On April 28, economist and intelligence analyst James Rickards was a guest on the late night Coast to Coast AM radio show to speak upon current economic events. During his two hour interview, Rickards addressed the ongoing financial cold war percolating between the U.S. and Russia over Ukraine, and how economic sanctions placed on Russia by the U.S. could easily and lawfully be used to freeze and confiscate the bank accounts, retirement funds, and other assets of the American people.
President Obama, along with other members of his Executive Branch, are using a law passed during the Cater administration to justify the imposing of sanctions on Russian affiliated financial transactions and accounts. This law, known as the International Emergency Economic Powers Act (IEEPA), gives the President complete and utter dictatorial powers over all international financial and economic matters that the President deems to be critical. And since the entire global monetary system is now inter-connected, and the dollar plays the role as the global reserve currency, the President is not limited to using these powers solely against sovereign states, but the law is formulated to allow it be used domestically as Obama sees fit.
Jim Rickards: In on of his first days in office, President Roosevelt confiscated all the gold in the country. Now you ask, how did he do that? He did it by Executive Order, and the statutory basis for this was the Trading with the Enemy Act of 1917.
Now this law was enacted during WWI, so we could seize German assets that were in America. So who was the enemy in 1933? There was no war going on, but the President used this act to seize the gold, so in his mind, it was the American people who were the enemy.
There is a more power statute on the books today... the International Emergency Economic Powers Act of 1977. It gives the President dictatorial powers in the event of an international economic crisis. Now, show me an economic crisis that's not international? They are all international.
This is what they use in this financial war with Russia. When the Treasury issued sanctions to freeze the assets of the head of Rostov Oil, they used this IEEPA.
They can use this whenever they want, and they can use it against Americans if they deem it. - Coast to Coast AM, April 28
The United States is an insolvent country, with debt levels being greater than the annual productivity of the nation. At its present time, the National Debt is more than $17 trillion, with annual budget deficits ranging between $600 billion and $1.3 trillion over the past five years. And because of this escalating debt spiral, both President Obama and certain members of Congress have been looking hard at the nearly $17 trillion in private pension and retirement accounts as a way to pay off some of the government's debt obligations, and capitalize their way out of years of fiscal irresponsibility.
As many alternative economists have predicted, 2014 will be a pivotal year for the dollar and for the continuation of U.S. hegemony over the global reserve currency. And when empires reach the point where standard economic practices and policies no longer are sufficient, history has shown, even as recently as America in 1933, that a government is more than willing to confiscate the money and assets of their citizens to sustain that empire, even to the detriment of the entire economic system.