Monday, May 23, 2016

The Government Seizes Gold Mines!

Or so says one Youtube channel.

This channel is claiming that the US Government is seizing silver and gold mines and that we are going back to a gold backed currency.....drum roll......, by the first. Of June. I only typed as much to spare you from watching the video. I will post the video below for posterity's sake and you may watch it as you wish but I stopped nearly immediately. My call sign is TheFinnmacool.

Anyway I saw a post on the board and felt compelled, nay, obligated to write the following message back. She posted something to the affect of, "If video is true" and, "knew it was coming", and "that's why I don't own any shares".

Here's my response:

This most certainly is not true because shareholders would raise holy hell and you can be assured that the United States would not seize mines and they certainly would not close them if they were going to back the currency with silver and gold.

If the currency is backed by silver and gold they would need more of it to expand the money supply, not less. They would need more to accommodate an expanding economy. They would do what they needed to, to get it.

This is from a report by Casey Research about Uranium. The US did this to acquire uranium for the arms race against Russia and the desire to build nuclear weapons: "The first uranium bull market was fueled by the incentive program the US government implemented through the Atomic Energy Commission (AEC) in 1946. The AEC guaranteed a minimum price for uranium to increase the domestic uranium supply available. It raised the price of uranium to reflect its current need, which sent explorers and prospectors into a uranium frenzy."

So to wrap it up, if we go back to a gold standard a few things would happen:

1) The Treasury or Federal Reserve would raise the price of gold or at least guarantee the price of it. Then they would buy it.
2) The Gov would relax the regulations on mines and increase the speed of issuance of permits.
3) Gold mines would start producing gold faster.
4) People who own mining shares would become rich.
5) The government would likely apply a windfall tax to those newly rich but the newly rich won't mind too much cuz their rich.
6) People who don't own mining shares because they were too afraid to buy them because they listened to hucksters who have to deliver "something" to his large # of subscribers will lament their never ending poverty because they don't make their own decisions and verify claims such as these.

I also reject the claims of anyone saying the government will confiscate the mines and people's holdings of silver and gold for a host of reasons. If you must know message me and I'll whip something up.

The end.

"THE" video:

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