Ron Paul: Audit the Gold!

Ron Paul explains why we need to audit U.S. gold reserves: to make sure the gold is still there and has not been secretly removed or loaned out. The Congressman also asserts that it’s time to abolish Fannie Mae and Freddie Mac and replace them with free market solutions.

Date: 08/26/2010
Channel: Fox Business

  • coolerdoncooper

    Amazing how talking about free markets and individual responsibility is considered radical. I need a drink.


    we should audit our gold , why not ?


    • If its our gold than we should be able to audit it at anytime. It is amazing we haven’t audit our gold for that last thirty years.

      RON PAUL 2012

  • Wardaug

    Simple minds will reduce RP arguments to greed. The underlying philosophical argument is something that individuals have to desire for themselves. Don’t make arguments you can not back up.

  • cmbradford

    I want the gold! Gimme da gold!

  • Citizen

    Fellow Citizens, 8/28/10
    If we Audit the Gold, we may be shocked that an ounce of gold is really worth somewhere between 10,000 to 15,000 Federal Reserve notes.
    Please note I deliberately did not call them “Dollars”!

    These are “notes’ of fiat paper, barely worth the paper they are printed on and soon American’s will wake up an realize they don’t want to hold them anymore because they will no longer represent the “good faith and trust of the American government”
    I personally look forward to when the US Treasury
    DECLARES that the gold and silver coins, that it already minting annually, to be LEGAL TENDER!

    And the Federal Reserve will fold like a cheap lawn chair and we can burn those FRNs for fireplace kindling.

    In God We Trust

    • Libertarian777

      Citizen, American Gold Eagles, American Silver Eagles and Gold Buffalos ARE legal tender.

      This is why they have a value stamped on them (as opposed to gold rounds, e.g. Krugerrands, which are NOT legal tender in the US).
      Gold Eagles/Buffalos are $50, Silver Eagles are $1.

      So, much like if 1933 had to happen again, the government would declare that you have to surrender your gold and silver at FACE VALUE, and then they would issue you paper notes in exchange (this actually happened in 1933/34). Then they change the face value of coins and sell this same gold back to you at a higher dollar price.

      Some guy did try to use the actual legal tender laws against the IRS. Not sure the exact details (didn’t read the legal briefs), but his conviction doesn’t seem ‘right’ on the face of it. (original acquittal) (conviction)

      • Citizen

        Hello Libertarian777,
        It’s a small world… my brother-in-law W.Cohan defended Robert Kahre during his first and second trials and he was acquitted on all counts. However the Government would not be satisfied that a jury found Kahre innocent of the charges.

        So the IRS fabricated new charges and went after Kahre a 3rd time and finally got a jury of “useful idiots” to convict Kahre, after all he’s a Tax Cheat.

        NOW the real truth of the matter. Kahre paid his employees in gold eagles ($50 Dollars) and silver eagles ($1.00 Dollar) as you mentioned. The recipients paid their Taxes based upon the “ENGRAVED” values.

        But the Government argued, and convinced the jurors. that the engraved value was not the real market value and that the recipients of the gold and silver owned the taxes on the MARKET BULLION VALUE of the Gold and Silver, thus they defrauded the Government of its rightful taxes!

        NOW, WHICH IS IT????
        If these US Mint coins ARE Legal Tender, then we should pay taxes based upon the ENGRAVED VALUES. Ergo a Gold Eagle is $50 Dollars, and I can pay my top employees $50 a week and they should pay taxes on that value and NO MORE.

        But if they are not Legal Tender, THEN the government can not claim Face Engraved Value and confiscate the coins based upon that lame argument. Therefore they are worth their Bullion value in the Free Market place or roughly 1,300 “Federal Reserve Notes” (NOT DOLLARS)

        Again Which Is It???
        Based upon the Kahre conviction… it must be the Bullion Value, since Kahre and his cohorts paid their taxes on the Face Values.

        So are we be Damned if we do AND Damned if we don’t .
        Sure we are, it’s the US Federal Government, they change the rules on a whim.

        God Bless Ron Paul for holding a “Standard” of Law that’s consistent and honorable!

