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Subscribe to RSSPublished at 10:40 am ET: House Majority Leader Eric Cantor urged Congress and President Barack Obama to agree on “smarter cuts” instead of the $85 billion in spending reductions that are set to begin March 1.
On NBC’s Meet the Press Sunday, the Virginia Republican said the $85 billion in spending reductions in the current fiscal year, called “the sequester” and mandated by the Budget Control Act which Obama signed into law in 2011, are “not the best way to go about trying to control spending.”
Cantor told NBC’s David Gregory that House Republicans have proposed alternatives – such as reducing the value of federal employee pension benefits – that would help avert the automatic spending cuts.
House Majority Leader Eric Cantor visits Meet the Press to break down the top issues facing Capitol Hill lawmakers.
Cantor pinned the responsibility for suggesting the automatic cuts on Obama: “He’s the one who proposed the sequester in the first place.” Republicans, he said, are “anxiously waiting” for the president to begin discussing alternative cuts with GOP congressional leaders.
But Cantor said, “Every time you turn around,” Obama’s proposal is to raise taxes again. “He just got his tax hike on the wealthy and you can’t in this town every three months raise taxes,” the GOP leader said.
Obama and Democratic congressional leaders are seeking to raise additional tax revenue by eliminating or curbing some tax preferences and deductions. This would mean a new tax hike on top of the $700 billion increase signed by Obama on Jan. 2. That law, the American Taxpayer Relief Act, increased the top income tax rate on single earners with incomes above $400,000 and on married couples filing a joint return with incomes above $450,000.
It also reduced exemptions and deductions for single people who earn more than $250,000 and married couples filing a joint return who make more than $300,000. This effectively increased their tax bill.
Obama and most members of Congress didn’t expect or intend that the automatic spending cuts would go into effect; instead they thought they’d serve as a fail-safe device to spur agreement on a “grand bargain” of entitlement reforms, spending reductions and tax increases. When the “super committee” of 12 members of Congress failed to achieve that bargain, the automatic spending cuts were left as the default policy.
Senate Majority Whip Dick Durbin visits Meet the Press to back the president's proposal for an economic compromise.
Senate Majority Whip Sen. Dick Durbin, D-Ill., said, “Sequestration was designed as a budget threat, not as a budget strategy.” He added, “It was supposed to be so awful that the super-committee would finally reach a bipartisan agreement.” He blamed Republicans on that panel for rejecting tax increases as part of an agreement.
As a way of raising more revenue, Durbin said, Democrats want to eliminate or curb some tax preferences, a strategy which “doesn’t really impose a tax burden on middle-class families.”
In an interview Sunday on Fox News, House Democratic Leader Nancy Pelosi argued that cutting spending on education and scientific research is harmful -- “and they are what are affected by the sequestration. So it is almost a false argument to say we have a spending problem. We have a budget deficit problem that we have to address.”
She said federal spending on education and research will produce more jobs – and that will mean more revenue flowing into the Treasury. “Nothing brings more money to the Treasury of the United States than investment in education of the American people,” the California Democrat said, arguing that Congress must choose “(spending) cuts that help us” and not allow “cuts that hurt our future.”
On immigration policy, Durbin hailed Cantor for changing his mind on allowing younger illegal immigrants or people brought into the United States by their parents when they were very young to become legal permanent residents and ultimately U.S. citizens.
Cantor said, “I thought the best place to start was with children. These are children who due to no fault of their own were brought here.” He mentioned his own immigrant grandparents who emigrated to flee the anti-Semitic pogroms in Russia.
When Gregory asked Cantor whether he could bring with him a lot of conservative Republicans in the House to support an overhaul of immigration laws, Cantor said, “There’s a lot of movement right now in the House and the Senate, both sides of the aisle, with folks having a lot of different ideas.”
But Cantor clearly indicated that he would like Congress to pass a bill focused only on illegal immigrant children and “put a win on the board,” before addressing other, more complex aspects of immigration policy.
Yet Durbin said a legalization program for children or for people under age 21 would be only part of a larger immigration bill, and that a group of Democratic and Republican senators including Sen. Marco Rubio, R- Fla., is crafting that larger measure. “But it won’t just apply to children,” Durbin said.
On another contentious policy dispute – Obama’s targeted killing policy for terrorists, even if they happen to be U.S. citizens – Durbin said Obama is working toward “a legal architecture to deal with this new war on terrorism” and “the new mode of war,” which includes not only drones as weapons, but computer-based or cyber warfare. “The policy is unfolding,” Durbin said, he did not say whether he thought a revised or new congressional authorization to use force was necessary.
Obama and the Justice Department have argued that the targeted killings of suspected terrorists in Yemen and elsewhere are fully authorization by the resolution Congress passed a few days after the attacks of Sept. 11, 2001. That congressional resolution, plus the president’s inherent authority as commander-in-chief to defend the nation from imminent attack, supply his constitutional basis for action, the Justice Department argued in a white paper reported Monday by NBC News.
