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To: KarlInOhio
If Germany owns the gold and stores it at the Fed, the Fed could "lend" it to person A who then sells short (on paper) to person B. Person C then borrows it and sells it short to person D.

No they couldn't because A) the gold doesn't belong to them, and B) the Fed doesn't deal with individuals. Around 98% of the gold in the vault at the New York Fed belongs to foreign countries. Virtually all the rest belongs to international agencies. Only a fraction of a percent belongs to the U.S.

38 posted on 12/10/2014 11:23:30 AM PST by DoodleDawg
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To: DoodleDawg
No they couldn't because A) the gold doesn't belong to them,

It wouldn't be the first time bankers started playing fast and lose with valuables in their trust. Not allowed is a long way away from can't be done, especially with an organization which is never audited.

and B) the Fed doesn't deal with individuals.

Then replace persons A through D in my example with major banks and investment companies which already deal with the Fed in billion dollar amounts. What happens when Chase or Bank of America comes up with a "great idea" where the Fed can pick up 1 or 2% of the value of their gold with absolutely no risk and the gold doesn't even have to leave their vault? Everything is fine just so long as no country asks for a physical withdrawal of the gold.

43 posted on 12/10/2014 11:31:51 AM PST by KarlInOhio (The IRS: either criminally irresponsible in backup procedures or criminally responsible of coverup.)
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