bother purifying it if its just going to sit there for 1000's of years.  You only need good delivery if you're going to sell it (or swap it).

A little spooky none-the-less.

Fri, 11/09/2012 - 20:08 | Link to Comment Bob
Bob's picture

Damn, Tyler throws down.

Good.  Hope you're all in on this one. 

Fri, 11/09/2012 - 19:46 | Link to Comment Poor Grogman
Poor Grogman's picture

How much more of the jigsaw puzzle does one really need to see before one understands what the picture is ?

Are we simply being conditioned to receive the really bad news?

 

 

Fri, 11/09/2012 - 19:48 | Link to Comment robnume
robnume's picture

What the Fuck? Jump, Central Bankers, Jump!!!!

Fri, 11/09/2012 - 20:09 | Link to Comment Bob
Bob's picture

The video:

https://www.youtube.com/watch?v=yge311sFhC8

It's funny, watching it three years later--it's as great as it was then . . . yet it ruefully deepens your understanding of how shit has gone in the real world over that time. It's ugly. 

Something tells me we've been slackers on this shit.  It's hard to argue with results. 

Fri, 11/09/2012 - 19:53 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

Lots of Zero Hedge readers have real gold, but it you want it you better learn to scuba, buba.

Fri, 11/09/2012 - 20:01 | Link to Comment Never One Roach
Never One Roach's picture

New York rations gasoline; storm victims still in the dark

 

 

http://news.yahoo.com/northeast-digs-snow-gas-rationing-expands-00495134...

Fri, 11/09/2012 - 22:19 | Link to Comment Oleander
Oleander's picture

The  TSA is sending in screeners from across the country. Will they be houseing the Sandy victims at Fort Dix? Fema Camp? I know a screener who was deployed to NJ.

 

Fri, 11/09/2012 - 20:21 | Link to Comment rosethorn
rosethorn's picture

Mascot bird teaching Fukushima children how to avoid radiation — RT



"A report by Fukushima Medical University first published this April and updated in July revealed that 36% of Fukushima children have unusually overgrown thyroid glands, and could be prone to cancer. Of 38,000 children examined, 13,000 had cysts or nodules as large as five millimeters, the Health Management Survey stated, which made doctors around the globe rate Japan’s reaction to the aftermaths of Fukushima disaster as “ultimately medical irresponsibility.”"

Sun, 11/11/2012 - 03:51 | Link to Comment Non Passaran
Non Passaran's picture

Rt.com? I think I might get excited if two credible sources post similar news!

Fri, 11/09/2012 - 20:37 | Link to Comment Piranhanoia
Piranhanoia's picture

The deutsche gold is hardly pure.  It has the blood of millions of europeans in it.  That is how they stole it.

Fri, 11/09/2012 - 21:38 | Link to Comment Urban Redneck
Urban Redneck's picture

Most the gold that exists in throughout the world has the blood of millions from hundreds of wars over centuries of "civilization" in it.  You argument is beyond naive.

Fri, 11/09/2012 - 23:19 | Link to Comment smiler03
smiler03's picture

Good point. Those Spaniards killed "quite a few" Aztecs and Incas to make their churches shiny.

Sat, 11/10/2012 - 01:10 | Link to Comment willwork4food
willwork4food's picture

Yes, but a shiny gold church erases all sins. Right?

Fri, 11/09/2012 - 20:41 | Link to Comment Odin
Odin's picture

Fucking Rothschilds...

Sat, 11/10/2012 - 02:45 | Link to Comment putaipan
putaipan's picture

fucking templars....

Fri, 11/09/2012 - 20:42 | Link to Comment BattlegroundEur...
BattlegroundEurope2011's picture

Looks like Gold actually degrades over time.  Who would'uv thought.

Fri, 11/09/2012 - 20:55 | Link to Comment Boxed Merlot
Boxed Merlot's picture

So, is this circa 1968 info the kind of stuff we should expect the new Utah Facility to have at their disposal for dissemination to the free people of the US?  Or will it just be made available for the dorks of the realm busy frisking gramma on the tarmac at Lee Bird Field in North Platte NE?

