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Selling Gold at Fort Knox Emerges as Next Big Question in Debate on Federal Debt Limit
The New York Sun ^ | May 17, 2011 | David Pietrusza

Posted on 05/17/2011 12:21:08 PM PDT by statestreet

NEW YORK — The next big question on the federal debt limit could be whether to start selling the government’s holdings of gold at Fort Knox — and at least one presidential contender, Ron Paul, has told The New York Sun he thinks it would be a good move.

The question has been ricocheting around the policy circles today. An analyst at the Heritage Foundation, Ron Utt, told the Washington Post that the gold holdings of the government are “just sort of sitting there.” He added: “Given the high price it is now, and the tremendous debt problem we now have, by all means, sell at the peak.”

(Excerpt) Read more at nysun.com ...


TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: 112th; debtlimit; fed; fortknox; gold; goldstandard; lunacy; nationaldebt; reserves; ronpaul; sellcalifornia; sellnewyork
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1 posted on 05/17/2011 12:21:16 PM PDT by statestreet
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To: statestreet
I think Ron Paul knows there isn't any more gold left at Ft. Knox...he is just trying to bait them into admitting it.
2 posted on 05/17/2011 12:24:52 PM PDT by broken_arrow1 (I regret that I have but one life to give for my country - Nathan Hale "Patriot")
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To: statestreet

What leads anybody to suspect there is still a substantial amount of holdings of gold at Ft Knox?

There’s a reason why the Federal Rrserve doesn’t want to be audited.


3 posted on 05/17/2011 12:24:59 PM PDT by Jonty30
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To: statestreet

Can’t sell what ya ain’t got...


4 posted on 05/17/2011 12:25:15 PM PDT by WKUHilltopper (Fix bayonets!)
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To: broken_arrow1

There is probably some, just not a lot.


5 posted on 05/17/2011 12:26:49 PM PDT by Jonty30
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To: statestreet

It would make good sense to sell that gold now while the price is in a bubble.


6 posted on 05/17/2011 12:28:13 PM PDT by babble-on
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To: statestreet

The gold is in a lock box....


7 posted on 05/17/2011 12:29:52 PM PDT by Sacajaweau
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To: babble-on

Well, since our currency is not back by precious metals any longer, would it cause any problems to sell off gold? Wouldn’t it be the same as selling off federal lands, or other federal assets, to try to trim the deficit?


8 posted on 05/17/2011 12:30:58 PM PDT by Dilbert San Diego
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To: statestreet

The Federal Govt. owns a lot of assets it should probably dispose of—and it could start with land.

In some western states, the Federal govt owns enormous amounts of land; over 80% of the land in Nevada; over 40% of California, Utah, Arizona, and New Mexico; over 50% of Oregon; & the list goes on.

I don’t think the founding fathers ever envisioned that much of any state’s land being in the hands of the federal government (or the state government for that matter).


9 posted on 05/17/2011 12:32:29 PM PDT by Brookhaven
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To: statestreet

Why “sell” the gold when fedzilla can just keep printing FRAUDS, destroying their value and screwing not only the nations holding US paper but all the rest of us with the same hyper-inflation.


10 posted on 05/17/2011 12:35:39 PM PDT by Dick Bachert (2012 CAN'T COME SOON ENOUGH FOR ME. HOW ABOUT YOU?)
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To: Sacajaweau

...in ALGORE’S closet.


11 posted on 05/17/2011 12:36:39 PM PDT by Dick Bachert (2012 CAN'T COME SOON ENOUGH FOR ME. HOW ABOUT YOU?)
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To: statestreet

Would be nice to have an audit of Fort Knox to determine it’s not gold plated tungsten stored there.


12 posted on 05/17/2011 12:38:38 PM PDT by Rebelbase
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To: statestreet

CUT SPENDING AND CREATE CONDITIONS FOR GROWTH AND STOP ****ING AROUND WITH THESE INSANE IDEAS!

LLS


13 posted on 05/17/2011 12:39:13 PM PDT by LibLieSlayer (THANK YOU PRESIDENT BUSH!)
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To: Brookhaven

I would be concerned that the powers that be today would sell USA land to any nation in order to distribute our wealth. Think China, Brazil and even Kenya.


14 posted on 05/17/2011 12:39:33 PM PDT by noinfringers2
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To: Brookhaven

Outstanding idea. We need to sell off those assets and it would make a great contrast to see the Left go nuts. Sell the acreage in open public auctions online.

We could also sell the rights to build nuclear power plants on military bases. Wouldn’t that skip a whole lot of rigamarole, etc.? Then just sell the “excess” energy back to the grid.

The ideas are endless. Do we really need Puerto Rico, US Virgin Islands, etc.? I’m not being facetious at all. What’s it cost to keep those places?


15 posted on 05/17/2011 12:40:59 PM PDT by 1010RD (First, Do No Harm)
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To: statestreet

The FEDS have no reason to be in the gold business. Sell it. All of it.


