Marc Faber: Gold Will be Confiscated When This Happens
by Grams Gold The astronomically high $18 Trillion dollar US debt is a very big problem. The government keeps on spending more and more and asking for higher budgets – and getting them. So where will all this money come from?
Even if they taxed everyone over 75% of their income, imposed egregious taxes on practically everything, it still won’t be enough.
Bank accounts, IRAs and pensions are being eyed as the next confiscation scheme. Even that won’t be enough. Why not? Let’s look at history.
Say, like in 1933, they paid $20 per ounce of gold that people held, and after they have collected most of the gold – of course not the gold that was held by government officials, or to precisely say “by corrupt government officials,” because they’re all corrupt – they revalued the gold to $35. So the investor lost out.
- Forced everyone in the nation to hand their gold over to the bank for only $20.67 per troy ounce.
- Made it a criminal offense for any individual who was found in violation of this order: $10,000 fines, 10 years in prison, or both.
Once the gold was effectively confiscated from the people and was illegal to own, the government raised the value of gold to $35 per troy ounce.
What this did was lower the value of the dollar instantly by 40%. This made it even harder for the people to survive in what was already a Depression. The scary thing is that Bill is still on the books. The Emergency Banking Relief Act of 1933 was never repealed.
And I think what will happen, the US will eventually, under some kind of an excuse, whether it’s terrorism or whatever it is, expropriate gold.
And then they say to the ECB, “Well, because we do it, you also should do it,” and the Draghi-type of – I don’t want to say what I think of him, but I say, Draghi-type of personalities, they’re saying, “Yeah. Yeah. We’ll do it also,” and then the Bank of England, of course, will do it also.
Then they knock on the doors of the thrifts and say, “You thrifts, you also have to do it,” and the thrifts, they have no backbones anymore. The thrifts will say, “Okay. We’ll also do it.”
And so the threat is really for an investor, is where do you store your gold? Because if you have it in a bank or in an ETF, it may be taken away….When the US knocks on the door of Canada and says, “You have to do the same,” the Canadians will also say, “Yeah. Okay.” ‘
Gold must be stored out of the country in a secure place.
The “run on banks” that required Gold and Currency reserves to dwindle had caused what Roosevelt coined a “bank holiday”. It was only his fifth day in office when FDR forced through Congress the Emergency Banking Act (bill H.R. 1491).
Nobody knew who authored the Law. In fact, Congress was never given a chance to read the Bill. (Anything sounding familiar here?) The Bill was passed without taking a roll call vote. It was assumed that Congress should just do whatever the President wanted them to do. At 7:30 that night the Bill passed the Senate and The President signed it into law.
On April 5, 1933 the President issued executive order No. 6102, also known as the 1933 Gold Confiscation. This value of $35.00 per Troy ounce remained the value until August 15, 1971, when President Richard Nixon took the Nation completely off the Gold Standard.
Limits on civilian gold ownership ended on December 31, 1974 when President Gerald Ford signed a bill legalizing private ownership of gold coins, bars and certificates.
It is blatantly obvious that government will sacrifice personal liberty in the name of national security. It is also blatantly obvious that we will encounter another financial crisis, which will be worse than 2008 and even the Great Depression. What makes us think that the government will not impose a gold confiscation?
With all the world currencies in trouble, there is much talk about enacting a new gold-backed currency. Seeing that the US has literally “no gold”, it would be desperate to come up with what it needs to compete with other countries that have thousands of tons of gold. Namely, China, Russia, Eurasia and the BRICS alliance.
And where does the US look when it needs something that it cannot produce? That’s right, to you and me. It will probably occur in this order: