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Congressmen Weiner and Waxman Set Gold Hearing
Seeking Alpha ^ | 9/16/2010

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.


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: business; congress; democrats; freedom; freeenterprise; gold; government; investments; markets

1 posted on 09/17/2010 8:21:53 AM PDT by markomalley
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To: markomalley

Buy bullion. All sorts of problems with taxing that.


2 posted on 09/17/2010 8:26:18 AM PDT by agere_contra (...what if we won't eat the dog food?)
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To: markomalley
"companies like Goldline would be required to disclose the reasonable resale value of items being sold"

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.

3 posted on 09/17/2010 8:31:40 AM PDT by circlecity
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To: markomalley

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 what’s 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 don’t think YOU will not be impacted or – like Neal Boortz –think you can “outrun” what’s coming, that flapping sound you may hear are some very BIG buzzards coming home to roost — at YOUR house!

http://www.youtube.com/watch?v=lIo8FJJMps8

**************

Coshocton, Ohio
May 13, 1938

Mr. Uncle Sam
c/o Henry Morgenthau, Jr.
Washington, D.C.

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


4 posted on 09/17/2010 8:32:03 AM PDT by Dick Bachert
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To: markomalley

Buy silver then!


5 posted on 09/17/2010 8:32:10 AM PDT by 2001convSVT ("Repeal ObamaCare")
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To: markomalley

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.


6 posted on 09/17/2010 8:36:16 AM PDT by Lazlo in PA
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To: markomalley

Wiener and Waxman are only doing this to intimidate Beck’s sponsor. What jerks.


7 posted on 09/17/2010 8:37:47 AM PDT by freedom1st
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To: markomalley

ping for later


8 posted on 09/17/2010 8:38:09 AM PDT by perchprism (To those about to revolt, we salute you.)
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To: circlecity
How much of a markup do companies like Goldline take? Are they selling gold (currently at $1276/ounce) for $1280, $1350 or $1800 per ounce.
9 posted on 09/17/2010 9:01:46 AM PDT by KarlInOhio (Gun control was originally to protect Klansmen from their victims. The basic reason hasn't changed.)
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To: markomalley
The media has been slamming Hannity and Beck's "gold" sponsors for months now, and here comes Wax-his-Weiner-man with their verson?

Do all these democrats all have diplomas from the "Rainman School Of Reality Thinking"?

10 posted on 09/17/2010 9:20:22 AM PDT by FrankR (Standing up to TYRANTS is the only thing that will stop the onslaught of TYRANNY.)
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Previous posts

http://www.freerepublic.com/focus/f-news/2590573/posts
http://www.freerepublic.com/focus/f-news/2590472/posts


11 posted on 09/17/2010 9:30:31 AM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: KarlInOhio
"How much of a markup do companies like Goldline take? Are they selling gold (currently at $1276/ounce) for $1280, $1350 or $1800 per ounce."

A simple glance at the financial section of any newspaper would answer that question easy enough.

12 posted on 09/17/2010 9:40:23 AM PDT by circlecity
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To: circlecity

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.


13 posted on 09/17/2010 9:41:13 AM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: agere_contra

OUTRAGEOUS!

What gives them the right?

Which enumerated power?


14 posted on 09/17/2010 9:45:11 AM PDT by WAW (Which enumerated power?)
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To: wiggen

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.


15 posted on 09/17/2010 9:47:18 AM PDT by circlecity
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To: KarlInOhio
Local prices as of 10 minutes ago. Check the newspaper and the WEB Sites of your local coin dealers to find out what is happening in your neighborhood.

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

16 posted on 09/17/2010 9:49:46 AM PDT by An Old Man
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Comment #17 Removed by Moderator

To: JerseyHighlander

Please refrain from profanity.


18 posted on 09/17/2010 10:09:13 AM PDT by Admin Moderator
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To: 2001convSVT

Any regulation for gold can be applied to silver.


19 posted on 09/17/2010 10:12:45 AM PDT by Anti-Bubba182
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To: An Old Man
Way, way, way too high of markup for a reasonable investment. I would only buy gold coins for either 1. insurance against the end of the financial world where you head for the hills with your guns, gold and groceries; or 2. a way to hide the gold from a 1933 style government theft. If you are just playing the market to get the gain from gold prices then calling you broker and buying a gold ETF is far better. You don't lose 6% right off the top in the buy/sell price difference. (But then a gold ETF won't help you buy a cow or bribe a border guard).
20 posted on 09/17/2010 10:24:56 AM PDT by KarlInOhio (Gun control was originally to protect Klansmen from their victims. The basic reason hasn't changed.)
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To: KarlInOhio

Well, unless like say you bought it at $237 - $260 an OZ before Y2k like I did, then, well, heck ya, it’s been a good investment ...


21 posted on 09/17/2010 10:27:41 AM PDT by Scythian
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To: KarlInOhio
You seem to asume that all others think in the same way you do. They don't! Since mid 2001, gold has risen from about $300 to almost $1,300. That is not due to the value of the US dollar incerasing.
22 posted on 09/17/2010 10:54:36 AM PDT by An Old Man
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To: Anti-Bubba182

Yes it can, but that would be a lot of pre-1965 coins the Feds would have to round up. I think that rounding up gold would be unlikely and rounding up silver even more unlikely, especially since it has a large industrial usage.


23 posted on 09/18/2010 6:50:33 AM PDT by 2001convSVT ("Repeal ObamaCare")
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To: FrankR

Congressmen Weiner/Whacker Set Gold Hearing

Should be fun to watch!


24 posted on 09/19/2010 9:35:22 AM PDT by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
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