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Selects: All the Gold In Fort Knox: Meh

By iHeartPodcasts

Dive into a trove of history with the "Stuff You Should Know" podcast, as Josh Clark and Chuck Bryant lift the veil on the storied Fort Knox—a symbol of wealth and security in the American psyche. The episode takes listeners through the inception of this military stronghold, detailing its transformation from a humble training ground to the fortress that safeguards a substantial portion of America's gold reserves. Discover the clandestine operation that solidified Fort Knox's role in the nation's fiscal fortitude.

Venturing beyond the granite walls, the hosts scrutinize the rigorous security measures that make Fort Knox an impregnable bastion, from the thick vault door that withstands drills and explosives to the disciplined Mint Police and their machine gun turrets. The podcast also navigates through murky waters of conspiracy theories, addressing suspicions on the true contents of the depository. Furthermore, the episode explores the economic implications of America's departure from the gold standard, giving listeners a comprehensive look at the complexities that underpin this iconic treasury.

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Selects: All the Gold In Fort Knox: Meh

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Selects: All the Gold In Fort Knox: Meh

1-Page Summary

Overview and background of Fort Knox

Fort Knox is renowned for its dual purpose as a military base and the domicile of the United States Bullion Depository. Founded in 1903 as a training ground near West Point, Kentucky, it became a permanent camp named after General Henry Knox in 1918, ultimately escalating to the title of 'Fort' in 1932. The historic transportation of the gold reserves to Fort Knox was as dramatic as it was secretive, involving decoys and a diverse group of defenders. Its inland position and protection by the Appalachian Mountains were key factors in choosing its location.

Security measures protecting the gold in Fort Knox

The gold at Fort Knox is zealously secured by unparalleled physical defenses and vigilant armed guards. The outer structure boasts two-foot-thick walls of concrete, granite, and steel, a vault with a complex combination lock and a 100-hour timer, and a perimeter that might even be a minefield. An underground escape route is securely positioned for internal departures only. The United States Mint Police, complemented by the potential support of the Army, operates machine gun turrets and maintains a self-sufficient facility capable of operating in isolation. The depository's security culminates in the 21-inch-thick, drill- and blast-resistant vault door.

Amount and value of gold held at Fort Knox

Fort Knox reportedly houses 4,600 metric tons of gold, composed of bars each weighing 27.5 pounds and making up about 2.5% of the world's mined gold. The specifics concerning the current statutory value for accounting purposes was not provided.

Conspiracy theories that there is no gold left in Fort Knox

Conspiracy theorists, led by figures like Peter Beter, speculate that Fort Knox's gold might be gone or fake—as they contend that the gold count is inaccurate or that audits are not credible—with claims of secret sales to global elites, potentially involving countries like China. Such theories allege manipulations aimed at economic dominance and are at times coupled with anti-Semitic rhetoric.

Reasons why the US moved off the gold standard

The United States vacated the gold standard to foster economic expansion unimpeded by the limited quantity of gold. Currency supply and thus growth, previously restrained by gold reserves, markedly increased post-decoupling. Since the Federal Reserve's inception in 1913, requiring only partial gold backing, and Roosevelt's policies in the 1930s, the U.S. started to unwind from the gold standard, culminating in President Nixon's complete detachment in 1971. This allowed the U.S. economy to advance without the constraints of gold reserves.

1-Page Summary

Additional Materials

Clarifications

  • The transportation of gold reserves to Fort Knox was a secretive and dramatic process that involved decoys and a diverse group of defenders. The operation was carefully planned to ensure the safe and secure transfer of the gold to its new location. The inland position of Fort Knox and its protection by the Appalachian Mountains played a crucial role in the decision to house the gold reserves there. The details of the transportation process were shrouded in secrecy to prevent any potential threats or attempts to intercept the valuable cargo.
  • The security measures at Fort Knox include a vault with a complex combination lock and a 100-hour timer, which adds an extra layer of protection to the gold reserves. The potential minefield perimeter mentioned implies that there could be additional hidden defenses surrounding the facility to deter unauthorized access. These measures are part of the comprehensive security protocols in place to safeguard the valuable assets stored at Fort Knox.
  • The U.S. moved off the gold standard to allow more flexibility in managing the economy's growth without being tied to the limited gold reserves. This shift began with policies in the early 20th century and culminated in President Nixon completely ending the gold standard in 1971. Moving away from the gold standard enabled the U.S. to have more control over its currency supply, leading to increased economic growth and the ability to implement monetary policies more effectively.

