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JPMorgan Chase Increases Its Silver Holdings Tenfold!

What Does JPMorgan Know That We Don’t?

  • In 2012, JPMorgan held 5 million ounces of SILVER.
  • In just 3 YEARS, they’ve increased that amount to 55 MILLION OUNCES!
  • CEO Jamie Dimon wrote to shareholders, “there ‘WILL BE’ another crisis, and its ‘IMPACT’ will be felt throughout the financial markets.”
  • Historically, SILVER has been a hedge against volatile stocks, government debt, and geopolitical tensions.
  • Currently, silver is trading BELOW its all-in production costs.
  • WARREN BUFFETT famously bought 30% of the above ground silver supply in 2002 when prices were similarly low and DOUBLED his money 2 years later!

While you might not time the market as well as Buffett has, you won’t want to speculate, just hold precious metals in coin form for long term preservation of wealth. Don’t think the Wall Street gurus don’t do the same—they just don’t want competition to drive up the price before they buy!

Who is the largest individual holding gold for preservation of value against depreciating currency?

GEORGE SOROS!

Isn’t it time you considered owning physical silver?

This is not intended to provide investment advise or endorse any firm or individual for investment consultation or purchase. Gold and silver investments are subject to volatile movements in price and cannot be depended upon for profitable speculation.

AZ-Senate

Arizona Legislature in session

Please help pass Arizona’s SB 1141 legal tender; taxation; regulation and SB 1423 gold and silver coins; taxation bills; Sen. David Farnsworth (R), a constitutionalist, is the sponsor. Both of these bills passed the Senate Financial Institutions Committee; we thank these forward thinking legislators who voted for Progress.

Now it must pass in the full Senate.

These bills remove the state capital gains tax (as 30 other states have done) and define constitutional legal tender to establish gold and silver coin for use in the marketplace as currency. If someone chooses to sell one’s precious metals holdings, one will choose a non-tax state and not Arizona. We lose the business; let’s keep it here.

Although the U.S. Constitution already legalizes gold and silver coin as tender, this brings Arizona into compliance with U.S. Code for coinage used in commerce, and makes Arizona competitive with other states.

You can help by a quick phone call and/or email. Comments to Gov. Doug Ducey’s office encouraging him to sign the bill can be made at http://azgovernor.gov/governor/form/contact-governor-ducey.

We know these bills are necessary to help Arizona prosper! We need as much testimony to legislators and the governor’s office as we can obtain.

Call or email the bill sponsors as well! The complete list of legislators can be found at Senate and House.

Please forward this to those of concern and contact me if you have any questions; we surely can benefit from your support and promotion.

For more information see →www.ArizonaSoundMoneyAct.Wordpress.com

The working families in America suffer from the hidden curse–depreciation of their hard work held as paper currency medium of exchange and savings.

The Founders of these separate but United States cried ‘Foul’ on the state or state approved banks issuing paper notes instead of specie (gold and silver coin) because, they claimed, such was too easily subject to abuse and dishonest manipulation for the benefit of the issuer. History backed them up at the time, and has borne them out since.

To see a brief story of how Labor Unions were the loudest opposition to paper ‘money’ read the PDF, Legal_Tender_Presentation_2016.pdf

This presentation was given to the Senate Financial Institutions Committee in support of Arizona’s SB 1141 legal tender; taxation; regulation and SB 1423 gold and silver coins; taxation bills.

Call or email your support to keep more of your hard-earned labor/savings intact. Contacts are listed in the previous post.

→Arizona Strikes Gold with SB1141 and SB14232←

Please help pass Arizona’s SB 1141 legal tender; taxation; regulation and SB 1423 gold and silver coins; taxation bills.

They will be heard in the Senate Financial Institutions Committee TOMORROW February 10, 2016 at 2:00 pm in room SHR 109.

These bills remove the state capital gains tax (as 30 other states have done) and define constitutional legal tender to establish gold and silver coin for use in the marketplace as currency. This brings compliance with U.S. Code for coinage used in commerce. For more information see  →www.ArizonaSoundMoneyAct.WordPress.com

You can help by attending the committee hearing, providing testimony (usually 2-5 minutes of talking points), posting your support using the Request to Speak system (instructions on the website) or a quick phone call will suffice. Comments to Gov. Doug Ducey’s office encouraging him to sign the bill can be made at http://azgovernor.gov/governor/form/contact-governor-ducey.

Sen. David Farnsworth (R), a constitutionalist, is the sponsor; Sen. Gail Griffin (R) is another constitutionalist. Sen. Farley (D), Sen. Sherwood (D) and Sen. Dalessandro (D) want to see how this creates jobs and benefits their constituencies. Sen. Driggs(R) is conservative and comes from a banking family.

We know these bills are necessary for Arizona to really prosper! We need as much testimony to legislators and the governor’s office as we can obtain.

Senate Financial Institutions Committee

Andrea Dalessandro LD 2 (D) Send Email
adelassandro@azleg.gov
Rm 312 602-926-5342

Susan Donahue Vice Chair LD 5 (R) Send Email
sdonohue@azleg.gov
Rm 304 602-926-4138

Adam Driggs LD 28 (R) Send Email
adriggs@azleg.gov
Rm 309 602-926-3016

Steve Farley Assistant Minority Leader LD 9 (D) Send Email
sfarley@azleg.gov
Rm 213 602-926-3022

David C. Farnsworth Chair LD 16 (R) Send Email or dfarnsworth@azleg.gov
Rm 304 602-926-3020

Gail Griffin
Majority Whip LD 14 (R) Send Email
ggriffin@azleg.gov
Rm 212 602-926-5895

Andrew C. Sherwood LD 26 (D) Send Email
asherwood@azleg.gov
Rm 305 602-926-3028

The complete list of legislators can be found at Senate and House.

Please forward this to those of concern and contact me if you have any questions; we surely can benefit from your support and promotion.

We are not trying to teach the U.S. Constitution or End the FED with these bills; we are just starting the conversation with a foothold to remove capital gains taxes on money as is the position of 30 other states. If more legislation is required to fix anything, we can do that later. Let’s get used to ‘specie’ currency in the cash drawers and on the full reserve electronic debit cards (you can buy one at the grocery store).

Simple talking points to use with those who are interested can be found on other pages on this site.

Email or call your Arizona legislator NOW.

