Gold was confiscated from every american citizen in the 1930's under the guise of getting the impoverished people out of the great depression. Since we are no longer on the gold standard since 1971, why is all that gold still supposedly sitting in Fort Knox? What do they need it for anymore? Shouldn't it have been redistributed to the citizens when we moved to a Fiat currency? Thanks!
2007-07-05 18:27:15 · 9 answers · asked by nullvalu 2 in Social Science ➔ Economics
haha.. earfulofb.s. that's why i used the word "supposedly"
2007-07-05 18:39:47 · update #1
Although the US seized, confiscated or exapropriated gold in the 1930, it did so at the going rate for gold at the time. The gold was bought and paid for. Sure, 50 years later the price of gold skyrocketed. But there are all kinds of things I wish I had 50 years later. Given a choice, I would probably choose some land in downtown LA or NY purchased in the 30's.
What are you suggesting? If you are suggesting that this gold should be sold back to the people at the going price then I am with you. As far as I am aware, current production of gold meets current demand for gold. The problem is that the world governments hold sufficient similar holdings of gold to destroy the price of gold if they dumped it on the market. That would bankrupt current mines and bring current gold production to a halt. World governments have had different policies, but in general they slowly sell off some of their gold holding to make a bit of money. The US dumping all of its gold into the market could set a nasty world government panic.
2007-07-05 19:10:22 · answer #1 · answered by JuanB 7 · 1⤊ 0⤋
A good question that I have never heard before. Gold is now just another metal like copper or lead. I don't know why the government wants to keep a big stock of it. It has nothing to do with the money supply or the financial health of the US. The government could sell our gold, and use the revenues either to increase government services (for example, pay for social security) or reduce taxes. Note that if it is sold to foreigners in exchange for dollars this would strengthen the dollar in international markets.
One remote possibility is that the government is keeping the gold in the unlikely event that the US wants to intervene in international currency markets to prop up the dollar. Since 1971, the US government has rarely done this. The US has been content to let market forces of supply and demand set the international value of the dollar. However, if it wanted to do so, the only thing the government can sell to to buy dollars is gold.
Other countries hold stocks of dollars, Euros, or yen to do this. They sell dollars in exchange for their own currency to boost the value of their currency. It makes no sense for the US to do that, i.e. sell dollars in exchange for dollars. Something else would have to be sold such as gold.
2007-07-05 18:54:36 · answer #2 · answered by Robert 3 · 1⤊ 1⤋
Look at any US curency. You won't find anywhere that it is backed by gold.
Before all the gold was turned in, the little paragraph on the face side said, "This note legal tender and is redeemable in gold at any Federal Reserve Bank."
Now it says, This note is legal tender for all debts public and private."
Its an IOU not backed by anything. People don't trade money, they trade numbers. I doubt if there is enough gold in the world to back every currency of every country. That's just insane.
We live, work, and then die all on credit. There is no money, Since the Constitution states gold would be the standard for "money", what do think we have now.
Ferns...Federal Reserve Notes.
2007-07-11 13:05:18 · answer #3 · answered by GRUMPY 4 · 2⤊ 0⤋
If another country refuses to accept Dollars the US Treasury can pay in gold.
2007-07-09 23:00:41 · answer #4 · answered by Keith 6 · 0⤊ 0⤋
How do you know if all the gold is in Fort Knox?
2007-07-05 18:36:11 · answer #5 · answered by Anonymous · 1⤊ 0⤋
All my gold is on my wifes finger , supporting a huge clear stone.
What a waste of money that was.
I should have bought a sports car instead :-D
2007-07-12 05:30:24 · answer #6 · answered by I♥U 6 · 1⤊ 0⤋
well, would you want china or usa taking ship loads of gold and shipping it across major oceans. its not only costly and has risks of going down in the ocean. come on, theres better things to question than whether gold is here or there because you dont have a piece in it.
2007-07-06 09:18:34 · answer #7 · answered by Anonymous · 0⤊ 1⤋
you just want some one to give you gold!!! you know it! admit it!!
2007-07-13 03:16:26 · answer #8 · answered by jess 3 · 0⤊ 0⤋
Well I wish that I had $17.4 billion!......I know I would be having one hell of a party here at my house if I did!.....LOL!
2016-05-19 04:46:31 · answer #9 · answered by Anonymous · 0⤊ 0⤋