What this means to you is that if countries switch away from the US dollar as the world's reserve currency - which is happening right now as China's currency is taking its place - the US would need gold to pay the debts America owes to other countries.
The severity of this situation came to light when Germany made a formal request to the FED to return its gold to Germany. The amount reclaimed should take a couple of weeks to get shipped.
But instead, the FED told Germany it would take 7 years for the gold to be returned. What's wrong with this picture?
It means the gold doesn't exist in the FED, and the FED is putting off, or as they now say, "kicking the can down the road," until it has to admit it doesn't have the gold any more. It's been leased out to dealers who can't return it, to buyers who won't return it.
In other words, the FED's gold is gone, Germany's gold is sold, and it isn't coming back.
Check out this interview for the details:
Used by permission