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Old 01-06-2017, 10:17 AM
DesertDog DesertDog is offline
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Join Date: Oct 2002
Location: Mesa, Ariz.
Posts: 3,341
Quote:
Originally Posted by Lumpy View Post
So what was all the gold in Fort Knox for? Primarily for banks to be able to conduct business with overseas financial institutions, in gold certificates that were redeemable for actual gold only by banks or foreign governments.
That's why, as Dewey Finn asserted, the FRB vault in New York has a bigger stash than Ft. Knox -- most of it belongs to foreign governments. If China buys $10-million worth of wheat from Canada, the wheat might cross the Pacific, but the gold is simply pulled from the China niche and loaded onto a heavy-duty truck, which is trundled over to the Canada niche and unloaded there. I read as a kid that all that heavy trundling wears out the oak floor in about five years, whereupon it is torn up and burned to recover enough gold to pay for its replacement.