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Not enough of the mainstream population own any decent amount, so it would be interesting to see if they tuck away a nationalization of gold clause in the bill. Of course, most rational people will just ignore that silly law, but it will be a scary precedent if it could be silently passed along with a panic infused bailout package, so the central banks can replenish the booty they've undoubtedly been releasing into the market to suppress prices.
IIRC - the Sec of Treas can do ANYTHING he wants under this new system. Making gold and silver illegal would just be the start. Remember he is charged with protecting the uber rich at any cost to the nation or the less fortunate.
If enough people are dumb enough to give it back for a "fair market value" (lol), then the Fed can have some stockpile. There are perhaps (?) enough lemmings out there to feed the machine with their mellow yellow, scared of the consequences that are highly unlikely to occur.
H**l to the no on giving up my bounty. The best thing in the world for the value of gold would be to make it illegal to own, although I might have to lug an AK for the back alley transaction
If enough people are dumb enough to give it back for a "fair market value" (lol), then the Fed can have some stockpile. There are perhaps (?) enough lemmings out there to feed the machine with their mellow yellow, scared of the consequences that are highly unlikely to occur.
H**l to the no on giving up my bounty. The best thing in the world for the value of gold would be to make it illegal to own, although I might have to lug an AK for the back alley transaction
Our elected officials are stupid, but I think they've learned their lesson that this is not a viable policy. People are already *****ed about this bailout, so I don't think they'd give up their gold if that was part of the deal. Something tells me that most owners of gold are already highly suspicious of the government anyway
Someone please explain to me how storing or hoarding gold is going to restore productivity to average US workers so that they can justify living in the housing of their choice and, in the worst case scenario, how storing or hoarding gold is going to ensure food deliveries and the supply of power and water if and when our payments and transportation system collapses?
I agree that cockamamie monetary policy has impaired the currency's ability to allocate resources efficiently and effectively in the real economy, but, as things stand right now, I do not see what role gold has to play therein.
Someone please explain to me how storing or hoarding gold is going to restore productivity to average US workers so that they can justify living in the housing of their choice and, in the worst case scenario, how storing or hoarding gold is going to ensure food deliveries and the supply of power and water if and when our payments and transportation system collapses?
I agree that cockamamie monetary policy has impaired the currency's ability to allocate resources efficiently and effectively in the real economy, but, as things stand right now, I do not see what role gold has to play therein.
Please explain.
Or am I missing the point?
Storing or holding by whom? By private individuals? By the government?
ViewFromThePeak was referring to the resurrection of Depression-era laws that forbade private ownership of gold, aside from jewelry I believe. It wasn't a sucessful policy at all, as most people ignored it, rightfully so.
Nationalized gold could be sold on the foreign market and provide cash for the U.S. Federal government in theory, although in practice I don't think it would work out so well. I'm rather skeptical on gold as a major investment area for individuals, as it doesn't do so well over the long-term and doesn't hold any intrinsic value apart from decorative and jewelry. Silver actually has a lot more applied uses, as do oil and other commodities. The disadvantage of everything other than gold and platinum is that they're much more difficult to take physical possession of, something which is important if the government threatens nationalization or one doesn't trust the firms that sell it.
If one's really, really worried about having a hedge against desperate times, the best investment would be land that can grow enough food to feed your family, a modest house, solar panels (if you live where the sun shines), about 5-10 pairs of comfortable shoes, enough clothes to get by in all seasons (or knowledge of how to make them), a scooter (or other high-mileage vehicle) a few bicycles and a large storage tank for gasoline (provided you can rotate supply relatively frequently and add stabilizer).
Not enough of the mainstream population own any decent amount, so it would be interesting to see if they tuck away a nationalization of gold clause in the bill. Of course, most rational people will just ignore that silly law, but it will be a scary precedent if it could be silently passed along with a panic infused bailout package, so the central banks can replenish the booty they've undoubtedly been releasing into the market to suppress prices.
My thoughts are that this would be unconstitutional and that I'm going to chalk this one up to fearmongering.
Frankly, this is just bizarre speculation trying to be passed off as fact.
Storing or holding by whom? By private individuals? By the government?
Nationalized gold could be sold on the foreign market and provide cash for the U.S. Federal government in theory, although in practice I don't think it would work out so well.
If one's really, really worried about having a hedge against desperate times, the best investment would be land that can grow enough food to feed your family, a modest house, solar panels (if you live where the sun shines), about 5-10 pairs of comfortable shoes, enough clothes to get by in all seasons (or knowledge of how to make them), a scooter (or other high-mileage vehicle) a few bicycles and a large storage tank for gasoline (provided you can rotate supply relatively frequently and add stabilizer).
By private individuals or the government, it doesn't matter.
If by the government, I also agree that, in practice, it would not work ... unless - assuming that our payments system becomes so frozen up that we can't help ourselves - in exchange for gold, foreigners provide the US with food and fuel for transport and utilities, but how long would that last? We are printing money to do basically just that.
In real economy terms, in the case of an economic meltdown, you satisfactorily address what to do in your final paragraph.
It seems to me that all this talk about gold is more about speculation than about productive investment or the basis for monetary reform.
The basis for sound monetary reform is good interest rate and credit policy, channeling resources to the most productive investments.
US policymakers did not do this, and that's why we are in the mess we are in.
Now, if gold traders can successfully ride the volatility that this mess has caused, more power to them.
In terms of the real economy, the volatility in the gold price is indicating that we got the allocation of resources all screwed up.
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