Are Democrats trying to stop people from owning gold?
Seeking Alpha believes that they are.
Here is Weiner's press release.
Here is a copy of his report.
Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury. A press release from Rep. Anthony Weiner, Democrat of New York, not yet (as of this instant) posted on Mr. Weiner's Web site, announces that a September 23 hearing of the Subcommittee on Commerce, Trade, and Consumer Protection (a subcommittee of Rep. Henry Waxman's Commerce Committee) will focus on "legislation that would regulate gold-selling companies, an industry who's [sic] relentless advertising is now staple of cable television." . . .
Not to mention the fact that Mr. Weiner's regulatory push seems as much aimed at conservative journalists as at the gold-dealers. The press release says, "Goldline employs several conservative pundits to act as shills for its' [sic] precious metal business, including Glenn Beck, Mike Huckabee, Laura Ingraham, and Fred Thompson. By drumming up public fears during financially uncertain times, conservative pundits are able to drive a false narrative. Glenn Beck for example has dedicated entire segments of his program to explaining why the U.S. money supply is destined for hyperinflation with Barack Obama as president." . . .
Here is Weiner's press release.
Here is a copy of his report.
Labels: financialmarkets, Politics, Regulation
posted by John Lott at 11:04 PM
2 Comments:
Mr. Weiner needs a history lesson.
When Napoleon was conquering Europe, none of the people in the conquered lands would take the French paper money; as with all paper currencies, it became worthless. When he finally got around to running the country he took it back to the gold standard. Prosperity ensued and Napoleon offered cash awards for inventions that would help in his military campaigns. M. Appert won the prize (in gold) for food preservation. Canned foods were the product of that invention.
In 1913, the U.S. setup the Federal Reserve Bank. Paul Warburg ran the FRB and his brother ran the German central bank. They both got the paper currencies in their countries to be inflated. In the U.S., it led to the depression when the banks started calling in the loans. In Germany, it got much worse. The inflation was so great that people were paid twice a day and given time off to haul their cartload of paper bills to the store to buy barely a small basket of food. In 1923 with the country foundering on the brink, 1,000,000 paper Marks were equal to the new 1 gold Mark. The country settled down and the economy improved. Until the depression in the U.S.
In 1968, the U.S. Senate voted to remove the final gold backing from the Fed notes. Irwin Schiff made 9 predictions that all came true:
Removing the gold backing would
(1) aggravate our monetary imbalance and
(2) increase the amount of gold losses.
(3) Removing the gold reserve is inflationary.
(4) Dollars can simply be run off a press and they would be. Prices would climb higher.
(5) Price controls would be demanded, but
(6) would do no good and gold would become scarcer.
(7) Such a move would not be interpreted as strengthening the dollar since a dollar backed by nothing cannot be better than a dollar backed by something.
(8) Ultimately we would lose two or three billion more, and then
(9) hopefully, it would dawn on someone that we dare not lose it all (and terminate the dollar's convertibility).
In the early 1970s, President Nixon declared the United States bankrupt--TWICE! The official price of gold went from $35 per ounce to $38 per ounce. It was raised again to $42.22 per ounce, which is were it is today. That is, the creditors got less on the dollar than they originally expected. In essence, bankruptcy. In the end, Nixon broke all ties between the gold and the Fed notes and let the dollor float against the other paper currencies of the world. All of Mr. Schiff's predictions came true. Remember the Whip Inflation Now buttons of President Ford fame? Remember the price of gas breaking $1.00 per gallon? I remember all the talk of how to stop the wage/price spiral.
All of these economic woes were caused by the lack of gold backing. Now the weiner wants to take it away. Again.
Mr. Weiner needs a history lesson.
When Napoleon was conquering Europe, none of the people in the conquered lands would take the French paper money; as with all paper currencies, it became worthless. When he finally got around to running the country he took it back to the gold standard. Prosperity ensued and Napoleon offered cash awards for inventions that would help in his military campaigns. M. Appert won the prize (in gold) for food preservation. Canned foods were the product of that invention.
In 1913, the U.S. setup the Federal Reserve Bank. Paul Warburg ran the FRB and his brother ran the German central bank. They both got the paper currencies in their countries to be inflated. In the U.S., it led to the depression when the banks started calling in the loans. In Germany, it got much worse. The inflation was so great that people were paid twice a day and given time off to haul their cartload of paper bills to the store to buy barely a small basket of food. In 1923 with the country foundering on the brink, 1,000,000 paper Marks were equal to the new 1 gold Mark. The country settled down and the economy improved. Until the depression in the U.S.
In 1968, the U.S. Senate voted to remove the final gold backing from the Fed notes. Irwin Schiff made 9 predictions that all came true:
Removing the gold backing would
(1) aggravate our monetary imbalance and
(2) increase the amount of gold losses.
(3) Removing the gold reserve is inflationary.
(4) Dollars can simply be run off a press and they would be. Prices would climb higher.
(5) Price controls would be demanded, but
(6) would do no good and gold would become scarcer.
(7) Such a move would not be interpreted as strengthening the dollar since a dollar backed by nothing cannot be better than a dollar backed by something.
(8) Ultimately we would lose two or three billion more, and then
(9) hopefully, it would dawn on someone that we dare not lose it all (and terminate the dollar's convertibility).
In the early 1970s, President Nixon declared the United States bankrupt--TWICE! The official price of gold went from $35 per ounce to $38 per ounce. It was raised again to $42.22 per ounce, which is were it is today. That is, the creditors got less on the dollar than they originally expected. In essence, bankruptcy. In the end, Nixon broke all ties between the gold and the Fed notes and let the dollor float against the other paper currencies of the world. All of Mr. Schiff's predictions came true. Remember the Whip Inflation Now buttons of President Ford fame? Remember the price of gas breaking $1.00 per gallon? I remember all the talk of how to stop the wage/price spiral.
All of these economic woes were caused by the lack of gold backing. Now the weiner wants to take it away. Again.
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