Constitutional Tender

[VIDEO] "Ron Paul Explains His Plan For 'Monetary Freedom' And Returning To The Gold Standard" #ronpaul #GOP2012

2011-12-01T05:51:00.000-08:00

From the Zero Hedge partial transcript:

Ron Paul lays it out: "We know what to do - we did it once after the Civil War period, we went from a paper standard back to the gold standard, and the event wasn't that dramatic. But today the big problem is that both the conservatives and liberals have an big apetite for big government for different reasons, therefore they need the Fed to tie them over and monetize the debt. So if you don't get rid of that appetite it's going to be more difficult, but the transition isn't that difficult. You have to get your house in order; you have to balance the budget, you have to not run up debt, and you have to promise not to print any more money... I would like to have a transition period and just legalize gold money, gold and silver as legal tender, and work our way back... We want to legalize the use of gold and silver as the constitution dictates, rather than punishing the people who try to do that... I am quite convinced that the system we have will not be maintained - that's what these last 4 years was all about, and that's what the turmoil in Europe is all about. The question is are they going to move toward a constitutional form of money. or are we going to go another step further into international money - instead of having an international gold standard based on the market, are we going to go toward a UN, IMF standard where they are going to control with the use of force another fiat standard. I consider that a very, very dangerous move."

ORIGINAL VIDEO HERE...

[VIDEO] Sound Money Program in Utah

2011-11-17T14:48:00.000-08:00

SALT LAKE CITY, Utah (ABC 4 News) - Buying gold may be something many of us know is a good idea; but how do you actually buy gold, and how do you spend it when you need it?

The state of Utah has a new program that's designed to make both of those things easier. This morning, Sound Money Director, Larry Hilton, and Tea Party leader, Darcy Van Orden, joined us live in studio to talk about the "Sound Money Program."

ORIGINAL VIDEO PAGE HERE...

Ron Paul's Statement at Hearing on "Free Competition in Currencies Act" (HR 1098)

2011-09-14T15:34:00.000-07:00

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...

... Economics teaches that monopolies produce fewer goods and sell them at a greater price than in a competitive market. This leads to inefficiency, deadweight losses, and over time complacency on the part of the monopolist. Most mainstream economists fail to extend the theory of monopoly to the market for money. Government monopolization of the issuance of money fails to produce the sound money the market demands. The poor-quality money that is issued continues to lose its value, and the American people must work longer and harder for money that continues to decline in purchasing power. Meanwhile, government agencies and the banking system benefit from the first use of that money, being able to spend it and lend it before it circulates through the rest of the economy and before prices increase in reaction to this inflation.

The only way to counteract this problem is to break the government monopoly on the issuance of money. The Constitution does not grant the federal government this monopoly, a fact which was not in dispute for nearly a century after this country's founding. The federal government has become complacent, forgetting the need for sound money, and the only way to break this complacency is to break the monopoly. HR 1098, the Free Competition in Currency Act, intends to do just that...

...I hope that this hearing will start a vigorous discussion of currency competition, sound money, and how to return to a sound dollar. HR 1098 is certainly not a panacea, as there remain significant structural problems in our banking and monetary system that still need to be addressed. But allowing for competing currencies will enable Americans to choose a currency that suits their needs, rather than the needs of the government. The prospect of Americans turning away from the dollar towards alternate currencies will provide the necessary impetus to the US government to regain control of the dollar and halt its downward spiral. Restoring soundness to the dollar will remove the government's ability and incentive to inflate the currency, and keep us from launching unconstitutional wars that burden our economy to excess. With a sound currency, everyone is better off, not just those who control the monetary system.

READ THE FULL ARTICLE HERE...

Question to ask at Candidate Forum for Bobby Franklin's seat - @politicalinsidr http://bit.ly/qFG7c8

2011-09-10T09:56:00.000-07:00

On Monday, Sept. 12th, there will be a Candidates Forum in the Special Election race for the seat which was left vacant by the untimely death of the late Rep. Bobby Franklin.

Rep. Franklin, you will recall, was the lead sponsor of HB 3, the Constitutional Tender Act (along with many, many other excellent bills).

One of the panelists who will be questioning the candidates is a writer for the Atlanta Journal Constitution, Jim Galloway. Now, Galloway has asked his readers to make suggestions for what questions he should ask them.