    • Dfens

      I already told you what would happen if we went to a gold standard, you true believers don’t listen to anything but what you want to hear, do you? That 147 million ounces of gold number I got was from the Lew Rockwell website. Don’t you even keep up with your own Libertarian propoganda? Let’s go to a gold standard so we can all be instant millionaires. It would be just like winning the lottery.

      • Dfens

        I even did the math for you in this one. Let’s go to the gold standard! Yeah right! Let’s surrender whatever pitiful amount of gold we have left to the Communist Chinese is what you Libertarians really mean.

        • Citizen

          I think you’re finally “removing all doubt”

          Return to a Gold Standard would be a MASSIVE DEVALUATION of our currency.
          We would NOT become “instant millionaires” as you say, the polar opposite would occur.

          Using your 147 Million ounces of gold number and converting them to cover the current estimated M2 Money Base (cash & demand deposits)

          A Devaluation of the Fed Reserve Notes FRN would likely result in
          1 FRN = $0.00086 Gold Treasury Dollar GTD thereby the Avg US
          House of 235,300 FRN would drop to 10,063 GTD
          Car of 22,350 FRN would drop to 955 GTD
          China Debt 739BILLION FRN drops to 632 Million GTD
          Japan Debt 634BILLION FRN drops to 543 Million GTD

          AND NO
          We would not
          “surrender whatever pitiful amount of gold we have left to the ChiComs”

          But more importantly,
          We Libertarians would eliminate the FED, the principal reason of having to DEVALUE the Currency, thereby eliminating the source of the Government COUNTERFEITING operations.

        • Dfens

          The value of bread relative to the value of gold does not change just because you adopt a gold standard. A loaf of bread is 2/1000’s as expensive as an ounce of gold either way. You can go to a gold standard in one of two ways. You can split the gold evenly among the dollars that are in circulation, which in our case would vastly devalue the dollar, or you can only partially cover the dollars that are out there. If you partially cover the dollars that are out there to maintain the dollar’s current value of 1/1225 ounce of gold per dollar, then you open the door for a country to whom we owe trillions of dollars, like your buddies the communist Chinese, to walk in and take every last speck of gold from Ft. Knox. We owe them $7 trillion and own less than a trillion dollars worth of gold. You can be a true believer, or you can wake the hell up. It’s your choice.

    • David

      Hi Guys;

      I’m going to see if i can interject a little bit of reason here.

      Dfens, i share many of your concerns about a commodity based currency, as currency is after all nothing more than an artificial means of exchange in order to facilitate trade for useful production and services beyond the local barter level. I think if it is to serve this function and promote such useful exchange to the maximum extent we are capable of creating it, then i think we need to have the ability to create and manage this artificial means of exchange according to our ability to create the useful things it is intended as a means of trade for, in order to make it do that.

      Citizen, i understand both your and Ron Paul’s affinity for gold and a commodity based currency as well and i suppose that the difference in our perception is that you want the currency itself to have value, while i simply regard it as a means of trade and place 100 % of the value in the useful production and services that it generates for the population. Nonetheless, should we manage to elect Ron Paul and should he manage to bring about such a currency, if it can managed to where it will actually perform its stated function and allow us as a population sufficient means of trade in order to generate the maximum possible level of real and tangible prosperity we are capable of creating for ourselves, I for one will be extremely happy. If it turns out that this is not possible, then i expect that those promoting the hard currencies today will also have enough sense and reason in order to look at Franklin’s example and examine the possibility of supplementing them with whatever we need in order to allow the currency to perform this function to the maximum extent that it can.

      The problem is that whatever form of currency might be in use or may or may not work is not our problem today. Our problem today is that the United States economy has existed for far too long for the purpose of serving as parasitic infection that contributes nothing to it and they have reached the point where it are consuming so much of our productive effort that it is no longer possible for the population to sustain itself. Unless we as a population destroy that parasite first, before it establishes the absolute power it needs to prevent us from doing so, we will not even have a chance to discover whether a hard public currency, or a public fiat currency would best serve our interests.