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What this translates to for the Republicians is that "We have a weak leadership, and no idea of what to do, because we have only learned to vote against everything."
How can you help a party that can't agree among themselves as to what they want. We have to blame ourselves (The Voters) for voting these guys into office and believing their lies.
Maybe its time to abolish political parties and do it like tyhe Jury System, select Legislators by lot, and get a new group in there every year.
Oh No, cry the special interests, these guys might just abolish all the goodies we have used their bribe money for over the years. Of course, that would cut out 1/3 of the budget immediately, and a lot more in a couple of years. People do not realize just how much of their money goes into special interest earmarks and tax breaks for the wealthy.
Austerity doesn't work. The country needs to generate revenue. Investment in people and products is what is necessary. The Republicans will never get this because their cuts are all social cuts, not having anything to do with business, jobs or revenue. What the hell happened to that party?!? They are beyond clueless.
@ktrav...I'm a business owner and I'm constantly adjusting for being taxed more, with cutbacks coming at each new "tax". Obamacare enactments of 2014 should be a doozy with cutbacks.......forcing companies to shrink and lay-off people as never before.....this is your idea of the Democrats "getting it"??? .....odd
Ktrav, Obama is investing in people? Well Obama and this Administration is certainly not investing in the things that are important to get the people JOBS! How are you investing in people when these people aren't working?? Are you trying to argue that Republicans are not for Business and jobs?? I think you have it backwards.
Dee, where are the Jobs, Jobs, Jobs that the Republicans ran on in 2010? The house voted down all of the Presidents proposals for job creation! Why? they want the president to look bad. They voted down the jobs bill for American veterans returning from Iraq and Afghanistan, their policies of cutting teachers in states governed by Republicans have decimated our schools, they support corporations who export jobs out of the country, they support the big banks and energy companies with corporate welfare!
Maybe you should OPEN your eyes and see the Republican party for what it is!
Dee Patriot: hahahhhhhhhahhahhahahaha Where have you been, Rip Van Winkle???!!?? The DOW is near record highs; the unemployment rate is below 7%; and the housing market has stabilized! Whoa!!!!! hahahahahaahahahaha What a maroon!!!!!
@Minnesotan....please list all of "President Obama's proposals for job creation" that were voted down by the Republicans below:
1. .....er
2. ????
3. THERE ARE NONE!!! Stop listening to the brainwashing being given to you by your liberal masters!!
TJefferson, It is hard to argue with someone who is clueless or in denial of the state of our economy and what our unemployment rate it. We are well above 7% now and CBO predictions are that we will remain in a state of unemployment of 8% and higher for many more years to come! So continue in your state of denial and believe that everything is going to be fine if it suits you.
get serious.....Obama doesn't want any spending cuts!!
as the fools keep blaming the other parties...
YOUR debt is climbing sky high and you're the only one's who are gonna get screwed...
maybe everyone will wake up when the reality of that debt comes slapping them in the face, when you have to pay your FAIR SHARE...
"FAIR SHARE"?
There is no such thing, never has and never will unless you live in a Disney fantasy.
You know, like the American Dream .........."you have to be asleep to believe it" G.C.
"Smarter cuts"?
Because if anyone knows about "smarter" it's Cantor and the GOP?
Who is dumb enough to give a politician money.
Obama...gold is your way out of the SOB ..greddy bastards..hoarding gold is bad for the world...look at the world now...gold hoarding
You are free to invest your own money as you wish.
this will work and you know it..if obama did an executive order on Gold..you sorry rich bastards..would not know what to do..you can hide money in the caymans..but gold..you cant
As Governor Bobby Jindal recently pointed out to his Republican colleagues, the Republican Party is “the party of stupid.” I’m sure that most reasonable people would agree with Governor Jindal. So then how in the heck can anyone get “smarter cuts” by working with them – and especially with Eric Cantor, who is one of the most extreme ideologues in the Republican Party. Talk about stupid!
now, where was i...????????
let us now focus on gun control of the law-abiding citizens, immigration, and global warming...
roflmaooooooooooooooooooooooooooo
GET REAL...
Eric Cantor! A wolf trying to be in sheep's clothing! That silly dastardly smile will give him away at every turn! All he is doing is trying to give the Republican Party a kinder, gentler image! But down deep inside he's still for vaginal probes! Oh well Eric, more Americans now really do see you for what you are.
Good luck with the attempted new image!
Let the loser in chief come up with the plan. His only goal is to BADMOUTH everyone else along with the so called dems on this site.... so don't say a word republicans. Let this politics at all cost guy who cares nothing about america put his foot in own mouth. As soon as he comes up with anything other than tax increasese- just nail his sorry a ss in the press. Hater, throw grandma out of the nursing home, kids starving, wife beater, .....whatever it takes. Let em burn.
Obama doesn't put a plan on the table because he cannot make his numbers work. As the CBO said a while back about Obama, "you can't score a speech".
