The passages above from Mike Maloney’s Guide to Investing in Gold and Silver paint the big picture. The details show the progress towards the eventual critical mass.
The most important of details is the recent occurrences of individual states and their citizens choosing to ignore the unconstitutional federal imposition of “money”—paper notes (known as dollars)—over which the U.S. Congress has granted the privately owned Federal Reserve Bank a monopoly.
As our readers know, the state of Utah removed the tax on silver and gold money, declaring it legal tender in the state to act as alternative money. We wrote on April 4 of this year that Utah’s Gold and Silver Back-up Plan May Catch On As Doubts About Dollar Grow. This has been the case, doubts have grown, and more states have taken action by moving forward bills that remove tax and apply legal tender status to silver and gold money, or exploring use of silver and gold money as an option.Here is a review:
State representatives are elected officials representing the view of their constituents. The fact that states are enacting laws that view money in a way that contradicts central bankers and the central planning establishment is big news.
Recently Montana representative Jerry O’Neil wrote a letter to Montana Legislative Services asking to be paid in silver and gold coin. “They might just go to the coin shop and get me gold and silver coins, or they might say I have to do it myself,” O’Neil told the Daily Inter Lake.
Most of the bills in various stages of progress through state legislatures contain similar language. Some have provisions for triggering silver and gold transactions using present-day networks we are all familiar with, such as this copy from the Indiana Honest Money Act:
So that is how the Utah Depository would be able to vault precious metals: you swipe your debit card anywhere in the world, and your holdings are debited. This does not preclude you from simply going and picking up your money, as the above clause would mandate.
Nor would it preclude competition in this arena, where vaults could lay out the red carpet, displaying your segregated and guarded holdings using online live video feeds, and facilitating shipped delivery or local pick-up.
Under the law in Utah, the coins—which include American Gold and Silver Eagles—are treated the same as U.S. dollars for tax purposes, eliminating capital gains taxes, writes CNN.
This language contained in South Carolina’s bill is standard to most of the bills:
The copy (bolded above), common to many of the bills, is an important reason why Mike Maloney prefers U.S. minted coins. Hang with the legalese, it gets better!
Another modern federal Supreme Court ruling either implicitly, or explicitly (above), recognizing the state’s right to nullify federal rules that are not constitutional.
Not that the Supreme Court actually has the right to be the sole arbiter of federal legislation; the idea of judicial review was made up (and apparently not respected by the Supreme Court itself) by former Chief Justice John Marshall, despite states retaining all powers not delegated to the central, concurrent, federal government. See Nullification Backed by Federal Supreme Court Decision, States Reaffirm for more.
Of course the representatives of the individual states did not ever hold the belief that the new federal government would decide its own cases. That is quite silly, and one man and some precedent do not refute the Constitution. There is plenty of precedent to the contrary.
It would not be not necessary to repeal the Federal Reserve Act. Fair competition and the freedom of choice would reveal citizens’ preferences.
None of these bills conform to federal policy; the final federal impediments to fully implementing the alternative currency laws are:
- Federal tax on money
- Federal legal tender law (can't pay the Internal Revenue Service in gold and silver)
- Federal regulation preventing present day electronic payment systems (MC, VISA) from referencing and debiting non-bank entities such as the Utah Depository.
Many states are just ignoring these impediments and moving forward. After multiple states have adopted silver and gold as money, they could petition the federal government to remove the tax on gold and silver money. Here is language from the Washington bill:
A co-sponsor of the Washington legislation, Rep. Jason Overstreet, told The New American that “We have strayed so far from the constitutional basis of money, that it can be a difficult conversation… However, with even a short primer on the subject, even young children begin to understand the intrinsic value of gold and silver versus the paper they receive as allowance.”
Exactly. That is why history shows us that governments and central banks may take breathers from printing and expanding the currency supply, but expansion inexorably continues—it is the only way the Fed’s monopoly on money can be preserved.
Yes, the federal Free Competition in Currency Act Gives Americans Freedom of Choice. The act will continue to be introduced in Congress until it is advanced, and, as states move forward, so too will the push for a constitutional federal law. Rep. Shea is a military veteran, and it is quite powerful to consider that Senator Ron Paul (author of the federal legislation referenced above) received more campaign donations from active military than all of his presidential competitors… combined.
On August 2, Paul reminded us of the fact that “Mexican workers can set up accounts that are denominated in ounces of silver, and can take delivery of that silver whenever they want, tax-free. In Singapore and some other Asian countries, individuals can set up bank accounts denominated in gold and silver. Debit cards can be linked to gold and silver accounts so that customers can use their gold and silver to make point of sale transactions, a service which is only available to non-Americans. In short, Americans have far fewer options to protect their wealth than citizens of many foreign countries do.”
As Mike Maloney reminds us in the introduction to this article, knowing the facts, and taking action, are both necessary to gain from the greatest wealth transfer in the history of the world. Paul tells you how to take action: