Monday, October 10, 2011

Also written for a talkback:

This was a more detailed talkback about the one other time We the People lost a Right but eventually got it back.  Cam mentioned prohibition on air.  I mentioned in a talkback the right of Americans to own gold.
In more detail:

In 1933 FDR signed an Executive Order outlawing American citizens owning gold.  All gold was called in to the Federal Reserve at an exchange rate of $20.67 per ounce Troy.  It was reissued in trade with foreign banks at $33.00 an ounce.  (Another way of looking at it is that at the start of the ban the dollar was worth a little over 1/20th of a Troy ounce of 24K gold.  When reissued the dollar was only worth 1/33rd of an ounce, but Americans were barred from owning any.) It wasn't until 1974 that Gerry Ford rescinded that order and We the People could invest in gold.  Of course that was three years after Nixon took the dollar off the gold standard.  That was August 15, 1971.  The day the dollar died.  As I write this, Kitco lists gold bullion at $1,682.30 for one Troy ounce.  Or the dollar is only worth 1/1,682nd of an ounce.  At that rate one dollar will buy you all of 0.0185 grams!

So much for the Almighty Dollar...

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