Powell:  “The Bank of England was pretty cooperative with me this week when I asked them to show whether they wanted to be accountable or not for what seems to be a pretty big discrepancy in the custodial gold that they have reported to the public between February and this month....

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“Alasdair Macleod (first) caught them at this.  He found that the Bank of England’s annual report in February reported about 500,000 (standard) 400 ounce gold bars in custody.  Then he noted a presentation the Bank of England put on its internet site last month reported, instead of 505,000 gold bars, (just) over 400,000 (gold bars), a difference of more than 100,000 bars, or 1,300 tons.

So why the discrepancy between February and June?  You had to wonder whether this was the (physical) gold that was used to bomb the price in April.  I emailed the bank’s Public Information Office to ask if Alasdair had gotten anything wrong, if there had (in fact) been a decline in the custodial gold held by the Bank of England between February and this month? 

The bank got back to me pretty quickly saying, ‘The figure being reported to the public now was deliberately non-specific and that they would have no further comment on this.’”

Eric King:  “Chris, obviously the interesting thing about this (missing) 1,300 tons in the Bank of England is England itself only has about 300 tons of gold.  So you are really talking then about (the BoE) selling and leasing out other countries (physical) gold (which they have trusted the Bank of England to store for them).”

Powell:  “Yes, that’s certainly the implication, Eric.  Whose gold was this?  The Bank of England vaults gold not only for other nations, but (also) for bullion banks and private banking operations.  So if you’ve got gold at the Bank of England, you may not have it there any more whether you know it or not.”

Eric King:  “I believe Germany has 1,436 tons (of gold) vaulted with the United States.  They asked for their gold back and were only able to get 300 (tons back) over a period of 7 years.  So obviously that gold was leased out as well?”

Powell:  “That is certainly the implication, Eric -- that the gold is not available.  Not even 20% of it is available in less than 7 years.  The United States can claim that it still has all of its gold, but it may be able to claim that only if it all along has been leasing and rehypothecating the gold it has been holding in trust for other nations.”

Powell went on to add:  “I’m sure that the people in charge of the gold price suppression scheme have figured that it is the (best) mechanism for controlling the world -- for controlling the currency markets, for exploiting the world, just as the Nazi occupation of Europe exploited Europe.

They (the Nazis) expropriated the occupied countries (wealth) mainly not at the point of bayonets, but through the rigging of the currency markets and the setting of exchange rates that were grotesquely in favor of the Reichsmark.  So the Nazis exploited Europe mainly through rigging the currency markets.

That’s what the West has been doing through the gold price suppression scheme.  It’s a dollar support scheme.  I’m sure the United States and its allied powers figured that this was the (best) mechanism for controlling the world -- through the currency markets.  But if the gold is running out, then the fuel to maintain this system is running out too.  I think the growing recognition (of this oppression) by the exploited countries is hastening the end of the scheme.”

IMPORTANT - The above portion was just a small snippet of what Powell had to say about this extraordinary situation.  The audio interview with Powell is available now and you can listen to it by CLICKING HERE. 


© 2013 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 audio interviews with Hugo Salinas Price, Chris Powell, Bill Fleckenstein, Eric Sprott, Egon von Greyerz, David Stockman, Andrew Maguire, John Mauldin, Art Cashin, William Kaye and Marc Faber are available now.  Also, other outstanding recent KWN interviews include Jim Grant and Felix Zulauf to listen CLICKING HERE.

Eric King

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