Gold Standard a Part of GOP Platform – 40 Years of Gold Confiscation

Can this actually happen, a call for a real audit of the Federal Reserve, and…a return to the Gold Standard in America. Be still my heart. In other news, Romney says he will replace Bernanke, and he rebuffed a top advisor who counseled him to keep Bernanke for another term. YIKES! Bring it on Mitt.

The move shows how five years of easy monetary policy — and the efforts of congressman Ron Paul — have made the once-fringe idea of returning to gold-as-money a legitimate part of Republican debate.

Marsha Blackburn, a Republican congresswoman from Tennessee and co-chair of the platform committee, said the issues were not adopted merely to placate Paul and the delegates that he picked up during his campaign for the party’s nomination. Great article, read it all here.Source: CNBC

“These were adopted because they are things that Republicans agree on,” Blackburn told the Financial Times. “The House recently passed a bill on this, and this is something that we think needs to be done.”

About replacing Bernanke, ZeroHedge’s Tyler Durden or Rick Santelli (can’t tell which but think it’s Santelli) is taking a guess who that replacement might be and isn’t feeling good about it.

Fort Knox

Also from ZeroHedge this week: What 40 Years of Gold Confiscation By the US Government Looks Like (snippets – read it all here): (If you hold gold ETF certificates, you want to click and read at the bottom of the article)

● First, in order to make the confiscation legitimate, the US government required the delivery of all gold coin, bullion, and certificates to be concluded by May 1, 1933 in exchange for $20.67/ounce.

Several months later, the new, official gold exchange price (which however was merely the government’s bid as nobody could actually buy gold at this price) became $35.00, which remained until 1971 when the last trace of the dollar’s pseudo convertibility into gold was wiped out by Nixon. In effect, what FDR did was to devalue the USD by 70% overnight.

● Second, not only did the government remove the incentive for ordinary citizens to hold gold by establishing price and criminal controls over possession, it also changed the rules in the middle of the game allowing it to build up a massive gold hoard of over 8000 tons today which is maintained at Fort Knox, and is, to the best of our knowledge, unauditable by any mere mortal.

Critically, it made the US government the sole source and monopoly agent of gold purchases, using reserve fiat currency it could print with impunity, beginning in 1933 and continuing through 1974 when the limitation on gold ownership was repealed after President Gerald Ford signed a bill legalizing private ownership of gold coins, bars and certificates by an act of Congress codified in Pub.L. 93-373, which went into effect December 31, 1974. In summary, the US government, which is now the largest official holder of physical gold in the world, had 40 years of uncontested zero cost gold accumulation in which it could build a gold inventory that was second to none.

In the GOP platform, there must be a long list of illegalities to strike down immediately. Surely we can do that. First, we have to take back control of the Senate – we can’t do much without it. So very, very important. This is a time big, bold moves.

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  • OOOOH MYYYY God.. We may find we are vastly under valued.. or vastly more powerful… Scary and exciting at the same time, to actually make this government live within it’s means and not just illegally keep printing ourselves out of debt.. which is a very bad way to do things in a world that is fast running to the brink.. Maggie, thank you for this article.. Love it.

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  • A.Men

    Yeah! Gold.

    Romney/Ryan 2012.

  • I can understand this, gold has been the most stable and secure base for the money for ages, but those times are already over now. I can remember when I was a child my grandparents have bought gold bricks and sticks from all of their money because they had been afraid from the recession and crisis.