It is now official. President Barack Obama last night invoked Executive Order 6102 (2012) which criminalizes the possession of monetary gold by an individual, partnership, association or corporation in the U.S.
The order forbids the hoarding of gold coin, gold bullion and gold certificates within continental United States. U.S. citizens are required to deliver on or before May 1, 2012, all gold coins, gold bullions, and gold certificates owned by them to the Federal Reserve in exchange for $1,412 per troy ounce. Under the Trading With the Enemy Act of October 6, 1917, as amended on March 31, 2012, violation of the order is punishable by fine up to $150,000 or up to ten years in prison, or both.
Executive Order 6102 was an Executive Order signed on April 5, 1933, by U.S. President Franklin D. Roosevelt “forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States”. The order was rationalized on the grounds that hard times had caused “hoarding” of gold, stalling economic growth and making the depression worse. The U.S. government confiscated tons of gold from millions of Americans with the stroke of a pen. In fact, the government took in so much gold from Americans that it ran out of space to hold their ill-gotten bounty. They had to build a new place to hold the gold. That place is called Fort Knox.
Since the Financial Crisis of 2008, the printing presses of the U.S. Federal Reserve have been churning out trillions of new funny-money QE dollars. The money the Federal Reserve creates is by fiat, by will, just like magic. It’s all smoke and mirrors.
The flight to precious metals has begun to accelerate at a pace unprecedented in the last few years at the expense of the US dollars. Ben Bernanke, Chairman of the US Federal Reserve, stated recently, “deflationary risks might re-emerge, implying a need for additional policy support.” No one could have predicted that this “additional policy support” would turn out to be the invoking of the Executive Order 6102 (2012).
The news of the invoking of the Executive Order 6102 (2012) has sent shock waves around the world.
With the U.S invoking Executive Order 6102 (2012), what do you think the price of gold would be when the market opens tomorrow?
That’s right, it would crash.