Friday, December 31, 2010
...While we wait for the federal government to do nothing to stem the tide of Federal Reserve Notes that will likely soon capsize our ship of state, states can, like individuals, position themselves to proactively prepare for any problem with the dollar, rather than later be forced to react under troublesome circumstances. Article I Section 10 of the U.S. Constitution says that “No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts…” Additionally, no power was delegated in the Constitution to allow for the federal government to make anything but gold and silver coin a legal tender for commerce. That this limitation has long been ignored is no excuse for its ongoing abuse.
In the 2011 general legislative session, Utahns will have an opportunity to position themselves and their state on better financial footing by infusing the system with sound money—to the degree that willing participants choose to use either gold or silver as alternative currencies. The Utah Sound Money Act will soon be introduced to initiate this opportunity.
This bill is designed to reinstate gold and silver coin as an optional medium of exchange for use in commerce within the state of Utah. It nullifies legal tender laws for intrastate commerce, recognizing the inherent, inalienable right of individuals to engage in specie-based exchanges with each other on mutually agreeable terms. You can read the bill here (PDF).
READ THE REST OF THE ARTICLE HERE...
Thursday, December 30, 2010
Wednesday, December 29, 2010
The Salt Lake Tribune
View the bill here.
Contact your Utah State Representative here.
Imagine paying your next parking ticket in gold Krugerrands or renewing your driver license using American Gold Eagles.
A proposal in the Utah Legislature would require the state to allow just that, requiring government agencies to accept gold for transactions, and creating a parallel monetary policy for intrastate commerce tied to the price of gold.
Under the legislation that has been drafted, Utah residents could mint their own gold or silver coins, a storehouse would be created to stockpile the precious metal and the Utah Defense Force, an arcane state militia that may be called and armed by the governor, would be responsible for securing the inventories.
“I think it has merit,” said Rep. John Dougall, R-Highland, who had the proposal brought to him by a constituent and committed to opening a bill file. Another representative will probably end up sponsoring the legislation.
“Fundamentally, what it comes down to is people’s concern about the fundamentally reckless policies at the federal reserve and what it does long-term to the financial standing of the country and giving folks another choice of monetary tools for their financial transactions,” Dougall said.
READ THE REST OF THE ARTICLE...
Every citizen TODAY needs to contact the Leaders of the Utah House of Representatives and ask them to support this bill -- CLICK HERE to take action NOW!
Tuesday, December 28, 2010
Written by: Michael Boldin
posted on 12/27/10 at the Tenth Amendment Center Blog
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.”
When was the last time your state followed this? For most living humans – never. In recent years, though, a number of states have seen Constitutional Tender Acts introduced with the goal of righting this wrong. Passage would nullify federal legal tender laws that prevent states from abiding by Article I, Section 10 of the Constitution.
In the 2011 legislative session, Georgia will consider House Bill 3 (HB3), which states, in part:
CONTINUE READING ARTICLE...
Thursday, December 23, 2010
We are incredibly grateful for the work of the Tenth Amendment Center in promoting the Constitutional Tender Act. On this dark day in history, they are graciously doing so again.A Date that Lives in Infamy
EDITOR’S NOTE: On December 23, 1913, Woodrow Wilson signed the act creating the Federal Reserve System. Now that Ron Paul is in a place to bring some light to the true dealings of the fed, the time is ripe to end the fed. But, the best way to get back to a proper monetary policy will likely come from a place far from Washington, D.C. – your own state.
The following article, “Ending the Fed from the Bottom Up,” by Dr. William Greene, was originally published here at the Tenth Amendment Center on 04-11-10. We’re proud to present it here again on this sad, but historic anniversary – with hopes that you will take action today to push your state to consider the Constitutional Tender Act, and start the process of bringing the Federal Reserve System to it’s much-needed demise.
READ THE REST HERE...
Monday, December 20, 2010
By doing this, as I explained in a recent article, precious metal coinage could return, because the State would be required to only use gold and silver coins (or their equivalents, such as checks or electronic transfers) for payments of any debt owed by or to the State. All contracts, tax bills, etc. would be required to be denominated in legal tender gold and silver U.S. coins. All State-chartered banks, as well as any other bank that is a depository for State funds, would be required to offer accounts denominated in those types of gold and silver coins, and to keep such accounts segregated from other types of accounts such as Federal Reserve Notes.
The State would use gold and silver coins as money; the public and businesses would start using gold and silver as money, in addition to Federal Reserve Notes; and the use of sound money would return to America, one State at a time.
But with all of that said, one of the most interesting things to come out in the subcommittee hearing that the ConTen Act received here in Georgia, was the idea in those legislators' heads that gold and silver simply could not be USED as money, PERIOD. We heard comments like these:
- "Where would the State keep all of its gold and silver coins?" (Answer: Where does the State keep all of its Federal Reserve Notes? In a BANK, of course - just like they would under this Act.)
- "How would people be able to carry around all of those heavy gold and silver coins?" (Answer: How do they carry tens of thousands of dollars in Federal Reserve Notes around? They DON'T - they carry checkbooks and debit cards - just like they would under this Act.)
- "How would people buy things at the grocery store?" (Answer: How do people buy things at the grocery store now? With physical cash, or with a check, or with a debit card, or with a credit card - just like they would under this Act.)
Which brings me to the reason for this post: If you look back, I've written several times (for example, here and here) about the coming of ATMs that exchange paper fiat money for actual gold. This is just a precursor -- a taste -- of what I'm talking about here: modern banking based on sound money. Well, those gold ATMs have arrived on our shores:
Boca Raton mall unveils ATM that dispenses goldLike I said, this is just a "taste" of the modern specie-based banking we can look forward to, if we implement ideas like the Constitutional Tender Act. But that's why this idea is key: the more we get used to the notion of gold and silver being money, the sooner we'll finally return to sound money that holds its value -- and the sooner we can save our trashed economy.
By Frank Cerabino
Palm Beach Post Staff Writer
Thursday, Dec. 16, 2010
At 10 a.m. today, the Town Center Mall in Boca Raton will unveil a vending machine that dispenses gold bullion. That's right: You put in your money or your credit card, and you get wafer-thin gold bars or coins from the machine...
The gold ATM is made by a German company called Gold on the Go, which had its first machine operational in Abu Dhabi this year, and has had its gold vending machines operating in Germany, Italy and Spain. The one in Boca Raton will be the company's first in America.
Friday, December 17, 2010
Dear Friends of Liberty,READ THE REST OF THIS ARTICLE...
The Georgia Assembly has before it a piece of legislation that will financially benefit our state. Bill Greene, PhD, is the author of the Constitutional Tender Act (HB3). I’ve read HB3, heard Dr. Greene speak, and read his papers including the paper he presented at the MISES Institute. I believe HB3 is the single most important piece of legislation before the Georgia legislature for 2011. It forces the State of Georgia to comply with Article 1, Section 10, Clause 1 of the United States Constitution...
