Posted on 05/01/2012 12:33:55 PM PDT by Mikey_1962
I also remember when every Federal Reserve Note said This note is legal tender for all debts public and private, and is redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank.
And at the bottom its stated:
Will Pay To Bearer On Demand XX Dollars
It did not claim to be a XX dollars only that it was redeemable in dollars.
That was before Nixon.
Keep the good money, spend the paper for as long as you can.
They don’t HAVE to make it lagal - it already IS legal! The one thing you CANNOT do is countetrfeit US currency, but any group or state can make up their OWN currency, and many HAVE, over the years. It won’t be legal tender, but as long as people accept it, who cares?
No retailer is legally allowed to refuse fiat money as payment, and anyone paying would use fiat money rather than gold.
It’s a start. Eventually, it may work like barter. An ounce of silver for a tank of gas.
Planning ahead for when 0bama destroys the US and each state is on it’s own?
“Why the hell would anyone use precious metals for payments?”
Two things are occurring with this kind of law:
1) The states are giving the Federal Government and the Federal Reserve a vote of ‘no confidence’ in their monetary policies.
2) Just in case the US dollar goes into hyperinflation mode the states can demand that taxes be paid in inflation-proof gold or silver. I believe the more pragmatic states are looking at this aspect more than the first as their reason for doing this.
The way I read the Constitution, the states make gold and silver legal tender, and the federal government only has the power to weigh it, coin it, and establish a value for it.
True, the Legal Tender Cases did hold that the federal government could issue paper notes.
But a note is a promise to pay (in gold or silver). So maybe the old silver certificate dollars were constitutional, but to just print paper (i.e. a Federal Reserve Note) saying that the paper itself has value? I don't think so.
As tax rebel Irwin Schiff used to say (paraphrased), if I promise to pay you five elephants for painting my house, then once you've painted my house I owe you five elephants. So I can give you a note that you can redeem at some point for five elephants. But if I give you a piece of paper saying "This is five elephants," then I have given you nothing.
I just don't get how the federal government can Constitutionally substitute a piece of paper that has no intrinsic value behind it.
Clearly, the modern Federal Reserve Note is nothing more than the worthless currency that failed with the original Articles of Confederation, a problem that the U.S. COnstitution specifically tried to avoid.
They can't do that. Dollars are legal tender for all private and public debts. Besides,such a move by a state would be a back door method for confiscating gold and silver.
Seems clear to me.
Actually, it started under LBJ when the silver content was removed from US coinage in 1965. (The half dollar was reduced from 90% to 40% and then bupkis) Under Nixon we "officially" went off the gold standard and the gold and silver windows closed at the banks.
Personally I thing re opening the metals windows would go a long way to stabilizing the economy. if you could exchange fiat money for actual ounces of gold, silver and copper the metals would compete with the fiat currency and take that currency out of circulation therefore strengthening that currency. Unfortunately that would take that control away from the government and give it to the free market and they just don't want to give that power up.
BTW the root of the problem is in the article:
During a debate about the legislation in the state House of Representatives, one lawmaker admitted that she did not understand the bill — yet she said she opposed it anyway. Rep. Curtman responded by patiently attempting to explain some basic economic principles and why Missourians would benefit from competition in currency.
the public education system has been so pathetic in basic economics education that not even the so called elite elected officials understand what was once called common sense.
Perhaps that was the intention way back in 1913 though.
It is amazing to think people could have simply exchanged their savings for coins, put them in a vault, and they could be melted down at near today’s silver price...roughly 5 bucks for a quarter. So each dollar of coins put in a vault would net you $20 today.
FDR did just that with executive order 6102
Sure, they can do it.
US Constitution, Article 1, Secion 10:
“No State shall...make any Thing but
gold and silver Coin a Tender in Payment of Debts”
If you were a little older you would remember when nickels were silver as well. From 1942 to 1945 the Silver content was raised to 35% from 25% because there was a shortage of nickel during the war.
I don’t mind if the law allows the public official being forced to accept gold may also charge a few percent premium for exchange fees and shipping costs. After all, when they accept credit cards, nobody objects to paying a fee for the privilege.
“Will Pay To Bearer On Demand XX Dollars”
And yet there is no legal definition of the “dollar”. I recall that when Rep. Ron Paul (Patriot, Texas), asked the head of the Federal Reserve Corporation, Bernanke what the definition of a dollar was, he responded “well, I guess what a dollar will buy.”, or some similar tautology.
Yes, but that doesn’t say that a state may reject US legal tender and require taxes be paid in gold and silver. They can’t do that.
Excellent, Mikey_1962.
States are making their moves to resist the criminal fascist syndicate occupying Washington.
Yours is but one example.
In South Carolina, nearly 20 of Holder’s people are locked up in local jails and facing 20 years in prison. In addition - wait for this - a former felon was cleared by the sheriff and county prosecutor for grabbing his girlfriend’s gun and blowing away two sons of Barack (SOBs) who tried to burglarize his home.
“From 1942 to 1945 the Silver content was raised to 35% from 25% because there was a shortage of nickel during the war.”
Allow me to add that the nickel content of a nickel is worth more than 5¢. Ditto the copper penny.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.