Sunday, December 18, 2011

Gold: If you don't hold it then it could be open for confiscation by trustees

In the aftermath of the MF Global theft and scandal, a new discovery is surfacing in the legal capabilities of bankruptcy trustees.

The right to confiscare property, even if it is owned by clear deed or receipt by a customer not associated with the failed company.

The bottom line is that apparently some warehouses and bullion dealers are not a safe place to store your gold and silver, even if you hold a specific warehouse receipt.  In an oligarchy, private ownership is merely a concept, subject to interpretation and confiscation.
Although the details and the individual perpetrators are yet to be disclosed, what is now painfully clear is that the CFTC and CME regulated futures system is defaulting on its obligations.  This did not even happen in the big failures like Lehman and Bear Sterns in which the customer accounts were kept whole and transferred before the liquidation process.   Jessie’s CafĂ© Americain

With MF Global, we first learned the diabolical consequence of Re-Hypothicaton.  Now, the other shoe drops and the system is showing its bite and is claiming the right and power to take legitimate private property, albeit the gold and silver investors own and have stored in warehouses.

The old axiom every investor should know:  If you don't hold it, you don't own it.

Cant wait for the owners to sue the CME and the judge awards them fiat currency, while the exchanges get to keep your gold.

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