Bitcoin (BTC)



Ninety-one years ago today, President Franklin D. Roosevelt managed the biggest heist in American history.

Unlike most burglaries, this one was totally legal. No safe-cracking was needed; no ski masks, weapons, or trip vehicles. Just a pen and some White House letterhead.

On April 5 1933, FDR provided Executive Order 6102, making it unlawful for anybody in the United States to own gold. By charge of approximately a $10,000 fine or ten years in jail, everybody in the nation was purchased to kip down their gold to the federal government, by the end of the month.1

EO 6102 is one of the essential turning points in the history of cash. Book-ended by the development of the Federal Reserve in 1913, and the end of the Bretton Woods system in 1971, it was an essential part of the procedure by which the U.S.A. deserted gold for a fiat requirement.

As such, it’s a turning point in Bitcoin history too. Though Bitcoiners’ interest in EO 6102 extends beyond the simply historic: since it’s the essential cautionary tale of approximate federal government seizure of personal effects, it’s also one of the finest genuine case research studies to show the worth of Bitcoin self-custody.

Realizing that the federal government is not your pal resembles discovering that Santa Claus isn’t genuine. A needed part of maturing, however a possibly distressing reality that requires to be presented to kids thoroughly.

Nonetheless, the adult years needs pertaining to grips with the reality that there’s no jolly fat guy boiling down the chimney with presents in hand. In the real life, the unusual fat guy uses a frown and comes through your front door with an arrest warrant if you don’t pay your taxes.

For many individuals, the story of Executive Order 6102 brings them into accident with this truth. It teaches us that the United States Government has actually not been reluctant to brazenly take its people’ wealth at the barrel of a weapon, and under the best scenarios would definitely do it once again.

However, a lot of conversation of 6102 concentrates on why FDR did it and whether it was warranted. This argument is framed around FDR’s total handling of the Great Depression. On one side you have (basically) FDR hagiography which states that he was a straight-out American hero; that “without his New Deal, we would all have been lost.”2

On the opposite, you have the (rather milquetoast) Republican criticism which states, well possibly FDR went too far, or possibly he in fact injure the economy as much as he assisted it. Sometimes a spicy Libertarian will fume under the collar and inform you FDR sent out America down the course to welfare-statism and “accustomed Americans to the pernicious dole.”3

All of this misses out on the essential lesson from EO 6102, which is how FDR pulled the entire thing off. I indicate, technically. Legally.

This is because, regardless of the reality that FDR’s Presidency might justifiably be defined as a quasi-dictatorship and, in the words of America’s primary FDR disrespector Curtis Yarvin (aka Mencius Moldbug), “rule by personal decree”4, there specified legal precedents and tools of executive power that he depended on to make EO 6102 kosher.

This legality (fig leaf for tyranny as it might have been), is most importantly essential to comprehend. It was one of the fundamental actions in codifying what would go on to end up being a method for abusing Americans’ rights preferred by practically every President, and has actually been carried out actually lots of times in the years considering that.

If we have any hope of stopping it, we need to initially find out to see it from a range, and then stomp it out preemptively.

The Use and Abuse of the National Emergency

“Now, in a well-ordered republic it should never be necessary to resort to extra-constitutional measures; for although they may for the time be beneficial, yet the precedent is pernicious, for if the practice is once established of disregarding the laws for good objects, they will in a little while be disregarded under that pretext for evil purposes”

– Machiavelli, The Prince and the Discourses

I’m not exactly sure anybody’s ever stated that the conduct of American Presidents has on the entire not been Machiavellian enough, however in this case the historic record is clear.

Dating back a minimum of to Abraham Lincoln’s suspension of habeas corpus in 1862 (so he might lock individuals up without trial throughout the Civil War), ‘disregarding the laws for good objects’ has actually been virtually a task requirement of the oval workplace.

Carl Schmitt stated that “Sovereign is he who decides on the exception.” Every United States President considering that Lincoln has actually made definitely sure, when needed, to develop and make use of ‘extra-constitutional’ exceptions for their own ends. In Schmitt’s case, well, you can Google him to see how he put concept into practice.

In order to produce these exceptions in America, Presidents have often turned to the necromancy of a specific expression, which dependably summons the unique powers they look for. Much like coaxing a genie from a light.

The expression is “national emergency”. Likely, it recognizes to you. If you’re an American adult, it’s been conjured up in your life time to assist grease the skids for a vibrant range of constitutionally suspect legislation, from the ‘anti-terrorism’ arrangements of the Patriot Act to the public health emergency situation procedures of Covid-19.

