The Government-Gold Screw Job of 1933
Art Arbutine of Belleaircoins.com has a nice pamphlet titled “Everything you wanted to know about buying and selling precious metals, and then some!!!!!”
I have to admit that I was certainly intrigued by the five exclamation points, with the result that my Super Mogambo Senses (SMS) switched to high-alert status, looking for signs of danger, at the sight of them.
And fortuitously so, as I soon found dangerous things! Firstly, he writes of Roosevelt in 1933 infamously ordering that everyone turn in their gold at the nearest bank and receive fiat currency in exchange.
Even then, it was a government Big Screw Job (BSJ) because “At the time,” he writes, “a $20 gold coin contained over $20.80 worth of gold, but the citizens got only a $20 bill.”
Re-read the previous paragraph, and see if you detect a Big Screw Job (BSJ) in getting a $20 bill in exchange for $20.80 in gold, too.
Being a paranoid, conspiracy-nut, lunatic whacko like I am, I contribute to the genre by declaring that Franklin Delano Roosevelt was a cripple who was confined to a wheelchair, and who was so angry about his infirmity that he said, “I may be crippled and in this wheelchair, but I can still give an instant 3.9% Big Screw Job (BSJ) to an entire country by forcing the citizens to accept a lousy $20 bill for $20.80 in gold! Up yours, Americans, walking around and laughing at cripples like me! Hahaha!”
And, I reveal for the first time, Eleanor was right behind him, yelling, “Give it to ’em good and hard, Frankie, and maybe we can get Congress to give us some of the money to fix my huge teeth!”
While that story is perhaps apocryphal, especially seeing that I just made it up, there is no question that the BSJ continued, as next, Mr. Arbutine writes, “Many of the big banking institutions shipped those $20 gold coins to Switzerland and other European banks where they received the full amount,” giving the banks an instant 3.9% gain!
Next, as part of the next Big Screw Job (BSJ), “By another executive order seven months later (after all the gold was confiscated) the dollar was revalued in terms of gold, making a $20 gold coin worth $35 in paper dollars,” in effect handing Swiss and “other European” banks a nice, instant 68% gain! (($35 – $20.80) / $20.80)! Instantly!
So, I figure something like that is “in the works” since there is nothing that can be done to save the economy, even by robbing the people with taxes, and/or killing enough old people and poor people so that Social Security, Medicare, Medicaid and all the welfare programs cost less, and/or constantly trying to print enough money to spend our way out of debt by adding to the debt.
Most likely, it will be a little of all three, and more. And under any scenario you can name, including these three, gold, silver and oil will go up mightily in price, not only to match the roaring inflation caused by the Federal Reserve (and the other central banks around the world) creating so staggeringly much new money, but almost certainly with a huge premium because the future is so bleak!
And so if you are NOT buying gold, silver and oil, then I gotta ask, “What in the hell do you want out of an investment besides virtually guaranteed huge gains and zero effort? I mean, you must be very hard to please, because, whee! This investing stuff is easy!”