Here's my suggestion, posted on his wall at the AJC:

Here's a question that's actually relevant to the office they're running for, AND the particular Member's seat they're looking to fill:
If you are elected, you will be required to swear before God this constitutionally-required Oath of Office: "I do hereby solemnly swear or affirm that I will support the Constitution of this state and of the United States, and on all questions and measures which may come before me, I will so conduct myself, as will, in my judgment, be most conducive to the interests and prosperity of this state."

Since you will be oath-bound to support the U.S. Constitution, as well as the prosperity of the State of Georgia; and since the U.S. Constitution, in Article I, Section 10, mandates that each State use ONLY gold and silver coins in all of its financial transactions; and since the federally-forced use of over-inflated Federal Reserve Notes has destroyed over 95% of the wealth of the citizens of the State of Georgia:
Will you pledge right now to sponsor the late Rep. Bobby Franklin's bill, HB 3, the "Constitutional Tender Act," which would return the State of Georgia to adherence to the United States Constitution's actual legal tender provisions and increase the State's prosperity?

I believe that economically, this is the most important question that could be asked at such a forum, because economically, there is no greater threat to the future prosperity of the State of Georgia and its citizens -- indeed, to the citizens of every single State in the nation -- than the Federal Reserve's destruction of their wealth through its over-inflation of unconstitutional fiat currency.

If you agree, and would like to support the passage of the Constitutional Tender Act in Georgia, please contact Jim Galloway to let him know that you would also like to see this question asked:

Email: jgalloway@ajc.com
Twitter: @politicalinsidr
Web: Political Insider with Jim Galloway

Thanks for your support!

"Thomas Jacob on the New Swiss Gold Franc"

2011-08-20T14:29:00.000-07:00

The Daily Bell is has this exclusive interview with Thomas Jacob:

Daily Bell: Please tell us about your idea for a gold franc.

Thomas Jacob: Gladly. The idea is the result of my interest in free market economics and especially my conviction that a commodity money is the most effective way to curb government involvement in the economy. The idea is simply to re-introduce an additional gold-coin currency in Switzerland on the constitutional level.

Daily Bell: Is this similar to the idea of a silver libertad being pursued in Mexico?

Thomas Jacob: The similarity is that it is a legal parallel currency and a commodity money. The difference is that the Swiss gold franc will be a privately issued money. The government’s role is limited to defining the appearance and the gold content of the coins and to protecting honest business practices.

Daily Bell: Where are you with your program?

Thomas Jacob: Dr. Ulrich Schlüer from the biggest party of Switzerland, the SVP [Ed.: Swiss People’s Party aka Democratic Union of the Centre], introduced a parliamentary initiative on March 8 – incidentally, the same day the Utah parliament [legislature] passed their gold law.

At the same time a group of dedicated politicians and economists, including I, have founded the gold franc association to coordinate the activities to help realize the idea on a non-partisan basis.

Daily Bell: What are the next steps?

Thomas Jacob: The appropriate commission will discuss the proposal probably in the winter session. They will either accept and work on it or it goes directly to the parliamentary floor. Should they also unexpectedly have no interest, we will start a popular initiative. With 100,000 signatures the voters can vote on it directly, independent of whether the politicians like it or not.

Daily Bell: Are you hopeful?

Thomas Jacob: No, I am confident. The time is right; the issue simple. We are talking about freedom of choice in monetary matters, something that cannot be opposed in good faith. It is not primarily about attacking today’s monetary system, but giving people the freedom of choice. If today’s monetary system remains as good as today’s authorities claim it is, they shouldn’t worry – if it isn’t, we, the people, shouldn’t be forced to use it.

READ THE FULL ARTICLE HERE...

"The Constitutional Tender Movement in Georgia"

2011-08-18T11:25:00.000-07:00

by William Greene, Ph.D.
ConstitutionalTender.com

In early 2009, I was teaching a course on American Government at Gainesville State College here in Georgia. As I was going over with my students the powers prohibited of the States in Article I, Section 10 of the U.S. Constitution, we hit upon this one: “No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts”.

A student in the back of the room raised his hand, and asked, “What does Georgia use for paying its debts – money owed to the State, and by the State?”

“Federal Reserve Notes,” I replied.

“Not gold or silver coins?” he asked.

“No, not gold or silver coins. And no, Federal Reserve Notes are not backed by gold or silver coins, either.”

