Fed News Friday: “We Don’t Own Any Gold”
June 3rd, 2011Wednesday’s monetary policy meeting, head by chairman of the committee Dr. Ron Paul, was held to discuss the current amount of gold owned by the Fed. Turns out they don’t even have any gold, only gold certificates!
Talk about a kick to the stomach. The Fed did once own a nice chunk of gold, but in 1934 surrendered it to the US Treasury for the gold certificates they hold today. The certificates don’t seem to be of interest to the Fed officials. However, if the Treasury took over ownership of the gold, then the gold still does exists, and these certificates are legal collateral for the physical gold. $11.1 billion in collateral (it’s priced at the 1973 price of $42.22). Why on earth is the Federal Government holding onto gold if its currency resource and top officials claim it is insignificant and not to mention still priced at $42/oz on the certificates? Ron Paul heated up the hearing by responding to the senseless responses he received from asked officials.
“If it’s not money and we don’t need it, and we’re not going on the gold standard…I would think they shouldn’t be holding it.”
“The truth is gold is money.”
According to current trends the dollar’s purchasing power is decreasing and the stimulus packages formulated to “save” the economy are only stimulating inflation. Ron Paul is suggesting to return the gold back to the people so they can use the metal as a hedge against the dying dollar. What’s the Federal Government’s is mine, and unfortunately even more of what’s mine is the Federal Government’s…including the well being of the fruits of my labor.
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