Read More:

Will Dollars Save the WorldArgentina_Post_CollapseCase for a 100 Percent Gold DollarDeflation and LibertyGertrude Coogans Bluff Greenback Populism as Conservative EconomicsGold and Economic Freedom-A GreenspanGold and the Gold StandardGouge On Paper MoneyHayek on Money- Let the people chooseHIDDEN SECTETS OF MONEYHonest Money second edition 2015IMF Pushes Plan to Plunder Global WealthLess than Zero The Case for a Falling Price Level in a Growing EconomyLudwig von Mises on Money and InflationMises on MoneyMyths of the Great DepressionOn the Origins of MoneyProperty Money and FreedomThe Incredible Bread Machine R W GrantThe Monetary Sin of the WestTHE MONEY ISSUE-A MEMORANDUM OF LAWThe Theory of Money and Credit Study GuideThe Underground EconomyThe-Gold-Standard-Domitrovic2Triumph of Gold_Vol_3Understanding Economic Principles — What Is Money Inflation Federal Reserve Free MarketUS Redistribution of Wealth 01.2VieraTexasLawReview-ForgottenConstitutionWhat Is a DollarWhat Is Money By Robert WelchWhatIsMoney

PLEASE HELP pass Arizona’s HB2173 making gold and silver legal tender in Arizona by contacting Gov. Ducey to get behind the Arizona Legislature and SIGN THE BILL INTO LAW! http://www.azleg.gov/legtext/52leg/1r/bills/hb2173h.pdf

BACKGROUND
More than 15 states are in the process of re-establishing precious metals currency as an option to Federal Reserve Notes for payment of debts, goods and services.

Right now, if we use silver coin specified in the U.S. Constitution to pay for gasoline, we would have to pay an erroneous additional tax on the transaction in addition to state sales tax as though we “profited” from the sale of silver which we bought years ago at a lower price in DOLLARS.

The Dollar greatly changes value, but not the silver. This is why the Founders of our great nation specified using precious metal-backed currencies instead of paper money printed without anything you can exchange it for at the bank.

Utah and Oklahoma already passed this law and Arizona passed this March 2015 for the second time in. This is happening across the nation; Arizona’s bill is waiting for the governor to sign it into law. Gov. Ducey needs to hear from YOU.

TAKE ACTION

Please email and call to leave messages to Gov. Doug Ducey at (602) 542-4331 (press 2 to leave a message) and ask those in your email and phone circle of friends to do so.

Website is www.azgovernor.gov and click on “engage” and follow instructions for email messages.
http://azgovernor.gov/governor/form/contact-governor-ducey

TALKING POINTS TO USE:

  • HB2173 was passed nearly unanimously by the majority party in both Arizona Houses. By signing it into law, Gov. Ducey has the opportunity to bring Arizona into compliance with Article 1, Section 10, clause 1 of the U.S. Constitution, and to help bring financial solvency to many who wish to voluntarily use gold and silver as money.
  • One of the functions of the State of Arizona is to protect the liberty of its citizens. We cannot have liberty without private property rights being protected. And private property rights cannot be protected without sound money that maintains its purchasing power over centuries and even millennia. This is why our Country’s Founders stipulated gold and silver coin as tender within the Constitution.
  • To facilitate this compliance, HB 2173 offers Arizona citizens a choice of tendering gold and silver without the debilitating obstruction of taxation as property – which prevents its use as money. Thus, if a private citizen saves gold and silver for retirement then years later he or she will still be able to purchase approximately the same goods with it as he could when he started saving.
  • This of course cannot be said for the constantly diminishing purchasing power of our current Federal Reserve Notes. Thus HB2173 is a way out for Arizonans in the very likely case that the Federal Reserve Note fails when found worthless due to inflation and the crushing weight of the national debt.
  • To veto this bill would also be violating the U.S. Constitution Article 1, Sec. 10, Clause 1 provision that “No State shall…pass any…Law impairing the obligation of contracts…”
  • Current federal and state capital gains taxes impair Arizonans’ free use of constitutional money, if they wish, as a contract between two or more law-abiding citizens.

IS THE BILL REVENUE NEUTRAL, REVENUE NEGATIVE, OR REVENUE POSITIVE to the State?

  • This requirement of all bills must be met. If the State of Arizona would be taking any meaningful loss in revenue by cancelling its 3% capital gains tax, we could not find any figures from the State Treasurer’s office or the Dept. of Revenue to show it! It’s not even traceable!
  • When it becomes law in Arizona, HB2173 will do exactly the opposite in the long run – that is, it will be revenue positive by bringing in business. People will begin to recognize that Arizona’s money is real and that it is not subject to inflationary loss in buying power as is the Federal Reserve Note. This will result in financial stability among those who choose to contract, invest or trade by using gold and silver. Arizona especially will benefit from this proven stability against inflation.

Choice in currency is a natural right recognized in both the U.S. and Arizona Constitutions. Let’s make this choice today. CALL OR EMAIL GOV. DUCEY TODAY and let him know if you are a PC!

The U.S. Constitution Article I Section 10 purposefully states (“No State shall …make any Thing but gold and silver Coin a Tender in Payment of debt[,] …”)

HB2173 which restores gold and silver coin as money pursuant to such, passed the Arizona Senate in March 2015.

WHY DOES THIS MATTER?

  • Money determines how goods and services are traded in an economy.
    In a free economy people can choose what they use for money. Our founders provided gold and silver coin as money which was known to be universally accepted. And such coins when standardized in weight and purity maintained their buying power. When people used gold and silver coin (commodity currency) as money–it was money.

On December 23rd 1913 Congress introduced fiat currency which was issued as paper bills and ledger entries initially redeemable in gold and silver coin. From that date until April 5, 1933 people could choose to use either gold and silver coin or fiat bills and ledger accounts in Federal Reserve member banks (both) as money.

From that date until January 1, 1964 U.S. Citizens could choose to use silver coins OR Federal Reserve fiat bills and ledger accounts as money. But since January 1, 1964 U.S. Citizens could no longer choose to get coin having 90% silver in exchange for their paper bills or ledger entries from the United States Mint.
Fiat currency is the means by which private central banks finance government outside and independently from the economy.

  • With fiat currency the central government can spend money it does not have and tax industry less than the money that was spent. Fiat currency private central banks can issue at will regardless of the production of goods and services by the economy. That is why tax debt can EXCEED 100% of the Gross Domestic Product.

Consequently private central banks (who are not the participants in the economy) maintain and exert authority over the legislated and constituted government through fiat currency. That makes the economy (and the people who make it happen) servant to those very same private central banks.

THE DIFFERENCE IS…

  • Gold and silver coin are finite (limited quantity) tangible commodities which cannot be issued by fiat.

