Executive Order 6102 is a United States presidential executive order signed on April 5, 1933, byPresident Franklin D. Roosevelt “forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States”. The order criminalized the possession of monetary gold by any individual, partnership, association or corporation.

The stated reason for the order was that hard times had caused “hoarding” of gold, stalling economic growth and making the depression worse. The New York Times, on April 6, 1933 p. 16, wrote under the headline “Hoarding of Gold”, “The Executive Order issued by the President yesterday amplifies and particularizes his earlier warnings against hoarding. On March 6, taking advantage of a wartime statute that had not been repealed, he issued Presidential Proclamation 2039 that forbade the hoarding ‘of gold or silver coin or bullion or currency,’ under penalty of $10,000 and/or up to five to ten years imprisonment.”

The main rationale behind the order was to remove the constraint on the Federal Reserve which prevented it from increasing the money supply during the depression; the Federal Reserve Act required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit (in the form of Federal Reserve demand notes) that could be backed by the gold in its possession (see Great Depression). If gold can’t be legally owned, then it can’t be legally redeemed. If it can’t be legally redeemed, then it can’t constrain the central bank.

http://en.wikipedia.org/wiki/Executive_Order_6102

Banking institutions are required to keep a reserve that economists label the substitute requirement. Banks only have to keep let’s say, 20 percent of genuine assets (cash) for all the money they lend away. That is ostensibly to permit for depositors asset expectations. If everyone wants their cash, as in a baking crisis, the financial institution is screwed and so are the depositors. It’s a jail break, every man for himself and the money is gone.

Once the United States had gone off the gold bullion standard, we made ourselves the world’s bank and assumed we only required a small reserve of those gold deposits. Guess what? We utilized all their particular gold towards pay for our Socialist nanny state. Remember all those deficit years? The world desires their own gold returned. It isn’t there. Any gold is actually “new” smelted gold. There is absolutely no German or perhaps Swiss bullion with their markings on it because our politicians spent it, gambling on “the come”…. foreseeable future income! Our political leaders screwed all of us and the rest of the world.? Be AWARE and be PREPARED, FEAR is not an option. Be safe everyone…