So, this morning, March 8, 1933, Americans received the news that all GOLD had to be turned in to the Fed. Didn't matter what is was, bullion or trinkets, you had to turn it in. The Fed promised it would be returned to you at the time that the banking crisis was over. Remember this is the Depression. The banks are in trouble because there has been a run on the banks. Banks traditionally had a 10% reserve of cash to handle customer cash demands. But, somehow, the remaining 90% was lent out and the demands exceeded the cash reserve. Therefore, everyone had to turn in the GOLD to assist with the emergency. Nobody, not the Fed or the banks, explained how or why the GOLD would circumvent the emergency. The price of GOLD meant that the cash you were given was not equal to the value of the GOLD. Who set the price of GOLD, none other than the Fed in the person of the Secretary of the Treasury and (hold the applause) the President...Franklin Roosevelt. How did they determine the price? Well, maybe they looked outside and it was a sunny day so let's make it $20 an ounce. Oh, it's raining today so maybe $25 an ounce. So, would you want to deal with a GOLD standard that had no standard? Essentially the value of money the very next day was not based on anything but the Fed determining value. And has been ever since. No GOLD was ever returned and in fact it was not until the 70's that the ban was lifted. Today the value of your money is set at the Fed level, which is unconstitutional. The Constitution does not allow the value of money to be set by the Fed, it only grants the Fed permission to coin money and value it. So they just print money and nobody know or cares what the standard is. Thus inflation is at the whim of the Fed.
Anyway, does anyone know where the GOLD is? Fort Knox? If it is in Fort Knox what is it being used for? We no longer place the value of a dollar as a certain amount of GOLD. So why does the Fed need to store our GOLD in Fort Knox? If it really is there.