      Whatever whoever is arguing about here in terms of what would be the best form of currency for us, it’s simply a moot point until the power which would prevent us from using either in our interests has been eliminated and we as a population will have to eliminate it as its control over our political system is to the extent where it is absolutely impossible to accomplish by conventional electoral means.

      I think that most debating both sides of the currency issue agree on one thing, and that is that whatever they propose needs to be created / supplied and managed by congress in the interest of America and its population. If we can all simply forget disagreements toward this end for the present and apply our efforts toward making it possible for something to happen, then we will have regained the control of the system that we need to at least make something happen according to the will and interests of the people.

      I think we have come up with the means to it. I probably understand the mentality at work in the minds of the politicians who are complicit in this much better than most Americans, as i have already lived through the end result of what our politicians and banking system are trying to accomplish here. The single and only thing which is greater than their insane craving for power and their need to bully, control and victimize the population in order to make themselves “FEEL” like a great and powerful man or woman, is their fear of those whom they would make their intended victims and of what they might do in retaliation for this. This fear still exists even when they have managed to completely disarm the population and establish a socialist police state where the people are subject to the complete and absolute power and control of that state and they spend their entire lives trying to invent more laws to try and eliminate every single possible threat that any member of the population could pose to their power, no matter how small it might be, as their fear is just as constant and never ending as their craving for power and control.

      The United States Government, has it in its power and has the constitutional authority at any time, to put a stop to the theft and fraud and replace our current currency and economy with one which is designed to serve the American population, as opposed to a parasitic infection which simply consumes their productive effort and resources up until the point where there is nothing left, as it always has within our lifetimes. The United States Government is living in absolute terror of the American population at this point, because they have not yet managed to disarm the population nor establish the police state where they can attempt to enforce the absolute power and control over them which they desire. The single and only thing we need to do at this point is increase this fear just a little bit, to the point where their fear of us becomes greater than their craving for power and their sense of obligation to the Banks for having put them into power and it won’t take much to do this, after which they will be acting in our interests simply out of their fear of us.

      We all know this is what needs to be done and that it needs to be done first if any of us are going to accomplish anything else at all and i think we’ve come up with the simplest and easiest possible means to do this as well.

      If everyone can just agree on this one thing and work together to eliminate the problem now before the power is established by the problem to prevent us from doing so, then once that’s done, we can be engaging in productive debate about what form of currency would best suit our interests, and learning from the results of whatever is established in order to make it serve our interests better. I promise that if enough people participate in this and we can continue to flood both our senate and congress with millions upon millions of these demands and declarations over the course of the next several months, we will have established the level of fear and terror we need to make it happen and we will have eliminated the power which would prevent us from making anything happen which could serve the interests of ourselves and our country as well.

      • Citizen

        Howdy David and Dfens,
        My point, We The People orchestrate a Currency Exchange…from corrupt FRNs to GTDs. FRNs would become obsolete (worthless) currency after a hard exchange date, and GTD would become the new currency
        1 Federal Reserve Note = $0.00086 Gold Treasury Dollar

        YES this would be a RADICAL Monetary Event that would fundamentally change the way the PEOPLE MANAGE their government, and NOT the way that it is now, the Government “manipulates” the people.

        The FED (published) M2 money as a basis for the DE-valuing of the FRNs to exchange for the 147 Million Troy Ounces into Gold Treasury Dollars that would become the new monetary base. People would receive gold and silver certificates, “Payable to the Bearer on Demand” in either gold or silver.
        There would be no more FRNs after a Date Certain. Talk about FLUSHING OUT all the world’s illicit drug money and counterfeit US FRN currency, I’d venture to say the savings would approach $3 Trillion of bogus FRNs out there now.

        There is no need to replace M3 assets, with hard GTD since most US Assets would not become liquid over night because of a Currency De-Valuation. But both Private and Public Balance Sheets would be re-stated in GTD, to include US foreign debt, Bonds, T-Bills, etc.

        But this entire exercise would be meaningless absent the End of GSEs, the FED, Freddy and Fanny. Essentially putting a complete stop to Government counterfeiting practices using Fractional Reserve currency manipulations.

        David, I believe that “the people fear their government, thus there is tyranny”, and Dfens thinks that’s just fine, I DON’T think so!

