On the heels of some rather cryptic communications from US Treasury Secretary, Steven Mnuchin, after his visit to Fort Knox, today John Embry told King World News that Mnuchin was just being clever, and no, all of the US gold is not “safe” in Fort Knox.
The Gold Is Not All There
John Embry: “Eric, there was a very interesting development in the gold world on Monday. US Treasury Secretary Steve Mnuchin, paid a visit to Fort Knox. This was allegedly the first visit by a US Treasury Secretary to Fort Knox since 1948. He reported the “gold is safe.” An interesting play on words in that he did not say it was all there…
If The Gold Is Really There, Why Not Do An Audit?
John Embry continues: “As you know, there has been ongoing controversy for decades about the status of the US gold reserves, which were last formally audited in 1953, a mere 64 years ago. If the US government is telling the truth and all the gold is there, why not do an exhaustive audit and thus shut up all the skeptics on the subject? I believe that for many years considerable amounts of Western central bank gold have been mobilized in order to provide physical supply to facilitate the massive paper gold scam occurring on the Comex and the LBMA. Meaning, all the US gold is definitely not “safe” in Fort Knox.
There is undoubtedly gold in a number of Western central bank vaults, but because of swaps, etc, nobody on the outside knows who really owns it and how many claims there are on the same bar. This will all end when the current fiat global system implodes and the public’s gold demand overwhelms the physical available from all sources. With the direction things are currently headed in the world, that moment may not be all that far away.
This Could Be Catastrophic
Changing topics, I am not comfortable with where trade relations of various countries are headed. The US is destroying trade relationships in an over-indebted and weakening global economy could prove to be catastrophic. Observers should recall the devastating impact that the Smoot-Hawley Act had in the 1930s depression. The NAFTA negotiations with Canada and Mexico will be challenging enough, so I don’t think getting into a heated trade war with the Chinese at this stage of the economic cycle is a very good idea. Let’s face it, the American public has been dining out on cheap Chinese goods for several decades. And now that real incomes for the average American are declining, replacing cheap Chinese goods with materially more expensive ones isn’t going to go over well with the public.
However, it’s not just the US which is the guilty party in this area. I see that China and India are making threatening gestures on the same subject due to their ongoing conflict over Bhutan. When the two countries, which have the world’s largest populations, put their trade relationships at risk, only bad outcomes can occur.
A Devastating Financial Impact
Thus, I really believe that the central banks and their allies are going to have their hands full in the coming months, attempting to continue their programs to keep global bond and stock markets afloat. A sharp decline in stocks or bonds or both could have a devastating impact financially and economically. So as I’ve warned in the past, I don’t believe that investors can be too careful here.”
***KWN has now released the remarkable audio interview with whistleblower and London metals trader Andrew Maguire discussing the US propaganda surrounding Fort Knox, an update on the upcoming 250 tonne physical order for gold and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: EXPOSED: Gold vs Stocks. Is The Price Of Gold Really Headed To $10,900? CLICK HERE.