Skip to main content

View Diary: OK, *NOW* the Platinum Coin Won't Work, Thanks to Idiots, Cowards, or Knaves (99 comments)

Comment Preferences

  •  FDR seized all privately owned gold (9+ / 0-)

    virtually at gunpoint in 1933, and paid folks 60 cents on the dollar for it.  He did it to boost the economy because the gold standard was strangling it.

    Compared to that, the $1 trillion coin would be a cautious half-measure.

    Orly, it isn't evidence just because you downloaded it from the internet.

    by 6412093 on Sun Jan 13, 2013 at 01:42:38 PM PST

    •  More U.S. political history that people don't know (2+ / 0-)
      Recommended by:
      jessical, worldlotus

      It's news to me as well.  Could you post more about that, with a reference?

      Plaintiffs' Employment Law Attorney (harassment, discrimination, retaliation, whistleblowing, wage & hour, &c.) in North Orange County, CA.

      "I love this goddamn country, and we're going to take it back."
      -- Saul Alinsky

      by Seneca Doane on Sun Jan 13, 2013 at 01:45:36 PM PST

      [ Parent ]

      •  I'd never heard of it either...interesting. (1+ / 0-)
        Recommended by:
        Seneca Doane
      •  The Gold Reserve Act (5+ / 0-)

        of January 30, 1934

        required that all gold and gold certificates held by the Federal Reserve be surrendered and vested in the sole title of the United States Department of the Treasury.[1][2]

        The Gold Reserve Act outlawed most private possession of gold, forcing individuals to sell it to the Treasury, after which it was stored in United States Bullion Depository at Fort Knox and other locations. The act also changed the nominal price of gold from $20.67 per troy ounce to $35.

        A year earlier, in 1933, Executive Order 6102 had made it a criminal offense for U.S. citizens to own or trade gold anywhere in the world, with exceptions for some jewelry and collector's coins. These prohibitions were relaxed starting in 1964

      •  I am lazy (3+ / 0-)
        Recommended by:
        Seneca Doane, worldlotus, DarkestHour

        so most of what I know about FDR abandoning the gold standard and seizing privately  held gold and gold-backed currency came from Wikipedia.  

        According to Wiki, FDR took advantage of an obscure WW I era regulation, and issued his own executive order #6012.

          Apparently gold was seized and repaid at $20.67/oz, although the gov't immediately raised the official  price to $35,  resulting in an immediate profit for the gov't.

        The logic was that the gold standard required banks and others to hoard massive amounts of gold which froze their assets out of circulation, stifling economic activity.

        IIRC, many economists had hated the gold standard for decades.  It had beggared many countries with vibrant economies simply because they lacked large gold holdings.

        I see the former gold standard as roughly analogous to the debt ceiling; both were artifical constructs that destroyed the livelihoods of millions of hard working folks.

        But hey,  I'm not a Citibank alumni, so I'm not an expert on destroying economies.

        Orly, it isn't evidence just because you downloaded it from the internet.

        by 6412093 on Sun Jan 13, 2013 at 05:43:59 PM PST

        [ Parent ]

    •  Well, we were on a gold standard then. (1+ / 0-)
      Recommended by:
      AaronInSanDiego

      We no longer are.

      There is no more worry about redeeming dollars for their gold value.

      "The way to see by faith is to shut the eye of reason." - Thomas Paine

      by shrike on Sun Jan 13, 2013 at 02:02:48 PM PST

      [ Parent ]

    •  FDR welcomed the responsibility. (5+ / 0-)

      Obama doesn't. He wants to share it, at any cost to the American people.

      The Class, Terror and Climate Wars are indivisible and the short-term outcome will affect the planet for centuries. -WiA "When you triangulate everything, you can't even roll downhill..." - PhilJD

      by Words In Action on Sun Jan 13, 2013 at 04:56:53 PM PST

      [ Parent ]

    •  Re (0+ / 0-)
      virtually at gunpoint in 1933, and paid folks 60 cents on the dollar for it.  He did it to boost the economy because the gold standard was strangling it.
      And this behavior is something to emulate? I would consider it to be arguable that this behavior was a crime.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Mon Jan 14, 2013 at 12:53:26 AM PST

      [ Parent ]

      •  I haven't seen evidence (0+ / 0-)

        that anyone even sued over it, to my surprise.

        Orly, it isn't evidence just because you downloaded it from the internet.

        by 6412093 on Mon Jan 14, 2013 at 09:43:13 AM PST

        [ Parent ]

        •  Cases & Gold (0+ / 0-)

          Perry v US was the main Gold Clause case, there were a few others that made it to the Supreme Court. There was a guy in NY who didn't turn in his gold. He was prosecuted, but I don't think anything much happened to him, except that he was forced to sell his gold.

          Sparhawk:
          Sure, popular possession of gold is not intrinsically bad. But a good argument can be made that popular possession of plutonium is. And on planet Earth, too many people have been driven mad by the shinyness of Gold, to have utterly illogical and insane ideas about economics, causing colossal human suffering.

          Hey, we don't have a gold standard anymore in any respect. But simultaneously with Nixon's removal of the last vestige, the stupidest people on earth, the mainstream "economists" took over academia from the Keynesians, who basically had things right. And now the idiots' theories -  based on a nonexistent gold standard - wreak enormous havoc worldwide.  

          Gold induced psychosis has killed many more than plutonium has.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site