He raised his hand again. “Which States DO use gold and silver coins for paying State debts?”

“None of them,” I answered. “They all use Federal Reserve Notes, which were declared to be ‘legal tender’ by the U.S. Congress.”

“When did we pass a Constitutional Amendment to change this requirement in Article I, Section 10?” He had a puzzled look on his face.

My answer seemed to puzzle him even more. “We didn’t.”

It was quiet in the classroom at that point. I waited. I didn’t have to wait for long.

“How have the States gotten away with that?”

I didn’t have an answer to that question. And it bothered me...

READ THE FULL ARTICLE HERE...

"Gold Standard or Nixon Standard"

2011-08-14T20:58:00.000-07:00

by Gary North, LewRockwell.com

On Sunday, August 15, 1971, Richard Nixon unilaterally brought to an end the last trace of an experiment in international monetary affairs that stretched back over a century. He announced that the United States government would no longer abide by the 1944 Bretton Woods agreement to deliver gold at $35 per ounce to any government or central bank.

What he abolished was not a gold standard. It was a government promise standard. There was never a gold standard in the nineteenth century or early twentieth century. It was always a government promise standard. It was as reliable as government promises...

...A free market gold standard should be the result of two legal arrangements: (1) open entry into the money business, (2) the enforcement of contracts. Gold would become one common currency. So would silver, if history is a guide. The government would get out of the money business altogether. It would claim no unique authority over money. It would decide the monetary unit in which to collect taxes – nothing more. It would enforce contracts, meaning lawful voluntary exchanges in which no fraud is involved.

This would decentralize and privatize money creation. It would also privatize and decentralize the fraud of counterfeiting. It would pit bankers against bankers, who would participate in bank runs against suspected banks. It would decentralize the enforcement against fraud.

By removing monetary sovereignty from governments, this arrangement would permanently keep fraud from becoming centralized and a matter of law. It would keep the fox of government away from the chicken coop of money creation. It would make impossible any replay of the string of broken contracts, 1914 to 1971, which marked the government promises standard which masqueraded as a gold coin standard, then a gold exchange standard, then a Tricky Dick Nixon standard...

READ THE FULL ARTICLE HERE...

"Monetary Reform: The Beginning of the Beginning"

2011-08-11T13:54:00.000-07:00

by Charles Kadlec
The @DailyReckoning

Fundamental reform of the world’s monetary system has begun. It is way too early and too amorphous to be front-page news. We are only at the beginning of the beginning of a popular effort to restore gold backed money to the center of economic activity.

Defining a dollar, or a British pound, as a fixed weight of gold was an innovation that further increased the usefulness of money. You could take currency and trade it for something you needed, or you could trade that money for a fixed weight of gold. As a general proposition, paying with paper money was no different than paying with gold, except paper money was more convenient to carry...

...Forty years ago, that order was up-ended by President Richard Nixon’s decision to sever the final link between the dollar and gold. For the first time since Sir Isaac Newton established the British gold standard in 1717, all of the world’s major currencies during a time of peace were free to float against one another and to fall in value against precious metals. The consequence has been a debasement of the dollar and all other currencies, an ever more cyclical economy, a 40-year hiatus in real wage increases for American workers and a growing fear of yet more financial crises created by monetary instability.

As a consequence, support is growing to repeal tax and other legal barriers that effectively prevent people from using precious metals as money.

In March, Utah repealed its capital gains tax on gold and silver coins it will recognize as legal tender. Twelve other states are considering similar legislation.

Then, in June, Senators Jim DeMint (R-S.C.), Mike Lee (R-Utah) and Rand Paul (R-Ky.) introduced the Sound Money Promotion Act that would remove the 28% federal tax on gains realized in the use of gold or silver coins recognized as legal tender for use within a state.

Now, in Switzerland, efforts are underway to create an official Gold Swiss franc (GSF) with a set of coins, each with a fixed content of gold. The proposed constitutional change would permit private institutions to issue an unlimited number of coins whose appearance, content and weight of gold, and definition would be under the supervision of the Swiss government...

READ THE FULL ARTICLE HERE...

"Time to Deal With Reality"

2011-08-09T07:52:00.000-07:00

by Doug Tjaden, Director
Sound Money Center

Let’s cut to the chase. Those working to restore this nation’s constitutional foundation had better resolve themselves to three important facts.

