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Well, that line of thinking didn't work very well when the confiscated gold...ook guys think about it, WHO do you think would have the balls to enforce something like an AWB, i dont mean a politician behind a desk, but the guy who actually has to go get them
Well, that line of thinking didn't work very well when the confiscated gold...
It's as much a matter of the sheep being willing to comply as it is enforcement... You only have to enforce against the few who won't do it themselves...
My point is that all the boating accidents in the world didn't stop them from confiscating gold, so clearly the sheep will obey and its only the outliers... So, it won't take as many ATF agents as you think to accidentally fire so many smoke grenades into your house that it catches firewell gold dosent go boom, i mean, they could try but when it becomes more dangerous than fishing for alaskan king crab, i think/ hope they would stop attempting to pry every single thing we have to protect ourselves from our hands.
“Contemplate the mangled bodies of your countrymen, and then say 'what should be the reward of such sacrifices?' Bid us and our posterity bow the knee, supplicate the friendship and plough, and sow, and reap, to glut the avarice of the men who have let loose on us the dogs of war to riot in our blood and hunt us from the face of the earth? If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom, go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!” - Samuel Adams
Well, that line of thinking didn't work very well when the confiscated gold...
It's as much a matter of the sheep being willing to comply as it is enforcement... You only have to enforce against the few who won't do it themselves...
What is this about confiscating gold? I just bought $25,000.00 in American Gold EAgle coins for a client. no problems. Who is going to confiscate it?
That's correct - it was deemed a national emergency and all non-numismatic (collectors coins) gold was ordered to be exchanged and private ownership was made illegal...They are talking about when Roosevelt(I think) had all privately owned gold confiscated when he changed the gold standard.
Gold Confiscation: How Soon?
Gary North
December 27, 2008
When will the U.S. government confiscate Americans' gold? The 12th of never.
This story keeps coming back, just like Bela Lugosi's Dracula. Each movie got worse, with a lower budget.
I ask: Why would the government want to confiscate gold?
Gold isn't used as currency. It was in 1933.
It isn't used to settle accounts.
It isn't a major industrial commodity.
It is used in jewelry. Who cares?
The U.S. Mint produces gold coins, by law. By confiscating gold, it would kill this market.
Most goldbugs would not obey. (See "war on drugs.")
There would be a huge black market in gold.
It would call attention to the FED's money manipulation.
It would subsidize Indians and Chinese, who buy gold.
It would refute Keynes' remark: "a barbarous relic."
It would confirm the gold bugs' vision of the centrality of gold.
Confiscation would raise a question: Who benefits? Answer: bullion banks that lease gold for three-tenths of a percent per annum -- a sweetheart carry trade.
It would raise the issue of gold leasing. "Where's our gold?"
It would raise the issue of an audit of gold held for the U.S. government (it says here) by the Federal Reserve.
The government would have to pay $800 for an asset kept on the FED's books at $42.22.
What benefit would such a ban convey to the government? I cannot think of anything.
Right - when the dollar becomes threatened with rapid devaluation - which can happen suddenly in the form of a failed treasury auction...In that book, gold confiscation takes place when inflation is so high that the dollar means nothing
Right - when the dollar becomes threatened with rapid devaluation - which can happen suddenly in the form of a failed treasury auction...
They can fail "suddenly" because in order to be a treasury "dealer" you are COMPELLED to bid in treasury auctions. At the point that it becomes so absurd to bid at all that you are willing to risk losing future ability to be a dealer and/or you are insolvent and cannot close the transaction even if you bid - then a treasury auction collapses where the prior one seemed to go off without a hitch...
BTW - there have been auctions recently where dealers failed to "settle" in a timely manner...
Gold is having a hard time coming back as a currency because we have operated for a long time without it. It is poorly distributed (i.e. concentrated in pockets around the world) and we lack the mechanisms to trade with it...
Whether or not gold returns as a currency I don't know, but the point was that there was no revolution when it was confiscated... It had been horded prior to that point for very good reason (hyper inflation) so you'd think people wouldn't be happy about it, yet it happened relatively peacefully which is measure of how much people would resist compulsory gun "exchange" programs...
This cuts both ways...The problem with using an analogy of people giving up their gold in the 30's - and comparing to to now is that back then the govt. used the excuse that they needed people to give up their gold because they needed to fix the money supply - and gold was "a barbarous relic".
