It does seem ludicrous. But think about this. What if the govt. puts a 90% tax on all gold silver sales? Then gold at $2000 then is only worth 200 to you. Then it is not even worthwhile for you to hold metals. Remember it was illegal for citizens to own gold until the late 70s. Who says they won't make it illegal again?
Sound crazy? Well, 10 years ago, would it have sounded crazy that the govt. illegally wiretapped, tortured, could hold us without trial for as long as they wanted?
In other words, those things that sound crazy now are actually a possibility. I would not put anything past a govt. that is desperate.
February 15, 2011 6:26 AM Dave Harrison said...
The confiscation strategy won't be used on individuals per se, but rather on gold holdings. This will include the banks, miners, etf's, etc. This gives them a gateway to liquify temporarily until after the reset. After the reset the bullion banks get their gold back (they held it all along), the miners don't hold gold so it's essentially a nationalization of what's in the ground and they'll be paid handsomely for it and the ETF's will be busted anyway so it's an exit ramp for them (due to short positions and backwardation of the Comex).
As far as consumers, gold dealers, etc. it will just be so highly regulated that it will be tough to buy and sell precious metals because they'll be lumped in with the war on terror as the currency of terrorists. Regulation and taxes will impede the liquidity (on the consumer level) and provide for closer tracking of holdings by the government. You'll have a chance to cash in at a higher redemption rate prior to the reset which a lot of people will do. Those that don't will find it more difficult to sell their gold here in the States.
Keep in mind the IMF is proposing two currencies. One for wealth and one for transactions to mitigate systemic risk. The transactional one won't be based on a fractional reserve system. It's the store of wealth system that will have a new global gold backing.
Good luck trying to get around this. Anything you buy with a credit/debit card or any wealth you store in a paper-based asset (mutual fund, 401k, etc.) will be subject to the new global 2-part SDR.
There are solutions, but they require an entirely new set of values and a recognition of the importance of community and neighbors in the scheme of understanding what wealth is. You can read more about the plan here: http://tradewithdave.com/?p=5310 and here: http://tradewithdave.com/?p=5262
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