Federal Reserve Notes Are Backed By Gold


Retraction: After many quite personal attacks on my character, it has been pointed out to me that the “gold” in question is pledged to the Federal Reserve specifically as collateral, meaning that the Treasury must pay the contract if the Federal Reserve calls in the “collateral”. I don’t mind being wrong, and will always endeavor to correct such mistakes. But I must say the abuse is intolerable (in the comments below) from what are supposed to be the good guys; “the people”. This gives little hope of our future as an organized group of people. I apologize for being tricked by this misleading writing, and hope to correct that here:

Here is a comment from Walter Burien, correcting my error:

The report Clint sent out was a trap he fell into after certain circumstances of reporting changed to hide the assignment of the Treasury gold to the FR.

Most would not have caught the word play for misrepresentation now revised in the reports including maybe myself if I looked for the first time now. Being that I looked over a decade ago, that is why I caught it.

In reference to Clint: “This is the problem with most Americans today.” and that is 99% not accurate in reference to Clint.

He has done what 1 out of a million would do and that is take the time and have the intelligence; fortitude; and will to “look”. We all get caught in traps from time to time. You should not diminish him for having done so…

Note 19 on page 101: “Notes to the Financial Statements” and line item values listed.

Page 102. The key phrase is the last sentence:

“All of the Department of the Treasury’s certificates issued are payable to the Federal Reserve banks.”

Being gold certificates issued by the Treasury, the word “payable” means payable in gold.

Now I did notice they are doing something differently then they were doing in 1999. They are now “floating” the certificates back and forth between the federal reserve member banks redeemable in dollars and foreign currency. There is no physical gold that changes hands, just the paper certificates. I mentioned to look at the 1999 Federal AFR being the wording and the swaps of certificates were not being done then and there was no word play. The “gold was pledged to the Federal reserve by “gold certificates” to do what they do. If the Federal Reserve called up those certificates, the FR got the gold in redemption of those certificates.

As I mentioned I put out a CAFR1 post eight years ago on that point and Opps, the gang had to cover their asses in extended word play and the new certificate swaps to blur what they did in the “give up” of the gold by certificates issued at $42 oz.

Hell probably hit the fan when the full Congress and the Senate realized what had been done and thus implemented the gold certificate swaps to generate money for the Treasury.

If the Federal Reserve had ever “called up” the original certificates issued and took possession of the gold, the Treasury would not have had the ability to profit off the gold certificate swaps. The treasury would no longer have the gold in their possession to do so. I note the gold certificates is a VERY small percentage of the value listed in the Federal Reserve’s AFR.

Being that I now have had to focus on this issue, I now understand the play push to audit the Federal Reserve “members” of if which done would collapse the Federal Reserve’s participation of and from member banks. It was used as a pressure point to accomplish several points. One to force the FR into taking on more US Debt between the members (as the increase is noted in both the FR and Federal Government’s AFR report’s notes) and also probably to force the ability to use the gold certificates (never redeemed for the physical gold) through in and out swaps in trade mandating return of the certificates (owned by the FR) on call where the “Treasury” directly benefited from that activity.

–Walter

***Note that Walter alludes to the most important aspect here: the collusion – not competition – between the Federal Reserve and the Treasury. And the gold, of course, can’t just be ignored. It is the peoples wealth pledged without acquiescence to contract.

.

And here was the original post:

It is always good to know that the sacrifices I’ve made and the endless hours of research I’ve done don’t just fall on deaf ears…

I received an email a couple of days ago from a reader of my blog, who went above and beyond the call of duty to verify the research in my recent videos, not just taking it at face value. If only all of us did this with each others research, we would no doubt have a whole lot less confusion in our search for “truth”.

Besides my gratitude, I would also offer this man my highest accommodation of valor (if I had one) for taking the time to not only find the Comprehensive Annual Financial Reports (CAFR’s) I mentioned, but to read them and link them in his email.

Thank you, sir!

I’d like to share that email here…

“John Smith” wrote:

————————
–Begin excerpt–
————————

Fact: The Federal Reserve Notes are backed by gold.

Yes, you read that right. The Federal Reserve notes are backed by gold.

Hitler (Joseph Goebbels) was right when he said, “If you repeat a lie enough times, people will believe it (paraphrase).”

I know what you are thinking. OK, John. Prove it.

If you look at page 453 and 490 of  the 2009 Annual Financial Report of the Federal Reserve (CAFR) you will see there actually is collateral held against Federal Reserve Notes. This means the money we use is backed by something.

(LINK – http://www.federalreserve.gov/boarddocs/rptcongress/annual09/pdf/ar09.pdf)

What is it backed by?

There is the Gold Certificate Account (The Fed has the gold and the Treasury has the certificates.)

How much gold?

$11,037,000,ooo. worth of gold. This can also be found on page 61 of the Federal Government’s CAFR.
(LINK - http://www.gao.gov/financial/fy2010/10notes.pdf)

How many (troy) ounces (of gold) is backing the Federal Reserve Notes? On page 62, the last paragraph reads:

“Gold is valued at the statutory price of $42.2222 per fine troy ounce. The number of fine troy ounces was 261,498,900 as of September 30, 2010, and 2009. The market value of gold on the London Fixing was $1,307 and $996 per fine troy ounce as of September 30, 2010, and 2009, respectively. Gold totaling $11.1 billion as of September 30, 2010, and 2009, was pledged as collateral for gold certificates issued and authorized to the FRBs by the Secretary of the Treasury. Gold certificates were valued at $11.0 billion as of September 30, 2010, and 2009, which are included in Note 19—Other Liabilities. Treasury may redeem the gold certificates at any time. Foreign currency is translated into U.S. dollars at the exchange rate at fiscal year-end. The foreign currency is maintained by various U.S. Federal agencies and foreign banks.”

 

How much money (Federal Reserve Notes) is in circulation?

All of that hard and easily liquidated currency is known as the M0 money supply. This includes the bills and coins in people’s pockets and mattresses, the money on hand in bank vaults and all of the deposits those banks have at reserve banks. According to the Federal Reserve, there was $908.6 billion in the M0 supply stream as of July 2009.

(LINK –  http://www.federalreserve.gov/releases/h41/20090730/)

What is the real value of the Federal Reserve Notes?

This can be viewed 2 ways (statutory value or market value).

Let’s do some calculating:

The statutory price of gold is $42.2222 per ounce. The Fed is holding 261,498,900 ounces of gold This equals to $11,041,058,855.58 ($11 billion). There is $908,600,000,000 ($908 billion) in circulation. According to the statutory price of gold, the dollar is worth $.012 (Just over 1 cent per dollar).

The market price of gold is $1,307.00 per ounce. The Fed is holding 261,498,900 ounces of gold. This equals to $341,779,062,300.00 ($341.7 billion). There are $908,600,000,000 ($908 billion) in circulation. According to the market price of gold, the dollar is worth $0.37 (37 cents per dollar).

(Note: The average market price of gold is actually over $1,600 for November)

I guess the dollar really isn’t worth a dollar (in gold).

Warning: My lack of funds are being compensated by my knowledge.

———————-
–End excerpt–
———————-

Again, my congratulations to John for taking the initiative to research and verify the facts (instead of just insulting the messenger).

.

–Clint Richardson (realitybloger.wordpress.com)
–Monday, November 21, 2011

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101 Comments

  1. Martin

     /  November 21, 2011

    “Warning: My lack of funds are being compensated by my knowledge.” Hilarious. A nice bit of due diligence there, Mr. Smith. I will enjoy times of great pleasure using these equations to inform my government loving family & friends.

    Reply
    • t-bagg

       /  November 22, 2011

      There is a lot more than $908 billion dollars. Why did the FED take the M3 off of their public website 7 years ago? Because they knew they were going to be printing a lot of dollars out of thin air.

      Also, if it is backed by gold, why can’t I trade in dollars for gold at the bank?

      This article is stupid… theoretically the FED caould have one ounce of gold on hand and you could still claim that the dollar is backed by gold. But if I cant trade in dollars for gold, the argument is moot.

