U.S. asset managers worried Obama could confiscate gold

[Nickelless]

Lets look at the various powers the government has through executive orders, with only the swish of the pen, from the president.

Here are just a few of them...

EXECUTIVE ORDER 10990 allows the government to take over all modes of transportation and control of highways and seaports.

EXECUTIVE ORDER 10995 allows the government to seize and control the communication media.

EXECUTIVE ORDER 10997 allows the government to take over all electrical power, gas, petroleum, fuels and minerals.

EXECUTIVE ORDER 10998 allows the government to take over all food resources and farms.

EXECUTIVE ORDER 11000 allows the government to mobilize civilians into work brigades under government supervision.

EXECUTIVE ORDER 11001 allows the government to take over all health, education and welfare functions.

EXECUTIVE ORDER 11002 designates the Postmaster General to operate a national registration of all persons.

EXECUTIVE ORDER 11003 allows the government to take over all airports and aircraft, including commercial aircraft.

EXECUTIVE ORDER 11004 allows the Housing and Finance Authority to relocate communities, build new housing with public funds, designate areas to be abandoned, and establish new locations for populations.

EXECUTIVE ORDER 11005 allows the government to take over railroads, inland waterways and public storage facilities.

http://sonic.net/sentinel/gvcon5.html

That's all fine and dandy on paper, but if nobody else in the government or the military is willing to enforce these executive orders--this would become a de facto coup if they didn't enforce the orders--then what does it matter what's on paper? Think of the lawless regions along the Afghan/Pakistani border where bin Laden is thought to be hiding, or Somalia outside of its capital--if the government is scared enough of the people that it refuses to set foot in regions where the people are rebelling, it won't matter one rat's butt what executive orders are passed. Would you want to face down millions of angry people if it could result in your personal annihilation? Or would you rather save your life by leaving trouble alone? THAT is where our power is as We The People. SCREW executive orders--if enough people are ticked off about what the executive branch tries to cram down their throats by fiat, the executive branch will back down rather than commit de facto suicide. I've heard it said that the difference between modern-day Europe and the U.S. is that in Europe, the governments fear the people, but in the U.S., the people fear the government. I think that's one lesson we need to learn really quick and make the government fear the people, not vice versa.

[Gcubed]

That war isn't over yet, by any means:

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=11843


http://www.youtube.com/watch?v=Maz9ddxEQnM

[Ragnarok]

At any rate, if/when gold confiscation orders go out, Obama and cohorts will find out what the smarter part of the American public already knows:

There is no gold available.

And they'll have to accept paper receipts just like everyone else.

2c, R.

[ccjoe]

and is why I NOW have all small stuff and NO more 1000 oz bars.

[Pyramid]

The pertinent sentences from Nickeless link in post #30:

There’s a bill introduced by Rep. Dan Lungren (H.R. 5141), which has gathered over 80 members of Congress as co-sponsors to repeal this section. Evidently, however, the drafters of the provision think there is a $17 billion loophole that this plugs.

The Industry Council for Tangible Assets is alerting member dealers and the public at large in the hope that some sense of outrage will lead to a ready modification before the law becomes operational in 2012.

This doesn't sound overly promising, but I can't see big business being real pleased about this avalance of paperwork that will ensue for every stinkin' transaction over 600 FRN's. Oh wait, more accountant jobs, silly me.

[Gcubed]

Long story made short. First, ya ain't gonna get out of paying taxes. Second, this will greatly increase dealers cost of doing business thus widening spreads.

[Aurumag]

The only way the government is getting my Sacagawea Golden dollar coins is from my dead cold hands.

0.0509847 is the melt value for the 2000-2010 Sacagawea golden dollar on June 30, 2010.

[Ragnarok]

Evidently, however, the drafters of the provision think there is a $17 billion loophole that this plugs.

It's called the US sconomy. And yes, it will plug it if it's not axed. Even "small" money may find it advantageous to expatriate.

R.

[yunowu]

It is a good read..let buyer beware..
Treasury claims power to seize gold, silver -- and everything else
http://www.gata.org/node/8766


Because of recent inquiries to GATA about the possibility of an attempt by the U.S. Government to confiscate privately held gold and silver bullion and coins and shares in companies mining the precious metals, we're republishing here the correspondence between GATA and the U.S. Treasury Department on the subject in 2005.

The Treasury Department was surprisingly candid in that correspondence, asserting the U.S. Government's authority, in declared emergencies, to confiscate precious metals and to restrict ownership of mining shares -- and to confiscate and restrict every other financial asset as well. So perhaps precious metals investors shouldn't feel too paranoid.