In reality, it’s such an essential of the federal government toolkit that utilize of the ‘national emergency’ has actually been formally approved considering that the The 1976 National Emergencies Act. Since that date, 82 such emergency situations have actually been stated, and 42 are still in impact today.5


To provide you a sense of the temporal nature of these ‘emergencies’, there are still in impact: 9 from the Obama administration, 10 from Bush II, 5 from Clinton, and even one from Jimmy Carter in 1979!

This is what Milton Friedman was discussing when he stated “Nothing is so permanent as a temporary government program.”

This is also the story of Executive Order 6102, for it too grew from a main national emergency situation.

You can read this in order itself, where FDR states in the preamble: “I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist…”

Executive Order 6102, 5 April 1933

But still, the story goes much deeper. It’s not simply enough to state a national emergency situation and then do whatever you desire. That definitely wasn’t the case in 1933.

So what was FDR’s national emergency situation? What in the world could lawfully validate the seizure of all American gold?

The brief response is the Great Depression and looming monetary crises in 1933. But in order to actually comprehend the twisted history of national emergency situations, we need to go back another 120 years initially.

The Beginning: Principled Piracy

In 1812, the United States was at war with Great Britain. Prior to the war, an American person Jabez Harrison bought some products in England and stashed them on an island off the coast of the United States, near Nova Scotia.

About a month after the war broke out, Harrison chartered a boat, the Rapid, to recover the freight and bring it to the mainland. While en path, it was caught by an American privateer called the Jefferson, who declared the ship’s products as a reward.

Harrison felt, as you may anticipate, quite aggrieved by this and taken legal action against the owner of the Jefferson. Unhappily for Harrison, he did not recover his freight.

The law was clear and unambiguous according to Supreme Court Justice William Johnson: under the well recognized guidelines of war, Harrison was “trading with the enemy”, and for that reason whatever he had actually obtained from stated opponent was basically up for grabs for the federal government.6

Thus the seed was planted in American law: if you trade with an opponent throughout war time, anticipate a go to from Uncle Sam with his distribute. This, think it or not, is the legal structure for Executive Order 6102.

“But”, (I hear you insert), “By what definition could an ‘American with gold’ be reasonably classed as an enemy of the state? And besides, there wasn’t even a war in 1933!” Fantastic points, and you’re best to make them.

To beginning the response, let’s very first take a detour into some high level American jurisprudence. In the dirty however politically charged arena of Constitutional analysis, there are numerous significant ‘philosophies’ that you may register for.

Because the Constitution was composed a long period of time back, we require to discover a method to use it to the present day. Where, for instance, we may have brand-new innovations or social issues today that didn’t exist when the Constitution was composed (like e.g. social networks, or automated rifles, or abortion tablets). In such cases, these ‘philosophies’ aid judges choose the ‘right’ method of analyzing the Constitution (which also normally lines up with their individual political views, however that’s another story).

If you got up tomorrow as a Supreme Court Justice and required a cheat sheet to assist you break a difficult Constitutional nut, here are the primary schools of analysis you may depend on: 1) Textualism: where you concentrate on the ‘meaning’ of the law at the time, 2) Originalism: where you concentrate on what the in fact meant, or 3) A ‘Living Constitution’ technique: where you essentially state, ‘to hell with that old rag, we should just update it according to the demands of today’.

The 3rd technique is basically how the law around ‘national emergencies’ has actually progressed. And not, like, a sluggish and purposeful ‘natural selection’ development either. More like a Frankensteinian chimera laboratory rat fed plutonium for breakfast.

So, what started as an acknowledgment of the easy concept that working with opponents throughout a war is bad and the federal government can stop it, ultimately altered into FDR taking the gold.

Now let’s fill in the spaces and demonstrate how that occurred.

1917: National Emergencies Go Up

There are some excellent competitors for Worst Year Ever in the history of abuses of private rights in America. 1917 may be in the leading 5.

One piece of legislation passed in 1917, the Espionage Act, was of such great vintage that its capability to validate profane federal government overreach is still being put to great usage today.

This bundle of laws was passed to, basically, allow the federal government to do whatever it desired, to anybody, who got in the method of its efforts to prosecute WWI. More than a century later on, this would be the law which both Julian Assange and Edward Snowden were criminally charged under.

1917 was also the very first time the expression “national emergency” entered the official language of the Presidency. Invoked by Woodrow Wilson initially in his Proclamation 1354, the emergency situation at hand was that there were obviously insufficient boats to ship all of America’s exports to consumers around the world. As an outcome, Wilson offered the Shipping Board the power to control the sale and usage of freight ships in America.7 Leasing your freight ship to foreign interests? You simply did a heckin’ infraction.

This would not be the last national emergency situation of 1917, nevertheless. After America stated war on Germany on April 6, the administration now had a number of brand-new issues to handle.

