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Don’t Dismiss the Possibility of Gold Confiscation

- Jeff Thomas - Casey Reseach

While you are perfectly free to disagree with me, your reasoning lacks a certain clarity. You are quite correct about inflation insofar as it diminishes the purchasing power of whatever cash you hold. But that has not helped to enrich the government in any conceivable fashion. It is not like the purchasing power you lose goes into their pocket. One can only make that claim if the dollar was depreciating against other currencies, which it is not, for that would make it less painful for them to continue servicing their mountain of debt....As for fiat money being worthless; if you really and truly believe that, i would be happy to take it off your hands. Heck, i would gladly pay the postage if that would help....As well, let me point out that all national and supranational currencies are of necessity fiat. That goes for paper money, sea shells, gold or anything else ever used to represent money. Fiat simply means by decree and as money is a mental construct, pretty much anything that does not spoil quickly can be used to represent it.

As for the government coming for your gold, it is unlikely in the extreme. It is a well established fact that America cannot go back to a gold standard without drastically devaluing the dollar and i'm not talking some rinky-dink devaluation such as took place in 1933 (about 66%). They would have to devalue the dollar by at least 2,000%. Such a devaluation would lead to foreigners lining up to exchange their almost worthless paper for whatever gold they can get, leaving America with no gold to back their dollar. It would also lead to the sort of civic unrest being witnessed in Syria, as 100s of millions of Americans would be left poorer than the poorest person in sub Saharan Africa. Furthermore, doing so would be a complete abandonment of the one and only thing that the government gives a hoot about and that would be keeping the bond holders happy. Unhappy bond holders would never again buy US debt and without a functioning bond market, America would be so badly screwed that words cannot describe it. For America, it makes way more sense to force pension funds to invest in T-bills. People may not be happy about it, but they would not take up arms against the government as a result and the bond holders would be quite content with that.

So then, as America cannot go back to a gold standard, they have no more reason to come for your gold than they have motive to come for your diamonds and pearls. The only thing of value to them that you have is paper money and they have been getting ever more aggressive in coming for that with raised taxes, new taxes, new and or increased user fees and laws making it harder for you to place your money in a location where it will be safe from them.

What gold bugs do not understand (and it is kind of ironic) is what gold actually is. Gold is not money. It used to be and may again in the future be money. But it is now no more money than are sea shells. Gold is a hedge against government, period. As governments have become terrible stewards of our national currencies, being hedged is prudent.

Commented 4174 days ago

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Beginning of the headline :If you hold precious metals in your portfolio, there is a good chance you fear hyperinflation and the crash of fiat currencies. You probably distrust governments in general and believe they are self-serving and have no interest in your economic well-being. It is likely that your holdings in gold are your lifeline – your hope to get you through these times while holding on to your wealth. But have you ever given any thought to the possibility of having this lifeline confiscated by the authori... Read More

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