Why Do Many Governments Hate Gold?
Do all governments have a distinct dislike or hate for Gold?
The answer: yes, absolutely – Governments do not like gold for one simple reason and that is it is difficult to control and they cannot be printed.
In India, as an example, controlling the importance of gold in their country, specifically through increased taxation, has allowed those that are importing to also export the gold in the form of jewelry, making up about 20% of these products.
There are different types of rules that have been concocted to control what can be constituted as smuggling, and this is a problem that is rampant in England. If you do have gold, it’s difficult to tax, especially in the form of jewelry. In the following information, we will look at specific reasons why governments want to disown gold.
Central banks, for example, you have a lot of gold in their possession… It seems to be counterintuitive to what we have been saying, but in actuality, they do on gold for similar reasons to the average person new house gold in their possession – it is because there is no liability associated with gold when looking at other governments.
Although some governments, like the USA let you own gold in certain types of IRA accounts that are tax advantaged. It is hard to believe but it’s true. But there are many companies to choose from and you have to be careful, that’s why you want to read reviews beforehand like this Oxford Gold Group review. Then you will know what to avoid, and how to pick a reputable company.
So Why Do Governments Gold?
A) some things are called legal tender laws which are essentially saying that there are taxes that have to be paid on currency, which would include euros and the US dollar, but this does not apply to silver or gold that is in a physical format. Only fiat currencies can be used to pay taxes or even pay debts.
So what is the purpose of legal tender laws? There were decisions made, starting back in the 1920s, especially with Western governments, that were created because of political individuals that were spending too much money, and countries decided to redistribute and provide interference over this distinct form of capitalism (however, as time has gone by, this has increased significantly, especially when looking over the last several decades at the GDP).
Those that were in charge or not specifically looking at how fast it was growing, but wanted to focus more upon equal slices for everyone.
However, slices of pizza cannot be controlled, especially when the proverbial pizza cutter is not in your possession. If you think of a slice of pizza and associated with wealth, the pizza cutter is representative of taxation, and all governments need to ensure that fiat money is all that is recognized as well because it can be taxed.
B) In industries that have significant government regulations, that cannot be bailed out – if it is not fiat money, and is tied directly to some type of gold standard, this can be a very limiting factor.
When the regulated industries begin to fail, it is the government that will be perceived as being liable for these problems, primarily because of regulations, and their influence on these industries, that we are seeing today.
If you think back to the 1930s, and the banks that had all of the money, around the world governments utilized proper policies to respond to these financial issues. Double counting, as well as speculation, did play a large role in the crisis which engulfed the banking industry at this time.
However, the United States government, along with other governments, were constantly using the gold standard which is why they were not able to create more currency because of the lack of gold. They needed to increase the reserves of gold that they had in their possession, and therefore the US government decided to make it illegal for citizens to have any gold at all.
Looking at the UK, there were also restrictions, limiting individuals to owning a small amount of silver and gold coins if they were simply private citizens. Back in the US, market prices, and below-market prices, were used to obtain as much gold as possible before raising the price to the rate that it is at now.
By doing so, the government was able to bail out the banks by simply printing more money than they were able to do because of the abundance of gold that they had obtained. However, gold soon became banned at an official level regarding individual ownership, which persisted into the 1970s – yet it was during this time that the underground market for gold persevered, and prevented government raids from obtaining what remained.
C) over time, all currencies have led to the increase in value for gold once the gold standard was abandoned.
D) The existence of gold within the economy became a reminder for governments that utilized paper money, posing a threat that will lead to replacing paper money completely.
Legal tender laws, and all of the backing that came from the government, led to the government wanting to control all of the gold that they could obtain so full control over the money, and tax laws, could be controlled with impunity.
E) The Federal Reserve, also called the central banks, are mostly privately held, but the government does control them. Central banks control fiat currency, yet it is only by the permission of the government.
Using money is what will make those that are in control of the central bank very happy. However, there is a problem because there are always alternatives to fiat currency. Gold is one of the top alternatives. It is for this reason that central banks do not like gold at all. If gold becomes a form of currency that people will use instead of fiat money, the central bank is going to lose power and control.