#1. We do not have much time left. The clock is ticking and we are in the eleventh hour. Enough said.

#2. The economic and political environment this restoration project is taking place in is about turn ugly in a way nobody wants to admit. It will unfortunately, because vast numbers of people in this country hold two deeply entrenched, yet diametrically opposed, worldviews.

Progressive Socialists believe the government is the best and last arbiter of all issues – whether social or financial, local or global. The only way out of our problems, they claim, is to give the central (and increasingly, global) government more power and money. The Constitutional Conservatives on the other hand, believe big government is the problem, and the central government must be stripped of its power and money, with both being returned to the people and states.

Diametrically opposed political and cultural worldviews do not co-existed indefinitely. In this country, they have been able to for one simple reason - Perceived prosperity. Easy money (actually it’s easy credit, but that’s another subject) created an environment of economic and political stability. Historically, this is not an environment in which world changing events occur.

Those days are over. History will show they ended during the hot summer of 2011. The heated nature of the debate to raise the United States’ debt ceiling awakened millions of Americans to a painful reality. The perceived prosperity of our debt based consumption binge is over. The resulting economic instability will magnify what many have sensed for some time now – our country is politically unstable. And that IS an environment where world changing events occur.

This assertion is confirmed by a Rasmussen poll released this week showing that only 17% of Americans believe the government operates with the consent of the public. Pollster Pat Caddel called the results “pre-revolutionary.” A pretty strong statement. However an accurate one.

This country is entering a period of monumental change. Which leads me to the final fact we must resolve ourselves to.

#3. We have one chance to get it right. The collective wisdom of those who hold freedom dear must be directed in such a way as to achieve maximum return for every hour volunteered and every dollar spent working toward that goal.

As our fellow Americans awaken again to the concepts liberty and Constitutional government, we must make the case that governmental tyranny and economic chaos can only be solved by implementing both the principles of '98 and sound money. Restoring constitutional government cannot be done through the principles of '98 alone. Or by implementing the sound money alone. They must be implemented simultaneously – and immediately.

Our posterity depends on it.

I will make that case at Nullify Now! in Kansas City on August 20th. Please join us there!

"The Clock Is Ticking"

2011-08-02T09:59:00.000-07:00

By Doug Tjaden, Director
Sound Money Center

Believe it or not, there is actually something good that came out of the dog-and-pony show over our debt ceiling. Even though Washington chose to do exactly what we knew they would – kick the can down the road – the debate has brought some facts about our nation’s financial condition into the open.

Fact #1 – we are broke. While tens of millions of Americans still believe that money from government programs can and should continue to flow without consequence, millions more are discovering that if our insane policy of deficit spending continues, it will end badly.

Fact #2 – we are on the clock. While this fact is not yet widely understood, people are awakening to the reality that because we are broke, we have a limited amount of time to truly change our ways – very limited.

The bill Congress passed provides us with a timeline showing when the U.S. dollar crisis will come to a head. This long anticipated event will happen as the United States government approaches its new debt ceiling limit of $16.7 trillion.

If you think the drama surrounding raising the limit was extreme this time, you haven’t seen anything yet. Expectations have been solidly set that by the time it comes up again, Congress will have put in place measures to once and for all, solve our fiscal problems by getting spending under control.

That is not going to happen.

Projections are already being made that the $16.7 trillion limit will be reached in 1Q13. However, Washington D.C. is notorious for making projections that are too rosy. Furthermore, our economy is rapidly moving into a “double dip” recession. That means revenues will soften as expenditures (unemployment, food stamps, etc.) continue to rise.

If the double-dip is severe, it is possible that we could reach the debt limit well ahead of schedule - near next year’s Presidential election. Consider what that means. A bitterly divided (and economically ignorant) Congress would be fighting for re-election during a full blown sovereign debt crisis. Gridlock of the most extreme nature would paralyze Washington when bold, decisive action is warranted. Not a pretty picture. Even if this scenario does not materialize, 1Q13 is only 18 months from now.

The clock is ticking people. This is it. Understanding this, each and every one of you should be moved to get involved to enact sound money laws in your state. It will be your best and possibly only protection from what is coming. You should also get serious about accumulating some sound money of your own.

