So What Happens to the Gold and Critical Records Stored on Wall Street During Hurricane Irene?

By Catherine Austin Fitts

I am a suspicious person.

When the dollar started to soar and gold tank on Tuesday shortly before an earthquake hit the East Coast delivering cracks into the Washington Monument and the National Cathedral and disrupting Congress, it seemed a remarkable coincidence. Minor earthquakes followed on the West coast that evening and the following day.

US Dollar Index Monday-Thursday:

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Gold Spot Price – August to Date:

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Now, I am watching a very uncomfortable Mayor of New York standing next to an even more uncomfortable Police Chief announce the shut down of the NY City subway system and the mandatory evacuation of an area that is either near or includes the NY Federal Reserve Bank (the depository of the US government and the manager of the Exchange Stabilization Fund), the Comex, the NY Fed member banks and more critical data about the global financial system than just about any location on earth.

The NY Fed (in Zone C just outside the evacuation area) is the storage site for significant holdings of gold, including for central banks around the world. Here is the NY Fed’s description of its gold depository. Here is a recent popular description from Raw StorySoaring Demand Spotlights Secret NY Gold Hoard 

The NY City subway system is an extensive network of underground tunnels and facilities in lower Manhattan. I have spent a lot of time touring those tunnels as the lead banker recapitalizing the NY transportation systems in the 1980’s. The gold stores are also underground. Who can forget Bruce Willis, Jeremy Irons and Samuel Jackson in Die Hard with a Vengence when the bad guys cut through the subway system to steal the Fed’s gold?

Given the instability in our government and financial system, including allegations of collateral fraud in the US Treasury and mortgage market and all sorts of shenanigans in the US government and Fed accounts, the shut down of the NY subway system combined with a forced evacuation strikes me as a particularly fluid situation.

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The Most Screwed NYC Neighborhoods If Hurricane Irene Strikes Tomorrow
Business Insider (26 Aug 11)

I would note that emergencies declared in response to natural disasters are the basis of significant intervention financially in the mortgage and financial markets. These days, whenever I see an emergency declared I wonder what checks the FHA Fund is writing, what mortgages are being bought back and what documents are being shredded. Are we watching a covert QE3 brewing?

From: State-by-state Look at Dangers, Prep for Irene (25 Aug 11)

Whatever is happening, evacuations of Congress and the New York financial district and parabolic market movements are serious events. The memory of the mysterious demolition of Building 7 during 911 — and with it the destruction of significant investigation records at governmental agencies — comes to mind.

The people of New York and along the Eastern Seaboard are in my prayers tonight.

Related Reading:

Bloomberg: Mandatory Evacuation for Some Areas
Dailymotion (26 Aug 11)

Obama Says Hurricane Irene “Extremely Dangerous”
Reuters (26 Aug 11)

Solari Report Blog Commentaries

Tornadoes and Storms Rip Through South, At Least 284 Dead
(29 April 2011)