      Reply
      • Ok. So we pretend the gold isn’t there. That’s the answer?

        Why such resistance to this printed report? I don’t understand.

        And again, we are talking about printed paper/coins.

        Reply
        • People seem to forget that the dollar’s barter exchange value has been circulated for decades and hundreds of trillions of dollars worth of products and commodities have changed hands through the use of dollars every decade. The fact that the dollar is “just” an exchange barter tool since 1963 has not changed.

          Does anyone thing the massive expansion of the economy would have taken place using gold as the barter tool over the same time period?

          Individual’s assets in 1955 were rather sparse and bare compared to the individual’s assets today. Inflation has taken root over the last 20 years due to the spiral of run-away growth and the effect of greed and unethical oppertunity applied from and due to the boom periods were cash flowed as king and he who could cheat the other guy first walked with the kingdom of the booty. (within government expansion the before mentioned was done quite well)

          The ethical and honest were pushed to the shadows to be ignored and the greedy opportunists walked with the booty and became the power base who now called the shots.

          Per gold, what we are seeing at this time is the culmination of the “50 year plan” . People in general are not to bright. The public owns percentage wise very little gold. In 1963 / 64 when we went off the gold and silver standard, the 50 year plan began. The commercial banks; large international families; and a few countries started the focus and organized effort to buy all of the gold each and every year. Hundreds of tones per month as they manipulated to keep the price low.

          Come 1990 they were very successful in their focus and plan. I would estimate their stockpile of gold increased by over 20,000 tons AND they did so right up until 2000 getting the gold at an average price of $134 to $175 per oz.

          When looking at gold the parties mentioned above would own over 80% of the physical gold and the general population less than10%.

          Well, it does not matter if you own all the gold in the world, if you can not unload it in barter for other commodities or property the value is nil.

          So, here we go with 2001 and the stage is set and the play begins. Circumstances are forced to create fear; the sky is falling; economic doom and gloom come 2008; the propaganda begins to condition many with Parrot sound-bite conditioning to belittle the dollar and “gold is what is needed as the barter tool with ever increasing fever”.

          Again, the general public is not to bright. Those commercial banks; large international families; and a few countries with gold hovering in the $1600 to $1800 per oz pricing are standing on a potential profit of over 1000%. They can not sell tens of thousands of tons of gold, what they own, that 90%of what is held by them on the open market or gold would plummet down to $10 per oz over-night, possibly to $5per oz.

          The volume of actual “physical” gold sales taking place at these levels is very light compared to what has been stockpiled by the cartel.

          What you will see take place over the next two years is the promotion by the cartel to make the public believe “it is essential to have a gold backed currency”. The parrots will be saturated with sound-bites to Parrot away screaming and demanding a gold backed currency. Circumstances will be created to bring the fear level to the brink.

          Then in 2014 or possibly 2013, the Powers-That-be, will say: We have heard your cries and we must in good consciousness yield to your demands, so here is your gold backed currency… Bait; Hooked; landed; and fried.

          ** Now the cartel will have the liquidity ** to unload what they have stockpiled for 50-years as the county obtains the physical gold to back the currency… 1000%+ profit locked in and the public now becomes the bag-holder.

          After the conversion is complete and the horde unloaded, then the collapse in gold prices begins (2015-16), with the true and real collapse of the dollar now backed by the quickly diminishing value of gold.

          The 50-year plan is complete. The wealth transfer accomplished for the cartel, and the public will be screaming and looking at who to point the finger of blame upon.

          The only one to blame in reality will be themselves for so easily being masterfully entertained by Bait; Hooked; landed; and fried.

          Break the conditioning! Look at “who” owns all of the gold. That old adage: “He who owns all of the gold makes the rules” applies and believe me, you DO NOT WANT them making the rules.

          But then suicide is on the rise now a day…

          Sincerely,

          Walter Burien – CAFR1

          .

          Reply
  2. You failed to mention all the money created on computers of the banks..money that has never been created any other way and does not physically exist..

    The writer thanks the commenter for his work..hum why would the writer have not already done that work before writing. Why would the writer need someone else to do it after the fact?

    And it is so funny that there is not even enough gold to even back up the money they claim exists in circulation?

    Plus it is known that fort knox is empty.. No cameras have been allowed in since they emptied it so no one can know it s empty. Long ago requests to view the gold and film it were always granted.. But for very many years now to completely refuse to let anyone verify the the gold actually exists..

    Because it does not exist..thats why

    Reply
    • You immediately insult me and draw a red herring argument about the money in computers. This article is obviously not about anything but Federal Reserve Notes in circulation. Why insult me?

      Since you obviously don’t know of my work, it isn’t correct for you to say I didn’t provide the source. Why go out of your way again to try and discredit me, even though the reports are right there for you to read? Why the ad hominem attack?

      What makes you say there is’nt enough gold to back up the money? If you had read the report, you would see that it is also backed by foreign currency, Special Drawing Rights (SDR’s), various securities, and other investments. But you didn’t read the reports, did you?

      You, sir, are a perfect example of a “useful idiot”, the very person who promotes mythology instead of fact.

      And as far as Fort Knox being empty, what does that have to do with this article? Did I say the gold was in Fort Knox? No.

      Do you have any proof whatsoever that Fort Knox is indeed empty?

      No. You just rely on speculation and hearsay.

      In short, sir, you are the problem with America.

      -Clint Richardson-

      Reply
    • Chris Smith

       /  November 22, 2011

      “Plus it is known that fort knox is empty.. No cameras have been allowed in since they emptied it so no one can know it s empty. ” how do you know it is empty if no one can know?

      Reply
      • How can you say it is empty if you don’t know?

        Reply
        • OzzieThinker

           /  November 22, 2011

          Mr Richardson

          The point very clear. Currently your readership are trying to determine whether the federal reserve notes are theoritically backed by “theoretical” gold or real gold. As an appendix srutiny on the current lack of transparrency as to the Fort Knox gold reserves is being presented to potentially validate negative outcomes as to “theoritical” gold.

          The general concern as concensus seems to be (in relation to this specific thread) that theoritical gold might indeed turn out to be no gold. The the children’s parable “The Emporer With No Clothes” catptures the overall concern.

          To remedy, the precise value of the pegged gold would need to be audited along with satisfactory evidence of its existance for the purposes attributed, along with a complete audit of all reserve notes issued. This would satisfy the skeptics. Though it would not satisfy the obvious conflict from backing a set monitary unit against a fluctuating commodity. Mind you, they do say every gold cloud has a silver lining. If the gold rate peaks $5,000 an ounce, maybe, just maybe the swindlers will have left enough in the coffers to cover your FR notes. And at that point I’ll swap my meager 20oz stash for 100,000 crisp ones bruuuuuheaaahhh ;-)

          Reply
  3. Joe Mabton

     /  November 22, 2011

    Well, when Bond was fighting Goldfinger-at least it was there then!

    Reply
  4. Clint:

    I can see how you were sucked in. The text on page 61:

    Gold is valued at the statutory price of $42.2222 per fine troy ounce. The number of fine troy ounces was 261,498,900 as of September 30, 2010, and 2009. The market value of gold on the London Fixing was $1,307 and $996 per fine troy ounce as of September 30, 2010, and 2009, respectively. Gold totaling $11.1 billion as of September 30, 2010, and 2009, was pledged as collateral for gold certificates issued and authorized to the FRBs by the Secretary of the Treasury. Gold certificates were valued at $11.0 billion as of September 30, 2010, and 2009, which are included in Note 19—Other Liabilities. Treasury may redeem the gold certificates at any time. Foreign currency is translated into U.S. dollars at the exchange rate at fiscal year end. The foreign currency is maintained by various U.S. Federal agencies and foreign banks.
    ————————-
    WJB: Look at an older Federal AFR (1999). The word change they did above was a misdirection to hide what they did.