The GOP lost. Get over it. America doesn't want their plutocracy and reverse Robinhood tactics
OBama has been badmouthing for years, he hasn't put a budget forward nor has the senate. Its easy if your only goal is to call someone elses cra p. stupid dems like that . So, don't play the game. Just quit and make them work or go over the cliff. Taxes are done. Nothing else needs to be worked on.
Republicans are hoarding there wealth in gold..for a slow recover in America...Obama do an executive order on gold...to jump start America again
You are free to invest your own money as you wish.
this will work and you know it..if obama did an executive order on Gold..you sorry rich bastards..would not know what to do..you can hide money in the caymans..but gold..you cant
@elvis...should everyone bet against the US dollar, instead?? ...you know, like George Soros?
sorry fella...i got you scared...i hope someone is listing to me
If Cantor is involved, there won't be anything smart about it.
It's even worse than you think as Obama and Reid are involved...
A sixteen-year-old boy, an American citizen born in Denver, Colorado, was vaporized by an Obama drone in September without any proof that he had any connection to al-Qaeda...........please tell me how you libs see this as OK??????????????
.
Someone should be charged with murder!!!!
.
Obama can trample the constitution, murder our teenagers, steal our guns, and bankrupt our country......as long as he doesn't infringe upon our right to kill our own babies, liberals will always vote for him!! ....liberalism is a mental disorder!!
HopeisGone: Tell us about that 16 year old, innocent, boy!
4 more years.....4 more years........ha ha ha
@TJefferson.....he was hit by a drone's missle while attending a barbeque, 2 weeks after his father was murdered by drone!! A US citizen has the constitutional right of due process.....if a jury of this boy's peers ordered him killed as a traitor, that is one thing......just one man, who thinks he is Jesus of the White House, doing it is nothing greater than murder....
......There is a good video Anonymous posted (originally on Dept. of Justice sites), if you can find it......the White House is removing the links as quickly as they can find them!
HopeisGone: And where did this take place??!!??
TJefferson- does that matter? Do our rights of being a citizen end at the borders? ...if that's the case, don't ever go on vacation abroad....
only a fool would believe obama had a plan...
4 years later, he's still blaming others...
that should of been your first clue, he's an idiot without a clue...
he has no plan to help america...all he knows how to do is spend and waste money like all the broke fools in america do... any moron can do that...roflmaooooooooooooooooooooooo
Blaming others! That is is plan. He will try to ride out his second term relieving himself of all responsibility by blaming others as we see our employment rate rising to a steady 8% or more. This is how he thinks he will protect his legacy and reputation and be perceived as one of the Great Presidents!!
Badmouther in chief is all he is capable of. So, don't do anything. Just let it sit. The house should not pass 1 bill for the next 4 years. Just shut er down until this guy can act in a normal manner...which hasnt' happened yet.
This will get America going again people
if Obama did it
Republicans are hoarding there wealth in gold..for a slow recover in America...Obama do an executive order on gold...to jump start America again
@elvis...WTF are you blabbering about?
oh thats right you dont know now..
Republicans are hoarding there wealth in gold..for a slow recover in America...Obama do an executive order on gold...to jump start America again
What exactly is an "executive order on gold"???? ...maybe Obama should do an executive order on cutting spending!!
He problably would give himself Executive Privilege to do it if he wanted but won't do it, not part of his agenda!
Executive Order 6102
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Executive Order 6102 is an Executive Order signed on April 5, 1933, by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation.
Contents
[hide]
[edit] Rationalization
The order was rationalized on the grounds that hard times had caused "hoarding" of gold, stalling economic growth and making the depression worse.[1] The New York Times, on April 6, 1933 p. 16, wrote under the headline "Hoarding of Gold", "The Executive Order issued by the President yesterday amplifies and particularizes his earlier warnings against hoarding. On March 6, taking advantage of a wartime statute that had not been repealed, he issued Presidential Proclamation 2039 that forbade the hoarding 'of gold or silver coin or bullion or currency,' under penalty of $10,000 and/or up to five to ten years imprisonment."[2]
[edit] Effect of the order
Executive Order 6102
Executive Order 6102 required all persons to deliver on or before May 1, 1933, all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 (equivalent to $371.10 today[3]) per troy ounce. Under the Trading With the Enemy Act of 1917, as amended by the recently passed Emergency Banking Act of March 9, 1933, violation of the order was punishable by fine up to $10,000 (equivalent to $180 thousand today[3]) or up to ten years in prison, or both. Most citizens who owned large amounts of gold had it transferred to countries such as Switzerland.[citation needed]
Order 6102 specifically exempted "customary use in industry, profession or art"—a provision that covered artists, jewellers, dentists, and sign makers among others. The order further permitted any person to own up to $100 in gold coins (a face value equivalent to 5 troy ounces (160 g) of Gold valued at about $7800 as of 2011). The same paragraph also exempted "gold coins having recognized special value to collectors of rare and unusual coins." This protected recognized gold coin collections from legal seizure and likely melting.
