Ron Paul Bill To Audit Federal Reserve
2008 Libertarian Presidential candidate Ron Paul went on record saying that he wanted to have a look. To that end, he pushed for a bill intended to audit the Federal Reserve. Paul doesnt believe in the conspiracy that Fort Knox is totally empty though.
My attitude is, lets just find out whats there.
The Defensive System Of Fort Knox
Here are some things you need to know about the defenseof Fort Knox. There is a reason why the building is the most secure building inthe world.
– Fort Knox has the worlds hardest shell, with the wallsfeaturing 4 foot thick granite, lined with cement, steel, and fire-proofmaterial. The depository can actually withstand a direct hit from an atomicbomb
– The front door weighs 22 tons and is made ofblast-proof materials. No single person can enter the vault. To open thedepository, several staff members have to dial separate combinations, and theyare changed on a daily basis
– The surveillance system is second to none. There aremulti-focus surveillance systems at every corner of the Depositor, puttingevery square inch under surveillance at all times
– The ultimate safe is protected by 27 inches thickvaults made of steel and concrete. Same as the walls, the vaults can withstandatomic bombs
– The depository also has a barrier within a barriersystem. There is a system of barriers and defenses that make the Depositoryvirtually impenetrable. The original barrier was built in 1937, and featuresfence with iron barrier forming an octagonal defense around the building. Thefirst barrier is a simple wire fence that surrounds the outermost perimeter andhas motion sensors along. The second barrier is a 10 foot electrical fence withconcrete support. The third and final barrier is in rectangular shape, and hasdoorways and patrolling guards protecting it.
Is There Any Good In Fort Knox
It holds tons of gold literally The government says the bullion has a book value of $6.22 billion. However, thats based on a fixed price that officials set in 1973. Based on the current market value of gold, the reserves at Fort Knox are worth a far more impressive $190 billion, roughly speaking.
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Is There Gold In Fort Knox
Protected by a 109,000-acre U.S. Army post in Kentucky sits one of the Federal Reserve’s most secure assets and its only gold depository: the 73-year-old Fort Knox vault. Its glittering gold bricks, totaling 147.3 million ounces , are stacked inside massive granite walls topped with a bombproof roof. Or are they?
Its hard to know for sure. Few people have been inside Fort Knox, a highly classified bunker ringed by fences and multiple alarms and guarded by Apache helicopter gunships. When the U.S. finished building Fort Knox in 1937, the gold was shipped in on a special nine-car train manned by machine gunners and loaded onto Army trucks protected by a U.S. Cavalry brigade. And the fort has been pretty much off limits since then. A U.S. Mint spokesman said in an email statement to MoneyWatch that the accounting firm KPMG, which audits the Mint, has been present in the vault at Fort Knox. The Mint wont comment on exactly how much gold is in there, though.
Thats why Ron Paul , a 2008 presidential candidate known for his libertarian streak, wants to have a look around. Paul introduced a bill to audit the Federal Reserve, which includes Fort Knoxs gold. My attitude is, lets just find out whats there, he says.
Protection Of America’s Founding Documents
For protection after the Japanese attack on Pearl Harbor in 1941, the , the Constitution of the United States and the Gettysburg Address were all moved for safekeeping to the United States Bullion Depository until Major W. C. Hatfield ordered their release after the D-Day Landings on 19 September 1944.
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What Is The Us Dollar Backed By
Currency Backed by Gold For almost 200 years following the founding of the United States, the value of the U.S. dollar was officially backed by gold. The gold standard was a system agreed upon by many countries during that period, in which a currency was determined to be worth a certain amount of gold.
Significance Of Fort Knox
The US Department of the Treasury owns all gold from Fort Knox. The question is why this place still exists after President Richard Nixon officially abolished the gold standard in 1971. There are two probable reasons for that:
- The stocks kept in this vault are so vast that they could destabilize the entire world economy after the sudden bullion sale
- The simple gold politics
The problem is the gold amount the US keeps in Fort Knox. If the government ever considered selling all that gold, its value would fall instantly and cause chaos in the marketplace.
Besides, this gold is not crucial for the US monetary system but only an advantage of the Federal Reserves balance sheet. The gold in Fort Knox is among the worlds most significant bullion holdings, but it is actually only a tiny part of the US total assets.
Believe it or not, these 147.3 million troy ounces of gold are almost negligible compared to a $13.8 trillion GDP economy. In other words, these large gold reserves offer some confidence to investors, but they are not substantive but more symbolic.
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From A Civil War Fort To A Gold Repository
When imagining the largest single collection of bullion, most people think of Fort Knox gold reserves.
Fort Knox, Americas only gold depository began life in the middle of the Civil War as just another fort in the conflict. This site must have been of significant strategic importance, as both Union and Confederate forces battled for control of it on numerous occasions. Once the war concluded, the U.S. Army took control of the site and, in time, renamed the site after Americas first Secretary of War Henry Knox.
