Gold in Ft. Knox

[investor]

[quote=urbanrealtor][quote=Arraya][quote=urbanrealtor]

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Well, it’s kind of a silly question. It’s like saying since I am not currently in Europe, what does it matter if my suitcase full of Euros is still in my safety deposit box.

RP is just anticipating a forced relocation to Europe and wants to know what we are working with[/quote]

No.
I go to Europe a lot so that would matter to me more.
This is a bit…more…disconnected from me.
But to recap, the concern is that we will need the gold shortly?
What would be the circumstances for needing it?[/quote]
Good question. If there was a melt down (a severe lack of confidence) in the fiat currency of the US/ world, only commodities with inherant value would matter.(Food, oil for your car, gold/silver for trading purposes.) The fiat currency would be worth nothing. Think of germany in the 1920’s. Gold/silver has served this purpose many times in the past under just such circumstances. Having gold reserves also matters when countries get together to dicuss banking concerns. It’s kind of like discussing military concerns and having air craft carriers parked all over the world versus having no military might. The intimidation value can be subtle but real.

[XBoxBoy]

[quote=urbanrealtor]Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?[/quote]

The view of many economists (and probably Ben Bernanke) is that there is no need to have gold in the vault. Others would counter that having all this gold helps provide credibility (and stability) to the dollar. If there was a serious dollar crisis, the fed could always use the gold to help shore up the dollar. Think of it as an insurance policy, you don’t really need it, until you need it.

There’s another possible explanation, because it’s there. Openly selling it could be too disruptive to the markets. It would be hard to estimate what reaction the markets would have to an announcement that the fed was selling all it’s gold. So, no one wants to chance the reaction from selling it all. (Although presumably you could sell it off slowly and quietly and I think that’s what Ron Paul thinks has happened.)

Personally, I think it’s a combination of reasons. But as far as I know, there isn’t an overwhelming reason to have that gold in the vault since we don’t back our dollars with it.

Just my two ingots.

[XBoxBoy]

[quote=urbanrealtor]Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?[/quote]

The view of many economists (and probably Ben Bernanke) is that there is no need to have gold in the vault. Others would counter that having all this gold helps provide credibility (and stability) to the dollar. If there was a serious dollar crisis, the fed could always use the gold to help shore up the dollar. Think of it as an insurance policy, you don’t really need it, until you need it.

There’s another possible explanation, because it’s there. Openly selling it could be too disruptive to the markets. It would be hard to estimate what reaction the markets would have to an announcement that the fed was selling all it’s gold. So, no one wants to chance the reaction from selling it all. (Although presumably you could sell it off slowly and quietly and I think that’s what Ron Paul thinks has happened.)

Personally, I think it’s a combination of reasons. But as far as I know, there isn’t an overwhelming reason to have that gold in the vault since we don’t back our dollars with it.

Just my two ingots.

[XBoxBoy]

[quote=urbanrealtor]Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?[/quote]

The view of many economists (and probably Ben Bernanke) is that there is no need to have gold in the vault. Others would counter that having all this gold helps provide credibility (and stability) to the dollar. If there was a serious dollar crisis, the fed could always use the gold to help shore up the dollar. Think of it as an insurance policy, you don’t really need it, until you need it.

There’s another possible explanation, because it’s there. Openly selling it could be too disruptive to the markets. It would be hard to estimate what reaction the markets would have to an announcement that the fed was selling all it’s gold. So, no one wants to chance the reaction from selling it all. (Although presumably you could sell it off slowly and quietly and I think that’s what Ron Paul thinks has happened.)

Personally, I think it’s a combination of reasons. But as far as I know, there isn’t an overwhelming reason to have that gold in the vault since we don’t back our dollars with it.

Just my two ingots.

[XBoxBoy]

[quote=urbanrealtor]Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?[/quote]

The view of many economists (and probably Ben Bernanke) is that there is no need to have gold in the vault. Others would counter that having all this gold helps provide credibility (and stability) to the dollar. If there was a serious dollar crisis, the fed could always use the gold to help shore up the dollar. Think of it as an insurance policy, you don’t really need it, until you need it.