Counterarguments

  • The security of Fort Knox, while impressive, may not be as impenetrable as believed, considering advancements in technology and the potential for insider threats.
  • The decision to transport gold reserves to Fort Knox could be critiqued for the cost and risk involved in such a secretive operation.
  • The strategic location of Fort Knox, while inland and protected by mountains, may not be as crucial in modern times with the advent of advanced military technology and aerial threats.
  • The presence of a potential minefield around Fort Knox could be seen as an extreme security measure that poses risks, including accidental harm to wildlife or unauthorized personnel.
  • The necessity of such intense security measures at Fort Knox could be questioned in the context of a modern economy where gold is not the sole determinant of financial stability.
  • The actual amount of gold stored at Fort Knox and its value could be more transparent to the public to dispel conspiracy theories and ensure trust in the government's handling of national assets.
  • While conspiracy theories about the gold at Fort Knox being gone or fake are largely unsubstantiated, the lack of regular, transparent audits could be criticized for allowing such theories to persist.
  • The move off the gold standard, while beneficial for economic expansion, could be critiqued for potentially contributing to long-term issues such as inflation or the devaluation of currency.
  • The advancement of the U.S. economy post-decoupling from the gold standard could be seen as having come at the cost of increased national debt and reliance on the Federal Reserve's monetary policy decisions.

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Selects: All the Gold In Fort Knox: Meh

Overview and background of Fort Knox

Fort Knox has a storied history that encompasses its establishment as a military base and as the home of the United States Bullion Depository.

The history and establishment of Fort Knox as an army base

The origins of Fort Knox trace back to 1903 when the U.S. Army realized the necessity for a training ground in the vicinity of West Point, Kentucky. Initially used for training purposes, the site soon evolved and was designated as a permanent training camp in 1918, receiving the name Camp Knox in honor of Henry Knox, an officer who served during the Revolutionary War. Objections arose regarding the name's lack of intimidation factor, resulting in the title changing officially to Fort Knox in 1932, reflecting its permanent status and hardened reputation.

The decision to build the US Bullion Depository at Fort Knox

Fort Knox underwent a significant transformation beyond its military function when the United States Mint sought a secure location to house a portion of the nation's gold reserves. The Treasury Department obtained land from Fort Knox and commenced the construction of the United States Bullion Depository there. Established in 1936, the selection of Fort Knox for the Depository was strategic due to its inland location, ...

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Overview and background of Fort Knox

Additional Materials

Clarifications

  • The transportation of gold reserves to Fort Knox involved the use of decoy trains to mislead potential thieves. The process was carefully guarded by a diverse group of protectors, including post office inspectors and army members. This elaborate security measure was put in place to ensure the safe arrival of the gold reserves at the United States Bullion Depository. The secrecy and strategic planning surrounding the transportation highlighted the importance of safeguarding the nation's precious assets.
  • The inland location of Fort Knox reduced the risk of coastal attacks, enhancing the security of the Bu ...

Counterarguments

...

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Selects: All the Gold In Fort Knox: Meh

Security measures protecting the gold in Fort Knox

The gold at Fort Knox is safeguarded by a combination of extreme physical security features and constant armed guard, making it one of the most secure vaults in the world.

The extreme physical security of the vault building

The United States Bullion Depository at Fort Knox, Kentucky, often described as impregnable, is a fortress filled with gold and shrouded in layers of security and secrecy.

The vault's walls, doors, escape tunnel, etc.

The Fort Knox vault is housed within a building made of concrete, granite, and steel walls that are significantly robust—two feet thick—designed to resist any external attacks. These walls include closely packed steel coils that prevent even a human hand from fitting between them.

The vault can be accessed only by multiple individuals, with each person knowledgeable of just a portion of the combination, adding a layer of complexity that protects against inside jobs. Moreover, the vault is protected by a 100-hour time delay lock. Inside, the floor is two feet thick granite, rendering it impenetrable from below.

Encircling the building is a vast, open field which acts as a no-man's-land for potential intruders, making any approach easily detectable. Furthermore, rumors persist that this field may be a minefield, though official confirmation is not public.

The vault company has an escape tunnel with a door that only opens from the inside, ensuring that anyone locked inside can exit safely. Josh Clark adds that an escape tunnel is incorporated into the depository's design, which includes a door that only opens from the inside and is carefully monitored.

The gold is stored deep within a secured building akin to the setup of prison cell blocks within a larger prison. Surrounding the vault is a corridor with an 18-inch clearance on all sides, which is constantly under surveillance by mirrors and cameras to guarantee visibility of every inch of the space.

The constant guarding by armed agents

The United States Mint Police tirelessly guard the depository, and in extreme cases, the Army can be summoned to provide additional protection. The g ...

