|February 19, 2013
The U.S. Treasury just released a new report claiming to have performed an audit of U.S. gold held by the Federal Reserve. To be blunt, the report is a complete joke. The report says that the Treasury’s Office of Inspector General performed an audit of the U.S. Treasury’s schedule of U.S. gold reserves held by the Federal Reserve. In other words the report states that they performed an audit of a paper trail and not the actual gold itself. What good is this so-called audit if all they did was check some numbers listed on a schedule? There is little doubt that this report is part of a deliberate disinformation campaign to mislead people into believing that a real audit of U.S. gold reserves was performed.
This is a direct quote from the Treasury’s report stating that they audited a schedule.
We have audited the accompanying Department of the Treasury’s Schedule of United States Gold Reserves Held by Federal Reserve Banks as of September 30, 2012 (the Schedule). This report presents our unqualified opinion on this Schedule.
In fact the entire section dedicated to describing the scope of the audit only mentions auditing and confirming that the numbers in the schedule are correct. There is nothing in the report that talks about a physical audit of the gold itself so even calling this an audit is generous at best.
As expected their opinion on the schedule claims that nothing is wrong and that the general public should assume that everything is fine with the gold reserves. Here’s the full opinion from the Treasury Inspector General as stated in the report.
In our opinion, the accompanying Schedule presents fairly, in all material respects, the balance of the Department of the Treasury’s United States Gold Reserves Held by Federal Reserve Banks as of September 30, 2012, in conformity with U.S. generally accepted accounting principles.
What’s really strange about this is that there are reports from the Los Angeles Times and other news outlets quoting some mystery representative from the Treasury’s Office of Inspector General who says that they spent time counting and testing the purity of the gold bars held by the Fed. The mystery representative even goes on to claim that three of the gold bars they tested were of higher purity than they originally thought. Specifically, the Los Angeles Times report says that weeks were spent counting and testing the gold. If they spent all of this time doing this than why is there no reference to these activities listed in the report? One would think that it would be important to mention these things if a real accounting of the gold took place. Most likely however, these statements from this unnamed source are either grossly exaggerated or outright lies.
The vast majority of U.S. gold is not held by the Fed but elsewhere in places like Fort Knox and Denver. So even if we assume that this was a legitimate audit, the Treasury’s report fails to account for most of the gold reserves. What good is this report if it only examined a small fraction of the aggregate total of gold?
In order to get a real handle on what’s going on with these gold reserves, a true independent audit needs to be performed. Can anyone really expect an institution that has been as historically dishonest as the U.S. government to be able to police itself and offer any sort of transparency? Even the White House press corps is starting to complain about the lack of transparency from the Obama regime and this is coming from some of the most biased so-called journalists on the entire planet. To top it all off this is happening while Obama boasts that he is running the most transparent government in the history of the country. This is a total lie, because honesty and transparency from the U.S. government does not exist presently.
To put it mildly, this so-called audit is almost as ridiculous as the Queen of England inspecting the Bank of England’s gold reserves a few months back. With bogus propaganda stunts like these it is no wonder why Germany is now demanding physical delivery of their gold from the Fed and other central banks. Unfortunately for Germany it is going to take until the year 2020 for them to get roughly half of their gold. Meanwhile the Chinese are buying huge amounts of gold on the open market comparable to what Germany is requesting and the Chinese are having no logistical difficulties in obtaining immediate delivery. If all of the gold reserves were fully accounted for and no funny business was taking place, Germany should have been able to receive their gold in a matter of months not years.
There’s not much else to say about this so-called audit of the Fed’s gold reserves. It is total garbage on so many different levels and shows once again that the U.S. government is afraid to conduct a true independent audit of the gold reserves.