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2 comments   Listen   Print   article:335186:26::0
In the Media

article imageOp-Ed: Is Fort Knox empty?

A recent article published by an independent news website suggests the world's central banks have sold off all their gold. Are their vaults empty, and if so, does this matter?
The article Are the Central Bank Vaults Empty? was published recently by Mathaba, the same site that predicted a nuclear false flag attack on the London Olympics, so both the reporting and any resultant analysis come with a big caveat emptor, but could this be true?
Check out this five and a half minute video of Congressman Alan Grayson asking the Inspector General of the Federal Reserve some embarrassing questions, then ask yourself where these missing trillions of dollars went.
Congressman Ron Paul and others believe the American dollar and all currencies should be backed by and be redeemable in gold. The argument these hard money advocates put forward is that fiat currencies are inherently untrustworthy because governments or central banks will always be tempted to print more in order to inflate away public debt, which among other things erodes savings, because many pension funds invest heavily in government bonds.
This argument has some merit, but the bottom line is that fiat money like credit (does anyone remember HP?) has been enormously beneficial to both businesses and consumers, but like any other useful implement, it can be misused. If you are suffering from a headache, taking a couple of strong painkillers may make you feel better, but taking the whole bottle...
So what if all the gold has been sold off to Chinese billionaires or such? Precisely, so what! That question was answered back in the 1920s by Major Douglas. Douglas was an engineer by profession, and was not the easiest of authors to understand, but a few years later, French-Canadian Louis Even published the answer in the form of a short story, Salvation Island, which even a child can understand, but not alas, our leaders.
The solution is that the power of gold is an illusion, or perhaps a delusion. Any sovereign government can issue its own credit, which is backed not by gold, silver, diamonds or any other substance held under high security in its central bank, but by its resources: land, raw materials, machinery, and most of all, its people.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com
article:335186:26::0
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