Bernanke-Dimon-Fed-TunnelAhead of today’s FOMC statement (and in light of Eric Sprott’s 2nd installment of Do Western Central Bankers Have Any Gold Left?), we thought it a good time to recall a conversation between Alan Greenspan and others made at a December 1992 FOMC meeting in which key secrets were revealed regarding manipulation of the gold market by Western Central bankers.

As The Doc discussed with Eric Sprott in our recent interview, the US exported $4 billion in gold in December.   Eric pointed out that $4 billion is 2.5 million ounces of gold exported in a single month, when the US produces 8.8 million ounces annually.  Eric asked rhetorically where 2.5 million ounces of gold were coming from.
Courtesy Former Chairman Alan Greenspan and the minutes from a Dec 1992 FOMC meeting, we just may have the answer for Mr. Sprott…

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CHAIRMAN GREENSPAN. Did I hear you correctly when you said that the gold exports in October appear to have come from the coffers of the Federal Reserve Bank of New York? Has anyone looked lately?
MR. TRUMAN. Well, I didn’t want to tell too many secrets in this temple!
VICE CHAIRMAN CORRIGAN. Obviously, we knew what happened to the gold, but I don’t think we knew what it did to exports.
MR. TRUMAN. What happens in the Census data is that the Federal Reserve Bank of New York is treated as a foreign country. [Laughter] And when a real foreign country takes some of the gold out of New York and ships it abroad, it counts first as imports and then as exports. However, the import side is not picked up in the Census data. So there you get the export side of it.
MR. LAWARE. Great accounting!
MR. BOEHNE. Great confidence building!
MR. TRUMAN. That’s because you haven’t been filling out your import documents!
MR. ANGELL. Let me run this by again. You mean a country owns gold and has it stored in the Federal Reserve Bank of New York and if they ship it out, that’s an export?
MR. TRUMAN. And in the balance of payments accounts it also counts as an import, so it washes out.
CHAIRMAN GREENSPAN. The Federal Reserve Bank’s basement is a foreign country. When they move it out of the basement into the United States, it’s an import. Then, when they ship it out again, it’s an export.
MR. ANGELL. That makes sense!
MR. TRUMAN. And sometimes when they sell the gold, it might be sold into the United States, so it should count as an import. It doesn’t necessarily always show up as an export.
MR. BOEHNE. That really clarifies it!
MR. KELLEY. Does it have to get out of your vault at all in order to be considered an import and an export?
VICE CHAIRMAN CORRIGAN. Well, I’m not even going to try to answer that. In this particular case I know what happened, so I think the description you have is correct.
Is there any question remaining as to the source of $4 billion in US gold exports in December?

Full Dec 1992 FOMC meeting minutes can be found in the Fed archives:


  1. Ole Eric didn’t have solid stats on the total private ownership of Gold now did he? Was it Jim Sinclair that told us that we may see some thousand dollar days on Gold over on KWN? You might want to wait awhile Dirt.

  2. I really don’t place much stock in what happened in 1992 as the Fiat flood since then has changed the game quite handsomely. As Sprott has stated “The Fed has no exit strategy”. Until the DXY craters, we just sit back and wait.

  3. When I first read this article I thought it was a joke piece that Doc had put together.  But, these people are serious.  If you move the gold from one locker to another that’s an “export”???  If you take the gold out the secret tunnel through JPM’s basement that’s an “import”??? And when you load it on a plane that’s an “export”??? But, we might “forget” to count the “import” in the census data so the numbers look better. Got it.

    • Actually not.  For many years, gold has been too valuable to risk its loss in shipping, so central banks keep the gold in their vaults and just change the ownership status on paper when it is “bought” and “sold”.  The gold itself doesn’t move at all.  Until you have someone come along and demand that their gold be repatriated.  Then the feces hit the oscillator for sure… especially when those who are supposed to have it… don’t.

    • Oh, they still apply, alright, they are just being ignored for the moment because they are inconvenient.  Like a beach ball held submerged, however, they WILL eventually emerge into the light and air once again.

  4. I can’t believe how flippant they are about the Fed basement being a “foreign country”.  Those British thugs are sooooo conniving!!!!  We think we are a country unto ourselves, exactly like the people in the Matrix.  They probably laughed about the “foreign country” bit because they know that really….we are still British subjects.  WANKERS!!

  5. That’s one more reason why you should not trust the banking system and you should keep all of your belongings in your own possession. Like we all always say, “if you don’t hold it, you don’t own it”!

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