Enron-like debacle for Gold Bullion Banks?

"One of the biggest financial scandal stories, on the level of Enron, is about to break.

"Central banks are said to have lent their gold for about 1% per annum - the cheapest borrowed money on earth. They have not reported these loans as sales meaning their official gold reserves remain constant. But the leased gold is gone.

"It has been borrowed by large trading companies called bullion banks. They borrowed at 1%, sold the gold, took the money they earned by selling the gold and invested it at 5% or more.

"It was sweet multi-billion dollar deal. But now they are in a squeeze.

"They owe billions of dollars of gold bullion to Central banks but to get it back, they must buy gold bullion in the open market, which is now a rising market.

"They are losing money, big time.

"What has saved them so far is that the Central banks are not demanding repayment. Meanwhile the public doesn't know that the leased gold is gone..."

http://www.scoop.co.nz/mason/stories/HL0205/S00174.htm