if we need be on or off a gold(or even bi-metal) standard, the metal is still there!
Well Richard, I don't know what to tell you.
They say it's there. Someone has to sign off on the paperwork whenever they report US reserve assets. They have armed guards surrounding Ft. Knox and the NY Fed where it's supposedly deposited, and no one has proven that it's not there.
But even were you to obtain the approval for a public audit, it would take very little for the US to borrow gold ingots from every other CB out there, stack it in Ft. Knox, have it there for the audit whereupon, once completed, they would return it to where it was borrowed from.
But even if it were all loaned out, it would not alter the underlying logic, since there would be contractrual obligations from the borrowers to return it. Failure to carry out their contractual obligations would caused a forfeiture of whatever collateral they provided.
Whether the physical metal actually exists or has been replaced with promissory notes matters not.
What you are attempting to do is synonymous with Jed Clampett constantly wanting to physically see the $40 Million in cash he had deposited in Drysdale's bank, not realizing that 'ol Milburn has $400 million in loans outstanding against that deposited reserve.
Btw, here's some Beverly Hillbillies trivia for you:
us.imdb.com
Personally, I certainly HOPE they have loaned out the gold, either physically, or by proxy. I think it's a damn shame we're spending so much money warehousing and guarding it at taxpayer expense without deriving some revenue from it.
Regards,
Ron |
