“Why Did the Government Steal Our Gold in 1933…” an essay by Brian at FG

Today’s Guest Saturday post comes to us from Brian of the Frankenstein Government blog. Brian raises a subject that most never think about; but maybe they should. He published this article originally on November 5, 2012.

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Why Did the Government Steal Our Gold in 1933…

…and more importantly, how will they do it again?

I don’t know if any of you have been watching this, but a number of countries are repatriating their gold. Bringing it home from money center places where it is stored, places like London and New York City. Gold is a medium of exchange and collateral. It is and has always been, real money. In the old days when we actually backed our currency with gold, trade imbalances were settled with gold. Rather than send the heavy metal to and fro- we simply added and subtracted reserves in places where international commerce was conducted. That’s why we are holding vast amounts of the world’s gold.

But since we no longer have a gold standard (1971) and today’s trade imbalances are settled in various currencies at various rates of exchange- why do we still have other countries’ gold? That is a very fair question indeed. The forty year question. It is also a question that countries are beginning to ask themselves. Venezuela has already repatriated nearly 100 tons. But the real biggie, and the reason I am pointing this out is that suddenly Germany has called for an audit of it’s gold. Just the gold held in New York. Weird huh? Remember Ron Paul asking about an audit at Fort Knox?

Interesting. Personally, I believe it should be perfectly acceptable to audit your own gold. In fact, I would certainly do that so that I could prove the existence of and know the exact tonnage before repatriating it.

Is there a chance Germany’s gold is missing? Yes there is, but that is another subject entirely. Why now? Why after 40 years is Germany suddenly interested in it’s gold in the midst of the euro crisis?

The timing makes sense. In fact, I believe Germany may well be positioning themselves for an exit out of the euro and back into the deutschmark. Backing their new currency with gold. Germans are not idiots and they certainly show great fiscal restraint and acumen. Germans know money.

In 1933, The United States government seized all of the gold held in private hands and made it illegal to “horde” it. Ostensibly, they had an excuse. Currency was minted and backed by gold. The US Treasury had the right to withdraw it’s use of gold and use another medium of exchange. Of course, this was simply an excuse to seize all of the gold and inflate away debt by printing unbacked dollars. Interestingly enough, in this link that I provide, the government telegraphed it’s intentions to bankers. Bankers were able to “front run” the impending seizure and make enormous profits. http://jessescrossroadscafe.blogspot.com/2009/01/last-time-fed-devalued-dollar-to-save.html They did the same thing recently when the Federal Reserve Bank announced it was buying treasuries. Large banks simply went out and bought the maturities that the Reserve Bank was going to buy, running up the price and selling at a profit. Of course all of that conduct should be illegal- but it is not. In the end, the taxpayer pays. At interest. Unfortunately, nobody seems to give a shit. When you have that level of apathy, with an idiot public glued to their cellphones, it can only be a matter of time before the criminal banking class in this country turns us into a Banana Republic. They’re doing it now. Without fear of criminal charges. Just look at the outright theft (1.6 billion) of client accounts at MF Global.

That’s where we fit in.

This time around the government has no excuse to seize gold and silver. None. They have no claim, no standing. But that doesn’t mean they won’t try to take it and that certainly doesn’t mean they won’t try taxing you to death as they print and print and print- trying to avoid an inevitable debt collapse. They may try to tax all transactions involving precious metals because the one thing that both the bankers and the government fear and hate- is competition from precious metals. If they control the medium of exchange- they are guaranteed their cuts. When citizens start bartering, trading labor, using precious metals to settle debt, and not reporting income producing activities, bankers and government have a problem, don’t they? They get cut out.

Remember the Magna Carta? The Boston Tea Party? Eventually greedy men and their greedy ways get confronted with the barrel of a gun. Please don’t think that can’t happen again.

The easiest and safest way to transfer wealth without paying taxes is through the use of valuable commodities that the government cannot track. Think about that. You use your capital to purchase precious metals. Who knows how much you have? You protect your heirs from the death tax. More importantly, you do not enrich a voracious government who wastes your work product by delivering it to greedy, thieving bankers.

If it’s in the bank- it ain’t yours. Bet me when I say possession of precious metals is still- 9/10ths of the law just as it was in 1933. They closed banks back then and just took it out of safety deposit boxes. It’s gonna be a little harder for them to pull that shit again.

Pay attention to what is going on in the world right now. (The media sees no significance in it as long as they can garner a bunch of hits by showing some bimbo or celebrity cleavage.) The world is broke. Governments and bankers are going to try and steal every dime that they can. Gold is going to become the international currency once again and that reality is unfolding right in front of your eyes. Those few eyes that are not distracted.

I wouldn’t want to get caught 100% invested in asswipe when the implosion happens. Watch for precious metals to swoon right after the election. Be a buyer. Because two months later- the fiscal cliff happens. The debt ceiling will go up. They will kick the auto tax cuts down the road. (remember that super committee bullshit?) Everything that happens post Jan. 2013 is going to be good for gold. I believe that and it is certainly just my opinion. Don’t discount the efforts of those who will try every dirty trick to postpose the inevitable. After 5 years on the sidelines, I am back in. They have been kicking this can down a very long road. In 2013, we may just run out of road.

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11 thoughts on ““Why Did the Government Steal Our Gold in 1933…” an essay by Brian at FG

  1. True, RM…just like Brian can! I think I’m too stupid to play this game. Hording gold at my house doesn’t seem feasible somehow. I can’t eat it, so the farmer up the road who has chickens would be rich from my buying eggs, I guess. I don’t doubt Brian’s plan…probably very smart. I just don’t know how to do it.

  2. “They closed banks back then and just took it out of safety deposit boxes.” I have never heard that story. How about some documentation, please.

  3. Bob…In 1933, bankers screwed the pooch. There were bank closures everywhere and people were losing their money. This was not brought about by people- it was brought about by greedy thieving bankers.

    This was part of the law that the great socialist, FDR signed. Section 3. To authorize the Secretary of the Treasury to order any individual or organization in the United States to deliver any gold that they possess or have custody of to the Treasury in return for “any other form of coin or currency coined or issued under the laws of the United States”.

    Thus they outlawed gold. It was unusable. People were forced to trade it for currency. Vault rules were different back then also.

    Here is the documenting link. Paragraph 4. http://jessescrossroadscafe.blogspot.com/2009/01/last-time-fed-devalued-dollar-to-save.html

    1. Thanks for the reply and the link. However, it didn’t answer my specific question about “… just took it out of safety deposit boxes.” The reason I asked is that this seems to be a popular story, but I have found no actual occurrences of the Feds going in and rousting all the safe deposit boxes for gold coin. I am not saying it didn’t happen, but it sounds like the kind of thing we call an urban legend, today.

      The real crime in my opinion is that the Feds took gold from citizens at a little over $20 per ounce, and then promptly priced gold at $35 per ounce after it was all in the treasury. That’s where folks got screwed, and FDR should have been impeached for that single act

  4. So consider what happened, for example, in the 20th century. Gold was taken from the people by Lenin in Russia, Mussolini in Italy, Hitler in Germany and Roosevelt in the United States. Why did they do it? It was to increase the power of the State by taking money that government can’t control – namely gold – out of the hands of the people.

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