Gold Missing From Fort Knox

Executive_Order_6102

On April 5, 1933, President Franklin Delano Roosevelt (FDR) signed Executive Order 6102. Possession of monetary gold by any individual, partnership, association or corporation in the U.S. was criminalized. Violation of Executive Order 6102 was punishable by a fine of up to $10,000 or up to ten years in prison, or both. [1]

In my memory I can remember a time when coins made of silver still circulated. Sometime in the 1960s, to my recollection, silver disappeared from coins such as the quarter and the dime.

In the 1990s I used to listen to shortwave broadcasts of a program called Radio Free America. The program was hosted by Tom Valentine. A frequent guest was my late friend and mentor, Sherman H. Skolnick. Tom Valentine had been connected somehow with a tabloid newspaper, the National Tattler, circa the 1970s.

How was one to keep the price of gold stable in the 1960s? FDR had taken gold from Americans to allow the “Federal Reserve” to print more of its legal tender notes. At that time each FRN (“Federal Reserve” Note) had to be backed by gold to the amount of 40 percent of the dollar. Confiscating gold from Americans and giving it to the “Fed” meant more dollars could be printed. [1] But in the 1960s, what with the cost of the Vietnam War and the “Great Society”, the price of gold relative to the dollar threatened to go sky high. Tom Valentine and someone named Edward Durrell claimed that “the gold from Fort Knox was secretly sold and sent to London by president Lyndon Johnson in 1967 and 1968 to keep the prices of gold stable.” [2]

Mr. Durrell suggested in the 1970’s that only 1000 tons out of the original 8,500 tons remained at Fort Knox, in Tennessee. There had been no audit of this gold reserve since 1950 and no concrete explanations for the same. “The gold stored at the Fort Knox is not called the Gold Reserve any more. It is called deep storage gold the implications of which are questionable.” Tom Valentine succeeded in pressuring a partial audit of Fort Knox. “There are suggestions that only a single vault was opened as a part of the audit and it did not have the expected amounts. Only some poor quality gold probably melted from the gold coins that were seized in 1934 was found.” [2]

In 1971, President Richard Nixon closed the “gold window.” That meant that holders of U.S. dollars in foreign lands could no longer trade them in for gold. The dollar became “free floating”, a postmodern dollar no longer pegged to gold. Nixon was “Watergated” out of office in 1974 and Gerald Ford of the Warren Commission, Nixon’s Vice President, took the top spot. President Ford had a slogan while in office: “Whip Inflation Now”, which had the clever acronym WIN. But still the inflation persisted, coincident to the dollar having been cut loose entirely from gold. Jimmy Carter was elected President in 1976 and he unfairly has been blamed for the “Stagflation” of the latter 1970s.

Which all goes to show there has been some “funny business” going on with gold.

Almost half of Germany’s gold resides at 33 Liberty St., the headquarters of the Federal Reserve Bank of New York, 80 feet below street level in a vault that sits on Manhattan’s bedrock… The hoard, amassed during Germany’s postwar boom, had never been subject to a published bar-by-bar physical review by its owners. (Background: Committed to the Tombs, Ersjdamoo’s Blog, August 8, 2015.)

In 2013 Germany decided it wanted its gold physically transferred out of the “Fed Fort Knox” in New York City and back to Deutschland. This repatriation of gold demand had been started by one Peter Boehringer, head of an asset management firm that invests his own money and that of clients in gold, silver, and mining stocks. Boehringer is also a founder of the nonprofit German Precious Metal Society. Boehringer’s Quixotic quest surprisingly gained traction in Germany. “The first breakthrough occurred in September 2012, when Germany’s Audit Court followed Boehringer with its own, similar demands.” [3]

Boehringer had become suspicious about the German gold actually being still there in the underground “Fed” gold vault in New York City. Germany’s Bundesbank decided auditing of the underground NYC gold had  not been according to common practice. But by the end of 2013 only a relatively measly 5 tons of gold had been returned to Germany. Further details can be found in a report from Bloomberg, published on February 5, 2015. [3]

The sporting men are consulting the hot sheets about whether the “Federal Reserve” will be raising rates in September. General opinion is that yes, the latest front-face icon for “Fed”, Janet Yellen, will announce the raising of rates. A minority of the hot sheets however are saying no, the rates will not be raised in September. Gamblers’ guesses on this center upon the September decision being related to how the economy is doing. But what if the “recovery” picture has nothing at all to do with the “Fed” raising rates? Russia and China have had enough of western banking, reported CNN in May 2015. The BRICS (Brazil, Russia, India, China, and South Africa) are building an alternative so they don’t have to go to the United States or the International Monetary Fund for any financial help. [4] It is a thing called competition which has entered, stage left. The “Federal Reserve” monopoly of issuing the undisputed world reserve currency suddenly finds an upstart competitor moved in down the block. And so the “Fed” raises rates to make its product more attractive to investors, and “economic recovery” yes-or-no hot sheet guesses amount to a smokescreen.

——- Sources ——-
[1] “Executive Order 6102”, Wikipedia, August 9, 2015.
[2] “How Much Gold Is In Fort Knox?”, by Herb Lazarus. August 28, 2006. http://www.articlecity.com/articles/business_and_finance/article_7015.shtml
[3] “Where Is Germany’s Gold? (Almost half of Germany’s gold is stored in vaults under the streets of Manhattan. Or is it?)”, by Vernon Silver. Bloomberg Business, February 5, 2015. http://www.bloomberg.com/news/features/2015-02-05/germany-s-gold-repatriation-activist-peter-boehringer-gets-results
[4] “Russia and China have had enough of western banking”, by Patrick Gillespie. CNN Money, May 4, 2015.

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About ersjdamoo

Editor of Conspiracy Nation, later renamed Melchizedek Communique. Close associate of the late Sherman H. Skolnick. Jack of all trades, master of none. Sagittarius, with Sagittarius rising. I'm not a bum, I'm a philosopher.
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