In this section

Click HereFacts about Gold

Click HereThe Right to Own Gold

Click HereGold and Currency

Click HereThe Crashing Dollar

Click HereGold's Purchasing Power

Click HereObama & the New Depression

Click HereGold Confiscation

Click HereTrading With The Enemy Act of 1917

Click HereThe 15% Rule

Click HereEminent Domain Clause

Click HereOutlook for Gold

Why Gold?

The Eminent Domain Clause of the Fifth Amendment states, in part... "nor shall private property be taken by the government for public use, without just compensation."

LearnThe government paid the "official" price of $20.67 per ounce in 1933. What would a "just" price be for "numismatic" gold coins? To administrate the grading and pricing of each individual coin would present a monumental task. Since the purpose of the recall was to force the citizens back into the banking system it made no sense to worry about "a pimple on the elephant." Most of the gold was now in the hands of the government. They had increased their holdings from $4 billion to $7 billion and laid off "paper money" on the citizens in exchange.

This was a sad day for freedom in America. Whatever happened to the laws laid down by our founding fathers? As they stated in the Constitution of the United States of America, Art 1 sec. 8 and 10, "The Congress shall have the power...to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures... No states shall make anything but gold and silver coin a tender in payments of debts."

"You're the target because you're where the money is."

By stripping our money of a gold backing we created the seeds of inflation. The government was free to create money at will without discipline. Politicians quickly learned how to "buy votes" with borrowed money - called deficit spending these days. The unavoidable result was massive government debt. We are now facing a debt crisis, one you could argue was caused ultimately by the confiscation of gold. And it is aimed at us!

Impact

Dr. Gary North says, "The accelerating debt crisis is aimed at four identifiable targets: (1) the successful professional, (2) the upper-middle class investor, (3) the retired person was productive enough in his working years to escape becoming dependent on Social Security, (4) holders of U.S. government debt. These people will be called on by the government to make 'necessary sacrifices' to save the system from bankruptcy. And when I say 'called on,' I mean compelled by law."

In providing a defensive strategy North astutely points out that...

"The economy is now trapped between the deflationary pressures of defaulting institutions that have been guaranteed by the federal government, or institutions that cannot be allowed to fail even though there are no legal guarantees (such as the insurance industry), and inflationary pressures created by the need for liquidity. It's a case of the looming implosion of collapsing liquidity vs. the need for an explosion of fiat money to avoid the implosion's bankrupting effect."

Invest"Every investor in the United States is caught between these two pressures. He cannot avoid them. He has to make a decision: Which force is more powerful in the long run? He must also decide: Which force is more powerful over the next part of the business cycle? The American investor needs to get some of his money offshore, or at least into financial instruments denominated in the assets other than dollars."

As soon as the Fed begins to inflate you should move heavily into gold. The Fed has been monetizing (buying government bonds with newly created money) at double-digit rates for a year now. This kind of inflationary policy brought about $850 per ounce of gold 13 years ago.

{Publisher's Note: According to Howard Phillips, Chairman of the U.S. Taxpayers Party, during the 137 year period between 1776 and 1913 the United States dollar experienced a modest inflation rate of just 16%. During the 81 year period between 1913 and 1994 the United States dollar experienced the horrendous inflation rate of over 900%. One can only imagine how the financial architects of the New World Order will further pillage your buying power if we move into a hyperinflationary period similar to Germany, when the Mark experienced a 100% inflation rate monthly between 1919 and 1923!}