Results 1 to 12 of 12
  1. #1
    Thailand Expat
    OhOh's Avatar
    Join Date
    Jul 2010
    Last Online
    Today @ 10:06 AM
    Location
    Where troubles melt like lemon drops
    Posts
    17,654

    US Gold Reserves Shrink?

    FORT KNOX GOLD: Fed figures show US debt over 40 times bigger than gold reserves, critics want proper audit. | The Slog



    But whoever’s telling the truth, America’s gold reserves won’t solve its debt problems.


    "The Congressional hearing into America’s gold reserves has been very revealing this week; but perhaps the most revealing statistic is the audited value of what’s in there.

    Either somebody got their decimal point in the wrong place, or the contents of Fort Knox are worth considerably less than I thought. There are 261.5 million ounces of gold held in reserve in the US. As of yesterday, those reserves were said to be worth roughly $320 billion. At $1501 an ounce that makes sense; I just thought the weight was much greater than that. (Am I alone in this view?)

    That amount of gold wouldn’t even dent (let alone scratch) the surface of America’s deficit (let alone debt). The US deficit is 4.5 times the gold reserves; at $15.476 trillion, the US National Debt is 42 times bigger. If interest rates rose to 3%, the US Government would be paying an extra Fort Knox in interest alone.

    As I say, I’m surprised the amount isn’t much more. But wannabe Presidential candidate Ron Paul thinks it might be a whole lot less than we’re being told.

    You probably haven’t heard of Ron Paul. He’s the Republican Rep for Texas, and something of a lone star himself. You’ll have to make your own mind up about whether Republican libertarians are to your taste, but I don’t care what Congressman Paul’s labels are: he’s been something of a hero of mine since the last financial unpleasantness in 2008.

    In a nutshell, Ron Paul believes that the bankers are crooked, the Government lies about all things fiscal, the real People of America have been dumped on for decades, and the Federal Administration should be about 10% the size it is. More specifically, he has been proved right about everything from deficit economics and Iraq to QE policies and bank bailouts.

    But the bloke’s main hobby horse is that he thinks the Dollar should go back on the gold standard; and like The Slog, he believes the gold market is manipulated….and the US has far less of it in Fort Knox than it pretends. He was a key driver behind the Gold Reserves Transparency Act of 2011, since the passage of which a House subcommittee is now holding a hearing on whether it was enough. Basically, the hearing morphed into a debate about whether sufficient information is available to the American public about the amount of gold the U.S. holds.

    Fort Knox gold audits have been secret for 25 years, and no full audit at all has been conducted since the early 1960s. The last President even allowed into the place was Harry Truman 61 years ago. Ron Paul wants to pass a Bill demanding a full public audit pretty much every year, and during the hearing two days ago, he grilled federal officials at length about their problems with the idea.

    During the hearing, Paul suggested that the New York Fed has 5% of the U.S. gold reserves, with the ability to sell or swap gold with other countries secretly. (On that day, as the economic world took a plunge into the depths of despair, the gold price slipped $31. The polite way to describe this is ‘counter-intuitive’). The U.S. Mint insists that moving, counting and testing the gold would cost around $60 million. But I understand Paul has been told by the Fed Treasury that it would only cost $15 million. (The US Mint made $400 billion last year. That’s more than the Gold reserves!)

    In defence of gold auditing policy, Treasury Department Inspector General Eric Thorson maintained that independent annual audits of the U.S. Government’s deep storage gold reserves have been conducted annually since 1993. But his choice of words was weaselly-careful to hide one crucial fact: the auditing firm – KPMG – only audits the Treasury’s audit. In short, KPMG checks the Fed’s sums: it has no more idea than you or I whether the numbers are true or not.

    Since 2006, The Slog (in its former incarnation as notbornyesterday.org) has been arguing consistently that the gold price doesn’t behave like a free and open market commodity should. It rises and falls at the wrong times, it falls very quickly, the falls are closely correlated to the NYSE openings (10.00 am), and the movements of gold internationally do not correspond to the declarations made by the countries involved.

    Until early 2010, China insisted it had only $300 billion in gold. Suddenly, it announced gold reserves of $1.3 trillion. Its claims to have mined this within China are risible – although with South African technical help, it is now mining more and more of the stuff.

