US State Legislatures move to Precious Metals as Legal Tender

[Y_Participant 4591]

US State Legislatures move to Precious Metals as Legal Tender

The States have realised that protection from the demise of the Fed is essential and since 2011 have been taking small but important steps to Sound Money. That is all changing this year.

Idaho, Arizona and Utah are looking at allowing gold. silver etc to circulate as legal tender and have house bills in various stages of introduction to achieve this end in 2017.

Idaho: House Majority Leader Mike Moyle introduced House Bill 206 (H206) on 23 Feb. 2017 to normalise circulation of precious metals as legal tender.

Utah :Rep. Ken Ivory (R-West Jordan) introduced House Bill 224 (HB224) on 27th Jan. 2017. The legislation would add several provisions to state law designed to encourage the use of gold and silver as legal tender.

Arizona : Rep. Mark Finchem (R-Tucson) introduced House Bill 2014 (HB 2014) on 9th Jan 2014 which now with the State Senate, having already passed Congress.

Meanwhile, Alabama, Tennessee, Virginia, and Maine are working to eliminate sales taxes on gold and silver bullion.

Oklahoma, Utah, Texas, Idaho, and nearly 20 other states already exempt precious metals from sales tax.

Utah and Oklahoma are reaffirming the US Constitution’s designation of gold and silver as legal tender (but stop short of assisting them to be used as legal tender in the financial system)

The State of Texas is proposing that digital currencies like bitcoin become legal tender. Rep. Matt Schaefer (R-Tyler) introduced House Join Resolution 89 (HJR89) on 2nd March 2017. If passed, the resolution would place a constitutional amendment on the ballot recognizing the right of the people to own, hold, and use a mutually agreed upon medium of exchange, including cash, coin, bullion, digital currency, or privately issued scrip.

If passed by the legislature, the proposed amendment would go before the voters in Nov. 2017.

Professor William Greene, an expert on constitutional tender, noted that these proposals would introduce competition with the Federal Reserve. “By introducing competition in currency through ‘recognizing the right of the people to own, hold, and use’ bullion such as gold and silver coins, passage of the amendment would take one more step toward the ultimate goal of ‘nullifying’ the Federal Reserve system,” he said.

If a full version of the Constitutional Tender Act were passed into law, then not only would the use of Federal Reserve Notes by the State be made illegal (because they are in violation of Article I, Section 10 of the U.S. Constitution); the use of legal tender U.S. gold and silver coins would be encouraged among the general population as well, along with any other currency that parties mutually consent to using.

This would have three immediate effects:

the elimination of FRNs from State transactions;

the requirement of individuals and businesses to cease using FRNs in their transactions with the State; and

(like HJR89) the introduction of competition in currencies among the general population.

With all three effects working in tandem, the use of low-value pieces of paper issued by the Federal Reserve will become increasingly irrelevant, and an emaciated Federal Reserve system can much more easily be brought to an end — in essence, a de-facto “nullification” by the State of the Federal Reserve itself.

Citiation
Demand for sound money (declaring gold, silver, other metals as legal tender) rising in US States…
https://www.linkedin.com/pulse/utah-getting-ready-dump-fed-dollar-make-gold-silver-legal-pharms-phd

[PistolPeteParticipant 27143]

Excellent find Yumbo; I had no idea this kind of thing was going on…and I agree it is a shot across the bow to the Fed. It makes me wonder what their response is going to be. They will not take a challenge to their power lightly.

[Y_Participant 4591]

Hi Pete

The Hon Dr Ron Paul (one of my heroes) has been working extensively at state level to get the changes. The states – especially those from the south – have always had very divided views on what was to be used as real money.

After the crash of 2008 it was clear to some of the actually rich states that were being ripped off by the Fed (extremely badly) that something has to be done. They have been working very hard since then – lots of disappointments.

If Arizona goes gold so will the other states. It only takes one to break the door.

[PistolPeteParticipant 27143]

Agreed, what sucks about this is that if it works and comes to pass I’m going to be given a lot of crow pie to eat from the guys long advocating buying gold silver!

[Y_Participant 4591]

Well – sorry about that. Our views depend on a lot of things so it happens I guess. No probs bro.

[BlacqueJacqueShellacqueParticipant 6890]

PistolPete wrote:

It makes me wonder what their response is going to be.

Unfortunately, war. They will cause so much confusion and despair that the people will beg the perpetrators for the solution.

Thanks for the read Yumbo. Thumbs up Pete.

[Repulsive RalfParticipant 356]

Lets hope they set the price of precious metals by dividing all the worlds debt into the existing precious metals.

[Y_Participant 4591]

Repulsive Ralf wrote:

Lets hope they set the price of precious metals by dividing all the worlds debt into the existing precious metals.

The way it works is that gold will be the legally accepted arbiter for any paper currency (or possibly even blockchain) used as a proxy. Silver will be pegged against gold by the state and from time to time the peg value can be tweaked.

In reality gold should be set against the actual value of the currency in circulation (either M0, M1 or M2). There will also be a fractional reserve ratio that allows creation of currency at a multiple of gold assets in storage. This has been calculated by Jim Rickards as between FRN $10 000/oz and FRN $50 000 / oz.

The problem is to create an alternative gold-backed system that works in parallel and outside the existing FRN banking system. This can only be done by legislation. Once the state has certain laws in place I am very sure the entrepreneurship of the American people will create the alternative model very quickly.

This is what the bankers are afraid of. Their power stems from the congressional legality of the FRN (despite the Constitution) and the ability to refuse other types of legal tender without penalty. This will hopefully change very soon.

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