The price of gold from the Treasury for international transactions was thereafter raised to $35 an ounce ($587 in 2010 dollars) resulting in an immediate loss for everyone who had been forced to surrender their gold. The resulting profit that the government realized funded the Exchange Stabilization Fund established by the Gold Reserve Act in 1934.
The regulations prescribed within Executive Order 6102 were modified by Executive Order 6111 of April 20, 1933, both of which were ultimately revoked and superseded by Executive Orders 6260 and 6261 of August 28 and 29, 1933, respectively.[4]
Executive 6102 also led to the ultra-rarity of the 1933 Double Eagle gold coin. The order caused all gold coin production to cease and all 1933 minted coins to be destroyed. About 20 illegal coins were stolen, leading to a standing United States Secret Service warrant for arrest and confiscation of the coin. A legalized coin sold for over 7.5 million dollars, making it the most valuable coin in the world, almost double its nearest competition.
[edit] Invalidation and reissue
There was only one prosecution under the order, and in that case the order was ruled invalid by federal judge John M. Woolsey, on the grounds that the order was signed by the President, not the Secretary of the Treasury as required.[5]
The circumstances of the case were that a New York attorney, Frederick Barber Campbell, had on deposit at Chase National over 5,000 troy ounces (160 kg) of gold. When Campbell attempted to withdraw the gold Chase refused and Campbell sued Chase. A federal prosecutor then indicted Campbell on the following day (September 27, 1933) for failing to surrender his gold.[6] Ultimately, the prosecution of Campbell failed, but the authority of the federal government to seize gold was upheld, and Campbell's gold was confiscated.
The case forced the Roosevelt administration to issue a new order under the signature of the Secretary of the Treasury, Henry Morgenthau, Jr., which was in force for a few months until the passage of the Gold Reserve Act on January 30, 1934.
[edit] Abrogation and subsequent events
The Gold Reserve Act of 1934 made gold clauses unenforceable, and changed the value of the dollar in gold from $20.67 to $35 per ounce. This price remained in effect until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard for foreign exchange (see Nixon Shock).
The private ownership of gold certificates was legalized in 1964. They can be openly owned by collectors but are not redeemable in gold. The limitation on gold ownership in the U.S. was repealed after President Gerald Ford signed a bill to "permit United States citizens to purchase, hold, sell, or otherwise deal with gold in the United States or abroad" with an act of Congress codified in Pub.L. 93–373,[7][8][9] which went into effect December 31, 1974. P.L. 93-373 did not repeal the Gold Repeal Joint Resolution,[10][11] which made unlawful any contracts that specified payment in a fixed amount of money as gold or a fixed amount of gold. That is, contracts remained unenforceable if they used gold monetarily rather than as a commodity of trade. However, Act of Oct. 28, 1977, Pub. L. No. 95-147, § 4(c), 91 Stat. 1227, 1229 (originally codified at 31 U.S.C. § 463 note, recodified as amended at 31 U.S.C. § 5118(d)(2)) amended the 1933 Joint Resolution and made it clear that parties could again include so-called gold clauses in contracts formed after 1977.[12]
[edit] The myth of a safe deposit box seizures order
According to a folk rumor on the internet, President Roosevelt ordered all the safe deposit boxes in the country seized and searched for gold by an I.R.S. official. A typical example reads:
Most of this text does not appear in the actual Executive Order.[13] In fact, safe deposit boxes held by individuals were not forcibly searched or seized under the order and the few prosecutions that occurred in the 1930s for gold hoarding were executed under different statutes. One of the few such cases occurred in 1936, when a safe deposit box containing over 10,000 troy ounces (310 kg) of gold belonging to Zelik Josefowitz, who was not a U.S. citizen, was seized with a search warrant as part of a tax evasion prosecution.[14] Approximately 500 tonnes of gold were sold to the U.S. Treasury in 1933 at the rate of $20.67 per troy ounce.[15] although other sources refute this amount stating that 56 tonnes (1.8 million ounces) as a more accurate amount,[16] based on calculations using US Treasury data as well as from Milton Friedman’s book, "The Monetary History of the United States".
The U.S. Treasury came into possession of a large number of safe deposit boxes due to bank failures. During the 1930s, over 3,000 banks failed and the contents of their safe deposit boxes were remanded to the custody of the Treasury. If no one claimed the box, it remained in the possession of the Treasury. As of October 1981, there were 1,605 cardboard cartons in the basement of the Treasury, each carton containing the contents of one unclaimed safe deposit box.[17]
[edit] Similar laws in other countries
In Australia part IV of the Banking Act 1959 allowed the Commonwealth government to seize private citizens' gold in return for paper money where the Governor-General "is satisfied that it is expedient so to do, for the protection of the currency or of the public credit of the Commonwealth.[18]" As of January 30, 1976, this part's operation is "suspended".[19]
[edit] See also
[edit] References
[edit] External links
Bobby Jindal, the Republican Governor of Louisiana, called it correctly when he said his Republican Party is the Party of Stupid! Right on the button, Bobby!
he is stupid also..he just shut up that's all
Stupid in the sense of opening their mouths trying to talk some sense into stupid dems. The house just needs to shut down and fight obama the rest of the way. Obama's just wants to bad mouth in the press, no reason to even give this guy the time of day cause he would just call you stupid for looking at your watch. He hasnt put a budget forward in the last 4 years and wont' the next four. He does not govern. He is a divider.