    The market in paper-tracker gold is a similar case in point. From 2009 until two months ago, I had a gold tracker account with RBS. Each time the ‘market’ price fell, I’d ring bullion dealers. On every occasion, they couldn’t sell me anywhere near as much bullion as I wanted, arguing (quite truthfully I think) “demand vastly exceeds supply”. Since when did a massively under-supplied market show regular falls of $35-50 for no reason….other than the US Fed wanted to (a) defend the Dollar (b) stop a run out of stocks and into gold, or (c) stop a run out of US Bonds and into gold?

    In conclusion, let me put it this way: if everything inside Fort Knox is above board and hunky-dory, why are the Fed and its associated auditors so shifty about letting some real auditors in to take a look? Frankly, they have plenty of excuses and rationales – but no reasons."
    A tray full of GOLD is not worth a moment in time.

  2. #2
    Neo
    Neo is offline
    Dislocated Member
    Neo's Avatar
    Join Date
    May 2011
    Last Online
    05-08-2019 @ 02:34 AM
    Location
    Nebuchadnezzar
    Posts
    10,577
    No matter what.. people will still use the dollar.



    Bernanke said so...


  3. #3
    Tax Consultant
    Thormaturge's Avatar
    Join Date
    Jul 2007
    Last Online
    @
    Location
    Bangkok
    Posts
    9,892
    Obama is having the gold made into bling.




  4. #4
    Thailand Expat misskit's Avatar
    Join Date
    Dec 2009
    Last Online
    @
    Location
    Chiang Mai
    Posts
    29,336
    I thought most of the gold was sold many years ago.

  5. #5
    I am in Jail
    Butterfly's Avatar
    Join Date
    Mar 2006
    Last Online
    01-02-2019 @ 03:12 PM
    Posts
    39,832
    Gold is irrelevant in a currency,

    come on people, this is not 1940

  6. #6
    Banned
    Join Date
    Jun 2010
    Last Online
    14-11-2015 @ 09:53 AM
    Location
    Canada
    Posts
    10,516
    Quote Originally Posted by Neo View Post
    No matter what.. people will still use the dollar.



    Bernanke said so...

    Yeah, peasants will still use the dollar just like Jamaicans us the Ja and Mexicans use the Peso.

    Will billionaires continue to save in the dollar ? No. Big difference

  7. #7
    Banned
    Join Date
    Jun 2010
    Last Online
    14-11-2015 @ 09:53 AM
    Location
    Canada
    Posts
    10,516
    Quote Originally Posted by Butterfly View Post
    Gold is irrelevant in a currency,

    come on people, this is not 1940
    Gold is irrelevant in a peasant medium of exchange so that is party true. The dollar will go the way of most paper peasant currencies and gold will continue its roll as a wealth reserve asset.

  8. #8
    Tax Consultant
    Thormaturge's Avatar
    Join Date
    Jul 2007
    Last Online
    @
    Location
    Bangkok
    Posts
    9,892
    The Dollar is heading the same way as the Euro and Sterling. None of these currencies has any integrity now since the respective governments see fit to print more notes in preference to managing a real economic policy.

  9. #9
    Banned

    Join Date
    Oct 2008
    Last Online
    03-06-2014 @ 09:01 PM
    Posts
    27,545
    Quote Originally Posted by Butterfly View Post
    Gold is irrelevant in a currency,

    come on people, this is not 1940
    Some might consider it irrelevant in general, as currency will be. A value and worth that is largely make-believe and historically manipulated by them.

  10. #10
    Tax Consultant
    Thormaturge's Avatar
    Join Date
    Jul 2007
    Last Online
    @
    Location
    Bangkok
    Posts
    9,892
    With Hilary Clinton wanting to step down as Secretary of State so she can become Head of the world Bank we could soon have the World Bank influenced by Bill (Clinton) and the Federal Reserve run by Ben (Bernanke)

    Bill and Ben the monetary men.

  11. #11
    Have you got any cheese Thetyim's Avatar
    Join Date
    Jan 2006
    Last Online
    @
    Location
    Mousehole
    Posts
    20,902
    Quote Originally Posted by Thormaturge
    Bill and Ben the monetary men.
    No problem so long as we get a little weed

  12. #12
    I am in Jail
    Butterfly's Avatar
    Join Date
    Mar 2006
    Last Online
    01-02-2019 @ 03:12 PM
    Posts
    39,832
    sounds like a good plan,

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •