The issue of German gold has given rise to one basic question and that is whether the Federal Reserve really has any gold left with them?Federal Reserve has claimed that it possess about 8133 tons of gold reserve which is a huge quantity. According to them this gold is stored at the places like Federal Reserve at New York, and Denver, and at US Army base of Fort Knox. However, no audit of these gold stockshas ever been carried out at any of these locations after 1953. This again raises doubts on integrity of the Federal Reserve.German may have taken the humiliating treatment meted out to its representatives who had been to Federal Reserve to its heart. But surprisingly, even the America lawmakers have not been allowed visit to these locations since 1970. This matter has been frequently raised by some selected media and analysts. But what Federal Reserve has time and again offered against this are just hollows appeals to the American public to trust it. Senior American lawmaker Ron Paul had tried gold audit in year 2011 in the senate. But till now no action has been initiated over the same.
This all incidents have led towards doubts being casted about the very existence of its own gold which the United States has been claiming to possess leave aside the gold reserves of other foreign countries. In the near future, there are possibilities that America would close this issue by signing some secretive agreement with Germany or by paying money equivalent to its gold. Such a scenario would only lead Germany to keep silent and keep saying, “Our gold is lost but no one saw it”
Even though the United States is neither allowing Germany to inspect its gold nor audit it themselves, they are stressing that the world to believe them and their statements and that too baselessly. As a matter of fact, the United States has delinked the relationship between the US Dollar and gold in the year 1971. Hence it is difficult to comprehend as to why the United States is so persistent about her claims of having the gold in their possession.
But a gold reserve is the thing gives confidence to international community and investors about the economy of the country. Various American economists have given various reasons for the holding of such a large gold reserve by the United States. Alan Greenspan the former Chairman of Federal Reserve has explained of this gold as a security that can be utilized in crisis situation. However according Ben Bernankewho succeeded Greenspan as to Fed’s chairmanship has claimed these gold stocks as a long-time tradition. Mark Zandi, the Chief Economist at Moody’s Analytics claimed this gold reserve to be an assurance for the investors.
In the year 1991, when India faced economic crisis the gold stock in India was mortgaged to restore the economy. With this the country could raise the funds even when the investors had lost their trust in the Indian economy. The American representatives and lawmakers have increasingly started to assert that how much so ever the economy advance the base of the economy necessarily has to be based on gold. They have further started to criticize that wealth cannot be created in printing press.
Hence the question about the German of gold in the Federal Reserve is cannot just be limited only to the United States or Germany. This is leading to rising questions about the American and the global economy. In fact it is worth thinking as to why Germany is willing to take back its gold from the Federal Reserve at this very moment.
While the United States has being increasingly experiencing the massive burden of debt, an atmosphere of doubt and uncertainty has developed not only in Germany but throughout the world. There are clear signs that this problem is castings its adverse effects on the global economy. Hence let us wish that Germany gets back the custody of its own gold!
||Hari Om|| ||Shri Ram|| ||Ambadnya||