Eighteen months max. The 2012 state legislative session may be your last chance to enact constitutional tender laws in time to implement them prior to some very challenging economic times. Encourage legislators and sound money proponents from your state to attend the national Sound Money Summit, scheduled for September 26th and 27th in Deer Valley, Utah. Sound money legislation will be crafted and acted upon. Details will be posted at the Sound Money Center when released!

GA Rep. Bobby Franklin Dies: Introduced ConTen Act

2011-07-26T12:26:00.000-07:00

My friend, Georgia Rep. Bobby Franklin, has passed away.

This man was a giant -- in faith, in intellect, in fidelity, in so much more. We came to be friends as we worked on the Constitutional Tender Act together -- and I learned that if a majority of State legislators would only vote the Constitutional and Biblical way he voted, our State -- and probably our country -- could be turned away from the coming destruction.

I know that Bobby is in the presence of Jesus now, and rejoicing forevermore. He exemplified Philippians 1:21: "For me to live is Christ, and to die is gain." Have a glorious Home-going, Bobby. I will miss you -- I'm sitting here crying as I type this -- but I will share your joy in full one day.

And I would be remiss in Bobby's eyes if I didn't ask YOU, the person reading this, two simple questions: Have you come to the place in YOUR spiritual life where YOU know for *certain* that if you were to die today, you'd go to heaven? And if you *were* to die today -- as Bobby can testify, it can happen to young and old -- and you were to stand before God, and He were to say to you, "WHY should I let you into my heaven"... What would you say?

Bobby answered the first question with a resounding YES (1 John 5:13) -- and he answered the second question with a resounding, "Because I'm trusting in JESUS CHRIST ALONE for eternal life." (John 14:6) And Jesus has now answered back to Bobby: "Well done, good and faithful servant... Enter into the joy of your Lord" (Matt. 25:21).

READ MORE HERE...

"Five Myths About the Gold Standard"

2011-07-16T10:57:00.000-07:00

By Congressman Ron Paul | Congressional Record, February 23, 1981

A CLASSIC THAT HAS STOOD THE TEST OF TIME!

MYTH NO. 1: THERE ISN'T ENOUGH GOLD

MYTH NO. 2: A GOLD STANDARD WOULD ENABLE RUSSIA AND SOUTH AFRICA TO HOLD US HOSTAGE

MYTH NO. 3: GOLD CAUSES DEPRESSIONS

MYTH NO. 4: GOLD CAUSES INFLATION

MYTH NO. 5: GOLD WOULD BE SPECULATIVE

READ THE FULL ARTICLE HERE...

VIEW THE ORIGINAL CONGRESSIONAL RECORD HERE...

VIDEO: Ben Bernanke and Ron Paul face off over whether or not gold is money

2011-07-14T09:43:00.000-07:00

Well, let's join the ever-accelerating march towards hyperinflation:

Subcommittee Chair Rep. Ron Paul (R-TX): “Do you think gold is money?”

Federal Reserve Chairman Ben Bernanke: “No.”

"Competing currencies: a defense against profligate spending"

2011-07-11T17:31:00.000-07:00

By Rep. Ron Paul (R-Texas)
The Hill - 07/11/11

... Currency is sound only when it is recognized and accepted as such by individuals, through the actions of the market, without coercion. Throughout history, gold and silver have been the two commodities that have most fully satisfied the requirements of sound money. This is why people around the world are flocking once again to gold and silver as a store of value to replace their rapidly depreciating paper currencies. Even central banks have come to their senses and have begun to stock up on gold once again.

But in our country today, attempting to use gold and silver as money is severely punished, regardless of the fact that it is the only constitutionally-allowed legal tender!

... This is why I have taken steps to restore the constitutional monetary system envisioned and practiced by our Founding Fathers. I recently introduced HR 1098, the Free Competition in Currency Act. This bill eliminates three of the major obstacles to the circulation of sound money: federal legal tender laws that force acceptance of Federal Reserve Notes; "counterfeiting" laws that serve no purpose other than to ban the creation of private commodity currencies; and tax laws that penalize the use of gold and silver coins as money. During this Congress I hope to hold hearings on this bill in order to highlight the importance of returning to a sound monetary system.

Allowing market participants to choose a sound currency will ensure that individuals' needs are met, rather than the needs of the government. Restoring sound money will restrict the ability of the government to reduce the citizenry's purchasing power and burden future generations with debt. Unlike the current system which benefits the Fed and its banking cartel, all Americans are better off with a sound currency.