As such, banks and governments must depend upon the economy (which is the production and trade of goods and services ) paid for with these tangible finite commodities. That makes the private central banks and government servant to the economy and the people who make it happen.

  • HB2173 restores gold and silver coin as a choice of money which, BECAUSE IT IS MONEY, cannot be designated a taxable capital gain since it merely preserves purchasing power by being an alternate form of your labor!

This has the potential to restore private central banks and central government as servants to our economy rather than our economy servant to private central banks and central government.

Please make the restoration of gold and silver coin a legacy of this administration; sign this bill into law.

Generations in Arizona after ours will thank us for our compliance with the Arizona and U.S. Constitutions, protecting our earning power when placed in trading form.

TAKE ACTION

Please email and call to leave messages to Gov. Doug Ducey at (602) 542-4331 (press 2 to leave a message) and ask those in your email and phone circle of friends to do so.

Website is www.azgovernor.gov and click on “engage” and follow instructions for email messages.
http://azgovernor.gov/governor/form/contact-governor-ducey

CALL OR EMAIL GOV. DUCEY TODAY and let him know if you are a PC!

HB 2173, sponsored by Rep. Mark Finchem, would eliminate taxes on the exchange of gold and silver coins.  HB 2173 will be heard in the House Federalism and States’ Rights Committee on Wednesday, February 4.  Please send quick emails to these committee members TODAY, asking them to support HB 2173:

Rep. Bob Thorpe   bthorpe@azleg.gov

Rep. Noel Campbell  ncampbell@azleg.gov

Rep. Darin Mitchell   dmitchell@azleg.gov

Rep. Ceci Velasquez  cvelasquez@azleg.gov

Rep. Kelly Townsend  ktownsend@azleg.gov

Rep. Rebecca Rios   rrios@azleg.gov

Rep. Bruce Wheeler  bwheeler@azleg.gov

And please send a quick thank you e-mail to Rep. Finchem at mfinchem@azleg.gov for pushing this bill!

Legal Tender Act Editor’s note: We apologize for this dated article but believe it to be worth reading on our blog although it is not our purpose to monitor the gold market for investment purposes.

Will oil soon be traded in a currency that is thousands of years old?  What would a “gold for oil” system mean for the petrodollar and the U.S. economy?  Are Russia and China hoarding massive amounts of gold because they plan to kill the petrodollar?  Since the 1970s, the U.S. dollar has been the currency that the international community has used to trade oil around the globe.  This has created an overwhelming demand for U.S. dollars and U.S. debt.

But what happens when the rest of the globe starts rejecting the increasingly unstable U.S. dollar and figures out that gold can be used as a currency in international trade?  The truth is that it doesn’t take a lot of imagination to figure that out.  Demand for the U.S. dollar and U.S. debt would fall off the map and there would be a rush into gold unlike anything we have ever seen before.  So are Russia and China accumulating unprecedented amounts of gold right now because they eventually plan to cut the legs out from under the petrodollar and they want to gobble up huge stockpiles of gold before the cat is out of the bag?  Of course they will never admit this publicly, but there are rumblings out there that this is exactly what is happening.

Not that you can really blame any nation that wants to get into gold right now.  News outlets all over the globe are telling us that we are in the midst of a “currency war” as central banks all over the planet race to devalue their currencies.

So why would anyone want to be in paper in such an environment?

And of course the Federal Reserve is one of the biggest offenders.  The Fed has been printing money like it is going out of style, and nobody at the Fed or in the U.S. government really seems too concerned that all of this money printing could be endangering the petrodollar.

But the truth is that the Fed is endangering the petrodollar.  Just read some foreign news stories about the U.S. dollar.  They mock us for our reckless money printing.

In the end, our recklessness will make it very easy for the rest of the world to ditch the U.S. dollar. At some point, it will happen.  In fact, there are persistent rumors that Russia and China actually intend to make it happen. Many believe that this is the reason both nations have been hoarding so much gold recently.

Just check out how much gold Russia has been accumulating.  The following is from a recent Bloomberg article…When Vladimir Putin says the U.S. is endangering the global economy by abusing its dollar monopoly, he’s not just talking. He’s betting on it.

Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty.

“The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency,” Evgeny Fedorov, a lawmaker for Putin’s United Russia party in the lower house of parliament, said in a telephone interview in Moscow.

And Russia’s gold hoarding appears to have accelerated last year.  According to one recent report, Russia added 3.2 million ounces of gold to their reserves in 2012 alone.

But of even greater concern is China.  Nobody really knows how much gold China has, because they do not tell us, but all indications point to the fact that Chinese gold hoarding has gone into overdrive.  The following is from a Zero Hedge article from a few months ago…

Because while earlier today we were wondering (rhetorically, of course) what China is doing with all that excess trade surplus if it is not recycling it back into Treasuries, now we once again find out that instead of purchasing US paper, Beijing continues to buy non-US gold, in the form of 68 tons in imports from Hong Kong in the month of June. The year to date total (6 months) is 383 tons. In other words, in half a year China, whose official total tally is still a massively underrepresented 1054 tons, has imported more gold than the official gold reserves of Portugal, Venezuela, Saudi Arabia, the UK, and so on, and whose YTD imports alone make it the 14th largest holder of gold in the world. Realistically, by now China, which hasn’t provided an honest gold reserve holdings update to the IMF in years, most certainly has more gold than the IMF, and its 2814 tons, itself. Of course, the moment the PBOC does announce its official updated gold stash, a gold price in the mid-$1000 range will be a long gone memory.

As I wrote about the other day, nobody produces more gold than China does, and nobody imports more gold than China does. Everyone agrees that China seems to have an insatiable appetite for gold, but nobody can agree on exactly how much gold they actually have.  One recent estimate put China’s gold reserves at more than 7,000 tons of gold, but it could even be much higher than that.  Nobody really knows.

So what are Russia and China up to?

Well, for a long time both nations have expressed displeasure with the fact that the U.S. dollar is the de facto currency of the world.  Leaders from both nations have suggested the possibility of adopting a new global reserve currency, but up to this point no real contenders have emerged to dethrone the U.S. dollar.

So for now, the U.S. dollar reigns supreme in international trade.  Sadly, even though most Americans greatly benefit from the petrodollar, most of them do not even know what it is.  For those that do not fully understand the petrodollar, the following is a good explanation of the petrodollar from a recent article by Christopher Doran

In a nutshell, any country that wants to purchase oil from an oil producing country has to do so in U.S. dollars. This is a long standing agreement within all oil exporting nations, aka OPEC, the Organization of Petroleum Exporting Countries. The UK for example, cannot simply buy oil from Saudi Arabia by exchanging British pounds. Instead, the UK must exchange its pounds for U.S. dollars. The major exception at present is, of course, Iran.

