As you know, I've been following the Bearer Bonds Scandals, and the German gold audit story, for some time on this website, and many of you are likewise doing so, and now sending me information. Well, this one comes from a reader of this website, and it came to me as I was scheduling this two weeks' worth of blogs. In a post a few days ago I pointed out how Zero Hedge, in an article on the German gold audit, suggested strong evidence that the Bank of England had been involved in a scheme to defraud the Bundesbank of its gold, by shipping subpar gold to the German central bank.

Well, now it seems that there is further confirmation of this story:

Exclusive: Bank Of England To The Fed: "No Indication Should, Of Course, Be Given To The Bundesbank..."

I hope you caught the end of this article and those significant paragraphs, but in case you didn't, here they are once again:

"And while others engage in click-baiting using grotesque hypotheses of grandure without any actual investigation, reporting or error and proof-checking to build up hype and speculation, which promptly fizzles and in the process desensitizes the general public and those actually undecided and/or on the fences about what truly goes on behind the scenes, Zero Hedge travelled (metaphorically) in space - to London, or specifically the Bank of England Archives - and in time, to May 1968 to be precise. "While there we dug up a certain memo, coded C43/323 in the BOE archives, official title "GOLD AND FOREIGN EXCHANGE OFFICE FILE: FEDERAL RESERVE BANK OF NEW YORK (FRBNY) - MISCELLANEOUS", dated May 31, 1968, written by a certain Mr. Robeson addressed to the BOE's Roy Bridge as well as its Chief Cashier, and whose ultimate recipient is Charles Coombs who at the time was the manager of the open market account at the Fed, responsible for Fed operations in the gold and FX markets. "This memo, more than any of the other spurious and speculative accusation about Buba's golden hoard, should disturb German citizens, and of course the Bundesbank (assuming it was not already aware of its contents), as the memo lays out, without any shadow of doubt, that the BOE and the Fed, effectively conspired to feed the Bundesbank due gold bars that were of substantially subpar quality on at least one occasion in the period during the Bretton-Woods semi-gold standard (which ended with Nixon in August 1971)" (Emphasis in the original)

Now this is more than just hugely significant, for the implication here is that two of the world's most important, and largest central banks - the Bank of England, and the Federal Reserve, or at least, its New York Branch - are involved in an international scheme of fraud. But to what purpose?

I have been suggesting, along with Catherine Austin Fitts and some others, that we are looking at a hidden system of finance, a huge slush fund, that funds covert operations and activities of all sorts. Given the role of the Exchange Stabilization Fund, part of this operation antedates World War Two, and indeed, if one recalls the pithy observations of interwarReichsbank president Hjalmar Schacht, it isn't the first time the Anglo-American bankers were playing fast and loose with Germany's gold. Schacht, it will be recalled, dismissed the whole thing as "an amusing incident," but he was far too byzantine a man to ignore the effect of his words on "those in the know." Interesting that his niece wound up marrying SS Lt. Col. Otto Skorzeny, and that Schacht himself ended up working for....Aristotle Onassis. Draw what connections or conclusions from that strange constellation as you will.

In any case, I digress: what we are looking at is something indelibly intertwined with the postwar American national security state, and therefore, indelibly intertwined with its military-industrial-intelligence complex. So it is, perhaps, time to speak in a parable, or via an analogy. If one puts a certain amount of electricity into a circuit, a large portion of that input should appear at the load end of the circuit. We may call this electricity, "Quantitative easing." With all the quantitative easing going on over the last few years, where's the Weimar style inflation so confidently predicted by some many pundits that should have appeared long before now?

....unless, of course, the current is going somewhere else, and the load end isn't where we think it to be....

...See you on the flip side.