Economic Sanctions Cause War, Not Peace—–Some Lessons From FDR’s Embargo Against Japan

http://davidstockmanscontracorner.com/economic-sanctions-cause-war-not-peace-some-lessons-from-fdrs-embargo-against-japan/

On This Day in 1933

http://www.zerohedge.com/news/2013-06-14/day-1933

The Day the Government Seized Americans' Gold - April 5th 1933

http://www.goldcore.com/goldcore_blog/day-government-seized-americans-gold-april-5th-1933

Is Gold and Silver Registration Coming to Illinois?

This bill won't pass, but expect more versions of it to come up in the future.  Research Executive Order 6102 in 1933, signed by FDR.  And then Google what he did in 1934.  Confiscation and theft are the only two words to describe that bait-and-switch.

http://libertyblitzkrieg.com/2013/01/10/is-gold-and-silver-registration-coming-to-illinois/

So let me get this straight.  First they want gun registration and now precious metal registration?  I’m sure the government would only use such information in our best interests, because as we all know: Your Government Loves You.  Sounds reasonable, after all, only “terrorists” buy guns and gold anyway.

Meet the ” Precious Metal Purchasing Act” or SB3341, brought to you by the lovely folks at the Illinois 97th General Assembly:

FDR provoked the Japanese attack on Pearl Harbor

http://rationalrevolution.net/war/fdr_provoked_the_japanese_attack.htm

These are excerpts from the McCollum Memo, dated October 7, 1940.  Replace "Japan" with "Iran" and the parallels today are ominous.

The McCollum Memo can be viewed here (I strongly advise that you read the entire memo by clicking the image above):
Of critical importance in this memo is the portion that reads:

9. It is not believed that in the present state of political opinion the United States government is capable of declaring war against Japan without more ado; and it is barely possible that vigorous action on our part might lead the Japanese to modify their attitude. Therefore, the following course of action is suggested:
 A. Make an arrangement with Britain for the use of British bases in the Pacific, particularly Singapore.
 B. Make an arrangement with Holland for the use of base facilities and acquisition of supplies in the Dutch East Indies.
 C. Give all possible aid to the Chinese government of Chiang-Kai-Shek.
 D. Send a division of long range heavy cruisers to the Orient, Philippines, or Singapore.
 E. Send two divisions of submarines to the Orient.
 F. Keep the main strength of the U.S. fleet now in the Pacific in the vicinity of the Hawaiian Islands.
 G. Insist that the Dutch refuse to grant Japanese demands for undue economic concessions, particularly oil.
 H. Completely embargo all U.S. trade with Japan, in collaboration with a similar embargo imposed by the British Empire.
  10. If by these means Japan could be led to commit an overt act of war, so much the better. At all events we must be fully prepared to accept the threat of war.
- H. McCollum

Happy Days Are Here Again

Ummm...not really.

http://www.martinarmstrong.org/files/Happy%20Days%2010-20-2011.pdf

The Bank Runs Of The Early 1930s And FDR’s Ban On Gold

http://blogs.forbes.com/richardsalsman/2011/04/06/the-bank-runs-of-the-early-1930s-and-fdrs-ban-on-gold/

The article is generally accurate, but a couple clarifications are in order,

1) After FDR confiscated private gold holdings via Executive Order 6102 in 1933, gold was re-priced from $20.67 to $35 in 1934.  That's how the author came up with this calculation:

...so FDR’s Treasury, not private gold owners, profited from the 60% gold-price jump.

2)  The price of gold remained fixed at $35 until 1971 when Nixon took us off the gold standard.  It was later officially re-valued to $42.22 in 1973 (where it remains today), despite a floating market price.  Hence, my confusion by the author's comment:

Since private gold holding was legalized, the gold price has increased by nearly eight-fold, from $185/ounce to $1464/ounce, and precisely because the U.S. dollar, officially unhinged from gold, has declined in basic purchasing power.

Overall, I agree with the tone and the basic premise of the article:  the price of gold will increase as long as the Fed and US Treasury continue to debase the USDollar.

Executive Order 6814 - Requiring the Delivery of All Silver to the United States for Coinage

Apparently gold wasn't the only precious metal confiscated by Executive Order.  FDR also confiscated silver with Executive Order 6814 in 1934.

http://www.presidency.ucsb.edu/ws/index.php?pid=14741#axzz1Gm5VOpBU

Search Executive Order 6102 to see the blog entries for the confiscation of gold.  Or just click here.

Depression within a depression

Again, the myths of FDR and his role in the Great Depression are dissected, coming up with different conclusions from what Keynesian economists want to admit.

http://theburningplatform.com/blog/2010/10/23/depression-within-a-depression-featured-article/

California authorities investigating Goldline's sales practices

This is a nice hit piece by ABC News' George Stephanopoulos on Goldline's executive for their alleged boiler room sales practices. Notice Goldline's Scott Carter's response to Stephanopoulos' assertion that the government can't confiscate the citizen's gold. In fact, FDR absolutely banned private gold ownership in 1933 by Executive Order. See below.



Executive Order 6102, issued April 5, 1933:
http://www.wellsfargonevadagold.com/confiscation-order.pdf

Criminal Penalties for Violation of Executive Order
$10,000 fine or 10 years imprisonment, or both, as provided in Section 9 of the order.

Diminishing purchasing power of the USDollar

If a picture is worth a thousand words, this graph may be worth several trillion dollars. Guess when the Federal Reserve Bank was established? Look where the US Dollar falls off the cliff. 1913 would be the correct eyeball guess.

In 1933, Franklin Delano Roosevelt confiscated American citizens' private gold in exchange for $20.67/ounce, and then immediately reset the new price of gold at $35/oz. Americans who complied (non-compliance carried a $10,000 fine and 10 years in prison) immediately took a 40% loss in their cash holdings as a result. And thus, Ft. Knox was created.

Fast forward to 1971, when Richard Milhouse Nixon removed the USDollar from the gold standard completely, as the Treasury couldn't meet redemption demands, due to large deficits run up by the Vietnam war.

Hence, we have a nice trajectory for our graph--that is, if you like ski slopes.