This Is What Happens If Fort Knox Gets Audited | Alasdair Macleod & Michelle Makori (Pt 2/2)

Overview

The video discusses renewed calls to audit the United States’ gold reserves at Fort Knox and uses that issue as a broader lens for arguing that the U.S. dollar and the fiat monetary system are nearing collapse.

Fort Knox Audit: Why It’s Back in the News

Renewed political pressure

The segment centers on President Trump calling for a physical audit of Fort Knox gold reserves. Key points include:

• The U.S. is said to hold about 147 million ounces of gold at Fort Knox.
• Critics argue the last comprehensive independent physical audit occurred in 1953 (under Eisenhower), despite claims of internal accounting.
• The debate has been energized by public remarks from Elon Musk and repeated Trump comments, including references to verifying that the gold is actually present.

Legislative efforts

Two transparency bills are described as stalled in Congress:

• Senate: Gold Reserves Transparency Act by Senator Mike Lee Requires a comprehensive audit (GAO + independent auditors), including physical testing and inventories across storage locations.

• House: Companion legislation by Representative Thomas Massie Calls for disclosure of long-term transactions involving U.S. gold reserves (e.g., leases, swaps, pledges). While Massie has lost reelection, the issue remains.

Presenter’s Core Claim: A Full Audit Likely Won’t Happen

Alasdair Macleod argues an audit won’t occur, primarily because:

1. Risk to dollar legitimacy: The Treasury’s post–Bretton Woods stance is that gold is no longer central to the monetary system; auditing gold could undermine the dollar’s credibility.

2. Incoming officials stop the conversation: He claims successive Treasury leadership (specifically referencing former Treasury Secretary Scott Bessent) effectively shuts down audit efforts.

3. Suspicion that not all “held” gold is actually there: Macleod argues that a large portion of the gold reportedly held may be missing due to historical leasing/sales and out-of-custody movement. He cites an analyst (Frank Veneroso) who concluded that a significant share of central bank gold may have been leased/sold without returning.

Alleged History of “Missing” Gold and Where It Went (International Angle)

The discussion frames gold-leasing/sale as part of a wider pattern:

• Macleod suggests the gold may have been acquired by China (and possibly others) during major periods of gold market expansion.
• It references widely reported “missing gold” cases (e.g., Gaddafi, Saddam Hussein) and implies governments have incentives to control or appropriate gold.
• Examples of difficulty repatriating gold are mentioned (e.g., the Bundesbank’s delayed return of gold from U.S.-linked custody), supporting the idea that gold custody/ownership records may lack transparency or move more slowly than expected.

“Unintended Consequences” of Auditing: What China and Russia Would Do

A major analytical thread is that an audit would create incentives for China and Russia to reveal their true gold holdings.

Macleod argues they could disclose holdings in ways that avoid accusations of destabilizing the international financial system. He estimates:

• Russia: Could disclose gold holdings totaling around 12,000 tons, combining sovereign wealth fund and central bank figures presented in the discussion.
• China: Would likely reveal more than currently assumed, strengthening the argument for a major shift toward gold.

China’s Plan: Yuan Backed by Gold (and Readiness to Shift Timing)

The audit debate is tied to China’s broader monetary ambitions:

• The segment highlights Xi Jinping remarks (via a party publication) about the yuan becoming a reserve currency, suggesting a clear direction of travel.
• Macleod claims China is laying groundwork via gold storage systems (e.g., SGE vaults in Hong Kong and Saudi Arabia) that could enable gold-in/out exchange for yuan to support trade settlement.
• He suggests China could choose a moment of stress—such as when U.S. bond demand weakens and U.S. Treasury yields rise—then stabilize without being framed as “attacking” the system.

Mechanism and Forecast: Why the Dollar Is Headed for Collapse (Macro Argument)

The most forceful arguments are macroeconomic and social-risk projections:

• Macleod repeatedly predicts hyperinflation, social unrest, and street chaos, arguing collapse could occur in 2–3 years (and certainly within a longer window, referenced as “within 10 years” in his broader framing).
• He argues the U.S. is in a debt trap: if the economy slows, the government cannot sustain interest payments; investors demand higher yields, worsening the debt dynamic.
• He claims Western fiat systems face compounding shocks from:
  • Higher commodity/food prices
  • Geopolitical disruption
  • Supply chain constraints, including impacts on fertilizer and food output
  • Potential climate volatility (La Niña discussion), which he says could affect food stocks

War/Geopolitics and Monetary Power

Toward the end, the conversation links monetary confidence to geopolitical events:

• It asserts the petrodollar system is effectively “dead,” and that oil pricing shifts (e.g., Saudi selling oil in yuan) reflect declining dollar dominance.
• It also frames U.S./Iran/Ukraine dynamics as partly about power competition over energy and logistics, though the exact military assessment remains speculative in the dialogue.

Closing Perspective: AI Won’t Save the Monetary Trajectory

When asked whether AI productivity gains could “save the day” for the U.S., Macleod responds negatively/dismissively, arguing AI may reduce jobs and that manufacturing competitiveness remains an issue.

Bottom Line

The presenters treat the Fort Knox audit debate as a symbolic flashpoint for a larger thesis:

• Fiat currencies are losing faith
• Gold demand is rising
• Geopolitical competitors are positioning for a post-dollar environment

In this view, an audit would likely expose or accelerate confidence problems—yet it’s expected not to happen due to political and financial incentives against it.

Presenters / Contributors

• Michelle McCrory (host/presenter)
• Alasdair Macleod (economist, monetary historian, precious metals expert)