Asset Protection BLOG - Mark Nestmann: Ruling by Decree: How Will President Obama Use his Authority to Issue "Executive Orders?"

One of the most important, yet least publicized, powers of the U.S. President is the authority to issue legally binding decrees, without the consent of Congress.

Using an instrument known as an executive order, the president may, at the stroke of a pen:

Freeze the U.S. property of any person, entity, or government
Eliminate the right of habeas corpus and bring accused political criminals before military tribunals for trial
Imprison or detain individuals or an entire class of people without trial
Impose national banking "holidays" closing all U.S. banks or restrict and ration currency withdrawals and the cashing of checks or drafts.
Shut down domestic stock and commodity exchanges
Investigate, regulate, or prohibit the importing, exporting, or holding of currency, securities, or precious metals
Impose punitive taxes on inbound or outbound foreign investments
Impose wage and price controls

In the 230-year history of the United States, presidents have used all of these powers. In just the last eight years, President George W. Bush has unilaterally frozen the assets of suspected terrorists, dramatically expanded surveillance of domestic communications, and detained hundreds of people without accusing them of any crime.

President-elect Obama campaigned on a platform of "change," but there is little assurance that he will be more judicious in his use of executive orders than George W. Bush. That's because in a crisis—or a perceived crisis—executive orders are a convenient way to demonstrate to the American people that their president is "doing something" to deal with the problem.

In the Bush administration, of course, the "problem" was the Sept. 11, 2001 attacks on the United States. President-elect Obama still faces the specter of terrorism, of course, but the unraveling economy presents an even greater challenge. And, especially if Congress doesn't go along with his domestic policy agenda, Obama may be tempted to draw on precedents set by previous presidents to "go it alone" via executive orders. For instance, in 1933, President Franklin D. Roosevelt issued an executive order that temporarily closed all U.S. banks. He issued another order that mandated the forced sale of all gold and silver held by U.S. persons.

The best that we can probably hope for is that Obama will use his executive authority to undo the worst abuses of George W. Bush's penchant to rule by decree. A few suggestions:

Set a firm deadline for closing the prison camp for unindicted detainees in Guantánamo Bay, Cuba
Order the U.S. military and all executive agencies to comply with U.S. treaty obligations, such as the Geneva Conventions and the Convention Against Torture.
Order U.S. intelligence agencies to comply with domestic laws regulating warrantless wiretapping and monitoring of electronic communications.

Still, while hoping for the best, it's important to be prepared for the worst:

Set up an offshore account if you haven't done so already. If you already have one, it wouldn't hurt to add to it if you can afford to so.
Keep enough cash on hand to pay for at least a month's necessities if U.S. banks close down. Store it securely at home or other private location, NOT in a safety deposit box. Also keep some "junk silver" and small denomination gold coins on hand. (But keep the bulk of your precious metals holdings offshore.)
Establish reserves of necessities, especially food and water.
Upgrade the physical security of your home.

It's hard to imagine why anyone would want to be president as the United States heads into what may be the worst economic downturn in its history. President-elect Obama made that choice, and I wish him the best. But I'm preparing for the worst, and you should, too.