Gold Leaving US Vaults: Signs Of Upcoming Currency War And Armed Conflict

Authored by Peter Korzun via The Strategic Culture Foundation,

The Turkish government has made the decision to repatriate all of its gold reserves that are currently housed in the US Federal Reserve System (FRS). Overall Turkey was storing 220 tonnes, valued at $25.3 billion, in the US, which it repossessed on April 19, 2018.

Turkey’s President Recep Tayyip Erdogan has toughened his stance against the US dollar (USD), declaring that international loans should be made in gold instead of the American currency. Ankara is seeking to reduce dependence on the US financial system. The gold’s homecoming was partly prompted by the US threats to impose sanctions if Turkey goes through with the signed deal to purchase Russian S-400 missile defense systems.

This is a dramatic move reflecting an international trend.

Venezuela repatriated its gold from the US in 2012. In 2014, the Netherlands also retrieved its 122.5 tonnes of gold that were stored in US vaults. Germany brought home 300 metric tonnes of gold stashed in the United States in 2017. It took Berlin four years to complete the transfers. Austria and Belgium have reviewed the possibility of taking similar measures.

Few people believe the US Treasury’s assurances that the 261 million ounces (roughly 8,100 tonnes) in official gold reserves that are stored in Fort Knox and other places are fully audited and accounted for. The Federal Reserve has never been fully and independently audited. The pressure for a full, independent audit of all US gold reserves has always been resisted by the government and in Congress. Nobody knows if the gold is really there. What if the vaults turn out to be empty? It’s wiser to bring your gold home while you can, rather than to just keep on wondering.

The gold bars that the US claims to hold are of low purity and do not conform to international industry standards. Even if the US has the amount of gold it claims to have, most of it would not be acceptable for trading on the international market. While other countries are pulling their gold out of the FRS banks, Russia and China are boosting their reserves, creating gold-backed currencies for themselves and thus moving the world away from the dominance of the USD.

The US dollar’s status as the global reserve currency has been called into question. It faces some tough competition. The tariffs introduced by the US administration as an instrument of coercion against other countries are failing to bolster the greenback, which may soon face headwinds. An international currency war looms as a possibility. This makes investors look for other options. Indeed, why should other countries rely on a US dollar that is not backed by gold or anything but “the good faith and credit of the American worker,” when America itself is not trusted internationally?

For instance, the Chinese yuan is going strong. Russia, Turkey, and Iran are considering the prospects for making payments in their national currencies. Iran has recently announced it is switching from the dollar to the euro as its official reporting currency. Russia and China have a currency swap agreement that avoids settlements in the USD.

The quest to reduce dependence on the dollar was provoked by the ongoing use of sanctions as a political weapon, a kind of foreign-policy tool of choice. Even America's closest allies are threatened by these restrictive measures. The recent attack on the Nord Stream 2 gas project is a good example. It’s only natural for other countries to be looking for ways to resist the US policy of twisting arms. Using alternative currencies and bringing gold home are ways to do that.

America has always opposed such efforts. Any methods would do.

Muammar Gaddafi, the Libyan leader, was toppled and killed after he came up with the idea to introduce a golden dinar to be used as an international currency in the Middle East and Africa. Iran has recently banned the use of the USD in trade. It refuses to sell its oil for the US currency. President Trump is likely to kill the Iran deal in May, provoking Tehran into reviving its nuclear program.

An armed conflict with Iran might be much closer than generally believed. The nuclear deal has been honored, to everyone’s satisfaction but to Washington’s chagrin. Iran undoubtedly has no military capability that would be a threat to the US. It has never been responsible for any terrorist acts committed abroad or things like that. But it has done something unforgivable in the eyes of the US. It has threatened the USD. That’s what Washington cannot accept, because if it does not support the dollar, there will be problems financing the US government’s huge federal debt. A war with Iran would eliminate the largest non-USD oil exporter. One thing leads to another. The gold repatriations are a precursor to a currency war and armed conflict. That’s what drives US foreign policy.


pliny the longer vato poco Sun, 04/29/2018 - 19:26 Permalink

u r right.  0hedge was a place for insight, for different viewpoints, for a place to get the contra view to you own. that's what i loved.  i lurked for years before posting.  i liked, even craved, the intellectual rigor.  someone calling you out for your crap on a view.  we need that.  this used to be that.  i was late to the party but got to see some of the old school guys.  they are mostly gone now. its fucking millenials now with not so much to say . . . 

