Andy Hoffman joins Elijah Johnson of Finance and Liberty and Chris Duane of Silver Shield Xchange to discuss the gold to silver ratio, housing and will there be a windfall profit tax on precious metals. This is part 3.
Gold Confiscation & Windfall Profit Taxes?
by Archive Writer | Nov 25, 2014 | Interviews and Appearances | 5 comments
Re. Equivalent price of silver …
A rule of thumb that I have found helpful: historically for thousands of years, until the early part of the 20th century, an ounce of silver has served as the fair wage for two weeks of labor for a skilled worker.
Re. Windfall taxes on precious metals
From this: Transacting in Gold Can Shaft The IRS
Brian Domitrovic, Forbes, September 8, 2014
“Currently, in federal law, if you buy things with gold, for example, you have to declare as taxable the gain on any market appreciation of the gold you used to make the purchase.
“Actually, it’s not real federal law. It’s just a piece of ‘administrative law,’ that poor relation of real law, which an agency, the Internal Revenue Service, came up with outside of the Congressional and the judicial processes. If you look at real law, statutes signed by the president and Supreme Court decisions over the centuries, it has been affirmed time and again that the feds must consider gold and silver coins and their own paper notes as dollars as denominated, one and the same.”
Also remember that gold was seized in 1933 via. Executive Order. The best that I can tell, there has never been a properly enacted law that has taken away precious metals ownership, either through through confiscation or taxation.
FYI, not a single ounce was confiscated in 1933.
Back then, dollars were gold-backed. In the early 30s, the government “asked” Americans to trade their gold for gold-backed dollars, so they could issue more money and get out of the Depression. Americans trusted their government, and the gold-backed dollars they’d receive, and did so willingly.
When the government “reneged” in 1933, Americans were angry, and none gave up gold that hadn’t already. None was confiscated, and Americans forever mistrusted their government.
With good reason.
Re. Confiscation of gold in 1933
We’re arguing semantics.
Executive Order 6102 criminalized the possession of monetary gold by any individual, partnership, association or corporation. Hoarding (i.e. keeping) “gold or silver coin or bullion or currency,” subjected citizens to a penalty of $10,000 and/or up to five to ten years imprisonment.
Gold backed dollars were indeed issued, but they couldn’t be redeemed by subjects. All you got was a paper promise which was finally totally rebuked by another Executive Order in 1971. Thus, I stand by my assertion that our gold was indeed confiscated by the government.
A draconian fine of about $150,000 in today’s currency and 10-years in jail can be very persuasive indeed, but it does cast doubt on the degree of willingness of citizens. Would such a large club be needed if the people truly wanted to swap their physical for paper?
And as far as trust in government is concerned, just wait until the system completely collapses with a systemic failure followed by hyperinflation. We ain’t seen nothing yet, baby!
I didn’t say the confiscation decree wasn’t issued. Only that no gold was actually confiscated.
And this time around, none would either – particularly as the government wouldn’t even dream of such lunacy until the dollar had already collapsed; per this, one of my most timeless articles…
I have already on a few occassions bartered with silver for something I wanted (i.e., gun, ammo, etc.)
Me nor the seller is reporting any thing and that is how a whole lot of silver and maybe a little gold will be used during and after the upcoming collapse. Any one worrying about such silly things as laws when trying to just survive maybe will not survive.
No gold and/or no silver? Then all of your paper things (cd’s, bank accounts,savings accounts, money markets, stocks, bonds, etc. will leave you flat broke. Please don’t make me laugh and mention the FDIC !!! The FDIC has less than 2% of all accounts so called insured and further more under new laws your so called fiat money is now a loan to the bank that you may well never see again.
I guess you could go to the bank and ask for a kiss because that’s probably all you could get if they are willing to do so.
I’m wasting my time as Americans are too dumbed down to see the truth until it is too late and THEN IT IS TOO LATE.
After the collapse if you could live another 60 years you will never again recover from your loses and your poor family will be a victim as well.