Posted on 02/22/2021 12:45:11 PM PST by amorphous
A bill introduced in the Kansas House would recognize gold and silver specie as legal tender and repeal all taxes levied on it. The legislation would pave the way for Kansans to use gold and silver in everyday transactions, a foundational step for the people to undermine the Federal Reserve’s monopoly on money.
The Federal Reserve is the engine that drives the most powerful government in the history of the world. Ron Paul popularized the slogan “End the Fed,” but Congress is nowhere near abolishing the central bank. It can’t even come up with the will to audit the Fed.
Even though state action can’t end the Fed, there are steps states can take that will undermine the Federal Reserve’s monopoly on money. By passing laws that encourage and incentivize the use of gold and silver in daily transactions by the general public, policy changes at the state level such as the Kansas Legal Tender Act has the potential to create a wide-reaching impact and set the foundation to nullify the Fed’s monopoly power over the monetary system.
A coalition of four Republicans introduced House Bill 2123 (HB2123) on Jan. 25. The legislation would make gold and silver legal tender in the state, recognizing it as a medium of exchange for the payment of debts and taxes. In effect, gold and silver specie would be treated as money, putting it on par with Federal Reserve notes in Kansas.
Under the proposed law, “Legal tender” means a recognized medium of exchange for the payment of debts and taxes. Specie legal tender would be defined as:
(a) Specie coin issued by the United States government at any time; or (b) any other specie that a court of competent jurisdiction, by final and unappealable order, rules to be within state authority to make or designate as legal tender
By allowing the court to designate additional specie to be used as legal tender, Kansas could free its citizens from potential supply constraints imposed by the use of only United States minted gold and silver coin. More importantly, the people of the state of Kansas would be able to define what specie is considered constitutional tender, further distancing themselves from potential control of their competing currency by Washington D.C.
Practically speaking, the passage of HB2123 would allow residents to use gold or silver coins to pay taxes and other debts owed to the state. In effect, it would put gold and silver on the same footing as Federal Reserve notes.
HB2123 would also repeal property and capital gains taxes on gold and silver.
“No specie or legal tender shall be characterized as personal property for taxation or regulatory purposes.”
Passage of this bill would build on a foundation set in 2019 when Kansas repealed the sales tax on gold and silver.
Kansas could become the fourth state to recognize gold and silver as legal tender. Utah led the way, reestablishing constitutional money in 2011. Wyoming and Oklahoma have since joined.
KNOCKING DOWN BARRIERS
Taxes on gold and silver erect barriers to using gold and silver as money by raising transaction costs. HB2123 would exempt gold and silver bullion from state capital gains taxes. Passage of this legislation would eliminate a barrier to investing in gold and silver. It would also make it more practical to gold and silver in everyday transactions, a foundational step for people to undermine the Federal Reserve’s monopoly on money.
In effect, states that collect taxes on purchases of precious metals act as if gold and silver aren’t money at all.”
Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35 cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what South Carolina’s capital gains tax on gold and silver bullion does. By eliminating this tax on the exchange of gold and silver, South Carolina would treat specie as money instead of a commodity. This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money.
“We ought not to tax money – and that’s a good idea. It makes no sense to tax money,” former U.S. Rep. Ron Paul said during testimony in support an Arizona bill that repealed capital gains taxes on gold and silver in that state. “Paper is not money, it’s fraud,” he continued.
LEGALIZING THE CONSTITUTION
Passage of HB2123 would effectively legalize the US Constitution in Kansas.
The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” Currently, all debts and taxes in South Carolina are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress or with coins issued by the US Treasury — very few of which have gold or silver in them.
The Federal Reserve destroys this constitutional monetary system by creating a monopoly based on its fiat currency. Without the backing of gold or silver, the central bank can easily create money out of thin air. This not only devalues your purchasing power over time; it also allows the federal government to borrow and spend far beyond what would be possible in a sound money system. Without the Fed, the US government wouldn’t be able to maintain all of its unconstitutional wars and programs.
Passage of HB2123 would reestablish gold and silver as legal tender in the state and take a step toward that constitutional requirement, ignored for decades in every state.
It would also begin the process of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the state and local levels, and setting the stage to undermine the Federal Reserve monopoly by introducing competition into the monetary system.
Constitutional tender expert Professor William Greene said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.
“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”
Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state-by-state level is what will get us there.
Humankind has a knack for creating existential threats to itself for some reason (e.g., government, money, nuclear weapons, electricity, internet, etc.). Some of which, these days, life itself depends upon its existence.
