Washington’s War on Gold Coming to an End?
The Government’s Legal Counterfeiting Was Never Going to Win!
“I think we’re in a long-term bull market in Gold. We’re seeing reserve accumulation by central banks. I follow it closely. It’s my biggest position.”
– US Treasury Secretary Scott Bessent
The US government’s war on gold has been a long, costly, and futile affair. So costly have Washington’s efforts been to discredit gold that they could well be considered criminal in intent, designed to protect the government’s morally felonious “legal” counterfeiting.
Chief among Washington’s assault on Constitutional money was making the ownership of gold a criminal offense for four decades beginning in the 1930s.
A skirmish on another front at the same time also put Washington’s duplicity on display. The Federal Reserve helped conceal the costs of World War I through monetary inflation that devalued the dollar, practically doubling prices throughout the economy. To protect themselves, buyers of U.S. Treasury debt during the period insisted that the bonds be payable in gold. These bonds were called in for redemption in 1934 during Franklin Roosevelt’s administration. Despite the bonds’ clear language upon which the buyers had relied — “The principal and interest hereof are payable in United States gold coin of the present standard of value”— the state repudiated its promise and bondholders were swindled out of billions of dollars.
The war on gold appeared to be won by the State in 1971 when Washington repudiated its long-promised redemption arrangement with world governments of dollars for gold. But the price of gold has risen almost ever since, while the purchasing power of the dollar has been in continuous decline.
In 1978-79, Washington auctioned off 491 tons of the people’s gold in 19 separate sales. Even to the casual observer it was evident that the auctions were designed to drive the gold price lower – which perversely resulted in less than the highest prices for the ultimate owners of that gold, US citizens. But under the circumstances of the raging inflation the Fed’s money printing produced during that decade of stagflation, the price of gold roared higher and higher nonetheless.
And then there is Washington’s pathetic measure to use tax rates to penalize its own people for seeking to preserve their wealth. The IRS seeks to tax gold and silver as “collectibles,” and apply a punitive rate of taxation. Nobody much cares since the alternative of the dollar has been correctly called “a certificate of guaranteed wealth confiscation.”
So, Washington’s war on gold has indeed been a long, costly, and needless affair. Today the ultimate victory of gold is plain for most people to see, with the world beginning to de-dollarize in favor of gold, and with the gold price climbing to one new high after another.
Even the current Treasury secretary gets it.