04 December 2008

Confiscation Update

The text of former West Australian Premier Richard Court's Vista Public Lecture Series 2008 address is now available. It is worth a read and has a handy short history of WA attitudes to Federation. Some key quotes:

"Joel Fitzgibbon, the Federal Member for Hunter and the current Minister for Defence, said in presenting the Inaugural Edmond Barton Lecture this year, that an ideal reform of our Federation would be the abolition of the States.

At the time I said I could offer my 100% support for this proposition with just one proviso – that Western Australia secedes just prior to the States being abolished!"

"So in the three decades after Federation, with a population of around 400,000 there was growing dissatisfaction with the Commonwealth’s fiscal and legislative dominance and control.

1930 we were in the Great Depression and just prior to this discontent coming to a head. In 1932 the Western Australian Government decided to hold a referendum on seceding from the Federation on the grounds of unfair financial treatment.
This referendum was held on 8th April 1933 and it was 2-1 majority in favour of secession from the Commonwealth.

On 24th May 1935 a Joint Select Committee of the House of Lords and Commons resolved it was not proper for the Western Australian petition to be received because the United Kingdom Parliament could – as a matter of Constitution priority – only dissolve the Commonwealth at the request, and with the consent, of the Commonwealth. That consent had not been provided."

"Western Australia accounts for 35% of the nation’s export income."

"I am not advocating secession, but if you read “The Case for Secession” which is very thick and “The Case Against Secession” which is very thin that was prepared in the 1930’s, the case for secession today will be even stronger if this financial imbalance is allowed to continue."

I have updated the original gold confiscation post and will continue to do so as I want it to be the definitive research on the topic.

5 comments:

Anonymous said...

Hey Bron, My name is Lone Ranger from the Silveraxis site.

I attended GSUL in Canberra and it was a pleasure to meet you. It was my first venture to the other side --> the "Eastern States"!

You have raised some very interesting points with your commentaries of late and I have one question.

Do you think that Australian superanuation assets could ever be nationalised if economic conditions deteriated enough? I concede that this is not reality today but things can change dramatically over the decades.

Bron said...

Thanks for posting. Interesting question. Since super funds primarily have equities in them, then bad economic conditions means that stuff is worth crap, people's retirement plans/hopes are dashed, they get pissed off with the Government for forcing them to save via super (ie SG 9%) without being able to protect themselves with a gold/silver investment option (unless you are one of the few SMSF who has opened a Depository account) and political pressure builds on the Government to "save" people, so maybe nationalisation is possible, which is just another way of saying that everyone loses their super but gets a pension.

However, this will not solve the actual problem, which is that there is not enough real productive capacity by the economy as a whole (ie wealth creation by workers) to support the retirement needs of the baby boomers (ie the pension), well not unless you tax the hell out of those workers.

This sets the stage for a generational clash. Gen X & Y tell baby boomers "you were in charge and created this debt based fiat money system that created the illusion of wealth for your retirement and now that your system has blown up you want us to work our guts out to support you? bugger off, we have to save as much of our productive wealth so we will have something for retirement" Of course most baby boomers didn't have a clue what the whole system was about and will say it was the Government's fault.

Unfortunately, politics works on votes, and while baby boomers are a big demographic group, they will still be out numbered by actual tax-paying workers, so I can't see the Government looking to bail out retirees via a higher pension in exchange for nationalising super.

Anonymous said...

Lone Ranger again,

Thanks for your comprehensive and quick response. I knew you were the person to ask after reading your recent comments.

The old baby boomer theory is what started me on this journey so many years ago. Little did I know then that's the least of my worries. Your right about the popularity of such a move to nationalise super. I am still concerned that they may atleast raise taxes on super or change the rules in some way. After all they have restricted access to our money under the guise that its for our own good because they think that we cannot provide for ourselves in retirement. Argentina recently said that they were acting to protect peoples pensions.

Anyway I like your comments on the confiscation and secession subjects. I had no idea that they could enact confiscation so easily. I have also not heard anyone mention secession for many years and had no idea that there was a referendum.

Anonymous said...

Anyone got any good ideas about how best to keep your stash in the event of Australian confiscation - personal posession, overseas bank box, jewellery or the like? Any preference for Gold over Silver?

Anonymous said...

“The Reserve Bank of Australia conducts monetary policy, works to maintain a strong financial system and issues the nation’s banknotes. The Reserve Bank commenced
operations as Australia’s central bank on 14 January 1960.” From the RBA homepage.

If the RBA is to issue banknotes, why would the RBA have an interest in gold? In confiscating all the gold, it has to be delivered to the RBA. The RBA is a central bank run and owned by the banking Cartels of the world. Why are we surrendering the gold to the RBA and not to the Government? The RBA is a private and separate institution from the Government. The RBA is quite cunning to put everything in writing as though it is law and stamped with their authority. They are so cunning that they only produce the notes which is considered to be worthless as it is only plastic or paper made money, whereas they get the Government to make the relatively more expensive coinage. Likewise the Perth mint to make the expensive gold and silver coinage. The RBA just needs to slap ink on paper and say it is worth more than gold and we accept that as it is good.

I like the fact that from the early 1900’s that we had the use of gold sovereigns and sterling silver coins. The fact is the gold has already been confiscated through inflation. For example and using round figures, the gold sovereign is worth about $400 in today’s terms, about 7.3 grams of gold. Still in existence which is good to see. One Sovereign is one pound, and they had notes where it said it is redeemed, 1 pound for gold coin. Now the sovereign ceased around 1933. The pound note still continued up to 1966, in between the silver content halved in the 1940’s. So it comes to 1966 implementing decimal currency by the RBA. Now as you see on the RBA website museum the $1 pound note was swapped for the $2 note. In the 80’s the $2 note was swapped for a $2 gold coloured 8 gram copper coin. We have already had confiscation through increments through history. They have transformed a gold sovereign into copper coin and about the same weight and colour. Transforming $400 to $2. But hey, nobody cares anyway.

The 50 cent silver coin was stupid for the government to produce as it was a true anchor to the decimal currency but the RBA got rid of it in just the first year. As silver is difficult to manipulate in price, and now with decimal currency being freed, the decimal balloon can continue to be inflated into oblivion.

Now the hindrance of the copper coins is coming upon us and the confiscation of copper nickel bullion is near. The banks have already prepared their banks with large swallowing machines. Why would they pay so much for these expensive machines for the worthless pesky 5, 10 and 20 cent coins. The bullion value of these coins are about to exceed the face value. The media will prepare a propaganda campaign, finally we can get rid of these nuisance coins and every one will cheer and race to the bank to throw in the worthless copper nickel bullion into their machine. The banks are doing us a favour, right?