The Fed Claims To Own Gold in Fort Knox,But there's essentially nothing in the vaults, says Bill Gro
mrearlygold
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The Fed Claims To Own Gold in Fort Knox
But there's essentially nothing in the vaults, says Bill Gross.
Bill Gross, founder of Pimco, the world’s largest bond fund with over $1.92 trillion under management, penned a new piece entitled, “Money for Nothin’ Writing Checks for Free.” In his editorial, he called attention to the near $10 trillion explosion in global central bank money issuance since 2006, and the impending doom historically associated with a “money for nothing” monetary policy.
His conclusion: The whole charade will soon hit a brick wall.
Of particular interest were his comments on gold, commodities, and the “Fort Knox Fairy Tale“…ie. Fed gold certificate claims on Fort Knox bullion holdings which may or may not actually exist.
Says Gross, “Supposedly they [the US Fed] own a few billion dollars of “gold certificates” that represent a fairy-tale claim on Ft. Knox’s secret stash, but there’s essentially nothing there but trust…$54 trillion of credit in the U.S. financial system based upon trusting a central bank with nothing in the vault to back it up.
Nada in Ft Knox continued
But there's essentially nothing in the vaults, says Bill Gross.
Bill Gross, founder of Pimco, the world’s largest bond fund with over $1.92 trillion under management, penned a new piece entitled, “Money for Nothin’ Writing Checks for Free.” In his editorial, he called attention to the near $10 trillion explosion in global central bank money issuance since 2006, and the impending doom historically associated with a “money for nothing” monetary policy.
His conclusion: The whole charade will soon hit a brick wall.
Of particular interest were his comments on gold, commodities, and the “Fort Knox Fairy Tale“…ie. Fed gold certificate claims on Fort Knox bullion holdings which may or may not actually exist.
Says Gross, “Supposedly they [the US Fed] own a few billion dollars of “gold certificates” that represent a fairy-tale claim on Ft. Knox’s secret stash, but there’s essentially nothing there but trust…$54 trillion of credit in the U.S. financial system based upon trusting a central bank with nothing in the vault to back it up.
Nada in Ft Knox continued
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
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Comments
Gross' full editorial is worth reading. He's taken a little out of context by DaSilva (in this blog by Rockwell), but his overall points are pretty much on target.
Witness just a few days ago when the minutes of the Fed meeting suggested 'easing of the QE' and the price of PM's dropped significantly.
Well, if Fort Knox truly has all its gold, what better way for the Fed to bring down the price of gold by having a government audit of Fort Knox.
They're saying all along 'we have the gold'. So prove it and audit the place.
I believe since the last audit was in the 1950's, that there must be a very good reason why this is so.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>Gross maybe the smartest guy in most rooms and The Bond King but he has been wrong an awful lot lately. He has also begun to sound like a bitter old man. MJ >>
Agreed. He shouldn't have shaved off the mustache.
Knowledge is the enemy of fear
<< <i>Gross maybe the smartest guy in most rooms and The Bond King but he has been wrong an awful lot lately. He has also begun to sound like a bitter old man. MJ >>
I can't believe that he says that there is no gold housed in Ft. Knox. The Mint does make an annual audit of that facility. Now, whether the gold is still owned by the US would have made a more convincing headline.
Doesn't the mint only audit what is at West Point? I would be surprised to learn that "outsiders" are allowed into the secret vault.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
That said, the full faith and credit of the USA is based on its ability to tax, which is a very real power on the American people. It is trust backed by authority.
None-the-less, the inflation of the money supply is a real concern, which essentially makes paying back the debts of the USA easier by making the dollars less valuable than when they were 'loaned'.
We really need a Paul Volker back in charge of the FED, we would go into a severe recession, but we would and could solve the inflation issue.
<< <i>Audit results:
is that eric holder putting a for sale sign on that tank?
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
<< <i>Doesn't the mint only audit what is at West Point? I would be surprised to learn that "outsiders" are allowed into the secret vault. >>
Yes, the Mint audits Ft.Knox on an annual basis. However, it's considered a safety audit, along with inspecting that the seals for the different vaults are not broken and a look see to make sure that gold is still in the vaults. It's not a physical bullion audit nor do they enter the vaults themselves.
as well as emptying in full, a couple of random vaults. Random bars should be drilled and samples sent out for sophisticated analysis. There was supposedly an audit conducted this
year of the gold stored at the NY Federal Reserve that included mint employees. No results on this audit. I don't thing anyone is questioning that the NYFed has all their gold. The real
issue being who actually owns it. One has to also factor in that possession is nine tenths of the law.
Those Fort Knox vault seals are worthless unless an honest and comprehensive audit was accomplished before installing them. KPMG was supposedly going to do an "independent" 100%
physical audit of Fort Knox but I don't think this has ever gotten off the ground. Wake me up when it happens.
