The calls for full audits, and in some cases, repatriation, of foreign gold reserves being held by the New York Federal Reserve are growing, as now Switzerland, the Netherlands, and Ecuador have joined Germany in those calls and in Ecuador’s case, repatriation, of its gold:
German Calls for Gold Repatriation Intensify As Fed Refuses to Allow Inspection
Obviously, the Fed’s refusal to comply “in the interest of security” is a complete fabrication and obfuscation, what what is Germany going to do? Rush out and tell the world the processes by which the Fed “operates”? Doubtful. As the article correctly observes, the real underlying concern is whether the gold is even there, or, to put it in different terms, has been stolen or re-hypothecated so many times that recovery – even if it is there – would be virtually impossible.
The real concern is expressed accurately and aptly in the final paragraph of the article:
“While Bundesbank officials likely understand the reality (much better than German politicians do) that a German repatriation of it’s entire 1,536 tons of gold reserves held at the NY Fed would likely cause a complete Western financial collapse if/when the Fed failed to promptly deliver said gold (tungsten free), confidence in the Fed and the BOE has clearly been shattered, and it is now only a matter of time for an absolute mad run on every last gram of physical metal underneath the NY Fed ensues.