Tuesday, August 30, 2011

GOLD CONFISCATION


Will it happen again here? First of all, unlike the last time no one owns gold any longer other than the well healed upper class. Its the currency of "Kings" ...remember. We only have so many Kings and they are in the distinct minority. The growing class here are the peasants and they own no gold.

Roosevelt issued and executive order in the Great Depression in an effort to boost velocity of money. Executive Order 6102 was signed on April 5, 1933, by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation.

The order was rationalized on the grounds that hard times had caused "hoarding" of gold, stalling economic growth and making the depression worse. The New York Times, on April 6, 1933 p. 16, wrote under the headline "Hoarding of Gold," "The Executive Order issued by the President yesterday amplifies and particularizes his earlier warnings against hoarding. On March 6, taking advantage of a wartime statute that had not been repealed, he forbade the hoarding 'of gold or silver coin or bullion or currency,' under penalty of $10,000 fine or ten years imprisonment or both." from Wikipedia.

Executive Order 6102 required U.S. citizens to deliver on or before May 1, 1933, all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 per troy ounce. Under the Trading With the Enemy Act of October 6, 1917, as amended on March 9, 1933, violation of the order was punishable by fine up to $10,000 ($167,700 if adjusted for inflation as of 2010) or up to ten years in prison, or both. Most citizens who owned large amounts of gold had it transferred to countries such as Switzerland. Even back in the 30s this was a monster for the feds to enforce. The Gold Reserve Act of 1934 made gold clauses unenforceable, and changed the value of the dollar in gold from $20.67 to $35 per ounce. This price remained in effect until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard for foreign exchange.

Another rumor that no proof exists for was the confiscation of safety deposit boxes by Roosevelt through an executive order. Examination of the actual Executive Order as issued shows that this text never appears in it. In fact, safe deposit boxes held by individuals were not forcibly searched or seized under the order, and the few prosecutions that occurred in the 1930s for gold hoarding were executed under different statutes. One of the few such cases occurred in 1936 when the safe deposit box of Zelik Josefowitz, who was not a U.S. citizen, containing over 10,000 troy ounces (310 kg) of gold was seized with a search warrant as part of a tax evasion prosecution. In 1933 approximately 500 tonnes of gold were turned in to the Treasury "voluntarily" at the exchange rate of $20.67 per troy ounce. from wiki.

Not a bad haul in gold though was it?? 500 tonnes can go a long way in shoring up some shortages in your reserves though.

I don't see your gold getting confiscated but I guess one never knows. There are a lot of ways they can disrupt the trade but ultimately as noted in 1933 it is an unenforcable law in many ways.









23 comments:

  1. Just to note, Gold margin increases occurred on Wednesdays (8/10 and 8/24). Gold is down today and it is Wednesday. Another margin increase today?? We will see.

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  2. GREAT call Doc......PERFECT should give a nice reentry.....for those trading

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  3. took some more off the table in miners ....will hopefully get a nice pullback...otherwise my core will ride....55% cash

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  4. NAZ needs to get over 1600...tough sledding..

    1000 workers at leading Solar panel company in Fremont, Ca...Sorry your all gone...

    http://gigaom.com/cleantech/solyndra-to-file-for-bankruptcy-lay-off-1100/

    Obama praised it a year ago..535 million in work america funds gone...

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  5. Hey it's the new "GREEN" Economy! The first group to stuff the "TAX PAYER GREEN" in their pocket WINS! Everyone else "You Lose! Good Day Sir!"

    Its amazing that all this theft is so freaking blatant!

    Heard on raido this morning that 60 billion has been skimmed for Iraq/Afghanistan rebuilding efforts! Maddening considering folks are going hungry here at home!

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  6. opp's. 6 billion not 60 billion

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  7. Tom its probably closer to 60Billion......btw folks market has reversed and this baby looks SIIIICKKK

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  8. Huge volume issue above spx 1220's.....they will need it to clear the hurdle...could be off obama's speech...

    bonds are saying move down is trap...

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  9. good point but bonds are decoupling in many of these moves......

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  10. kli,

    true...watching apple as it was telegraphing move this morning...

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  11. I wonder if it would be good time to buy into Granite construction, Flour Daniels or infrastructure companies before the bam speech?

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  12. gotta think bout that one chuck......

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  13. nice distribution day joe......hehehehhe

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  14. http://finance.yahoo.com/news/Portugal-govt-cranks-up-debt-apf-1723142399.html?x=0&sec=topStories&pos=5&asset=&ccode=

    deflation coming...

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  15. I must correct myself again.........

    http://www.huffingtonpost.com/2011/08/30/military-spending-waste_n_942723.html

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  16. http://news.goldseek.com/ClifDroke/1314731366.php

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  17. http://www.telegraph.co.uk/finance/financialcrisis/8728628/Euro-bail-out-in-doubt-as-hysteria-sweeps-Germany.html

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  18. Wasn't at Borders but I found House of Bush online at Glyde for some $7 shipped. Thanks for the tip, kli!

    While looking I did pick up "13 Bankers" and "The Great American Bank Robbery" on a whim thanks to the 70% off, dunno when I'll crack those ones open.

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  19. For those who are interested - I posted my outlook for September.

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  20. Morla,

    A book every one must read is the John Perkins book:

    http://www.amazon.com/Confessions-Economic-Hit-John-Perkins/dp/1576753018

    http://www.youtube.com/watch?v=yTbdnNgqfs8

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  21. By the way, THE COMPANY had two options for John Perkins after he decided to publish his memoirs ( Confessions of An Economic Hitman), cancel him permanently if the public cared or became educated about how business is done overseas, OR marginalize him and his book by not allowing majority of the public know about him and his book. The second option was successful. He is well-known in the shadow world, most of the public have not even heard or know who he is. When his book was published, the only MSM which gave him interview time on T.V. was CSPAN II for 15 minutes ( once and no more), not even the regular CSPAN.

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  22. The beauty of the shadow world is that even if one tells the TRUTH to the average SHEEP, they won't believe it and that's the real power behind the shadow world. There is a good reason it's called shadow world, not existing at all officially.

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  23. B. Krasting is sniffing out the mass Fan&Fred refi program that is making rounds in the press...seems plausible...will not help, extend and pretend again...

    massive risks....

    good read on his site..

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