The guys at Money morning just alerted me to this... http://www.comlaw.gov.au/Details/C2012C00261/Html/Text#_Toc317780663 Essentially allowing the governor general the ability to confiscate gold and make it illegal. A tad concerning... My wife and I were discussing that since Perth Mint gold and silver coins have legal tender status there is already a level of third party intervention with the law stating we are not the owners of these coins, only the temporary custodians. Time to buy bars only?
From a few years ago, Bron had a good writeup on this: http://goldchat.blogspot.com.au/2008/11/australian-gold-confiscation.html
Nice write up...4 years on the following paragraph should be highlighted and discussed... "My simple answer to these two questions is to note that Australia is a commodity currency. We export a lot of raw material commodity stuff and food that other countries want. Sure, like many western countries, we have a reduced manufacturing capability but we can always build up that capability, whereas some countries cannot just make iron ore appear out of their ground. I therefore consider Australia relatively lower risk on this factor. We can be self sufficient. Sure we might have to do without plasma wide screen TVs, but at least we can feed ourselves."
That is an intrestering way of putting it, I must admit I have never thought of it quite that way, however as we lose the skills to do that and become more of serviced based economy we can no longer gain those skills without a large injection of funds to relearn those skills espically if it over a generational gap and I am not sure if we have the ability to gain those skills easily.
With all due respect to Bron, I think his analysis on why we are low risk of this is a little naive. We know how hugely insolvent our banks are. We know how hugely leveraged to residential property prices our banks are (multiples to the US and UK banks were when things headed south). We know how hugely reliant on offshore lending our banking sector is. Our house of cards is far far more susceptible to a light breeze than any of the nations that had massive bankruptcies. Without a Chineese credit bubble providing a wind break in recent years we would be up the creek. We know how fast our government is to "step up to the mark" in cases when "the free market fails" and intervene. We know how fast our government is to change the goal posts to suit its spending agenda (super profits tax). We know how fast our government will straight out lie to us in order to get elected (carbon tax). We know that both sides of politics is willing to throw the average guy on the street under the bus and willing to let foreign creditors take first bite of the insolvency cherry should a bank go bankrupt over depositors (covered bonds supported by all parties). Who in their right mind in 2012 still believes that in the event that the majority of us are stacking for, that the government will simply not lift the suspension on this act after a single meeting with the RBA? All Glen Stevens has to tell that incompetent twit Wayne Swan is "we have to do this or we risk total collapse" and that suspension will be lifted as fast as you can say "Good job Penny"! We as stackers have a significant vested interest in a strong and sustained lobby of both sides of politics RIGHT NOW to have this part or all of the act repealed. It is no use waiting until SHTF, we will have no chance. We need to use the political rhetoric from the politicians that "we are different", "we have the strongest banking system in the world", "we have a strong economy with a pipeline of investment" blah blah blah, to make them take this off the table. If what they are telling us is true (LMFAO) then they should feel no need to have an act in suspension that could effectively steal private property away from us. Anyone friends with a federal Liberal MP that could broach this subject? Maybe even co-sponsor a petition? I only say Liberal MP because at least the Liberal charter at least still stands for freedom regardless of how they have abandoned it.
Not friends as such but there are enough floating around the town that I bump into them often enough. Typically I've focussed on discussing reduction of red tape, public service, repealing Section 18C and the like. I'll edjumacate myself a bit more on this topic and see if can throw it into the mix.
FYI, wrote that 4 years ago. My point was that the only reason a country needs gold is to pay for imports it needs. In really tough times I think there is less pressure in that regard because we have a lot of natural resources and can feed ourselves so we won't get as desperate as a country who HAS to import energy and food. I also think the risk is low because Australian's don't hold a lot of gold privately, so there is little to be gained by confiscating gold - it wouldn't make much of a dent in any government deficit. I posed a question in my blog post about whether this is a good idea. Right now we know the nature of the law, so can prepare (eg stack silver bars). By raising the issue we run the risk of either 1) Govt saying Oh didn't realise that was there, no we better keep it in just in case of war etc and while we are at it, lets "improve" it by adding silver in etc or 2) it is taken out and then later when they introduce a new confiscation act it includes silver bars and unallocated account etc. Upside is that they would telegraph their intentions as it would take time to pass a new confiscation law.
Thanks for the link to the article. I hadn't read that before. If the Government did have to call in the gold because it had squandered all the money it has taken in taxes, or needed it to fund a war effort then I would feel morally obliged not to give it to them. As it is, my money is already being used to kill foreign civilians as they cower in their homes, I feel disinclined to give them any more money so they can carry on with it. I feel a big wroughting coming on! Would hand pours count as wrought gold or would I have to hit them a few times with a hammer?
Yes, wrought gold is another aspect which is open to interpretation. I can see low cost/premium 24ct bangles becoming very popular.
