WASHINGTON— U.S. Senator Rand Paul, a Kentucky Republican, announced he will investigate the gold reserves stored at Fort Knox, where the United States maintains a significant portion of its official reserves of the precious metal.
Paul stated
that he will visit the facility to see the gold reserves firsthand and, at the
same time, address the economic consequences for the U.S. dollar of abandoning
the dollar's convertibility to gold.
"We're
going to go deep into the mine to see the gold, but more importantly, we're
going to talk about what happened to our dollar when we decoupled from gold in
1971," the senator declared.
The comment
refers to the process by which the United States ended the dollar's
convertibility to gold for foreign governments and central banks. The measure,
announced by President Richard Nixon in 1971, marked the end of the Bretton
Woods system and transformed the functioning of the international monetary
system.
The Fort
Knox review could also reignite the debate about the size and value of U.S.
gold reserves, as well as the role gold should play in the modern financial
system.
The official
U.S. gold reserves are distributed among several facilities, including the
United States Bullion Depository, popularly known as Fort Knox, in Kentucky.
Post a Comment
We want to know your comments and concerns. Remember: Respect distinguishes us, education makes us different...