[Homestead] gold back currency anyone?

Clansgian at wmconnect.com Clansgian at wmconnect.com
Sun Dec 7 22:16:14 EST 2008



> >Your answer to the one point the blogger made below warrants this further 
> question.  So, if a person does believe that in five, ten years, or less, 
> that free markets somewhere in the navigable world will be operating, then 
> having 'some' gold is not a terrible idea ?

Bob, things got bad in 1929 and a lot of people followed the old Gold 
routine.  In 1933 they were required by law to turn over all their gold to the fed 
and receive (about) $20/oz in paper money for it.  Then the government declared 
that gold was worth $35/oz and there you were holding all that paper money now 
worth around half what it was before.

Someone else bought up, lets say, beans, steel, rum, anything instead of 
gold.  In 1933 those things (because of the devaluation of the currency in the 
gold confiscation) were now worth roughly double what they had been previously 
worth.

What?  Was holding gold a good idea or a terrible idea?

Even if you disobeyed the law and kept your private stash of gold, you were 
prohibite from ever trafficking in it.  Only the Fed was allowed to buy your 
gold.

This not an isolated instance, it has happened repeatedly through history 
even in ancient times.  If we go through really bad times, as we well may, I very 
seriously dobut you are going to be able to waltz into a bank and cash in any 
of your gold.  Neither is anyone else so its barter value diminishes greatly.

All the long list of things you hear about gold being portable, ten thousand 
in your pocket and such, makes gold have one more characteristic that has been 
brought into play time and time and time again in history .... it is very 
easy to take it away from you.


James



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