    The way it is used above is a word play tactic. The treasury can “redeem” the gold certificates but as is the “pledge” made in 1964, redeemed for the benefit of the Federal Reserve (if the Federal Reserve calls in their “payment” marker made in 1964 that is)

    They correctly noted on page 101 Note 19 the gold certificates as a “Liability” of as it is in direct definition a “Payment Due”
    —————————

    On page #102 it says:

    International Monetary Liabilities and Gold Certificates

    The Exchange Stabilization Fund (ESF) was created to contribute to exchange rate stability and counter disorderly conditions in the foreign exchange market. The Secretary of the Treasury is authorized to deal in gold, foreign exchange, securities, and instruments of credit, under the exclusive control of the Secretary of the Treasury subject to the approval of the President. The dealings of the ESF are to be consistent with U.S. obligations to the International Monetary Fund. Gold Certificates are issued in nondefinitive or book-entry form to the Federal Reserve banks. The Government’s liability incurred by issuing the Gold Certificates, as reported on the Balance Sheet, is limited to the gold being held by the Department of the Treasury at the legal standard value established by law. Upon issuance of Gold Certificates to the Federal Reserve banks, the proceeds from the certificates are deposited into the operating cash of the U.S. Government. All of the Department of the Treasury’s certificates issued are payable to the Federal Reserve banks.
    ————
    WJB; It is good to see the US Treasury gets “proceeds” from the gold trading activity done by the FR based on the FR’s ownership of the certificates, but again as noted all certificates on the “physical gold” is “payable” to the “Federal Reserve banks” as pledged to the FR in 1964 as payment to them to do what they do.

    The Federal Reserve was not paid in dollars to do what they do, they were paid in Gold. All of the gold held buy the US Treasury was pledged to the Federal Reserve by gold certificate at $42 “as payment” “TO THEM” to do what they do.

    Federal reserve notes are NOT backed by gold. The Federal Reserve was paid (stole) the gold within that pledge “to do what they do.” They can “cash in” and collect payment at any time.

    Walter Burien – CAFR1

    Reply
    • when all the food is gone one Lbs. of my dry foods will cost about a pound of gold or you can eat the silver and gold that you saved ? and as far as the dollar its parity is equal to the German mark after the war Remember

      Reply
      • aubreyfarmer

         /  November 22, 2011

        Try taking a couple of hundred pounds of potatoes with you to the gas station and say fill it up. Gold has in the past and will continue in the future to be a medium of exchange. The intrinsic value of gold is respected around the globe, so whether or not gold is appreciated by you does not matter as long as it is appreciated by billions of others.

        Reply
        • Intrinsically, yes – as does any other commodity, stone, plant etc. But the price of gold is set by the bank fixing in London, so its value is false in most trades, based on false scarcity.

          Reply
  5. “John Smith” has left you with a misleading article as Walter pointed out the value of the currency is not based on gold reserves to simplify the above the gold is the property of the private federal reserve and to say that the value of the dollar is tied to is either intentionally misleading or plain old fashioned incompetence.

    Reply
    • I didn’t suggest that the value of the currency was based on gold. Not once. Never. I simply was pointing out that a hell of a lot of gold is held as collateral for printed FRN’s. Why is that such a crime?

      Reply
  6. Kent

     /  November 22, 2011

    If gold was worth $42.2222 an oz in the past and it is now worth $1307 an oz then the US dollar has devalued by 3096% against gold since that time in the past.

    Reply
    • Not quite. This was simply a contract between two corporate entities in collusion to profit off that gold as collateral with the value pledged at that price.

      Gold is not sound money as long as the price is fixed daily by Rothschild banking interests in the cit of London.

      I was simple trying to point out that the gold is there and lots of it.

      Reply
  7. PAUL LEO FASO

     /  November 22, 2011

    Why bother with defining the Federal Reserve Note as it relates to gold or its fluxuating exchange rate? Simply attach the Federal Reserve Bank assets in a class action lawsuit for the theft by deception and fraud they have criminally committed for the last 100 years. Follow the link below on how to stop financial sodomy in America.
    Google: CLASS ACTION LAWSUIT AGAINST THE FEDERAL RESERVE BANK

    http://www.zerohedge.com/print/365866

    Reply
  8. CalDre

     /  November 22, 2011

    The above email displays a profound misunderstanding of both (1) what it means for a currency to be “backed by” an asset, and (2) the statutory framework of the Federal Reserve Banks.

    First: to say a currency is “backed by” an asset, means you can go to the issuer of the currency (in this case, the Federal Reserve Banks (FRBs)) and exchange the currency for the asset backing it. For example, prior to the “Nixon Shock” (http://en.wikipedia.org/wiki/Nixon_Shock#The_Shock), one could exchange a $1 Federal Reserve Note (FRN) at a FRB for 1/35th an ounce of gold. But now, you cannot exchange your FRN for anything except another FRN (see Section 16(1) of the Federal Reserve Act (FRA) (http://www.federalreserve.gov/aboutthefed/section16.htm)). That is, you do not have the right to obtain any gold in exchange for your FRN. Thus, the FRN is backed by nothing.

    Second: the FRBs *do* have limitations on their ability to print currency (whether a physical note or electronically) under the Federal Reserve Act (commercial banks also have limits on their ability to create new currency, but this is imposed in a different manner via reserve requirements). In particular, Section 16(2) of the FRA (http://www.federalreserve.gov/aboutthefed/section16.htm). This section requires the FRBs to provide collateral for the printing of any FRNs, which collateral may consist of a number of enumerated items, including gold certificates.

    Now, finally, to close the loop: what is the nature of the gold certificates valued at $11 billion on the FRBs’ balance sheet? Under the Gold Reserve Act of 1934 (http://www2.econ.iastate.edu/classes/econ355/choi/1934jan30.html), all gold and gold certificates then held by the FRBs was surrended to the US Treasury, and as a receipt, the Treasury issued new gold certificates to the FRBs. Hence, at this juncture, the FRBs no longer owned any gold (but still held it for the Treasury in a custodial capacity) but did own these new gold certificates. But here is the rub: the FRBs do not have the right to convert these gold certificates into gold. Instead, they can only exchange these gold certificates for new gold certificates (similar to how you can only exchange FRNs for new FRNs). Moreover, the Treasury can demand these gold certificates at any time, and in return, all the FRBs can do is decrease the number of FRNs assigned to the Treasury’s account (see Note 4(b) on page 500 of the FRB’s 2009 Annual Report). Morever, these gold certificates are not transferable by the FRBs. Hence, these gold certificates are totally without any market value (rendering the attempt to “convert” the $11 billion into the current market value of hundreds of billions of dollars fatuous) , except for one (intended) purpose: going back to Section 16 of the FRA, these gold certificates may be used as collateral for the printing of FRNs. In other words, in 1934, the Treasury nationalized all of the gold of the FRBs, but issued them (worthless) gold certificates which the FRB could then use as collateral for the FRNs then in circulation (absent this gimmick, the system would technically have broken, as the FRA *does* require FRNs to be backed by collateral, but it is all very circular, since this collateral consists of either these fake gold certificates or, for simplicity, government debt, which government debt in turn is payable only in FRNs).

    Thus, to say that FRNs are “backed by gold” demonstrates a profound misunderstanding of the nature of FRNs, the rules for printing new FRNs, and the nature of the Treasury’s gold certificates held by the FRBs.

    Reply
    • Again, my apologies for using the word “backed” instead of “collateralized”.

      I agree. I know. I understand. I make mistakes. And I’m sure you do too.

      Thanks for the info if you are sincere in giving it and not just trying to tear me apart.

      Reply
      • “collateralized” … with the root word being “collateral”

        yah, That’s not any better. Good luck to you …
        … check out http://www.zerohedge.com

        Reply
        • Not any better? It’s fact!