16 posted on 05/17/2011 12:43:05 PM PDT by youngidiot (Hear Hear!)
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To: statestreet
The question has been ricocheting around the policy circles today. An analyst at the Heritage Foundation, Ron Utt, told the Washington Post that the gold holdings of the government are “just sort of sitting there.” He added: “Given the high price it is now, and the tremendous debt problem we now have, by all means, sell at the peak.”

Yes, sell when the "peak" is at $1,500/oz. Then we can buy it back at when the "peak" is $5,000/oz!

Maybe we would be better off if we stayed within our budget, and moved toward a new gold standard instead.

17 posted on 05/17/2011 12:44:11 PM PDT by olezip
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To: statestreet
Great.
I can see it now.

$5 gold piece with Obama's face on it.

Think they'd sell?

BWAHAHAHAHAHAHAHAHAHAhahahahahahahaha! ! ! ! ! ! ! ! ! ! !

18 posted on 05/17/2011 12:45:12 PM PDT by grobdriver (Proud Member, Party Of No! No Socialism - No Fascism - Nobama - No Way!)
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To: grobdriver
$5 gold piece

Oh, wait.
That'd be, like, as big as my little finger nail...

19 posted on 05/17/2011 12:47:08 PM PDT by grobdriver (Proud Member, Party Of No! No Socialism - No Fascism - Nobama - No Way!)
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To: Dilbert San Diego
[ Wouldn’t it be the same as selling off federal lands, or other federal assets, to try to trim the deficit? ]

The federal government has no business owning any land in the States.. or any land at all.. even Washington D.C...

National Parks should be State Parks.. All State resources should be leased short term from the State..

Is the federal government a vassal of the States or are the States vassals of the federal government?..
THIS IS the current Civil War.. and will only be resolved when this question is answered..
This is the very thing that has made, and makes America different from every other government on this planet..

Who is in charge the States or the Federal government?..

20 posted on 05/17/2011 12:47:25 PM PDT by hosepipe (This propaganda has been edited to include some fully orbed hyperbole...)
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To: broken_arrow1
I think Ron Paul knows there isn't any more gold...

They said the same thing in the 1970's and when they opened up Fort Knox, there were thousands of tons of it.

The same thing would happen if they opened it up today.

If the government dumped a ton of gold on the market, the price would slump, and might slump hard, taking years to recover to anything close to current values, if it recovered at all.

It's a bad idea.

21 posted on 05/17/2011 12:48:41 PM PDT by Mr. Quarterpanel (I am not an actor, but I play one on TV)
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To: broken_arrow1; Stillwaters
I think Ron Paul knows there isn't any more gold left at Ft. Knox...he is just trying to bait them into admitting it.

Nonsense. The gold is in a lockbox, just like the social security trust fund.

22 posted on 05/17/2011 12:50:37 PM PDT by lonevoice (Where the Welfare State is on the march, the Police State is not far behind)
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To: statestreet

Very interesting.


23 posted on 05/17/2011 12:53:15 PM PDT by CPT Clay (Pick up your weapon and follow me.)
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To: Dilbert San Diego
Wouldn’t it be the same as selling off federal lands, or other federal assets, to try to trim the deficit?

I used to think that would be a good idea. But likely they would use the proceeds to keep paying the immense federal deadhead payroll that should be laid off instead.

24 posted on 05/17/2011 12:54:53 PM PDT by abb ("What ISN'T in the news is often more important than what IS." Ed Biersmith, 1942 -)
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To: statestreet
"Given the high price it is now, and the tremendous debt problem we now have, by all means, sell at the peak.”

PEAK? Those idiots haven't seen anything yet. Let QE-X fire up or even hint it's coming, and you will see a spike like nobody's business.

25 posted on 05/17/2011 12:55:35 PM PDT by Centurion2000 (On a long enough timeline the inflation rate for all fiat currencies approaches infinity.)
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To: olezip

Paging Ms. Galore...

26 posted on 05/17/2011 12:55:50 PM PDT by DTA (U.S. Centcom vs. U.S. AFRICOM)
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To: youngidiot

“The FEDS have no reason to be in the gold business. Sell it. All of it.”

How fitting...

HaHaHaHaHaHaHa


27 posted on 05/17/2011 1:01:38 PM PDT by phockthis
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To: babble-on

It would make better sense to have been secretly buying it with all the wasted TARP money.. QE 1 2 and 3 ,,,bailouts of GM etc.......after all we are the worlds Reserve currency...The 1st country that backs its currency with just about anything will own the worlds financial system


28 posted on 05/17/2011 1:03:49 PM PDT by M-cubed
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To: Dick Bachert

we should be buying all the gold with our phony money so at least when we start over wed have something to back it with


29 posted on 05/17/2011 1:08:10 PM PDT by M-cubed
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To: noinfringers2
The Fed HAD TO acquire the land as collateral for all the money we owe to foreign governments!...they know our paper will be worthless...
30 posted on 05/17/2011 1:11:10 PM PDT by M-cubed
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To: youngidiot

Better check your history...your name betrays you


31 posted on 05/17/2011 1:13:43 PM PDT by M-cubed
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To: hosepipe

well said!


