The Entire U.S. Gold Hoard Is Now Gone - Paul Craig Roberts on KWN

Eric King:  “Dr. Roberts, I know you’ve seen the report on Bloomberg about Germany (all the sudden) supposedly being happy with storing their gold at the New York Fed.  It seemed to be a propaganda piece.  What was your take when you saw that?” 
Dr. Roberts:  “Clearly what that means is that the United States doesn’t have the gold and cannot deliver it and has forced Germany to come to terms with that and to stop asking for it since it can’t be delivered....
“And so they (the U.S.) have told their puppet state (Germany) to shut up and come up with a different statement that they are content to leave it (their gold) with the Fed.  Perhaps they had to bribe them or give them other advantage.  But, essentially, they have stopped any German agitation for the return of their gold because it can’t be returned.” 
Eric King:  “What are the implications of that for other countries that have gold stored at the Fed?  Because it’s outrageous they are not returning Germany’s gold.”

Dr. Roberts:  “The implications are nobody will get it back.  People in the gold market have (long) suspected that the Fed used up all of the U.S. gold trying to suppress the price of gold over the years.  And then after they ran out of U.S. gold, they started using all the gold left with the Federal Reserve on trust.

So they (the Fed) used the German gold.  I suspect that is true because what we have seen in recent years, especially since gold peaked at (roughly) $1,900 an ounce in 2011, we have seen more and more reliance on dumping huge amounts of naked gold shorts on Comex during hours in which there is no trading, in order to knock the gold price down and suppress it.

So they protect the dollar from quantitative easing by shorting the paper gold market, the futures market.  If they still had stocks of gold that they could lease to bullion dealers to sell on the market, they would still be using that technique.

So I assume that the gold stocks ran out some time in 2011 because since that time they are mainly controlling the gold price with naked shorts during market periods when trading is light or non-existent.  So I think it’s a safe conclusion that the supply of gold bullion available to U.S. authorities is almost non-existent.”

Eric King:  “We had an interview with Chris Powell and he was talking about the fact that there is so much paper gold in the market.  He said there is all this paper gold held by Germany, held by other countries, held by the bullion banks.  (Powell added):

“At some point countries are going to ask for delivery and the squeeze is going to be infinitely worse than it was in 1968 and 1971 because of all this imaginary paper gold which is out there that can’t possibly be delivered.  The central

banks will realize that there are going to be bullion bank catastrophes -- that the squeeze is going to take down

certain banks that are naked short and that the Western central banks no longer have the metal to back up

the bullion banks, as they usually do.  At that point all hell will break loose in the gold market and we

will see what William Kaye has described as the greatest short squeeze the world has ever seen.”

Eric King:  “Is Chris Powell correct?”

Dr. Roberts:  “Yes.  I think the worst part of the catastrophe will be the flight from paper currencies.  And they won’t be able to get into gold because the Chinese will have it all.  (Laughter ensues).  So it could be even worse than Chris said.”

Source