CNBC MOPE: Actual Existence of Gold Reserves is Irrelevant, Itís the Bookkeeping That Matters!
"It doesn't matter if those armies really exist or not. The Fuhrer says they do and that is just the same as if they really are there!" -- The German High Command, just before they lost WW2.
"It doesn't matter if those life boats really exist or not. The blueprint says they do and that is just the same as if they really are there!" -- Captain E. J. Smith, Master USS Titanic
This editorial from CNBC tells us two things. First, that the gold bullion is indeed vanished (or replaced with Tungsten cored fakes) from the NYFED, BOE, and probably a lot of other places. Second, the Wall Street money-junkies know they cannot refuse a request for an audit and purity testing now. So, they have come up with this idea that it doesn't matter if the gold is really there or not as long as we all agree to believe the gold is there based on a bookkeeping entry, which is like saying that we should believe Superman really exists because after all, 5 million comic books can't be wrong. And it reinforces the theory that modern economics is not a science, but a religion, with arbitrary rules and beliefs designed (like all religion) to enslave and exploit the believers.
But it does matter for a very simple reason. Tons of real gold were deposited into those vaults at the federal Reserve. If it is no longer there, we need to know where it went. It didn't simply vanish. It has to be someplace.
More to the point, what will the Fed will do when nations start escalating their calls for their sovereign gold to be returned? Those nations will not be satisfied with a post-it from the Fed that says "trust us; it is really there (somewhere). B. Bernanke!"
Try telling the IRS that according to your copy of Turbo-Tax (the autographed Tim Geithner edition), you already paid all your taxes and that you should be trusted when you tell them the money is already there (somewhere) and the IRS should stop harassing you! Think they would go for that?
The NY FED took in real gold bullion but it appears that they cannot give it back. All they can do is print up a bunch of worthless paper notes claiming to be of the same value as that bookkeeping entry and offer those as a replacement.
But those foreign sovereign nations won't accept that paper either because they know that printing paper notes does not create value or worth out of thin air. Such printing devalues all of the similar paper currency in circulation, including the paper notes already held by those sovereign nations.
The obvious inevitable next step is for the US Government to outlaw private ownership of gold (again), order the American people to turn in their gold to cover the shortfall (like We The People actually have that much) and "compensate" he looted Americans with the aforesaid worthless paper notes.
This editorial claim by CNBC is desperation on the cusp of madness. (Who knows, maybe John Carney is worried his kids will be killed!) The people of all nations should demand their private central bank account for the peoples' gold supposedly on deposit at the NY FED. If the private central banks refuse the people should burn them to the ground, hang the bankers, then march on the NY FED (where they will likely be joined by millions of angry Americans) and, failing to get back their gold bullion, burn that to the ground as well and make the bankers watch from the gallows. ~Mike Rivero