US Gold Ownership Rules: Past,
Present, Future.
Gold ownership for US
citizens came into question in1933. The United States was still in
financial turmoil following the 1929 stock market crash. Herbert Hoover
had been replaced as the United States President by recent election to Franklin
Delano Roosevelt. The promise of a “New Deal” was all that
mattered to the American public. Banks all
over the country were going out of business and millions of dollars of gold were
being shipped outside the United
States through the banking conduits in place
at the time.
Prevailing thought was that Gold shipments to foreign
entities had to be stopped. We were using a gold standard to value our money
and a reduction of our gold inventories would surely hurt our recovery. The newly elected government felt it needed
free reign to fix the problem. Radical financial
experiments were going to be tried and the fear of failure was not an option.
Seizure of domestic gold was one of these radical experiments.
Roosevelt
was sworn into office on March 4th 1933. His first financial strategy was to shut down
the banks and all shipments of US
wealth in the form of gold, out of the US borders. No foreign or domestic request
for gold was to be honored until the crisis was evaluated further. This order was
put into effect March the 7th 1933 by calling for an extended
banking holiday. Starting Thursday March 9th, banks closed. In using the trading with the enemy act of
1917 as legal fodder to justify this radical event, Roosevelt was instantly ruler of all things
financial.
Roosevelt
needed to gain public support to continue down this unorthodox path. On March
10th he declared to congress, that the USA was near bankruptcy as the
result of the previous administration’s ineffective policies and over spending.
He built himself up as the only one able to provide a viable solution. Politicians from both sides of the isle were
furious at this verbal affront and the radical use of executive power, but they
had to fall in line as public opinion swayed with news of the president’s declaration. Some
politicians commented that like it or not going against the president was like
declaring war on the United
States. It was carrier suicide to stand in Roosevelt’s way. When banks reopened, people were obligated to
deliver to banks, their gold for confiscation.
With the banks closed, the president was able to get
legislation passed in record time. Panic
stricken politicians were willing to vote on nearly anything Roosevelt suggested, to get the financial
system on its feet again.
Pertaining to gold, the Presidential
Executive Order 6102 of April 5th 1933 changed the rules of gold ownership for the next 30 years. The
executive order was a confiscation of gold demand. Gold was repurchased at $20.67 when it was
worth $35.00 per ounce. Roosevelt increased the government's gold
assets, inflicted losses of 40 percent on gold owners and stripped them of their
gold. The only gold exempt from this order were special collector pieces and
limited amounts for making or owning jewelry.
MODERN GOLD OWNERSHIP
Gold became legal for private ownership in the USA
during the Nixon administration starting August 15, 1971 . This was done to take away the implied
backing of the US dollar, with gold. Previously,
Roosevelt had
confiscated gold and set the price to $35 per oz.. Nixon changed that backing and the USA dollar became a fiat currency backed only by
the full faith and credit of the US government. The general belief
that prevailed in the US
government at the time was that the dollar could be sent to the nations of the
world in fiat form and they would accept it with little reservation because:
1. The
USA
was setting up central banking arraignments around the world.
2. Gross
Domestic Product (GDP) of the USA
was strong.
3. Oil
cartel negotiations were persuading the world sale of Oil to be sold only in US
Dollars.
4. The
US Military strength was a great negotiator.
5. Pay
offs around the world in the new Fiat currency forced receiving nations to go
along with the fraud.
Looking back, the success of this concept surpassed even the
wildest of imaginations. There is so
much demand for the US Dollar world wide that the mighty Dollar has become a
natural resource. It does not make
common sense that an invention like a paper $100 bill could be in such demand
when not backed by an asset, but the USA can print up money with out any
accountability, it seems. The world gets
behind the farce. USA
bond auctions are strong. The dollar is in extremely high world wide demand and
not even the Euro can surpass the US Dollar as the world wide currency of
choice.
Many people have questioned the wisdom of owning a fiat
currency. Looking outside traditional
methods of wealth building and wealth preservation many people have found gold
ownership as a possible advantage. If the US dollar can be printed like a
natural resource then ask the government to stop charging taxes. It can’t be done. The United States can not pay its bills
with out tax revenue. Fiat currencies
are a farce. It is now time to go back
to our own GOLD STANDARD as
individuals.
