17 Questions That Deserve Answers

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Gary Christenson - Deviant Investor

  1. Germany requested that the NY Federal Reserve return the gold that Germany shipped to the United States decades ago. If the gold were physically in the vaults, it would be relatively simple to ship the gold back to Germany. It has not been returned, which begs the question, where is Germany’s gold?
  2. If Germany’s gold is “missing,” what about other gold from other countries that is supposedly stored at the NY Fed?
  3. Does the U.S. gold supposedly stored at Fort Knox and at the NY Fed still exist in those vaults?
  4. The U.S. believes in paper dollars and an unbacked debt based currency. Such currency can be created with little more than a few keystrokes on a Federal Reserve computer. Would the Fed and the U.S. government sell gold into the world market to slow the inevitable weakening of the U.S. dollar? Would the Fed and the U.S. government ship (via intermediaries) substantial quantities of gold to China to prevent dumping of T-bonds and dollars? Are gold sales a “delaying action” to extend the reserve currency status of the U.S. dollar?
  5. If China is converting their excess of dollars and T-bonds into gold, buildings, land, businesses, mines, and so much more, what do they believe is the real value of those dollars and T-bonds?
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  7. If much of the German, Italian, French, English, and U.S. gold is “missing” and is now in very strong hands, is the price of gold too low and likely to rise?
  8. What will happen to world bond and stock markets if confidence in the financial system evaporates? Would confidence in the financial system be damaged if the world became aware that most of the gold supposedly stored in government and central bank vaults in the western world is “missing?” Is this the primary reason why the U. S. gold vaults have not been audited for over 50 years?
  9. Why are China and Russia buying large quantities of gold from the western world as well as all of their domestic production?
  10. Paper dollars were, years ago, backed by gold or silver. They are no longer backed by either. Why?
  11. JP Morgan testified before congress in 1912 and stated, Gold is money. Everything else is credit.” Do you understand what this means?
  12. You have $100,000 to invest today into either gold or S&P 500 Index ETFs. Which investment do you believe will purchase more gasoline in three years?
  13. If you had $100,000 to invest into either gold or Confederate paper money and Confederate bonds in 1862, which would have been the better investment 20 years later?
  14. Voltaire stated about 3 centuries ago that “paper money eventually returns to its intrinsic value – zero.” Most paper money systems throughout history have failed. The current paper systems seem likely to fail in the future. What is the intrinsic value of 80 ounces of gold (about $100,000 at today’s prices)? What is the intrinsic value of 5,000 $20 bills ($100,000)? Which seems likely to purchase more food in three years?
  15. Mayer Rothschild supposedly stated, “Give me control of a nation’s money and I care not who makes its laws.” Was he thinking that if he can create the currency and the legislature can be “influenced” with currency, then he can buy the legislation that his banking interests needed? Was he also thinking that if he can create the currency and he can trade that currency for physical gold, he had procured real wealth for his family?
  16. Nixon closed the gold window in 1971 and assured us that it was only temporary. Since then the (official) U.S. national debt has increased from approximately $398 Billion to over $17 Trillion – up by a factor of over 40. Interest must be paid on that debt. Was the creation of $17 Trillion in debt beneficial for the majority of the people and the economy of the U.S. or only for the political and financial elite?
  17. Is the current U.S. paper money experiment going to end differently from any other failed fiat currency system?
  18. In 1971 gasoline in the U.S. cost approximately $0.35 per gallon. Today it costs approximately $3.50 per gallon. The rising national debt correlates with the rising prices of gasoline, tuition, health care, postage, coffee, stocks, gold, copper, rent, food, and so much more. Some of those prices have risen faster (others slower) than the debt, but the trend is the same since 1913 and especially since 1971 – all up substantially. Do you think this is a coincidence? Do you think the ongoing increase in national debt will continue to cause consumer price inflation or that it will, somehow, miraculously, cause prices to go down, in spite of 40 + years of contrary experience?


Is this the end of the world? No! But it is past time to realize that a debt based financial system is largely detrimental to most of the people outside the political and financial elite. Such a debt based system has a limited lifespan and a reset seems both imminent and inevitable. Actions to consider:

  • Eliminate non-mortgage debt and reduce the amount of other debt.
  • Convert variable rate mortgage debt to fixed interest rate debt.
  • Be wary of a stock market that has risen for almost five years and seems to be based more on QE, hope, and artificially lowered interest rates than upon earnings and the health of the economy.
  • Convert paper and digital dollars to gold and silver and store them in a safe depository outside the banking system.
  • Be careful in this increasingly dangerous world.

