Monetary historian Andy Gause joined Ian Punnett to talk about America's gold reserves, which are reportedly stored at Fort Knox and other secure facilities. Texas Rep. Ron Paul has recently called for an independent audit of the country's estimated 260 million ounces of gold (related article). According to Gause, the issue is not how much gold is stored in places like Fort Knox, but who actually owns it. He believes an audit would show the bulk of U.S. gold reserves is 'encumbered,' which essentially means it has been pledged to someone else. "[The Federal Reserve Bank of New York has] used some of the gold that's really earmarked for belonging to the national gold reserve in order to prop up their increasingly diluted money supply," he suggested.
When the gold reserve was first established, there was .25 cents worth of gold for every dollar in circulation, Gause explained, noting that the government was required to increase their gold reserves whenever they increased the money supply. So much money has been pumped into the system since then that the current ratio is only .025 cents for every dollar, he added. But why should this matter for a currency no longer tied to gold? Gause believes gold provides the nation with a basic level of economic protection in case of an international currency crisis. However, if the gold in Fort Knox no longer belongs to America, this protection is lost, he said.
Gause recommended individuals buy U.S. Mint issued gold coins as a means of protecting their own wealth against currency falls caused by the continuous printing of fiat money. He expects the Fed will soon need to double the money supply and halve the value of the dollar in order to effect a statistical recovery. Gause predicted robust economic activity within the next five years due to the new money in circulation and programs designed to eliminate consumer/mortgage debt. He also commented on the a proposed North American currency called the 'Amero', advocated the purchase of silver coins, and warned against a potential government confiscation of gold, similar to what occurred in the 1930s.
Film Talk with Peter Bogdanovich
In the first hour, Ian spoke with acclaimed filmmaker, critic, and teacher Peter Bogdanovich about his career and trends in movie making. Bogdanovich said he learned the craft by watching several thousand movies during the period between ages twelve and thirty. He commented on the seeming dearth of quality contemporary films, noting that effects-driven escapist movies with weak story lines almost completely dominate the cinematic landscape. "I think there are kids today who have never seen a good [classic] movie," Bogdanovich lamented. He briefly discussed shooting on film versus digital video, fast cut editing, and the current 3D movie fad. He also spoke about his work on The Last Picture Show, They All Laughed, and Noises Off, as well as his appearance in the movie Abandoned, the last film made by actress Brittany Murphy before her untimely death.
The United States Bullion Depository, commonly referred to as Fort Knox, is considered among the most secure facilities in the world. It is thought to contain more than $100 billion in gold reserves. A video clip from history.com takes a peek inside, using eyewitness reports and information from other sources to reveal the secrets of this heavily guarded structure.
- Midnight Express (The Chase)
- Blade Runner Blues
- Hollywood Town
Manfred Mann's Earth Band
- Every Step Of The Way
- Imaginary Voyage, Part 4
- Bank Of Bad Habits
- Right Now
- I Still Haven't Found What I'm Looking For
- The Crush of Love
- Silver Train
The Rolling Stones
- I Know You're Out There Somewhere
- Fields of Gold
- Hands of Time