Wednesday, May 20, 2009

Could President Obama ban U.S citizens from holding gold?

Back in 1933, at a time of economic crisis, President Roosevelt forced U.S. Citizens to sell their gold at $20 an ounce - and then subsequently revalued the metal to $35. Could President Obama, a Roosevelt disciple, have similar plans in mind.

Author: Lawrence Williams
Posted: Wednesday , 20 May 2009


Whether one believes in the GATA premise that the gold price is being held down by a gigantic conspiracy between the World's Central Banks, Governments and some major banking institutions or not, there is little doubt that governmental-initiated currency manipulation does occur, and if one looks at gold as money then it is logical that some degree of manipulation here also takes place at Central Bank level. Whether one can call this a global conspiracy, or part of the general process of stabilising currencies and exchange rates, depends perhaps on which side of the fence you are sitting. In a way this is similar to the terrorist/freedom fighter debate!

But, history does tell us that the US government, in the days of a fixed gold price, did intervene in a very direct manner with President F.D. Roosevelt banning the "hoarding of gold coin, gold bullion, and gold certificates" and thus forcing US citizens to sell to Federal Reserve at $20 an ounce. Subsequently the Fed raised the price of gold to $35 an ounce.

President Obama is known to be a Roosevelt disciple and he must be well aware of what was done at the time, given the parallels of the U.S economy between the present time and the 1930s. There must be a temptation to try the same tactic, and then raise the gold price dramatically in a move which would certainly support reserves within those nations which still have major gold holdings.

Indeed, if monetary authorities worldwide sees the gold price really start to take off, this kind of process has to become even more of a temptation as a big global move into gold could exacerbate the global financial crisis in that it would show that people no longer have faith in the economic status quo (it can be argued that already they don't) and the the current crisis of confidence could be severely worsened by such a rush
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  1. Very interesting article. May I ask where you got the image??

  2. to Ted Keylon about the image of Obama , I am only linking to it from the internet , it is not mine ...and I found it just by google searching you can ask the owner not me...

  3. I wonder how the people would respond to a gold seizure. From what I understand, in the 30's, most people did not own gold, so no one (but those who had some) really cared. I suspect it would be the same now. Those who have any gold in their possession would simply be painted as hoarders, speculators, and greedy capitalists by the mainstream media. Simple class warfare technique to get the majority behind the confiscation.

    As a second option, rather than seizing gold, the government may simply restrict, by law, its sale on the open market, making it illegal to transfer gold from one person to another. (Suggested possibility by Hal Turner on May 20, 2009 based on information from recent Bilderberg meeting)

    Whatever the case may be, backing the US dollar with gold(or other 'new' currency like SDR, Amero?) seems to be necessary in order to alleviate some of America's debt. Doing something like this would instantly devalue the USD (as they did in the 30's by 40% virtually overnight).


  4. Quoting Ellen Brown, Web of Debt, page 158 f.:

    "England’s pound sterling had been removed from the gold standard in 1931, prompting foreigners to turn to the United States for gold at a time when Federal Reserve
    Notes were 40 percent backed by that precious metal. This meant that for every $2 cashed in for gold, another $3 in loans had to be called in by the banks. The run on the nation’s gold stores dangerously shrank the money supply by shrinking the dollar’s gold backing.
    If everyone holding dollars had been allowed to trade them in for gold, no reserves would have been left to back the dollar, and the money supply could have collapsed completely. To halt that alarming trend, in 1933 Roosevelt pronounced the country officially bankrupt and declared a national emergency. Then, with a wave of the
    Presidential fiat, he changed the Federal Reserve Note from a promise to pay in gold into legal tender itself, backed only by "the full faith and credit of the United States." The price of gold was subsequently
    raised, reducing the value of the dollar so that more goods could be sold abroad. But first, all gold coins, gold bullion, and gold certificates held by the public were ordered turned over to the U.S. Treasury, under threat of fines and imprisonment. The point of this exercise was evidently to prevent a windfall to gold owners when the price of gold went up. Private gold owners were paid $20.67 per ounce in paper Federal Reserve money for their confiscated gold. Then the price of gold was raised to $35 per ounce. The result was an immediate 40 percent devaluation of the paper money the public had just received for their gold. The Federal Reserve also had to turn in its gold, but the Fed was paid in gold certificates (paper money redeemable in gold)."



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