Fri, 11/09/2012 - 21:01 | Link to Comment dexter_morgan
dexter_morgan's picture

LOL, so much for honor amongst thieves

Fri, 11/09/2012 - 21:13 | Link to Comment Smiddywesson
Smiddywesson's picture

A friend of mine just landed a job with a precious metals dealer.  In preparing him for this topic, I wonder if he will think I am absolutely out of my mind?  How does a rational person describe to another rational person that the world he lives in, the politics, the financial world, the class structure, and all the history he has ever learned is a falsehood?  I might just hand him copy of The Matrix and tell him good luck.

Fri, 11/09/2012 - 21:20 | Link to Comment Smiddywesson
Smiddywesson's picture

I was serious.  He knows NOTHING about PMs.  LOL, good luck!

Fri, 11/09/2012 - 23:29 | Link to Comment smiler03
smiler03's picture

Like countless employers these days, they want them ignorant so that they can brainwash them from the start. Ivy League University Grads into Wall Street, for example.

An observation: a bit like religion.

Sat, 11/10/2012 - 02:46 | Link to Comment putaipan
putaipan's picture

freakin'chicago school boy's......

Sat, 11/10/2012 - 01:24 | Link to Comment willwork4food
willwork4food's picture

Unless they are ready to know more, they ain't ready

'throwing pearls to swine' comes to mind

Sat, 11/10/2012 - 02:48 | Link to Comment putaipan
putaipan's picture

the oystee's were delicious....but , what were those hard round white things?

Fri, 11/09/2012 - 21:14 | Link to Comment Youri Carma
Youri Carma's picture

Exclusive:Gold Fort Knox’s gone! http://www.fgmr.com/we-have-a-right-to-know.html

December 13, 1999 – In the 1970?s a very courageous gentleman named Edward Durrell claimed that substantially all of the US Gold Reserve being stored at Ft. Knox was gone. Only 1,000 tonnes or so of the 8,500 tonnes supposedly being stored there remained. The rest had been secretly taken from Ft. Knox and shipped to London in 1967 and early 1968 for sale by President Johnson in an ill-fated attempt to keep the price of Gold at $35 per ounce.

Mr. Durrell provided a lot of anecdotal evidence to support his claim. These included eyewitness accounts of hundreds of Army trucks leaving Ft. Knox in the middle of the night over a period of many weeks, supposedly loaded with the Gold bounty. Other interesting but circumstantial evidence was the sudden and unexpected dismissal of Gordon Tether, business editor for London’s Financial Times, who published Mr. Durrell’s claims. To my knowledge, no mainstream US newspaper dared to publish Mr. Durrell’s allegations.

Jim Willie (Part 2/2): the rush for physical gold is on http://www.youtube.com/watch?v=lrFCxMSt4ps

Jim Willie (Part 1/2): US recovery is a fairy tale http://www.youtube.com/watch?v=3rFLJ-bMfCs

Fri, 11/09/2012 - 22:31 | Link to Comment brak
brak's picture

Simon Gruber'd Bitchez!

Fri, 11/09/2012 - 22:23 | Link to Comment JustPrintMoreDuh
JustPrintMoreDuh's picture

Throw internet kill switch in 5 .. 4 .. 3 .. 2 .. 1 .. 

Fri, 11/09/2012 - 22:42 | Link to Comment Atomizer
Atomizer's picture

Is the Federal Reserve Act going to expire?

http://www.federalreserve.gov/faqs/is-the-federal-reserve-act-going-to-expire.htm

 

nudge nudge, wink wink

Fri, 11/09/2012 - 23:04 | Link to Comment tony bonn
tony bonn's picture

zh has laid a huge malodorous turd the size of hurricane sandy....

the facts presented by james turk and others regarding the dissipation of german gold is, contrary to the assinine opinion expressed in this farticle, based on forensic evidence and subsequent corroboration.....i would urge readers to obtain information elsewhere on this important topic....

germany has little to no gold and its official reserves vastly overstate any remnants it may still posess. for the same reason that barry soetoro refuses to disclose his legal birth certificate - issued no doubt in or near mumbai (kenya - not india) - so the us government and private banking cartel aka the federal reserve refuse to permit german delegations to inspect their gold.

it is laughable that anyone considers a riddle wrapped within an enigma wrapped within wet tissue paper a tangible good. you couldn't get a driver's license with such flimsy evidence of identity and i surely wouldn't extend such faith based gibberish to the gold supply of the german republic.

Fri, 11/09/2012 - 23:31 | Link to Comment Almost Solvent
Almost Solvent's picture

So, the gold isn't there like they say it is?

