The U.S. Treasury, which has not conducted an audit of the nation’s gold since 1954, decided to do an audit of the gold stored at the New York Federal Reserve Bank, a private corporation.
This of course had nothing to do with the fact that the House of Representatives finally has demanded an audit — Ron Paul’s bill. No, no, no: the audit began last January. The Treasury had no idea that the House might demand an audit. It’s just that the Treasury decided to do an audit, just like t said it did in 1954.
There is no report yet. Maybe by the end of the year.
An audit, if valid, will cover the history of the ownership of the gold in the NY FED’s vaults. Who owns it? What claims are held against it? This would have to go back to 1954 and move forward. We will see if this is done.
The Treasury is officially the owner of the gold. If any gold is missing, the Treasury will get blamed for malfeasance going back to 1954. This means that the Treasury has an incentive to avoid finding out if any gold is missing.
The right strategy for the Treasury would be to drill bars of gold and to count them. The goal would also be not to follow ownership. That would mean following the money.
Why is the Treasury doing this? Could it be to head off Ron Paul’s bill> How? By saying, “It’s not necessary. We have conducted a full audit.” A full audit requires tracing 60 years of ownership. Let’s see if the Treasury does this. Let’s see if this paper trail is released to the Congress for substantiation. Let’s see if the Treasury’s audit is followed by an audit by the Government Accounting Organization (the GAO).