In reply to by vato poco

Vuke TuPhat Mon, 04/30/2018 - 03:05 Permalink

TuPhat, pc_babe clearly sees Iran as planning invasions of Israel and Saudi and from there wrapping those countries along with Syria, Turkey, Lebanon, Iraq into a grand plan to invade the USA and capture Trump and behead him.

Iran hasn't planned a good invasion of anyone since 300 BC and needs something to spike their domestic economy.

In reply to by TuPhat

MK ULTRA Alpha Gen. Ripper Sun, 04/29/2018 - 18:38 Permalink

The reason the Fed can't be audited is because the 8100 tonnes of gold is a myth. It's been moved to royal vaults in London under the royal banking district known as "The City".

The US doesn't own 8100 tonnes of gold. A third party audit with backup audit for quality control can never happen.

When the financial system stresses the many kinds of derivatives, causing more damage than last time, the Americans believe their government through it's treasury have a back up in the nations gold stockpile. This is a myth.

The new global trading currency, for the one world government, will replace the dollar. Ten old dollars for one new global trading unit. Or worse, it could be a hundred for one. We're just cattle being herded.

In reply to by Gen. Ripper

el buitre MK ULTRA Alpha Sun, 04/29/2018 - 22:20 Permalink

Something in the comments, and even the article, is nebulous.  The purported gold in Fort Knox and West Point is not owned by the private Rothschild banking cartel know as the Fed.  It is "owned" by the US Treasury and sometimes referred to as "the people's gold."  The NY Fed does have a huge gold vault under Liberty Street on the south side of the WTC.  It is connected under the street by a (secret :-) underground tunnel to what used to be another huge vault owned by the Morgue, but recently sold to the People's Republic of China (lol).  The are many countries on the planet that are stupid or corrupt enough to keep their gold with this private cartel.  It has obviously been stolen over the years.  Many are under the impression that Germany repatriated their gold from the Fed.  The truth is that they were only able to repatriate 20% and that took them 3 years.  Apparently shipped across the pond by slow motion canoe.  Their reps were not permitted to see the remaining gold purportedly in storage.

In reply to by MK ULTRA Alpha

Xredsx VWAndy Sun, 04/29/2018 - 18:10 Permalink

America must fall gracefully, or we all perish.

Blame it all on a bunch of corrupted individuals which goes all the way back to may 1st 1771. 

The world learns some very nasty truths about everything, including about how all the wars for the past couple of centuries are connected.

America rejoins family with the commonwealth where she belongs. Creating a hypernation that will bring peace on earth, eventually. Uniting the world by the "right" and with trade. And ending bible prophecy in the process.

Or, we all lose!

In reply to by VWAndy

Der Libertäre VWAndy Mon, 04/30/2018 - 02:26 Permalink

" Germany brought home 300 metric tonnes of gold stashed in the United States in 2017. It took Berlin four years to complete the transfers."

- Do we believe the slave state got her gold from her master?

- We know it was NOT the gold "stashed in the United States"! The original numbered bars were somehow gone.

- It SURELY did not take "Berlin four years to complete the transfers" - but the thieves in the US to steal gold somewhere else to be able "to complete the transfers".

- And it is finally just a small portion of the German gold, I guess half of Germany's gold pile is still "stored" in the US and we all know it is gone as well.

In reply to by VWAndy

Sudden Debt Sun, 04/29/2018 - 18:00 Permalink

not that difficult to refine gold.

But what when it turns out that 2/3 of all the gold is just red copper?

The bars have been diluted with copper since the beginning.

First it was 90% gold bars and they kept melting them and shaving off the gold content.


The last one to have their gold at the FED will receive nice 100% pure copper.

numapepi Sun, 04/29/2018 - 18:01 Permalink

This from the end of the article, " It has never been responsible for any terrorist acts committed abroad or things like that. " hints the author either is ignorant or is willing to bend the truth to make a point.

Because does he not remember the Beirut bombing of 1983?