F) The Federal Reserve utilizes and operates under what is referred to as a dual mandate. Maintaining stability of the economy, and promoting maximum employment, are their primary objective.
The Fed does not like the value of gold rising, mostly because the unemployment rate tends to rise at the same time.
G) All of this animosity toward gold is not something brand-new at all. Back when gold was part of the gold standard, the US government also limited any ability to do deficit spending. There was a debt ceiling that needed to be abided by.
Austerity was practiced heavily as a result of the gold standard. However, once the gold standard was officially abandoned, the ability to finance any expenses through the government was possible by simply requesting new debt ceiling limits through the federal government.
Although no gold is required today for the Fed to get treasury bonds, this has not always been the case. They do have the ability to improve or expand their balance sheet, and there are absolutely no limitations for doing so in our modern age.
To conclude, gold is what once limited central bankers from having more power and influence. It is for this reason that many governments hate gold.
Benefits of Working with a Chartered Financial Analyst
Charter fishing boat prices are different with each company. However, there are many companies and transactions are numerous, so be sure to go around on the Internet and with travel agencies. It is a good idea to pick up a few magazines at your local library, bookstore or grocery store to review the wide variety of fishing options from which you can choose.
Plans and preparation for the Chartered fishing trip
It is best to determine how many people will visit your party and exactly how many people intend to go out on the charter fishing boat tour. Once you’ve determined the number of passengers, you just have to determine the number of days for your trip and the number of days you want to be on the tour charter fishing boat. Many of the charter boat’s fishing trip will provide all necessary steps, including tackling high-quality bars and coils. Most will not get discouraged if you choose to bring your own equipment, but keep in mind that their equipment is ready for the types of fish that you’ll be fishing during your excursions. It might be in your interests to leave your equipment at home and use the supplies that are provided.
Be very specific when asking the charter boat fishing companies on the provision of meals, snacks, and drinks. Some of these companies provide these services, while others are waiting for you to make your own lunch along this journey. It is important that you know this information before departure because most fishing trips are between four and eight hours. If you forget to ask or neglect to do all along, you may be surprised when the sun starts to fly, how badly you want to have a drink to chase the heat.
Your search options and your care quotes
The rates for chartering vessels fishing visits vary widely from company to company. Some cite a price which reflects the number of fishermen on board, the type of fish to be caught, the size of boat desired, or time fishing. Some companies are taking a variety of these factors into account and charge accordingly. As with most things, education, preparation and a clear set of goals should ensure a pleasant adventure.
New Investments Coming
Breakfast parties should be fun for everyone, including the host. With some thoughtful planning ahead you can take the stress out of hosting, and make it a culinary event to remember.
Old-fashioned dishes are sure to please. Even if you are tempted to break out the liquid nitrogen or invest in a fancy sous-vide cooker, forget about it. This is Vermont and cool nights call for homey dishes. Roast some chicken or let a ragout simmer in the oven. Your friends will enjoy a warm and wonderful evening and think you are a genius in the kitchen.
Good organization is the key. No matter what you decide to serve, two or three last minute trips to the farm stand or grocery store can frazzle any host. Check your recipes and your cupboards and make a detailed list before you head out. Focus on local, seasonal produce and easy to find cuts of meat, poultry or fish. That way, you know you will find everything you need.
Don’t just plan ahead – cook ahead! Whether you make Julia Child’s infamous Boeuf Bourguignon or roast a pork loin, prep and cook as much as possible before your guests arrive. For those dishes that require your last minute attention, do as the professionals do—prep your ingredients in advance to avoid a scramble to find, measure, chop, mince and even sauté your ingredients.
Don’t forget the cheese. A wonderful artisanal cheese is a great way to start the evening. Enjoy a glass of wine or a local brew with some of Vermont’s finest cheeses. Sprinkle a little on the salad or add it to a side dish, and your guests will sing your praises.
End on a high note. Who doesn’t love dessert? Fruity, creamy or chocolaty, with a special dessert your party will transcend memorable. Pears poached in red wine, crème brûlée or decadent chocolate torte, your guests will savor and remember your wonderful Breakfast, especially dessert, for months to come. Short on time? Serve really good ice cream with a thick and rich chocolate sauce. Dessert not your thing? That’s what bakeries are for!