I think you're just rambling. Our currency isn't gold backed -- who cares how much the US govt. has in gold repositories and why does it need to be checked?
I think you're just rambling. Our currency isn't gold backed -- who cares how much the US govt. has in gold repositories and why does it need to be checked?
The US economy may be fucked up in many ways, and may face some harsh transitions if it can no longer rely on the strength of the dollar as an international currency, but it is still a large economy. The loss of that strength will not magically result in the dollar having "no backing".
Certainly, if the dollar was replaced by the RMB internationally, the dollar would start to drop against other currencies - until it reached a realistic equilibrium point.
Which, it turns out, works just fine -- the belief that gold has value is roughly as magical as the belief that saying some words can turn wine into blood (and a prime sign of religious dogma in both cases).
The "conspiracy" theory goes that this gold has either been loaned (that's why Ron Paul phrased his question to also check if they're "obligated") or sold to drive down gold price thereby making dollars are more attractive investment than gold. Hence the call for an audit. The "conspiracy" theory further suggests that all the world's central banks are doing this.