...Our Federal “representatives” have decided to ignore this part of the Constitution. Georgia HB3 begins returning our country to honest money by holding The Georgia State government to a verifiable and Constitutional standard...
Thursday, December 9, 2010
Every citizen needs to contact their Representative in the Georgia House TODAY and ask him or her to support HB 3, the Constitutional Tender Act!
Find your legislator's contact information at http://www.legis.state.ga.us/legis/2009_10/house/alpha.html
It's best to call your State Representative and ask him to sign on as a co-sponsor. If they respond with something like, "I'll vote for it if it gets on the floor," just tell them, "It CAN'T get to the floor unless you co-sponsor it FIRST. So will you?" If you're writing a letter, a fax or an email, here is a sample letter that you can copy and paste, or modify yourself, to send to your State Representative (download a PDF copy here):
Rep. [FIRST NAME] [LAST NAME]If we can literally overwhelm our legislators with emails, letters, faxes and phone calls, then we DO have a chance to restore our State to sound money, and sane Constitutional monetary policies! PLEASE TAKE ACTION TODAY!
Dear Rep. [LAST NAME],
As your constituent, I'm contacting you to ask you to please co-sponsor, and vote for, HB 3, the Constitutional Tender Act.
We are in an economic CRISIS, and we need a Sound Money solution NOW — before it’s too late, and the dollar loses all of its value.
This type of bill is needed because, due to the ever-widening circle of economic disaster that is affecting the citizens of every State, we MUST do something to at least begin the process of restoring sound money and a sound economy, even if (and especially if) the current federal administration refuses to do so.
This bill is also needed because Georgia, like every other state, is in violation of the U.S. Constitution (Article 1, Section 10) without such a bill (because the State is making some other "Thing" a Tender in Payment of Debts, both to and by the State). As a state legislator, you swear an oath to uphold that Constitution, so ethically and morally you need to do whatever the Constitution requires.
Please, put the people of Georgia and their well-being above any partisanship or politics, and especially above any fears about your "reputation" with others. What is important is the welfare of the citizens of this state, and the need to abide by the U.S. Constitution.
PLEASE, co-sponsor HB 3, the "Constitutional Tender Act," TODAY and vote for the bill in committee and on the floor -- but DON'T wait until it gets to the floor; it can't get there unless you co-sponsor it! I will be watching your actions on this bill very closely, and will remember them on election day.
You can find more information on this bill at http://www.ConstitutionalTender.com/.
[CITY], [STATE] [ZIP]
Wednesday, December 8, 2010
Original MP3: http://algainey.com/mp3/12-2-10_Dr_Bill_Green.mp3
The Al Gainey Show: http://algainey.com/
Original MP3: http://podcastmachine.com/podcasts/398/episodes/35338/media_files/81390/download/5/file_128kb.mp3
The Jody Hice Show: http://thejodyhiceshow.blogspot.com/
Monday, December 6, 2010
What's particularly relevant about this discussion is that, where the attempts at the national level to implement these steps have been halting at best, the Constitutional Tender Act actually builds on what HAS been accomplished and uses it to implement those steps starting at the STATE level... where they actually have the chance to SUCCEED.
The first step we need to take, writes Paul, is "Gold Coinage":
Under the Constitutional Tender Act (a proposed State law which re-applies the U.S. Constitution's negative mandate in Article I, Section 10, that "No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts"), the State would be required to only use gold and silver coins (or their equivalents, such as checks or electronic transfers) for payments of any debt owed by or to the State (e.g., taxes, fees, contract payments, etc.). All contracts, tax bills, etc. would be required to be denominated in legal tender gold and silver U.S. coins, including Gold Eagles, Silver Eagles, and pre-1965 90% silver coins. All State-chartered banks, as well as any other bank that is a depository for State funds, would be required to offer accounts denominated in those types of gold and silver coins, and to keep such accounts segregated from other types of accounts such as Federal Reserve Notes.
The heart of Mises's proposal to restore gold to our monetary system is a gold coinage. He wrote,
Gold must be in the cash holdings of everyone. Everybody must see gold coins changing hands, must be used to having gold coins in his pockets, to receiving gold coins when he cashes his paycheck, and to spending gold coins when he buys in a store.
In this one detail — the critical importance of the gold coinage — I believe lies the key to establishing a new gold standard.
We should make no mistake about it: the more progress we make toward reestablishing the gold standard, the more aggressive our opposition will become. Some vested interests, as you know, have a lot to lose if we succeed in getting the monetary system reconstructed on a gold basis. The first political step is, therefore, to get the coinage into circulation.
One objective might be to aim for every American to become a gold owner. We must encourage a broader base of political support for gold ownership and the availability of gold for personal economic objectives. Certainly a broader base of gold ownership in the country would help to reduce the threats of discriminatory taxation or regulation of gold ownership and gold coin transactions, which are seriously favored in Congress today.
So, with the ConTen Act, the foundation is now laid. Dr. Paul goes on:
And this is the beauty of the Constitutional Tender Act: instead of being a top-down, federal-level effort, it is a bottom-up, State-level effort, thus giving it a higher likelihood of eventual success (see my paper presented at the Mises Institute's Austrian Scholars Conference, "Ending the Federal Reserve From the Bottom Up: Re-introducing Competitive Currency by State Adherence to Article I, Section 10"). Upon going into effect, the ConTen Act would introduce currency competition with Federal Reserve Notes, by outlawing their use in transactions with the State. Ordinary citizens of the State, being required to pay their State taxes in gold and silver coins, would find it necessary to open bank accounts in those denominations. Businesses operating within the State, being required to pay their State sales taxes and license fees in gold and silver coins, would need to do the same; and in order to acquire such coins, they would begin to offer their goods and services in "dual currency" denominations, where customers could choose to pay in Federal Reserve Notes (which would still be necessary to pay Federal fees and taxes) or gold and silver coins (including checks and debit cards based on bank accounts denominated in such coins). Customers, having found the need to open such accounts in order to deal with the State, would be able to engage in commerce using those accounts.
What we must first do is get the coinage into circulation, and then build the political base to lock the government's fiscal folly with golden handcuffs. People have always understood the tangible value of gold coins in circulation. They don't need to agree or even understand the fine points of monetary theory to own gold coins, trade gold coins, or use gold coins to satisfy part of their marginal-utility demand for cash balances.
Most people understand very little about economics or monetary theory. When they see supposed experts in disagreement, the status quo wins by default, because nobody with the power to change it has the courage of conviction. The majority of voters see the debate among experts and hesitate to support any leaders with comprehensive reform schemes. This is why all efforts to rebuild a gold monetary system have met with frustration and stalemate in the past.
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). (Gresham's law is stated as, "Where legal tender laws exist, bad money drives out good money." A reverse of this would be, "In the absence of legal tender laws, when people are given the free choice between using and accepting good money or using and accepting bad money, bad money becomes less popular than good money, and is driven out of the marketplace.") 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 citizens residing 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. At that point, the Federal Reserve system will have become unwanted and irrelevant, and can be easily abolished by the people's elected Representatives in Washington, D.C. -- and thus open the door for a return to sound money, nationwide.
