Conspiracy Theorists Can Relax! Steve Mnuchin Peers Through Ft. Knox Window And Confirms Gold Is Still There!

in money •  10 months ago

Imagine it was 1937 and you stored your gold with someone… let’s call them Uncle Sam.

After about 20 years you told Sam that you’d like to see the gold and make sure it was still there. He said sure; you can come and take a quick look. And you did… and you were satisfied that it looked like the gold was still there.

Decades then went by… more than 40 years in fact… and you told Sam that you’d like to make sure the gold is still there.

He replied, “Sure, but you can’t count it or touch it or anything. You can just look through the window and see it is still there.”

“Oh, and another thing,” said Sam, “We get to select the person who can take a quick look.”

You’d start to get quite suspicious, wouldn’t you? It had been more than 40 years since you were even allowed to see the gold and more than 60 years since the last time Sam allowed you to count it.

“Who do you select to take a look for us?” you asked, eyebrows furrowed.

“Steve Mnuchin,” said Uncle Sam.

That is exactly what has happened with the gold supposedly stored by the US government in Fort Knox.

The last time the gold was even counted was in 1953. And the last time anyone was even allowed to take a quick peek at it was 1974!

And just this week, Treasury Secretary, Steve Mnuchin, went on behalf of the American people to take a quick look and confirm the gold is still there.

After all, who could you possibly trust more than Steve Mnuchin. The man who spent 17 years working in investment banking, most notably with Goldman Sachs, was a business partner with George Soros and was sued over his involvement with Bernie Madoff securities.

Yet, in the most nonchalant way possible, this week, Mnuchin quipped to an audience in Louisville, Kentucky, “I assume the gold is still there.”

And then, he mosied over to Fort Knox, walked in, walked out and tweeted…. And I kid you not, “Glad gold is safe.”

That’s it! He didn’t count it or check to see the books to see if it had been leant out to anyone, didn’t have some assays done to ensure it was actually gold and not an alloy.

None of that. He just took a quick glance to see there was some gold there. Good enough! No need to check again for another 50 years!

What else would you expect from a US federal government whose own auditors say their books have been completely unauditable for 20 years. Or how the Pentagram still can’t find over 6.5 trillion dollars.

So now, after nearly 50 years of nobody auditing the gold, one of the most untrustworthy people in the world took a gander and declared that everything is fine.

And the mouth breathing, government educated, fluoridated, chem-trailed, GMO’ed and vaccinated tax slaves in the US were too busy working three jobs even to notice.

We’d make more of a kerfuffle about the whole thing ourselves if it weren’t for the fact that the total amount of gold held in Fort Knox, if it truly is still there and still owned by the federal government, if sold today, would only cover the expenses of the US government for less than two weeks.

That’s right.

At today’s price of $1290, the total value of the gold holdings at Fort Knox, if they are really there (again, the only one who has seen the gold in the last half century is Steve Mnuchin) are worth about $200 billion.

In June, alone, the US government spent $429 billion.

So, if all the gold at Ft. Knox was sold, it’d cover about 14 days of expenses.

So, in terms of the importance of the gold holdings in the US government’s balance sheet, it is actually negligible.

Some, though, might say the gold held at Fort Knox is important if the US were to ever go back to a gold standard.

Well, for one thing, don’t hold your breath for that to ever happen.

If the US government put the US dollar on a gold standard that was managed by itself or by the Fed or Treasury to the extent that it was adopted in the classical sense it would bankrupt the government and/or severely tie its hands.

While this would be the best news possible for nearly everyone on Earth… What are the chances the US government would destroy itself on purpose? Not very likely.

And, even if it somehow did, it still wouldn’t be easy, nor necessarily very free-market.

It is hard to predict how they would do it if they did. That is, would they choose to have the dollar be backed by a weight in gold or would the gold price be fixed? Would the government erect state banks as it did before the Fed? Or would it redefine and use the Fed to regulate the exchangeability between dollars and gold? Or would it be the Treasury directly? Another way that has been discussed is to incorporate gold as a top tier asset under the latest Basel guidelines, which implies little difference in the analysis. Or they could create a Fedcoin backed by gold, and the token could rely on a program of some type of inflationism built into it.

But it’s not likely they would abandon fractional reserve banking altogether.

Whatever the case, if it is a government directive it is not likely to be “sound.” It is likely to be rigged. It is likely to tilt the playing field, as usual.

Some gold bugs, though, would point out that if the US were to somehow go back to a gold standard, the value of gold would likely have to increase dramatically.

