Not so long ago, Ron Paul, a US Congressman, questioned initiated an audit of the gold storage of the New York Federal Reserve to find out whether the FRS is actually sitting on 7K tons of gold bullions. That was breaking news.
Is the US Dollar at least partially backed by gold or is it another bubble? What impact may the audit have on financial markets? Let’s try to find the answers together…
Ron Paul Questions FRS’s Gold Reserves
Ron Paul doubts that the Federal Reserve’s storage actually has that much gold. He says the FRS makes money out of thin air and create soap bubbles. We cannot their words for it. An audit is needed to find out the truth. And he is assumes that what they will find out may shock the world.
US Federal Reserve – Financial Paradox
According to Eugene Olkhovsky, ’s leading expert in financial markets, says that the Federal Reserve headed by Ben Bernanke is the biggest paradox of the global financial system. This is the central bank of the USA. Yet… it is a group of private banks that got the right to print dollars in 1913. The right will lose its effect 2013.
It is still unclear who really owns the FRS. Unofficially, according to J. W. McCallister, 80% of the Federal Reserve is owned by 8 richest families in the world, only 4 of them are Americans: Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs (New York); Rothschilds (Paris and London); Warburgs (Hamburg); Lazards (Paris) and Israel Moses Seifs (Rome).
According to Thomas D. Schauf, the FRS (12 banks) is owned by 10 banks:
- JP Morgan Chase Bank in New York
- NM Rothschild in London
- Warburg Bank in Hamburg and Amsterdam
- Kuhn Loeb Bank in New York (owners of American Express)
- Goldman Sachs in New York
- Lehman Brothers in New York
- Rothschild Bank In Berlin
- Israel Moses Seif Bank in Italy
- Lazard Brothers in Paris
In 1913 the US Congress established three key objectives for the FRS’s monetary policy in the Federal Reserve Act. These are maximum employment, stable prices, and moderate long-term interest rates.
The FRS consists of 12 regional banks, which represent 12 US regions.
Expert Opinion: Will US Dollar Respond To Audit?
According to , last week the USD Dollar index stayed within the 84.25-82.23 price range. In order to resume the downtrend, the price will have to break and consolidate below the defensive MF pivot located at 82,34. The closest major level of resistance is located at 83,61.
According to ForexTrend, the US Dollar is unlikely to respond to this audit initiated by Ron Paul because:
· In 1971, the so-called Jamaican currency system was introduced to the Forex market.
· The Gold Standard was canceled (the US Dollar is not pegged to gold any more).
· The US Dollar is not the only reserve currency used by central banks around the globe.
· The US Dollar is subject to floating exchange rate.
It is strange that Ron Paul has just discovered for himself some new things about the Federal Reserve what most Forex and gold traders have known for decades.