All of this can take place because Dr. Paul helped bring about the minting once again of legal tender U.S. gold and silver coins, which can now be used to return every State to its Constitutional mandate for honest money. He recognized that this first step was a necessity: "There must certainly be no restrictions on the private production of coins, but I believe that getting the US Mint further into the act, producing a gold coinage with some of the mystique of the government, will be useful in the further political stages of monetary reform. Honest money, after all, is a political objective; it is fitting that people should demand honesty from their government, as well as an economic policy that permits individuals to compete honestly." Now, with the Constitutional Tender Act, that political objective is within reach.
Tuesday, November 30, 2010
Discusses how the gold standard might effectively revive, from the private sector.Global opposition to Fed Chairman Ben Bernanke's policy, World Bank President Robert Zoellick's "trial balloon" and statements by some of the new Republican Congressional caucus have caused a modest revival in consideration of the Gold Standard. In my view, the chances of its revival by official means in the next 10 years remain infinitesimal, but there is an increasing probability of private sector activity in that direction. Not only politically, the bombed-out Gold Standard stock may have reached bottom and be beginning a modest revival.
The Gold Standard did not disappear because it caused the Great Depression (it had only modest fingerprints on that disaster) nor because Maynard Keynes called gold a "barbarous relic." In reality, its demise had a much simpler cause: the rising rate of global population growth, which caused it to become damagingly deflationary...
One advantage of commodity-based money over fiat currency, however, is that it does not require official sanction to come into existence. Whereas paper money requires a central bank and a national credit rating behind it to attain credibility (and even with this sometimes fails to do so, as in Zimbabwe, Weimar Germany or Latin America for much of the 20th century), gold-based money can come into existence through private activity.
There is some evidence that this is happening. Austria's Raiffesen Zentralbank now offers its clients gold-based accounts, and other banks are likely to follow. The SWIFT international payments system now allows payment in gold, an essential element in a currency's infrastructure in today's markets. Governments worldwide are competing to depreciate their currencies (or, like the hapless EU, watching their currencies come under fire as the weaker members of their union get into difficulties). At some point, a major exporter with a good competitive position—if you asked me to guess, from China or Germany—could start invoicing its customers in gold.
When that happens, a very important barrier will have been crossed. Once gold-denominated trade paper comes into existence, it will form the nucleus of a short-term money market, in the same way as the eurodollar market for assets and liabilities outside the United States arose in Europe after 1957 or so. Within a few years, gold bonds will be issued—once a company has gold-denominated receivables, it will have a natural hedge for such financing, which will remain cheap in interest terms even after conventional currency interest rates rise. It has happened before, in the formation of the eurodollar and eurobond markets in 1957-65. This time, once gold invoicing happens, the gold money and bond markets are likely to spring up quite quickly.
Banks, even outside Austria and Switzerland, will quickly get up the curve of offering gold-denominated accounts once their corporate customers demand them. They will find that a substantial demand exists at the retail level also. Here, modern technology will be very helpful. An ordinary citizen will be able to use a gold-denominated account for day-to-day transactions by means of a debit card, without the need to carry round expensive sovereigns or double eagles. A payment of $9.50 for a sandwich will be satisfied by the debit card, which will pay dollars (say) to the sandwich bar while debiting the account about 0.007 ounces of gold, using that day's gold price.
The card holder will pay perhaps 1% extra for everything, to cover the cost of the gold/dollar exchange transactions; but on the other hand, since his cash holdings are in gold, he will very likely gain much more than that percentage in dollar terms each month. His wealth will be expressed as so many ounces of gold (or kilos, if he is European), but he will never need to hold physical gold at all—or any other currency, though probably he will get a few dollars from the bank's cash machine each month for expenditures for which his debit card is not accepted.
In this way, both corporate and individual users will be able to move their transactions and holdings to gold, with the banks adapting to meet their needs. The banks will remain regulated by national authorities, and will have to manage their gold assets, liabilities and capital in such a way as to avoid breaching the authorities' leverage ratios, based on the gold price at the end of each reporting period...
CLICK HERE TO READ MORE...
(original link here - now broken)
I don't agree with this article's solution in its entirety (it's too Fed-based; obviously, implementing the Constitutional Tender Act at the State level would be the best solution!). However, I am happy to see more and more solutions being proposed in order to take us away from fiat funny money, and back to sound money.I think that my readers will agree that there is a desperate need for some fresh thinking about money in the U.S.
Many respected analysts worry that the expected action by the Fed to apply a new bout of QE after the coming elections is fraught with danger.
Fiat money in the US is in an advanced stage of decomposition and when money rots, the whole social, economic and political structure of the nation rots with it. A return to sound money is urgent. More and more people are aware of the perilous road ahead if nothing is done.
The problems facing the US are so gigantic in nature, that an all-round solution to them is impossible when analyzed in practical terms. A return to sound money is a return to gold and silver as currency. Gold is outstanding as money – but how to realize that goal? Silver is great for popular use – but again, how to regain it?
The only way open to regain a sound footing of real money for the US economy must be by establishing a process through which there will be a gradual and natural return to sound money. It is impossible to reform or improve the present monetary system of the US any other way.
The US abandoned sound money in a series of gradual steps; the first metal out of the monetary system was gold, in 1933; the second metal out of the system was silver, in 1965. The return to sound money would follow those steps, in inverse order: silver would return first, because silver has always been the money of the people; gold would return last, silver having opened the way.
CLICK HERE TO READ MORE...
This comes from the "Asociación Cívica Mexicana Pro Plata A.C." It's an interesting approach to solving that country's rising inflation woes...We have been proposing the monetization of a silver coin in Mexico since 2001. According to our proposal a one-ounce coin of pure silver, with no engraved value, would be given a monetary value by the Mexican Central Bank. This coin would exist and circulate as money, in parallel with the paper money system of Mexico.
The most interesting section is here:
The silver coins that go into circulation will be money, but will hardly be used for purchases. It will be difficult to find these coins, as they will all be treasured up by the Chinese population. Their velocity of circulation will be close to zero and thus they will have no inflationary effect upon the economy. Paper Yuan are withdrawn and replaced with silver money which goes into savings; this is a correct way to fight inflation.
Saving these coins will amount to voluntary austerity for the Chinese. Saving is the postponement of consumption. Voluntary austerity is always more effective and sounder from an economic point of view than the forced savings beloved of Statists, who have dictated taxes and scarcity for consumer goods so that the Statists can build factories.
The monetization of a silver coin will be a free-market decision that prompts people to save, spontaneously, of their own accord, and which does not require raising interest rates to draw the people’s money out of the economy into savings.
