What happens if our banking system fails?

Second Look at the Federal Reserve by G. Edward Griffin

 

By the way, if the country went to a 100% gold money system the price of gold would jump to $40,000 or in other words the dollar would be devalued 40 to one.

Anyone think the Govt (our owners) would let that happen without confiscating private gold?

 

If there's a run on the banks you might not have access to your safety deposit box. Their doors will be locked.

 

It's been done before.

Executive Order 6102 is an Executive Order signed on April 5, 1933 by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates." It required all persons to deliver on or before May 1, 1933 all gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve. Under the Trading With the Enemy Act of October 6, 1917, as amended on March 9, 1933, violation of Executive Order 6102 was punishable by fine up to $10,000 ($166,640 if adjusted for inflation as of 2008) or up to ten years in prison, or both. Because of this forced immediate sale of gold to the Federal Reserve at the government set price of $20.67 per ounce, this Executive Order is often referred to as the Gold Confiscation of 1933. Shortly after this forced sale, the price of gold from the treasury for international transactions was raised to $35 an ounce; the U.S. government thereby devalued the U.S. dollar by 41%.

The Gold Reserve Act of 1934 abrogated the gold clause in government and private contracts and fixed the value of the dollar in gold for foreign exchange to $35 per ounce. This price remained until August 15, 1971 when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard for foreign exchange (see Nixon Shock).

The limitation on gold ownership in the U.S. was repealed after President Gerald Ford signed a bill legalizing private ownership of gold coins, bars and certificates by an act of Congress codified in Pub.L. 93-373 [1] [2] which went into effect December 31, 1974. P.L. 93-373 does not repeal the Gold Clause Resolution of 1933, which makes unlawful any contracts which specify payment in a fixed amount of money or a fixed amount of gold. That is, contracts are unenforceable if they use gold monetarily rather than as a commodity of trade.

 

More proof that FDR started the commie slide in this country.

But BB, you should be more attentive to sourcing your copy & paste jobs. That's verbatim from Wikipedia's Executive Order 6102 page.

 

I don't think we have to worry about all that. The Federal Reserve isn't going away anytime soon. As our owners they have a vested interest in remaining our owners and seeing as how they control our government and most of the media, well.

No real solution will be put forward by anyone in government or the banking cartel short of another American revolution. And we enjoy the bread and games too much to bother with all that. So,...

Just grin and keep handing over real assets in exchange for more debt.

 

My apologies. I erred when I quoted the figures. It was late.

http://www.infoplease.com/ipa/A0763206.html

Just the 5th largest bank has over 750 BILLION in assets. Remember that not all assets are deposits. That's the mistake people made today with WaMu. Their deposits are FAR less than their assets because they are primarily a lender.

 

:laugh:

FDR saved this country from going Communist, or maybe Fascist, in the 1930s.

 

You can not pad your mattress and, whatever you do, don't remove the tax tag!

 

This is called spreading panic. Get hold of yourselves foks! The situation with a relatively small number of worthless home mortgages doesn't make the entire economic system suddenly worthless. I think some people are looking to use this to force yet another big step towards socialism.

 

If I didn't know better I'd think you might be theorizing a conspiracy is afoot.

 

According to my resource, Brother Little, The sky is Falling. Checkit out:

http://www.iamchickenlittle.org/

 

That's your specialty, Poncho, but it sure seems like a big step - whether intentional or not - in the direction of socialism and, beyond that, the whole idea doesn't even make practical sense. How can buying out something that's supposedly worth nothing with good money be a good deal for the buyer?

 

I think the whole idea of bailing out the "banking system" is like handing a school shooter a loaded AK 47 and dropping them off in a mall parking lot. Socialism? There does seem to be some wealth redistribution in the works but there also seems to be some merging of corporate and government power going on too.

That's corporatism. So it looks to me more like a big step towards socialist corporatism. Either way we'd be better off if the whole system was allowed to collapse around the ears of those who created it, imho of course.

BTW, the Federal Reserve system was created by a small group of men conspiring secretly on Jekyll Island.

 

I think he may have already hit the dirt because the link is dead!