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 will keep our taxes down. That’s good for us. That way we keep more of my salary.”
“The president borrowed money from people and now won’t pay it back. That doesn’t seem careless. That seems kind of boomerpoop.”
Florence stood briskly and spanked her hands. “First off, this president borrowed hardly anything. He inherited the debt from other presidents, who couldn’t stop rescuing jerkwater countries that only ended up hating us for our helping hand. Also, most of that money is from the Chinese, who are big cheats, and the real boomerpoops, since they almost certainly knocked out our whole country’s internet five years ago. Fuck them.”
“Nobody caught them. Nobody came up with any proof.”
“That makes the operation even nastier. Not owning up? But you’d have to be an idiota not to know who did it.” Florence caught herself. “Sorry, I didn’t mean you’re stupid.”
“But the Chinese won’t like this. If they could take out the internet before, they could do it again.”
“No, they can’t. All former vulnerabilities have been secured.” Florence was uncomfortably aware of reciting this received wisdom with a slight singsong.
“That’s what people say. That doesn’t mean it’s true.”
“Willing, I’ve no idea how you got to be such a cynic by the age of thirteen.”
He glowered. “They could do worse than knock out the internet.”
“Stop it. You’re letting your imagination run away with you. The point is, none of what you told me the president announced on TV has anything to do with us, okay?”
“Everything has to do with everything else,” he announced grimly.
“Where did you get that?”
“From the universe.”
“Jesus, my son’s become a mystic. Lighten up. Let’s have some ice cream.”
Given that he was eternally free to watch the other two-thousand-some channels streamed en español, Florence knew better than to believe that Esteban was watching the second delivery of the address in Spanish to “maintain his fluency.” Still jubilant over Dante Alvarado’s narrow victory in 2028, he was basking. During this first honeymoon year, for hardcore supporters like Esteban, America’s first Lat president could do no wrong.
The other slightly-less-than-half of the country was if anything more sullen than in 2008, but also more prone to keep their mouths shut. This time around, no dyspeptic “birthers” could object that the Democrat was born outside the country. Its passage greatly assisted by Arnold Schwarzenegger’s failed bid for 2024, the Twenty-Eighth Amendment nullified the arcane constitutional requirement that presidents be born on American soil. (Florence wasn’t the only one who attributed the Terminator’s surprise defeat to the eleventh-hour incumbency gimmick of nominating Judith Sheindlin—a.k.a. “Judge Judy”—to the Supreme Court. The Court’s sessions had been livelier since, and shorter.) Dante Alvarado being unabashedly born in Oaxaca had helped to get him elected. The fact that many DC press conferences and congressional debates were now conducted in Spanish was an enduring source of pride for Esteban’s community. Although some Democrats regarded Alvarado’s decision to deliver his inaugural address in January exclusively in his native language as gratuitously provocative, Florence didn’t care. The broadcast of that soaring, historic speech on the Washington Mall had provided a welcome opportunity to brush up on her own Spanish.