Gold Confiscation and the Weakening Dollar
by Alex Panameno
07/13/2010
Bankrupted societies dating back to Roman times have one thing in common, hyperinflation due to uncontrolled deficits and the mass production of currency.
The critical question is, can this happen to America?
Could the United States currency really fail?
It's happened more than once. Two different United States currencies have failed; the first was the Continental Currency during the Revolutionary War, and the second was the
Confederation Note during the Civil War.
Yes, our currency has failed before, but the current policies set in place directly ties the U.S. Dollar to the Federal Reserve. Could Bernanke and the Federal Reserve really fail?
It's happened more than once.
Our country has had two previous Central Banks (AKA: Federal Reserves), that failed miserably. The first U.S. Central Bank was called "Bank of the United States" (no relation to Bank of America) it's rein was short lived lasting only 20 years from 1791 to 1811. The second US Central Bank was also called "Bank of the United States" which collapsed in exactly 20 years (1816-1836).
Our current Central Bank (Federal Reserve) learned from the mistakes of its two predecessors.
#1-Changed their name; they do not use "Bank of the United States." That would be like another energy company naming themselves ENRON. The most important lesson, is #2; Rob the people of their wealth.
You see, our current Federal Reserve failed just like the two previous central banks. The scary coincidence is that it too failed in exactly 20 years. The Federal Reserve was formed in 1913 and its failure date was 1933.
The two braking points or failed test for our current central bank was the 1929 stock market crash, and the "bank run" of 1933, which prompted FDRs "Bank Holiday." To those not familiar with the term, it was no holiday at all. Former president FDR used his power to enact an executive order and shut down all banks for weeks.
People were losing faith in the banking system and in mass numbers decided to retrieve their money from banks. We all know banks don't have our money at hand. Just look at what happened recently to Indymac with depositors still fighting to get their money back.
The scary similarity is that we are currently going through the worst banking crisis since the Great Depression. It makes the S&L crisis look like a walk in the park. The only difference is that today main stream media will simply not report the crisis. Just take a look at the list of failed banks.
I'm sure you haven't seen the list on TV.
The only reason our current central bank , better known as the Federal Reserve came out of bankruptcy is because they, along with Franklin Delano Roosevelt (FDR) robbed hard working Americans of their wealth/gold.
Gold was confiscated under executive order, through the 1933 Gold Confiscation Act.
You can read the copy of the presidential executive act here.
The 1929 stock market crash was a critical point in the start of the Great Depression. The "only" way to get out off an economic depression is to get people to spend money and get commerce moving.
Money was tied to gold; therefore financial resources were limited. Gold cannot be mass produced out of thin air...but paper money can.
Gold Bullion was taken from the American public, and replaced with paper.
The Federal Reserve took the liberty of printing what was then an enormous amount of paper money, which was given to banks before they resumed business after FDR’s "Bank Holiday".
The Federal Reserve injected instant inflation into the monetary system.
Banks started issuing money through the expanded practice of fractional banking, a practice that throughout history crippled societies dating back to Roman times.
Can Gold Bullion be confiscated?
Confiscation has happened three different times in our country’s history.
It has always happened when there are high-unsustainable national deficits and war (hint, hint, War on Terror). Deficits were running rampant during the Revolutionary and Civil Wars. FDR with the help of the Federal Reserve learned the lessons taught to them by the two previous central banks. Gold was confiscated before a large deficit occurred. FDR went into office with a national debt for 1933 of $22,538,672,560 and in 1941 at the beginning of his second term, the debt rose to $42,967,531,037. Pennies, compared to Obama’s spending spree.
Will all gold be confiscated?
No, out of the three times gold has been confiscated, only bullion was confiscated from the American public.
It is up to the American public to contact our elected officials and demand a stop to this administrations socialistic policies.
All the bailouts, borrowing from China, and trillion dollar deficits are only guaranteeing the death of our current currency.
Everything you own is denominated in U.S. Dollars. When the price of the U.S. Dollar crashes so will everything we own.
It's time to act and demand a stop to socialistic policies.
Editor's Note:
Thanks to Alex Panameno for writing this article. If you are interested in purchasing gold or other precious metals, please take advantage of this free information. Click here.
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Alex Panameno is an experienced trader of Financials, T-Bonds, Currencies and Precious Metals. Currently, he is the Trading Director of Goldworth Financial and is a registered C-P Broker on the New York Mercantile Exchange
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