Skip to comments.Congressmen Weiner and Waxman Set Gold Hearing
Posted on 09/17/2010 8:21:52 AM PDT by markomalley
Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury. A press release from Rep. Anthony Weiner, Democrat of New York, not yet (as of this instant) posted on Mr. Weiner's Web site, announces that a September 23 hearing of the Subcommittee on Commerce, Trade, and Consumer Protection (a subcommittee of Rep. Henry Waxman's Commerce Committee) will focus on "legislation that would regulate gold-selling companies, an industry who's [sic] relentless advertising is now staple of cable television."
From the press release: "Under Rep. Weiner's bill, companies like Goldline would be required to disclose the reasonable resale value of items being sold." That's great. Are Mr. Weiner and Chairman Bernanke also going to agree to print on every dollar the reasonable expectation that its value will be eroded by inflation?
Gold investors (or speculators) are already punished by the federal government by having their investment, even in a gold exchange-traded-fund, taxed at the higher rates that apply to collectibles rather than long term capital gains.
Buy bullion. All sorts of problems with taxing that.
How could a company disclose the resale value of a commodity whose value changes on virtually a daily basis? This would just cause a flury of securities fraud lawsuits.
FDR REDUX. And almost certainly with the same result: A LOT of midnight gardening.
File this either under What is past is prologue or Everything old is new again.
This letter came to my attention many years after my grandfather went to his final reward. I am saddened that he never knew that some of us down-liners inherited his outrage gene. I am further saddened that he and I never had a chance to discuss these matters.
In the approximately once per generation economic excesses and insanity almost always triggered by the existence of un-backed fiat paper money a minority of citizens living through the madness grasp whats going on. But only a small handful speak out about it.
I have been speaking out about it since my late friend Tupper Saussy introduced me to Roger Sherman.
I am proud that my grandfather was also one of those who spoke out.
Unfortunately, few have either the desire or capability to grasp the nexus of the problem let alone try to affect the necessary changes.
Yet we persist as the alternative is too grim to contemplate.
And if you dont think YOU will not be impacted or like Neal Boortz think you can outrun whats coming, that flapping sound you may hear are some very BIG buzzards coming home to roost — at YOUR house!
May 13, 1938
Mr. Uncle Sam
c/o Henry Morgenthau, Jr.
My Dear Uncle:
I am in receipt of a letter dated May 5th, from Mr. Morgenthau, which letter he signed as your Secretary of the Treasury. According to the dictionary, a Treasury is, among other things, a place in which stores of wealth are deposited, and as there does not seem to be any wealth in your Treasury, it would seem that he should have signed the letter as your Treasurer of the Deficit, as, according to the dictionary, a Treasurer is, among other things, an officer who receives the public money and disperses it and, as he has dispersed a great deal more money than he has received, he is in charge of a Deficit, instead of being in charge of the Treasury.
In his letter, he attempts to persuade me that I should lend you some money by buying Savings Bonds and he states that more than 1,260,000 people own more than $1,600,000,000 maturity value of these bonds, in addition to which, I understand that you owe about $36,000,000,000 on various other kinds of bonds and notes, and that you have a contingent liability of additional billions. In his letter, he states that the savings bonds mature in ten years from the date of issue, and that they may be redeemed for a stated amount at any time after sixty days from the date of issue. This all sounds very impressive, but when these bonds mature, or in case an effort is made to have them redeemed previous to maturity, I am wondering what you will exchange for them. Will it be food, clothing and housing, or will it be 59 cent dollars of some other much greater reduced value, which dollars, as was the case with the German Mark, under similar conditions, may be of value mainly as waste paper?
When considering an application for a loan, the reputation of the prospective borrower is generally considered to be of first importance, and to be real frank about it, your actions during the past five years have not been such as to inspire confidence in you, as in addition to spending in countless foolish ways, a great deal more than your income, you have not been absolutely honorable, truthful and reliable. After borrowing large sums of money upon the promise to repay it in gold, you decided not to do so. In addition, you took from your nieces and nephews all of the gold which we had and buried it in the hills of Kentucky. I am wondering if you think that by planting it, you can cause it to grow in value, or if, like whiskey, you think the quality of it will improve with age. You are also forcing your nieces and nephews to turn over to you large sums of money, which you have promised to save for us and to return to us when old age overtakes us. Instead of saving this money for us as promised, however, you have been spending it as fast as it is received, in what appears to be nothing more or less than a drunken joy-ride.
Even though one of your age and experience should realize that it does no good to prime a broken pump, especially after having tried it for several years without success, you continue to prime the business pump, and to kick and cuss it and work on it with a sledgehammer.
I addition to other things, the frequent use of a hypodermic has done you no good, and probably explains why you penalize and abuse your nieces and nephews who are thrifty and industrious, and reward those who are incompetent and lazy; why you killed five or six million little pigs, even though our political friends are always hungry for pork; and why you destroyed crops of cotton, wheat, corn, etc. to the advantage of producers in other nations.
Like any incompetent spendthrift who violates all the tried and tested laws of economics, there must be a day of reckoning for you at some time in the future, at which time you will find it impossible to pay your debts, or else you will be obliged to pay them in depreciated currency. In either event, it does not appear to be safe or wise to lend you any more money to be used by you in making whoopee and playing Santa Claus. In order to save you from yourself and to prevent the dissipation of what few assets you may have left, a guardian should be appointed for you but this will take time and probably cannot be accomplished previous to 1940.
Your distressed nephew,
Karl W. Bachert
Buy silver then!
Please Please Please call Glen Beck up to testify. I plead with you showboating losers, get Glen in front of your committee to talk about Goldline and how the gold markets work.
Wiener and Waxman are only doing this to intimidate Beck’s sponsor. What jerks.
ping for later
A simple glance at the financial section of any newspaper would answer that question easy enough.
These companies mark up the gold alot when they sell it physically. Say gold is 1200 an oz. they may charge you 6500 for 5 oz,a $500 markup. If you went back to sell it to them the next day they would probably offer to pay you 5700 or 5800. Thats what i understand this bill to be about.
What gives them the right?
Which enumerated power?
If an investor is too lazy to look up the market price for gold before he buys some from a retailer, then that’s his fault. It’s not Goldline’s responsibility to do an investors due dilligence for them so long as they make no material misrepresentations as part of the sale.
Spot Prices per Ounce
Gold Spot (Bid) $1,276.15
Gold Spot (Ask) $1,278.66
Our Sell Price
1-Ounce American Gold Eagle $1,378.60
2010 Gold Eagle NGC MS69 $1,381.79
Our Buy Price
1-Ounce Gold Eagle (1-19 pcs) $1,291.20
1-Ounce Gold Eagle (20+ pcs) $1,300.14
Please refrain from profanity.
Any regulation for gold can be applied to silver.
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