The Fed has Sold Half of all US Gold to Suppress Gold Prices

http://www.atimes.com/atimes/Global_Economy/JE06Dj06.html

This seems like a dumb idea from the Fed. Are they trying to destroy the dollar on purpose, or what?

 

I never knew they controlled the rights to our gold? Can someone shed more light on this?

 

Sure. That is why RP got the bill through in the 80s, to get the treasury to mint gold coins again.

Paul and some others have been fighting for an audit of the country's gold reserves. It hasn't been audited in decades IIRC.




Btw, the FED does some really strange things with gold, as far as marking to market and book value.

 

Are these the gold coins ?

How much gold is actually in them, though?

edit: 24k gold plated. WTH: The overall composition of the new Golden Dollar is 88.5% copper, 6.0% zinc, 3.5 % manganese, and 2.0% nickel. = 0% gold LOL

 

Ok, yeah Gary North covers gold and reserves in a recent article (great read, read it!)

 

Well, in short, yes. Since the debt is denominated in dollars, it is assumed by those least affected by inflation (the rich) that inflation is a perfect solution for getting out of debt.

Of course, if it looks like we're trying to get out of paying our bills, this puts additional pressure on the dollar because people start selling off bonds & treasuries.

 

I believe the FED has access to the gold because it was used as collateral for interest owed to it from the US Government. I'm not certain on this so don't be quoting me.

 

The US Government doesn't own interest to the fed, actually the fed pays congress the profits they make of loaning funds to banks.

 

I'm not 100% sure about this. I'll see if I can read up on it.

 

I think technically, the Fed only returns the interest received on government securities to the Treasury. It really depends on how you look at it. Just to give you some figures, the Fed's comprehensive income before distribution in 2007 was $38.71 billion. $991MM was paid out to member banks as dividends, $34.60 billion was paid to the Treasury, leaving $3.2 billion in surplus. So the money derived from gold (from leasing, they weren't sold) could've been used for expenses & distribution, or it could've gotten carried over.

 

Can someone explain why $991M was paid out to member banks as dividends. I know they get 6% a year as made by law, but it doesnt make since why the FED requires investment.

 

Good question for R2G. He's the resident FED expert.

 

1) When the Fed was established, it needed to be funded.
2) The stock gives banks voting rights.

FYI, you can still be a bank without having shares in the Fed.

I actually see no reason why the government doesn't get rid of the federal law that requires member banks to be stock holders.