Would Biden Make Gold Illegal to Counter Putin’s Demand?
Introduction
The recent international crisis has sparked much controversy and misinformation. A common misconception is that if Russian President Putin demands gold for his oil, then US President Biden might consider illegalizing the private ownership of gold to preserve the American savings. However, such a drastic measure is highly unlikely and doesn’t align with factual realities and legal standards.
Understanding the Context
It’s important to understand the current situation and the practicality of such proposals. Currently, Russia is the third-largest producer of gold, so even if Putin were to demand gold as payment, it’s more likely that he would simply accept dollars. In a recent video, the run on Russian banks led many to trade rubles for dollars, underscoring Putin’s preference for the latter.
The Infeasibility of Illegalizing Gold Ownership
Authority and Legality
President Biden does not have the authority to declare gold ownership illegal on his own. According to the Constitution and federal laws, only Congress has the authority to regulate such matters. This means that any attempt to make gold ownership illegal would require legislative action, which is a lengthy and complex process. It’s not something a single president can or would want to do.
Practicality and Economics
Gold is not a traditional investment tool that generates income or dividends. Unlike owning a business, it’s merely a store of value. While many people do own gold to preserve their wealth, illegalizing its ownership wouldn’t address the underlying economic issues. Additionally, locking up gold reserves would be a logistical nightmare, and it might not have a significant impact on the global market.
Separating Factual Realities from Speculation
Putin’s Demand and Practicalities
Putin is not in a position to demand gold due to its significant industrial and personal use. Many precious metals, including gold, are used in various industries and personal jewelry. Therefore, the demand for gold far exceeds any amount that Putin could realistically acquire through his oil exports.
Biden’s Authority and Measures
President Biden has the authority to impose sanctions, but he does not have the power to Declare gold ownership illegal. Instead, the US government can lock up gold reserves of sanctioned countries, as it has done with the Central Bank of Venezuela’s gold. However, not every country would be open to receiving payment in gold, and it’s the transaction that is illegal, not the form of payment.
Reflection on the Contextual Relevance
Some argue that Biden is scheming to take away Americans’ freedom. However, such claims are misplaced. There is no justification for ignoring the worst abuses of humanity, such as those committed by Hitler and the Holocaust. Such actions were far more severe and damaging than any legal action related to gold ownership.
Conclusion
In conclusion, making gold ownership illegal to counter Putin’s demand is an unrealistic and impractical solution. It’s not something President Biden would consider, and it wouldn’t solve the underlying economic and geopolitical issues. Instead, focusing on practical and legal measures would be more effective in addressing the current crisis.