 about central bank and government gold reserves. (Read more: GOP Appeased Me on Gold Standard: Rep. Ron Paul)

The gold of the United States government, which officials say is held in the United States Bullion Depository in Fort Knox, has been rumored—probably since the Depository's founding in 1937—to have been looted and replaced with gold-painted tungsten, for instance. The government treats this as nonsense—which it most likely is—but nonetheless it does conduct regularly scheduled audits of the gold in Fort Knox, including doing purity tests on a small sample of the gold.

This paranoia is not entirely irrational, for one reason. As I mentioned above, for almost all imaginable operational purposes, the actual existence of the gold in Fort Knox or in the vault beneath the FRBNY's Liberty Street headquarters is irrelevant. The bookkeeping is what really matters here. So long as the Fed says Bundesbank owns X tons of gold, the Bundesbank can act as if it did own the gold—even if the gold had somehow been swallowed into a gold-eating galactic worm hole. But the irrelevance of the facticity of the gold does quite easily lend itself to thinking: if the gold being there doesn't matter, why would it be there?

(Read more: The Gold Standard and the Myth of Price Stability)

I'm sure the Bundesbank officials understand this quite well, even though the German Audit Court does not. There is nothing to be gained by inspecting the gold. If it is all there and pure, there is no difference from an undiscovered absence. But if the gold isn't there, well, calamity could follow as trust in the central bank gold depositories evaporated instantly.

In any event, it looks like Bundesbank officials will soon be visiting the Fed's vault, which is located 80 feet below street level and 50 feet below sea level. The vault is accessible only by elevators controlled by an operator in a remote location. I've been told by a source that the elevator operator is actually not in New York City at all, although I can't confirm this and the Fed won't discuss this sort of thing.

Down in the vault there are 122 compartments assigned to depositing countries and international organizations. Smaller gold depositing countries get shelves in shared library compartments.

The compartments do not have labels reading "Germany's gold" and so on. They are instead numbered
about central bank and government gold reserve. (understand more: GOP Appeased Me on Gold Standard: Rep. Ron Paul) 

 The gold of the United States government, which official say is held in the United States Bullion Depository in Fort Knox, has been rumor — probably since the Depository's founding in 1937 — to have been looted and replace with gold - painted tungsten, for example. The government treats this as folderal — which it most likely is — but nonetheless it does conduct regularly scheduled audits of the gold in Fort Knox, include doing purity tests on a little sample of the gold. 

 This paranoia is not entirely irrational, for one reason. As I mention above, for almost all imaginable operational purposes, the actual existence of the amber in Fort Knox or in the vault beneath the FRBNY's Liberty Street headquarters is irrelevant. The bookkeeping is what really matters here. So long as the Fed says Bundesbank owns X short ton of gold, the Bundesbank can act as if it did own the gold — even if the gold had somehow been swallowed into a gold - eating galactic worm hole. But the irrelevance of the facticity of the gold does quite well lend itself to think: if the gold being there doesn't count, why would it be there? 

 (understand more: The Gold Standard and the Myth of Price Stability) 

 I'm certain the Bundesbank officials understand this quite well, even though the German Audit Court does not. There is nothing to be gained by inspecting the gold. If it is all there and arrant, there is no difference from an undiscovered absence. But if the gold isn't there, well, calamity could follow as trust in the central savings bank gold depositories evaporated instantly. 

 In any consequence, it looks like Bundesbank official will soon be visit the Fed's vault, which is located 80 feet below street level and 50 feet below ocean level. The vault is accessible only by elevators controlled by an operator in a remote location. I've been told by a source that the elevator hustler is actually not in New York City at all, although I can't confirm this and the Fed won't discuss this sort of thing. 

 Down in the vault there are 122 compartment assigned to lodge countries and external organizations. Smaller amber depositing countries get shelves in shared library compartment. 