The monetary value would be superior to the bullion value of the silver ounce by about 15%. This margin would allow a profit, called “seigniorage”, for the Central Bank. Since the coin would not have an engraved value, rises in the price of silver (which would tend to eliminate the seigniorage of the Central Bank) would be met with new, higher, Central Bank quotes for the monetary value of the coin.
The rises in the value of silver in the silver markets of the world would no longer cause the disappearance of the monetized silver ounce. As soon as a rise in the price of silver would begin to affect the seigniorage of the Central Bank, it would produce a new and higher quote.
In order for the silver coin to become money and cease to be a commodity, the last quote of the Central Bank would have to remain stable and not diminish if and when the price of silver were to fall, which of course it does from time to time. Granted such immunity from falls in the price of silver, the coin would become legal tender money and could be used for any commercial transaction.
Now we read that China is having problems with inflation of its money supply. We think that if China were to monetize a silver coin, its Central Bank would have an effective instrument to assist in dealing with inflation.
China used silver exclusively as money for many centuries and restoring it to circulation in China would seem appropriate for China, as it aspires to recover its former glory as the richest country in the world.
CLICK HERE TO READ MORE...
Tuesday, November 16, 2010
The "Constitutional Tender Act" has been re-introduced in the Georgia House of Representatives by Rep. Bobby Franklin (R-43), a member of the Georgia House Banks & Banking Committee, for the 2011 Session of the Georgia Legislature. The bill number is HB 3.
It will take a strong dose of involvement from citizens across the country to get our States back on track using Constitutionally-mandated money, so we'll need YOUR help!
Every citizen TODAY needs to contact the Leaders of the Georgia House of Representatives and ask them to support this bill -- CLICK HERE to take action NOW!
Monday, November 15, 2010
Back in October, we mentioned that ATMs that sell gold bars - that is, they convert fiat money into real money - are now operating in luxury hotels in Abu Dhabi, Bergamo and Madrid as well as around Germany.
I just noticed that a few months before that, in May, Joseph Salerno wrote on the Mises Economics Blog about the start of this enterprise:
It appears technology has moved the world one small step closer to a sound money. On Wednesday, a hotel in Abu Dhabi unveiled the GOLD To Go ATM, a gold dispensing vending machine created by a German firm. The machine dispenses 24-carat gold bars in 1, 5, and 10 gram sizes as well as gold coins. A computer inside the machine keeps track of the gold price in real time and updates it every ten seconds but maintains the price for a given buyer for ten minutes. The machine itself sports a gold leaf finish. There are plans to install 200 more machines in Austria, Germany, and Switzerland. It is noteworthy that the technology of tracking the gold price in real time could be adapted to tracking the gold-silver exchange rate thus reducing the transactions costs and facilitating the development of gold and silver parallel standards. Silver coins would be much more convenient than gold coins for everyday transactions. At current prices, a 1 gram silver bar would have a purchasing power of about $.70 and a 5 gram bar of about $3.50. “Small change” would be provided by bearer vouchers printed on base metal or on paper notes issued by nationnwide merchants like Walmart, McDonald’s, Best Buy etc. which would not be claims directly redeemable in gold or silver money but redeemable in their merchandise (like mall or store gift certificates). As long as these vouchers were not issued in excess they would be readily acceptable as small change in exchange.This is exactly what we're saying can and would happen after passage of the Constitutional Tender Act: businesses and consumers, who would now be required to use gold and silver coins to pay taxes to, or receive payment from, the State, would find themselves in need of converting their fiat Federal Reserve Notes into real money, that is, gold and silver coins. They would still be using FRNs in non-State transactions, of course; but as businesses start posting their prices in dual currencies (FRNs and Gold or Silver Eagles) in order to take in coins to pay taxes, consumers would start seeing that the prices of goods are rising in FRNs, but they're remaining fairly level in Eagles. (For example, that digital camera at Wal-Mart is priced today at 1 Silver Eagle, or $29 FRN; next month, its price has risen in FRNs to $32, but is still priced in silver at 1 Silver Eagle, because that one-ounce silver coin retains its actual value in relation to the amount of products it can buy.) In a kind of "reverse Gresham's Law" effect, the use of money that keeps its value - gold and silver coins - would increase, and the use of money that loses its value - FRNs - would decrease: good money would chase out bad money.
Even simpler will be the use of ATM Cards, Debit Accounts OR "Secure Credit Cards" backed by gold and silver: you've got 20 Silver Eagles in your account from your recent State income tax refund; the cashier runs the camera you want over the scanner, you swipe your card and choose from, say, "FRN credit", "FRN debit", "Silver/Gold credit" or "Silver/Gold debit" on the little touch screen; you select "Silver/Gold debit", pay a Silver Eagle out of your account and into Wal-Mart's, and voila, the camera is yours... and Wal-Mart has another ounce of silver it can use to pay its own State sales taxes.
What if you don't have enough silver in your bank accounts to pay for the camera, but you do have enough fiat money? Then pay with FRNs... or whip out your iPhone, fire up your banking app, and transfer some FRNs into your Silver account by using your friendly bank's automatic conversion service which keeps track of the silver and gold price in real time - just like those "gold ATMs" above do.
It's simple. It's easy. It's already being done. And it would save the monetary system of the State and, ultimately, of these United States.
So get your State legislators to introduce the Constitutional Tender Act bill - and then rally everyone to make sure it's passed into law... before it's too late.
Tuesday, October 26, 2010
The thing that I have seen on the ground, though, is a disproportionate amount of mainlanders in the shops and banks buying physical gold for storage here in Hong Kong.This isn't rocket science, folks. Banks will continue to fail under the current system (Georgia leads the way) - it's time to dump the fiat paper money, and embrace real money that holds real value: Gold and Silver, the only Constitutional Tender allowed to States.
In Asia, it’s common to use a measurement for gold called a Tael, which is roughly 1.215 troy ounces. They sell locally minted products at 990 fineness at very low premiums: at one of the banks I visited, the premium was only 5 HKD (less than a buck) plus 1% above spot.
9999 fineness (Maple Leaf coins and the like) sell for a bit more, but not much.
This morning I saw mainlanders scooping up these deals like it was the day after Thanksgiving in Wal Mart. They don’t take the gold back to China, they leave it here at a number of banks or facilities. Secure storage is in such high demand, in fact, that there is a 5-year waiting list for larger boxes.
Banks in Hong Kong have responded with some innovative products - they offer deposit accounts that are denominated in gold (taels), and on top of this they also offer a line of credit for up to 70% of the bullion on deposit.
Sunday, October 17, 2010
The United States Constitution declares, in Article I, Section 10,
“No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts.”State-Level Constitutional Tender laws seek to nullify federal legal tender laws in the state by authorizing payment in gold and silver or a paper note backed 100% by gold or silver.