32 posted on 05/17/2011 1:16:04 PM PDT by M-cubed
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To: M-cubed
Better check your history...your name betrays you

We went off of the gold standard. You think it's a good idea for them to hoard gold in Kentucky? Why?
33 posted on 05/17/2011 1:17:40 PM PDT by youngidiot (Hear Hear!)
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To: statestreet

if they allow the gold to be sold (assuming it’s still there...), then the progressives will do everything they can to sell it all.

then put us deeper into debt

DO NOT allow this.

the debt limit has been hit. stop looking under the cushion to fund more money for the next fix. stop spending. period.

they take in $2 trillion a year.

please... try to live within that meager budge /sarc


34 posted on 05/17/2011 1:31:58 PM PDT by sten (fighting tyranny never goes out of style)
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To: Dilbert San Diego
Wouldn’t it be the same as selling off federal lands, or other federal assets, to try to trim the deficit?

That's what irresponsible people do when they run up debt beyond their means to cover their debt. They sell assets. It's just a matter of time until they're broke and bankrupt.

35 posted on 05/17/2011 1:43:11 PM PDT by Cobra64 (Common sense isn't common anymore.)
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To: statestreet
Please correct me if I'm wrong re the $70 trillion worth of gold the US supposedly has; there was a report several years ago claiming that president Bill Clinton leased it to various countries in order to prop up the US dollar. Supposedly it was leased at the market price of the time for approximately $250/oz. Now due to the current price of gold the US can't afford to buy back those leases thus any idea of returning the US dollar to a gold standard backing is nothing more than a pipe dream. If all of that is true the only thing in this country that is of any value is our hard assets/resources. Not to discount any current offerings of the US labor force as an American asset but given the current direction the country is headed, that value is in decline as well.
36 posted on 05/17/2011 1:45:15 PM PDT by drypowder
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To: DTA
.


37 posted on 05/17/2011 1:47:22 PM PDT by Cobra64 (Common sense isn't common anymore.)
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To: statestreet

Here's to the gu-gu-gullibility of the American populous.

38 posted on 05/17/2011 1:50:58 PM PDT by CougarGA7
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To: broken_arrow1

That’s my theory too.


39 posted on 05/17/2011 1:52:10 PM PDT by kalee (The offences we give, we write in the dust; Those we take, we engrave in marble. J Huett 1658)
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To: broken_arrow1

I heard that the gold is there but it has been sold/pledged/leased to the Federal Reserve and therefor the Treasury, our nation, has no gold at all.


40 posted on 05/17/2011 1:59:58 PM PDT by NeoCaveman
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To: statestreet
This is one of the dumbest ideas I have heard in a long time.

We should DEFAULT on the debt and issue a new currency back by that gold.

41 posted on 05/17/2011 2:08:46 PM PDT by Mariner (War Criminal #18)
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To: statestreet
Of course, the implied assumption is that the government hasn't been selling the Ft. Knox gold. Judging by what happened to the price of gold during the Geeenspan years when gold essentially held its dollar price in the $350-$400 range, I would think this only would happen if there were a big seller looking to control the price in a narrow range. And there aren't many big sellers who might want to keep the gold price in a narrow range.

ML/NJ

42 posted on 05/17/2011 2:40:50 PM PDT by ml/nj
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To: broken_arrow1

klintoon gold plated tungsten bars.


43 posted on 05/17/2011 2:41:36 PM PDT by dusttoyou ("Progressives" are wee-weeing all over themselves, Foc nobama)
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To: statestreet

HMMMMMMM What would we sell when all the gold was gone?


44 posted on 05/17/2011 2:59:16 PM PDT by Venturer
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To: 1010RD

Good idea on the nuclear power plants. It also has the benefit of being a location with good security and infrastructure. Especially military bases in the middle of nowhere.


45 posted on 05/17/2011 4:07:22 PM PDT by tbw2
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To: broken_arrow1

Where is all the gold stolen from bank deposit boxes back in the 1933 timeframe?

http://en.wikipedia.org/wiki/Executive_Order_6102


46 posted on 05/17/2011 4:25:47 PM PDT by Dubya-M-DeesWent2SyriaStupid! (Allen West 2012 Make it happen!)
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To: statestreet; SunkenCiv; neverdem
Kind of like a gold-bug version of Beau Geste.

Cheers!

47 posted on 05/17/2011 4:26:24 PM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: statestreet
The idea of selling gold to pay off debt is a relic from the pre-Nixon era. In 1970 when Nixon closed the gold window to defeat an economic terrorist attack by France, The link between the dollar and gold was forever broken. We could hypothetically go broke even with the vaults of Ft Knox bursting with bullion, and no creditor could do anything about it.
48 posted on 05/17/2011 4:31:36 PM PDT by hinckley buzzard
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To: Brookhaven

50 Examples Of Governmant Waste


49 posted on 05/17/2011 4:34:30 PM PDT by Dubya-M-DeesWent2SyriaStupid! (Allen West 2012 Make it happen!)
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To: grobdriver
Yep. The tenth ounce $5 gold piece is just about that size.
50 posted on 05/17/2011 4:36:45 PM PDT by hinckley buzzard
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