Silver and Gold Money Forwarded in More U.S. States

The WealthCycles Staff
For the past 2,400 years a pattern has continually repeated in which governments debase and dilute their money supply until a point where the common psyche of the populace and the collective mind of a country begin to feel that something isn't right.
You probably feel that way right now.
When paper money becomes too abundant, and thus loses value, man always turns back to the precious metals. When the masses come rushing back, the value (purchasing power) of gold and silver increases exponentially.
During these events there is always an enormous wealth transfer, and it is within your power to choose whether it is transferred toward you, or away from you. If you choose to have it transferred toward you, then you must first educate yourself, and second, take action.

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:

2012: Washington, Idaho, Vermont, and Missouri introduced bills. In Missouri the legislation has already passed in their House.

2011: Iowa, Virginia, Montana, Tennessee, Minnesota, the Georgia House and Senate, North and South Carolina have introduced bills. The bill passed the South Carolina House.

2010: Colorado, Indiana and Montana introduced bills.

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.

O’Neil said he is largely trying to make a point and get “people to start thinking about what will happen if our money collapses. Also, I would like the state to think about the logistics of actually following the Constitution when it comes to gold and silver coin.

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:

Requires the treasurer of state … to conduct all monetary transactions of the state… through electronic gold currency accounts.
Provides that an electronic gold currency payment provider must use an electronic gold currency unit that constitutes a monetary unit of account and represents a claim of title to and ownership of a specifically defined, fixed weight of gold held by an independent specie vault. Specifies that a specie exchange with which an electronic gold currency payment provider associates must conduct the business of exchanging gold and silver coin, legal tender of the United States, and the electronic gold currency of the electronic gold currency payment provider.

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.

"A Utah citizen, for example, could contract with another to sell his car for 10 one-ounce gold coins (approximately $17,000), or an independent contractor could arrange to be compensated in gold coins," said Rich Danker, a project director at the American Principles Project, a conservative public policy group in Washington, D.C.

This language contained in South Carolina’s bill is standard to most of the bills:

In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System, for which the State is not prepared, the state's governmental finances and private economy will be thrown into chaos, with gravely detrimental effects upon the lives, health, and property of South Carolina's citizens, and with consequences fatal to the preservation of good order throughout the State
Whereas, South Carolina can avoid or at least mitigate many of the economic, social, and political shocks to be expected to arise… only through the timely adoption of an alternative sound currency that the state's government and citizens may employ without delay in the event of the destruction of the Federal Reserve System's currency;
Whereas, all gold and silver coins of the United States are designated "legal tender" under Title 31, United States Code, Sections 5103 and 5112(h)

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!

Whereas, pursuant to Article I, Section 10, Clause 1 of and the Tenth Amendment to the Constitution of the United States, each state must make gold and silver coin a Tender in Payment of Debts;
Whereas, the Supreme Court of the United States has ruled that the states may adopt whatever currency they desire for the purposes of performing their sovereign governmental functions, even to the extent of adopting gold and silver coin for those purposes while refusing to employ a currency not redeemable in gold or silver coin that Congress has designated "legal tender."

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:

…to secure property rights sound money is essential. Gold and silver currency retains earned wealth in the hands of the people and has provided civil societies with a fair, honest, and reliable medium of exchange for over six thousand years.
Competitive currencies of gold and silver provide greater security to the people of Washington state in protecting their property and other assets from paper currency inflation.
The absence of gold and silver coin wrongly exposes the citizens, businesses, and other residents of Washington state to the chronic depreciation of the legal tender fiat paper federal reserve note currency and significant losses in purchasing power which amount to the incremental confiscation of private property without just compensation.

Powerful.

The due process clause of the fifth Amendment to the United States Constitution, and Article I, section 3 of the Washington state Constitution, both ensure the protection of life, liberty, and property.
It is the intent of the legislature that gold and silver used as legal tender are treated in the same manner as United States currency for taxation purposes. The legislature intends to provide a choice of United States constitutional currency of gold and silver and does not intend to compel a person to tender or accept gold or silver.

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.”

“We have leveraged our debt-based currency to the hilt and the die is cast,” said Republican Rep. Matt Shea, a co-sponsor of the Washington bill and a military veteran who supports honest money. “The Federal Reserve is faced with the position of having to further inflate our currency or have the system start to disintegrate.”

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.

“Sound money is freedom,” Rep. Shea explained. “The free-market is about competition, and allowing competing currencies is just another extension of that time-honored principle.”

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:

Ending the Federal Reserve can be accomplished in several ways. One is if enough people stop using the system. Introduction of sound money at the state level will effectively nullify the Fed’s monopoly over our currency. You can help that process along by refusing to store your hard earned savings in their fiat currency..

I’m well into my second decade as a property professional. As both an investor and developer myself I talk to property investors every day. One of the things I’ve observed over the years, which I know can frustrate clients no end when trying to select the right property, is the difficulty of comparing apples to apples.
Unfortunately, sometimes developers, builders and agents can engage in some misleading advertising which can confuse clients and leave them uncertain about what they are really getting for their money. This can often be deliberately designed to prevent someone from making a side by side comparison of two different offers so they can work which one is most suitable for them.

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