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.