There’s another possible explanation, because it’s there. Openly selling it could be too disruptive to the markets. It would be hard to estimate what reaction the markets would have to an announcement that the fed was selling all it’s gold. So, no one wants to chance the reaction from selling it all. (Although presumably you could sell it off slowly and quietly and I think that’s what Ron Paul thinks has happened.)

Personally, I think it’s a combination of reasons. But as far as I know, there isn’t an overwhelming reason to have that gold in the vault since we don’t back our dollars with it.

Just my two ingots.

[XBoxBoy]

[quote=urbanrealtor]Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?[/quote]

The view of many economists (and probably Ben Bernanke) is that there is no need to have gold in the vault. Others would counter that having all this gold helps provide credibility (and stability) to the dollar. If there was a serious dollar crisis, the fed could always use the gold to help shore up the dollar. Think of it as an insurance policy, you don’t really need it, until you need it.

There’s another possible explanation, because it’s there. Openly selling it could be too disruptive to the markets. It would be hard to estimate what reaction the markets would have to an announcement that the fed was selling all it’s gold. So, no one wants to chance the reaction from selling it all. (Although presumably you could sell it off slowly and quietly and I think that’s what Ron Paul thinks has happened.)

Personally, I think it’s a combination of reasons. But as far as I know, there isn’t an overwhelming reason to have that gold in the vault since we don’t back our dollars with it.

Just my two ingots.

[Arraya]

[quote=urbanrealtor][quote=Arraya][quote=urbanrealtor]

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Well, it’s kind of a silly question. It’s like saying since I am not currently in Europe, what does it matter if my suitcase full of Euros is still in my safety deposit box.

RP is just anticipating a forced relocation to Europe and wants to know what we are working with[/quote]

No.
I go to Europe a lot so that would matter to me more.
This is a bit…more…disconnected from me.
But to recap, the concern is that we will need the gold shortly?
What would be the circumstances for needing it?[/quote]

I think it would matter a little bit if your money went missing.

Ok, let me put it another way. Simply, he thinks, it is, possibly, not there, as in, missing, stolen, etc… Which given the revolving door of criminals through out the decades of financial officialdom, is not completely insane. Second, he sees the inevitable collapse and loss of confidence of our monetary system, as they all do, eventually. Failures, crises and collapses are built into monetary systems. Gold really does not fix that, though as goldbugs erroneously think. I guess, in a way he wants to see what the countries assets are in case of calamity.

[Arraya]

[quote=urbanrealtor][quote=Arraya][quote=urbanrealtor]

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Well, it’s kind of a silly question. It’s like saying since I am not currently in Europe, what does it matter if my suitcase full of Euros is still in my safety deposit box.

RP is just anticipating a forced relocation to Europe and wants to know what we are working with[/quote]

No.
I go to Europe a lot so that would matter to me more.
This is a bit…more…disconnected from me.
But to recap, the concern is that we will need the gold shortly?
What would be the circumstances for needing it?[/quote]

I think it would matter a little bit if your money went missing.

Ok, let me put it another way. Simply, he thinks, it is, possibly, not there, as in, missing, stolen, etc… Which given the revolving door of criminals through out the decades of financial officialdom, is not completely insane. Second, he sees the inevitable collapse and loss of confidence of our monetary system, as they all do, eventually. Failures, crises and collapses are built into monetary systems. Gold really does not fix that, though as goldbugs erroneously think. I guess, in a way he wants to see what the countries assets are in case of calamity.

[Arraya]

[quote=urbanrealtor][quote=Arraya][quote=urbanrealtor]

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Well, it’s kind of a silly question. It’s like saying since I am not currently in Europe, what does it matter if my suitcase full of Euros is still in my safety deposit box.

