Tuesday, July 20, 2010

You knew Glenn Beck was a snake oil salesman, right? or 1932 is an excellent vintage for Spam

A favorite of the far right government haters, fear mongers like Glenn Beck and others like him at FOX News, Goldline is under investigation by the Los Angeles DA for its practice of bilking customers with over priced gold coins. The scam is based on the fiction that the government is poised to seize your gold at anytime and only collectible coins issued before 1933 are exempt. FDR did exempt very rare coins when he called in gold at that time but this is not the law as signed by Gerald Ford. That law allows the President to seize gold only in time of war and without any exemption for rare coins.

They claim the coins they sell are "collectible" because FDR melted down all the gold and only a few coins survived overseas.  In fact the government did not melt any usable coins but held them to satisfy redemption of USD by foreigners over the next forty years. Since most of these coins are still in circulation they are by no means rare or collectible. This makes any of the coins they offer worth no more than the daily posted price for bullion and in fact less as they are not pure gold.

Allegations that have been made to prosecutors are that the coins are worth barely half of what the company Beck endorses is selling them for. Their spokesman’s response is that they sell bullion too and the buyer can have what he wants. Well, that’s just caveat emptor sucker. If over priced gold coins fit into your crazy right-wing world view (that we helped create) we’re just providing a legitimate public service by taking your money. What do you think you’re doing by going to the local coin shop and trying to sell them? Don’t you remember that Mike Huckabee (another paid FOX spokesman) told you the world was ending? You’re supposed to hang onto the gold until then.

As far as the FEDs getting involved with your gold, this will only happen if you exceed the IRS daily cash transaction reporting limits by paying your gold broker with green cash exceeding $10,000 or with multiple money orders exceeding $10,000. (if pay by personal check or a single cashiers check it's not subject to reporting) Your bank does keep track of Cashier's Checks and might report you anyway regardless of the amount unless you have an agreement with the bank to launder your drug money.

Of course your personal bank records are always subject to snooping by the IRS and any of the several thousand agencies and contractors established since 9-11 and you won't be told by the bank if they do. Selling large amounts of foreign bullion over a certain amount are reportable by the dealer but US minted gold bullion coins are completely exempt. PS if you're NOT a tax cheat or drug dealer then being reported to the IRS will do nothing worse than trigger an audit. If you are a terrorist or trans-national corporation (I repeat myself), then nobody is watching you anyway.

If you buy more than $10,000 worth of canned goods with cash at the grocery store in a single day they are required to report the transaction to the IRS. I don't recommend buying pre-depression era canned goods to try to avoid this requirement.     www.prairie2.com