This means that every country in the world that imports oil—which is the vast majority of the world’s nations—has to have immense quantities of dollars in reserve. These dollars of course are not hidden under the proverbial national mattress. They are invested. And because they are U.S. dollars, they are invested in U.S. Treasury bills and other interest bearing securities that can be easily converted to purchase dollar-priced commodities like oil. This is what has allowed the U.S. to run up trillions of dollars of debt: the rest of the world simply buys up that debt in the form of U.S. interest bearing securities.

And all of this has worked out very nicely for the United States.  It has created a massive demand for U.S. dollars and U.S. debt.

But what would happen if the rest of the world rejected the petrodollar system and adopted a “petrogold” system instead?

A recent article by Jim Willie discussed how a petrogold system might work…

The crux of the non-US$ trade vehicle devised as a US Dollar alternative will be the Gold Trade Note. It will enable peer-to-peer payments to be completed from direct account transfers independent of currency, and most importantly, not done through the narrow pipes and channels controlled by the bankers with their omnipresent SWIFT code system among the world of banks. The Gold Trade Note will act much like a Letter of Credit, serve as a short-term bill, and maybe even push aside the near 0% short-term US Treasury Bills that litter the banking landscape. Any bond or bill earning almost no interest is veritable clutter. The zero bound US Treasuries open the door in a big way for replacement by a better vehicle. The new trade notes will involve posted gold as collateral, whose entire system for trade usage will bear a massive gold core that also will include silver and platinum, maybe other precious metals. The idea is to avoid the FOREX systems, to avoid the US Dollar, and to avoid the banks as much as possible in a peer-to-peer system that can be executed between parties holding Blackberry devices or simple PC to complete the payments on transactions. If Gold is ignored by the corrupt bankers, then Gold will be the center of the new trade system and the solution in providing a globally accepted US Dollar alternative. And Russia and China would greatly benefit from a petrogold system.

Today, Russia is the number one oil exporter on the planet.

China is the number two consumer of oil in the world, and at this point they are actually importing more oil from Saudi Arabia than is the United States. Does it make sense that they should remain locked into a system that forces them to use U.S. dollars for all of their oil transactions?

And now Russia even has the number one oil company in the world.  The following is from a recent article by Marin Katusa

Exxon Mobil is no longer the world’s number-one oil producer. As of yesterday, that title belongs to Putin Oil Corp – oh, whoops, I mean the title belongs to Rosneft, Russia’s state-controlled oil company.

Rosneft is buying TNK-BP, which is a vertically integrated oil company co-owned by British oil firm BP and a group of Russian billionaires known as AAR. One of the top-ten privately owned oil producers in the world, in 2010 TNK-BP churned out 1.74 million barrels of oil equivalent per day from its assets in Russia and Ukraine and processed almost half that amount through its refineries.

With TNK-BP in its hands, Rosneft will be in charge of more than 4 million barrels of oil production a day. And who is in charge of Rosneft? None other than Vladimir Putin, Russia’s resource-full president.

And Russian gas giant Gazprom supplies a huge percentage of the natural gas that Europe uses…

Gazprom, the Russian state gas company, already has Europe wrapped around its little finger. Russia supplies 34% of Europe’s gas needs, and when the under-construction South Stream pipeline starts operating, that percentage will increase. As if those developments weren’t enough, yesterday Gazprom offered the highest bid to obtain a stake in the massive Leviathan gas field off Israel’s coast.

Gazprom in control of Europe’s gas, Rosneft in control of its oil. A red hand stretching out from Russia to strangle the supremacy of the West and pave the way for a new world order– one with Russia at the helm.

Russia and China have a tremendous amount of leverage when it comes to energy.  What if they got together with a bunch of oil producing nations in the Middle East and decided to set up a system where oil is traded for gold?  Would not much of the rest of the world go along with such a system?

Of course if that happened the U.S. financial system would crash.  We would no longer be able to export our inflation to the rest of the globe and prices would rise dramatically.  Demand for U.S. government debt would go through the floor and interest rates on that debt and on everything else in our economy would skyrocket.  Economic activity would grind to a standstill and the financial markets would collapse.

And that would just be for starters.

Most Americans simply don’t understand that Russia and China have the power to collapse the U.S. economy by going to a gold for oil system.  All they have to do is pull the trigger.

The other day I wrote an article entitled “Show This To Anyone That Believes That ‘Things Are Getting Better’ In America” which discussed all of the reasons why the U.S. economy is already collapsing.  But as bad as things are now, this is nothing compared to what things will be like when the petrodollar dies.

So pay keen attention to anything in the news about Russia or China suggesting that oil should be traded for gold.  When Russia and China pull the trigger, things will get messy very quickly.

For more, see The Economic Collapse Blog.

Thursday, February 14, 2013 9:47 AM        http://www.afa.net/Blogs/BlogPost.aspx?id=2147532400

 

Although previously agreeing to hear the Arizona Legal Tender Act bill last year, Kate Brophy McGee refused this year to place the bill on the calendar. Her refusal was in large part her belief that Arizona did not need the bill, even though it is mandated in U.S. Constitution Article 1 S. 8. It died in her Banking and Finance Committee.

It is not surprising that Kate Brophy McGee is on the blacklist of RINO Republicans who collaborated with Gov. Jan Brewer to join with the Democrat legislators in voting for Medicaid expansion. This was to accommodate the implementation of ‘Obamacare’ instead of enacting a state healthcare exchange, among other unconstitutional actions led by the governor. It was the same Gov. Jan Brewer who vetoed the Arizona Legal Tender Act last year for nebulous reasons her office could not defend.

Unfortunately, the bills sponsor, Senator Chester J. Crandell was suddenly killed in an accident while riding on his ranch.

According to the Arizona Daily Sun, “Crandell was known largely for espousing conservative causes, getting attention for a 2013 measure seeking to declare that privately minted gold and silver coins are legal tender in Arizona. He said it set the stage for a time when people will want to use these coins rather than the paper currency being issued by the Federal Reserve, money that some people believe could become worthless due to hyperinflation.”

Senator Crandell was able to easily recruit 12 sponsors for the bill and the Arizona Legislature passed the bill, in large part because of his dedication and dogged determination to the task, a characteristic of all of his work whether in the legislature or on the ranch.

Continue to follow the progress of this topic in Arizona as other states also make progress on constitutional legal tender.