The concept of Honest Money is lost on most US citizens, thanks in part to a complete and utter lack of discussion in public schools and universities, but certainly not lost on the elite financial organizations who vehemently oppose such reform. When Nixon decoupled the dollar from its traditional gold backing and replaced it with fiat debt (private Federal Reserve notes) in 1971 because we could no longer cover our bets with gold, he substituted the last vestige of real value (our dollar) with a promissory note (debt) representing nothing more than the willingness and ability of US citizens to shoulder the artificially created debt burden via taxes.
The current private US Federal Reserve, the third central bank in our history, creates money from nothing but the unacceptable privilege to do so, making an arbitrarily agreed upon bookkeeping entry and thus creating an imaginary value which it then extends to their private member banks to trickle down to Main Street, or tells the Treasury they have a like amount of credit to either print money or issue Treasury bills with nothing to back it but an elaborate accounting and taxing scheme which can be viewed as a tenuous financial house of cards.
VIEW FULL ARTICLE...
Friday, October 1, 2010
Original Link: http://www.cnbc.com/id/39381947
A German firm that installs and manages gold vending machines aims to introduce them into the United States this year as it expands rapidly to take advantage of demand for bullion in times of economic uncertainty.
Thomas Geissler, creator of the Gold to Go brand and chief executive of Ex Oriente Lux, told Reuters on the sidelines of the London Bullion Market Association conference that the company aims to issue a "couple of hundred" machines next year.
Gold to Go launched its first ATM in Abu Dhabi's Emirates Palace hotel in May. They are now operating in luxury hotels in Abu Dhabi, Bergamo and Madrid as well as around Germany.
"This year we will issue around 35 machines, and for next year we are looking for bigger numbers," Geissler said on Monday, standing in front of one of the ATMS, which was coloured and shaped like a giant gold ingot close to 2 metres tall.
The machines, which update the gold price every 10 minutes to match international markets, take cash or credit cards and dispense small bars—including 1 gram, 5 gram, 10 gram and 1 ounce units—as well as coins such as South African Krugerrands, Australian Kangaroos and the Canadian Maple Leaf.
The company's plans include expansion into the United States this year, first in Florida and then in Las Vegas, Geissler said.
As for major gold consumers India and China, that will have to wait for next year, he said. "We have large interest in these countries," he said. "This is the task for next year."
Gold's rally this year has come largely as a product of investor unease over the economy.
This nervousness has been reflected in high sales of coins and bars from national mints, particularly last year as the world emerged from recession and this year as concerns have persisted about the risks to recovery.
With the gold price near record highs, there is a danger that demand from people on the street for gold products could tail off, however.
"Whether gold drops to $500 or goes to $2,000, we are living from small spreads, and we give people the best price they can get on a minute basis in the machine, so we're pretty fine with any price," Geissler said.
Gold to Go, which obtains the gold bars from refiners in Germany and Switzerland, first tested the machines in 2009.
Spot gold was quoted at $1,297.95 an ounce at 1235 GMT on Monday, up by over 18 percent this year and by over 80 percent since the unfolding of the credit crisis in late 2008.
Wednesday, July 28, 2010
The UK Telegraph had an interesting article on Sunday, entitled "The Death of Paper Money". It talks about a couple of books that are suddenly in demand among "elite banking circles" - books dealing with the causes and results of past hyper-inflations.
Both books are out of print in the U.S., but both of them can also be downloaded for free online:
Dying of Money: Lessons of the Great German and American Inflations, by Jens O. Parrson (1974)
When Money Dies: The Nightmare of the Weimar Hyper-Inflation, by Adam Fergusson (1975)
You can also buy a new paperback reprint of Fergusson's When Money Dies from the UK Amazon for under $30.
So, when unbacked fiat paper money dies... will we finally return to Constitutional Tender?
Friday, July 23, 2010
Thursday, July 15, 2010
Make sure you watch the short videos.
New types of money are popping up across Mid-Michigan and supporters say, it's not counterfeit, but rather a competing currency.
Right now, you can buy a meal or visit a chiropractor without using actual U.S. legal tender.
They sound like real money and look like real money. But you can't take them to the bank because they're not made at a government mint. They're made at private mints.
In part one of NBC25's special series "Competing Currencies," NBC25's Dan Armstrong showed how the government says any private business can accept or refuse any kind of payment.
In part two, Dan goes deeper, discovering why certain businesses say it's better to have private currency than actual U.S. legal tender.
There was a time in America when you could buy four gallons of gas for a dollar.
That dollar came in the form of a coin, around one ounce, made mostly of silver.
In today's market, that same coin is worth about 10 times its face value because of the silver.
Therefore, that same coin in theory, could still buy around four gallons of gas.
Friday, July 2, 2010
Gold: The "New" Money
by Paul Nathan
Ben Bernanke said in testimony in front of congress that he did not understand what was causing the gold price to go up. In fact he said he didn't understand gold. Larry Kudlow has been asking everyone on his program "what is causing the price of gold to move up?" The use of the term "gold standard" and "new reserve currency" has been used more in the last few months than in the last few decades. Perhaps that is the tip off...
My suggestion to Ron Paul and all those wanting to return to gold, is the best way to accomplish this is not by proclaiming your determination to replace the Federal Reserve Board with the gold standard, but to attack the legal tender laws of this country. I was one of the few back in the early 70's along with Ron Paul that fought for the legalization of gold to be allowed back into the American system. That was the first step in returning to the gold standard. Today is very much the same. The next step is to institutionalize competing monies.
The key is to go after the governments monopoly on money. If broken, gold will find it's way into the monetary system, as it is today, and reclaim it's superior role as long as it is not prevented from doing so. Legal tender laws do just that. They prevent choice.
Today, to be an advocate of a gold standard is to be laughed at and ridiculed as naive. But, to be against legal tender laws, wipes the snickers off the face of those against gold very quickly. To be against legal tender laws is to be for freedom of choice and against government coercion. You will not find the same chuckles from "intellectuals" when confronted with a proposal of this nature. On the contrary, you will find terror...
In my opinion the private market is in the process of developing a private competing money. No one can predict where this will lead us, but it is happening as we speak. We are seeing the emergence of gold ATMs whereby individuals can convert dollars for gold on demand. If those machine eventually are equipped to also accept gold for paper money, we will have the specter of convertibility on street corners everywhere.
"We are going to make gold public with these machines," said Thomas Geissler, CEO of Ex Oriente Lux AG, which owns “GOLD to go." Fifty thousand machines are being produced to be placed in countries all over the world. And retailers such as Sears and K-Mart have announced they will now be dealing in gold. Companies that buy gold are everywhere, and companies that sell gold are increasing. Convertibility is becoming an industry. This is a further sign of the establishment of the "new" private money.
How this will evolve, not even the market "knows". But it is obvious the market is telling us that there is a demand for gold as money. Will we start computing commodity prices, stock values, and possibly all prices in terms of gold as well as the dollar to know whether we have deflation or inflation and to what degree? Will credit card companies start pricing and translating purchases of goods and services in terms of dollars and gold as they do foreign currencies? Will financial institutions store gold as a new form of savings account, en masse? In a new world of modern technology there is no telling how gold will be used, but it is being explored by entrepreneurs world wide as we speak...