Aside from combating the war itself, there was the problem of what to do with all the German company interests in America, and vice-versa. In the years considering that The Rapid, worldwide trade and commerce had actually advanced considerably. Now, there was a large web of business relationships in between America and its brand-new opponent, which would take rather a bit of effort to disentangle.

The service was the Trading with the Enemy Act, which brought the concept of The Rapid into legislation and significantly broadened it. The main function of the TWEA was to “define, regulate, and punish trading with the enemy.”8 In practice, the objective was twofold: to take German resources for the advantage of the United States war effort, and to avoid Germany from doing the reverse.9

Democratic Congressman Andrew Montague argued in favor of the Bill by stating, “perhaps in no former war was trade ever so potential a weapon in the hands of a belligerent as in the present conflict. This is not a war of soldiers so much as a war of economic forces.”10 This, 3 years into a war that had actually currently cost lots of millions of lives.

For apparent factors, history has actually mostly forgotten what German companies and civilians withstood in America for the rest of the war. Estimates are that 6000 males were sent out to internment camps, and around half a billion dollars in possessions completely seized.11

Source: New York Herald on March 28, 1918,

This was all licensed by the Trading with the Enemy Act. One area of it in specific, nevertheless, would go on to be the lynchpin in the Executive Order 6102 story.

That was Section 5b, which offered the President total power to examine, control, or forbid any deals handling “foreign exchange”, or by any foreign nation.12

You may notice now that we’re getting warmer. The TWEA power is developing, and EO 6102 starting to take shape, slowly getting clearer like a shadowy phantom emerging from the darkness.

But we’re not there yet. There was another obstacle to overcome, for the President’s power in 1917 was still restricted to “during the time of war.”13

It would take another disaster more immediate even than World War One to overcome it.

Great Depression: FDR’s Opportunity

That disaster would be available in 1933, following 4 years of inconceivable suffering throughout the Great Depression and a rapidly spiraling monetary crisis.

Three days before FDR was inaugurated, on 1 March 1933, the head of the New York Federal Reserve branch, George Harrison, remained in panic mode. The bank’s gold reserve had actually fallen below the legal limitation. Harrison sent out a memo to Washington stating that he would “no longer take responsibility” for the bank’s “deficient reserves”.14

What was going on?

Well, in 1913 when the Federal Reserve was developed, a ‘gold standard’ was developed into its structure. The Fed was needed to hold gold equivalent to 40 percent of the worth of the dollars it provided, and to transform those dollars into gold at a repaired cost.15

The issue was, the United States remained in the middle of a deflationary crisis. The economy had actually been going backwards for several years. Gradually then unexpectedly, individuals started to look for the security of gold, and withdraw it from banks all over the nation.

However, there was one huge issue: there was merely insufficient gold. As FDR would confess openly a couple of months later on, the federal government’s financial obligations totaled up to $30 billion in gold, and personal gold-denominated financial obligation amounted to another $60-70B.

Meanwhile, “all of the gold in the United States amounted to only between three and four billions and that all of the gold in all of the world amounted to only about eleven billions.”16

FDR’s analysis of the minute is taped in his inaugural address. He utilized the speech to wage a broad attack versus the excesses of industrialism which he (and history) would scapegoat for triggering the 1929 and Great Depression.

He called out the “unscrupulous money changers”, and the “falsity of material wealth”, and required that “there must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people’s money, and there must be provision for an adequate but sound currency.”17

Now, if you’ve been focusing, you shouldn’t be shocked by what he stated next. Yes – it was certainly a national emergency situation. One so serious that it needed a “broad Executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe.”18

It was all downhill from there.

Two days after FDR’s term started, he acted to stop the gold run by merely closing the banks. The March 6 Proclamation 2039 set up a ‘Bank Holiday’ from 6-9 March, banning any withdrawal of gold, to stop the “hoarding”.19

Stopping the run wasn’t enough, though. Hoarders were now opponents of the State, and the Fed desired names. On March 8, the St. Louis Fed sent out a memo to member banks, asking for “the names and addresses of all persons who have withdrawn gold from your bank since February 1, 1933.”20

On March 9 1933, Congress passed the Emergency Banking Relief Act, giving FDR practically complete individual control over the whole banking system. It offered him authority to control “any transactions in foreign exchange, transfers of credit between or payments by banking institutions as defined by the President, and export, hoarding, melting, or earmarking of gold or silver coin.”21

Now, here is our link back to 1917. As we discussed previously, the Trading with the Enemy Act limited this power to war time operations. But as was foreshadowed in FDR’s inaugural address, the Emergency Banking Act (EBA) would assist FDR surpass this technicality.

Specifically, it modified the TWEA to make sure that FDR had the power to control commerce “during time of war”, or most importantly, “during any other period of national emergency declared by the President.”

