August 11, 2011
How high would the price have to go for there to be enough gold in the US Treasury to pay off the entire US debt, or to return to the gold standard?
US Treasury says it has 261.5M ounces.
There are some rumours that there actually is only about 1000 tonnes in Fort Knox, and also that many of them are not real gold bars but gold plated tungsten, some of which was accidentally (?) delivered to the Chinese, which made them mad as hell. FRB New York is supposed to have 7000 tonnes in Manhattan, but a lot of that is held in trust for foreign governments and international agencies.
The 7000 tonne discrepancy is supposedly gold that was shipped to England when President Johnson tried to maintain the price of gold at $35/oz. Nixon blew off the gold standard when France and Switerland also started claiming gold.