As I pointed out, at today’s price of $1290 the total value of the gold holdings at Ft. Knox approaches $200 billion, but the total value of bank deposit liabilities held by the US commercial banking system is $11 trillion.

Its total reserves in dollar terms are $2.3 trillion. Maybe the geniuses at the Fed decide to revalue the gold according to those reserves. If so, the gold price might then be fixed at $15,614 per ounce. That might go a ways in resetting the system and supporting the $11 trillion in commercial bank liabilities. On the other hand, required reserves total the same value of the value of that gold today, at just under $200 billion (the rest are “excess reserves”).

However, that requirement might not reflect total outstandings in savings deposits, which in the US are closer to demand deposits than in other places.

To be sure, a requirement is hard to figure anymore at all because the relationship between reserves and total deposit liabilities died even long before the 2008 crisis.

The Right Way

The right way to do it would be to let the market determine the ratio based on total dollar supply, which approaches $13 trillion. These dollars could be set to be backed by gold in weight. The supposed holdings at Ft. Knox equates to 4.6 billion grams. So you could back each dollar by 0.00036 grams and let the market decide on the value of that dollar. But in practice, that ratio would not work and if it did it would be fixed and managed by the Fed.

Still, ultimately this would mean giving the public back control over the reserves of the banking system and I don’t see that in the cards any more than outright repudiation of the public debt.

Anyway, the main point is that the only ratio that would work would be the market determined one. Any other ratio would cause problems depending on if it were too high or too low. And to the extent the central bank tried to manage this ratio, it would continue to impose a boom-bust cycle.

So, to summarize…

We still have no idea if the gold is really still at Ft. Knox. Also, we would like the word of someone a bit more respectable than Steve Mnuchin to confirm it is still there. Like Dennis Rodman. Or even Honey Boo Boo.

But even if it is still there, the actual amount is meaningless in terms of US government spending and wouldn’t last the Empire two weeks to pay for all its wars.

And while the chances of the US government going back to the gold standard is about as close to 0% as you can get, even if it did, that still may not have great results if they continue on with fractional reserve banking and don’t allow the market to dictate the peg.

If they did, though, to back the total reserves with gold, gold would have to be valued at $15,614 per ounce. Or about 1,100% higher.

TDV’s Senior Analyst considers the true value of gold based on our shadow gold price to be between $2,000 and $3,000 right now, but this price assumes that gold remains an asset in the present system. If gold were to become money, this value would likely be considerably higher.

So, to conclude, if the US does not return to a gold standard it will have to continue to inflate the dollar to pay for an evermore indebted federal government. This continuation of inflation will quite soon lead to hyperinflation and the value of gold will rise dramatically. A rise of 1,000% or more, in nominal dollar terms, would be easily foreseeable.

And if they do return to a gold standard we would also see the price of gold rise dramatically… and possibly more than 1,000%.

Those are the only two options available, by the way.

Given those are the only two options and they both result in gold rising in value by potentially 1,000% or more… we would suggest you get some gold.

We’ve made our book, Getting Your Gold Out of Dodge, completely free to you, to give you the information you need to not only buy gold, but how and where to store it as well.

You can download this book, normally valued at $44.95, for free, HERE.

In the meantime, I am trying to think of someone more trustworthy than Steve Mnuchin, who could possibly do a quick check to make sure the gold is still there at Fort Knox. It’s too bad Richard Nixon, Charles Ponzi and all the players from the 1919 Chicago White Sox are all deceased.

Maybe we can get a hold of Bernie Madoff to just do a quick double check.

Then I’ll know that the gold is there for sure and we won’t need to worry about it for another 50 years.

Yeesh.

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Yo ,
Nice work sir

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That's good to know

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Feed the government!
Or was I looking for a different f word?

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It has. :) Good to see you're still posting here. Have you joined Steemit.chat yet?

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a photo would have been helpful

So, if all the gold at Ft. Knox was sold, it’d cover about 14 days of expenses.

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Pretty remarkable realization. Is there any worse investor than governments?

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drug addicts and gamblers.

Oh, so Steven Mnuchin said he is ok with the audit.