 The compartments do not have labels reading " Germany's gold " and so on. They are instead numbered
 ablut central bank and govtrnment gold resetvws. (Reav more: FOP Appexsed Me on Gold Standard: Rep. Rin Payl)

The gold of the Unitdd States governmwnt, xhich officials say is hcjd ih the Nnited States Bollion Deposhtory in Fort Nnux, has been rumored—probably since the Deposiyogy's founding ig 1937—to rave been looted and replaced with gols-paintev tungsten, for onstance. The government trfats this as nonsense—wjich it mosj lihwly is—but novetheless pc does condoct regularly scheduled audits ow the gold in Firr Kjmx, includinj doind purity tesbx on a small xample of the nold.

Tiis paranoia is not entirxly irrational, for oge reason. Aa I mentioned aboce, for dlmovt auo ioagjnebls operwtiknal purpoaes, the actyal existence of tht gjod in Fort Knkx or yn the vault beneath the FRBNY's Liberty Sureet headquarters is irrelecant. The bookkeeping ls what rqally matters here. So long as the Fed says Bundestank kdns X gind of gold, the Bundesbank can act as if it did kwm nhe gold—even if tme gold had somehoe herg swallowed ivto a ykls-eating galactic wlrm holg. But rhe irreltvancr of the facticity of the gild does quine eqsily lend itself co thinking: nf the gold being there doesn't matcer, whg would it he there?

(Rsxd more: The Gold Stsngard and the Myth of Price Stabilitb)

I'm sbre the Cundgsbank jfficials knderstand this quite wepl, evgn thoggh the Gegman Audit Court does not. There is nothing to ba gdined by inspccting the gold. If it is all jhere and pure, there is ho diffxrence from wn undiscoveraf absence. Buv if the dold isn'r there, dell, calamity vould follow as truwt in the central nank ekld depositoriew ecaporated instamtlh.

In ajy edant, it looks likd Bjmdesbxnk officiaor wikl soon be visiting dhe Red's vault, which ix jocated 80 feet bejow street lefel and 50 feet beloa sea letel. Thr vwult is accessible only by elebators cojtrjlled by an jperqtor in a rekote location. I've been told by a source that the elevatot operator is actualli npt in New Yprk Cyty at aln, although I can't cobfirm this and tht Fed won't discuss this sort mf thlng.

Down in the vault there are 122 compartments assigned to depositing counteies aid internatiohal prganpzacious. Smaljer joud depositing colntries get shelves in shared liurary compdrcments.

The compartments do not hxve labels rexding "Germany's gold" and ao on. Thry are instead numbered
about central bank and government gold reserves. GOP Me on Standard: Rep. Ron United government, which officials is held in United States Bullion Depository in Fort has been rumored—probably since the Depository's founding in 1937—to have been looted and with gold-painted tungsten, for instance. The government treats this as nonsense—which it most is—but it conduct scheduled audits of the gold in Fort Knox, including doing purity tests on a small sample the gold. This paranoia is not entirely irrational, one reason. As I above, for almost all imaginable purposes, actual existence the in Knox or in vault beneath the FRBNY's Liberty Street headquarters is irrelevant. The bookkeeping is what really matters here. So as the Bundesbank owns tons gold, Bundesbank can act it did own the gold—even if somehow been swallowed into a gold-eating galactic worm But the of the facticity of the gold quite easily lend itself to thinking: if the being there doesn't matter, why would it be there? (Read more: The Gold Standard and of Price Stability) I'm the Bundesbank officials this well, though German Audit does not. There is nothing to be gained by inspecting the If it is all there and pure, there is no an absence. But if gold isn't there, well, could as trust in the gold evaporated event, looks Bundesbank officials will soon visiting the Fed's vault, which located 80 feet below below sea level. The vault is accessible only elevators controlled by an operator in a location. I've been told by a source that the elevator operator is not in City at all, although I can't confirm this the Fed won't discuss sort of thing. Down in the vault there are compartments to depositing and international organizations. gold depositing countries shelves in shared The compartments not labels and so on. They are instead
 about central bank and governMent gold reServeS. (ReAd mOrE: GOP appeAsed Me on Gold StANdarD: Rep. Ron Paul)

The gold of thE UnitEd sTateS GoVernmEnt, whicH OfFICiaLs SaY is HeLD iN the UNitEd StateS Bullion DePosItOry in Fort KnoX, HaS been rumorEd—pRobably since The deposiToRy's FOundiNg iN 1937—to haVe been LOoted aNd replaceD wITh gold-PAinted tUNGsTen, fOr instance. The goveRNmENt treats this as NonsenSe—WHiCH It mOst Likely is—buT nOnethELess it dOEs CONDucT Regularly scheDuled audits OF thE gold iN FOrt kNox, incLudinG dOIng Purity tests On a sMall samplE of the GOld.

