Congressman Questions Fed, Treasury About US Gold

By: Tho Bishop

One of the pieces of legislation Ron Paul pushed while leading the Congressional committee overseeing monetary policy was a bill to audit the US gold reserves. As one may expect when dealing with the Fed, there has long been a general lack of transparency with America’s gold holdings. In fact, last year was the first time in over four decades that any member of Congress had been allowed inspect Fort Knox. 

At a hearing on the topic back in 2011, Dr. Paul explained while this matter was so important: 

Because the Government has for so long refused to provide substantive information on its gold holdings, it is not surprising that so much confusion abounds, both within and without the Government.

This gold belongs to the people, especially since much of it was forcibly taken from them in the 1930s, and the Government owes it to the people to provide them with the details of these holdings.

We would greatly benefit from a full, accurate inventory audit and assay with detailed explanations of who owns the gold and who is responsible for ownership, custody, and auditing. 

For the first time since Dr. Paul’s retirement from Congress, a member of the House has questioned the Federal Reserve and the Treasury about the Federal government’s handling of its gold reserve. 

In a letter yesterday addressed to Treasury Secretary Steve Mnuchin and Fed Chair Jerome Powell, West Virginia Congressman Alex Mooney asked the following questions:

1) Records in the archives of the historian of the U.S. State Department describe U.S. government policy in recent decades as aiming to drive gold out of the world financial system in favor of the Federal Reserve Note or Special Drawing Rights issued by the International Monetary Fund.

Is this still U.S. government policy toward gold? If not, what IS the U.S. government’s current policy toward gold?

2) I have heard complains that the U.S. gold reserve has not been fully audited for many decades, particularly as there seems to have been no acknowledgement of – or account for – “swaps” and leases of gold or arrangements for such to which the U.S. government has been a party.

Does the U.S. government, through the Treasury Department, the Federal Reserve System, or any other agency or entity, transact in gold or gold derivatives either directly or through intermediaries? If so, what are those transactions and what are their objectives?

3) Does the U.S. government undertake any transactions in gold or gold derivatives through the Bank for International Settlements, Bank of England, or other central banks or governments? If so, what are these transactions and their objectives?

Rep. Mooney also made headlines earlier this year for introducing legislation calling for the dollar to be re-pegged to a weight of gold. 

As he wrote in the Wall Street Journal at the time:

The current Federal Reserve system benefits elites. The gold standard is equitable and puts “we the people” in control of the money supply. That’s why it was part of America’s founding and has been a key to the country’s long economic success.

As President Donald Trump continues to disappoint with his central bank nominees, it’s nice to see a few voices in the swamp questioning the Fed. 

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