Is Gold Confiscation Possible Under Obama?
The United States Government is in trouble. Massive deficits and falling tax revenues are seriously impacting the value of our currency, the dollar. So many are wondering if gold confiscation is possible under Obama.
The only real way to measure the value of the dollar is against a non-fiat currency such as gold. That makes it tempting for the Government to remove the option of people trying to preserve their wealth by converting dollars into gold.
Our current President, Barack Obama, seems to like to compare himself to Franklin D. Roosevelt. Most people in America are totally oblivious to gold as money. Back in Roosevelt’s day they weren’t – gold coins were still in circulation.
In Roosevelt’s day, people did not have the same history to learn from. Americans did not know that many Jews would only escape Germany because of wealth stored as gold.
Roosevelt had them conned
When Roosevelt told the people that confiscating gold was in the interest of the greater good, they believed him and complied. American citizens voluntarily handed over their gold to the government.
Then Roosevelt promptly screwed them. The price of gold had been fixed, and redeemed, at $20.67 per ounce. After the gold confiscation and declaring private gold ownership illegal, the government raised the official price of gold to $35 per ounce.
American citizens received less than 60% of the true value of the gold they turned in. The government painted gold ownership as “hoarding”.
Could this happen today?
While Obama seems to have no problem interpreting the Constitution in his own way, and he even could cite Roosevelt for precedent, I suspect it is not too likely.
Here is why:
- Few Americans own physical gold. Confiscation would not net enough to really make a difference.
- So far, the value of the dollar has not been hit like one might think given all of the stimulus, deficits and outright printing of money. Foreigners see the U.S. Dollar as “less bad” than other fiat currencies.
- The small percentage who do own any physical gold are typically gun owners who feel strongly about the U.S. Constitution and the 2nd Amendment. Ugly confrontations could ensue if confiscation were attempted.
Even though I do not think gold confiscation is something to be imminently worried about, I do not dismiss it out of hand either.
Governments are known for doing stupid things, so we always want to be diligent.
Source:mobilewhack.com
Comments