Monday, June 20, 2011

Is there any goal inside Fort Knox

Last week I posted some information about returning to the gold standard. After doing further research, it came to my attention there were questions about the goal reserve. Is there any goal inside Fort Knox? That what several prominent investors and at least one US congressman has asked. The concern is how much goal remains stored there and who owns it. There has been no independent audit to the reported 137 billion in the gold bars stockpiled in Fort Knox since the 1950s and the Eisenhower administration. 
On June, 1933, FDR took the US off the gold standard. The United States had been on the gold standard sense 1879. In April, 1933, Roosevelt ordered all gold coins and gold certificates to be turned in to the Federal Reserve, for this set price of $20.67 per ounce. In 1934, the government price of gold was increased to $35 per ounce. That price was held until 1971, when Pres. Nixon announced that the United States would no longer convert dollars to gold, thus completely abandoning the gold standard. In 1974, Pres. Ford signed legislation that permitted Americans again to own gold bullion.
Texas Congressman Ron Paul has introduced a bill to conduct an independent audit of the Federal Reserve system, including the goal reserve at Fort Knox. So far, he has attracted 21 cosponsors for this bill. The Federal Reserve has resisted this audit for quite some time and it makes you wonder why, an what they're covering up. Pres. Obama has promised to bring an unprecedented level of openness to the government,  so far there has been no action taken by this administration on this subject. A spokesman for the U.S. Treasury said that US gold holdings are audited every year by the Department of Treasury Office of the Inspector General. He confirmed that although independent auditors oversee the process they are not given access to Fort Knox. The US Mint website says that the 147.3 million troy ounces of gold in Fort Knox is held as an asset of the United States. It does not elaborate. How can you do a true audit, if you're not allowed to physically access the gold. Let us continue to push for the audit of the Federal Reserve and of the US goal reserve.

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