Tuesday, April 9, 2013

Laser Guided Policy and the 80th Anniversary of EO 6102

To gold bugs, and more recently, American libertarians U.S. President FDR's executive order 6102 looms in their imaginations as one of the key examples of their government turning on the citizenry and illegally seizing their property.

Back in 1933, citizens were compensated for their forfeited gold at a fixed price of about $20/oz. The fine for  not turning it over to the state was the equivalent to about $175,000 today, in addition to the threat of 10 years imprisonment. Of course many Americans did not turn over their gold, and there are few if any reported cases of anyone actually going to prison over it.

Anonymous comment contributors to skeptic financial blogs (or fringe blogs, depending on your view) seem to think that the U.S. and certain European countries are preparing for a similar move. It's not unreasonable to hypothesize that personal gold confiscation could happen again. While it is unlikely that we will return to a gold backed currency in the west anytime soon, if ever. But if the Euro, the GBP, CAD or USD were suddenly devalued to pay off liabilities - at face value a scenario of gold confiscation through forcible "repurchasing" is not as paranoid as it might seem...

Monday, April 1, 2013

Japanese Dominoes

Given the predictions about imminent Japanese economic collapse, (recent estimates from Kyle Bass including a %60 currency devaluation and %70 stock index devaluation), what countries have exposure to restructurings of Japanese international businesses?

The answer may not be which countries, but rather, which municipalities, states and provinces.