Financial Coup d'Etat & Your 401(k)
Catherine Austin-Fitts
In 1997, I had approximately $500,000 of assets sitting in a 401(k) at T. Rowe Price. The funds represented a portion of the money I saved while working on Wall Street. After I left the Bush Administration, I used these funds, along with the proceeds of the sale of my house, to start a company called the Hamilton Securities Group.
It was not long before Hamilton Securities was successful and repaid my 401(k) the funds that had given it life.
A few years later, the federal loan sale program for which Hamilton served as financial advisor was the target of a highly politicized "investigation" by the federal government. A new Housing Secretary was eager to assist the Federal Reserve and Treasury in engineering a housing bubble: honest people had to go.
After a year of beating back false allegations, the government put my 401(k) under audit. My company's chief financial officer and I looked at each other and said, "Uh-oh." Somebody was trying to prevent me from borrowing the money.
Sure enough, a few months later the U.S. Department of Housing and Urban Development (HUD) created a pretext to withhold monies owed to Hamilton and demanded several hundred thousand dollars of contract close-outs. Our bank received anonymous tips which persuaded them to pull our credit line. Our insurance company breached its obligation to fund our attorneys. And (surprise, surprise) our auditors said that the audit meant I could not arrange a loan from my 401(k) to Hamilton Securities. We were to learn in time that the auditors were quite dirty in the affair.
Fearless by nature, I closed out my 401(k) without blinking an eye, paid $225,000 in taxes and penalties, and loaned the remaining money to Hamilton Securities for contract compliance and legal expenses. I hired an excellent attorney on contingency and sued the federal government for the monies owed.
And we eventually won.
The moral of the story was that if you stand in the way of the largest housing bubble and pump and dump in history, it pays to have a nest egg.
After winning the case, my accountant hoped that some or all of the settlement would repay Hamilton's legal expenses. Thrilled at the possibility, she said, "The first thing we'll do is set up a new 401(k)."
"No," I said. "I will never have an IRA or 401(k) again." To this day, I never have. Fool me once, shame on you; fool me twice, shame on me.
I assumed that my situation was unique – I hold highly visible positions – and that most people had nothing to worry about. There are numerous benefits to building savings in a 401(k) or IRA, although many of these plans are restricted in their investment choices. With persistence, someone can usually make such investment vehicles work for them. So, I had never considered the possibility of overt or covert confiscation of IRAs and 401(k)s until I read one of Franklin Sanders‘ comments about gold confiscation:
"Finally, gold and silver today don't represent the huge pool of wealth they represented in 1933. [Solari note: the US government confiscated gold in 1933.] Why risk wide-spread disobedience to steal such a tiny plum? If the government wants to steal a big pool of wealth, they'll snatch your pension funds and IRAs, not your gold."
In fact, if you look at the value of most 401(k)s and IRAs lately, a great deal has already been "confiscated." The mainstream media has described these losses as part of the normal economic cycle, but this is a fallacy. The losses are the result of a financial coup d'etat, including fraudulent housing bubbles, pump and dump schemes, naked short selling, precious metals price suppression, and active intervention in the markets by the government and central bank. Which begs the question, where is all this going?
I began hearing questions about whether it was safe to leave money in 401(k)s and IRAs late last year. These questions were due, in part, to a report in the Carolina Journal that floated the idea of federally-managed retirement accounts. And there were other concerns: the ease with which financial interests have manipulated Congress, the passage of the highly unpopular bailout package in 2008, and the growing federal deficit. These issues have raised the possibility of greater financial losses in 2009, increased capital controls, and possible constraints on 401(k)s and IRAs.
Enter the Wall Street Journal. Last week, a front-page article in the Journal examined recent 401(k) losses: Big Slide in 401(k)s Spurs Calls for Change. Here's an excerpt:
"About 50 million Americans have 401(k) plans, which have $2.5 trillion in total assets, estimates the Employee Benefit Research Institute in Washington. In the 12 months following the stock market's peak in October 2007, more than $1 trillion worth of stock value held in 401(k)s and other "defined-contribution" plans was wiped out, according to the Boston College research center. If individual retirement accounts, which consist largely of money rolled over from 401(k)s, are taken into account, about $2 trillion of stock value evaporated."
