by Alex Canahuate:
The specter of confiscation has haunted gold investors for some time, but with increasing persistence as a legitimate "recovery" fails to materialize.
".. Upon a more detailed review, it is obvious that the circumstances which precipitated the 1933 gold confiscation are not applicable today. While debt concerns were prevalent then -- and are even more so today -- the reality is that the government will always prefer to manipulate the fiat currency system rather than engage in the operational nightmare that would be a current-day gold confiscation. Besides difficulty, the government can affect economic changes via policy tweaks more surreptitiously than by using more overt measures like confiscation. In an era of record low Congressional approval and an atmosphere of political fatigue amongst the general public, the likelihood of our policymakers passing unpopular confiscatory policies remains unlikely at best.
"As I initially said, anything is possible. However, a more plausible concern is the adoption of exchange controls, which ultimately limit citizens' ability to move money and assets in and out of a country and currency. In a hypothetical, future environment of hemorrhaging dollar value and slumping demand, the U.S. government may find itself in a position where it has to implement exchange controls to keep Americans from dumping dollars in favor of other currencies and non-dollar denominated assets. ..."
Hat tip to Roger, https://twitter.com/MonetaAdvisors