Zimbabwe hyperinflation pictures

[galtgulch]

I am sure you are all aware that there is presently a hyperinflation going on in Zimbabwe. I came across this link which has vivid pictures which bring the reality of hyperinflation home. I can see it now if this ever happens here except there would be pictures of Ben Bernanke on the trillion dollar bills!

http://www.goldworld.com/articles/zimbabwe...lation-rate/349

Does anyone have any thoughts on whether Obama would pull an FDR and confiscate gold from U.S. citizens?

I gather the likelihood is that he would leave numismatic gold coins alone but would take the bullion coins. Who knows?

galt

[Michael Stuart Kelly]

Galt,

My evaluation: Obama is Nixon with a leftish accent and a little more rhetorical restraint.

His appointments are the first signs of this.

I would not put it past him to try a boneheaded plan with the economy along the lines of Nixon's wage price freeze, but like Nixon, I predict he would back down quickly once the yelling started.

Michael

[Matus1976]

I am sure you are all aware that there is presently a hyperinflation going on in Zimbabwe. I came across this link which has vivid pictures which bring the reality of hyperinflation home. I can see it now if this ever happens here except there would be pictures of Ben Bernanke on the trillion dollar bills!

http://www.goldworld.com/articles/zimbabwe...lation-rate/349

Does anyone have any thoughts on whether Obama would pull an FDR and confiscate gold from U.S. citizens?

I gather the likelihood is that he would leave numismatic gold coins alone but would take the bullion coins. Who knows?

galt

My god, they are going to start needing exponential notation on their currency soon.

[Brant Gaede]

Gold confiscation is unlikely because there is no tie any more to the currency and because the government needs inflation so it doesn't need gold. However, if you are worried you can buy either the GLD or GDX ETFs, one for gold and the other for gold miners; those won't be confiscated.

--Brant

[Michael Stuart Kelly]

Mike (Mateus),

I lived through something similar in Brazil. It's hell and it makes good people do bad things.

Michael

[syrakusos]

Does anyone have any thoughts on whether Obama would pull an FDR and confiscate gold from U.S. citizens?

I gather the likelihood is that he would leave numismatic gold coins alone but would take the bullion coins. Who knows?

Gold was never illegal. (Read here.) It is a rightwing myth that Pres. Franklin D. Roosevelt confiscated gold from U.S. citizens. The "numismatic" loophole of 1933 applied to gold coins struck 1932 and earlier. There were other exceptions as well. The purpose of the law was to move gold from banks to the Federal Reserve.

The exceutive order was undemocratic and anti-market, to be sure. So, too, was the 10% tax on bank profits that closed the marketplace for banking in 1862. In order to have a bank, you had to deposit $10,000 in gold (not silver) with the Treasury. That created the National Bank system, and financed the Northern effort in the War Between the States. For that, Salmon P. Chase took credit as the true architect of the Northern victory.

Edited December 5, 2008 by Michael E. Marotta

[Brant Gaede]

Does anyone have any thoughts on whether Obama would pull an FDR and confiscate gold from U.S. citizens?

I gather the likelihood is that he would leave numismatic gold coins alone but would take the bullion coins. Who knows?

Gold was never illegal. (Read here.) It is a rightwing myth that Pres. Franklin D. Roosevelt confiscated gold from U.S. citizens. The "numismatic" loophole of 1933 applied to gold coins struck 1932 and earlier. There were other exceptions as well. The purpose of the law was to move gold from banks to the Federal Reserve.

The exceutive order was undemocratic and anti-market, to be sure. So, too, was the 10% tax on bank profits that closed the marketplace for banking in 1862. In order to have a bank, you had to deposit $10,000 in gold (not silver) with the Treasury. That created the National Bank system, and financed the Northern effort in the War Between the States. For that, Salmon P. Chase took credit as the true architect of the Northern victory.

First you link to your article that is replete with examples of gold confiscation then you call it a "myth." Of course "gold was never illegal." Imagine if you can lead, wheat and sugar being illegal. Then there was the destruction of contracts involving gold clauses. If gold was moved to the Federal Reserve from banks who then owned that gold and who owned it prior? And is there any real difference here between de facto and de jure when it's government de factoing?

--Brant