The Federal Reserve owns no gold Today
HalfDime
Posts: 162 ✭✭✭
This is another reason why the dollar will eventually be doomed. The Federal Reserve owns no gold and can't explain why it can or can't.
"Can the Fed today legally buy and hold gold? We think so, but thus far we have been unable to confirm our opinion in our discussions with former senior Fed officials and financial market experts—no one seems to know. Nor is this question answered in any of the official Federal Reserve materials of which we are aware and our query to the Fed’s official website remains unanswered. The answer to this question should not be a mystery. The Board of Governors of the Federal Reserve should speak authoritatively on the question and explain why the Fed can or cannot buy and sell gold in the course of conducting monetary policy."
Comments
They might not hold any physical gold, but they may have title to some via Gold Certificates.
From 1914 to 1933, the Federal Reserve issued gold-clause Federal Reserve notes in a total amount equivalent to 56,000 metric tons of gold. These notes were printed with "Redeemable in gold on demand" on them. But the Federal Reserve did not have any gold to back them, and the US Treasury at the time only had about 6,000 metric tons.
When Roosevelt bailed out the Federal Reserve Bank in 1933 by canceling all gold obligations, title to some or all of our gold (held by the US Treasury) may have been passed to the Federal Reserve via gold certificates.
I was under the impression that the Federal Reserve could own gold as gold is considered good collateral. However, even if the Fed is prohibited by the Federal Reserve Act from owning gold, it doesn't matter since the Fed breaks the law at will as it did buying all the junk from the 2008 financial crisis (Maiden Lane I and II) and the purchasing of mortgage backed securities since 2013.
Not to worry. They own the U.S Treasury since 1913.
https://en.wikipedia.org/wiki/United_States_Bullion_Depository#Current_holdings
https://en.wikipedia.org/wiki/Federal_Reserve_Bank_of_New_York_Building#Gold_vault
Successful BST transactions (as a buyer) with @ArchStanton, @JGnumismatics, @r00kies101, @derryb, @76collector, @Pachucko, @brendanlam, @Coll3ctor. I am looking for fractional gold Krugerrands, by year: 0.5oz: 2014, 2020, 2023 | 0.25oz: 1992, 1994, 2002, 2020, 2023 | 0.10oz: 1990, 1992, 1994, 2010, 2020-2021
Wait a minute, let's not let facts get in the way. Much more fun to pretend and make things up. LOL THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
the treasury owns the gold and the us mint is the custodian, but it may not be in their immediate possession
the gold holdings are listed in the us mint annual report
the treasury has issued paper "pledges" to the fed res that establishes the gold is collateral for frn at the statutory price of gold per ounce
the fed res owns none of the treasury's gold
Unfortunately the gold certificates are paper only and don't allow conversion to any gold according to online sources.
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For the general public, that is true. However, it could be different for a large privileged institution such as the Federal Reserve.
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The FED's New York vault is 80 feet below street level and 50 feet below sea level and is the world's largest depository of gold. None of the gold stored in the vault belongs to the New York FED or the Federal Reserve System. The New York FED acts as the guardian and custodian of the gold on behalf of account holders, which include the U.S. government, foreign governments, other central banks, and official international organizations. No individuals or private sector entities are permitted to store gold in the vault.
Considering current US policy to confiscate money (economic sanctions) it holds (Treasury notes) from those it considers it's enemy, I am amazed that foreign governments have not repatriated any of their gold stored in the US. In 1971 President Nixon closed the gold window (ability to convert dollars to gold). Because it became clear that the United States might not have enough gold to meet its international commitment to redeem dollars, France sent a battleship to take home French gold from the New York FED’s vaults.
Inside the FED's gold vault
Exit bunker, enter Matrix. LOL
the massive majority of what is "pledged" as collateral for frn are the worthless treasuries
frn cannot be redeemed for treasuries
Apparently the owners of the gold in the Feral Reserve bank is mostly kept a secret, but I found a couple of the countries that have gold inside.
"Several countries have gold holdings stored in the Federal Reserve Bank of New York. These include:
Germany: A portion of Germany's 3,351.53 tonnes of gold reserves is held in the U.S. Federal Reserve Bank branch in New York .
Netherlands: The Dutch National Bank (DNB) stores 31% of its 612.45 tonnes of gold reserves in New York's Federal Reserve bank .