Especially old Freepers.
L
“But in 2021 shiny rocks are not the answer.”
Electrons which can vanish the second the power goes out certainly aren’t.
L
People would need to know a lot more about coins.
As far as purity and fakes, there are devices that can determine the metal based on unique conductivity.
Well, no Lurker, there's 31.1 grams to the ounce of silver. You gonna call me names now?
That’s a Troy ounce. Easy enough to convert to avoirdupois. (Look it up).
L
During the Civil War, Salmon P. Chase had printed lots of Greenbacks and had them declared the equivalent of legal money.
A few years later, Salmon P. Chase now on the SCOTUS, declared ONLY GOLD AND SILVER as legal money.
Only if they are REAL SILVER quarters, dimes, half dollars, and dollars.
Of course.
L
Hehe, I sort of did the reverse. Held a gold ETF for seven years as a defensive investment in my Roth IRA. I am typically pretty aggressive, so I just wanted something enough to fund “tickets on the last plane out” if it came to it. After seven years it was down 40% and I knew I was wasting my time.
Switched into GBTC in 2015 and got out in mid-2017 with a 1800% gain. But only because I was launching a self-directed IRA which then gained another 1000% before the peak in December.
I got into crypto in 2014 with a few thousand $/year invested from a middle-class income. By the end of 2017 I was founding one of the first crypto-endowed private charitable foundations. (Of course it lost 90% the following year, but things are back better than ever now. ;-)
Crypto is a wonderful tool for resisting leftist, totalitarian government and the surveillance state if used properly. And many of the projects in the crypto space are helpful to our cause. For examples, Presearch (presearch.org) which provides alternatives and a way to get away from the bias and censorship at Google, and Basic Attention Token (BAT) and the Brave web browser. And then there is Civic, which protects privacy while providing a digital identity that could be just what we need for honest elections and similar needs.
Wrong on several levels.
First, one major problem is that Congress hasn't SET the value. Not since the US was taken off the gold standard, that is.
Second, problems began with printing more dollars than there was gold enough in the treasury to back the paper.
Third, the Segway to taking us off the gold standard was the dilution of the content of our coins in 1965.
Interesting. Hope more states will do this...
Academic at this point.
Even the old 95% copper penny has more value than the copper clad zinc rounds we have for pennies today.
I used to get a piece of candy for a penny as a kid. Now I get one piece for a nickel.
Could I get a piece of candy for a penny again using an old 95% copper penny? See? The face value set by Congress is a penny. It's metal composition is its real value now. Vendors should set the exchange rate.
(rare coins of high numismatic value exempted)
My concern is a means of using real coins in today's market place, especially pre-1965 coins.
For anyone following the conversation...THE LAW!
Sounds like somebody has been to a pawn shop.
I was correcting myself after the light went on. You're way ahead of me, and most others, on this. Kudos for posting the law. There is one issue I see. That is trying to use various substances (gold, silver, copper, ...) for the same denominations.
I don't see an issue using various substances as money, just trying to use them for some arbitrary denomination creates a problem with value. The value of multiple elements will vary in a free market environment.
Instead of establishing a national denomination, i.e., the dollar, the yuan, the pound, let us use mass by element. Say 1 ounce or 28.35 grams of gold eagles/silver eagles (in the US), etc. Other countries could call them Maple Leaves, as long as we use common masses and purity - grams probably.
Further, markets must set the value of the elements, not government or the money changers.
Anything other than physical will need a third-party trust arrangement. Governments prove through history to be utterly unreliable after a while. Eventually even hiding what they have on hand from their people.
When you can schedule our first meeting with the world's leaders, let me know so that we may begin to revamp the world's monetary system! :)
Nobody is saying it will be an easy solution.
Easy and simple aren't synonymous.
https://www.zerohedge.com/markets/silversqueeze-hits-london-slv-warns-limited-40 hunt brothers high for silver would be $160 today silver kills 600 human pathogens without toxicity...makes electric car batteries 500% more efficient..needed for solar panels it’s short 184-1 https://www.globenewswire.com/news-release/2021/02/09/2172210/0/en/THC-Therapeutics-Has-Begun-the-Process-of-Acquiring-A-Significant-Amount-of-Physical-Silver-Bullion.html .
“Easy and simple aren’t synonymous.”
Been saying this for years.
Glad to see someone else around here gets it.
L
Neither is survival. What we have now represents an existential threat to civilization.
Just do it!
Best regards and wishes for great luck in all of your endeavors!
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