READ THE FULL ARTICLE HERE...

Moving Forward to a New Digital Gold Standard

2011-07-10T14:47:00.000-07:00

This is a great article on how we can use gold & silver in everyday transactions. It answers the points raised by oh-so-many legislators:
"Gold and silver are too heavy to carry around a bag of metal to pay for everyday purchases."
"Gold is too valuable, we'd be using pieces the size of rice to try and pay for things."

"It's impossible to make change using gold and silver, the coins are not physically divisible at the cash register!"

The proof that we don't have to do any of that silliness is found in already-existing Digital Gold Currency. DGC lays the foundation for moving to simply doing what people are doing already - using digital money in everyday transactions - but using check cards & debit cards that are backed by gold & silver rather than Federal Reserve Notes (or whatever other government legal tender you're forced to use).

I understand - it can be difficult to wrap your head around the fact that gold and silver are money, and money doesn't have to take the form of nearly-worthless pieces of paper like we have today. But please - these legislators are Members of the BANKS AND BANKING committee. Surely...

It's time to return to sound money, that holds its purchasing value. The Constitutional Tender Act can help begin that process.

by Mark Herpel, editor of Digital Gold Currency magazine

In my everyday conversations people always ask me, "are we going back to the gold standard? Is that what you want?"

I have to laugh and respond by saying, "yes, back to the gold standard of the 1800's and on your way out today, please turn in your car keys and pick up your horse & buggy."

We can't go back in time. We can't wake up one day and pretend that the cell phone was not invented or the Internet doesn't exist. Once the blind man gets his sight, there is no going back to the darkness.

As both Lewis E. Lehrman and Ron Paul say, we should be "going forward to a new gold standard".

The move from legal tender paper to voluntary use of gold and silver has already been occurring on a state by state basis in the U.S.

By giving people the option to use sound money over paper currency, slowly but surely, the state legislatures are offering real protection from ongoing paper money inflation. ..

READ THE FULL ARTICLE HERE...

"Not Worth a Dollar: Utah recognizes gold and silver as legal tender"

2011-07-08T01:23:00.000-07:00

by Brian Bolduc
National Review Online

Since 1913, the dollar has lost over 95 percent of its purchasing power. Why? Because the Federal Reserve, which Congress established that year, has printed more money than necessary.

Or so skeptics claim. Many tea partiers agree — so much so that they’re spearheading an effort to introduce two competing currencies into the money supply: gold and silver.

The Constitution forbids states to coin money. In Article I, Section 10, however, it reads, “No state shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debts.” Jeff Bell, policy director of American Principles in Action, argues that this passage authorizes states to recognize gold and silver as legal tender.

Colorado was the last state to do so, in 1893. But Utah, taking “a precaution against further deterioration in the dollar,” has revived the endeavor, Bell says...

...But this setup poses challenges. If gold and silver trade at market value, vendors will have to measure coins’ weight and purity to determine their worth. Will McDonald’s have a scale in every drive-through?

No, thankfully. Bell says private interests are starting banks in which members can leave their gold and silver deposits. They then can use those deposits as backing for debit cards: “You could pay any bill or your taxes with a Visa debit card that would then be assessed against the valued coins — and they may be revalued all the time.”

READ THE FULL ARTICLE HERE...

"The Gold Standard: A Litmus Test For GOP Candidates"

2011-07-05T09:22:00.001-07:00

by Ralph Benko (@TheWebster)

...More than half of the current Republican aspirants have moved monetary policy — and the strong dollar — as a key campaign plank, half of these calling for the gold standard. More are likely to weigh in. The gold standard, in only two years, has moved from a perceived-fringe prescription to the mainstream. How?

Fed Chairman Ben Bernanke “primed the pump,” not in a good way, of public interest with his two QEs. This raised popular awareness of, and ire about, monetary policy. The record shows that a small group of thought leaders effectively championed the gold cause.

In roughly chronological order this may be said to have begun with the forum which John Tamny, on Forbes’ Opinion pages and at RealClearMarkets, gave pro-gold advocates such as Brian Domitrovic, Charles Kadlec and Nathan Lewis — and with consistently savvy support for gold from the New York Sun under the editorship of Seth Lipsky.