Nixon stop it in the 1970
Executive Order 6102
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Executive Order 6102 is an Executive Order signed on April 5, 1933, by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation.
Contents
[hide]
[edit] Rationalization
The order was rationalized on the grounds that hard times had caused "hoarding" of gold, stalling economic growth and making the depression worse.[1] The New York Times, on April 6, 1933 p. 16, wrote under the headline "Hoarding of Gold", "The Executive Order issued by the President yesterday amplifies and particularizes his earlier warnings against hoarding. On March 6, taking advantage of a wartime statute that had not been repealed, he issued Presidential Proclamation 2039 that forbade the hoarding 'of gold or silver coin or bullion or currency,' under penalty of $10,000 and/or up to five to ten years imprisonment."[2]
[edit] Effect of the order
Executive Order 6102
Executive Order 6102 required all persons to deliver on or before May 1, 1933, all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 (equivalent to $371.10 today[3]) per troy ounce. Under the Trading With the Enemy Act of 1917, as amended by the recently passed Emergency Banking Act of March 9, 1933, violation of the order was punishable by fine up to $10,000 (equivalent to $180 thousand today[3]) or up to ten years in prison, or both. Most citizens who owned large amounts of gold had it transferred to countries such as Switzerland.[citation needed]
Order 6102 specifically exempted "customary use in industry, profession or art"—a provision that covered artists, jewellers, dentists, and sign makers among others. The order further permitted any person to own up to $100 in gold coins (a face value equivalent to 5 troy ounces (160 g) of Gold valued at about $7800 as of 2011). The same paragraph also exempted "gold coins having recognized special value to collectors of rare and unusual coins." This protected recognized gold coin collections from legal seizure and likely melting.
The price of gold from the Treasury for international transactions was thereafter raised to $35 an ounce ($587 in 2010 dollars) resulting in an immediate loss for everyone who had been forced to surrender their gold. The resulting profit that the government realized funded the Exchange Stabilization Fund established by the Gold Reserve Act in 1934.
The regulations prescribed within Executive Order 6102 were modified by Executive Order 6111 of April 20, 1933, both of which were ultimately revoked and superseded by Executive Orders 6260 and 6261 of August 28 and 29, 1933, respectively.[4]
Executive 6102 also led to the ultra-rarity of the 1933 Double Eagle gold coin. The order caused all gold coin production to cease and all 1933 minted coins to be destroyed. About 20 illegal coins were stolen, leading to a standing United States Secret Service warrant for arrest and confiscation of the coin. A legalized coin sold for over 7.5 million dollars, making it the most valuable coin in the world, almost double its nearest competition.
[edit] Invalidation and reissue
There was only one prosecution under the order, and in that case the order was ruled invalid by federal judge John M. Woolsey, on the grounds that the order was signed by the President, not the Secretary of the Treasury as required.[5]
The circumstances of the case were that a New York attorney, Frederick Barber Campbell, had on deposit at Chase National over 5,000 troy ounces (160 kg) of gold. When Campbell attempted to withdraw the gold Chase refused and Campbell sued Chase. A federal prosecutor then indicted Campbell on the following day (September 27, 1933) for failing to surrender his gold.[6] Ultimately, the prosecution of Campbell failed, but the authority of the federal government to seize gold was upheld, and Campbell's gold was confiscated.
The case forced the Roosevelt administration to issue a new order under the signature of the Secretary of the Treasury, Henry Morgenthau, Jr., which was in force for a few months until the passage of the Gold Reserve Act on January 30, 1934.
[edit] Abrogation and subsequent events
The Gold Reserve Act of 1934 made gold clauses unenforceable, and changed the value of the dollar in gold from $20.67 to $35 per ounce. This price remained in effect until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard for foreign exchange (see Nixon Shock).
