Friday, November 20, 2009

Is America's Ft. Knox Full of Fake Gold?

Considering that Ft. Knox stocks gold for not only the USA but also for many countries, international relations could very well be in jeopardy, not to mention many economies. The question of whether officials at Ft. Knox are storing tungsten filled gold bars, so called "salted" gold, which hold a small fraction of the normal cost of the bullion, were recently brought up by an American media company, CNBC, during an interview of Howard Ruff by Joe Herman.

Howard Ruff is a financier investor and advisor who advocates for hard currency, that is, currency backed by valuable commodities, such as gold or silver. He is also an economics writer with many published works, who is an expert on hyperinflationary economics.

Also on another American media company, Fox, the issue was also brought up, in this case, whether there still is gold at Ft. Knox, an institution that has not had an independent audit for 50 years. As the interview states, much of the gold may not be there, or may not even have been there in many years.

While these have been conspiracy theories for many decades, the questions have now gone mainstream. At $16 per kg, and with the exact same density and weight, as gold, tungsten makes for a perfect filler. Simply weighing a gold bar, with cutting it, will not allow for distinction from true bullion.

Such a breach of public and international trust may doom more than just key relationships, but also the international credit rating of the US, which would suddenly find itself in hundreds of billions of dollars of additional debt, while allied governments and economies who relied on that gold would quickly start to fold.

One of the models upon which America hails itself: Athens, had done the exact same thing. After the first Pelopinesian Wars, Athens guarded the island treasury of its alliance of city states. Instead of acting in good faith as guardian, it quietly stole from the vaults and built many great works, such as the Parthenon, with that stolen gold. Of course this drove many of its allies to side with Sparta in the next war.

Again, as stated, the facility of Ft. Knox, has not had an independent audit in over 50 years and as such no one really knows what is or is not there. The US Congress has demanded audits, but just like the Federal Reserve, the Treasury Department has refused to tell the people of America and especially in this case, the World, the truth. Requests by members of the American parliament to physically inspect the facility, have equally been turned down for almost 20 years.

If the members of Congress are not allowed to find out the truth and there is no accountability in the American government, than it is truly time for an international organization, backed by all interested and affected parties, such as the UN or World Bank or IMF to demand a full inquiry and pressure the rogues in the Obama Regime to come true.


Looney said...

The estimated value of all the reported gold stored at Fort Know is about $150 billion. If it turned out to all be missing, it would just be a drop in the bucket compared to the sea of debt that we are issuing. Is this significant when we are trillions of dollars in debt and desperately increasing the debt as fast as we can in order to invest in the parts of our society that don't produce anything?

G &or T said...

USA perspective here...

I thought it was common knowldege that the gold reserves of the united states have not been stored at ft. Knox for many years.

The vast majority of our gold reserves are (and always have been) held in a vault underneath the NYSE.

Knox was primarily used for deposits by foreign countries, and was emptied by the French shortly before we went off of the gold standard during Nixon's reign. A run on the banks if you will, that set the world on it's current fiat standard. Knox has not held a relevant amount of gold since that time.

I suppose it is useful to keep this idea of knox holding gold from the US govt.'s perspective, but believing it is anything but a prop is a stretch.

Bob said...

Any foreign nation storing its gold on US soil with the pack of thieves we've had running this place for the past 60-70 years would have to be insane.