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Security measures protecting the gold in Fort Knox

Additional Materials

Clarifications

  • The uncertainty regarding the placement of machine gun turrets at Fort Knox arises from differing accounts or lack of official confirmation on whether these turrets are positioned inside or outside the building. This ambiguity adds to the mystique and security measures surrounding the facility, as the exact location of these defensive weapons remains undisclosed.
  • The guards at Fort Knox operate at a nerve-racking level of high alert, meaning they are constantly vigilant and prepared for any potential threats or security breaches. This heightened state of readiness ensures that they can respond swiftly and effectively to any suspicious activity or attempts to compromise the security of the gold vault. The guards are trained to be on high alert at all times, maintaining a heightened sense of awareness and readiness to protect the valuable assets within the facility. This level of alertness is necessary to deter and respond to any potential security risks promptly and decisively.
  • The 21-inch door of the vau ...

Counterarguments

  • The effectiveness of physical barriers may be challenged by advancements in technology, suggesting that what is considered impenetrable today might not be so in the future.
  • The necessity of such extreme security measures could be questioned in terms of cost versus benefit, especially in a digital age where the role of physical gold may change.
  • The presence of a minefield, if true, could be criticized from an ethical standpoint, considering the potential for accidental harm to wildlife or humans.
  • The strategy of shoot-on-sight could be seen as extreme and potentially leading to tragic mistakes if there are false alarms or misunderstandings.
  • The reliance on multiple individuals to access the vault could introduce the risk of collusion among insiders, despite the partial knowledge of the combination.
  • The self-sufficiency of Fort Knox in terms of power and water supply could be criticized for the pote ...

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Selects: All the Gold In Fort Knox: Meh

Amount and value of gold held at Fort Knox

The total metric tons and number of gold bars

Fort Knox holds an immense 4,600 metric tons of gold, which is approximately 2.5% of all the gold ever mined in the world. Each of the gold bars stored at Fort Knox is 7 inches in length, 3 5/8 inches in width, 1 3/4 inches in thickness, and has a weight of 27.5 pounds.

The statutory value used for accou ...

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Amount and value of gold held at Fort Knox

Additional Materials

Clarifications

  • Fort Knox is a U.S. Bullion Depository located in Kentucky, known for storing a significant portion of the United States' gold reserves. It serves as a symbol of the country's economic strength and stability, playing a crucial role in safeguarding the nation's wealth. The security measures at Fort Knox are legendary, with the facility being heavily fortified and protected. The gold stored at Fort Knox is considered a vital asset that backs the U.S. dolla ...

Counterarguments

  • The figure of 4,600 metric tons of gold at Fort Knox may not be current or accurate, as the U.S. Treasury does not frequently disclose this information, and the actual amount can fluctuate with audits, movements, or policy changes.
  • Stating that the gold at Fort Knox is approximately 2.5% of all the gold ever mined may not be accurate without a current and reliable source, as the total amount of mined gold is constantly increasing.
  • The dimensions and weight provided for each gold bar may not account for slight variations in the manufacturing process; gold bars can vary slightly in size and weight.
  • The lack of information on the statutory value for accounting purposes could be seen as an om ...

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Selects: All the Gold In Fort Knox: Meh

Conspiracy theories that there is no gold left in Fort Knox

Josh Clark and Chuck Bryant delve into various theories positing that the gold supposedly stored in Fort Knox is non-existent or fake.

Doubts raised about audits and gold counts

The hosts talk about the rarity of official tours to verify the gold's presence in Fort Knox, noting the limited tours by historical figures like Franklin D. Roosevelt and Congressional delegations in the 1970s and 2017. Although audits have been performed, skeptics doubt their authenticity, contributing to claims that the gold has been miscounted or misdocumented.

Clark highlights the contributions of a figure named Jan Nevenhuis, who also goes by Koos Jansen, regarded by some as having a level-headed perspective on the subject. Jansen raises concerns about the accuracy of the audits at Fort Knox, with Clark alluding to the possibility that an obsession with minor details in these audits can lead to perceived discrepancies that feed larger conspiracy theories, whether they're founded or not.

Accusations of secretly selling off the gold

The conversation shifts to the more ominous side of the conspiracy theories, with Chuck Bryant discussing a proponent named Peter Beter. Since the 1970s, Beter has promulgated the idea that the gold in Fort Knox has been covertly sold to a cabal of global elites at below-market prices. According to the theories Beter espouses, these elites could potentially use their hoarded gold to disrupt the global economy and gain disprop ...

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Conspiracy theories that there is no gold left in Fort Knox

Additional Materials

Clarifications

  • Jan Nevenhuis, also known as Koos Jansen, is a Dutch precious metals analyst known for his research and commentary on gold markets. He has gained recognition for his critical views on official gold reserves and the transparency of gold holdings in various institutions, including Fort Knox. Nevenhuis/Jansen's work often focuses on investigating and questioning the accuracy of gold audits and the narratives surrounding gold ownership and trading. His perspectives contribute to the broader discussions and debates within the precious metals community regarding the authenticity and management of gold reserves.
  • Peter Beter was a controversial figure known for promoting conspiracy theories related to the gold reserves at Fort Knox. He claimed that the gold stored there had been secretly sold off to global elites at discounted prices. Beter suggested that these elites could manipulate the global economy using the hoarded gold. His theories also involved accusations of the US government engaging in clandestine gold sales, with China allegedly benefiting from these transactions.
  • The Rothschilds are a wealthy and influential family historically associated with banking and finance. They have been the subject of various conspiracy theories, often with anti-Semitic undertones, alleging their involvement in global events and control over financial systems. In the context of the Fort Knox conspiracy theories, the mention of the Rothschilds suggests a link to broader narratives of secret manipulation and control of wealth and power. These theories often portray the Rothschilds a ...