Arizona’s Legal Tender Act SB1096 is assigned to one more committee before the House floor vote, the C.O.W. and on to the governor!

Please contact the AZ House Financial Institutions Committee to hear and pass this honest money bill:

Financial Institutions

Members

Position

Email

Phone

Kate Brophy McGee

Chairman

kbrophymcgee@azleg.gov (602) 926-4486
Demion Clinco

Member

dclinco@azleg.gov (602) 926-4089
Jeff Dial

Member

jdial@azleg.gov (602) 926-5550
Rosanna Gabaldón

Member

rgabaldon@azleg.gov (602) 926-3424
Lydia Hernández

Member

lhernandez@azleg.gov (602) 926-3376
David Livingston

Vice-Chairman

dlivingston@azleg.gov (602) 926-4178
Darin Mitchell

Member

dmitchell@azleg.gov (602) 926-5894
Steve Smith

Member

stsmith@azleg.gov (602) 926-5685

Here are some points to share with Arizona’s Financial Institutions Committee from the Sound Money Campaign:

One of the primary reasons our paper money is not tied to a gold standard is that the government can fund whatever project it needs to fund simply by instructing the Fed to print more money. Before we unchained the dollar from gold, the government could not spend more money than it held in gold. That kept the lid on wild spending, and our eyes on what the United States budget was really doing.

The result of printing money with nothing to back it is a huge national debt. Sure it is easy to say that we need all of these government programs, but how we are going to pay for them. We cannot continue to spend money that we do not have. How long can you do this before you face a huge economic crisis? Well the U. S. Government is facing a huge economic crisis. That crisis is going to affect everyone.

The opponents of sound money (money that is backed by a gold standard) are the very ones who are making the laws, and driving up debt. They are skimming the top and getting rich while waiting for the entire heap to collapse in on itself. Who is going to pay for this? It will be the American middle and lower class and their children!

Paper money is not working for the country. It undermines the power of supply and demand. It turns citizens into addicts of consumerism. Sure we need people to buy products but at what cost do we allow people who cannot afford products to keep buying them? The housing market crash of 2008 should have been a sound warning. It was not. The people have allowed the Fed to make the situation worse by decreasing the value of the American Dollar to such a degree that it is practically worthless.

Paper money is like a mirage. Money that is not redeemable in gold or silver does not show a true vision of industry. How do we measure success and failure if the very components of either are propped up with fake cash? When currency is backed by an asset, it has a limit on how much it can be worth and how little it can be worth. The extreme of printed money is not expressed by upward growth; it is in terms of deflation.

How can the value of currency increase if the amount of the currency floating within the market continually dilutes its value? The answer is that printed money cannot gain in value unless it is retracted from the market. In the current situation, that would cause interest rates to go sky high, and the economy would face huge inflationary problems. Printed money needs to go. It is past time to return to a gold standard. It is past the time that we allow the markets to regulate the value of currency so a Dollar really is worth a Dollar.

Last year’s Arizona Legal Tender Act was in demand again this year by a number of legislators and its sponsor was swift in resubmitting it to the ‘hopper’ in 2014 as Senate Bill SB1096!

This time the bill is beefed up to address minor concerns with implementation. the Senate Engrossed text of the bill can be read HERE. It was quickly passed through the Arizona Senate and is in the House Federalism and Fiscal Responsibility Committee TODAY.

Please contact the members of this committee to encourage them to recognize honest money as legal tender in Arizona, paving the way to another great tool for prosperity and sound economic practice in compliance with Article I, Section 8 of the Constitution.

Should this committee amend and recommend the bill to the floor for consideration by the Committee of the Whole, or send it directly to the floor for Third Read, contact all members of the House and encourage them to pass SB1096 as it stands.

FOR TALKING POINTS to promote this bill, see the Arizona Legal Tender Act Fact Sheet tab above and browse the articles. Facts on honest money don’t change–the use of gold and silver coin as legal tender is almost as old as dirt itself (pardon the pun!).

It is time we kept our hard-earned wealth intact. “A wise man leaves an inheritance to his children and grandchildren.”

 

Texas Votes to Abolish Taxation of Gold

May 23, 2013

Texas to Abolish Gold Taxation as APP Launches Related Website on States and Sound Money The Texas Senate on Wednesday night passed H.B. 78, a bill that eliminates the sales tax on precious metal coins and bullion. It now goes to Governor Rick Perry’s desk for his signature into law. Existing Texas statute applies the […]

Read more

By Shane Vander Hart on May 22, 2013 | Economics

SB 248 is being discussed in the Louisiana Senate Committee on Revenue and Fiscal Affairs.  It simply provides for a sales and use tax exemption on purchases of gold and silver bullion coins.  This bill is sponsored by State Senator A.G. Crowe (R-Slidell).  This is the bill we have been involved in.  There may be a vote on this before the end of the day, we’ll keep you updated.

There is a similar House bill – HB 682 sponsored by State Representative Paul Hollis (R-Covington) that is being considered by the Louisiana House Ways and Means Committee.  This bill broadens the sales and use tax exclusion for gold, silver, or numismatic coins (collectables), or platinum, gold or silver bullion.

If both bills pass the differences will need to be worked out in conference committee.

Update: the House bill just passed out of committee unanimously.

Saturday, 04 May 2013 Written by  Alex Newman
http://www.thenewamerican.com/economy/economics/item/15298-outcry-after-gop-arizona-gov-brewer-vetoes-gold-and-silver-bill

Despite overwhelming support among lawmakers and activists, Republican Gov. Jan Brewer vetoed legislation that would have made Arizona the second state to officially define gold and silver as legal tender. The GOP governor acknowledged that concerns over the increasingly unstable U.S. dollar were justified. However, citing a miniscule projected drop in tax revenue and other trivial excuses, Brewer refused to support the popular bill. Activists are now hoping lawmakers will try to override the governor.

In an open letter about the veto of SB 1439 to Arizona Senate President Andy Biggs, the governor claimed that alleged “administrative and fiscal burdens” for taxpayers and the state revenue department “remain vague.” In addition, Brewer cited an example of her supposed confusion, claiming it was “unclear” whether the measure would have required Arizona to exempt income tax related to a transaction with collectible coins or currency originally authorized by Congress and used as legal tender.

“This would result in lost revenue to the state, while giving businesses that buy and sell collectable coins or currency originally authorized by Congress an unfair tax advantage,” Brewer wrote in explaining her controversial decision, which sparked an outcry among conservatives and sound-money advocates. Despite the supposed worry over “lost revenue,” however, experts said the legislation was unlikely to have any significant impact on the state budget — especially not if, as critics of the bill alleged, few people were interested in using sound money anyway.