The private ownership of gold certificates was legalized in 1964. They can be openly owned by collectors but are not redeemable in gold. The limitation on gold ownership in the U.S. was repealed after President Gerald Ford signed a bill to "permit United States citizens to purchase, hold, sell, or otherwise deal with gold in the United States or abroad" with an act of Congress codified in Pub.L. 93–373,[7][8][9] which went into effect December 31, 1974. P.L. 93-373 did not repeal the Gold Repeal Joint Resolution,[10][11] which made unlawful any contracts that specified payment in a fixed amount of money as gold or a fixed amount of gold. That is, contracts remained unenforceable if they used gold monetarily rather than as a commodity of trade. However, Act of Oct. 28, 1977, Pub. L. No. 95-147, § 4(c), 91 Stat. 1227, 1229 (originally codified at 31 U.S.C. § 463 note, recodified as amended at 31 U.S.C. § 5118(d)(2)) amended the 1933 Joint Resolution and made it clear that parties could again include so-called gold clauses in contracts formed after 1977.[12]
[edit] The myth of a safe deposit box seizures order
According to a folk rumor on the internet, President Roosevelt ordered all the safe deposit boxes in the country seized and searched for gold by an I.R.S. official. A typical example reads:
Most of this text does not appear in the actual Executive Order.[13] In fact, safe deposit boxes held by individuals were not forcibly searched or seized under the order and the few prosecutions that occurred in the 1930s for gold hoarding were executed under different statutes. One of the few such cases occurred in 1936, when a safe deposit box containing over 10,000 troy ounces (310 kg) of gold belonging to Zelik Josefowitz, who was not a U.S. citizen, was seized with a search warrant as part of a tax evasion prosecution.[14] Approximately 500 tonnes of gold were sold to the U.S. Treasury in 1933 at the rate of $20.67 per troy ounce.[15] although other sources refute this amount stating that 56 tonnes (1.8 million ounces) as a more accurate amount,[16] based on calculations using US Treasury data as well as from Milton Friedman’s book, "The Monetary History of the United States".
The U.S. Treasury came into possession of a large number of safe deposit boxes due to bank failures. During the 1930s, over 3,000 banks failed and the contents of their safe deposit boxes were remanded to the custody of the Treasury. If no one claimed the box, it remained in the possession of the Treasury. As of October 1981, there were 1,605 cardboard cartons in the basement of the Treasury, each carton containing the contents of one unclaimed safe deposit box.[17]
[edit] Similar laws in other countries
In Australia part IV of the Banking Act 1959 allowed the Commonwealth government to seize private citizens' gold in return for paper money where the Governor-General "is satisfied that it is expedient so to do, for the protection of the currency or of the public credit of the Commonwealth.[18]" As of January 30, 1976, this part's operation is "suspended".[19]
[edit] See also
[edit] References
[edit] External links
The only one that want to see this country fall is Obama and his cronies, not the GOP or anyone else. When are the liberals going to wake up. They are all zombies, dead from the neck up. The democrats have not passed a budget since Obama has been office and most likely never will. If they have to go by a budget then that would mean less money in their pockets. That money is tax payers money, not theirs. This President stole from medicare over 700 billion to fund his Health Care Plan. So now who wants to control you and tell you what health issues that you have will be treated? Obomer!!! I have never seen so much incompetence in a President and his so called advisers and the mainstream media. It would be nice if these politicians would take responsibility for their actions, but that won't happen. To help this country out of it's problems, cut all their pay and not allow any one of them a pay raise. That would save billions over 10 years. And also cut their term limits to 2, just like the President. Two terms only, then you are out and can not re-enter the federal government ever again. You think the liberals will ever get it that the federal government is the main problem. That they have caused all the problems that has spread through out this country? Government is the problem and so are the ones that elect to have big government, you know the ones, lazy, incompetent, always wanting something for nothing. How about the voter that was on the news a few days ago that said she voted 2 times for Obama. She didn't see anything wrong. She's been a poll worker since 1988. What she did was criminal and she is totally clueless. Now if this was a republican she would have been arrested and thrown in jail for voter fraud, but when it comes to democrats, it's okay, because that's what they are use to. How many voters out there were bullied into voting for Obama. This is a normal thing for liberals to do. They threaten the people and they will do what they want you to do. So many brainless wonders out there, no backbone, incapable of standing up for themselves. How's it feel to be wrapped around someone's little pinky and always begging, give me, give me. Talk about worthless.
Obama signed an executive order giving them a raise just before they kicked the can on the sequester the last time.
hate to tell you...
the only stupid fools are the one's who would be backing up any of their politicans after the way they have destroyed your country...!!!!!!!!!!!!!!!
the american people should be OUTRAGED at the destruction of their country and how deep in debt they got you all...
instead, they keep blaming the other guy just like they were taught...!!!!!!!!!!!!!!!!
Doug: hahahhahahahahahaahahahahahahahahahaha And, you can't understand why the GOP hasn't won the popular vote in a presidential election but once since 1988??!!?? SINCE 1988??!!?? hahaahahahahahahahhahaha What a bunch of BS! When are you idiots going to realize that twisted BS isn't going to sell??!!?? hahahahhahahahaha
30 state governors that were up all went to the Republicans last election.......do you have an analysis as to why everyone stopped voting Democrat at the state level???
money
HopeisGone: Only in the south!
hahahaha..I bet he is pulling his money out of gold right now
Nancy Pelosi says we don't have a spending problem yet 83% of a recent poll of the American people say we do have a spending problem. A little out of touch?
