Going After the Gold

What does gold have to do with medical care? Ingested, it’s a poison. It’s not often used in treatment.

So why did the Obama administration place a provision further regulating the buying and selling of gold into the Democrats’ medical reform legislation?

Economist Thomas Sowell explains, in a recent column, why politicians are obsessed with the yellow metal. Before FDR, gold provided a check against politicians’ desire to spend the money government could “just print.” Because, in those long-ago days, paper dollars were backed by gold, Americans would cash the paper in for gold when it looked like the Treasury had gone on a printing spree. So inflation (the increase of the supply of money, and the consequent diminishing of its value, leading to increasing prices) was checked.

In 1933, FDR confiscated most of America’s circulating (and hoarded) gold, and Nixon took us off the gold standard completely in the ’70s, morphing our monetary system into a pure fiat (inflationary) standard.

Also in Nixon’s time, it became legal, again, for Americans to own gold.

So why make it harder, now, to trade in gold — when gold is not money?

Because investors, in times of inflation and crisis, turn to gold as a hedge. Against politicians, basically. And, says Sowell, “the Obama administration sees people’s freedom to buy and sell gold as something that can limit what the government can do.”

Gold, like freedom, “cramps the government’s style.”

That speaks volumes about gold . . . and “Obamacare.”

This is Common Sense. I’m Paul Jacob.


3 Comments so far ↓

  1. Oct
    8
    9:03
    AM
    voxoreason

    >>…Nixon took us off the gold standard completely in the ’70s, morphing our monetary system into a pure fiat (inflationary) standard.

    But wasn’t this because France was demanding payment for their exports to America in gold?

    I don’t mean to carry water for Tricky Dick, but at least the man wasn’t the total political buffoon that the current White House occupant strives unctuously to prove himself to be on a daily basis in his ongoing efforts to deny reality and talk himself out of the mess of his own creation (yeah, W is responsible for that, too… nyuk, nyuk, nyuk) that has cost him the support of a substantial part of what is laughingly referred to (see “nyuk, nyuk, nyuk,” above) as “his base.”

    Of course, had Nixon gone realpolitik back then and burned the tapes, we might have had a very alternate reality, c’est no? Or say yes, but please come to a decision.

    Interesting to note that Sarah Palin is doing exactly what I had anticipated: pulling a Reagan by traveling the country and making some nice new friends and raising the gift that keeps on giving: cold, hard cash. You go, girl! (My Sarah calendar expired this year. Bummer. It hung beside my snappy framed photo of Ayn Rand and a respectful drawing of Reagan. These are a few of my favorite things. Well, “people,” but… And that’s a big butt.)

    Now, if Todd can only keep his tongue in cheek and OUT of, say, the DailyCaller.com… Yeah, these guys call daily… and I listen. RedState is better, but anything beats your avg liberal echo box, eg, MSNBC, cable or Internet… and never the twain shall meet. (And I’ve love to meet Twain, wouldn’t you?) Tucker Carlson: what a he-man! He’s my hero du juor. In the running for tomorrow: any republican pol that strangles our footprint-tongued heep o’ veep… as opposed to raising the issue of a balanced budget.

    Mr Palin on Joe Wilson: “It wasn’t as bad as I had heard”? Fact checker, please! Todd, how ’bout a nice display of “going off half-cocked”? Brenda Lee the Closer: Thang kyew! Uh, I think I would have gone with “hommina, hommina, hommina…”* (Not sure of the spelling there.)

    *Second choice: Ooo eee, ooo ah ah Ting tang walla walla, bing bang…

    Hat tip to digitaldreamdoor.com for that last nugget. Man, you can find ennythin’ (John Lennon’s pronunciation, “From Me to You”) on the web!

    God bless.

    Tangentially yours… vox

  2. Oct
    8
    10:34
    PM
    Egon

    When hyper inflation arrives and gas prices go to $ 10 or milk to $12 a gallon, a loaf of bread $ $8 then these Marxists-”Progressives” bring their “solution” : Price Controls…they blame the evil oil companies, evil dairies and evil (“Greedy”) bakers for the “high” prices or “gauging”…then these and many other controled products can only be found on the black market…yada, yada, yada,..I’ve seen this flick several times before and it’s totally predictable. Yet the masses still fall for it.

  3. Oct
    8
    10:36
    PM
    Egon

    The good news is, there are many commodities potentially more profitable than gold and silver.
    Especially those related to food.

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