The U.S. gold bullion depository. Image: By Cliff
All The Gold In Fort Knox Will Not Buy You More Than 1% Of Total Bitcoin Supply
This story is about value, and the difficulty of measuring and finding true value. The total size of the US gold holdings is 261 million fine troy ounces. The size of the holdings in Fort Knox is 147.43 million troy ounces. At the current market price, this should be worth about $470 billion , the Treasury marks the gold at $11.1 billion . The statutory price for gold is set at $42.22 per fine troy ounce, the same price it was in 1971 when the dollar came off the gold standard. The real price of gold in the open market is about $1750 per troy ounce. This is about 40 times more than the marked value. The heading is based on the value of $11 billion placed on the gold holdings of the treasury, which is why it says 1% of the bitcoin supply at current bitcoin prices.
Fort Knox, Kentucky
No nation in the world is currently tied to the gold standard. Throughout history, money has had many forms, from cowries to potsherds. Some of the more successful started with a currency fully backed by gold. First by striking the coins with gold. Over the years, many schemes and human ingenuity played roles in literally chipping away, at this standard. Bi-metallism set up in the young American republic caused so many problems, because of differences in purity of gold, because of arbitrage between silver and gold prices at various points, causing breakdowns, including the unavailability of money to conduct transactions, leading to the printing of banknotes.
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The Gold Reserves Of Fort Knox
KET Staff | September 28, 2017 10:51 am
Two experts share the history of the U.S. Bullion Reserve at Fort Knox with Kentucky Life.
Fort Knox, established in 1918, is an active military base located between Louisville and Elizabethtown, but most people know it for its role as the U.S. Bullion Depository. No visitors are allowed inside, and the exact quantity of gold held at Fort Knox is undisclosed.
President Roosevelt decided the only way to bring the economy out of its situation was for the government to control the money, says Fort Knox historian Paul Urbahns. In 1933, Roosevelt signed the Gold Act which made it illegal for people to own gold.
Americans sold their gold coins and other items back to the government, where the metal was melted down and formed into bars that weighed approximately 27.5 pounds each. Originally the gold was housed in New York and Philadelphia.
As the 30s rolled on, there was a problem in Europe by the name of Hitler and concerned about our gold reserves being attacked, says Urbahns. They decided to construct the gold vault at Fort Knox because it was 1,000 miles inland, and it was west of the Appalachian mountains, which at that time was a reasonable barrier. It was also home of the new armored force of the U.S. Army so they decided that would help protect it.
Fort Knox is also legendary for its imposing security.
This video is part of Kentucky Life episode #1919, which originally aired on May 10, 2014. View the full episode here.
How Secure Is Fort Knox
Fort Knox is famous for its tight security. Few people even U.S. presidents have actually seen the gold reserves in the depository.
President Franklin D. Roosevelt was the only person outside of normal security personnel to see the gold reserves until 1974. In 1974, a group of journalists and a Congressional delegation viewed the gold vaults.
This small group was permitted access in 1974 to quell consistent rumors that all the gold in Fort Knox had been removed.
It wasnt until 2017 that the Fort Knox gold vaults were again open for a few select visitors. Treasury Secretary Steve Mnuchin, Kentucky Governor Matt Bevin, and a few Congressional representatives viewed the gold vaults that year.
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Which Country Has Most Unmined Gold
World mine reserves of gold by country 2020 In 2020, the United States was estimated to have some 3,000 metric tons of gold reserves in mines. Thus, the U.S. was within the top group of countries based on mine reserves of gold. Australia is estimated to have the largest gold mine reserves worldwide.
Time For Fort Knox To Sell
The Fed wont be unloading large stashes from Fort Knox anytime soon. Doing so would flood the market and send the price of gold spiraling downward. A small, vocal group of gold bugs would be against it, says John Irons, research and policy director at the Economic Policy Institute, a liberal think tank. The Fed wouldnt want to stir things up.
But Irons and some other economists would like to see the U.S.s gold reserves thinned out. The Fed could sell a lot of the gold, says Irons. Its better used in jewelry or in electronics. It can be useful to the private economy rather than buried in a vault. The sale could make a small dent in the $12.1 trillion national debt and, with the price of gold near its all-time high, this is a particularly good time to sell.
The reason Fort Knox will remain a mighty fortress, however, may come down to something Alan Greenspan once told Paul. When Paul asked the former Fed Chairman why the Fed hangs onto its hefty gold reserves, Greenspan said just in case we need it, says Paul. You hold onto it because its the ultimate in money.
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What Opponents Say
While GovTrack Insider was unable to locate any explicit statements of opposition to an gold audit or accounting, per se, opponents may counter that this bill is just an on-ramp to potentially putting the U.S. back on the gold standard. Indeed, Rep. Mooney has twiceintroduced legislation to put the U.S. back on the gold standard.
Opponents also say that there are very good economic reasons the U.S. and other countries such as the U.K. went off it in the first place, and havent gotten back on in all the decades since.