What they need to do is cut out completely the crazy programs we pay for. Everyone - conservatives, liberals, Democrats and Republicans -- would agree to this. Wouldn't it be great to accomplish something everyone would want? See the "Waste Book" for examples. The benefits of starting there are many:
These cuts would garner massive support among everyone - making everyone feel a little win. A focus on the "little stuff" would push focusing on the "big stuff" people care about down the road (Medicare, Social Security, Defense and important programs). If they appear as if they were taking the out of control spending problem seriously and thoughtfully, we'd trust them more with the bigger decisions.
I, for one, will support additional tax increases only after they prove they will spend the additional revenue in prudent, respectful and meaningful ways.
http://www.coburn.senate.gov/public/index.cfm/pressreleases?ContentRecord_id=3b872d11-b6b5-4f72-9a0f-f95c79c99b6f&ContentType_id=d741b7a7-7863-4223-9904-8cb9378aa03a&Group_id=7a55cb96-4639-4dac-8c0c-99a4a227bd3a
Candice: What large spending cuts do you want to see?
TJefferson,
Let's cut the "little" ones first that add up to billions of dollars.
Then, what I'd like to see is a consolidation of some of the redundant or overlapping departments. Every candidate says doing so is a good idea but never seems to do it. I suppose that's because the task would be daunting. I bet there would be savings from consolidation and surely more efficiency. The number of agencies we have is insane.
http://www.usa.gov/directory/federal/index.shtml
I'd like to see 2% budget cuts across the board - and not through crazy accounting like slowing the growth of spending by 2%. I think the very capable people running our government agencies can find creative ways to cut back a little.....if they had to.
If greater efficiencies, a moratorium on non-essential programs, across the board cuts were in place, the large spending cuts may not have to be that large.
I like the idea of choice in Social Security plans, as long as there's an annuity type guarantee. I think Long Term Care Insurance premiums should be a part of FICA and OADSI taxes.
I think the best way to reduce the deficit, outside of fiscal discipline, is to get 12 million people working again. That would be the best way to help solve the problem.
What would you cut?
They can't cut $85 Billion out of a $3.5 Trillion dollar budget. What is going to happen whan interest rates rise and they will be going up as we need to borrow mor eand Benanke's credit card is maxed out. We will go from about $200 Billion in interest this year to about $800 BIllion when Barry leaves office (20 Trillion deficit 4% interest). Ouch
a.k.a. Eliminate or deeply cut all social programs, cut education, cut infrastructure spending (maintenance of roads and bridges), and eliminate sustainable energy programs...
...but keep tax breaks for the rich, heavy defense spending, and continued subsidies for the oil and coal industries.
Don't bother with revenue to service the debt.
Yep, that's "working together" for "smarter cuts".
Obama hoarding gold is bad for the world..do as the president did..fight the Republicans for hoarding gold
Executive Order 6102
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Executive Order 6102 is an Executive Order signed on April 5, 1933, by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation.
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[edit] Rationalization
The order was rationalized on the grounds that hard times had caused "hoarding" of gold, stalling economic growth and making the depression worse.[1] The New York Times, on April 6, 1933 p. 16, wrote under the headline "Hoarding of Gold", "The Executive Order issued by the President yesterday amplifies and particularizes his earlier warnings against hoarding. On March 6, taking advantage of a wartime statute that had not been repealed, he issued Presidential Proclamation 2039that forbade the hoarding 'of gold or silver coin or bullion or currency,' under penalty of $10,000 and/or up to five to ten years imprisonment."[2]
[edit] Effect of the order
Executive Order 6102
Executive Order 6102 required all persons to deliver on or before May 1, 1933, all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 (equivalent to $371.10 today[3]) per troy ounce. Under the Trading With the Enemy Act of 1917, as amended by the recently passed Emergency Banking Act of March 9, 1933, violation of the order was punishable by fine up to $10,000 (equivalent to $180 thousand today[3]) or up to ten years in prison, or both. Most citizens who owned large amounts of gold had it transferred to countries such as Switzerland.[citation needed]
Order 6102 specifically exempted "customary use in industry, profession or art"—a provision that covered artists, jewellers, dentists, and sign makers among others. The order further permitted any person to own up to $100 in gold coins (a face value equivalent to 5 troy ounces (160 g) of Gold valued at about $7800 as of 2011). The same paragraph also exempted "gold coins having recognized special value to collectors of rare and unusual coins." This protected recognized gold coin collections from legal seizure and likely melting.
The price of gold from the Treasury for international transactions was thereafter raised to $35 an ounce ($587 in 2010 dollars) resulting in an immediate loss for everyone who had been forced to surrender their gold. The resulting profit that the government realized funded the Exchange Stabilization Fund established by the Gold Reserve Act in 1934.
