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<p>[QUOTE=&quot;fatima, post: 1016731, member: 22143&quot;]No it doesn&#039;t imply this, but I will be patient and repeat what I posted above in more simple terms.&nbsp;&nbsp; Central banks do not use the fiat money they produce to settle obligations with other central banks.&nbsp; The analogy is this.&nbsp; Company A produces bolts, Company B produces steel.&nbsp; Company A buys steel from Company B to make the bolts.&nbsp; Company A does not settle the account with Company B with the bolts it produces.&nbsp; Likewise the Federal Reserve produces fiat dollars.&nbsp; It does not pay it&#039;s own obligations with these fiat dollars.&nbsp;&nbsp; It&#039;s vastly more complicated than this, but hopefully this simplification is enough for you.&nbsp;&nbsp; Therefore, this is not a statement that fiat dollars are convertable into gold.&nbsp; </p><p><br /></p><p>Second point.&nbsp; The US government owns the gold in Ft. Knox.&nbsp; This I stated above which you also seem to missed.&nbsp; What I said was that the Federal Reserve has gold certificates issued by the federal government that is backed by the gold in Ft. Knox.&nbsp; It&#039;s posted above and plainly there for anyone willing to see it.&nbsp;&nbsp; You also said that because the federal government owns the gold it is free to do anything with it as it sees fit.&nbsp; Exactly.&nbsp; FDR sold this gold to the Federal Reserve at $35/ounce in return for the FRNs that he then used to fund his programs in the 1930s.&nbsp; This is why the Federal Reserve has those certificates.&nbsp; &nbsp; </p><p><br /></p><p>So in summary.&nbsp; You asked two questions. (though I realize rhetorically) Who cares about the gold in Ft. Knox and why does it matter.&nbsp;&nbsp; Obviously the Army that has 1000s of troops stationed there to protect this gold, the President who is the head of the Army, the Congress which provides the funding and the Federal Reserve which is holding gold certificates that are backed by this very gold.&nbsp; And because the Federal Reserve counts this gold as collateral for it&#039;s operations, then anyone who uses the Federal Reserve&#039;s product, as a reserve, is also very concerned they are truthful in their stated operations.</p><p><br /></p><p>Your question was thoroughly answered.[/QUOTE]</p><p><br /></p>

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