- The central problem—it wasn't much of an audit. To sum it up:
- Representatives of the audited group were allowed to make the rules governing the audit. No outside private experts were allowed.
- Those government bureaucrats involved were inexperienced in their tasks, by their own admission.
- The entire audit of the largest gold hoard ever concentrated in history lasted only seven days.
- Only a fraction of the gold was actually tested. Later, officials put this fraction at just 5%.
- Based on that, the official committee reported that, in their opinion, all the holdings would have matched their records if they'd all been tested.
- If the audit was accurate, the fact remains that almost 80% of it went overseas in the coming years. If the audit was not accurate, the amount of gold lost could have been even more.
If honest money is ever to be seen, we will have to see a complete separation of money and state. The State has had its chance to control money: It has made a mess of it.