Friday, June 25, 2010
The Tenth Amendment Center has just released a TAC-approved suite of legislation - including the Constitutional Tender Act - that covers issues all over the political spectrum. Whether it's states standing up for your rights to your own health decisions or your right to grow what plant you want to, this legislation demands that states do their duty – and protect your rights from all comers. Pick one model act out – and urge your state politicians to introduce it next year. The time to act on that is now!
Wednesday, June 23, 2010
"The power to make any thing but gold and silver a tender in payment of debts, is withdrawn from the States, on the same principle with that of striking of paper currency." James Madison, Federalist, no. 44, 299--302
Read More: The Founders' Constitution
Monday, May 31, 2010
Hart's Silver Gem Act held in Senate committee
The Idaho Silver Gem Act, sponsored by Representative Phil Hart (R-Athol) failed to pass the Senate Local Government and Taxation Committee today. The motion of Senator Joe Stenger, (R-Lewiston) to hold the bill in committee passed nearly unanimously, with committee chairman Senator Brent Hill (R-Rexberg) voting against the motion. Senator McKague's (R-Meridian) motion to send the bill to the Senate floor without recommendation was not seconded.
Stenger objected to the special treatment that would be given to silver processing facilities, saying that other businesses in the state would be equally deserving of the property and income tax exemptions promised by the bill, which were included as incentives to invest in new operations in the state. Stenger also objected to bill placing the state treasurer in the position of a commodities trader, saying that the additional workload was not justified by the benefit. Sen. Mike Jorgenson (R-Hayden) echoed Stenger's concerns, adding that for the treasurer to engage in commodities trading would "not be a healthy position" for Idaho.
Hart emphasized the potential the bill would hold for jobs creation and was joined by three Idaho residents warning of the damaging effects of the use of the "fiat currency" of the Federal Reserve. Hart mentioned that between 1792 when Congress minted the first US coins and 1913 (when the Federal Reserve Act was passed), the total inflation was 17%, while inflation has been 3200% since 1913.
In hist testimony, Hart shared the estimate of Bob Hopper of Bunker Hill Mining Company that the bill could put 400-800 miners to work in north Idaho, which Hart said would be joined by another 1.3 times that in jobs in supporting industries. Hart said much of Idaho's silver is currently exported to countries including Canada, China and India.
Hart also addressed environmental concerns, mentioning the modern hydrometallurgical technology that would be used in new silver processing facilities. He also suggested that the establishment of silver operations could lead to the clean up of mining tailings at superfund sites containing valuable indium. Hart estimated an additional $5-10 million in tax revenues resulting from the creation of jobs and up to $80 million with cleanup efforts.
Hart said he would have to meet with the members of the committee individually if he was to address their concerns.
Copyright 2010 Examiner.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Wednesday, May 12, 2010
Ye Olde Specie | Idaho silver-based currency bills might have failed, but the 'sound money' movement marches on | Innovation | Boise Weekly
Ye Olde Specie | Idaho silver-based currency bills might have failed, but the 'sound money' movement marches on | Innovation | Boise Weekly
On a sunny Monday in January, Reps. Phil Hart and Lenore Hardy Barrett stood on the Idaho Capitol steps and introduced a crowd of Tea Partiers to two pieces of legislation that would have remade the state's economic landscape.
The Idaho Silver Gem Act, fronted by Hart, an Athol Republican, proposed that Idaho citizens ought to be able to pay their taxes with special medallions or bars struck from silver mined in North Idaho's Silver Valley--part of Hart's home district.
The Idaho Constitutional Tender Act, introduced by Barrett, a Republican from Challis, went even further. It sought to make silver and gold--both in physical coins and electronic ounces drawn from an online exchange--just as valid as Federal Reserve notes for the purchase of everything from groceries to new cars to property.
With similar bills floated in at least seven states, Tea Partiers chanting "end the fed" and the Idaho Republican Party adding "sound money" to its platform in 2008, the gold (or silver) standard may be making a comeback.
Posted using ShareThis
Friday, May 7, 2010
Tuesday, March 23, 2010
We've pushed hard over the past year for HB 430, the "Constitutional Tender Act," here in Georgia. We got it a large hearing before two combined subcommittees - something that had never been done before with a bill like this. But then, the subcommittee chairs wouldn't hold a vote on the bill, in order to send it up to the full committee for a hearing and vote; so, we couldn't get it to the full House for a vote, either.
(Feel free to contact the chairmen of the subcommittees, Mike Coan and Calvin Hill, to let them know what you think of them bottling up this simple bill to return Georgia to its Constitutional requirements of sound money.)
Last month, we saw a new bill introduced on the Senate side: SB 416, the "Sound Money in Banking Act," which is basically one-half of the Constitutional Tender Act (the half dealing with getting banks to offer accounts based on legal tender Gold Eagles and Silver Eagles). This bill quickly garnered the co-sponsorships of over 25% of the Senate Banking and Financial Institutions Committee; however, the chairman of that committee, Sen. Bill Hamrick, has yet to bring the bill up for debate and a vote.
After Friday, it will be too late. So, this is the last chance we'll have this session to get any sound money bill through the Georgia legislature.
This week, I faxed a letter to 1,079 bank presidents across Georgia, which said this:
I'm writing to you today to ask you to take a very important action in order to SAVE the rapidly failing banking industry in the State of Georgia.I've also sent a message to all 1,296 members of our ConTen Facebook cause/group, asking them to contact Sen. Hamrick as well. I've done the same to the 5 co-sponsors of the bill. And, of course, I've contacted Sen. Hamrick directly, to make my case once again.
As you know, times are tough for banks right now. In fact, Georgia is leading the nation in the number of bank failures over the past year. More than three out of five Georgia banks were unprofitable in 2009, over twice the national average. The banking industry desperately needs new ways of bringing in business, customers, and money.
Thankfully, State Senator David Shafer, a member of the Senate Banking and Financial Institutions Committee, has introduced SB 416, the "Sound Money in Banking" Act. This bill would require any bank serving as a depository for the state to offer and accept legal tender gold and silver coins for deposit. Such a bill could SAVE the banking industry - and YOUR bank.
If banks in Georgia were to allow their customers to establish legal tender gold and silver accounts, there will be a HUGE influx of customers not only from across Georgia, but from across the nation; this is the Georgia banking industry's best opportunity to attract the record-breaking legal tender silver and gold coin business, now at over 30 million Silver Eagles and nearly 2 million Gold Eagles per year. That would be an increased reserve of over $2.2 BILLION in value in Georgia's banks - and NO other state is offering this service in its banks!
Right now, over 25% of the members of the Senate Banking and Financial Institutions Committee are already co-sponsors of this bill. But in order for the bill to continue to move forward, we need for SB 416 to be voted OUT of committee, and passed in the full Senate - before THIS FRIDAY, March 26th! Otherwise, the bill will DIE this year.