First of all, as I have pointed out many times, money does not simply disappear. It goes somewhere. The fact that $2 trillion has suddenly "evaporated" means that some corresponding value is now under new ownership. And, in this case, the owners are no longer ordinary investors. If you have doubts about this, see my definition of "pump and dump".
The Journal article also raised the possibility of changes in the structure of 401(k) accounts:
"Congress has begun looking at ways to overhaul the 401(k) system … One such plan called for establishing accounts that would receive annual contributions from the federal government, and would offer a guaranteed, but relatively low, rate of return. Another proposed automatically investing contributions in an index fund that holds stocks and bonds, with the mix getting more conservative as workers approach retirement."
So, the solution is that the victims cede even more power to the perpetrators. Who's pushing these ideas? Why is the Wall Street Journal floating such a trial balloon on the front page?
I live in an area with increasing tornado activity, but I am not planning on selling my home because of these risks. I know how to track storm warnings. I have a disaster preparedness kit and I know where the town's storm cellar is located. With this in mind, I am not advising anyone to pull their money from a 401(k) or IRA. But, I do think we should understand the rules associated with this process. We should also make it clear to Congressional representatives that any tampering is not acceptable.
In this week's Solari Report, I'll be talking about why I'm going to be tracking proposals for increased restrictions on 401(k)s and IRAs in 2009. I'll also touch on President-Elect Obama's stimulus package followed by the plain-talking, ever lively Precious Metals Update with Franklin Sanders. You can learn more about The Solari Report and subscribe here.
I hope you'll join us.
Catherine Austin Fitts is a former managing director and member of the board of directors of Dillon Read & Co, Inc, a former Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush Administration, and the former President of The Hamilton Securities Group, Inc. She is the President of Solari, Inc, an investment advisory firm. Solari provides risk management services to investors through Sanders Research Associates in London.
I've long assumed that the chances that 401Ks/IRAs are going to behave as promised in 20+ years is nill... They will be taxed or taken...If people want to be concerned about the government stealing something - they ought to be concerned about them stealing their 401k's, IRA's, and other retirement plans.
I've long assumed that the chances that 401Ks/IRAs are going to behave as promised in 20+ years is nill... They will be taxed or taken...
Unless you have a matching contribution, the risk just isn't worth it these days...
One beef I have with that article is:
"money does not simply disappear. It goes somewhere." -Austin-Fitts
That is not invariably true - one of the big problems we've had these past 8 years in once of perception that vast quantities of money created from thin air in the dotcom bubble really ever existed...
We are, for a second time, wiping those fake dollars away and people are acting as if the market and housing are dropping by outrageous amounts when in one context they are simply reverting to a mean of growth on a 30 year timeframe...
So, it is not invariably true that money "goes somewhere". That depends on its origin...
The Fed can print money, but the market can destroy it via deflation. Inflation makes stock prices rise because the same stock costs more in the face of a devalued currency (as more dollars are printed - their purchasing power drops - stocks go up without any economic growth required).
The Fed doesn't like this as it removes their primary source of power, but they have no say in the end as long as we have free will to buy and sell (and sell short).
Deflation is only scary to central banks for whom it is a primary method of control. To the rest of us its just a recession...
This sort of analysis has two problems that are often present in such descriptions of how "the money has to go somewhere":If you "invest" $100,000 of your hard earned dollars into the stock market thru your 401k - that was (or should have been) "real money". You traded work to receive that money. The money should reflect a store of real value.
....
When the stocks that your money is invested into go down in value - because of the normal processes of the stock market, somebody else is getting that "lost value".
Predictions:
I'm not a gambling man, but I would bet a case of .45 ACP on the following legislation occurring within the next 8 years:
-we see AWB 2.0 which includes so called "high-capacity" magazines. Existing "assault weapons" and high cap mags are grandfathered in. The ban will be permanent, but will exempt law enforcement and military personnel in good standing.
-firearm transfers between private citizens is made illegal closing the "gun show loophole".
-more MA style firearms registration required throughout the country
I don't believe a confiscation could/would occur in this country after Heller.
The AG (well the state because you cannot likely sue the AG directly) needs to be sued for harming the consumer by threatening nuisance lawsuits for lawful behavior and violating preemptive Federal legislation on interstate commerce...Also expect more BS like what we have in MA with the AG further restricting what we can buy via asinine "consumer safety" regulations that discourages manufacturers and adds to the cost of guns.
Do any of you think they can ban AR's based on name?