Still, Brewer did suggest that she understood growing nationwide fears surrounding the Federal Reserve System, inflation, and wild federal spending. “While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation,” she wrote. “I believe the provisions in this legislation need to be more carefully examined and there should be prior coordination with those government agencies tasked with oversight of these transactions.”

It was not immediately clear whether the governor would be willing to reconsider supporting the bill if the provisions were “more carefully examined.” As The New American reported last month, in an effort to soften opposition from the Brewer administration’s revenue bureaucrats, the Arizona House of Representatives added an amendment specifically stating that authorities would not be forced to accept gold or silver. Apparently that was not enough.

Under the legislation, which received widespread support from economists, lawmakers, and grassroots activists, precious metals would have been treated like debt-based fiat currency for taxation and regulation purposes. Unlike the privately owned Federal Reserve’s currency, however, nobody would have been forced to accept gold or silver against their will.

Outcry After GOP Arizona Gov. Brewer Vetoes Gold and Silver Bill

Today, the Arizona Senate passed SB1439 Gold and Silver Coin as Legal Tender and sent the bill to the Governor. She should sign the bill as it promotes the economic climate she wants in her 4 point plan for Arizona. As business is encouraged, more jobs will be created, more earnings stay in the state and Arizona may be closer to paying off its $8.2 Billion in debt from prior borrowing instead of just paying $350 Million of taxpayer money in interest payments every year.

Send a message encouraging Gov. Brewer at http://www.azgovernor.gov/Contact.asp to sign this bill into law and further Arizona along the path to better economic times.

The documents on this site show more reasons why this is good for Arizona, as Phoenix will now take its place as a premier financial center for precisous metals finance along with Zurich, London, Hong Kong, New York, Salt Lake City and others recognizing that gold and silver coin are real money.

The only way now to track SB1439 Legal Tender for its Final Floor Vote (Senate Third Reading) is to daily check the Senate Floor Calendar at http://www.azleg.gov/FloorCalendars.asp and look at the most recent date for Third Reading Calendar and check for a Consent Calendar listing. They take a few bills each day there is a session. There is no final day set (sine die) as the negotiations for the budget and other bills continue into the foreseeable future.

BILL #   SB 1439

http://www.azleg.gov/DocumentsForBill.asp?Bill_Number=SB1439&Session_ID=110

TITLE:   legal tender

SPONSOR:   Crandell

STATUS:   As Introduced

PREPARED BY:     Eric Billings

FINANCIAL IMPACT STATEMENT

Description

SB 1439 changes the definition of legal tender to include any gold or silver coin issued by the U.S. government or any coin or bullion containing gold or silver that a court approves.  The bill does not compel an individual to accept gold or silver as payment and prohibits the taxation of exchange between fiat money (paper money) and specie material (gold or silver coin or bullion).  The bill would also prohibit taxation of gold or silver legal tender and would compel individuals using the new legal tender to pay any taxes related to the transaction with the same type of legal tender.

Estimated Impact

The fiscal impact of this bill cannot be determined with available information.

The Department of Revenue and the Treasurer report that they are unable to estimate a fiscal impact at this time.

Analysis

Altering the definition of legal tender to include specie material could possibly necessitate the purchase of additional equipment and facilities or the hiring of specialists such as assayers to allow the Department of Revenue and the State Treasurer to safely and efficiently handle tax and other transactions conducted in the material.  The extent to which these and other agencies may be required to purchase additional materials is dependent on the public’s utilization of specie material.

DOR was unable to provide an estimate.

The Treasurer reports that all of their current contracts prohibit the use of specie coin, and thus does not see an immediate impact from the bill.

Local Government Impact

This bill may have a local government impact to the extent that local governments have to purchase equipment or space to handle transactions in specie material.  Maricopa County reported that the bill would have a compliance impact but was unable to estimate the cost.

LIVINGSTON FLOOR AMENDMENT

HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1439 – 04/04/2013

(Reference to Senate engrossed bill)

Page 1, line 11, strike “and taxes”

Strike lines 25 and 26

Reletter to conform

Amend title to conform

AZ House Engrossed Senate Bill:

http://www.azleg.gov//FormatDocument.asp?inDoc=/legtext/51leg/1r/bills/sb1439h.htm&Session_ID=110

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Title 1, Arizona Revised Statutes, is amended by adding chapter 7, to read:

CHAPTER 7       LEGAL TENDER

ARTICLE 1.  GENERAL PROVISIONS

START_STATUTE1-701.  Definition of specie legal tender

In the statutes and laws of this state, unless the context otherwise requires:

1.  “Legal tender” means an authorized medium of exchange for the payment of debts.

2.  “Specie” means coin or bullion having gold or silver content. END_STATUTE

START_STATUTE1-702.  Legal tender recognition; use of specie

A.  Legal tender in this state consists of all of the following:

1.  Legal tender authorized by Congress.

2.  Specie coin issued at any time by the United States government.

3.  Any other specie that a court of competent jurisdiction rules by a final, unappealable order to be within the scope of state authority to make a legal tender.

B.  Except as expressly provided by contract, a person may not compel any other person to tender or accept specie legal tender. END_STATUTE

START_STATUTE1-703.  Legal tender exchanges; payment of taxes

A.  Notwithstanding any other law, the exchange of one form of legal tender for another does not give rise to liability for any type of tax.

B.  Legal tender is money and is not subject to taxation or regulation as property other than money. END_STATUTE

START_STATUTE1-704.  Enforcement

The attorney general shall enforce this chapter without PREJUDICE to an individual’s right of judicial action pursuant to this chapter. END_STATUTE

Sec. 2.  Effective date

Title 1, chapter 7, Arizona Revised Statutes, as added by this act, is effective from and after ninety days after the fifty-first legislature, second regular session adjourns sine die.

Students today are often given a skewed account of the Great Depression of 1921-1941 that condemns free-market capitalism as the cause of, and promotes government intervention as the solution to, the economic hardships of the era. In this essay based on a popular lecture, Foundation for Economic Education President Lawrence W. Reed debunks this conventional view and traces the central role that poor government policy played in fostering this legendary catastrophe. Read more…

Here are the eBook PDF and audio mp3 files:

Adobe Icon Myths of the Great Depression

Get Adobe Reader 

MP3 Audio AudioBar

http://www.fee.org/files/audioLib/great-myths-full.mp3

March 21, 2013

Call it the Rick Perry gold rush: The governor wants to bring the state’s gold reserves back from a New York vault to Texas.