I think we should go to a Silver backed currency and because there is more of it it would be easier to set the value to $1. The price would also increase substantially which is what I want as a silver stacker but I think this fractional reserve system is just a terrible bubble-creating monster that just perpetualy creates more debt than anything. Or the US could do the smartest thing and through private companies purchase bullion with printed money and increase our reserve holdings and then collapse the current dollar and reset it once we have a majority of the available metal. Aim for Gold Silver Platinum and Paladium. But if that happened we would see Countries go to Nickel, etc. backed paper money or a blockchain token system which is I think where the globalists want it to go. Every single earning and every single purchase 100% tracked by the IRS which would make precious metals the black market currency sort of like Bitcoin was a few years ago. People would be using anything but blockchain money to purchase anything they don't want the government knowing about which would flip Bitcoin and Gold/Silver into a reverse paradigm. The metals are unmarked and simple, have an assay and a standard weight for bartering while the blockchain is our wages and our bills. Either way this whole Ft Knox thing is bullshit. I think the place is more likely to be filled with air or pure heroin than any precious metal. Not knowing what is inside is the only thing keeping the ignorant American masses calm meanwhile they know nothing about the Fed and even less about the tax code, or lack thereof. The people who think the US is rich because of our Gold reserves are truly stupif because it is much more likely to be our purchasing power, our Military-Industrial-Conplex, the Petro-Dollar and our political Empire that is keeping the USD viable. That and energy. If we lost one of these we would be back to the stone age getting paid in silver coins hand-poured by blacksmiths who shoes our horses and temper our shields.

The US treasury also has another 400 metric tonnes stored in the New York Federal Reserve banks vault.

The bank states on its website that depositors will receive back the same bars that the deposit as individual bullion are unique, but when Bundesbank withdrew 5 metric ton's in from the Reserve in 2013, the bars they received had been re-smelted.

This is because although the NY Federal Reserve offers free storage for bullion, but they are actually leasing out their customers bullion. Maybe something similar is happening at Fort Knox, I find it hard to believe that anyone with a brain would allow that amount of collateral to sit idle when it could be earning billions.

Did he weigh it too?

I think his actual words were.." the gold coins are still in the vault and the chocolate hasn't melted"

What Bernie Madoff wrote on twitter its lame and laughable

Of course in my opinion, if they could not allowed anyone but only one person to count and check the gold in the reserve, you don't me blame if I doubt. They should do it in a way like crypto where everyone in the community know exactly how many where left in the reserve. Transparency is the only answer to remove doubt from us (citizen).

hilarious, just hilarious....

Who else here ask themselves why cant we just get every body to use crypto then the fed and the elite will fall ?

IF THE GOLD WERE THERE THEY WOULD HAVE GAVE GERMANYS BACK!

Actually, most people are missing the nuance in his words. Saying the gold is "safe" is not the same thing as saying the gold is "there."

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Reminds me of that scene in the movie Marathon Man, between Laurence Oliver (Szell) and Dustin Hoffman (Levy). "Is it safe?" Too funny. We are deceived always but hopefully enough wake up to it all. The more one finds out about this world, and what's really going down on us, the more one needs a sense of humor.

Come on he's a banker of course we can trust him. Nothing suss there lol

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I following you

nobody in his right mind would believe in this whole crap. ti's all lies and deception. he should have taken a video with the date, and time showing that there is gold in fort knothing.

Thank for your information @dollarvigilante

A bar of gold plated tungsten looks and can feel/weigh like gold, but it's still tungsten. Ask the Germans a few years ago on one of the US to Germany shipments.

Hi,great post for a follow and upvote please follow and upvote my new account and my new post @syahrulbagus

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No

ah well, good thing that the gold is still there and that the dollar is no longer dependent on the gold standard...
The weird thing is, is that in most ordinary peoples minds the FIAT currencies are still linked to Gold because if they have to think about it (usually that is a process they are unaccustomed to and it hurts) they would realize that if it their precious money is not connected to gold then it is not connected to....
ANYTHING....

shit, that means... money is just thin air / smoke and mirrors ....

and then they would realize the only thing money is dependent on is their faith in the fact that it has value...

Nearly everything you do is of no importance, but it is important that you do it.

- Mahatma Gandhi

Great & thanks for sharing informative post

Don't forget the upvote to me

Do not forget that the USA was paid in gold by the Soviet Union in the 60s and 70s for wheat, corn etc.

And so to summarize further....we can now confirm there is a visible pile of gol....errrr.......Flexall covered tungsten through a 'window' at Fort Knox - um.

flex.jpg
Soopur Duper

Good information.i resteem your post always.

Sounds legit. Did he tweet a picture he got off Google Images under "lots of gold" too?

Very good info :) I personally believe that the price of gold can not be determined at this time. If banks can do everything freely, prices can not be set.

This post has been ranked within the top 10 most undervalued posts in the first half of Aug 24. We estimate that this post is undervalued by $38.49 as compared to a scenario in which every voter had an equal say.

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The Gold is inside?????????