          Reply
        • Page 453 (Federal Reserve CAFR)
          9B. Statement of Condition of the Federal Reserve Banks, December 31, 2009 and 2008
          Supplemental Information—Collateral Held against Federal Reserve Notes:

          Federal Reserve notes outstanding. . . . . . . . . . . . . 1,080,987

          Collateralized Federal Reserve notes. . . . . . . . . . . . .887,846

          Collateral for Federal Reserve notes (In Millions):

          Gold certificate account . . . . . . . . . . . . . . . . . . 11,037
          Special drawing rights certificate account . . . . . . . . . 5,200
          U.S. Treasury securities and enterprise debt securities1 . .858,607
          Other eligible assets . . . . . . . . . . . . . . . . . . . .13,002
          Total collateral . . . . . . . . . . . . . . . . . . . . . .887,846

          Now, are you going to tell me there is no gold collateralizing the dollar, Mr. Zero Hedge? Or would you like to insult me further with nothing to back it?

          Reply
        • @realitybloger, A gold certificate is not the same thing as gold bullion. (it’s a counterfeit instrument not backed by gold!) Try to grasp Walter’s musical chairs analogy(s).

          “there is no gold collateralizing the dollar” … only paper gold!

          Reply
          • Once again, you offer no proof. The certificates represent the physical gold, and will be paid with that gold when called in. If you have an official source to dispel what is reported in this CAFR, then please bring it forward (and only if)…

            Reply
  9. Just Read: The Creature Of Jekyll Island.

    Reply
  10. Dan

     /  November 22, 2011

    Did I miss something here? When Nixon took us off of the gold standard on August 15, 1971, this made the dollar nonconvertalbe to gold at least for the common person. The dollar’s value floated in value until it finally settled on a valued and more common trade commodity oil. This is where we got the term ‘petrodollar’.
    If US money (FRN) was tied to the gold standard there would be no opposition to other countries using gold or dollars, but there is. Recently eastern countries one by one quit using the dollar and switched to euros or gold for oil and one by one we have watched them taken over and fall. The most recent has been Lybia and the final to fall will be Iran until ‘all ships sail in the same direction’. At that point the banksters will cash in their dollars for gold or land or water, which ever is more valuable at the time.
    It appears that the new banking ideal is to create ‘bubbles’ of one type or another and break them at just the right time. The most recent is the gold bubble. Upset the paper money and people worldwide run to gold, inflate the value of gold and people buy more gold, inflate it beyond it’s reasonable limit, break the bubble and cash in. This is white collar legal robbery plain and simple. How many times do you have to see it before you get it? It’s the perfect crime, it’s no ones fault, no one goes to jail and the the more greedy you are the richer you get. I can’t wait to see what the world will look like when all the bubbles have been broken.

    Reply
    • My greatest fear is that many people will be left holding gold when the bubble pops, and no one to sell it to accept corporations eager to buy.

      Again, “backed” should be replaced with collateral, though they are the same. Government collateralized the printed dollar with gold.

      Reply
    • PAUL LEO FASO

       /  November 22, 2011

      GOOGLE THIS; CLASS ACTION LAWSUIT AGAINST THE FEDERAL RESERVE BANK

      re; zerohedge.com/print/365866

      The bubble is about to break using the R.I.C.O. Act

      Reply
  11. mrgneiss

     /  November 22, 2011

    Doesn’t “backed by gold” imply that some entity can actually exchange US dollars for gold? Of course not an individual but some foreign nation? But since Nixon closed the gold window in 1971 – no individual, entity, country has been allowed to exchange dollars for gold. So there is the claim the dollar is backed by gold, but no one can exchange dollars for gold – so the claim is worthless.

    So that’s like me going to the bank and claiming I have 100 acres of farm land available for collateral – and asking them to expand my money supply through a loan or line of credit – but then I tell them the 100 acres however is off-limits and can’t be touched – imagine their response!

    So obviously you have not thought this through, or are, as you accuse the poster above, just a useful idiot for the FED/coporate oligarchy.

    Also, why can there be no audit of Fort Knox? The GAO for example goes to great lengths to audit every bullet, tire and chair in hundreds of military bases throughout the US and the world – yet they can’t go to the bother of auditing what is perhaps one of the US’s most valuable assets that is sitting neatly stacked all in one place? Pretty much everything the government owns is audited at least every couple of years, and we have the census of the whole US every ten years………..and yet we haven’t had a thorough audit of Fort Knox for over 50 years? No audits are allowed of the FED?

    Reply
  12. DDearborn

     /  November 22, 2011

    Hmmm

    Even if the FED did have 260 million ounces of gold on hand the dollar currently has essentially zero value. Why because the FED and treasury has well over 25 TRILLION THAT IS RIGHT, 25 TRILLION DOLLARS CURRENTLY CIRCULATING!!!! No they didn’t print that many. They did it electronically of course. People the dollar is dead, it has no value and is backed by nothing in relative terms. Quoting early 2009 is great when your trying to pull the wool over peoples eyes. The FED has issued nearly 20 Trillion since then. Hello people wake up!!!

    Reply
    • I can’t agree. The dollar is backed by you and your property, and everyone else in America. It is the good faith and credit of the United States. And it has basically purchased the entire world economy, corporate stock, foreign currency, real estate, etc.

      Thus, for something that is so worthless, it sure has bought a lot of things!

      Reply
  13. Grey

     /  November 22, 2011

    No response to Walter Burien’s awesome reply Clint? Maybe you’re doing your due diligence as I write this? This is a perfect example of why it is wise to sit on and think about the information we receive before letting it loose into the world. Federal Reserve notes, apparently, are NOT backed by Gold. This is the problem with most Americans today.

    Reply
    • Grey:

      The report Clint sent out was a trap he fell into after certain circumstances of reporting changed to hide the assignment of the Treasury gold to the FR.

      Most would have caught the word play for misrepresentation now revised in the reports including maybe myself if I looked for the first time now. being that I looked over a decade ago, that is why I caught it.

      You not in reference to Clint: “This is the problem with most Americans today.” and that is 99% not accurate in reference to Clint.

      He has done what 1 out of a million would do and that is take the time and have the intelligence; fortitude; and will to “look”. We all get caught in traps from time to time. You should not diminish him for having done so.

      Per your statement of: “This is the problem with most Americans today.” that applies to the 999,999 Americans out of a million who do not look and are maintained in a mesmerized state of soundbite conditioning through masterful entertainment (good and bad) dished out by their controllers, and that IS NOT Clint.

      I think you will find the following communication I sent to Clint today informative:
      ——————————————–

      Clint:

      I note: as I have noted in the past: The Federal Reserve is a “Private” association of bank members similar to the Boy Scouts. The Boy Scouts complete an AFR each year for the Boy Scouts. They do not and can not produce an AFR for all of the members (every Boy Scout family) that is a member of the Boy Scouts. #1 that would be an impossibility. #2 if they tried they would loose all of their members and then the Boy Scouts would be a private association with few or no Boy Scout members.

      As noted in my last reply, now I know the true motive behind the: “Audit the Federal Reserve” (threat to audit the members) play.

      Walter Burien – CAFR1

      __________________________

      Referenced “Last Reply”
      __________________________

      Clint:

      Note 19 on page 101: “Notes to the Financial Statements” and line item values listed.

      Page 102. The key phrase is the last sentence:

      “All of the Department of the Treasury’s certificates issued are payable to the Federal Reserve banks.”

      Being gold certificates issued by the Treasury, the word “payable” means payable in gold.

      Now I did notice they are doing something differently then they were doing in 1999. They are now “floating” the certificates back and forth between the federal reserve member banks redeemable in dollars and foreign currency. There is no physical gold that changes hands, just the paper certificates. I mentioned to look at the 1999 Federal AFR being the wording and the swaps of certificates were not being done then and there was no word play. The “gold was pledged to the Federal reserve by “gold certificates” to do what they do. If the Federal Reserve called up those certificates, the FR got the gold in redemption of those certificates.

      As I mentioned I put out a CAFR1 post eight years ago on that point and Opps, the gang had to cover their asses in extended word play and the new certificate swaps to blur what they did in the “give up” of the gold by certificates issued at $42 oz.

      Hell probably hit the fan when the full Congress and the Senate realized what had been done and thus implemented the gold certificate swaps to generate money for the Treasury.