        As a Libertarian, I believe the Government needs to Fear the People, the Founders created Government to the SERVE the people and the Official Currency needs to be removed from future Political Corruption and returned to Sound Money FUNDAMENTALS.

        • David

          Hi Citizen;

          Yeah this is good, and this is what we need to make happen now too, a complete reversal of everything.

          A complete reversal of money from a means to establish power over us to a means for us to exchange the full measure of prosperity we are capable of creating for each other and you seem to have a lot of the finer details of this worked out as well. Also a complete reversal of the people living in fear and service of government to government living in fear and service of the people.

          We have one enormous difference in America from the rest of the world where the final result of whats happening here now has already been established. In my former country and in the rest of the world, people have always lived in the fear and service of government, because they have never known anything else. In America people have experienced freedom, they know what it is and although the banking system and it’s government have been doing all that they can to make the people live in fear and service of them, the more they have done the more hatred they have generated toward themselves. The people have now been pushed too far and are going to react, one way or another, just as they have already done before and need to do once again.

          During the course of the original revolution they were in the habit of carrying around the serpent flag with the inscription “Don’t Tread On Me”. From what i’m seeing on this end the same seems to apply today and its in that which we can place our hope.

        • Dfens

          To go to a gold standard you need to have gold, not debt. We have debt, not gold. The Amazing Ron has 2 ideas for fixing our economy. 1) Go to a gold standard. 2) Unilaterally eliminate all protections from our markets. We have no gold. That leaves him with one option. Gee, I hope it works.

  • Citizen

    Fellow Citizens,
    A revived Gold Standard currency is No Panacea to be sure, but it would be a start in the right direction to fiscal solvency and restraint on this Government madness.

    There are many other issues that are equally or of greater importance, but they can wait until We the People, restore the Constitutional Restrains to subdue this monster drunk with spending power.

    Absent fiscal control of government, (End the Fed) there is little point in legislating new laws that will be ignored and obfuscated new legislation (Obama Care) by criminal minded politicians hell bent on their on personal get rich schemes at Tax Payer’s expsense.

    • fred the protectionist

      “A revived Gold Standard currency is No Panacea to be sure, but it would be a start in the right direction to fiscal solvency and restraint on this Government madness.”

      Wrong, you Roonulans think the Gold Standard will fix everything, it’s your “silver bullet”.

      • Dfens

        I thought their silver bullet was unilaterally disarming our trade protections by eliminating all tariffs without any reciprocity from any other country we trade with? Remember, Ron Paul isn’t a corporatist, he just votes like one!

        • longshotlouie


          You are dumber than a box of doorknobs.

        • Dfens

          Now there’s the kind of hard hitting reasoning we’ve come to expect from this website. Let’s hear from Ron the almighty himself on this one, shall we?

          We don’t need government agreements to have free trade. We merely need to lower or eliminate taxes on the American people, without regard to what other nations do. Remember, tariffs are simply taxes on [foreign made goods bought by American] consumers. Americans have always bought goods from abroad; the only question is how much our government taxes [those of] us [buying that crap] for doing so. As economist Henry Hazlitt explained, tariffs simply protect politically-favored special interests [otherwise known as American industrial producers] at the expense of consumers [formerly known as the employees of American industries], while lowering wages across the economy as a whole. [Hazlitt had a hard time with the notion of supply and demand which explains many of his crackpot economic theories]. Hazlitt, Ludwig von Mises, Friedrich Hayek, Murray Rothbard, and countless other [crackpot] economists have demolished every fallacy concerning tariffs, proving conclusively that unilateral elimination of tariffs benefits the American [surely he meant, Chinese] people. We don’t need CAFTA or any other international agreement to reap the economic benefits promised by CAFTA supporters, we only need to change our own harmful economic and tax policies. Let the rest of the world hurt their citizens with tariffs [and those nasty jobs they can’t outsource because of tariffs]; if we simply reduce tariffs and taxes at home, we will attract capital and see our economy flourish [just like protectionist Communist China’s economy has flourished, with double digit growth for 30 years. Oops, ignore that one, and Japan, ignore them, and Korea and Vietnam, pretty much all those Asian countries, just ignore them]. — Ron Paul Texas Straight Talk.