I agree about the danger of fiat price collapse, but this does not mean that gold price will be hgher in future. Gold is basically useless except for making shiny decorations. Of course it is scarce and it was the universal symbol of money for many centuries, but that does not guarantee anything.

Gold price, as well as cryptocurrencies and fiat money, is backed by faith. Gold current inflation is low and can´t be hacked, and these properties are interesting, but that does not provide any guarantee either.

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Actually gold have good many industrial uses but isn't being used because of the price. But besides that the most important point is that you don't need a third party or tech to conduct a transaction with it. No money changer to rip you off isn't that great... Until cryptos is proven bullet proof I think gold still has its place at the top.

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The only physical property interesting for industrial uses that gold clearly surpass other metals is electrical conductivity. However really good electrical conductivity is only necessary in electrical contacts, and a really thin layer of a few atoms width is more enough in that case. Copper an aluminum are almost as good and much more abundant.

Yes, no third party is needed. But the same happens to every other precious metal or gemstone.

If there were a currency manufactured consisting of radioactive or toxic material; could ot be a transitory means of getting a backing change? The new "tokens" would be labor and environmental clean up.

Good post per usual. The deception over the vast majority of society continues, on money and its various potential forms, and most other subjects at hand out there. It is not exclusive to America but all countries.

Thanks for sharing! This is really informative!!

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Have a great day!

really laughed :D "And the mouth breathing, government educated, fluoridated, chem-trailed, GMO’ed and vaccinated tax slaves in the US..."

Its a paper world, the federal reserve admitted 5/6 years ago that they dont have any physical gold only paper certificates given to them in the way of government bonds, to print more crap paper as we know which is secured by ever increasing debt to the joe sheep public! we all should know the ponzi by now?

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Yeah thats how it works. The Fed buys bonds with interest attached so we use all the Income tax to pay back the interest on those perpetually made bonds and in turn they set the interest rates which attempt to prevent bubbles so the USD doesn't become worthless. The governments job is to dominate the world and force other countries to need USD to buy things that way it isnt just domestic paper. Supply and demand for USD is the only thing that makes t worth anything. But an ounce of silver is always an ounce of silver and thats why I keep stacking

I just look at his hot second wife ... LOL ... upvoted

Great read, I just bought some gold! Thanks for the info!

All governments lie - especially about the important stuff.
Any facts or figures coming out about gold is guaranteed to be a lie,
because it's too important for us mere plebs to know about.
Or maybe this is the one subject that is the exception, and we can trust them on this...? really?

Think anything else, is just naive, to be honest.

I am so interested to see every sentence you submit in this post, I am very useful to have read and see your postings, you have given me the latest knowledge and experience, I hope to keep abreast of you and will communicate and exchange information through this media , I hope you also think the same thing,Please permit to share this post ( Resteem), I hope you do not. Thank you... have a nice day.

Jeff, why do your eyes look like you are a heavy drinker?

Jeff's ability to read between the lines never ceases to amaze me. If nothing else the man has an uncanny ability to sniff out all the BS in the financial industry...

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True, now we have new era, new money. Bitcoin.

Trust in the system is at an all time low ...

Ask Germany if they think America still has gold reserves. They still can't seem to get there own gold back from the US after years of trying. However because I like this post - I will reluctantly sacrifice my valuable time and check on the gold for you... Will let you know ... :0

Congratulations @dollarvigilante!
Your post was mentioned in the hit parade in the following category:

  • Upvotes - Ranked 8 with 443 upvotes

Wow how silly this system is. It's amazing how they've been able to control everyone for so long. No wonder they try so hard to dumb down, poison, control, intimidate, create terror, silence, censor, and everything else they do. Most of it is just built into the system. I'm ready to try anarchy and free markets or at least a much, much smaller government with full transparency.

Mnuchin probably sent his wife to check it, but yes; Honey Boo Boo would have been​ a better choice!
Good post!

For what its worth they are doing a good job in fooling the masses to believe that there's more than enough gold to cover all their debts. May articles like these open the eyes of our fellow species, one at the time. For the best way out of this disaster is a veeeeeeeeery smooth transition.

This was a very good article and very well-written. It covers all the aspects of the FED and the gold. Awesome conclusion that gold will increase 1000%.

And if you're still concerned, I nominate myself @goldkey to do a visit to Fort Knox

I can take a four hour road trip.

hmmmmm
followed n upvoted...

Great article. Well, I grew up in Communism and not even Communists ever confiscated gold. This is my experience with risking my life getting out of the Communist regime, just to get to the land of the "free". http://www.worldsmostextremezipline.com/