      If the Federal Reserve had ever “called up” the original certificates issued and took possession of the gold, the Treasury would not have had the ability to profit off the gold certificate swaps. The treasury would no longer have the gold in their possession to do so. I note the gold certificates is a VERY small percentage of the value listed in the Federal Reserve’s AFR.

      Being that I now have had to focus on this issue, I now understand the play push to audit the Federal Reserve “members” of if which done would collapse he Federal Reserve’s participation of and from member banks. It was used as a pressure point to accomplish several points. One to force the FR into taking on more US Debt between the members (as the increase is noted in both the FR and Federal Government’s AFR report’s notes) and also probably to force the ability to use the gold certificates (never redeemed for the physical gold) through in and out swaps in trade mandating return of the certificates (owned by the FR) on call where the “Treasury” directly benefited from that activity.

      Walter

      Reply
      • CORRECTION: Paragraph 2 in my reply to Grey. It says:

        “Most would have caught ”

        And it should have been:

        “Most would NOT have caught ”
        ———–

        Damn,

        That was a trap I fell into by not proofing for the forth time something I was posting. I guess: “This is the problem with this American (Walter) today.”

        Walter – CAFR1

        Reply
        • “Walter Burien – CAFR1″ … why are you so invested in this?

          … is the grand monetization of everything (in clown-bux) represented within the CAFR1(s) at stake? (asking rhetorically)

          Reply
          • Friends stick up for other friends, and correct them when they need corrected. A lesson you may wish to assert into your paradigm.

            Reply
  14. Thomas

     /  November 22, 2011

    My first language is not even english, and I have to agree with Walter Burien’s reply. I have read the report twice and can not see any other conclusion. Why should be the money be backed by gold first place? SDR drawing rights? That’s just other fictional money created out of nowhere! The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members.

    Reply
  15. Dave Mowers

     /  November 22, 2011

    The Federal Reserve is Loaning Money at 0-1% Interest to Large Corporations and Banks. Under the 1937 Federal Reserve Act profits from interest bearing loans by the Federal Reserve are to be used to pay down the national debt. We are being DEFRAUDED every time a zero or one percent interest loan is given to a company because it will ultimately lead to federal income tax increases to pay the national debt. America is not a Democracy, it is an Aristocracy, people are poor and getting poorer because the rich in this country are committing fraud in collusion with the Federal Reserve Board of Governors and member banks. You cannot get loans directly from the Fed and YOUR BANK is waiving profits DUE YOU. Tax increases + money scarcity equals a Depression.

    We need a a reform of the Federal Reserve our money should be issued and loaned at low interest to individuals only to encourage small business and creative for-profit pursuits. This worked in Libya and they had a higher standard of living that the U.S. because their government loaned money to the people to facilitate business growth, not to protect a class-based society intent on staying wealthier by deception and fraud. Read the act, the Federal Reserve does not need taxes to pay national debt it needs to adhere to its’ own laws and regulations and start loaning money directly to individuals and collecting interest, they can control inflation by using interest rates. America does not need banks and we don’t need Wall Street.

    Thanks Reality Bloger.

    Reply
    • Thanks. This is why I keep crying to take over government with people, not persons, attorneys, and corporations.

      Get a hold of government, and you get a hold of the entirety of the corporate and financial world, including the Fed.

      Reply
  16. tiffany

     /  November 22, 2011

    I guess you have never read the 1934 Congressman Mcfadden report.

    http://www.uhuh.com/worthy/mcfad.htm

    Reply
  17. ray

     /  November 22, 2011

    The debt paper fiat currency in your wallet fails the legality test of what exactly a bank note is. It’s not a note, its just a piece of paper. But yes, originally you could trade your note in for gold or silver. That was a long time ago

    Reply
  18. Does backing not imply that I can exchange my notes directly for the commodity from the backer? I can’t take my notes to the federal reserve and exchange them for gold, therefore I submit they are not backed by gold.

    Reply
  19. molecule

     /  November 22, 2011

    hahaha! RealityBlog is a DisinfoBlog

    quote: “There is the Gold Certificate Account (The Fed has the gold and the Treasury has the certificates.)” HAHA!

    The Nixon (Bush really) administration was a pro-Mao pro-China pro-Fed Bolshevik communist fifth column. His legal counsel got the Supreme Court to rule that, when we paid (settled with) the Fed for the interest that “we” supposedly owed them, from borrowing our own currency from ourselves, it had to be paid in gold … here’s the key point … at the Statutory rate, which at that time was $40 per oz. Thus, for every $40 of interest owed, our treasury had to transfer 1 oz of gold from Ft. Know, to the Fed’s NY kahuna member banks. At that time, the market rate varied, but as I remember it, it has varied from $200 to $1600 now, per oz. But when we pay interest on fiction, we have to deliver gold as settlement, at statutory rate of $42, or whatever it is.

    HAHAHA paper money, issued as debt against one party (“we the people”) is backed by gold owned by another … hahaha … americans are soooo stupid … reality blogger is a disinfo blogger, or will he profess his own cluelessness!!

    simple question, does international treaty require that when “we the people” are forced to man up to settle on the fictitious interest debts that we borrow from ourselves but owe to the FED’s member banks, are we required to make a tender of gold? (answer, yes!) when the deliver the gold, is it valued at market value (the “market” being established in secret by the London “fix”), or is it valued at the considerably lower statutory value? (answer, the lower one … in other words, deliver more gold)

    how can a gold heist, be called “backing” for the dollar? amazing!!

    Reply
    • Again, the Fed is not all-powerful, it can be erased by an act of congress, it can write off all that debt, and the gold collateralizes (backs) the printed dollar. As long as you think these entities are separate and in competition, then the thievery will continue.

      If you’d like to offer a reasonable contrary retort that is readable, please do so.

      The “interest” on the notes gets paid to the treasury, as I showed in the videos.

      Reply
  20. Thank you Clint, plus Walter for the: (1) contract and market price of gold plus amount of currency out here and so these FRNs worth 12-cents and 37-cents of gold respectfully, and (2) The “word play tactic” of that the “treasury can ‘redeem’ the gold certificates” per the 1964 “pledge” ONLY “for the benefit of the Federal Reserve (if the Federal Reserve calls in their “payment” marker” . Thus HOW to force them to do so? Who holds these FRNs? Not me! When I cash my payroll check from work I CLAIM the RSA Chapter 275:43,I(a) “lawful money” http://www.gencourt.state.nh.us/rsa/html/XXIII/275/275-43.htm of silver dollars here in New Hampshire as prescribed by law: when we 1-8-17 U.S. Constitution “Consent”ed to The Coinage Act of 1792 by Laws of N.H., Ch. 28 of 1794 in Vol. 6 @ page 155, BUT since they have none I take the Coinage Act of 1965 debased metal coins on a temporary basis by telling them so in a written receipt of that ‘I’ll be back” for the quality coin later. Back: as in to get four other victims to put that bank into involuntary bankruptcy proceedings if they don’t pay up. Of THEM to convert THEIR “paper money” up to their Regional boss of The Fed in THAT Region, like A1 for Boston here in New England to turn each of THEIR dollar bills into a silver dollar, because all notes of from the one ($1.00) dollar to the one hundred ($100.00) dollar bill are purchased from The Treasury at only 6-cents a note x 32 = $1.92 per sheet. The Crane Paper Company in Dalton, MAss. gets the cotton from my Uncle Bob in Mississippi, who sells to the U.S. B.E.P./ Bureau of Engraving & Printing. The notes are not monetized until the gold bullion be deposited per Section 16, Part 15 thereon The Federal Reserve Act of 1913, since “amended” (so-called) by these gold certificates supposedly because Fort Knox is so full? (;-) It’s called a fractional reserve system because only a small percentage of the population KNOWS this AND asserts their rights. The rest of the “sheeple” protest in those O.W.S./ Occupy Wall Street venues demanding a “Living Wage” but who settle for the after-effects of the commerce coins or dollar bills withOUT seeing the Coin Shop middleman. That’s their problem, and ought not to be yours of who is reading this that if you’re dealing with TD BANK, please contact me as one of the four other victims. I need you to help us get what is owed to us by The Rule of Law. Yours truly, Joe Haas, cc: Martin: “My lack of funds are being compensated by my knowledge.” (;-) & Daniel: computers are for the relay of information, not the creation of money! Whether Fort Knox is full or empty, the certificates DO exist, right? WHERE are they being stored? To redeem one and then we MIGHT find out from where that gold came from. For the bank to sell to buy the silver dollars from the U.S. Mint to finally pay us. Plus Joe L, ready with a WWII-like wheel barrel eh? (;-) And: Grey: The sharing of information will get all of us to the conclusion here for us to benefit when we get “them” to either pay up, or have a County Sheriff’s Sale of their property. (;-)

    Reply
  21. If a dollar is backed by only gold then a dollar is worth a dollar, If a dollar is worth a cent its not a dollar is it?