Counterarguments

  • The United States government regularly reports on the gold reserves held at Fort Knox, and these reports are subject to scrutiny by various agencies.
  • Audits and inspections have been conducted at Fort Knox, and while they may be infrequent, there is no concrete evidence to suggest that the audits are fraudulent.
  • The U.S. Treasury has conducted audits and insists that the gold is accounted for, with the most recent audit results being publicly available.
  • The idea that the gold has been covertly sold to global elites lacks substantial evidence and is often based on speculation rather than hard facts.
  • Accusations involving the Rothschilds and anti-Semitic undertones are often based on historical prejudices and unfounded conspiracy theories rather than objective evidence.
  • The value of the U.S. dollar is influenced by a complex set of factors, including monetary policy and international trade, not solely by the status of gol ...

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Selects: All the Gold In Fort Knox: Meh

Reasons why the US moved off the gold standard

The hosts Chuck Bryant and Josh Clark humorously introduce the topic and discuss why the United States transitioned away from the gold standard. They delve into the economic implications of this decision and the steps taken throughout history to decouple the dollar from gold.

How linking currency to gold limited money supply and economic growth

The discussion begins with Bryant hinting that the collective agreement on the value of money was a critical factor in moving away from the gold standard. He suggests that, like currency, gold does not have intrinsic value except for the value assigned to it by societal consensus.

Josh Clark elaborates on the limitations of pinning currency to gold, which constrained the amount of currency to the finite amounts of gold available. Clark points out that this limit could hamper economic expansion, and he mentions that the global economy saw growth after the dollar was no longer tethered to gold, indicating that the gold standard was a binding constraint.

Steps taken over the decades to decouple the dollar from gold

Exploring the steps taken over time, Josh Clark explains that the establishment of the Federal Reserve in 1913 marked a significant shift. By only requiring 40% gold backing rather than 100%, it allowed the government to print more money, facilitating trade, employment, and economic growth.

Moving into the 1930s, Chuck Bryant notes that President Franklin D. Roosevelt took critical steps to weaken th ...

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Reasons why the US moved off the gold standard

Additional Materials

Clarifications

  • Under the gold standard, the value of a country's currency was directly linked to a specific amount of gold. This limited the ability to increase the money supply beyond the available gold reserves, potentially restricting economic growth. Moving away from this system allowed for more flexibility in managing the money supply, which could support economic expansion and trade.
  • The Federal Reserve played a crucial role in the U.S. moving away from the gold standard by adjusting the gold backing requirements for the dollar, allowing more flexibility in monetary policy. This shift enabled the government to print more money, which supported economic activities like trade and employment. The Federal Reserve's actions, such as reducing the gold backing percentage, helped to ease the constraints imposed by the fixed gold reserves, promoting economic growth. The establishment of the Federal Reserve in 1913 marked a significant change in how the U.S. managed its currency and its relationship with gold.
  • President Franklin D. Roosevelt implemented policies in the 1930s that aimed to weaken the link between the U.S. dollar and gold. These policies included prohibiting the exchange of gold for dollars and restricting gold hoarding. By preventing these exchanges and hoarding, Roosevelt aimed to reduce the reliance on gold as a backing for the U.S. currency, thereby loosening the connection between the dollar and gold.
  • President Richard Nixon's decision in 1971 to end the direct convertibility of the U.S. dollar to gold marked the end of the Bretton Woods Agreement, which ha ...

Counterarguments

  • The idea that gold does not have intrinsic value is debatable; some argue that gold has inherent properties such as scarcity, durability, and divisibility that have historically made it valuable.
  • The assertion that linking currency to gold limits economic growth is contested; some economists believe that the discipline imposed by the gold standard can prevent inflation and promote long-term stability.
  • The claim that the global economy grew after the dollar was decoupled from gold could be challenged by pointing out that other factors, such as technological advancements and globalization, may have played significant roles in economic growth.
  • The notion that the establishment of the Federal Reserve and the reduction of gold backing to 40% was unequivocally positive could be countered by those who argue that it has led to increased inflation and decreased purchasing power of the dollar over time.
  • The steps taken by President Franklin D. Roosevelt are sometimes criticized for having infringed on individual property rights and ...

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