Right now, I'm asking you to please contact Sen. Bill Hamrick, the Chair of the Committee, at 404-656-0036. Ask him to schedule a hearing and a vote for SB 416, the "Sound Money in Banking" Act, THIS WEEK. Next week will be too late. The future of banking in Georgia is depending on YOU right now. Thank you.
And now, I'm asking YOU to do the same. Please call Sen. Hamrick at 404-656-0036, email him at email@example.com, and/or fax him at 404-651-6767. Ask him to please schedule a hearing BEFORE FRIDAY for SB 416, and tell him why it's important: to save the Georgia banking industry, and restore sound money for our citizens.
Thank you for your help, and your support. Let's keep pushing. We have to; it's our moral duty to our neighbors and fellow citizens.
Thursday, March 18, 2010
Dear Supporter of Sound Money,
We have four favors to ask of you - and we are asking every last one of you, PLEASE take action TODAY. As the largest grouping of supporters of Sound Money and Constitutional Tender, we CAN influence the 2010 session of the Georgia State Assembly, but ONLY if people step up and are heard. The next seven days need to be busy ones for you, the Sovereign Citizens. Let's take advantage of our numbers and commitment to the cause.
"Crossover day" is fast approaching. This is the day when bills that do not pass one chamber or the other are DEAD. This year, it appears that crossover day is going to be next Thursday, March 25, 2010. This date is only ONE WEEK AWAY.
Our two supported bills - HB 430, the "Constitutional Tender Act," and SB 416, the "Sound Money in Banking Act" - are still alive and kicking. HB 430 has had a big hearing before the Banks and Banking Committee's combined Financial Institutions & Services Subcommittee / Regulations & Oversight Subcommittee; and SB 416 has received the co-sponsorship of a full 25% of the Senate Banking and Financial Institutions Committee!
HOWEVER, neither of the bills have been voted on by their full committees, in order to get them a full vote on the floor of the House and Senate. Again, a floor vote MUST take place by Thursday. We have worked through the schedule that we provided our supporters for contacting the House and Senate Committee Members - without success. TIME IS NOW SHORT. Personal contacts are best, but if you cannot do that, then PLEASE write, email, fax, and call on the telephone. With almost 3,000 members, we should be able to FLOOD them with paper over the next week.
PLEASE do the following four things:
(1) If you have not yet contacted the House Banks & Banking Committee Chairman, Rep. James Mills, PLEASE do so. Mail a paper letter, and, in addition, fax it if you have access to a fax machine. Send an email, and call. If you previously sent an email, then write a paper letter, mail it, fax it, and call.
228 State Capitol
Atlanta, GA 30334
Gail Morgart: firstname.lastname@example.org
Nataliya Nemsteva: email@example.com
3948 Kilgore Falls Drive
Gainesville, GA 30507
Phone: 770-967-6801 (Home)
(2) If you have not yet contacted the Senate Banking & Finance Committee Chairman, Sen. Bill Hamrick, again, PLEASE do so. Mail a paper letter, send an email, and call. If you missed one or more of those methods of contact, such as you called on the telephone but did not do the others, then now is the time to do the others.
121-H State Capitol
Atlanta, GA 30334
Laurie Sparks: firstname.lastname@example.org
P.O. Box 368
Carrollton, GA 30112
(3) Then please select at least three Representatives from the Banks & Banking Committee at random (making sure to include your own as one of the three if your Representative is on the Committee), and write, email, and call those three Representatives:
Hill, Calvin (R-21) Vice Chairman 404-656-0129 email@example.com
Hill, Cecily (R--180) Secretary 404-656-0177 firstname.lastname@example.org
Allison, Stephen (R-8) Member 404-656-0177 email@example.com
Benfield, Stephanie (D-85) Member 404-656-7859 firstname.lastname@example.org
Coan, Mike (R-101) Member 404-656-6801 email@example.com
Collins, Toney (D-95) Member 404-656-0265 firstname.lastname@example.org
Cox, Clay (R-102) Member 404-656-5139 email@example.com
Dawkins-Haigler, Dee (D-93) Member 404-656-0287 firstname.lastname@example.org
Ehrhart, Earl (R-36) Member 404-463-2247 email@example.com
Fludd, Virgil (D-66) Member 404-656-0314 firstname.lastname@example.org
Frazier, Gloria (D-123) Member 404-656-0265 email@example.com
Harden, Buddy (R-147) Member 404-656-0109 firstname.lastname@example.org
Houston, Penny (R-170) Member 404-463-2247 email@example.com
Jordan, Darryl (D-77) Member 404-656-0116 firstname.lastname@example.org
Kaiser, Margaret (D-59) Member 404-656-0265 email@example.com
Knight, David (R-126) Member 404-656-0152 firstname.lastname@example.org
Marin, Pedro "Pete" (D-96) Member 404-656-0314 email@example.com
Mayo, Rahn (D-91) Member 404-656-6372 firstname.lastname@example.org
Morris, Greg (R-155) Member 404-656-8441 email@example.com
Nix, Randy (R-69) Member 404-656-0177 firstname.lastname@example.org
Parrish, Butch (R-156) Member 404-463-2247 email@example.com
Peake, Allen (R-137) Member 404-656-7146 firstname.lastname@example.org
Reese, Bobby (R-98) Member 404-656-0254 email@example.com
Rice, Tom (R-51) Member 404-656-5912 firstname.lastname@example.org
Scott, Martin (R-2) Member 404-656-0254 email@example.com
Shaw, Jay (D-176) Member 404-656-7859 firstname.lastname@example.org
Sheldon, Donna (R-105) Member 404-656-5025 email@example.com
Sinkfield, Georganna (D-60) Member 404-656-6372 firstname.lastname@example.org
Smith, Earnest (D-122) Member 404-656-6372 email@example.com
Talton, Willie (R-145) Member 404-656-0254 firstname.lastname@example.org
Weldon, Tom (R-3) Member 404-656-0152 email@example.com
Williams, Mark (R-178) Member 404-656-0188 firstname.lastname@example.org
The link for the Rules Committee members is listed here: http://www.facebook.com/topic.php?uid=207293055169&topic=11904 . Please do not copy all of the Representatives on the Committee on an email. The emails are much more effective if they are sent from one individual Georgian to one individual Representative.
(4) Then please select at least three Senators from the Banking & Finance Committee at random (making sure to include your own as one of the three if your Senator is on the Committee), and write, email, and call those three Senators.
