Bill Haynes continues:

“They used it in the 90s to suppress the price of gold.  It’s not there and the German people are waiting for it to come back.  That’s a black swan that could really make prices skyrocket.  Don’t know that anyone is going to come forth to validate what Turk is saying, but let’s remember that Turk wrote about this in 2001, and he’s not backing off of what he said.

He’s saying that gold was leased, and that the vaults could very well be empty.....

Continue reading the Bill Haynes interview & John Hathaway piece below...


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“Eric, you know the United States gold has not been audited, other than by the Treasury Department, since Eisenhower was President.  We don’t know where our gold is either.  So we don’t know where our gold is or how much is there.  But we also don’t know who truly controls the gold.  Who has legal title to the United States gold?

The IMF reports the US gold is owned by the Federal Reserve System.  As KWN readers know, the Federal Reserve is a privately owned organization, which is owned by the banks.  So the banks (US & foreign) own the US gold.  We don’t even know if the US Treasury has a secondary certificate of title claim on this gold.”

On this same topic, here are some incredible snippets from prolific fund manager John Hathaway’s 2001 piece.  Readers need to keep in mind that Hathaway wrote this when the price of gold was well under $300 an ounce, and yes, Hathaway cites James Turk’s work in this extraordinary piece.  Here are key portions from that 2001 piece:

John Hathaway August, 2001:

In fact, there is a growing body of credible evidence that the US government and others may have been manipulating the metal price for some time ... The Exchange Stabilization Fund controlled by the US Treasury, and essentially unaccountable to Congress or the American people, appears to be a key instrument for intervention. It appears that US gold reserves have been swapped or in some way encumbered. The basis for this supposition can be found in the ESF financial statements themselves.

According to James Turk in his Freemarket Gold & Money Report dated August 13th, 2001, SDR Certificates held by the ESF declined from a peak level of 10.2 billion to 2.2 billion as of year end 2000. A precipitous decline from 9.2 billion as of year-end 1998 to current levels coincided with an accelerated decline in the gold price that began in May 1999 (announcement of UK Gold Auction) and the breakout of the trade weighted dollar index from a multiyear trading range. Each SDR represents 1/35th/oz of gold held by the Treasury as monetary reserves for the United States. What is going on here?  A decline equating to 227.7 million ounces, or 87% of the US gold reserve demands a more than perfunctory explanation.

If the US and other governments have been actively involved in manipulating the gold market, there is far greater upside potential for the gold price than I had previously imagined. The US government may have already expended considerable resources to hold the gold price in check.

The depressed price of gold has been core to the system of beliefs underpinning dollar overvaluation. To the extent the depressed price of gold reflected more than natural causes, one can expect the retribution of market forces to be fierce once they gain the upper hand. The mania and the supremacy of the dollar are history.

Again, readers need to keep in mind that Hathaway wrote this and made these predictions at the dead lows of the gold market in 2001.  It is no accident that he is one of the most respected minds in the gold world today.

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with Rick Rule, James Turk, Egon von Greyerz, Gerald Celente, MEP Nigel Farage, Dr. Stephen Leeb and Rick Rule are available now.  Also, be sure to listen to other recent KWN interviews which included Jean-Marie Eveillard, Bill Fleckenstein, and Art Cashin (UBS $612 billion)  by CLICKING HERE.

Eric King

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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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