    Listen to what Ben Bernake tells you, money cannot be issued without collateral as a deposit, collateral can be anything deemed acceptable including gold but in this system it is by far primarily IOU’s(debt) and it is that collateral which backs the majority of dollars and all other currency’s.

    But yes its true to say the dollar is backed by gold in the sense that 0.12% of the dollar is the rest not so.

    Reply
  22. HardToBeOutraged

     /  November 22, 2011

    Wow. What terrible research.

    First, the author apparently doesn’t do his own research. Then, he takes an email at face value and publishes it…without researching it.

    Federal Reserve notes are not backed by Gold or Silver. They are backed mostly by U.S. Treasury Securities.

    From the Fed:

    “Federal Reserve notes are not redeemable in gold, silver, or any other commodity. Federal Reserve notes have not been redeemable in gold since January 30, 1934, when the Congress amended Section 16 of the Federal Reserve Act to read: “The said [Federal Reserve] notes shall be obligations of the United States….They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.” Federal Reserve notes have not been redeemable in silver since the 1960s.

    The Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts in to circulation. This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.”

    http://www.federalreserve.gov/faqs/currency_12770.htm

    The author of the blog moans about all his sacrifices and how one and only one person went “beyond the call of duty” and didn’t take things at “face value”.

    Then the author went on to do no research, which he already admitted anyway, and…wait for it…TOOK THE EMAIL AT FACE VALUE! Ass.

    Reply
    • You, of course, haven’t explored my research, and draw a conclusion and attack me. Typical…

      You state it clear as day in your retort without realizing it, lol: “…They (FRN’s) shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.”

      Lawful money, as you no doubt know, is gold and silver!

      Thus, it is redeemable by the collateral – over 260 million troy ounces of gold.

      Was there a point that I have disagreed with what you reference here? Securities, gold, foreign currency, etc, all indeed backing the printed dollar. How does that effect the points in the article, simply because they are not mentioned and were not the point of the article?

      Why so angry?

      Reply
  23. t-bagg

     /  November 22, 2011

    Ya Clint,

    Pull your blank out of your blank. All you need to know is that the FED is run by a criminal international central banking syndicate. Who owns the FED Clint? Do you think the owners of the FED want a dollar backed by gold?

    The day that I can bring $1300 dollars to the FED and get an ounce fo gold in exchange, is the day that the dollar is backed by gold. Stop insulting my intelligence. And backing a banker myth these days is not a very popular thing to do. Why don’t you do a report on fractional reserve banking.

    You pal,

    T- Bagg

    Reply
    • Again, attacking the messenger… so uncool.

      Which part of this is false? I’ll take sourced documentation any time you can provide it.

      Reply
  24. Mike L

     /  November 22, 2011

    A gold certificate is not real gold. From the FED’s own mouth.

    Here is a good breakdown: https://goldsilver.com/video/fed-lawyer-alvarez-the-federal-reserve-does-not-own-any-gold-at-all/

    From the FED’s site.

    Unique International Functions In addition to its domestic trading desk responsibilities, the New York Fed, at the direction of the FOMC and U.S. Treasury, conducts all foreign exchange trading for the Treasury and the Federal Reserve System. In this role, the New York Fed intervenes in foreign exchange markets to achieve dollar exchange rate policy objectives and to counter disorderly conditions in foreign exchange markets.

    Services for, foreign central banks and international organizations. One of these services is the New York Reserve Bank’s unique custodial responsibility for the gold reserves of various countries, central banks and international organizations.

    Foreign official gold reserves have been held at the New York Fed since 1924 for numerous reasons, including the stability of the U.S. political system, the concentration of international trade and finance in New York City, and the convenience of centralizing gold holdings in a place where international payments can be made quickly.

    http://www.newyorkfed.org/aboutthefed/fedpoint/fed13.html

    A great pamphlet http://www.newyorkfed.org/education/addpub/goldvault.pdf

    So the FED does hold gold, but they technically don’t own gold.

    Reply
    • The real problem is that we pretend these entities are separate and in competition. That just isn’t true. No matter who holds the gold, it is the federal government, and the Federal Reserve does not exist without the Federal Government.

      There is only one entity, and that is the United States Inc.

      This is what we should be focusing on, not its many sub-corporations.

      Reply
      • Mike L

         /  November 22, 2011

        The Government is a problem yes, but the FED is controlled by the people we should be focusing on. If you read the diary of Col. Edward Mandell House, you will see how the bankers wrote the bill, and that there was a conspiracy on the part of House, William Gibbs McAdoo to keep it quiet. They even lied to Woodrow Wilson about that fact.
        Key players, JP morgan, Paul Warburg, Jacob Schiff, and John Rockefeller.
        They still represent the largest shares in the FED.
        And your statement is incorrect, we should be focusing on the individuals responsible, all of which are easily identifiable.

        Look at Rockefeller squirm when he hears what Ron Paul wants to do

        Reply
        • That was not squirming, that was complete dismissal!

          Ron Paul has been one of the most un-influential congressmen in its history among the congress and senate, and especially the bankers. Not one bill passed in his whole career! Just a lot of talk, which is exactly what people need to hear so that they believe someone is addressing the issues so they don’t have to. 12 terms of nothing! Zip. Nada…

          Again, the Federal Reserve is run by US CODE. It is not a lawmaking entity, and does not make its own rules. Everything it does is according to US CODE. And everything it does is legal!!!

          The government is in a constant chess game of borrowing from itself and paying itself back with taxpayer money while collecting dividends on the interest for itself. That is the case with the Federal Reserve as well, which collects the interest on FRN’s and gives it right back to the Treasury every year.

          $47,430,237,000 in “interest on Federal Reserve Notes” was transferred to the Treasury in 2010, and $687,645,286,000 over the life of the Fed.

          (Source: Fed Board Of Governors CAFR, page 461, “distributions to Treasury”)

          So who is responsible for the interest on the dollar? The US Government, which includes the Federal Reserve – part of US INC.

          This “Federal Reserve is not Federal” myth needs to die, or government will keep promoting it and pretending that they are at the mercy of the Fed. Ridiculous! The Chairman, 7 Board members, and the President (via proxy of the board) are all appointed by the Federal Executive Branch of the Government. They are not above or separate from government any more than my local Target store is separate from the Mother Target Corporations, though it is separate for liability and can sue and be sued. The fed can sue and be sued in tort, and is a non-profit Limited Liability Corporation of the main, and created by the main corporation of the United States (of course there is no such thing as a non-profit!) – which can un-create it any time it wishes. But it doesn’t wish to, for it is too profitable!

          As long as we keep recognizing the lie that the Fed is a completely separate animal from the Federal Government, the government will keep promoting the myth.

          Again, put down the “Creature” books and famous quotes and read the Federal Reserve Act itself, which is completely amended from its original writing, and is amended almost yearly.

          Thanks for the info, and please know this is meant in a spirit of kinship, not spite.

          -Clint-

          Reply
          • Mike L.