This PAranoia Is not eNtiRelY irrATiOnAl, fOr ONe rEAsOn. AS i meNtioned aBoVe, For alMost ALL IMagiNabLe opEratiOnal purposes, tHe aCtuaL ExiStencE of thE golD iN Fort knox or In the VaUlt beneath the FRbNY's liberty StReeT hEadQuArterS Is irreLevAnt. the bookKeeping IS whAt REALlY matters here. So long As THE FEd says BuNdesbaNK oWnS x tons of gOlD, thE BunDESbank Can aCT aS if it did Own the GOlD—eVen if thE gOld had SoMehOw bEen swALlowEd into A gold-eatIng gaLActic worm hole. BUT the irrelevanCE oF THe FActiCitY of the gold dOes qUIte eAsilY LeNd iTSelf tO thinKiNG: iF The gold being there doEsN't mattEr, why Would it be therE?

(Read more: THE gOld StandArd aND tHE Myth of Price StAbiliTy)

I'm sure thE bundesbaNk offIcials unDerstand tHIS quite weLl, eVen ThoUgh THE GErman Audit CouRT Does NoT. There iS noThing to Be gAinEd bY inSpEcting the Gold. If it Is AlL tHeRe aNd purE, There is nO dIffErEncE from AN undisCoverEd abSeNcE. but If the goLD iSN'T theRe, WeLl, caLamItY coulD folLOw aS trust iN the centrAl bANk goLd DePositorIes evaporated InStantly.

In aNy EveNt, it loOKS like BunDesbank officials will sooN Be visitIng The FeD's vaUlt, which iS loCated 80 fEet BElow stReet leVel anD 50 fEet BELow seA LEvEl. THe Vault is accESSibLe onlY bY eleVators cOntrolled by an operaTOr iN a remote locatIon. i've bEEN tOld BY a SOurCe THat THE elevator operatOr is actualLy NOt In New York CITy aT aLl, althoUgh I can'T confIRm this aNd the Fed wOn't discusS tHis sORT of Thing.

Down iN the vaulT there are 122 COmparTMeNts asSigNed to dEpOsiTing cOuntriES anD inteRnatioNaL organIzatiOnS. Smaller Gold depositing countries Get sheLves iN shAred libraRy cOMpaRtments.

ThE comPartments dO noT haVe labEls REadinG "GerMAnY's gOLd" and So on. tHey are insTEaD nuMBErEd
 about central bank and go vernment g old r ese rve s.  (Re ad m ore: GOP Appea s ed M e on Gold Standard: Re p. Ro nP aul) 
T he go ld of t h eU n ite dSt ate sg ov ernme nt,  whichofficialssay  i s held in th e  U nited Stat esBullion Depo sit ory in  F ort Knox,  ha s bee n rumo r ed—pro bably sin ce the De p ository ' s  f ound ing in 1937—to ha v eb een looted and  repla ce d  w i t h g old -painted t un gsten ,  for in s ta n c e . T h e governmenttreats this asnonsen se —wh i ch itmostli k ely  is—but non ethe less it d oes co n duct re g ularlyschedu led  au dits of  t hego l d i n  F ort Kno x, inclu di ng  doin g pu r i t y  tes tson a  smal l sample of t hegold . 

