|
Pittsburg, Kansas | If/when that happens, it would mean the end game is here. It would be admission that all is lost with fiat currencies.
Remember, when that executive order was signed gold was still a monetary metal. Gold was officially money. It is not now. Officially it is "de-monetized". It has been stripped of legitimacy as being money. So for the government to confiscate it again would be to re-legitimize it. When Bernanke was ask by Ron Paul if gold is money he said it was not. To confiscate it would be to admit "well, yes, it really was money all along". This is the very last thing in the world a central bank wants to admit. Because for a central bank to admit to the public gold is money is to also admit that what they create out of nothing is really not money but only a currency created from nothing that is backed by nothing. In essence, once they legitimize gold as being money again, they admit failure of their fiat currency.
Funny thing is, many central banks are adding to their gold reserves. Particularly central banks that are not particularly fond of the US petro-dollars world hegemony. Or I should say floundering world hegemony.
Since gold is supposed to only be a commodity now, confiscating it would be no different than confiscating your corn, soybeans, iron ore, your house or any other asset. Of course they would pay for the asset but then devalue the USD currency like they did before essentially robbing the owners of their wealth.
If they confiscate gold, the jig is up. They have failed in all their monetary attempts.
Loss of confidence in the currency would be a real threat at that point.
John
Edited by John Burns 1/30/2016 21:41
| |
|
Japan goes negative interest.
