A large number of Americans can’t understand why, for example, the impeachment inquiry isn’t simply a cut and dried decision. But the reality is that laws have always been matters of interpretation. I’m sure it could be traced back to the very inception of laws, if you cared to search back throughout history, but what I want to focus on today is Franklin Roosevelt’s Executive Order 6102, which made it illegal for citizens to own gold, except in miniscule quantities. At that time, many asked where in the Constitution such power was granted to our President. The matter came to the Supreme Court in 1933, in the form of disputes called the Gold Clause Cases. Gold clauses in contracts protected investors by mandating that gold be utilized as a means of “settling up.” Eliminating gold clauses meant taking away the ability to protect against inflation, essentially altering the terms of the agreement, but ultimately the Supreme Court followed suit.
Justice James McReynolds was a dissenter to the decision, because he recognized that 6102 represented a de facto default. Roosevelt’s executive order meant companies could be paid back in depreciated dollars instead of gold coins or an amount of gold equal to the value of the original loan. McReynolds wrote that guaranteeing creditors be paid back in gold or something of equal value, “prevents the borrower from availing itself of a possibility of discharge of the debt in depreciated currency.” Congress happily went along with the decision, because they became the main beneficiary, but it became the first economic artery slash for the average American. It was now possible for Congress to borrow and then effectively wipe out its own debt by inflation.
Nixon’s abandonment of the gold standard and the Fed’s out-of-control printing press combined to give us the dangerous fiat currency and national debt that we must now try to come to grips with. So, we are now dealing with a debased standard, which was adopted for the express purpose of destroying obligations (which is forbidden by the Constitution). Essentially, Congress has violated the Constitutional contract, but escaped consequences through legislative statute (also illegal). It’s certainly a matter the Supreme Court should reconsider, but instead the country’s focus is on candidates who are suggesting free education and Medicare for all. Oh, what a world! The Founding Fathers have to be turning in their graves.
Executive Order 6102 was ultimately revoked and superseded by Executive Orders 6260 and 6261 which permitted Americans to once again own gold and other precious metals. Considering all of the tumultuous, global and domestic, economic ingredients present in today’s world, there is no shortage of reasons to have more precious metals on hand than ever before. American Bullion has the availability, knowledge, and skill to help Americans protect their hard-earned assets from the coming economic storm. In addition, they were pioneers in the Gold IRA, so call them today for professional assistance at (800) 653-GOLD (4653). Plan now, but no matter what, don’t be caught without a chair when the music stops.