/sarc

Sat, 11/10/2012 - 02:50 | Link to Comment putaipan
putaipan's picture

that ain't sarc/ baby..... that's naiiiiiivtee'.

Sat, 11/10/2012 - 00:21 | Link to Comment helping_friendl...
helping_friendly_book's picture

I wasted my time trying to write what I just read!

Right on!

It is a contract issue since the FRBNY is a, private, banking cartel.

Let the Germans sue in Brussels or press Tel-Aviv!

Not our, or Barry's, problem.

Sat, 11/10/2012 - 01:04 | Link to Comment newengland
newengland's picture

James Turk, a good gold man; trustworthy, imo.

Fri, 11/09/2012 - 23:34 | Link to Comment Divine Wind
Divine Wind's picture

 

 

Tyler, this is excellent work. Pretty ballsy reporting in certain respects.

Be careful, brother.

I am certain there are people at Buba and elsewhere who are saying;

"Who in the F*CK is this Tyler Durden guy?"

Sat, 11/10/2012 - 00:10 | Link to Comment helping_friendl...
helping_friendly_book's picture

Have you ever considered ZH might be a device of TPTB? 

A device to enable the military indusdrial complex?

Think about it?!

Cohen chicanery!

Why should our gov't get involved in a corporate, civil, contract issue?

Let the Germans take it to Brussels or attack Tel-Aviv. NOT OUR PROBLEM!

 

Sat, 11/10/2012 - 00:21 | Link to Comment Divine Wind
Divine Wind's picture

 

 

WAIT JUST ONE SECOND HERE.

Tyler, are you really who you say you are????

Sat, 11/10/2012 - 01:12 | Link to Comment helping_friendl...
helping_friendly_book's picture

That is what I am saying!

What is TDs interest, other than drama, in the Germans gold deposits with a private banking cartel i.e. the FRBNY?

The article is written in such a way as to try and encumber, or make the appearance of encumbrance, the Gov't of the USA when it is a contract between the German Gov't and a (Israeli?) corporation, a private banking cartel.

I protest and challenge the legitimacy of this articles premise.

Is the US Gov't bound to the FRBNYs contracts?

Let us hash this out now before we fight the Germans, on behalf of the banking cartels, a third time!!!!!!!

Sat, 11/10/2012 - 01:30 | Link to Comment willwork4food
willwork4food's picture

Good points HF. I kind of like to think along the lines of Les Visable that the logical outcome of evil feeds upon itself..and ultimately destroys itself.

Unfortuanately it takes a few others with them...

Sat, 11/10/2012 - 01:49 | Link to Comment helping_friendl...
helping_friendly_book's picture

I'm not fluent in French, think I know what your saying, appreciate your concurrence, 

Let the Germans sue the FRBNY at the Hague. 

Let the Germans bankrupt the FRBNY and repossess Israel. 

Why should our state be involved?

If the FRBNY absconded with the Krauts  gold; let the Krauts sue the FRBNY (Israeli banking cartel) to recover their property. 

I consider this a civil matter to be resolved in civil court. If the Germans get no satisfaction let them seek satisfaction in Tel-Aviv.

Sat, 11/10/2012 - 02:48 | Link to Comment helping_friendl...
helping_friendly_book's picture

Does it seem strange to you that the Third Reich would attempt to annilate Jewry in western and Eastern Europe then place their gold reserves with a Jewish Banking Cartel?

How is this possible?

The Germans had no gold reserves after their surrender in 1945!

The Allied armies, Russian and Western Europe, seized any gold as spoils of war.

Where did this huge reserve come from?

Why would the victors allow the vanquished to keep ill gotten booty?

If the Germans were so evil then why did we forgo the millions killed and enable the Huns to recapture and build the second largest  Gold reserve in the world?

All gold held in private, Jewish, banking cartel custody? 

Does anyone else realize a huge lie being perpetrated on the living relations of those who were slaughtered?

I know!! I have done my research! My DD. 

If you care to know the truth you will seek the truth.

I am no anti Semite gauging my love for the Palestinian people and work to restore the Palestinian State including self determination of the Palestinians.

 

 

Sun, 11/11/2012 - 03:32 | Link to Comment jimmyjames
jimmyjames's picture

HF-

Great post!

Herbert Walker Bush was there-

Do NOT follow this link or you will be banned from the site!