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Jim Sinclair tonight dismisses concerns about gold
confiscation and makes an important point about the confiscation undertaken
by the U.S. government in 1933. Sinclair writes:
"In the 1930s gold was to the monetary system
what 'quantitative easing' is today -- a means of increasing the supply of
money for Federal Reserve and Treasury Department discretionary use. The
secretary of the treasury and President Roosevelt set the gold price higher
arbitrarily at their daily breakfast -- higher because, to create money then,
the system required a higher value of gold to have more money outstanding.
This is why Roosevelt ordered the confiscation of gold -- to unfold his type
of monetary stimulation, his QE. This is what confiscationphiles
simply do not know."
Indeed, some market analysts, like Stewart Thompson
of the Graceland Updates letter --
http://www.gata.org/node/9955
-- and the economists and fund managers Paul Brodsky
and Lee Quaintance of QB Asset Management in New
York --
http://www.gata.org/node/7673
-- long have argued that central banks now are
arranging a controlled ascent for gold to devalue their currencies for
monetary stimulation, what GATA has called a controlled retreat with the
longstanding gold price suppression scheme.
Like Sinclair, GATA also has been skeptical about
any new confiscation of gold insofar as the justification offered for it in
1933 simply doesn't apply today. That is, gold no longer constitutes a
significant part of the money stock of the United States and the government
already owns (or claims to own) the better part of the gold within the
country's borders.
But there is no absolute assurance about what the
U.S. government will do as it grows more power-mad every day. As it confirmed
officially to GATA in 2005, the Treasury Department claims the power, upon
proclamation of an emergency by the president, to seize or freeze not only
any gold or silver or gold- or silver-related asset but also to seize or
freeze any financial asset. GATA's correspondence with the Treasury
Department is posted in the "Confiscation" section of our Internet
site here:
http://www.gata.org/node/5606
Seize or free anything -- that's the land of the
free and the home of the brave for you these days.
Sinclair's commentary, "Gold Confiscation Rumor
Control," is posted at JSMineSet here:
http://www.jsmineset.com/2012/10/30/gold-conf...-rumor-control/
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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