Kal Kotecha PhD
We’ve all encountered them, the intelligent, charming, and persuasive gentlemen who are deeply interested in our welfare and want to let us in on a plan they have to become wealthy. One of the most skillful cons in history actually took place in the early 1820’s at the hands of a man known as Gregor MacGregor, who would use the existing political and economic atmosphere to con his contemporaries out of nearly $1.3m.1 — today, that amount would come to $3.6 billion. While it stands as a massive con game, it doesn’t even come close to that being pulled by the US government involving the gold in Fort Knox.
The con started in 1933 with Franklin Delano Roosevelt, the man commonly referred to by adherents as FDR. The country was in the middle of a banking crisis that set the stage for a perfect con by the government, one couched in concern for the people of the US and framed in a way that made us believe it would benefit us. This couldn’t be further from the truth, but just like the efforts of Gregor MacGregor, it’s a hallmark of confidence men that they sell us the belief that they care for us, when in fact they’re only interested in benefiting themselves.
What did this con include? In the middle of a banking crisis, people had begun to lose confidence in the banks (there’s that word again, confidence), and it was the professed belief of FDR that ” the banks will take care of all needs, except, of course, the hysterical demands of hoarders, and it is my belief that hoarding during the past week has become an exceedingly unfashionable pastime in every part of our nation.”2 He made it clear that he believed that the banks were our salvation and that it was “safer to keep your money in a reopened bank than it is to keep it under the mattress.”2
Now, unlike the “good” MacGregor, there was no need for FDR to convince the American people of anything before the fact, he simply utilized the power of Executive Order to push EO 6073 through, known as the “Emergency Banking Act (EBA)”. How suspicious was this maneuver? It entered the house, and exited it, in 40 minutes flat. Not a single printed copy was provided to the representatives.
So what exactly did all of this lead to? Simple… It prohibited the owning of gold coins, gold bullion, or gold certificates, and ordered that those in possession of such items surrender them to the government, which led to the construction of Fort Knox so that all of it could be stored. We’ve not had any clear idea of how much gold has been inside since, and the government refuses to allow a 3rd party audit to answer that question.
All of this comes down to reveal one fundamental truth, the government has absolutely no interest in our welfare, nor in assuaging our concerns about what happened to all the gold that was confiscated in that vanishing act so long ago. Thankfully, , in 19754 , gold was once again made legal to be owned by the public.
Steve Forbes of the Forbes staff heralded this in an October 2012 article, stating that, “an unstable dollar is wreaking havoc on our capital markets, depriving us of money for productive enterprises and future enterprises while subsidizing government debt on a scale never before seen in U.S. history.”3
In essence, we’re discovering that the way our finances are being handled is having a devastating impact on the value of our wealth and stability of our income. In fact, many people feel that their actual incomes are falling in value, and every day it becomes more difficult to maintain any sort of financial foundation. So what are we to do?
According to Forbes the best response is to “remove legal barriers to alternative, nongovernment currencies in the U.S. We are allowed to use pounds, yen, euros and any other currency to carry out a transaction. Why not allow metal-based or -backed currencies to be used?”3 Currently attempts to do so have been devastating, with the Ur example being Bernard von NotHaus who created a company to produce coins and bills known as Liberty Dollars backed by Gold and Silver Bullion. The government’s reaction was rapid and clear, he is currently facing significant jail time as a result.3
However it appears that there is a movement to start removing this impediment, and some of them are starting in the most unusual of places, specifically in Utah. “eliminate all taxes on transactions in gold and silver bullion.”3 Followed by a decree that “U.S.-minted gold and silver coins are legal as currency.”3 Which, really, is just a return to the days before the 1933 decree, when our government was in the business of issuing gold-based dollars.
With these clear signs that gold is on the rise as a valid currency again, it only makes sense to invest in these precious metals in preparation for a massive surge in their overall value. American finance may be in trouble as the promissory notes issued by our mints rise and fall in value, but gold retains its value regardless of our nation’s economy. Now that’s a smart investment.
Kal Kotecha PhD
1 The king of con-men http://www.economist.com/news/christmas-specials/21568583-biggest-fraud-history-warning-professional-and-amateur-investors
2 Hiding the Elephant: Fort Knox’s Vanishing Act https://www.juniorgoldreport.com/hiding-the-elephant-fort-knoxs-vanishing-act/
3 Gold Can Save Us from Disaster http://www.forbes.com/sites/steveforbes/2012/10/03/gold-can-save-us-from-disaster/#2dd92e10346e
4 The Great Confiscation: Gold ownership was illegal in the USA from 1933 to 1975 http://goldcoin.org/numismatics/the-great-confiscation-gold-ownership-was-illegal-in-the-usa-from-1933-to-1975/165/
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