<< <i> When did the US mint start performing these superficial audits? >>
Ft. Knox is part of the US Mint and it's their responsibility. The Mint performs an employee safety, environmental, building & fire etc inspection on an annual basis and has been doing that every year. They do not audit nor inspect the bullion in the different vaults. Just a look see to make sure that the "seals" are not broken. As far as I can remember, the last physical gold audit occurred in the 1970's..BTW, my brother, at one time, was the Safety Inspector for the US Mint and he himself performed several of those inspections.
<< <i> Ft. Knox is part of the US Mint and it's their responsibility. The Mint performs an employee safety, environmental, building & fire etc inspection on an annual basis and has been doing that every year. They do not audit nor inspect the bullion in the different vaults. Just a look see to make sure that the "seals" are not broken. As far as I can remember, the last physical gold audit occurred in the 1970's..BTW, my brother, at one time, was the Safety Inspector for the US Mint and he himself performed several of those inspections. >>
OK. That's pretty clear that what the mint does is not a gold audit in any way, shape, or form. I googled Fort Knox gold audits and found a 4 page audit from 1978 that discussed their
procedure. What I found interesting was that of the 2 tiny surface samples they took, both came out too low. They had to do them again, this time by drilling. They still came
out low. They did a 3rd permutation and then everything was declared good. With all the melted coin gold in those vaults I'm not surprised that samples would be quite variable.
<< <i>We really need to terminate the Fed's charter and give back all the gold they have been entrusted with to the owners, i.e. the American people. And if the gold doesn't exist, take all the assets of all the Fed owners till every ounce is given back to us.
Iceland has jailed their bankers and their problems went away.
<< <i>Iceland has jailed their bankers and their problems went away. >>
Do they have room for ours?
<< <i>
<< <i>Iceland has jailed their bankers and their problems went away. >>
Do they have room for ours? >>
If you stack them like cordwood they will fit just about anywhere
<< <i>While I cannot say what Bill Gross meant by his comment that "When the Fed now writes $85 billion of checks to buy Treasuries and mortgages every month, they really have nothing in the “bank” to back them. Supposedly they own a few billion dollars of “gold certificates” that represent a fairy-tale claim on Ft. Knox’s secret stash, but there’s essentially nothing there but trust. ", I can say that his assertion about 'trust' is true. Our paper dollars are not redeemable by the gold (there or not, in the ownership of the USA or not). I have to think that this is the meaning of his words - the dollars/checks are backed by the full faith and credit of the USA, nothing else.
That said, the full faith and credit of the USA is based on its ability to tax, which is a very real power on the American people. It is trust backed by authority.
None-the-less, the inflation of the money supply is a real concern, which essentially makes paying back the debts of the USA easier by making the dollars less valuable than when they were 'loaned'.
We really need a Paul Volker back in charge of the FED, we would go into a severe recession, but we would and could solve the inflation issue. >>
Federal Reserve Notes (dollars) are backed by nothing, and are only good as long as someone is willing to accept them as payment.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>
<< <i>Iceland has jailed their bankers and their problems went away. >>
Do they have room for ours? >>
<< <i>If you stack them like cordwood they will fit just about anywhere >>
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Looks like our deficit currently runs about $200 billion a month. Somebody smarter than me do the math so we know how much gold Moy believes is in Ft. Knox. Possible he might have let the cat out of the bag without realizing it. The question is "how many ounces of gold would $600 billion buy?"
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Jim Rogers first suggested several years ago that there's probably not as much gold in FN as the gov would lead us to believe.
So Bill isn't the first to beat the drum on this issue.
We may be turning the corner on the pull back in silver and gold and begining another rise to higher levels, but of course I'm simply speculating on that.
<< <i>Former mint director states gold in Ft. Knox "would fund less than three months of the federal budget deficit." (last sentence in link).
Looks like our deficit currently runs about $200 billion a month. Somebody smarter than me do the math so we know how much gold Moy believes is in Ft. Knox. Possible he might have let the cat out of the bag without realizing it. The question is "how many ounces of gold would $600 billion buy?" >>
But isn't it still carried on the books at something like $42.22 per ounce? He may be using that value!
LOL!
http://www.bloomberg.com/news/2013-01-10/gross-raises-holdings-of-treasuries-to-highest-level-since-july.html
Knowledge is the enemy of fear
<< <i>The Fed Claims To Own Gold in Fort Knox
But there's essentially nothing in the vaults, says Bill Gross.
