classical economics
for analysis,  forecasting
and policy design

FDR Bought More Gold

FDR BOUGHT MORE GOLD ANNUALLY
Than All Central Banks Combined Now!

By Wayne Jett © June 25, 2019

     Today ZeroHedge headlined “America's Adversaries Are Buying Gold Like A Nuke Is Going Off Tomorrow.” But the reported tonnages of gold bought by all central banks combined in 2018, or in 2019, pale in comparison to gold purchases made annually by the U. S. alone during each of FDR’s eight years (1933 through 1940) of the Great Depression. Franklin Delano Roosevelt hoarded monstrous amounts of gold in U. S. Treasury vaults as hundreds of thousands of Americans died of starvation each and every year.

     Is “monstrous” too harsh a description of such a president and his actions? On the contrary, a reasonable person reviewing the numbers on FDR’s gold acquisitions and related actions would not fail to call it monstrous, or worse.

Central Bank Gold Purchases 2018-2019

     Here are the tonnages of gold acquired by all central banks in the world during 2018 and 2019, as reported by ZeroHedge:

“Central bank demand is gaining momentum and we now expect 2019 purchases to reach 750 tonnes vs 650 tonnes last year. Visible gold purchases YTD are running at 211 tonnes until April vs 117 tonnes over the same period last year (see Exhibit 11).

“Importantly, China just raised its gold purchasing pace from 10 tonnes per month to 15 tonnes for April and May as it aims to diversify its reserve holdings.”

FDR’s Gold Buying

      By comparison, between his inauguration as U. S. president in March, 1933, and December 31, 1940, FDR saw to it that the U. S. government acquired a total of 13,185.3 metric tons of gold. The gold was bought primarily on foreign exchange, plus some purchases from U. S. domestic mines, with funds provided by tax revenues and bond borrowings from the American economy. A portion of the total tonnage included capital flows from Europeans beginning in 1936, believed to result from concerns for coming war.

     This amounts to an average of 1,648 metric tons of gold per year acquired by FDR’s government during eight years in which hundreds of thousands of Americans died of starvation in each and every one of those years! The gold was hoarded by Treasury, and FDR made sure the gold was not monetized; i.e., the Federal Reserve did not issue dollars into the economy based on the gold acquired, as was the rule normally followed by nations observing the gold standard for their currencies.

     To summarize, during the eight worst years economically in American history, FDR stripped money out of the domestic economy and hoarded it in the form of gold stored by the U. S. Treasury. Understanding that doing this would leave a much reduced amount of money in America does not require a financial genius. Any American told these facts during the Great Depression would have responded immediately: “That is why nobody has any money and everything is selling for a few cents on the dollar!”

American Deaths by Starvation

      How many Americans died during the Great Depression? One social scientist concluded at least three million died of starvation or diet-related illness. Another concluded at least six million. Neither study was done by an American social scientist, though we have many.

FDR’s Objectives and Motivations

     FDR’s gold purchases throughout his first two terms as president were tremendously destructive to the American people and to the economy. But they were only one portion of his actions to make the Great Depression happen. For example, FDR raised taxes and/or added new taxes every year he was president, except 1939 after Democrats lost 83 seats in the House off-year elections of 1938 and subsequently refused FDR's desire for more tax increases.

     FDR did these and other actions to hurt the economy and to destroy the middle class. His objective was to elevate himself as a highly trusted operative of the powerful global cabal which has controlled the affairs of every nation for centuries. His conduct was completely consistent with the elitist manifesto written by H. G. Wells in 1901 setting forth the cabal’s objectives to destroy the middle class and representative government completely.

     In fact, Wells visited FDR and Eleanor Roosevelt at the White House on multiple occasions, staying weeks at a time, and praised FDR’s “brain trust” as men of “the New Republic” capable of taking “full power” when national government falls. Wells had similar praise for Joseph Stalin when he visited the Kremlin.

Preparing For Today And Tomorrow

     This is not nearly the entire story of actions taken by FDR to make the Great Depression longer and deeper. But is it not enough to persuade you to learn more about how badly you have been misled by what you have been told by schools and by major media? Consider the historical research and analysis available to you in The Fruits of Graft – Great Depressions Then And Now, which may be purchased in hardback here. Or the Kindle e-book version is available on Amazon.

     If you do not already have The Fruits of Graft, now is your best opportunity to learn important aspects of the true history of America, and your understanding may become crucially important presently.  America has engaged a counter-attack against the global cabal which imposed the Great Depression and many other atrocities upon us. You are needed on the side of the people in opposing those who seek to be our rulers.