The late news about a so called “gold crisis” and its relation to the collapse of the dollar are certainly very worrisome. At any case, after taking the input of some organizations the only clear thing is that this situation is open to the best guess you can give. This issue is obscure on itself, but we must consider the strength of the dollar doesn’t rely just on its gold reserves, but also other aspects as the trading of oil and ability to produce new technology.
Lets start from the beginning. In 2012 Germany had requested the Federal Reserve an audit of its holdings, but this demand was denied. Three months later after that denial, Germany requested that by 2020, 50% of its total gold reserves back – including 300 tons from the Federal Reserve. After a lot of speculation of how the Fed would give this gold back to the Germans, finally it was agreed will take seven years to complete the transfer. The denial of the audit barely made any headlines, but the denial to give Germany its gold right aways and rather deluded the transaction across seven years, it certainly has caused major fears about the stability of the U.S. as a secure haven for gold. [Global ResearchNov 25-2014]
No less important is the fact Germany isn’t the only country maneuvering away from the dollar by taking its gold back. European countries have quietly reducing their dollar, euro and pound foreign exchange reserves and adding to their gold reserves in recent years. Demands for gold repatriation accelerated after the Lehman Bros. collapse and during the global financial crisis. At this point such a move could be justified to install public confidence during the global crises. President Hugo Chavez was able to bring its gold back to Venezuela in 2011. It has been followed by similar moves by other large gold owning nations and central banks, most notably, Netherlands. Also France and Switzerland are expected to ask for the gold back too. This tendency is expected to continue. Many experts suggest central banks have already quietly asked for their gold back from the U.S. Canada and England. Singapore, Hong Kong and Zurich seem to be the new safe-havens to store gold as Netherlands did once they took their gold from the U.S. [RT Nov 28-2014]
Also, Brazil, Russia, India, China and South Africa (BRICS) have their Bank, which for many is an open challenge to the U.S. In addition, Russia and China are taking important steps to trade with each other and with other countries in their own currencies, opposite to use the traditional dollar [RT Aug 8-2014]. Russia has the 5th biggest foreign exchange reserves and the 6th largest gold reserves on the world. In total, the assets amount to over $1.5T [RT Aug 15-2014]. In addition Russia has produced more gold than the U.S. for the first time in 25 years. It’s now the world’s third biggest producer just after China and Australia. In the last five years 270 mineral deposits were found in Russia. In 2013 Russia increased gold production by 12.6% achieving 254,241 tons. China, the world’s major gold producer, increased its gold production by 6.2% to 428.16 tons a year [RT Jul 11-2014].. Take into account also China got rid of $47.8B of US Treasury bonds, about 3.6% of its Treasury holdings on 2013, bringing down its total holdings to $1.27T [Quartz Feb 19–2014]. For many, China has already taken the second place as largest holder of gold in the world surpassing Germany.
Like it was said before, everything is open to speculation but we must be aware of some important points. The Federal Reserve’s gold holdings have not been audited in over 50 years – the last audit, and the last public visit, was in 1953. No outside experts were allowed during that audit, and the audit team tested only about 5% of gold there. So, there hasn’t been an actual comprehensive audit in over 60 years. This fact has made the U.S. dollar suspicious of the solvency. We must note there is a obscure factor to take into account, right after the U.S. sponsored coup in Ukraine, its gold reserves disappeared. That seems to be unrelated, but it shouldn’t be ignored.
Independently of the “gold crisis,” the U.S. government is in danger of a financial collapse due to its endless wars and its tolerance and complicity with Wall Street rigging of markets. Wars and Wall Street are the factor to bring a collapse, which is leading to countries taking their gold back to secure its national treasure. It is up to the U.S. public to demand transparency to our government and full responsibility regarding its policy.
Copyright © 2024 Untwisting Reality. All Rights Reserved. 
Is the “Gold Crisis” Killing the United States Dollar?
The late news about a so called “gold crisis” and its relation to the collapse of the dollar are certainly very worrisome. At any case, after taking the input of some organizations the only clear thing is that this situation is open to the best guess you can give. This issue is obscure on itself, but we must consider the strength of the dollar doesn’t rely just on its gold reserves, but also other aspects as the trading of oil and ability to produce new technology.
Lets start from the beginning. In 2012 Germany had requested the Federal Reserve an audit of its holdings, but this demand was denied. Three months later after that denial, Germany requested that by 2020, 50% of its total gold reserves back – including 300 tons from the Federal Reserve. After a lot of speculation of how the Fed would give this gold back to the Germans, finally it was agreed will take seven years to complete the transfer. The denial of the audit barely made any headlines, but the denial to give Germany its gold right aways and rather deluded the transaction across seven years, it certainly has caused major fears about the stability of the U.S. as a secure haven for gold. [Global ResearchNov 25-2014]
No less important is the fact Germany isn’t the only country maneuvering away from the dollar by taking its gold back. European countries have quietly reducing their dollar, euro and pound foreign exchange reserves and adding to their gold reserves in recent years. Demands for gold repatriation accelerated after the Lehman Bros. collapse and during the global financial crisis. At this point such a move could be justified to install public confidence during the global crises. President Hugo Chavez was able to bring its gold back to Venezuela in 2011. It has been followed by similar moves by other large gold owning nations and central banks, most notably, Netherlands. Also France and Switzerland are expected to ask for the gold back too. This tendency is expected to continue. Many experts suggest central banks have already quietly asked for their gold back from the U.S. Canada and England. Singapore, Hong Kong and Zurich seem to be the new safe-havens to store gold as Netherlands did once they took their gold from the U.S. [RT Nov 28-2014]
Also, Brazil, Russia, India, China and South Africa (BRICS) have their Bank, which for many is an open challenge to the U.S. In addition, Russia and China are taking important steps to trade with each other and with other countries in their own currencies, opposite to use the traditional dollar [RT Aug 8-2014]. Russia has the 5th biggest foreign exchange reserves and the 6th largest gold reserves on the world. In total, the assets amount to over $1.5T [RT Aug 15-2014]. In addition Russia has produced more gold than the U.S. for the first time in 25 years. It’s now the world’s third biggest producer just after China and Australia. In the last five years 270 mineral deposits were found in Russia. In 2013 Russia increased gold production by 12.6% achieving 254,241 tons. China, the world’s major gold producer, increased its gold production by 6.2% to 428.16 tons a year [RT Jul 11-2014].. Take into account also China got rid of $47.8B of US Treasury bonds, about 3.6% of its Treasury holdings on 2013, bringing down its total holdings to $1.27T [Quartz Feb 19–2014]. For many, China has already taken the second place as largest holder of gold in the world surpassing Germany.
Like it was said before, everything is open to speculation but we must be aware of some important points. The Federal Reserve’s gold holdings have not been audited in over 50 years – the last audit, and the last public visit, was in 1953. No outside experts were allowed during that audit, and the audit team tested only about 5% of gold there. So, there hasn’t been an actual comprehensive audit in over 60 years. This fact has made the U.S. dollar suspicious of the solvency. We must note there is a obscure factor to take into account, right after the U.S. sponsored coup in Ukraine, its gold reserves disappeared. That seems to be unrelated, but it shouldn’t be ignored.
Independently of the “gold crisis,” the U.S. government is in danger of a financial collapse due to its endless wars and its tolerance and complicity with Wall Street rigging of markets. Wars and Wall Street are the factor to bring a collapse, which is leading to countries taking their gold back to secure its national treasure. It is up to the U.S. public to demand transparency to our government and full responsibility regarding its policy.