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Re: If gold is made illegal.

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  • Wed, Dec 23, 2009 - 12:37am

    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: If gold is made illegal.

Um, Americans still don’t have a clue about gold (or much anything else, for that matter) and for all practical purposes don’t own any, meaning that there’s nothing much for the government to confiscate.  Besides, the US government didn’t do very well the first time around, as most Americans refused to turn their gold in (because the government didn’t know who owned what back then and appealed primariloy to “patriotism”).  And in any case, it wasn’t confiscated; it was nationalized — which, in today’s globalized 24/7 world, would be so counterproductive as to be suicidal, as the worldwide price of gold would skyrocket, thereby crashing the dollar.

Moreover, if the government were to nationalize gold amid a Weimar-style hyperinflation, well, so what?   In a modern, industrialized society (which Weimar Germany wasn’t, being largely agricultural), hyperinflation would mean a breakdown of the banking system (no credit cards, ATMs, etc.) and thus no commerce to speak of beyond barter.

A collapse of civilization as we know it, in other words, in which case gold (and silver) would only be of value afterward, assuming — accent on assuming — you lived through it.