Posted on 09/30/2024 7:22:40 AM PDT by delta7
The Fed doesn't issue debt; the US Treasury issues debt.
which the USA borrows at interest,
The USA borrows debt? Dude!
then the USA could buy gold with it.
WOW!
Don’t spoil the story, Toddster.
Our political class prefers that the public remain in the dark about who is responsible for creating the national debt.
If they can make everyone mad at the Fed, or the Treasury, there’s little chance that they will figure out that Congress is the culprit.
Of course even if they do figure it out, there seems to be no way to keep Congress from constantly raising the debt limit.
I now tend to think that the now abandoned link of the dollar with gold did serve as a brake on the endless expansion of debt and the money supply. I hope my guess is wrong.
August 24 - Treasury Secretary Steve Mnuchin, Kentucky Governor Matt Bevin, and Congressional representatives visit the vaults. The vaults open to non-authorized personnel for the first time since 1974
Same day as the solar eclipse.
The US dollar hasn’t had a link with gold since Nixon “suspended” Bretton Woods back in 1971.
No country can exchange their dollar holdings for gold right now. And you can’t go to a bank and insist on exchanging your dollars for gold. All you’ll get from the teller is a blank look.
As far as the value of the US dollar is currently concerned, Ft Knox is already empty.
If a future President decides to un-suspend Bretton Woods, and we return to an international gold-exchange standard, then the gold supply at Ft Knox will again be important. But unless that happens it’s irrelevant.
But there’s no reason that the gold supply at Knox would have been reduced in either case. It’s in the middle of an Army base and doesn’t cost much to protect.
“The BRICS nations are reportedly looking to create a new world reserve currency based on gold to replace the dollar.”
Making the US Dollar the world’s reserve currency was a mistake. It set us up for “the Triffin Dilemma”, which resulted in inflation and broke the link of gold to the dollar.
Foreign banks holding dollar reserves resulted in us having a shortage of dollars for our domestic economy. But if we expanded our domestic money supply, which we did, then we couldn’t defend the dollar’s value in gold. And the French, not being fools, began demanding gold in lieu of dollars and we were setting ourselves up for shipping our Ft Knox gold to Paris.
Research further, Ft Knox was once the US Army Armored Branch HQ, they moved it to Ft Benning and now Ft Knox is a “ Personnel Records “ facility- devoid of any meaningful active ground troops- which when it happened almost a decade ago sparked rumors there was no more gold in Ft Knox.
I am very, very familiar with this event.
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