  • faizan2012flow

    he is just a very good person but the thing it is that Zionist can kill him

  • enuvune

    ron paul makes me wish i was american.

  • mogimuss

    I would be a bit shock if he ever made it to the white house.

  • ThePointMan11B

    let him on regular faux news you traitors . oh thats right just like in 08 your scared that the sheeple will catch on to him.

  • websuspect

    Good job sir.

  • brad238899

    If he runs again I will leave my job to campaign for him.

  • WAMill3R

    We can have a housing market. It’s just going to have to contract because there’s a huge excess supply at the moment. Or we can keep building houses and public projects for which there’s no demand (the Keynesian approach).

  • The mainstream media will continue to ignore the truth, the more Ron Paul shines and stands out against the rest! Not only do we have the mainstream media, the Federeal Reserve and the other government agencies that are terrorists, We also have to worry about the Drug Cartels, Gangsters, and the KKK and other hate groups that are domestic terrorists!

  • Dfens

    What, there’s no gold at Ft. Knox? What a shock! So much for going to a gold standard. Suckers. So what’s Ron’s next great idea for our economy? Oh yeah, let’s unilaterally remove all protections from our domestic market and hope other governments do the same while we hope that peace and love and roses spontaneously sprout everywhere.

    • rp

      And your idea to America is to continue to acumulate debts and more debts. Im proud of you, it seems that you are a very smart guy, now go ask for an loan at FR 😉

    • Citizen

      Hey Dfens,
      You shall know the truth and the truth shall make you Mad as Hell!

      I and many Libertarians SUSPECT that the gold is gone, that our government has squandered and frittered it away on Entitlement Programs and Imperial Wars. Most likely the FED of NY has it all in their basement now.

      But NOW is the time to TAKE BACK the purse strings from our profligate Government and get our Country back to solvency and return to living WITHIN OUR MEANS.

      End the Fed, Support Ron Paul!

      • Dfens and you’re going to regret every decision that you make and it’s going to cost us a pretty penny including you and your life savings!

  • jtiagz

    Wake up America, there is no terrorism in middle east against the American people, the terrorism is inside your country like CFR, CIA, FBI, Federal Reserve, ABC, CBS, Fox, NBC, Tavistock Institute, etc, etc, etc…

    Wake up and destroy this terrorists organizations and America and the World will be a free place to live.

    This man is the only hope we don’t have much time.

  • Nitroindole

    My dear Americans,

    We all still remember Obama’s attractions for his “Change” and his “Yes, we can!” and crowds and tears…. What was that? Where that has disappeared without a trace? As I can see it by now it was no more than a campaign trick or otherwise he might have been so naive kid (??). We all were listening to what had turned to be a joke and deception of gigantic magnitude. Another bubble and burst attraction. I am really sick of it and almost desperately hopeless. Because there is only a tiny only “theoretical” chance that this Empire of Wall Street’s global domination, profiting from provoking and killing games could be somehow miraculously transformed to a peaceful US Constitutional Republic…

    Sorry for not being optimistic. But if there is anybody in this country who can really seriously start this process, this is Dr. Ron Paul. Least we can do is to support him.

    Dr. Ron Paul, in this world you are my very last hope.

  • Kdub

    Ron Paul for President 2012!
    Abolish the Federal reserve
    Legalize Freedom
    Restore the Republic
    Save our Constitution
    End the wars! (drug war included)
    Power to the People!!
    Ron Paul Revolution 2012!

  • This is the only candidate in the race,who could help us regain our freedom from the tyranny of the banks and their yes people,(media,political operatives,academia etc…)

  • Citizen

    The “rumor” is that our Government gave the FED ALL of our gold, confiscated in 1933, as collateral for all these years of Deficit spending.

    The rumor says the Fed Reserve Bank of NY has most of the gold stored in its vaults and that much of it remains there as payment for US Treasury debt.

    But no one really knows since an actual audit has not been conducted since 1965, when (rumor has it) the bulk (70%+) of the gold was missing.

    Do we really want to know????

    Thank You Ron Paul for asking the HARD QUESTIONS!