             /  December 1, 2011

            This idea that the FED is a Federal Institution is the lie. It’s not Federal, it is Private. The FED even admits that. The only control the US has over the FED is for the Washington DC branch only. there are 12 FED banks across the country. And yes, they are controlled by private interests and have private share holders.
            Chase Bank is the largest share holder in the FED, and congress is not allowed to review Monetary policy set by the FED, so how do you justify it being a “government” controlled entity when the government can’t even look into what it is doing.

            Congress just found out about 7.7 Trillion the FED gave out a while ago, SO DON’T TELL ME ITS CONTROLLED BY THE GOVERNMENT

            Reply
            • Your assumptions are fallacy, with no fact. And stock purchase is required, not offered. It is not “ownership” stock.

              Obviously you haven’t read the Federal Reserve Act. Come back when you have.

              Reply
  25. FRN’s Backed by gold?

    I equate a currency being “backed” by gold, as one being REDEEMABLE by the bearer in gold.

    If you cannot redeem the paper for gold, it is not “backed” by gold, in any real or practical sense.

    There is a big pile of gold sitting somewhere, and a bigger pile of paper that supposedly represents it scattered around. Without the ability to redeem the paper for the gold, even at a penny’s worth of gold on the paper dollar, the gold may as well not exist, and the connection between the two is purely imaginary. In fact, it is a lie, if “you cannot get there from here”.

    Reply
    • Remember, we are speaking about M0 paper currency here…

      And the money created out of thin air can also be uncreated back into thin air. Debt can be abolished as easily as it is created.

      Reply
    • This is what I came to post. If Clint’s assertion is true and you can redeem it, then there should be a huge arbitrage opportunity here. He could redeem $42.22 for 1oz of gold, then sell that gold for $1307, then redeem that for 29.5 more oz, and repeat until the difference between the two closes in.

      Reply
      • Government can, with the cooperation of all parties involved.

        You, however, can not.

        Reply
        • The purpose of having a backed currency is not to protect the government’s from the value of their gold from being less than the paper, but to protect the public from their paper being worth less than the gold.

          If the government can recall their paper for less than the cost of the gold they give out for it, and at the same time will more money into existence at any time, why would they ever bother to redeem it? Calling the US dollar a gold backed currency is like calling owning a plot of land on the moon property rights.

          Reply
  26. john hand

     /  November 22, 2011

    you do not understand the term federal reserve NOTE if you look up note in blacks law dictionary it is a promise to pay. it is like when you go to a bank and get a loan you sign a note, the federal reserve NOTE is not money it is a credit instrument and shows some one or enity has borrowed from the federal reserve. the gold was turned in by order of president fdr to the federal reserve for collateral for the credit to borrow from them. however the contract was based on fraud and all contracts based on fraud are null and void so it is really still our gold unfortunately they own all the courts

    Reply
  27. jason

     /  November 22, 2011

    I really fail to see the logic in the arguement, either way. Now I admit to being ‘useful idiot’ – that is I haven’t done the necessary research to be fully informed one way or the other. On the other hand, I fail to see what good it would do to get informed. Federal reserve notes can be exchanged for ANYTHING – gold, oil, petrol, food, the services of a prostitute, whatever. But I would like to see an ‘informed’ individual get more than approx 1/1600 of an ounce of gold for a US federal reserve note from any central bank. If you can walk into any bank, be it FR or your local credit union, and get more gold than 1/1600 ounce for a $1 bill, please post it on youtube. That is the time I will have respect for the research done. Until then, that will remain the true problem with Americans – they think they know, but when it comes time for action, they’re all talk. I remain, yours truly, The Useful Idiot.

    Reply
  28. Choo Hader

     /  November 22, 2011

    The USD is backed by NOTHING. Correction, backed by debt which will be paid with still more dollars!!!

    US gold “reserves” haven’t been audited since EISENHOWER was president. Gee I wonder why? HAVE SOME SENSE PEOPLE,. We are ruled by liars and thieves and have been since before you were born,
    The US has no gold, the Fed stole it all – sold it all into the free market over the years to supress the price. And the banksters bought it all with the fake money they print. THAT’S where the USSA’s gold is! I will give everyone a hint – silver is a much better long term investment and will outperform gold for dozens of reasons although I think gold at $3-5k in 2-5 years is a layup.

    Reply
    • That is ridiculous! The U.S. has dominated the world markets and nation built the world economy. The U.S. Mint is in constant supply of new Gold and Silver. New mining projects all over the world are short workers by 70% and paying 4 times the going rate of pay.

      And this is the audit of the Fed, showing over 260 million ounces of physical gold backing the gold certificates. This is an audit… thus, the gold is accounted for in the audit.

      I’ll tell you what though, I’ll call the Federal Reserve tomorrow and ask them where the gold is.

      Update: I called, and they told me to send an email, and I’ll post the results when and if I get them.

      -Clint-

      Reply
  29. CalDre

     /  November 22, 2011

    I’m curious, why did you not approve my long, researched and informative post?

    Reply
  30. Okay, Clint; You have clarified some matters with specific information from the Fed’s CAFR. You mock the reader noting the lack of gold in Fort Knox, as you never claimed it being there. Where is the gold bullion? How do you know the Fed’s CAFR is an honest, complete, and accurate accounting of assets? By the Fed’s own CAFR, as you reported, the gold the Fed claims on paper amounts to only about a third of the face value of FRN’s in circulation. And while you ignore the digital “dollars” because they are not physical FRN’s, we taxpayers are expected to cover the debts and shortfalls on those electronic ledgers the banksters fudge so often.

    Reply
    • Why the hang up on where the gold bullion is? I don’t mock anyone. I simply present the CAFR information. If you choose to believe or not believe, that is your demon. But again, since there is nothing illegal going on, why would they lie?

      I’m being attacked over simply pointing to the fact that the printed dollar is collateralized by gold, against the myth that the dollar is “printed out of thin air”. The gold exists. And it rightfully belongs to the people. What more do I need to say?

      And one more thing… by your definition, regarding the “audit” that Ron Paul is pushing for, what makes you think it will be an honest audit, any more than this one? Faith? Belief? Hope?

      Again, they have no reason to lie, because everything they do is legal per US CODE.

      Reply
  31. There is 127 trillion in circulation which means your dollar is worth 11.5 cents. That explains a lot when you go to the store.

    Reply
  32. Statutory is bs, plain and simple. These men are ALL criminals.
    The fed is an illegal enterprise evident here: http://www.john-f-kennedy.net/thefederalreserve.htm
    Printing ‘currency’ without a backing is COUNTERFEITING, the dollar is a RECEIPT for precious metal held.
    ANYTHING so convoluted as to confuse even marginally educated individuals in deception.
    Repeat as necessary.

    Reply
  33. Sir,

    You are also wrong about CAFR: It is not there for you to game through the “Strawman” scheme. The CAFR is also Collateral for the National Debt plus unfunded liabilities. In due time you will apologize for that as well, (sorry Walter !). The Fed Charter doesn’t mean beans. It’s all smoke, man.

    enjoy the ride

    Reply
  34. gary nicholls

     /  November 22, 2011

    I have an easy answer to all these financial problems. The Federal Reserve just needs to claim ownership of the asteroid Eros. There is so much gold and other precious metals in it that we can then print quadrillions of dollars all backed by metals stored in one of the most secure locations you could want. No need to dig the stuff up on earth and then hide it away again, a wasteful routine.
    Then when we have ‘spent’ Eros, we move on to the next asteroid. There are thousands of them.
    Google “Gold rush in space”.

    Reply
  35. A “Federal” Reserve Note is not a U.S.A. dollar. “Most people associate the noun ‘dollar’ with the Federal Reserve Note (‘FRN’) ‘dollar bill’, engraved with the portrait of President George Washington. This association is mistaken. No statute defines – or ever has defined – the ‘one dollar’ FRN as the ‘dollar’, or even as a species of ‘dollar’”, wrote Edwin Vieira, Jr. in What Is A “Dollar”?.

