Gold Confiscation in Tough Times

Gold Confiscation in Tough Times
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In the land of central banking where large financial institutions buddy up with government bureaucrats for their fill of private profits and socialized losses, here is just another outcome of an unsustainable fractional reserve banking system:

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Since Gerald Celente’s commodity broker, Lind-Walldock, was owned by MF Global which recently went bankrupt under the inept leadership of former New Jersey Governor, U.S. Sentaor, and CEO of Goldman Sachs Jon Corzine, Celente lost his gold account and future contracts to Chapter 11 bankruptcy proceedings. Financial catastrophes often provide political cover for government wealth confiscation; Celente’s predicament isn’t unexpected despite MF Global being a “private” firm.  As former Kansas City Federal Reserve President Thomas Hoenig candidly admitted, the largest banks (in the U.S., but the concept applies globally) have essentially become “public entities.”  Like gold confiscation during the Great Depression or the myriad of government imposed “bank holidays” in response to bank runs, the financial system which serves as a catalyst for an ever growing state always takes paramount consideration over the enforcement of basic property rights of the citizenry.  Such is the nature of fiat currency systems and the governments they finance.  In light of Celente’s bad luck, there is an important lesson to learn about where one should place their trust and wealth.

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James E. Miller is editor-in-chief of Mises Canada and a regular contributor to the Mitrailleuse . Send him mail

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