"Much of the gold in the vault arrived during and after World War II as many countries wanted to store their gold reserves in a safe location. Holdings in the gold vault continued to increase and peaked in 1973, shortly after the United States suspended convertibility of dollars into gold for foreign governments. At its peak, the vault contained over 12,000 tons of monetary gold. Since that time, gold deposit and withdrawal activity has slowed and the vault has experienced a gradual but steady decline in overall holdings. However, the vault today remains the world’s largest known depository of monetary gold."
i think they need a new subway tunnel under that building
The Fed didn't break any laws. It was acting as the lender of last resort which is WHY it was created.
Gold and all profits from Open Market Operations (~$50 billion/year) are swept to the Treasury.
The Fed was never "bailed out."
The FED was not created to be a lender of last resort. Lender of last resort for congress was a condition that convinced a shotgun congress to pass legislation to approve the FED. The FED was created to unit banks/bankers into a single cartel where it could seize control of the national economy and better dictate interest rates paid by and charged by it's member banks. Consider this legal price fixing, something no other entity is allowed to do. Price fixing involves illegal collusion by more than one party (the member banks).
Exit bunker, enter Matrix. LOL
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What do you call being relieved of obligations totaling 56,000 metric tons of gold, when they actually held very little ?
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Why isn't the Fed being audited? Everyone else is.
I knew it would happen.
slush funds (congress's) don't get audited by outsiders.
Exit bunker, enter Matrix. LOL
Not Congress.
Knowledge is the enemy of fear
Sure they are. Look up the federal budget. The White House Office of Management and Budget prepares it, Congress approves it. Every penny spent by congress is documented and made public. What is not audited is all the money they individually receive from outside sources to attach pork to the bills they propose and approve.
oops, another politics trap
Exit bunker, enter Matrix. LOL
Thank the Founding Fathers for creating a Balance of Power in gov.com
The Fed isn't part of the Constitution. End the Fed.
I knew it would happen.
Treasuries are the gold standard for owning during times of trouble.
Neither is the Department of Motor Vehicles.
Their balance sheet is printed every 2 weeks. If you knew that, you'd know an audit is a waste of time.
The DMV is a government agency, the FED is not.
Exit bunker, enter Matrix. LOL
The price of gold says they are not.
Exit bunker, enter Matrix. LOL
The department of labor releases employment figures. Do you trust those?
once again - liars figure and figures lie
Exit bunker, enter Matrix. LOL
Their balance sheet is printed every 2 weeks. If you knew that, you'd know an audit is a waste of time.
Well, they've wasted about 60+ years since the last audit, so it's not all that difficult to see that an audit is simply good practice. If you knew that, you would understand that accounting principles exist to verify reality.
I knew it would happen.
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I would say 96% of the folk around me that want a job have one. How about you?
Knowledge is the enemy of fear
I get offered a job in almost every hospital I walk in (hundreds). Massive shortage of workers in healthcare for sure. Can't really speak for other industries but I see hiring signs pasted all over The Commonwealth. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
It's not going anywhere so why you waste your time with this nonsense about "ending the Fed" is beyond me.
This isn't Crazy Eddie where we have to verify they own the TVs and VCRs they say they do. This is the Fed....the items on their balance sheet are easily verified, they are all in book form, digitally registered.
You folks would really benefit from a course on modern banking and/or Fed policies.
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What about the things that are not on their "balance sheet" ?
The purpose of an audit is to look for things that the entity has NOT reported.
If the Federal Reserve has nothing to hide, then they should have no problem being subjected to an audit, right ?
It would be good public relations for them to have a full independent audit.
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did the federal reserve recommend refinancing the national debt?
The Federal Reserve did not recommend refinancing the national debt. The search results do not contain any information about the Federal Reserve making such a recommendation.
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Everybody knew to refinance debt at low interest rates except for our government.
You folks would really benefit from a course on modern banking and/or Fed policies.
"How to run the Greatest Country on Earth into the Ground for Fun & Profit with Debt created out of Thin Air"
I knew it would happen.
Huh? We got run where? Look around, we be absolutely BOOMIN!
Shame that in a few days you will really begin to experience what you were brainwashed to believe as reality. Enjoy, I hope you prepared but you certainly appear to be just another of the sheep. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
In case you hadn't noticed, the debt load is increasing at a faster clip daily. I'm not the only one who says it's unsustainable. Do you know what unsustainable means?
I knew it would happen.