The Fed's Gold and Fort Knox

As most of you know, the US dollar was taken off the gold standard by Richard Nixon in 1971. Since then, the value that backs the currency of the United States is the "full faith and credit" of the people.

Ignoring the absurdity of borrowing our own money and paying interest on that "loan" (from ourselves!) I have another point to make regarding gold.

There are some people who would argue and expect to find that the Fed banks have large stores of gold in their vaults, and that there is (or should be) a lot of gold in Fort Knox. Keeping in mind that our currency is no longer backed by this metal, my question is this...

Why does the Fed or the "Goverment" still hold on to these things (or claim to) if they are entirely unnecessary?

They have put forth the argument that our money has value irrespective of whether any material is used to back it. Ok, let's grant them that. So why haven't they sold off all the gold? Why do they deal with that yellow metal at all any more?

I think the answer you will find is that somehow, somewhere, sometime... somebody is going to want or need that gold. My question then becomes "Who gets it?"

Doesn't it belong to the American people? If so, I want an independent, corroborating, detailed and complete audit, immediately.

Regarding the Federal Reserve and the Gold in Ft. Knox
www.phoenixpermaculture.org...

"About Fort Knox Gold:
In the 1970's a very courageous gentleman named Edward Durrell...
(Original link removed? I substituted...)
Thinking the Unthinkable
www.fgmr.com...

First, about Fort Knox. You know, the Fort Knox Gold Scandal is just like the Watergate Scandal in one respect: There is a desperate cover-up going on right now just as happened with Watergate. The Fort Knox Gold Scandal
cover-up really passed the point of no return last September when the United States Treasury perpetrated the Fort Knox gold inspection hoax in an attempt to discredit my charges that there's no gold in Fort Knox because it had all
been illegally removed. Since that time the Government has been getting in deeper and deeper and deeper, involving more and more people in all sorts of maneuvers to try to keep the lid on. For example, when the Congressmen and newsmen visited Fort Knox last September, news stories promised everybody that the visit would be followed up by an audit of the Fort Knox gold by the General Accounting Office, but what they actually did was just a very superficial exercise just to make the record look good, and the group of 15 men that did it had only two (2) General Accounting Office representatives on it. All the rest were from the Treasury itself--in other words, the fox went into the henhouse to count our chickens for us.

It may come as a shock to some, but the U.S. has very little so-called "U.S. government" gold bullion in Fort Knox. A brave outspoken journalist, Tom Valentine, in the 1970s, exposed as a fraud that there was world-trade-quality gold at Fort Knox. All they have left are poor quality, orangish-looking, melted down coin metal from the seizure in 1934, of gold coins from America's common people. [The American aristocracy, warned in advance, shipped THEIR gold out of the U.S.] The U.S. governmentt gold is gone. Why? Because it was shipped, under the supervision of a ply-able U.S. General, to the private central octopus called the Bank of England, in 1968, to stem a run on that bank which had somehow lost all their own gold.]

The organization (formerly) chaired by Alan Greenspan is a coalition of private international banks, that does not answer to the United States Government. And there is no precious metal warehoused in Fort Knox or elsewhere that backs the money that they issue.

Large shipment of gold leaves Fort Knox, public doesn't know that their national gold 'reserves' are being secretly depleted by one-world national socialist agents working in U.S. government. Gold at Fort Knox replaced with
gold-plated lead bars, making it the biggest heist in history. Rockefellers involved. James MacDonald becomes critical of Air Force and the CIA.

Throughout the 20th century this movement toward a one world government has been marching on. This is not new or recent. In his book Critical Path Buckminster Fuller gives a very impressive sweep of the 20th century, about the large corporations and their agents and the lawyers who basically control the country far more than the people understand. He talked about how all the gold was removed from Fort Knox by the 1960's.

Where did it go?

It went to the banks. They own the country. Fuller called the CIA, "capitalism's invisible army." We have a Constitution and our Bill of Rights (the first 10 amendments) that makes us free. Right?
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In 1971 Nixon unilaterally canceled the Bretton Woods system and stopped the direct convertibility of the United States dollar to gold.
en.wikipedia.org...

Where's the missing $6.5 Trillion?
www.abovetopsecret.com...



[edit on 2/28/2009 by Hx3_1963]

People have been saying our gold is gone for years, and they have always been wrong, the fact of the matter is the full faith and credit alone is not what completely backs our currency. Think of the dollar as the stock of the U.S., gold is just an asset that sits on it's balance sheet. The U.S. government has it's gold reserves in the Federal Reserve banks, the gold standard was a "pegging," that doesn't mean that gold plays no role in our currencies value now, as it sits as a U.S. asset. The gold standard has flaws, and anyone who knows their history knows that towns that ran on gold alone and no paper currency too experienced inflation. The dollar being freely floated is much more of a free market thing then having the gold standard, and I frankly believe we should remain a free floating currency. The thing we need to address is the government spending, and the political pressures on the Federal Reserve to keep interest rates low and to buy U.S. debt by issuing dollars.