Wednesday, June 8, 2011

We really are in trouble! There is no gold at all

Fed Lawyer Alvarez: “The Federal Reserve Does NOT Own Any Gold at All”

Here is a quote from the actual article: "For those of you who did not watch yesterday’s monetary policy hearing in the house of representatives, you most likely missed this bombshell exchange between Federal Reserve lawyer Scott Alvarez and committee chairman Dr. Ron Paul. My jaw literally dropped when I heard the Fed’s general counsel declare that the Federal Reserve owns no gold. After 1934, Alvarez explains that the Fed handed its gold over to the Treasury in exchange for gold certificates. When pressed further, Alvarez noted that the gold certificates do not represent any interest whatsoever in the gold itself. He explained the gold certificate listings on the Fed balance sheet, not as a claim to gold, but at most a claim to dollars from the Treasury."

 So what does this mean to us? Out money is just paper and is only backed by debt. 

Here is the full article.

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