by Bill Holter, Miles Franklin:
Some have asked the question, “Why does it even matter?” when it comes to whether we still have the gold in Ft. Knox or not. They say, “Who cares, nobody uses gold to settle trade anymore.” Even Ben Bernanke has testified (perjured himself) in front of Congress and said, “Gold is not money, it is an asset.” Based on this (il) logic it then goes that even if the vaults are empty it “doesn’t matter.”
Let me take you back to where this all started and to how we got here in the first place. It used to be (before the Federal Reserve was created) that banks could issue “currency” based on how much gold they had to back it. Then the Federal Reserve came along and played the same game, they issued dollars based on how many ounces they had stored. 1934 came along and the Fed couldn’t issue any more dollars because they didn’t have enough gold… no problem, just change the “value” of gold from $20 per ounce to $35 and money supply could be expanded by 75%.
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