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

[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.”

[Mr. Quarterpanel]

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.

[lonevoice]

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.

[CPT Clay]

Very interesting.

[abb]

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.

[Centurion2000]

"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.

[DTA]

Paging Ms. Galore...

[phockthis]

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

How fitting...

HaHaHaHaHaHaHa

[M-cubed]

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

[M-cubed]

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

[M-cubed]

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...

[M-cubed]

Better check your history...your name betrays you

[M-cubed]

well said!

[youngidiot]

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?

[sten]

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

[Cobra64]

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.

[drypowder]

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.

[Cobra64]

.

[CougarGA7]

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

[kalee]

That’s my theory too.

[NeoCaveman]

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.