Is there still any gold in Ft. Knox? Representative Ron Paul (R-Texas) wants to know, and he told Kitco News he plans to introduce a bill next year calling for an audit of United States gold reserves.
According to Paul, the last “decent audit” was done 50 years ago. In the early 1980s Paul tried to get an audit done when he was on the gold commission. Fifteen of the 17 members of the commission voted not to conduct an audit.
In recent months there have been a number of rumors about Ft. Knox, among them: that it no longer contains any real gold; That it contains only a small portion of what is claimed; and that many of the bars that are there are made of lead or some other material and only coated in gold.
“If there was no question about the gold being there, you think (the Federal Reserve) would be anxious to prove gold is there,” Paul said.
Paul has long been an advocate of sound money and has fought against the Federal Reserve. His efforts last year to get legislation passed to audit the Federal Reserve was ultimately watered down by Congress to the point of uselessness.
“I don’t think the Federal Reserve should exist — it would be best for Congress to exert their responsibilities and that is find out what they are doing,” Paul told Kitco News. “It is an ominous amount of power they have to create money out of thin air and being the reserve currency of the world and be able to finance runaway spending whether it is for welfare or warfare; it seems strange that we have been so complacent not to even look at the books. If we knew exactly what they were doing, who they were taking care of, there would be a growing momentum to reassess the whole system.”
The Federal Reserve has created bubbles and inflation and today’s dollar is worth about 2 cents compared to the 1913 dollar, Paul said.
Paul said he would like to see gold and silver legalized as currency to give people a choice of using the Government’s fiat currency or real money.
Of course, the Federal Reserve can print money to infinity which isn’t backed by anything. This makes wars possible and has led to the devaluation of the dollar and is “legal” theft of the individual by the government.