January 20, 2005

Roberta K. McInerney
Assistant General Counsel / Banking and Finance
Department of the Treasury
Washington, D.C. 20220

Dear Ms. Mclnerney:

Michael Kirk of U.S. Rep. John B. Larson's office has forwarded to me your letter to him of December 17, which answered my e-mailed inquiry to him about forcible redemption by the Treasury Department of gold and silver coins held by private citizens. You replied that a statute empowering the Treasury Department to do that, 12 U.S.C. Section 248(n), had been repealed.

But since reading your letter I have learned of a similar statute: Title 12. Chapter 2, Subchapter IV, Section 95a, which provides in part:

"During the time of war, the president may, through any agency that he may designate, and under such rules and regulations as he may prescribe, by means of instructions, licenses, or otherwise -- (A) investigate, regulate, or prohibit any transactions in foreign exchange, transfers of credit or payments between, by, through, or to any banking institution, and the importing, exporting, hoarding, melting, or earmarking of gold or silver coin or bullion, currency or securities. ...".

[Nickelless]

It is a good read..let buyer beware..
Treasury claims power to seize gold, silver -- and everything else
http://www.gata.org/node/8766

And we all know how well this worked in 1933.:sarc:

Other than the exertion of political brute force, what compelling reason could the government give for essentially calling in silver and gold? The market value of all existing silver and gold is just a fraction of both the budget and debt of the U.S. In terms of a per-dollar basis, it would make absolutely no sense at all. What could possibly be accomplished by such an action?

[Anakin]

And we all know how well this worked in 1933.:sarc:

Other than the exertion of political brute force, what compelling reason could the government give for essentially calling in silver and gold? The market value of all existing silver and gold is just a fraction of both the budget and debt of the U.S. In terms of a per-dollar basis, it would make absolutely no sense at all. What could possibly be accomplished by such an action?

Putting a floor in the currency by reestablishing the gold standard, obviously at some higher conversion rate.

[Nickelless]

Putting a floor in the currency by reestablishing the gold standard, obviously at some higher conversion rate.

But given the level of distrust of the government now compared to 1933, I can't see any way in heck that the citizenry would just roll over and bow to D.C.'s demands. There would have to be a heck of an incentive not to just hide what silver or gold you have until the goons drop the prohibition on owning PMs.

[Ragnarok]

http://www.americanthinker.com/2010/07/no_ones_capital_is_safe_in_oba.html

Snip - more at link:

"Obama's poorly coded message to investors is to take your money out of America and keep it out. Whether through excessive taxation, suffocating over-regulation, or thuggish confiscation, the lesson to be drawn by anyone with excess capital is to look for friendlier places to put it to work.


The list of friendlier places excludes North Korea, Venezuela, and Iran for the time being, but almost everywhere else qualifies. Russia's president spent several days in Silicon Valley recently looking for adventurous investors and came away with a $1B commitment from Cisco Systems. For Cisco, sitting on a cash hoard of $30B, with years of experience partnering with the burgeoning Russian venture capital industry, the decision was probably not a very tortured one. And what a perfect opportunity for Cisco's CEO John Chambers to keep his cash as far from Obama's collection agencies as possible.


President Medvedev promises Cisco a capital gains tax rate of zero; President Obama promises to retire the evil George Bush capital gains rate of 15% and increase it to 20% in 2011. Cisco is merely telecasting to anyone who wants to tune in that Russia is taking advantage of Obama's lurch towards socialism (or worse). While Russia is portraying itself as a stable bastion for capitalists, America is increasingly seen as the land that mauled Chrysler and GM bondholders. While erstwhile command economies are liberalizing, America under Obama is nationalizing. The lesson is clear: Don't leave cash within the American financial system, earning minimal returns, with the fear that at any moment your assets can be confiscated or redistributed by a lawless and capricious federal government. "
R.

[yunowu]

Government is an expert at confiscating wealth. When the masses are poor and hungry, they more susceptible (receptive) to the "king's" message.

And we all know how well this worked in 1933.:sarc:

Other than the exertion of political brute force, what compelling reason could the government give for essentially calling in silver and gold? The market value of all existing silver and gold is just a fraction of both the budget and debt of the U.S. In terms of a per-dollar basis, it would make absolutely no sense at all. What could possibly be accomplished by such an action?

[GOLDZILLA]

They could confiscate it without even taking it away, much like they do with frns right now. All they would have to do is declare the dollar is backed by gold and fix the price of gold at a cheap value, then anyone who did not sell theirs before it happened would suffer great loss of value -- unless they could get it out of the country or keep it for a long time.