Hudgens, Ralph T (R-SS 47) - Vice Chairman - 404-656-4700 email@example.com
Butterworth, Jim (R-SS 50) - Secretary - 404-463-5257 - Jim.Butterworth@senate.ga.gov
Bulloch, John (R-SS 11) - Member - 404-656-0040 - firstname.lastname@example.org
Crosby, John (R-SS 13) - Member - 404-463-5258 - John.Crosby@senate.ga.gov
Goggans, Greg (R-SS 07) - Ex-Officio - 404-463-5263 - email@example.com
Harbison, Ed (D-SS 15) - Member - 404-656-0074 - firstname.lastname@example.org
Murphy, Jack (R-SS 27) - Member - 404-656-7127 - email@example.com
Pearson, Chip (R-SS 51) - Ex-Officio - firstname.lastname@example.org
Thompson, Steve (D-SS 33) - Member - 404-656-0083 - email@example.com
The link for the Banking & Finance Committee members is listed here: http://www.legis.ga.gov/legis/2009_10/senate/banking.php . Please do not copy all of the Senators on the Committee on an email. The emails are much more effective if they are sent from one individual Georgian to one individual Senator.
2010 is the last year of a two year session. March 25, 2010 will be the last day to pass HB 430 out of the House and cross it over into the Senate, and the last day to pass SB 416 out of the Senate and cross it over into the House. PLEASE DO NOT DELAY!
The devaluation of Federal Reserve Notes - the U.S. Dollar - will grind on with or without your participation. The time to act is NOW if you wish to influence the passage of HB 430 and SB 416 and restore Sound Money to Georgia -- and then to the country. WE HAVE ONLY ONE WEEK LEFT. Let's make the best of it. Please make the contacts needed to pass HB 430 and SB 416 out of House and Senate.
Wednesday, March 10, 2010
View the bill here.
Contact your Idaho State Representative here.
Back To The Gold Standard
Posted: March 9, 2010 11:35 PM
Updated: March 10, 2010 12:15 AM
By Emma Jade, Local News 8 Reporter
BONNEVILLE CO. - Silver and gold - not many of us have much of it lying around, but imagine exchanging a gold piece for a bag of groceries. It's not as ridiculous as it sounds. There is a new bill being discussed in the State House of Representatives that would legitimize trading gold for merchandise. An interesting idea - what do local people think?
"Here is some Horizon Organic Milk for about six dollars," said Broulim's Store Manager, Lee Jephson. "If a person would come in and give me a silver piece and expected me to value the coin and get the value out of this and give them change back, it would be hard and would we be fair? Would we know what to do and how to do it?"
The cash in your wallet, those credit cards you have stacked-up, could be joined by bits of gold and silver.
"I mean I have a wallet but I don't want to put gold and silver in there," said local shopper, Annette Call. "If somebody would see it they'd take it from me."
It sounds a little off...
"It seems very strange. I don't see how it would make sense with the advances we've made to this point," said Idaho Mountain Trading Manager, Cindy Croft. "It'd be like going backwards."
But a bill being discussed in the Idaho Legislature is trying to make it a reality.
Let's say you owned two American Eagle one ounce silver coins. If the bill passed, you could take the coins to an exchange to open an account. The account could transfer the worth of those coins to a business or even a debit card.
The bill even takes it one step further saying businesses could advertise their products in ounces of silver or gold.
"I'm not sure where silver is but bring in your silverware and maybe we can trade you for a boot," joked Idaho Mountain Trading Manager, Richard Napier.
"First thing that went through my mind is it would be like we'd all become pawn shops," added Croft.
Many shoppers agree...
"I laughed - I said 'yeah, that's ridiculous,'" said Call.
"A little piece of plastic is a lot easier," said shopper, James McBride.
The bill is only a week old. Those on the Ways and Means Committee say it's a way of spending something of actual worth and not just a Federal Reserve Note.
However, local businesses and shoppers think it's just too much of a hassle.
You can voice your opinion about House Bill 622 by contacting your Idaho Legislators. For their contact information, visit: http://www.legislature.idaho.gov/
This Act would not interfere with our dollars and cents in place now. Instead, it would encourage private persons and businesses to create a voluntary private money system based on gold and silver.
For information on the Conference, including speakers, schedule, topics, lodging, directions, and more, go to http://mises.org/events/114. I'd love to see you there!
Tuesday, March 9, 2010
We are making GREAT progress here in Georgia in advancing Sound Money and Constitutional Tender!
Our latest bill, SB 416, the "Sound Money in Banking Act" (to require any bank serving as a depository for the state to offer/accept gold and silver coin for deposit) was introduced in the Georgia Senate by Sen. David Shafer on Tuesday, 2/16 - almost EXACTLY one year after our original bill, the Constitutional Tender Act (HB 430), was introduced in the House!
See the bill here: http://www.legis.state.ga.us/legis/2009_10/sum/sb416.htm
The bill has been assigned to the Senate Banking and Finance Committee. That's a good thing, because over 25% of the Committee Members are already CO-SPONSORS of this bill! But in order for the bill to continue to move forward, we need for the next important step to take place:
The Chairman of the Committee MUST bring the bill up in Committee, and set a date for a full hearing on it.
So here's what we need to do now: the Committee Chair, Sen. Bill Hamrick, needs to schedule a full hearing on SB 416 -- SOON. The committee could then take testimony from lots of OUR experts on what exactly it would mean to carry out this bill. This would not only garner a LOT of publicity -- especially if we get some big names to come testify -- but it really WOULD educate these legislators on exactly WHY we need to pass this bill.
So, fellow Constitutionalists, we need to TAKE ACTION AGAIN! Here's how:
* Contact Sen. Bill Hamrick, the Chair of the Senate Banking and Finance Committee:
* Ask Sen. Hamrick to please schedule a hearing SOON for SB 416, the Sound Money in Banking Act, before the Senate Banking and Finance Committee;
* Remind Sen. Hamrick about why this bill is so important: because the citizens of Georgia, like every other State, are facing a large devaluation of the dollar because of the current administration's policy of bailouts and borrowing: the "Obama inflation". Directing banks to allow their customers to establish accounts based on legal tender gold and silver coins will provide a safe and convenient way for the citizens of Georgia to "hedge" against the "Obama inflation".
* You can also respectfully remind Sen. Hamrick that this bill is also needed because, with Georgia LEADING THE NATION in BANK FAILURES, the banking industry desperately needs new ways of bringing in business, customers, and MONEY. More than three out of five Georgia banks were unprofitable in 2009, over twice the national average. If banks in Georgia are directed to allow their customers to establish gold and silver accounts, there will be a HUGE influx of customers not only from across Georgia, but from across the nation; this is the Georgia banking industry's best opportunity to attract the record-breaking legal tender silver and gold coin business, now at over 30 million Silver Eagles and nearly 2 million Gold Eagles per year. That would be an increased reserve of over $2.2 BILLION in value in Georgia's banks -- and NO other state is offering this service in its banks!
To recap what we DESPERATELY NEED people to do:
* Contact. Sen. Hamrick at firstname.lastname@example.org and ask him to please schedule a hearing SOON for SB 416, and tell him why it's important.
THANK YOU SO MUCH -- it's because of people like YOU, who are willing to take a couple of minutes of your valuable time to do something like this, that we have a GOOD SHOT at getting this bill moved through the General Assembly this year -- and even introduced in other states!