The Federal Reserves two main policy goals are to achieve the lowest possible unemployment and most stable price levels.There have been plenty of times in the fairly recent history where the price of gold has sent signals that would have been quite negative for either of those goals, Federal Reserve Chair Jerome Powell said in House Financial Services Committee hearing testimony. And I dont think thats something that would be attractive. No other country uses it.
How Is Gold Kept
There are only three options for storing gold: at home, in a banks safe deposit box, or paying a third-party storage company. The dangers of investors storing gold bullion on their own are highlighted by Mike Clark, president and general manager of Diamond State Depository. Clark says if you lose it, then youre out of it..
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Historic Gold Holding Records
Gold first found its way to Fort Knox in 1937. The record for most gold holdings at the Fort Knox vault is 649.6 million ounces. The U.S. set this record on December 31, 1941.
Currently, it has been decades since any gold has been moved to or from the facility. Gold is only moved when experts sample small amounts to test its purity.
Us Bullion Depository Fort Knox Facts
- U.S. Bullion Depository holds 147.3 million ounces of gold. Approximately 50% of the Treasurys gold, along with precious items of other federal organizations, is reserved in the Depository.
- It held 649.6 million ounces on December 31, 1941, the largest historic amount of gold assets.
- Inspectors only abstract insignificant quantities of gold to check purity. Apart from these samples, no gold has been transported to or from the vault for several years.
- The gold is kept as the countrys asset at a book value of $42.22 per ounce.
- Typical size of a gold bar stored in the Depository is 7 x 3 5/8 x 1 3/4 inches.
- Weight of a typical gold bar is around 400 ounces .
- Only a few people know about the actual construction and content of the building. However, no individual knows all the techniques to unlock the vault.
- In 1937, the first gold reached Fort Knox by U.S. Mail.
U.S. Bullion Depository, Fort Knox
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Blast Proof Doors And Roof
Enclosed by a series of railings and built with granite walls, the vault is sheltered by a 20-ton blast-proof security gate that requires codes unique to every depository staff member.
The roof is said to be explosion-proof. According to the Treasury, nobody knows the whole combination to open the door, which is resilient to torches, military exercises, and explosives.
Mechanized Military Unit Occupation
In 1931 a small force of the mechanized cavalry was assigned to Camp Knox to use it as a training site. The camp was turned into a permanent garrison in January 1932 and renamed Fort Knox. The 1st Cavalry Regiment arrived later in the month to become the 1st Cavalry Regiment .
In 1936 the 1st was joined by the 13th to become the 7th Cavalry Brigade . The site quickly became the center for mechanization tactics and doctrine. The success of the German mechanized units at the start of World War II was a major impetus to operations at the fort. A new Armored Force was established in July 1940 with its headquarters at Fort Knox with the 7th Cavalry Brigade becoming the 1st Armored Division. The Armored Force School and the Armored Force Replacement Center were also sited at Fort Knox in October 1940, and their successors remained there until 2010, when the Armor School moved to Fort Benning, Georgia. The site was expanded to cope with its new role. By 1943, there were 3,820 buildings on 106,861 acres . A third of the post has been torn down within the last ten years, with another third slated by 2010.
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Who Guards The Depository
The facility is guarded by the United States Mint Police, and the Depository is within sight of Fort Knox Army Post, which is home to the 16th Calvary Regiment, 19th Engineer Battalion, U.S. Army Armor School, and the 3rd Brigade Combat Team. In all, 30,000 soldiers and 300 tanks, and attack helicopters are available to defend the Depository against unwanted intruders.
This begs the question, is it the gold that is being protected or a far bigger secret? Jimmy Hoffa, aliens, gold, anthrax, or whatever is inside the walls of Fort Knox is likely to remain a secret.
How Much Gold Is In Fort Knox And Who Owns It
Germany has the next highest gold reserves, with 3,364 metric tons of gold in its current holdings. At the end of July 2020, Fort Knox had 147 soldiers. There are 34 million troy ounces of gold reserves with a market value of US $290 million. There are 56 billion dollars, or $9 billion. The United States has 35% of its gold reserves in gold.
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Discovery Of Ten More Coins
In August 2005, the United States Mint announced the recovery of ten additional stolen 1933 double eagle gold coins from the family of Philadelphia jeweler Israel Switt, the illicit coin dealer identified by the Secret Service as a party to the theft who admitted selling the first nine double eagles recovered a half-century earlier. In September 2004, the coins’ ostensible owner, Joan Switt Langbord, voluntarily surrendered the 10 coins to the Secret Service. In July 2005, the coins were authenticated by the United States Mint after working with the Smithsonian Institution, as being genuine 1933 double eagles.
According to various accounts, Israel Switt had many contacts and friends within the Philadelphia Mint, and reportedly had access to many points of the minting process. A secondary source reports that the Secret Service found that only one man, George McCann, had access to the coins at the time and served prison time for similar embezzlement in 1940. Switt may have obtained the stolen 1933 double eagles through a relationship with the head mint cashier. One theory is that McCann swapped previous year double eagles for the 1933 specimens prior to melting, thus avoiding compromise of accounting books and inventory lists.