What has been targeted is the very medium through which we trade with other nations and conduct commerce with one another—the medium through which our labors are rewarded, our debts are repaid, our tables are laid, and our children are secured medicines for their ailments.
What is at risk is no less than the almighty dollar itself.
Coordinating their chicanery, countries that wish this nation ill have played on the cowardly compliance of our allies. In the last ten days, a sequence of carefully timed financial dominoes were toppled—designed to raise the cost of financing our national debt, which would translate into you the American taxpayer keeping less of your hard-earned income. Our currency was also sabotaged on the international exchange markets. Most perfidiously of all, world leaders who resent the power, prestige, and success of our great nation have cobbled together the so-called “bancor”—an artificial, pretender currency with no history as legal tender.
Make no mistake. The bancor is not intended as a harmless alternative to the dollar. It is meant to replace the dollar. In a move every bit as threatening as raising a gun to our heads, we have been informed that the crops and raw materials on which we rely for our daily lives and livelihoods must now be traded internationally in bancors. A gesture of exceptionally high-handed insolence: the United States Department of the Treasury has also been apprised that American bonds held by foreign investors must henceforth be redeemed in bancors, at an unfavorable exchange rate capriciously chosen by an International Monetary Fund gone rogue. American bonds sold to foreign investors must henceforth be denominated in bancors—which is a challenge to our very sovereignty as a nation.
Ironically, the parties behind this organized fiscal coup immediately suffered from it. The American dollar is the lifeblood of international banking, and the backbone of financial markets around the world. That is why, as most of you know, we suspended trading on the New York Stock Exchange last week to prevent precipitous loss of wealth. But trading has also been halted in the wake of the same shock to the system in London, Paris, Berlin, Moscow, Hong Kong, and every other major stock exchange across the globe. International finance is holding its breath. As with every other crisis for more than a hundred years, the world waits for America to act. And this brave country never sustains insult without reply.
Right before addressing you, the American people, this evening, I convened an emergency session of Congress. Almost unanimously, your representatives passed a bill deeming that, until further notice, for American citizens to hold bancors, either onshore or within the confines of our financial system, shall from this point onward be considered an act of treason. In the interest of preserving not only our present prosperity, but our future prosperity—in the interest of maintaining our integrity, our capacity to hold our heads high as a nation—Americans and American entities are also forbidden from trading in bancors abroad.
For the time being, and only for the time being of course, capital above the amount of $100 is not to leave the country. These controls are temporary, their duration destined to be brief, and they will be lifted the moment that economic order is safely and securely restored.
As with military confrontations, fiscal warfare demands weaponry, and the fashioning of weaponry requires sacrifice. As we mobilized our forces and our industries to defend the cause of liberty in World War Two, so must we mobilize our resources to defend our liberty today. Rest assured that the greatest burden of this sacrifice will be borne by the broadest shoulders.
Using the powers vested in your president by the International Emergency Economic Powers Act of 1977, I am calling in all gold reserves held in private hands. Gold-mining operations within our borders will be required to sell ore exclusively to the United States Treasury. Gold stocks, exchange-traded funds, and bullion will likewise be transferred to the Treasury. In contrast to Franklin Delano Roosevelt’s gold nationalization of 1933, when FDR made his bold bid to rescue our suffering nation from the Great Depression, there will be no exceptions for jewelers or jewelry. All such patriotic forfeitures will be compensated by weight, albeit at a rate that does not reflect the hysterical inflation of gold stocks in the lead-up to this emergency. Hoarding will not be tolerated. Punitive fines of up to $250,000 will be levied on those who fail to comply. Retaining gold in any form beyond the deadline of November 30, 2029, will thenceforth be considered a criminal offense, punishable by no less than ten years in prison.
All gold exports from our shores are henceforth prohibited. In retaliation for outside agitators’ attempts to fray the very fabric of our flag, all foreign gold reserves currently stored with the Federal Reserve are hereby confiscated, and become the property of the American government.
Lastly: it is the intention of a conspiracy of foreign powers to yoke the government of this illustrious land with an intolerable and infeasible encumbrance from the interest on its debt. That debt was borrowed in good faith, and in due course, under any but the most extraordinary circumstances, would have been repaid in good faith. But when our probity is returned with malice and betrayal, continued good faith counts only as credulity and weakness. Both sides need to honor an agreement for any contract to remain in force. What’s more, this great country will not so honor its obligations as to destroy its very existence in the process. A nation conceived in liberty cannot conduct its daily business on its knees.
As of this evening, myself, the secretary of the Treasury, and the chairman of the United States Federal Reserve have declared a universal “reset.” In the interest of preserving the very nation that would meet its obligations of the future, we are compelled to put aside the obligations of the past. All Treasury bills, notes, and bonds are forthwith declared null and void. Many a debtor has wept in gratitude for the mercy of a wiped slate, the right to a second chance, which for individuals and corporations alike all fair-minded judicial systems like our own have enshrined in law. So also must government be able to draw a line and say: here we begin afresh.
Thus let us strike into the future, our step lightened, our hearts gladdened—confident in the endurance of the greatest country on earth. God bless you. And God bless the United States of America. Good night.
The moment it was over, the address was available all over the web, but sometimes too much access discouraged you from taking advantage of it; all urgency evaporated. So Florence was content for Willing to summarize the speech—with remarkable thoroughness for a thirteen-year-old—as she hung out the wash in the utility room off the kitchen. That low-water cycle always left the light loads dingy.
“That’s a lot to digest.” Florence eyed her son, at attention beside the washer, arms straight, hands flat to his sides, dark eyes burning forward, quite the little soldier. She’d no idea how she’d raised such a sober-sided boy, ready to take on the weight of the world at a scant eighty-six pounds. “You’re not worried, are you? You look worried.”
“I’m worried,” he reported.
“Listen.” Abandoning the socks in the drum, Florence knelt more than need be with his height at last shooting up. “From what you’ve told me, we’ve nothing to worry about. You see any gold lying around that we have to give the government? Even if we had some, they’d pay us for it, that’s what you said.”
“If the government can make us give them anything they want, what else can they make us give them? If they said they need all the dogs, would I have to give them Milo?”
She laughed. “President Alvarado is never going to take Milo. He’s a nice man. Esteban and I voted for him, remember? And that newfangled money, well—I wouldn’t know a ‘bancor’ if it bit me on the butt. Do we ever take ‘bancors’ to Green Acre to buy cereal? No. So no one’s going to arrest you, or Esteban, or your mother for carrying around some nonsense currency that really has to do with complicated financial dealings between countries. As for this … ‘debt renunciation’?”
“That’s what the commentators called it.”
“Off the top of my head, I bet that ‘reset’ you told me about