RP is just anticipating a forced relocation to Europe and wants to know what we are working with[/quote]

No.
I go to Europe a lot so that would matter to me more.
This is a bit…more…disconnected from me.
But to recap, the concern is that we will need the gold shortly?
What would be the circumstances for needing it?[/quote]

I think it would matter a little bit if your money went missing.

Ok, let me put it another way. Simply, he thinks, it is, possibly, not there, as in, missing, stolen, etc… Which given the revolving door of criminals through out the decades of financial officialdom, is not completely insane. Second, he sees the inevitable collapse and loss of confidence of our monetary system, as they all do, eventually. Failures, crises and collapses are built into monetary systems. Gold really does not fix that, though as goldbugs erroneously think. I guess, in a way he wants to see what the countries assets are in case of calamity.

[Arraya]

[quote=urbanrealtor][quote=Arraya][quote=urbanrealtor]

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Well, it’s kind of a silly question. It’s like saying since I am not currently in Europe, what does it matter if my suitcase full of Euros is still in my safety deposit box.

RP is just anticipating a forced relocation to Europe and wants to know what we are working with[/quote]

No.
I go to Europe a lot so that would matter to me more.
This is a bit…more…disconnected from me.
But to recap, the concern is that we will need the gold shortly?
What would be the circumstances for needing it?[/quote]

I think it would matter a little bit if your money went missing.

Ok, let me put it another way. Simply, he thinks, it is, possibly, not there, as in, missing, stolen, etc… Which given the revolving door of criminals through out the decades of financial officialdom, is not completely insane. Second, he sees the inevitable collapse and loss of confidence of our monetary system, as they all do, eventually. Failures, crises and collapses are built into monetary systems. Gold really does not fix that, though as goldbugs erroneously think. I guess, in a way he wants to see what the countries assets are in case of calamity.

[Arraya]

[quote=urbanrealtor][quote=Arraya][quote=urbanrealtor]

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Well, it’s kind of a silly question. It’s like saying since I am not currently in Europe, what does it matter if my suitcase full of Euros is still in my safety deposit box.

RP is just anticipating a forced relocation to Europe and wants to know what we are working with[/quote]

No.
I go to Europe a lot so that would matter to me more.
This is a bit…more…disconnected from me.
But to recap, the concern is that we will need the gold shortly?
What would be the circumstances for needing it?[/quote]

I think it would matter a little bit if your money went missing.

Ok, let me put it another way. Simply, he thinks, it is, possibly, not there, as in, missing, stolen, etc… Which given the revolving door of criminals through out the decades of financial officialdom, is not completely insane. Second, he sees the inevitable collapse and loss of confidence of our monetary system, as they all do, eventually. Failures, crises and collapses are built into monetary systems. Gold really does not fix that, though as goldbugs erroneously think. I guess, in a way he wants to see what the countries assets are in case of calamity.

[blahblahblah]

[quote=urbanrealtor]I know the usual libertarian tropes about precious metal standards and I am not interested in that discussion now.

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Maybe since it was paid for by the people, the people should know whether it is still there or not. I know that sounds crazy and all, but I think that’s the gist of it.

[blahblahblah]

[quote=urbanrealtor]I know the usual libertarian tropes about precious metal standards and I am not interested in that discussion now.

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Maybe since it was paid for by the people, the people should know whether it is still there or not. I know that sounds crazy and all, but I think that’s the gist of it.

[blahblahblah]

[quote=urbanrealtor]I know the usual libertarian tropes about precious metal standards and I am not interested in that discussion now.

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Maybe since it was paid for by the people, the people should know whether it is still there or not. I know that sounds crazy and all, but I think that’s the gist of it.

[blahblahblah]

[quote=urbanrealtor]I know the usual libertarian tropes about precious metal standards and I am not interested in that discussion now.

My questions is this:
Since we don’t currently have a gold or silver standard, what is the importance of gold in long term government storage?

I am not arguing. Its a serious question and I would like to hear actual views on it.[/quote]

Maybe since it was paid for by the people, the people should know whether it is still there or not. I know that sounds crazy and all, but I think that’s the gist of it.

[Author]

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