Bill Gross, founder of Pimco, the world’s largest bond fund with over $1.92 trillion under management, penned a new piece entitled, “Money for Nothin’ Writing Checks for Free.” In his editorial, he called attention to the near $10 trillion explosion in global central bank money issuance since 2006, and the impending doom historically associated with a “money for nothing” monetary policy.
His conclusion: The whole charade will soon hit a brick wall.
Of particular interest were his comments on gold, commodities, and the “Fort Knox Fairy Tale“…ie. Fed gold certificate claims on Fort Knox bullion holdings which may or may not actually exist.
Says Gross, “Supposedly they [the US Fed] own a few billion dollars of “gold certificates” that represent a fairy-tale claim on Ft. Knox’s secret stash, but there’s essentially nothing there but trust…$54 trillion of credit in the U.S. financial system based upon trusting a central bank with nothing in the vault to back it up.
Nada in Ft Knox continued >>
I proclaim that all the gold in Fort Knox has been replaced with bricks of gouda cheese. When the Treasury Department ignores my proclamation, that will prove that I am right!
<< <i>] >>
I proclaim that all the gold in Fort Knox has been replaced with bricks of gouda cheese. When the Treasury Department ignores my proclamation, that will prove that I am right!
Is there a stench around the Fort of Cheese?
No. It's sad but true. Using the current full market value of $1662/oz for gold leads to about $435 BILL total for the US gold inventory of 262 MILL ounces.
If we use the $42.22 official figure than it's only $10 BILL....or about 2-1/2 hrs worth of govt operation.
Fort Knox supposedly holds about 55% of the total. So FK by itself would only sustain the govt for about 2 months of operation....assuming $4 BILL per day.
Empty or not, it's at most 60 days worth of the budget. The gold has more symbolic value than it does anything else.
Knowledge is the enemy of fear
But owes so much on the mortgage, loans, debt and constant spending that it is much more then they can ever earn and payback.
I guess you're not considered broke until they kick you out of the house, shut off the electric, and take your car.
Even if the gold was there, its like a family having $4k cash hidden in the mattress but oweing $120,000 on
the credit cards. It just means you have some quick cash.
I'm sure the leaders, will make us pay through the nose before they ever get Broke.
----
I think there is gold, but not all of if, and good portions of it over-claimed.
Possession is the rule though, isn't it..... Things get tough, they'll find out who owns it when the try to claim it.
Sort of like the situation with your own gold. If you don't have it, try and claim it when things get tough.....
<< <i>So if there is no gold in Ft. Knox, does that mean the US is broke? >>
Broke, no. Habitually spend more than they take in, yes. Is there really much of a difference? What keeps them from being broke is they get to approve their own credit limit increase.
Broke is when you have no money. Insolvent is when you spend more than you take in. Eventually that will make you broke when you can no longer increase your credit limit.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>So if there is no gold in Ft. Knox, does that mean the US is broke? >>
No. But if that word ever got out and was officially verified, the price of gold would take an immedate 10-20% flyer, if not much more.
That wouldn't be a very good thing for the dollar or TBonds. But it would be one way to get the dollar devaluation that is coming sooner or later.
Only problem is, a petition is mostly worthless. If a certain threshold of signatures are obtained, the US government must address/reply to it. (But that does not mean they have to perform the audit... only that they must respond to the petition).
So I am sure we will continue to be in the dark as to what is actually in Fort.
In my opinion, there is probably gold in Ft. Knox. But I have little faith that it is owned by the US free and clear.
<< <i>A petition is currently making the rounds to compel the US government to perform an audit of Ft. Knox.
Only problem is, a petition is mostly worthless. If a certain threshold of signatures are obtained, the US government must address/reply to it. (But that does not mean they have to perform the audit... only that they must respond to the petition).
So I am sure we will continue to be in the dark as to what is actually in Fort.
In my opinion, there is probably gold in Ft. Knox. But I have little faith that it is owned by the US free and clear. >>
I do my best to not be on any list at the White House, might be a mix up and end up on the drone list.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>A petition is currently making the rounds to compel the US government to perform an audit of Ft. Knox.
Only problem is, a petition is mostly worthless. If a certain threshold of signatures are obtained, the US government must address/reply to it. (But that does not mean they have to perform the audit... only that they must respond to the petition).
So I am sure we will continue to be in the dark as to what is actually in Fort.
In my opinion, there is probably gold in Ft. Knox. But I have little faith that it is owned by the US free and clear. >>
Here's the White House Petition
If there are issues with the gold inventory at FK, it will come out before this gold bull market is over.
<< <i>I'm all for an audit. But, like derryb, I also don't want to be on any list kept by the White House.
If there are issues with the gold inventory at FK, it will come out before this gold bull market is over. >>
we'll never know, they don't want us to know.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>I predict that the U.S. Treasury will continue to ignore everything said in this forum! >>