Executive Order 6102 and the "Gold Clause"
derryb
Posts: 36,948 ✭✭✭✭✭
It wasn't about making it illegal to own gold in 1933. . . it was all about removing protection from inflation: The gold clause in a contract.
Gold clauses in contracts provided inflation protection by insisting on gold as a means of settling up. Eliminating the gold clause meant taking away the ability to protect against inflation… and substantially altering the terms of the deal.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
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It was also about giving FDR a leg up on the budget and cleared the way for future deficit spending by revaluing gold right after it was confiscated. Removing the gold clause was simply a breach of established contract law via executive order. Seems like a crappy precedent was set, eh?
FDR tried more shenanigans by trying to stack the Supreme Court by proposing to add more justices, but he didn't get away with it. He also tried to tax private citizens (for the common good) on the food they grew in their own gardens for their own families during the middle of the Depression, but he didn't get away with that either.
FDR's administration was packed with people who visited Russia before FDR's election and were enamored of the collectivist programs that the Marxists in Russia were implementing immediately after the Bolshevik revolution. FDR wanted to implement some of the same socialist models, and indeed he did. Many of those programs, including the collective farms, collapsed on their own.
A good book - "The Forgotten Man" by Amity Shlaes, former WSJ writer.
I knew it would happen.
FDR was also guilty of rounding up thousands of American Citizens including children, women, and the elderly and throwing them in concentration camps because they were of Japanese ancestry. They lost their homes and most of their possessions.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
FDR was a POS
On that note why do you run for a 4th term if you are dying?
It was about robbing Peter to Pay Pal.
The eventual financial chaos will be horrendous. I have no idea how or when the disaster will strike, or even if, through some unknown plan, action or black swan event it can be avoided. However, logic dictates it cannot continue indefinitely. Some of our descendants have a bleak future....Cheers, RickO