And he may have legislative support to do it. Freshman Rep. Giovanni Capriglione, R-Southlake, is carrying a bill that would establish the Texas Bullion Depository, a secure state-based bank to house $1 billion worth of gold bars owned by the University of Texas Investment Management Company, or UTIMCO, and currently stored by the Federal Reserve.

The idea isn’t entirely new. Some Republican members worked on a gold bill last session that was never filed. And gold-standard-backing Ron Paul, the former Texas congressman, has raised repeated concerns about the safety of states’ gold supplies.

“If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible,” Paul told the Tribune on Thursday. “Texas is better served if it knows exactly where the gold is rather than depending on the security of the Federal Reserve.”

Bringing Texas’ gold home has gained more traction this legislative session because of Perry’s vocal support for it. On conservative radio host Glenn Beck’s show on Tuesday, the governor said Texas was “in the process” — the legislative process, he later clarified — of “bringing gold that belongs to the state of Texas back into the state.” He argued that the state was at least as capable as the Federal Reserve of safeguarding Texas’ “physical gold.”

“If we own it,” Perry said, “I will suggest to you that that’s not someone else’s determination whether we can take possession of it back or not.”

State Rep. Lon Burnam, D-Fort Worth, said he was familiar with Capriglione’s bill but was skeptical that it addresses a legitimate problem facing the state.

“We’ve got plenty of real problems that we’re not going to deal with this session,” Burnam said. “Let’s deal with them.”

Capriglione said he was at a Tea Party event in Tarrant County earlier this year where Perry spoke about the state’s gold investments as an economic development tool. Since then, he has been working with Perry’s office on the bill.

“Something on the scorecards of a lot of these businesses in deciding whether they want to come to Texas is stability and gold as being one of those items,” Capriglione said. “I think it’s been in his consciousness for a while in trying to get some sort of depository in the state of Texas.”

He has also spoken with UTIMCO, which owns the 6,643 gold bars currently housed underground in New York City.

“We’re trying to figure out the right amount of gold to have here in Texas,” Capriglione said. “’We don’t want just the certificates. We want our gold. And if you’re the state of Texas, you should be able to get your gold.”

The United States and many other countries stopped pegging their currencies to the gold standard decades ago. Capriglione said the bill is not about putting Texas on its own gold standard. Rather, a depository would give the state a reputation as being more financially secure in the event of a national or international financial crisis.

“For us to have our own gold, a lot of the runs on the bank and those types of things, they happen because people are worried that there’s nothing there to back it up,” Capriglione said. “So I think this cures a problem before it can happen.”

Physically transporting gold that various state entities own from New York City or other banks to Texas would be impractical from a security and logistics standpoint, Capriglione said. He believes it makes more sense to sell the gold Texas has elsewhere and repurchase it within state lines.

He said he doesn’t think the measure would be a significant expense, because the gold bars could be safeguarded in a small area, no bigger than 20 square feet.

Capriglione said he is working on revisions to the bill to address some concerns he has heard. He plans to make sure the bill would not cause the state to change its overall asset portfolio to be more heavily invested in gold. Also, to lower the bill’s costs, he expects to change the language to allow some of the administrative costs of building and running the depository to be handled by the private sector.

Such a bill might not divide lawmakers along strictly party lines. State Sen. Rodney Ellis, D-Houston, called the bill “an interesting concept” but said he would want to learn more about it and talk to “colleagues in the financial industry” before weighing in on its merits.

Texas Tribune donors or members may be quoted or mentioned in our stories, or may be the subject of them. For a complete list of contributors, click here.

This article originally appeared in The Texas Tribune at http://www.texastribune.org/2013/03/21/perry-some-lawmakers-want-states-gold-back-texas/.

NASHUA, N.H. — Gov. Rick Perry sent the media into a feeding frenzy this week when he went hammer and tong after the U.S. Federal Reserve, but supporters of another Texan running for the White House heard something familiar: the message of Ron Paul.

“We agree with him, but let’s point out that he’s parroting what Ron Paul has been saying for years,” said Debra Medina, a Ron Paul acolyte who ran an unsuccessful gubernatorial campaign against Perry in 2010. “He’s reading the economy and the monetary policy concerns and he’s mimicking Ron Paul.”

Perry’s sustained attack on the central bank has helped nourish a widespread feeling among Paul supporters that the Republican congressman can’t catch a break. He’s been bashing the Fed for years, and here comes Perry stealing all the thunder.

Paul, who ran a new ad this week criticizing Perry and other “smooth-talking” politicians, was opening his campaign headquarters Wednesday evening about 15 miles from where the Texas governor spoke to a bipartisan breakfast gathering. Perry had the kind of national media entourage in tow that Paul has never drawn, much to the consternation of Paul’s supporters, who accuse the media of ignoring their candidate.

Perry set off a firestorm when he said it would be “almost treasonous” for the Federal Reserve chairman to print more money to help prop up the economy before the 2012 election. He has since toned down the heated rhetoric, but Perry has been more than happy to keep the focus on the issue.

At the breakfast on Wednesday, he joked that he had gotten “in trouble” for talking about the Fed, but he used the occasion to pile more criticism on it. He called for an audit of the Federal Reserve and said it would show whether or not there had been any “improper” behavior.

On Tuesday, Paul suggested the governor’s Fed attack was politically motivated.

“I think politically he’s pretty astute. He came out for secession, too, when he had a Tea Party candidate running against him,” Paul said of Perry on CNBC’s The Kudlow Report. “I have no idea what his real principles are.”

He noted that he’s long been a foe of the Fed. “I was motivated in the 1970s, because the handwriting was on the wall,” he said on the cable business news channel.

Like Paul, Perry is tapping into a sea of mistrust and discontent about the central bank and the falling value of the U.S. dollar. But the governor stops well short of Paul, who wants to abolish the Federal Reserve and return to the gold standard and an exclusively private banking system. During the debt ceiling drama in Washington, with the possibility that the U.S. might default on its obligations, Paul proposed stiffing the Federal Reserve.

“We owe, like, $1.6 trillion because the Federal Reserve bought that debt, so we have to work hard to pay the interest to the Federal Reserve,” Paul told CNN Money at the end of June. “We don’t, I mean, they’re nobody; why do we have to pay them off?” The website noted that the Fed turns over the interested earned to the federal government, including $79 billion returned to the Treasury in 2010.