    I am unaware of any U.S.A. law, since 1900, redefining the U.S.A. dollar as no longer having the value of a fixed mass of gold. The last time, that I know of, that the official U.S.A. price for gold was fixed was in 1973 at 42.2222 dollars per ounce. Public Law 93-110 defined the U.S.A. dollar as having the value of 1/42.2222 fine troy ounces of gold. The U.S.A. Department of the Treasury values gold at 42.2222 U.S.A. dollars per fine troy ounce.

    Instead of gold, currently, a “one-dollar” “Federal” Reserve note is directly convertible to a fixed mass of cupronickel alloy, namely, the amount of cupronickel found in twenty 1946-2011 U.S. Mint nickels.

    Reply
  36. It seems to me (you will doubtless not be hearing this well) that you have made a battle out of not agreeing with the herd’s general frame of reference. Collateral is not the same as backing as the European bankers are about to find out when they try and seize what at first did not belong to them and even by legal right does not.

    Your simplistic ideas about what must be done to end the Fed and get everything back on track are infantile and absurd. You have no clue about the people you would be dealing with for one thing.

    Since you are a kid, I’ll tell you a kid’s story: Let’s say your name was David, and like the one you’re named after you’re facing a Goliath. In order to defeat the giant, all you need is 5 good stones.

    I know what they are and how to throw them. So far your aim is way off and the stones that you’ve used have ricochetted back in your face. The worst of it is you have to cry about it on line. None of us gives a shit! That’s how we express it in New York.

    After the giant is dead, you’ll need to be a leader of men so that they’ll follow you. After all, you want to be President and gain glory for yourself by doing all those good deed, just like every other fucking do-gooder who ever tried to use his public office to boss others around.

    So far, you have not one any points.

    Reply
    • A kid? Really? Have you seen any of my work?

      All I did, as you stated, was go against the popular myth. A semantic argument doesn’t change the information presented. And yet I bet the herd is still yelling that the dollar is printed out of thin air…

      Thank, but no thanks, for your attempt to belittle my efforts.

      I’ll mark you down as a no.

      Reply
  37. I really want to thank you very much for all of the hard work that must’ve gone into the excellent documentaries you’ve created to inform the public. Most people would rather take the word of multi-million/billionaires who are handsomely rewarded to lie, over someone who gets absolutely nothing but ridicule and violent opposition for working their ass of to get the truth out there. Not to mention, risking your life, especially if millions of people start to follow you.

    If people were smart (most are not), they would be very grateful for the few trustworthy people left who are willing to admit an “error” in public. And from what I’ve gathered, the error has not so much to do with the substance of the content as it was a matter of semantics (backed v. collateralized).

    The quote at the top of your blog says it all. I would wear all of these nasty comments as a badge of honor.

    Reply
  38. Dave Mowers

     /  November 24, 2011

    “The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost.”

    -Ben Bernanke, Chairman Federal Reserve

    Why do we pay taxes?
    Why do we argue over money?
    Why do we have recessions?

    Money is free.

    Reply
  39. PAUL LEO FASO

     /  November 24, 2011

    Congress was clearly delegated the power and authority to regulate and maintain the true value of the coin within the scope and purview of Article I, Section 10, Clause 1, of the ordained Constitution (1787), and further, under a corresponding duty and obligation to maintain Gold and Silver Coin and Foreign Coin at and within the necessary and proper “EQUAL WEIGHTS AND MEASURES” clause (see also: Bible, Dueteronomy, Chapter 25, verses 13-16, Proverbs,Chapter16, verse 11,Public Law 97-289,96 Stat.1211).

    Congressman Louis T. McFadden was correct in May 23, 1933, to bring formal charges against the Board of Governors of the Federal Reserve Bank, the Comtroller of the Currency and the Secretary of the United States Treasury for criminal acts.

    Today, The R.I.C.O. Act can embrace this monumental conspiracy which has completely debauched and debased our currency under the false pretense of a national emergency created out of the declared bankruptcy of the United States of America by President Roosevelt in March 9, 1933, Executive orders 6073, 6102, 6111, & 6260 and continues to this very day.

    This permanent “STATE OF EMERGENCY” was instituted, formed with the union through gross usurpations, abridgements, malfeasance and continuing breech of legal duties by members of the Federal Government with contrivance, misrepresentation, conversion, fraud and avarice by the Federal Reserve Bank.

    Furthermore, today, a class action lawsuit against the Federal Reserve Bank for 300 Trillion Dollars on behalf of the American People should be filed against the privately held Federal Reserve Bank as the Supreme Court has upheld the recent decision for Bloomberg in its’ freedom of information lawsuit against the Federal Reserve Bank compelling the Fed to further reveal by audit, its secret balance sheet.

    The legal precedent leaves this criminal gang wide open not only for the 15 Trillion dollars in our current national debt they have engineered, but nearly 100 years of fraud, theft by deception of our National Treasury, leaving the people to live like refugees in their own land, an illegal, ruthless, odious debt matched only by the financial sodomy inflicted upon the People by this hideous affront our nation.

    GOOGLE: CLASS ACTION LAWSUIT AGAINST THE FEDERAL RESERVE BANK.

    Or read the LINK posted in my previous comment above for more information.

    For those who are still not up to speed on this subject, it would be wise to read Irwin Schiff’s “THE BIGGEST CON” a mid 70’s expose on the Criminal Intent of the Federal Reserve Bank, its failure to maintain a sound currency and the nature of the PONZI SCHEME.

    Millions of copies of that book should be loaded on aircraft and dumped upon the people in all American cities to wake the people to the enemy within the gates. Irwin Schiff defined a whistle blower and a patriot and should be pardoned as soon as we get a honest, non owned, non corporate puppet back into the White House.

    Reply
  40. Second hand smoke

     /  November 24, 2011

    Its also backed by GOD,it says so on the back.What do the courts have to say about that?Perhaps it can be used to force them to give us back our gold.Probably not but I was just curious about it.

    Reply
  41. Battlefield Earth – a movie about humans learning the bankers language and exposing how we are manipulated by having a gold fetish.

    Reply
  42. Patrick Sullivan

     /  January 28, 2012

    Who mined the gold? Who refined and smelted it?

    Who transported it? Who stored it? Who built the vault to store it in? Who guards it? Who makes rings, bracelets and other items of use with it creating more value in the process?

    What’s labor got to do with it?

    Is it not labor that backs the federal reserve note and all other forms of money?

    Is money an abstract receipt of labor?

    If labor is the main ingredient that makes money useful, the bigger question then is: why does labor have no say so in its issue?

    Consider: If all the gold disappeared from the vaults, of what consequence would it be?

    Consider: If labor didn’t show up, of what consequence would that be?

    The biggest question of all: When Will you flex your muscles labor and strike them out to begin the new world of peace that we want and need?

    Reply
    • Money is a convenient way to transfer debt. Things are exchanged in the process. The value lies in the borrowers pressure to extinguish the debt. Stability lies in the control of how much debt each person can create and not having an environment that ensures defaults on the debts.

      Reply
    • OzzieThinker

       /  January 29, 2012

      Yes, “down tools” is an effective bargaining method. In view of the obvious corrupt state of US politics, where “bad” is the best option, I wonder why people bother to vote.

      If a “revolution” was the sincere consideration, then mass not voting I believe would truly panick the “establishment” into sufficienty lower the bar as to the expectation of their slave’s output while significantly raising the bar on overall human rights.

      Currently not a single political stakeholder gives two hoots about the slaves and the slaves more or less capitulate with their “lot”. The “threat” of a “conspiracy” to lower the global population to 500,000,000 is utter bullshine. The only objective is absolute control and the world is not close to “over population”. Of course the NAZI (neocon) element of society that “enjoy killin’ folks” for the hell of it create their bizarre, pointless war games that leave the intellectuels confused and aimlessly waffling nonesensical “reasons”.

      Reply
  43. Dhong Sanoria

     /  September 22, 2013

    We have Gold Certificates in our hands. complete with documents and other papers.

    Reply
  44. Dhong Sanoria

     /  September 22, 2013

    See posted gold certificate at my email ad

    Reply

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