Garimpiero

Vietnam Suspends Gold Imports, Follows FDR's Great Depression Lead

DiverCity- The legal tender law in this country is an example of government declaring its monopoly and exerting unreasonable control over citizens- if you want to exchange your services or goods for gold, silver, or, for that matter, gas, there is nothing dishonest or immoral about it- but it is illegal- government wants everything transacted in dollars so that income taxes can be readily established. There was even, in recent hears a proposal by the Treasury Dept. that some sort of chip or other device be incorporated in the currency to render it worthless if not spent in the prescribed period of time. The idea went nowhere, but, having had several English pounds left over from a trip ther years ago was both chagrined and amused to learn that, despite the Queen's promise to exchange the
note for "pounds" (of what?) they had changed their currency and it was in fact now worthless (a market does exist on Ebay, however- the notes feature the inventor of the steam engine, who deserves a lot more credit than the Queen)
However, at the same time it is inconsistent in its application- the Federal Reserve Note is supposed to be legal tender for all debts public or private, and yet there are a number of areas, some under direct government control, such as at airports, where the use of cash is prohibited- try buying a ticket there with cash, for example- at least two airlines now refuse to accept cash for drinks on board- a credit card must be used. This fact would seem a legitimate defense if one were to demand other than cash for something owed:if government can decide capriciously when its own laws do or don't apply, the individual is entitled to the same - I recommend to anyone Andrew Dixon White's presentation before Congress, Fiat Money Inflation in France,* which mentions that very issue at the time of the French Revolution. Even as people tried to find ways to protect themselves against raging inflation (caused by deficit spending, just as in today's USA) the government imposed ever more Draconian measures, declaring in the end that requesting payment in other than the official currency subjected the individual to the death penalty.

Vietnam Suspends Gold Imports, Follows FDR's Great Depression Lead

Being in a thoroughly Revolutionary mood, and just back from a trip to Boston- where last weekend's newspaper featured a story that 125,000 households statewide (that would be at least a quarter of a million people (!!!!) now face the prospect of freezing to death this winter (if they do not starve first) as their power has been shut off already for nonpayment. This is due to to soaring fuel costs (NG has doubled in less than a year and home heating oil not far behind) which are directly linked to the Fed's printing presses(associated with deficit spending) and much less the "new demand from India and China"- Indian automobile sales, for example are less than 1.5 million a year. $30 billion a month in deficit spending-money going largely abroad, is equivalent to over 200 million barrels of oil A MONTH- is it any wonder that prices are soaring- and what would stop them from soaring further?- and this $30 billion a month for Iraq and Afghanistan, lining the pockets of the arms merchants- to "protect" us? 250,000 people in Massachusetts beg to differ, but they are in a "Blue" state (as in blue with cold) so their opinions do not count.

Vietnam Suspends Gold Imports, Follows FDR's Great Depression Lead

As hypocritical as what FDR did- promising during the 1932 election to preserve the gold standard and then only doing so for foreign dollar holders (!), at least it can be said that some link between the production of dollars and gold in Fort Knox WAS preserved. What is happening today is not only completely immoral but amazing- now the government reserves the right to pull "money" out of its ass with no link to anything- and to keep things from getting really awful really soon, the Fed is keeping interest rates low (for their banker friends, meaning they get to pay you 2% a year while charging you 20% on your VISA card.
As for "helping" with low interest rates, the road to hell may, as it is said, be paved with good intentions, but there is no reason to assume that the Fed's intentions are anything but self serving- do you think they are extending credit for free? In exchange for their largesse, they, and not the "people" now own, through SDR's what we like to think of as "the nation's gold in Fort Knox- or wherever it is now being- what is the word- hoarded (!!!). What they are really after is controlling every significant aspect of the economy.

Vietnam Suspends Gold Imports, Follows FDR's Great Depression Lead

Taking his cue from Keynes, who had advised that to relieve unemployment, the money supply could be secretly increased before people would realize the full inflationary effect, FDR increased the money in a thoroughly immoral fashion- he said that Americans were "hoarding" their money (after all, they were paid in gold, or receipts for same so how could they be accused of "hoarding" anything? For his part, FDR had adopted the Democrat Party's plank to preserve the gold standard during his 1932 election campaign) demanded that Americans turn in their gold for 20 fiat dollars to the ounce and immediately boosted the money supply (his version of Helo Ben)by changing the exchange rate to $35 to the ounce(the exchange privilege now extended only to foreign dollar holders Imagine- selectively screwing your own people.
It is interesting that Communist Vietnam has not so far tried to confiscate the people's gold, though they too have resorted to the false charge of "hoarding" (what is one supposed to do- sit there as the Central Bank inflates its ass off?) Perhaps the government realizes that people who so recently threw off the yoke of imperialism may not take kindly to such transparent trickery and take up arms again. Americans, who have even allowed their firecrackers to be confiscated on the Fourth of July, appear pretty tame!