Letters to the Editor

Your views in 200 words or less

DEBT: What about the gold at Fort Knox?

Letter by Gary E. Lanphere, Fox Island on June 29, 2011 at 4:34 pm with 30 Comments »
June 29, 2011 4:34 pm

I am really confused about the fact that the government has more than 147 million ounces of gold stored in the depository at Fort Knox, Ky., and yet we have to borrow zillions of dollars to pay our bills.

I don’t know for sure, as I am not a mathematician, but I do believe that would amount to a pretty good chunk of change. Why can’t some of that not be used to help pay off some of our debts instead of having to borrow. Why is all of this gold being stored if it never going to be used? Why is the gold never mentioned as an asset that we have.

If anyone has an answer to any of my questions, please feel free to help me out.

Leave a comment Comments → 30
  1. aislander says:

    That gold is probably ALREADY being used as security to finance some wacky government spending program, and is, therefore, not available for the purpose you propose. Just a guess, but…

  2. Probably because the gold isn’t there. Ron Paul wants Fort Knox audited but hey, he’s just one guy.

  3. What does the gold in Ft. Knox have to do with anything? We left the gold standard completely in 1971. Fiat currency is funny money and only worth what we say it’s worth.

  4. theglovesRoff says:

    Sell it for $1500 an ounce and pay for the “stimulus” or obamacare.

  5. aislander says:

    The gold, beerBoy, is presumably an asset of a nation that is $14 trillion plus in debt (on paper: much more, in fact) and could be used (if not already spoken for) to reduce that debt. The gold standard is not relevant…

  6. Why would you want sell anything when can inflate you way out of debit?

  7. Misunderestimated says:

    Hopefully we will use the current economic insanity in this country as a reason to return our currency to the gold standard and restore our freedoms and way of life

  8. aislander says:

    I agree with you misunderestimated. We would not BE in this mess if the government had not so overreached; if we were still ON the gold standard; and if the Federal Reserve had not been created. You should read about the panic experienced by European nations at the thought that the U.S. government (specifically Congress) would be in control of its own currency. They considered that to be a huge threat to their own economies AND to the then-extant monarchies…

    I was just responding to beerBoy’s point, which was not relevant to the discussion…

  9. concernedtacoma7 says:

    After the libs destroy what is left of the dollar we are going to need that gold to buy stuff from China.

  10. LarryFine says:

    “Obama’s stash” … google it.

  11. Zillions? I figured it would be more like Bazillions by now.

  12. bobcat1a says:

    That gold wouldn’t even pay one year worth of interest on the national debt.

  13. I’m no genius on commodities, but if the United States sold off all of it’s gold, wouldn’t that put a huge amount on the market and lower the value of all the world’s gold? Isn’t part of the value based on the commodity availability?

    Much the same as oil. The price is controlled by the flow of the oil. If oil companies refuse to put it out on the market (remember the 1970s) people will pay whatever the price and will even wait in line.

  14. “That gold is probably ALREADY being used as security to finance some wacky government spending program,”

    Vietnam, Iraq, Afghanistan, Lybia, to name a few.

    “Why would you want sell anything when can inflate you way out of debit?”

    One problem with inflating our way out, is that China who is our biggest trading partner has tied the value of their currency to ours.

    “After the libs destroy what is left of the dollar we are going to need that gold to buy stuff from China.”

    The dollar had been stable throughout our countries history until Republican president Nixon took the country off the gold standard. The value of the dollar fell 40% vs. gold under GWB, and Limbaugh exclaimed how shrewd GWB was for devalueing the dollar, thereby benefiting U.S. mfg by making our exports cheaper.

    My how opinions change when the other party is in charge!

  15. concernedtacoma7 says:

    Unless we owned all of the gold producing land in the world why would we want to tie our currency to a commodity whose price we could not control? If we were tied to gold, and a country amassed gold and sold it all at once like the author suggests, we would be in a world of pain.

    And prove to me the dollar has been stable until Nixon. You cannot.

    Inflation chart, you are wrong. What metric will you use? Tie it to gold? That does not effect the American consumer unless you are a jeweler. Oil? CPI?

  16. ai – the original meme of the letter is absurd. And yet you slap my hand for going off on a slight tangent as though I strayed off some sacred path. You seem to have absorbed LF’s viral need to put me down any and every time you think you can manufacture a chink in my argument.

    And yes, fiat currency is relevant to the current economic crisis.

  17. Of course, Ft. Knox holdings were created by Executive Order 6102 by FDR in 1933. The order criminalized the possession of monetary gold by any individual, partnership, association or corporation. The rationale was that hoarding was making the Depression worse.

  18. http://forexa.org/the-day-the-dollar-died.html

    For the Adult readers of the News Tribune forums that want to know something more than partisan rhetoric and blame shifting

  19. LarryFine says:

    It seems, bB, that you have started tailgating Ai,. and when gentley corrected you whine about it… grow up.

  20. The rightists continue to prove they have absolutly no understanding of economics what so ever.
    Now considering they are spoon fed everything they say, or they just make it up, why would anyone think the rightwing can solve the nations problems?
    (remember it was the GOP that got us here)

  21. aislander says:

    I agree that the scrip we now call the dollar is a reason for our current economic problems, but the gold in Ft. Knox is so far removed from THAT discussion (forty years) that your relating it to this thread in that regard makes no sense to me…

  22. Soundlife says:

    Anyone attempting to blame our current economic difficulties on either of the two major political parties is simply establishing their ignorance on a billboard for the amusement of everyone else.
    Both the republicans and democrats in elected office have done this to us oveer the past four decades.
    Nixon’s taking us off the gold standard enabled politicians to “create” money from thin air, beginning the fall of the dollar.
    Both parties have created “programs” to spend money we didn’t have in return for the all mighty vote on election day.
    Until the public awakens to economic reality and refuses to remain a party drone on election day, we will not even begin to address America’s economic decline.
    Each of us sentences our grandchildren to a life of dependence and servitude by continuing with the status quo from either party.
    I would recommend that we all begin to wake up or begin to study Chinese…

  23. concernedtacoma7 says:

    KARD- that link you posted was not informative.

    How could the left experiment with keynesian economic theory if our monetary supply is limited? Can’t have your cake and eat it too.

    You also ignore that just a few years later the greatest economic boom in history happened. Would that have been possible?

  24. Thanks for the laugh concerned7, an op-ed in the rightwing murdock owned WSJ.
    Very amuzing to say the least.

    Once again my point is not only correct but backed up by the very rightists it condems.
    Thanks conserned, I can always count on you.

  25. concernedtacoma7 says:

    Of course you simply ignore the content. You can hide and deflect. You are still, and always, wrong.

    Non-partisan poll cited.

  26. “LarryFine says:
    June 30, 2011 at 8:00 am
    It seems, bB, that you have started tailgating Ai,. and when gentley corrected you whine about it… grow up.”

    Can anyone tell me what this comment has to do with the gold in Fort Knox?

  27. LarryFine says:


  28. Concerned7,
    Of course you know that op-ed means it was the writers opinion.

  29. I feel the so called gold in Fort Knox is another fairy tale, just like the tooth fairy.Has anyone you know ever seen this stash?I wouldn’t trust our Govenment for any assurance that the gold existed.

We welcome comments. Please keep them civil, short and to the point. ALL CAPS, spam, obscene, profane, abusive and off topic comments will be deleted. Repeat offenders will be blocked. Thanks for taking part and abiding by these simple rules.

JavaScript is required to post comments.

Follow the comments on this post with RSS 2.0