Suggested Reading

Now Is the Time to Buy Gold
Inflation Will Take Precious Metals Much Higher
European Bail-In Commentary
Gold Investors: Take the Red Pill

GE Christenson
aka Deviant Investor

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14 thoughts on “17 Questions That Deserve Answers

  1. So, the global banksters will end up screwing the pooch . . . resulting in all participants to reset their currencies guided historically by physical gold and silver. Just need a bit more famine, turmoil and strife before all the participants agree to start anew.

    • re the audit that will not be allowed… If the gold is there the audit is not necessary and if the gold is gone, the audit is a complete disaster. I agree though – no audit increases the suspicion.

      GE Christenson
      aka Deviant Investor

  2. All good questions, and most being questions I have asked myself regarding this. To me, one of the most troubling things about the German gold situation is the fact that what little gold was given back to Germany weren’t original German bars. And when questioned about them, the Fed/Germans provided some crazy, ridiculous story about the original bars being melted down and recast in the U.S. to comply with some British standard, something more likely to have been done in Germany after repatriation, if at all. Then when very obvious questions started to be raised about the when/where/how/why this was done, that story was immediately recanted without much explanation. You typically don’t have to lie unless you’re covering something up. I’m not much of a conspiracy theorist, but this whole thing smells very strange to me. If it looks like a rat, feels like a rat, and smells like a rat, its probably a rat.

  3. You advise: “Eliminate non-mortgage debt and reduce the amount of other debt”
    Bur the dollar is slowly but steadily devaluing.
    Wouldn’t it make more sense to keep the debt and repay it with cheaper dollars?

    • I mostly agree with you on fixed interest rate debt. But what if your revolving debt (credit cards etc.) has its interest rate double? Then you will pay much more with cheaper dollars.

      Alternate: keep your debt, buy silver, and expect the silver increases faster than the interest on the debt.

      GE Christenson
      aka Deviant Investor

  4. I think that there is a complete jump in logic when you assume that Germany’s gold is missing. There are multiple reasons why it hasn’t been repatriated. The simple analysis that it is missing may or may not be true. Always look at multiple alternatives, not just the ones that we want to be true. Other alternatives include financial leverage over Germany to make them act in the way the Fed would like to vis-à-vis EU stimulation, etc. There are many rational alternatives. My point is that it is important to look at all possibilities vice choosing the one that best fits what we would like to believe.

    • I would prefer to believe that the Fed and the US government actually have the gold they claim, that it is physically in the vaults, and that it has not been hypothecated or rehypothecated. Unfortunately the simplest explanation of strange behavior over the past several years, inability/unwillingness to return German gold, the excessive exports from the US (official US govt. data) and other anecdotal evidence is that the gold is largely “missing.”

      I admit, per your comment, that this is not the only explanation, and that there may be other good reasons. Unfortunately, the balance of circumstantial evidence, as I see it, is as stated, the gold is probably mostly gone.

      GE Christenson
      aka Deviant Investor

    • Pray do delineate the multiple reasons,which may explain this conundrum . You have come up with one very weak one so far,what are the many others.

      • I assume you are asking about the conundrum of where is the gold.

        In the absence of hard data, all that can be offered is circumstantial evidence.

        1) If the gold were truly in the vault, why was it not shipped back immediately, as requested?
        2) What was returned was, as has been reported, only 5 tons – a relatively tiny amount. Why? The answers from the Germans and the NY Fed have been less than transparent and not very plausible.
        3) It has been widely reported that gold from London Vaults, Comex vaults, JP Morgan vaults, ETF storage, and others has been removed – in quantity – and shipped to Switzerland to be recast into 1 kilo bars. It sees likely that gold from other locations, such as the NY Fed was also shipped east.
        4) Eric Sprott has performed an analysis on gold exports from the US as reported thru US govt data. It appears that far too much gold was exported based on known mining and other sources. The excess was, in his opinion, likely from the official sources of gold at the NY Fed and the US government. There are many such reports: here is one. http://seekingalpha.com/article/1905161-a-look-at-eric-sprott-on-golds-supply-demand-fundamentals

        All circumstantial but interesting. Why no audit for over 50 years? Is it in the national interest or a state secret to refuse an audit? Very strange.

        We may never know in our lifetimes, but the related bits of information certainly point in the direction of missing gold. Similar occurrences have been documented in Europe.

        Really – why is it so unlikely? We all want to believe but when the facts point elsewhere, it is time to entertain the question – is the gold gone?

        GE Christenson
        aka Deviant Investor

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