The regulations prescribed within Executive Order 6102 were modified by Executive Order 6111 of April 20, 1933, both of which were ultimately revoked and superseded by Executive Orders 6260 and 6261 of August 28 and 29, 1933, respectively.[4]
Executive 6102 also led to the ultra-rarity of the 1933 Double Eagle gold coin. The order caused all gold coin production to cease and all 1933 minted coins to be destroyed. About 20 illegal coins were stolen, leading to a standing United States Secret Service warrant for arrest and confiscation of the coin. A legalized coin sold for over 7.5 million dollars, making it the most valuable coin in the world, almost double its nearest competition.
[edit] Invalidation and reissue
There was only one prosecution under the order, and in that case the order was ruled invalid by federal judge John M. Woolsey, on the grounds that the order was signed by the President, not the Secretary of the Treasury as required.[5]
The circumstances of the case were that a New York attorney, Frederick Barber Campbell, had on deposit at Chase National over 5,000 troy ounces (160 kg) of gold. When Campbell attempted to withdraw the gold Chase refused and Campbell sued Chase. A federal prosecutor then indicted Campbell on the following day (September 27, 1933) for failing to surrender his gold.[6] Ultimately, the prosecution of Campbell failed, but the authority of the federal government to seize gold was upheld, and Campbell's gold was confiscated.
The case forced the Roosevelt administration to issue a new order under the signature of the Secretary of the Treasury, Henry Morgenthau, Jr., which was in force for a few months until the passage of the Gold Reserve Act on January 30, 1934.
[edit] Abrogation and subsequent events
The Gold Reserve Act of 1934 made gold clauses unenforceable, and changed the value of the dollar in gold from $20.67 to $35 per ounce. This price remained in effect until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard for foreign exchange (see Nixon Shock).
The private ownership of gold certificates was legalized in 1964. They can be openly owned by collectors but are not redeemable in gold. The limitation on gold ownership in the U.S. was repealed after President Gerald Ford signed a bill to "permit United States citizens to purchase, hold, sell, or otherwise deal with gold in the United States or abroad" with an act of Congress codified in Pub.L. 93–373,[7][8][9] which went into effect December 31, 1974. P.L. 93-373 did not repeal the Gold Repeal Joint Resolution,[10][11] which made unlawful any contracts that specified payment in a fixed amount of money as gold ora fixed amount of gold. That is, contracts remained unenforceable if they used gold monetarily rather than as a commodity of trade. However, Act of Oct. 28, 1977, Pub. L. No. 95-147, § 4(c), 91 Stat. 1227, 1229 (originally codified at 31 U.S.C. § 463 note, recodified as amended at 31 U.S.C. § 5118(d)(2)) amended the 1933 Joint Resolution and made it clear that parties could again include so-called gold clauses in contracts formed after 1977.[12]
[edit] The myth of a safe deposit box seizures order
According to a folk rumor on the internet, President Roosevelt ordered all the safe deposit boxes in the country seized and searched for gold by an I.R.S. official. A typical example reads:
Most of this text does not appear in the actual Executive Order.[13]In fact, safe deposit boxes held by individuals were not forcibly searched or seized under the order and the few prosecutions that occurred in the 1930s for gold hoarding were executed under different statutes. One of the few such cases occurred in 1936, when a safe deposit box containing over 10,000 troy ounces (310 kg) of gold belonging to Zelik Josefowitz, who was not a U.S. citizen, was seized with a search warrant as part of a tax evasion prosecution.[14] Approximately 500 tonnes of gold were sold to the U.S. Treasury in 1933 at the rate of $20.67 per troy ounce.[15] although other sources refute this amount stating that 56 tonnes (1.8 million ounces) as a more accurate amount,[16] based on calculations using US Treasury data as well as from Milton Friedman’s book, "The Monetary History of the United States".
The U.S. Treasury came into possession of a large number of safe deposit boxes due to bank failures. During the 1930s, over 3,000 banks failed and the contents of their safe deposit boxes were remanded to the custody of the Treasury. If no one claimed the box, it remained in the possession of the Treasury. As of October 1981, there were 1,605 cardboard cartons in the basement of the Treasury, each carton containing the contents of one unclaimed safe deposit box.[17]
[edit] Similar laws in other countries
In Australia part IV of the Banking Act 1959allowed the Commonwealth government to seize private citizens' gold in return for paper money where the Governor-General "is satisfied that it is expedient so to do, for the protection of the currency or of the public credit of the Commonwealth.[18]" As of January 30, 1976, this part's operation is "suspended".[19]
[edit] See also
[edit] References
[edit] External links
The obvious answer to Cantor is: "Cantor and the republicans should change their style to honestly and sincerely work with the president, dropping their constant propaganda to disguise their concentration on their political self-interests and on serving only "the money"". It would sure be nice to have both sides honestly and responsibly working together for the good of the country and for the people, the majority. Without any intention to further polarize but rather just to recognize reality, the Republicans, as Cantor has often demonstrated, have really been the stubborn and arrogant stumbling block to getting anything done. It would really now be nice if Cantor was sincere with conscientious resolve, instead of once again performing for show just to gain political advantage. Maybe we can hope.