FDR had his crisis, and now he had his emergency situation powers. A couple of weeks after the passage of the EBA he would provide Executive Order 6102, and then the task was mainly done.

By and big, everybody complied. The day after the Order, the New York Times ran a post on the front page with the heading: “HOARDERS IN FRIGHT TURN IN $30,000,000; Gold Pours Into Banks and the Federal Reserve as Owners Act to Avoid Penalty”22

This brings us to the end of the story. From The Rapid, to the Trading with the Enemy Act, to the Emergency Banking Act, to Executive Order 6102.

The development was total, and preserved the national emergency situation exception into Presidential powers after that. Natural catastrophes, foreign wars, domestic wars, public health emergency situations.

This is the story of 2 a century of Presidential power. The law is the law, up until it isn’t.

Conclusion: Could It Happen Again?

Ultimately, this is actually what everybody ought to inquire about EO 6102. Could it occur once again? Could some unholy triune of the Fed, Treasury Department, and Elizabeth Warren channel the spirit of FDR and try a mass seizure of Bitcoin?

Nobody can actually understand, however the finest method I can respond to the concern is with the aid of the dependable Midwit meme (see below), which provides us 3 methods of anticipating the most likely results.

The Left Curve response is to do a fundamental pattern match in between 1933 and today. People had cash the federal government couldn’t manage; Government wasn’t pleased; Government took the cash. No more analysis needed: the Feds will take your things.

The Midwit response is to thoroughly compare and contrast the nature of Gold with regard to the American economy of April 1933, versus Bitcoin and today, and to compare the ruthlessly effective dictatorial powers of FDR and the bungling and inexperienced administrative oligarchy of 2024.

This isn’t precisely incorrect, as the Midwit never ever rather is. The specific issue for the federal government in 1933 was that practically every business agreement in the nation was backed by gold, as was the dollar, and a breakneck operate on Gold was threatening to implode the economy. None of these things holds true about Bitcoin. But the Midwit is never ever rather best either.

The Right Curve response (if I might humbly send), exists in this essay. The significance of the Executive Order 6102 story is not in the exactness of the example from Gold in 1933 to Bitcoin in 2024.

Rather, it is the nature of the legal power wielded by FDR to expropriate the home of American people, the universality and breadth of its usage by every President considering that, and the probability of it being utilized once again in the future.

History has actually revealed that the invocation of national emergency situations has, time and time once again, provided the United States federal government practically limitless capability to intrude on civil liberties.

What does the next national emergency situation appear like?

A mass flight to security from the United States dollar into the hardest possession ever understood? Could 175T of unfunded liabilities23 set off a devastating restructuring of American financial obligation? Or maybe another hot war or 3?

We don’t understand what the crisis will be; just that there will be one. As the state debases the currency at a speeding up rate, and its liabilities swell out of control, it will get desperate.

In late-stage Fiat, simply as in the Kingdom of Alice in Wonderland’s Red Queen, the state needs to run quicker and quicker simply to remain in the exact same location. And when the minute of crisis comes, the Right Curve forecast is easy: the Feds will take your things.

Only this time, it may be various. For the very first time, sovereign custody of Bitcoin has a opportunity at keeping personal wealth safe from public expropriation.

So to conclude, the lesson as constantly is: not your secrets, not your coins.

And see you in hell, FDR.


Executive Order 6102,

Shlaes, Amity, The Forgotten Man, Introduction

Shlaes, Amity, The Forgotten Man, Introduction

Mencius Moldbug, March 19 2010, The real election: a useful alternative for political modification,

List of national emergency situations in the United States,

The Rapid, 12 U.S. 155 (1814),

Proclamation 1354,

Trading with the Enemy Act of 1917,

The Secret Life of Statutes: A Century of the Trading with the Enemy Act,

10 Congressional Record — House, July 9 1917, 4842,

11 The U.S. Confiscated Half a Billion Dollars in Private Property During WWI,

12 Trading with the Enemy Act 1917,

13 Trading with the Enemy Act 1917,

14 Bank Holiday of 1933,

15 ‘Roosevelt’s Gold Program’,

16 FDR’s Second Fireside Chat,

17 First Inaugural Address of Franklin D. Roosevelt,

18 First Inaugural Address of Franklin D. Roosevelt,

19 Proclamation 2039,

20 Federal Reserve Bank of St. Louis,

21 Emergency Banking Relief Act,

22 New York Times,

23 Medicare and Social Security deal with $175 trillion deficiency, running the risk of future generations,

This is a visitor post by Julian Fahrer. Opinions revealed are totally their own and do not always show those of BTC Inc or Bitcoin Magazine.

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