I am told that less than 1% of the world population puts money, substantial money, into gold. Most of the world is still living under the government edict that gold cannot be used for legal tender, only government issue notes can be used to settle debts and business transactions.
Gold was made illegal for general currency in the United States by government edict in the early 1930's when the New Deal was brought into effect under President Franklin D. Roosevelt and the government decided that it needed more control over the money supply. They determined that people who were "hoarding gold" were keeping the economy from growing (this was in the low point of the Great Depression) and therefore on April 5, 1933 the president issued Executive Order 6102, ""forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation in the USA.
People were forced by this Kingly Edict, that preceded the Gold Reserve Act by a full ten months, to turn all their gold, including gold certificates, in to the banks in exchange for Federal Reserve Notes or face stiff fines and jail time. This was supposed to free up the money supply, to "liquify" the gold, so to speak, and put the cash into circulation, thus strengthening the economy. It didn't really work, though. The Great Depression dragged on for another 8 years and didn't really come to an end until America was forced into massive production due to World War II. Only then did money begin to flow because of the huge government contracts for ships, armaments, airplanes, infantry and personnel equipment, etc.
The conversion of gold currency into paper debt currency did not kick the economy into action. Peoplel hoarded their FED notes just as they hoarded their gold (a Federal Reserve "note" was at the time a form of promissory note that, at that time, often declared that they could be traded back for either gold or silver upon demand). Even with the fact that the gold, which market value was $20/oz, was traded in at a value of $35 per oz, thereby giving the "gold hoarders" a 75% increase for their bank account, the money was not always put in the banks. The memories of bank runs and closures of 1929-1933 were very fresh and painful in the minds of most adult Americans. They did not trust the banks, not even the Federal reserve system which people even now mistaken to be a government, or Federal, controlled bank.
The people simply did not trust what they could not control, i.e. the economy, the banks, the "system". This holds true today. People today do not save money because of many reasons, one of which is the distrust toward a system they cannot control. People realize the value of their money is depreciating so fast due to inflation, and there is no value gained by keeping their money in the banks, they might as well spend the money in order to get some benefit from what is purchased. Unfortunately this leaves the people always at the beginning line. So, why gold?
Gold has for almost as long as written history been the trusted medium of exchange. Those who had gold had power. They could, and still can, purchase everything from false loyalty to real estate upon which the troops were housed. People, land, houses, and gold. Even with land and houses, people were still mostly impoverished without gold even when their land gave them enough to eat. The gold is the tool that brings wealth and power to get things and to get things done.
"Who has the gold makes the rules" is the golden rule of the world, and it holds true in most cases. It may not be the spiritual rule of love (which rule I fully agree with and seek to adhere to) but it is definitely a rule that applies in many or most situations in which we find ourselves.
I'll go into greater depth in my next posting. In the meanwhile, God Bless and good luck.
Cameron Sevy
Gold was made illegal for general currency in the United States by government edict in the early 1930's when the New Deal was brought into effect under President Franklin D. Roosevelt and the government decided that it needed more control over the money supply. They determined that people who were "hoarding gold" were keeping the economy from growing (this was in the low point of the Great Depression) and therefore on April 5, 1933 the president issued Executive Order 6102, ""forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation in the USA.
People were forced by this Kingly Edict, that preceded the Gold Reserve Act by a full ten months, to turn all their gold, including gold certificates, in to the banks in exchange for Federal Reserve Notes or face stiff fines and jail time. This was supposed to free up the money supply, to "liquify" the gold, so to speak, and put the cash into circulation, thus strengthening the economy. It didn't really work, though. The Great Depression dragged on for another 8 years and didn't really come to an end until America was forced into massive production due to World War II. Only then did money begin to flow because of the huge government contracts for ships, armaments, airplanes, infantry and personnel equipment, etc.
The conversion of gold currency into paper debt currency did not kick the economy into action. Peoplel hoarded their FED notes just as they hoarded their gold (a Federal Reserve "note" was at the time a form of promissory note that, at that time, often declared that they could be traded back for either gold or silver upon demand). Even with the fact that the gold, which market value was $20/oz, was traded in at a value of $35 per oz, thereby giving the "gold hoarders" a 75% increase for their bank account, the money was not always put in the banks. The memories of bank runs and closures of 1929-1933 were very fresh and painful in the minds of most adult Americans. They did not trust the banks, not even the Federal reserve system which people even now mistaken to be a government, or Federal, controlled bank.
The people simply did not trust what they could not control, i.e. the economy, the banks, the "system". This holds true today. People today do not save money because of many reasons, one of which is the distrust toward a system they cannot control. People realize the value of their money is depreciating so fast due to inflation, and there is no value gained by keeping their money in the banks, they might as well spend the money in order to get some benefit from what is purchased. Unfortunately this leaves the people always at the beginning line. So, why gold?
Gold has for almost as long as written history been the trusted medium of exchange. Those who had gold had power. They could, and still can, purchase everything from false loyalty to real estate upon which the troops were housed. People, land, houses, and gold. Even with land and houses, people were still mostly impoverished without gold even when their land gave them enough to eat. The gold is the tool that brings wealth and power to get things and to get things done.
"Who has the gold makes the rules" is the golden rule of the world, and it holds true in most cases. It may not be the spiritual rule of love (which rule I fully agree with and seek to adhere to) but it is definitely a rule that applies in many or most situations in which we find ourselves.
I'll go into greater depth in my next posting. In the meanwhile, God Bless and good luck.
Cameron Sevy
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