allinvain

well, people will be people, so don't expect them to not gossip and spread misinformation. However, I still think that it would be better if e-gold were to pack their baggages and move offshore. There is nothing to gain from being US based! - other than perhaps some sort of "prestige" or legitimacy. I dunno, the point is that as Sharon said, Uncle Sam does NOT like competition. E-gold is a monetary system and therefore competes with the Federal Reserve system of fiat currency, which btw, prints money out of thin air.

As far as e-gold being used by scammers, lol, that's of course true, but I don't believe that government decree can ever stop scammers, this is just a fact of human nature that no law can completely eradicate. Anyways, I am sincerely hoping that either e-gold will resolve their misunderstanding with the US government and everything will be back to business-as-usual, or just get the heck out of the country and refuse to deal with US clients.

just my 2 e-gold backed cents

allinvain

You are absolutely right Sir! The US government says they are doing it in order to protect US Citizens from being scammed. But, has anyone thought about the moral consequence of this action. Has the government a right to tell you what to do with your money? Do they have a right to "protect you from the bad boogie man" and other such frivolous attempt at gaining power over YOUR lives under the false pretense of protection.

I think I speak for most of us when I say that we are all adults here and know what we are getting into and are prepared to deal with the consequences of our actions as mature adults DO. E-gold is NOT a threat to the US consumer, in fact it is his/her liberator as it provides a monetary system that has REAL VALUE - the us dollar does NOT.

I see these actions as just part of the long chain of actions taken by big government to completely dominate every little detail of the lives of citizens.

Thankfully the physical gold is owned by an offshore entity in a special purpose holding trust, otherwise they could technically confiscate that gold as well. Since the management side of e-gold is US based they can order further financial transactions within the e-gold system to be halted or certain accounts frozen, but I don't think they can "steal our gold" just yet. If I'm not mistaken that would be unconstitutional - I mean for the government to do so without a due trial etc..etc

I am a firm believer in the liberating potential of e-gold and other such gold-backed electronic currencies, and it really does pain me much to see the dream of economic freedom being destroyed or affected severely by government meddling.

I'm thankful I'm not a US citizen, that's all.

CalvinT

Every year it just gets worse and worse in the US, the sad thing is that most US residents can name the last six contestants on "American Idol" but hav no idea who is the president, Vice pres, etc.

Land of the free, held hostage by taxes and BS, and the majority are happy about it.


I hope they get something resolved as I was enjoying my little foray in the HYI world, it would be a shame to have it cut short so soon.

allinvain

Onshore where? legally registered? I don't know, I think that even if e-gold were to obtain whatever financial license (I think it's called a money transmitter license) necessary they would still have problems with the government. I think the root of the problem is that e-gold is a competitor to the fiat money system.

Here I must make a distinction. The US government (or any other government as a matter of fact) doesn't mind you owning gold as a COMMODITY, but once you start using this commodity (gold) as a form of money, you're asking for trouble.

Even though it is not unconstitutional to operate an alternative money system in the United States (look at the Liberty Dollar for an example), the powers that be still do not like it if you try!

Another important factor is that e-gold doesn't fill Uncle Sam's tax coffers. I know that e-gold's G&SR Inc. does pay taxes on their profits (I guess from omnipay and other such operations), but since E-gold Inc is registered in Nevis, they do not pay taxes on the profits they earn on spend fees. This of course is not to the linking of Uncle Sam.

I am just surprised the Dr. Jackson did not forsee this and took proper measures. I still think it was a bad idea to operate such a system in the United States.

As far as e-gold being registered in Nevis, yes this is true, but their management company operates out of the US, and their servers are also located in the US.

"G&SR, Inc continues to serve as the operator of the e-gold payment system. G&SR, Inc. also offers its own innovative set of hybrid currency exchange services, known as OmniPay."

"e-gold Ltd. Is a Nevis, West Indies company created to serve as the General Contractor responsible for performance of the e-gold Account User Agreement. e-gold under its charter is completely dissociated from the business risks relating to exchange. This clarity of roles further assures e gold's freedom from default risk and finality of settlement."

As you can see, G&SR is the operator, but e-gold ltd. Nevis is just an agent in carge of executing the Account User Agreement. BUT the e-gold bullion reserve special purpose trust holds title to the actual gold. What does that mean? that means that YOU own the gold, and the special purpose bullion reserve trust is just a trustee on YOUR behalf (the beneficiary).

Go here if you want to read the e-gold bullion reserve special purpose trust document:

http://www.e-gold.com/contracts/egold-spt-111899.htm

Ultimately the actual gold is safe, but that does us no good if the system we use to exercise financial transactions with OUR gold isn't working! Meaning, if G&SR has some sort of problem - legal or otherwise.

Now if the management side of e-gold was also located in a jurisdiction where undue duress is not applied to it, then surely the whole e-gold legal structure would work better - meaning OUR gold would be safer!

Simon

Paternalism is one thing we can all do without. I suppose it's just a reaction to the times we live in. Still, we will see what happens.

__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
|
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


Cut out the middle-men, keep 100% of your blog sales revenue with OIOpublisher - NEW

allinvain

Well, don't worry, your foray is not over as there ARE alternatives to e-gold

allinvain

Simon, you are right. No doubt it's the blow back effect from the 9/11 incident.

24oz

I think that the feds might be after some specific people/group and are trying to track them down by freezing the exchangers to get to the source, this is why probably they have freeze some exchanger’s accounts and not all(London Gold Exchange sais that they were not affected). Let’s think that they are after some “bad guys” and this “bad guys” have used 1mdc and icegold for example, so they have frozen these accounts to get to the source.
If they were after e-gold, e-gold would have been closed and ALL exchangers would have suffer it, as far as I know they have only frozen some exchanger’s accounts and all of them(icegold, omnipay..), except 1mdc are already back in business using other accounts.
I would not panic, looks to me that they are after something specific and not the e-gold system in general.

allinvain

24oz. I hope that you are right ...and yes, we should not panic yet...I remain optimistic about e-gold's future however.

24oz

Allin e-gold knew that was being closely watched by the government, I am sure that e-gold was ready for something like this. If they were at risk I believe that after last years feds visit they would have moved elsewhere.