Alex Pollock: Confiscation of gold by the federal government -- a lesson

Section:

By Alex Pollock
Real Clear Markets, Washington
Thursday, January 25, 2018

Historically as well as now, people in America tried to protect themselves against the government's devaluation of their dollars by holding gold; and formerly, by buying Treasury bonds which promised to pay in gold. The fundamental thought was and is the same that many holders of Bitcoin and other "cryptocurrencies" have now: Hold something that the government cannot devalue the way it can its official currency.

Unfortunately for such an otherwise logical strategy, governments, even democratic governments, when pushing comes to shoving, may use force to control and even take away what you thought you had.

The year 1933 and the new Franklin Roosevelt presidency provide vividly memorable, though little remembered, examples.

First the U.S. Treasury defaulted on its promises to pay gold bonds in gold; then under notable executive orders, the U.S. government confiscated the gold of American citizens and threatened them with prison if they didn't turn it in. It moreover prohibited the future holding of any gold by Americans, an outrageous prohibition which lasted four decades, until 1974.

All this may seem unimaginable to many people today, perhaps including Bitcoin enthusiasts, but in fact happened. Said Roosevelt in explanation, "The issuance and control of the medium of exchange which we call 'money' is a high prerogative of government." ...

... For the remainder of the commentary:

https://www.realclearmarkets.com/articles/2018/01/25/confiscation_of_gol...



ADVERTISEMENT

Buy, Sell, or Store Precious Metals with Money Metals

Money Metals Exchange, a national bullion dealer recently voted "Best in the USA" by a worldwide ratings group --

https://www.moneymetals.com/news/2015/02/03/worldwide-ratings-organizati...

-- is a great low-cost source for precious metals coins, rounds, and bars. Money Metals also pays handsomely when you wish to sell your precious metals.

Shop online with Money Metals Exchange here --

https://www.moneymetals.com/buy

-- or by calling 1-800-800-1865.

Meanwhile, the Money Metals Depository --

https://www.moneymetals.com/depository

-- has opened the largest Class III vaulting facility in the northwest United States and is offering fully segregated storage at the lowest rates in the industry.

Money Metals Depository's maximum-security vault is located in western Idaho, a safe distance from Wall Street, Washington, D.C., politicians, banks, and large, crime-ridden metropolitan areas. The online tools and account notification procedures of the Money Metals Depository give you complete transparency with your holdings all the time -- and you can buy or sell from your depository account with just a few clicks of the mouse. Get started here:

https://www.moneymetals.com/depository



Join GATA here:

Mining Investment Asia
Monday-Wednesday, March 26-28, 2018
Marina Bay Sands, Singapore
https://www.mininginvestmentasia.com/

Mines and Money Asia
Tuesday-Friday, April 3-6, 2017
Hong Kong Convention and Exhibition Centre
https://asia.minesandmoney.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16