Richard, the BOE is "selling" gold which is already long gone (per post 33516) in an effort to cover up that fact.
At this stage, the BOE knows they can get settlement only in dollars for their gold loans so they restrict the sales to LBMA members (per post 33520), including the BOE's borrowers, and sell OWNERSHIP of the gold to those borrowers, which now get to cover their metal loans with dollars.
Nobody needs to know that the PHYSICAL GOLD is already long gone (again per post 33516), and that the BOE is merely covering a bad debt, since the "preferred approach will be to credit the allotted gold bars to gold accounts held with the Bank of England" (post 3520), rather than physical delivery.
Once the (non-existent) gold bars are "sold" back to the borrowers, their is no motivation for a public audit, as they are now a private holding (of course what the borrower will actually own is nothing more than a gold certificate, which will nevertheless function to render what it owes the BOE a wash).
(Take a second look at Ted Butler's numerous articles at Kitco arguing metal loans can never be repaid with metal).
This scenario may be obvious enough even for the mainstream press to pick up at some point. The "help indebted poor countries" rationale certainly no longer makes sense. Also, the idea that England had to sell to join the Euro (see eg post 33519) makes no sense as well, since England had a much lower percentage gold reserve than the Euro System to begin with, 17% versus 30% (post 33521).
What do you think? Done my research for tonight. Good Night. |