T his p arano ia i snot e ntirel y irr at ional, for onereas on. As Imen ti one dabove ,  for a lmo stall ima ginable ope ra t i o na l purposes, the ac tu a l  e xistence  of th e  g ol d  in Fort  K nox  ori n  thevaul t  b eneath t he FRB N Y' sLiberty  S treethe adq uar tersi s ir releva nt. Thebookk e eping is whatr eally matters he r e .S o lo ngas the Fedsays Bund esba n kown s  X to ns of  g o ld ,  the Bundesbank can  a ct asif it  did own thegold—eveni f the gold  had so m ehow been swal lowed  into a go l d-eating  gala ctic wor m hole. B u t  the irr ele van ceoft h efacticity oft h e go ld  does q uit e easil y l end  it sel fto thinki ng: if t he  g ol dbei ng th e re doesn 't  ma tt er,  whyw ould i t bether e? 
( Rea d more: Th e Gold  S ta ndar d a nd  theMyth ofPrice S tability) 

I ' m su re  t he Bund esbank offici al s understa nd  th is qui t e  well, e ven though the German A u dit Cou rtdoesnot.  There is  no thingtob e gain ed byinspe ct ing t he go l d .Ifit  is all th e r e a nd pu re , th ere isno difference from anundiscoveredabs ence . Bu t i f  t h e g ol d  is n ' t there, well,calamity c ou l dfollow ast rus tin thecentral  bank gold de positorie s evapora te d in s t ant ly.

In an y event,  it looks likeB un desba nkoffici al s w ill s oon be vis iting  the F ed 's vau lt, w hi ch is lo cated 80 feet below str eet le vel a nd50 feet b elo w  se a level.Thevault is a cce ssi ble o nly by el evat o rs  co n troll ed b y  an opera t or  in a  r emote locat i o n . I 've b een told b y asource that the e l evator operato r is a ctu all y  not  i n New York Cit y a ta l l, altho ug h I can't c onfirm t hi s  andthe Fe d won' t discu s s  t h is sor t of  th ing.

Dow n i nt he vaul tth e re are  122  c ompart mentsa ssig n e d to depositingcount r i es an d  in terna ti onal or g aniz ations. Sm aller golddeposi ting  coun tries g et  shelv esin  shared li b rary comp artme nts.

T he  com par tments  don o t hav e la be lsreading " G e rm a ny 's gol d" a nd so  o n. T hey are i n stead nu mbe r ed
 about_central bank_and government gold reserves._(Read more:_GOP_Appeased Me_on_Gold Standard: Rep._Ron Paul)

The gold_of the United States_government, which officials_say_is held in the United States Bullion Depository in Fort Knox, has been rumored—probably_since_the Depository's_founding_in_1937—to have been looted and_replaced with gold-painted tungsten, for_instance. The_government treats this as nonsense—which it most likely_is—but_nonetheless it does_conduct regularly scheduled audits of the gold in Fort_Knox, including doing purity tests on_a small sample_of_the_gold.

This paranoia is not_entirely irrational, for one reason. As_I mentioned above, for almost all_imaginable operational purposes, the actual existence of_the gold in Fort Knox or_in the vault beneath the_FRBNY's Liberty_Street headquarters is irrelevant. The_bookkeeping is what_really matters_here. So long_as the Fed says Bundesbank owns_X tons of_gold, the Bundesbank can act as_if_it did own_the_gold—even_if the_gold had somehow_been_swallowed into_a_gold-eating galactic worm hole. But the_irrelevance_of the facticity of the gold does_quite easily lend itself_to_thinking: if the gold_being there doesn't matter, why_would it be there?

(Read more: The_Gold Standard_and the_Myth of Price Stability)

I'm sure the Bundesbank officials understand this quite_well, even though the German Audit_Court does not. There_is nothing_to_be gained by_inspecting_the gold._If it is all there and pure,_there is_no difference from an undiscovered absence._But if the gold_isn't_there, well, calamity could follow as_trust in the central bank gold_depositories evaporated instantly.

In any event,_it_looks_like Bundesbank officials will soon_be visiting the Fed's vault, which_is located 80_feet below street level and 50 feet_below_sea level. The vault is accessible_only_by elevators controlled by an operator_in_a_remote location. I've been told_by a source that the elevator_operator is actually not in New York City at_all, although I_can't confirm this and the_Fed_won't_discuss this sort of thing.

Down in the vault there are_122 compartments_assigned to depositing_countries and international organizations. Smaller gold depositing countries get shelves_in shared library compartments.

The compartments do not_have labels reading "Germany's gold" and so on. They are instead_numbered