Gold Clause & CBDC

December 30, 2024 by Martin Armstrong

QUESTION: Regarding CBDC, will they convert all the savings/cash in your bank account, will they convert everything in your brokerage accounts (all stocks etc.) will they go after gold and silver you have in storage (Brinks, for example)?

KS

ANSWER: Everything will be converted to the new CBDC. The money in your bank account is already just an electronic book entry. This is why banks are closing branches everywhere in the USA as well as Europe. They are preparing for CBDCs, which means without physical paper money, bank branches are no longer needed. You can deposit a check on your phone. The only thing left for a branch is safe deposit boxes, and the government assumes you are hiding cash there anyway. So kiss your local branch goodbye. The local bank I used because it was the closest has closed, and it is now a 30-minute ride to the closest one still open.

The monetary system will still function as normal. The exchange will probably be one-for-one. The main purpose of this is to destroy the underground economy to be able to tax everything – even the 16-year-old girl next door you hire to babysit while you go out to dinner and that $100 bill you found in the parking lot that you cheated the government out of their 50% gift tax. We are all looked down upon as scum. They presume we are all guilty and the whole debt crisis is never their fault – it is you – we the people.

This is the natural progression of direct taxation – the complete loss of all liberty. This is why the Founding Fathers prohibited direct taxation. But the socialists seized the government and followed Marx to get the evil rich. It was introduced with the promise that only the rich would have to pay. They lied about that as well, for as soon as the income tax took place, simultaneously in the same bill, there was the payroll tax demanding employers withhold income from their workers.

The federal income tax of 1913 was accompanied by the fact that the law also attempted to withhold the brand-new income tax because the people were never to be trusted. Initial estimates were that the withholding provisions would yield two-thirds of income tax revenue, but in 1916, less than 5% came from withholding. Furthermore, employers’ simple lack of compliance led to a massive groundswell of opposition to the new withholding system.

The people realized that the government lied to get the 16th Amendment passed, and the state politicians voted for it because it allowed them to also allowed them to impose income taxes at the state level. Even cities joined the money grab, imposing city income taxes. Every layer of government now had the right to extort money from the people based on their income, requiring disclosure of their personal lives. You gave your children money, which was circumventing income tax, so they rolled out the gift tax. , which fueled the corruption on a massive scale. The Revenue Act of 1862 included an inheritance tax and gift tax, which applied to transfers of personal assets. In 1864, Congress amended the Revenue Act, added a tax on transfers of real estate, and increased the rates for inheritance taxes. They have always used war to justify raising taxes, but they always remain in place thereafter. The War Revenue Act of 1898 implemented an inheritance tax of .74 % to 15%, which was used to fund the Spanish-American War. This is why the government loves to wage wars.

By 1916, the payroll tax had become so politically unpopular that even Secretary of the Treasury William McAdoo advocated for its removal. In the War Revenue Act of 1917, the withholding rules passed in 1913 were officially repealed and replaced with a softer set of rules for employers — they were now only required to furnish information about wages paid to employees throughout a year, but not actually withhold or pay taxes on those wages.

This entire CBDC movement is about taxes, and they want to eliminate all paper money so they can track absolutely everything, rendering you an economic slave of the state precisely as the LEFT created with Communism. You will not be able to escape this system. This is why I have said that Republics are just tyranny by another label. We have no right to vote on anything. We are supposed to be “represented” by those in the House of Representatives, and the Senate represents the state governments – not the people. We have no right to vote on any issue ranging from taxes to war.

When FDR confiscated the gold, it was from institutions – banks and storage facilities. The Gold Confiscation Act of April 5, 1933, called for holders of significant quantities of gold to sell their gold at the prevailing price of $20.67 per ounce. They did not go from house to house. That is what FDR did. There are Supreme Court cases known as the Gold Clause where they upheld that private contracts with a gold clause could not be enforced.

The only exception was numismatic coins because Teddy Roosevelt (1858-1919) was an ancient coin collector. When Teddy became president on September 14, 1901 – March 4, 1909, he commissioned the artist Augustus Saint-Gaudens (1848 –1907) to redesign the $20 gold coin and made it high-relief as the ancient coins had been struck. The machines could not handle the high relief, and so the coins had to be reduced in their relief. He also ordered redesigning the $10 gold coin and had the American Indian represented. Teddy himself insisted on the headdress.

The statue of Teddy Roosevelt, who ironically was a socialist, had his statue removed from New York under reinterpretation that it was racist because it portrayed an American Indian and a black African. Teddy was certainly not a slave owner. Their representation reflected the two continents being America (the American Indian) and Africa because Roosevelt had taken a year-long expedition to Africa. This is the danger of interpretation that changes with the changing times. Teddy’s $10 Indian was commissioned in this same spirit of respect – not some racist WOKE theory.

This time, they will cancel all your paper currency, and your money in accounts is electronic book entries anyway. That will all be replaced with CBDCs in the bank/brokerage accounts. The only thing to survive will be tangible, real NUMISMATIC coins before 1933. They may outlaw bullion in transactions, and just as they altered all private contracts, nullifying any clause that required payment in gold, we must understand that they can do that even to cryptocurrencies outlawing such transactions.