Trump nominates gold standard supporting Herman Cain and Moore to FED

[devil21]

Being a custodian does not give you control of an asset unless it was set up specifically as a trust. The custodian is responsible for protecting the asset but beyond that cannot do anything it wants with it. A bank can't just clean out your safe deposit box or bank account if they want to. The owner gets to make those decisions (though the custodian may be asked to make any such actions). The Fed is custodian, not trustee, of the Treasury's gold.

https://www.sapling.com/7758362/difference-between-trustee-custodian

Share a link to the legal agreement that the Fed is solely custodian and not trustee? That is the $200 billion question, after all.

And yes, if the contract entered into with a bank says the bank can do whatever it wants with the box contents then it can, indeed, do whatever it wants with it or whatever is instructed to do by other entities. If there is no ownership conferred then how can a bank seize the contents of a box for various reasons? It wouldn't have legal authority to do so and would be required to not honor any such demands by, say, a tax collector or the whims of the legislature.

 

[Zippyjuan]

Share a link to the legal agreement that the Fed is solely custodian and not trustee? That is the $200 billion question, after all.

And yes, if the contract entered into with a bank says the bank can do whatever it wants with the box contents then it can, indeed, do whatever it wants with it or whatever is instructed to do by other entities. If there is no ownership conferred then how can a bank seize the contents of a box for various reasons? It wouldn't have legal authority to do so.

https://www.federalreserve.gov/faqs/does-the-federal-reserve-own-or-hold-gold.htm

Although the Federal Reserve does not own any gold, the Federal Reserve Bank of New York acts as the custodian of gold owned by account holders such as the U.S. government, foreign governments, other central banks, and official international organizations. No individuals or private sector entities are permitted to store gold in the vault of the Federal Reserve Bank of New York or at any Federal Reserve Bank.

A small portion of the gold held by the U.S. Treasury (roughly $600 million in book value)--about five percent--is held in custody for the Treasury by the Federal Reserve Banks, as fiscal agents of the United States. The vast majority of this gold is located in the vault at the Federal Reserve Bank of New York, and a very small portion is on display in several Federal Reserve Banks. The remaining 95 percent of U.S. Treasury gold ($10.4 billion in book value) is held in custody for the Treasury by the U.S. Mint.

 

[devil21]

^^^^
That's not a legal contract specifying terms. That's a website FAQ.

(And the book value is based on $42.22 per oz, not spot price. For those following this thread, they sure have made this shit complicated, haven't they?)

 

[Zippyjuan]

^^^^
That's not a legal contract specifying terms. That's a website FAQ.

Show us the legal contract establishing the Fed as a trustee for the US gold reserves. The Fed says they are custodian. You claim trustee. Show us your evidence.

Let me help. Try this law which transferred the ownership the Treasury- the Gold Reserve Act of 1934: https://www.loc.gov/law/help/statutes-at-large/73rd-congress/session-2/c73s2ch6.pdf

Upon the approval of this Act all right, title, and (,old coin andl bulinterest, and every claim of the Federal Reserve Board, of every 'lritle of Federal ReFederal Reserve bank, and of every Federal Reserve agent, in and epurve nards. et'., 't-'
to any and all gold coin and gold bullion shall pass to and are
hereby vested in the United States; and in payment therefor credits 'resnentsi.
in equivalent amounts in dollars are hereby established in the Treasury in the accounts authorized under the sixteenth paragraph Vol.40,p.23; r.S.C,
of section 16 of the Federal Reserve Act, as heretofore and by this p 287
Act amended (U.S.C., title 12, sec. 467). Balances in such Balances payable in
accounts shall be payable in gold certificates, which shall be in such gold certficates
form and in such denominations as the Secretary of the Treasury
may determine. All gold so transferred, not in the possession of custodyaddelivery
the United States, shall be held in custody for the United States
and delivered upon the order of the Secretary of the Treasury;
and the Federal Reserve Board, the Federal Reserve banks and the
Federal Reserve agents shall give such instructions and shall take
such action as may be necessary to assure that such gold shall be
so held and delivered.

See if you can find "trustee" anywhere in the act.

(And the book value is based on $42.22 per oz, not spot price. For those following this thread, they sure have made this $#@! complicated, haven't they?)

The "book value" in this case is the price of the asset at the time it was purchased. If you bought a car for $15,000, you receipt shows that $15,000. It does not change as the value of the car goes up or down. It is the price paid. The notes the Fed was given in exchange for the gold cannot be sold or redeemed for anything. They are simply receipts. The title was transferred over to a new entity- the Treasury. They just keep the car parked in the Fed's garage.

It is actually pointless that the value of the certificates are still kept listed on the Fed balance sheet.

 

[Krugminator2]

Wow. I didn’t know that Oprah has advanced STEM degrees and actual Federal Reserve experience. If that’s the case, then she might be as qualified as Herman Cain.

A STEM degree means nothing for this job. I assure you I was a far better student than Herman Cain but that doesn't mean I am qualified. I don't care if care if Herman Cain has Federal Reserve experience. That means nothing to me. I have listened to Herman Cain talk about economic matters and I remember his answers from the debates on the Federal Reserve. He knows nothing. There are so many economists that would be actual, real choices. Joe Salerno from the Mises Institute knows infinitely more about monetary policy than Herman Cain. Larry White is a gold standard guy who went to Harvard and worked for the Federal Reserve. He actually devoted his life to monetary policy. Pick him. George Selgin went to NYU and is another person who spent his life studying monetary policy.

And Steve Moore is almost as bad, but at least he is sort of an economist. A 5th tier economist. But an economist at least. Why not pick the best candidates? You have to know Herman Cain is not the best and the brightest for this job.

 

[devil21]

Show us the legal contract establishing the Fed as a trustee for the US gold reserves. The Fed says they are custodian. You claim trustee. Show us your evidence.

Let me help. Try this law which transferred the ownership the Treasury- the Gold Reserve Act of 1934: https://www.loc.gov/law/help/statutes-at-large/73rd-congress/session-2/c73s2ch6.pdf



See if you can find "trustee" anywhere in the act.



The "book value" in this case is the price of the asset at the time it was purchased. If you bought a car for $15,000, you receipt shows that $15,000. It does not change as the value of the car goes up or down. It is the price paid. The notes the Fed was given in exchange for the gold cannot be sold or redeemed for anything. They are simply receipts. The title was transferred over to a new entity- the Treasury. They just keep the car parked in the Fed's garage.

It is actually pointless that the value of the certificates are still kept listed on the Fed balance sheet.

Thanks for fetching that. I always appreciate your eagerness to provide information when challenged. It helps a lot with unwinding this twisted web of legalese that the bankers have devised.

 

[Swordsmyth]

[h=2]Nein Nein Nein: 4th GOP Senator Comes Out Against Cain, Sinking Fed Board Nomination[/h]