Jim Henson, who directs the Texas Politics Project in the Department of Government at the University of Texas, compared the controversy over the Fed to Perry’s sensational 2009 comments about the possibility that Texas might secede from the U.S.: The media and many mainstream voters tend to lose their minds, but Perry scores with an influential group of Republicans key to his party’s nomination.

“I think it’s another one of these issues where he found something that he’ll get criticized about from the outside but will be golden with in his base,” said Henson, who is also co-director of the University of Texas/Texas Tribune poll with Daron Shaw. “It’s almost like a little glimpse of the old Rick Perry. I think it helps him.”

Texas Tribune donors or members may be quoted or mentioned in our stories, or may be the subject of them. For a complete list of contributors, click here.

This article originally appeared in The Texas Tribune at http://www.texastribune.org/2011/08/18/perrys-attack-fed-echoes-ron-paul/.

Posted: Mar 18, 2013 5:18 PM Updated: Mar 18, 2013 5:21 PM

By CRISTINA SILVA
Associated Press

PHOENIX (AP) – Arizona Republican lawmakers say privately minted gold and silver coins should be considered legal tender.

The bill advanced in a 4-2 vote by a House committee Monday states that gold and silver is money and therefore shouldn’t be subject to tax or regulation as property.

Proponents say the value of the dollar is on the decline. Businesses wouldn’t be required to accept gold or silver under the bill.

Democrats oppose the measure. They say it would be a bureaucratic nightmare because businesses don’t have the equipment to determine the value of gold and silver.

They also say the measure is Arizona’s latest jab at the federal government, which prohibits states from minting their own money.

The bill passed in the Republican-led Senate in February in a 17-11 vote.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

_____________________________________________________________________

I wish the reporter had enough education or intellectual honesty to report that the Constitution, (the people), not the Federal Government, prohibits the states from coining money.  The reporter twists the facts to make it appear that the Federal Government is sovereign, not the people.  Is there any way to correct and educate reporters when they make these “errors”?  Can the AP be required to retract or correct their words in the interest of honesty and fairness to the public that they “serve”?

I can’t express the horror and outrage I feel almost every day as I hear people (who should be educated) telling other people that Federal Law always trumps State Law.  Almost everyone has heard this falsehood said enough times that they now believe it to be true.  Even many of our elected representatives in Arizona State Government, who have sworn an oath to uphold the Constitution, profess to believe this and accept it as fact.  These ignorant, sadly misled or misinformed representatives pose our greatest barrier to State nullification of unconstitutional dictates of the Federal Government – do they not?

10thAmendCtrLogo

Arizona, Support Sound Money!

SB1439 passed the State Senate and needs your help to pass the House as well.

Arizona SB 1439, The Constitutional Tender Act, has passed the senate 17-11 and is now on its way to the House for concurrence.

Senate Bill 1439 is an act to that would allow the State of Arizona to return to sound money and uphold Article 1 Section 10 of the Constitution. Your support is needed right now to help move this bill forward.

ACTION ITEMS

1. Contact your state representative.  Strongly, but politely, let them know you want them to vote YES on SB1439. Remind them that you expect them to support the Constitution, and that includes Article 1, Section 10 which says that the state needs to allow gold and silver to be used as legal tender. SB1439 will help facilitate this constitutional duty and you want a YES vote.

Contact info here:
http://www.azleg.gov/alisStaticPages/HowToContactMember.asp

2. Share this information widely.
Please pass this along to your friends and family. Also share it with any and all grassroots groups you’re in contact with around the state. Please encourage them to email this information to their members and supporters.

BACKGROUND INFORMATION

Currently all debts and taxes in Arizona and the rest of the United States are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.

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.” The Constitutional tender act is a big step towards that constitutional requirement which has been ignored for a long time in every state of the country. Such a tactic would achieve the desired goal 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 level.

Passage of the Constitutional Tender Act would introduce currency competition with Federal Reserve Notes. Professor William Greene explains further:

“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.

Without a single act of Congress, the Federal Reserve system can be brought to its knees by passing such bills in states all over the country.

Gold Alert Website:
“For the first time since 1971, gold and silver are once again considered legal tender in at least one part of the United States.”

“The state of Utah passed the ‘Utah Legal Tender Act,’ which ‘recognizes gold and silver coins that are issued by the federal government as legal tender in the state and exempts the exchange of the coins from certain types of state tax liability.'”

“The law, signed by Governor Gary Herbert on March 25, does not obligate individuals to pay or accept payment in precious metals, but rather provides an alternative to the fiat-based Federal Reserve note that central bankers have been recklessly creating out of thin air in unprecedented proportions in recent years.”

“The Utah Legal Tender Act Utah Legal also eliminates state taxes on the exchange of gold and silver coins, and instructs the legislature to study an ‘alternative form of legal tender.’”

“The most significant change from a practical perspective is that the Utah’s state tax code now considers gold and silver coins issued by the U.S. Mint as currency rather than an asset, which means that capital gains or other state taxes cannot be levied when the coins are exchanged. However, federal taxes still apply on these transactions.”

“A key point to note is that the ‘Utah Legal Tender Act’ that passed is different from the ‘Utah Sound Money Act,’ which sought to recognize gold and silver coins issued by certain foreign governments in addition to those minted by the U.S. government. Furthermore, the Sound Money Act would have required the state of Utah’s government to accept the coins as payment.”

The Gold/Silver Ratio

John Maynard Keynes once stated that “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” Such a situation is exactly what faces this country today, as the Federal Reserve seems hell-bent on destroying what little purchasing power remains of the U.S. Dollar. Continue Reading »

What’s a Federal Reserve Note?

Never heard of it!

In 1971 the United States officially broke the last remaining link between the dollar and gold.  Since then the dollar has existed as a fully fiat currency whose supply has been expanded at a continually increasing rate. Why should this be of concern to the average person? Continue Reading »

By Dr. Edwin Vieira, Jr.
President, National Alliance for Constitutional Money
presented to the Board of Trustees of
The Conservative Caucus Foundation
at its Annual Meeting in Washington, D.C. on January 13, 1997

[This article may be downloaded from ‘Download’ page]

We’re coming, in this topic I guess, down to the bottom line. What makes the gears of government turn is the grease–money. And given that it has become more and more difficult to differentiate the government from a criminal family, I will quote from Don Corleone of the movie, The Godfather, who asked the question: “What’s in it for my family?”

Well, we have a mechanism in this country that has been set up to answer that question for certain groups that are in a privileged position, and that mechanism is known as the Federal Reserve System.

The major cross that I have to bear is dealing with the Federal Reserve System continue…

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