Why Gold Owners Are Targets of the Government

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If you own gold, you are in a war. You are under assault. You had better figure this out early.

There is a full-scale war against you. The politicians and central bankers who are conducting this war against you are determined to see that you lose money on your investment.

I have written a detailed report on this: The Gold Wars. You can download it free of charge.

The reason why you are under assault is because you have demonstrated by your purchase of gold or a gold-related investment that you do not trust the monetary policies of your nation’s central bank. If you are an American, this means you do not trust the monetary policies of the Federal Reserve System. You have taken a step that confirms your lack of trust in the government and its central bank. If you think the government and the central bank will sit quietly, while millions of citizens buy gold as a way to hedge against government and central bank policies, you are terminally nave.

A PERPETUAL WAR

Governments and central banks for almost a century have done whatever they could to keep citizens from using gold as a way to hedge their economic futures against the taxation policies of the government and the inflation policies of central banks.

The war escalated a few days after the outbreak of World War I in August of 1914. At that time, central banks authorized commercial banks to cease redeeming paper money for gold at a fixed rate of exchange. For most of the world, that prohibition extended during the war, after the war, during the Great Depression, during World War II, up to today.

The United States government forbade American citizens from owning gold, beginning in 1933 and extending to the end of 1974.

Today, no government is restrained by a gold standard. No government, no central bank, and no commercial bank is required by law to redeem paper money or bank accounts for gold at a fixed rate of exchange.

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Gary North [send him mail] is the author of Mises on Money. Visit http://www.garynorth.com. He is also the author of a free 20-volume series, An Economic Commentary on the Bible.

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