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<p>[QUOTE=&quot;Texas John, post: 1127045, member: 25813&quot;]Sigh.</p><p><br /></p><p>I&#039;ve said this before, but I&#039;ll say it again...</p><p><br /></p><p>The situation in 1933 was unique. By law, the money supply was a function of the amount of gold available in the banking system. As example - every time a nervous citizen went to a bank, got a $20 gold piece and stuck it in his mattress, the government BY LAW had to remove $100 in FRNs from circulation. It doesn&#039;t require a PhD in economics to know that during a depression, the last thing you want to do is shrink the money supply.</p><p><br /></p><p>By requiring (in a toothless, exhortative, no door-to-door searches kind of way) people to bring hoarded gold coins to the bank and get notes in exchange, the government was attempting to grow the money supply within the legal restrictions that existed.</p><p><br /></p><p>Today, the money supply is no longer legally restrained by the number of double eagles in a vault some place. The government has a variety of modern economic tools available it can use to change the money supply. There is no realistic scenario in which the government will consider it necessary to compel citizens to give up their gold, much less their silver.</p><p><br /></p><p>So unclench, everybody.[/QUOTE]</p><p><br /></p>

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