The Federal Reserve's $2.5 Billion Renovation: Just One Day's Interest on the $36 Trillion National Debt
by Jon Forrest Little
Disclaimer: My opinions are not “necessarily” the opinions of our sponsors
Prior to this life as a precious metals news reporter, I worked for 17 years in architectural sales in the clay-fired masonry business. I also sold architectural stone products such as Arriscraft limestone manufactured in Hamilton Ontario and Macon, Georgia. My focus was large-scale construction, which included:
Universities
Hospitals
Government buildings
Mixed-use Retail and Residential
Multi Family
Military
My career in architectural sales has been marked by monumental projects, such as setting a campus standard for the Colorado School of Mines, the University of Denver, the University of Colorado at Boulder, and Fort Bliss in El Paso.
I have sold over 500 projects, and I believe I have an above-average grasp of the building envelope and an understanding of calculating costs per square foot.
I was most proud of two prestigious jobs: my work with New York's H + L architects to create a seven-color brick blend to look like native sandstone for the University of Colorado's Biotechnology project. This project was built during the rock bottom of the Great Financial Collapse:
Groundbreaking in September 2009
topping out in November 2010
and opening in 2012
I also worked at St Joseph Hospital in Downtown Denver with ZGF Architects and Davis Partnership.
The University of Colorado Biotechnology project cost $185 million, and The Saint Joseph Hospital Project cost $623 million to build: (Later in this article you will read how the Federal Reserve’s absurd renovation project has now inflated to $2.5 Billion dollars.)
Who would have guessed The Federal Reserve would spend so much money on their own renovation?
Back to normal world explaining typical construction methods and costs for high end construction projects
The St Joseph hospital is 831,321 square feet, which is about the size of seven football fields.
The hospital, a testament to modern healthcare design, boasts 365 private patient rooms, 3.5 acres of parks and gardens, and is 41% more energy efficient than the previous hospital.
The hospital opened on December 13, 2014, just under three years after construction began on December 17, 2011
Hospitals, with their complex requirements and specialized equipment, are among the most challenging and expensive buildings to construct. Operating rooms, in particular, are a significant cost factor, with high-end models reaching $1 million.
These rooms require advanced ventilation systems, specialized lighting, and sterile environments. Medical equipment like MRI machines can cost between $1 million to $3 million for new, high-end systems, contributing significantly to overall hospital construction costs.
Getting these projects under contract
One of my strategies was to go to the most favored buildings on the campus and match the stone to a proposed brick blend.
If you could convince the architect to use brick instead of stone, you would be in the best position because now you are considered someone that can help the owner, architect and contractor save a lot of money.
Through a term called “value engineering” you could start a conversation with the architects and your decision makers would listen to every word.
Stone masonry is very expensive (about 4 to 5 times more) than brick, mostly because masons are lucky to produce 20 square feet per day while brick (still slow) goes about 4 to 5 times quicker.
First step: Find the color and texture theme the architect favors
University of Colorado Economics Building. Original Campus. Built in the 1930s by legendary architect Charles Z Klauder (same architect who designed the University of Pittsburgh's Cathedral of Learning and projects at Yale, Princeton and other collegiate masterpieces)
Second step: Save the owner money
7-color brick blend, by varying textures and colors and pulling out random brick, the building from the street view looked like the native pink-hued sandstone stone sourced from the nearby Lyons Colorado Quarry.
The Maestro and his helper
A skilled mason (we called the maestro) and laborer can install approximately 15 to 20 square feet of natural stone veneer per day. In contrast, the same team can lay about 75 to 100 square feet of modular brick in a day.
This significant difference in installation rates is due to several factors. Natural stone requires more careful selection and fitting of each piece, as the stones vary in size and shape. It's also generally heavier than brick, which slows down the process. Additionally, stone installation typically demands more expertise and artistic judgment from the mason.
Modular bricks, on the other hand, are uniform in size and shape, allowing for faster placement. Their standardized dimensions make the installation process more straightforward and efficient.
The choice between stone and brick often depends on the project's specific requirements, including aesthetic preferences, budget, and timeline. While stone offers a unique, natural look, brick provides a more cost-effective and time-efficient option for larger areas.
What does this have to do with Silver and Gold?
Apologies everyone but I am a firm believer in context
Many of you know that I just returned from Washington, D.C., last week. While my wife wanted to visit some art museums and have our son see the Lincoln Memorial ( and my son wanted to visit some skate shops ), of course, I cooperated with my family's requests.
However, I did have a modest counteroffer. I screamed, "I just want to visit the inglorious Federal Reserve."
I took this disturbing photo a week ago today
Disclaimer: This content may contain disturbing or graphic images that some viewers may find unsettling. Viewer discretion is advised.
The Cost to “Renovate” the Federal Reserve has INFLATED to $2.5 billion.
What’s sickening is that this very exorbitant construction cost is less than just one day of interest servicing the US debt.
The Federal Reserve is undertaking a massive renovation project for its headquarters in Washington, D.C. Originally estimated at $1.9 billion, the cost has now ballooned to $2.5 billion.
The project involves gutting and renovating two of its three adjacent office buildings, with completion expected in 2027
Gold Drops like a Rock when People Trust the System
It skyrockets to the Moon when People Don’t
The U.S. national debt has reached a staggering $36 trillion, resulting in interest payments of approximately $3 billion per day.
This massive debt burden has made interest payments the largest line item in the federal budget, surpassing even defense spending and Medicare.
Despite the severity of this issue, it's notably absent from political campaign discussions and advertisements for presidential and congressional candidates.
As confidence in the U.S. dollar wanes due to this unsustainable debt situation, gold and silver will stampede north and continue their bull run.
Gold and Silver serve as safe-haven assets and stores of value during times of economic uncertainty. Investors, individuals, and even nations are increasingly rushing to gold and silver as trusted financial instruments to hedge against currency devaluation and economic instability.
to be continued. I have some insight as to why the 2.5 Billion dollar construction price-tag.