Posted on 04/15/2013 7:01:38 AM PDT by whitedog57
Gold, silver and other commodities are plunging this morning. Could it simply be that the bloom if off the commodity rose? Or is there a scent of panic about sovereign expropriations of gold and hard assets?
On April 12th, European Central Bank President Mario Draghi said the profits of any gold sales by the Cypriot central bank must be used to cover losses it may sustain from emergency loans to Cypriot commercial banks.
How there are rumblings of wealth taxes and seizures rumbling around the Eurozone. Wealthy households would face new taxes on property and other assets under German plans to prop up the struggling eurozone.
Could it happen in the US? Here is President Roosevelt’s Executive Order for gold confiscation in 1933.
In addition to government’s turning to wealth taxes, we also have a slowdown in global economic growth. China is slowing, Europe (particularly The Med) is bad shape.
And the US is stumbling along despite record monetary stimulus from The Fed.
A speculative bubble burst for commodities? Fear of growing government power and wealth taxes and seizures? Or dare I say, DEFLATION?
Merkel and Draghi discuss their gold taxation/seizure policies.
The media proudly announces the market records as if something wonderful is happening with the economy and no one asks the obvious. This balloon is going to burst and it isn't going to be pretty.
It has always been my uneasy feeling that despite the escalating food prices, we were like people walking across river ice in the Spring and that of a sudden the whole thing would collapse.
Whatever funds I have left are deposited in the National Bank of Serta and Mason Jars "just in case".
I won't say it couldn't happen again, but there's little reason to, now. In 1933, citizens still had the right to redeem their paper dollars for gold. When they did so, they reduced the government's reserves which resulted in a curtailing of dollar creation.
By stopping redemption and buying back the gold, that was effectively stopped leaving the government free to print all the money it wanted.
It does that now, anyway.
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