Onto this fertile ground came Princeton Professor Robert George’s American Principles Project, chaired by Sean Fieler; then Judy Shelton’s Atlas Sound Money Project. The dynamic was supercharged by World Bank Group’s president Robert Zoellick’s famous gold FT op-ed; then by the formation of the Lehrman Institute’s The Gold Standard Now (for which this writer serves as editor); a call for gold by conservative champion Rep. Mike Pence in a major speech before the Detroit Economic Club; major op-eds by Sean Fieler and Jeff Bell, Charles Kadlec and Lewis Lehrman, in the Wall Street Journal; an important Reagan centennial gathering of supply side titans at the Manhattan Institute; an endorsement by the Weekly Standard‘s Bill Kristol; the most important Congressional hearing on monetary policy in at least a generation conducted by domestic monetary policy subcommittee chair Ron Paul; the high-profile championship by former presidential candidate and CEO Steve Forbes; and, most recently, an endorsement by Mundell...

...Stir in the populist power of the Tea Party, especially that of electoral bellwether Iowa’s Tea Party coordinated by Ryan Rhodes and April Linder. Add a sprinkle of state activists, such as Larry Hilton, who have, with assistance from American Principles In Action, moved gold standard legislation originally inspired by Dr. Edwin Vieira into law in Utah and are moving it forward elsewhere.

This is what moved the gold standard, decisively, from the realm of mavericks and social dystopians to mainstream conservative, and even Republican presidential candidate, policy. The gold standard’s momentum is building fast.

READ THE FULL ARTICLE HERE...

Gold ATMs Hit Great Britain

2011-07-04T20:55:00.000-07:00

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 always talking about: modern banking based on sound money. Well, those gold ATMs, which started in Abu Dhabi and then came to Boca Raton, Florida, have arrived on the shores of Great Britain as well.

(I encourage you to read my full comments on this issue here, where I expound in more depth.)

Why is this significant? Because, as I've talked about repeatedly, 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.

Don't try snacking on these bars: The vending machine that sells gold not chocolate
Shoppers can pick up a 1g coin for roughly £40 or a 250g bar for £10,250
By Daily Mail Reporter

If you think chocolate bars are a little overpriced these days, then this isn't the vending machine for you.

For the only bars you can get here are made of pure gold and will set you back somewhat more than 70p.

Britain's first gold vending machine 'Gold to Go' will open today in the Westfield shopping centre in west London...

...There are no security guards protecting the machine, but would-be thieves would still have to contend with reinforced steel and a state-of-the-art alarm system.

'It would cost you a great deal more to get the gold out than the value of the gold inside,' Joe Dreixler, of Oriente Lux, said.

READ THE FULL ARTICLE HERE...

"Rethinking Utah's monetary policy"

2011-07-01T14:11:00.000-07:00

THIS is what I told the Georgia legislators in our hearing before them, that if Georgia would be the FIRST State to implement Constitutional Tender, our banks would stop failing, and our economy would benefit by BILLIONS of dollars: "With aggressive plans underway to open local depositories, the private sector has been quick to respond to the first monetization of a gold and silver coin by a state in more than a century. Essentially, these new institutions will afford citizens an effective way to "inflation proof" their dollars by making their everyday purchases with a debit card backed by the fair market value of their gold and silver coin holdings."

We see how well Georgia legislators responded. But maybe NOW they'll listen?

"Rethinking Utah's monetary policy"
By Larry Hilton and Rich Danker
Deseret News (Salt Lake City)
Friday, July 1, 2011

...Until our currency returns to safe harbor reconnecting with a reliable, proven anchor, we'll likely remain adrift in a monetary system that produces rising prices, financial disorder and runaway government spending.

Ronald Reagan once observed, "I do not want to go back to the past; I want to go back to the past way of facing the future." In that spirit, Utah has charted a way forward based on time-tested, proven principles. During the recent general legislative session, the Utah Legal Tender Act passed both chambers and was signed into law by Governor Herbert.

The bill essentially restores the hard money options enjoyed by generations past. American greatness rose on the strength of a dollar that was "as good as gold," and if our nation ever sinks, it will likely come in the wake of the dollar's demise.

The new Utah law derives its legal authority from Article I, Section 10, of the U.S. Constitution, which provides that no state shall "make anything but gold and silver coin a tender in payment of debts." This largely neglected constitutional check can, when actually exercised by the States, foster an important balance between concurrent state and federal monetary authority.

Our current paper money maelstrom has set in motion what Politico recently called a "surge of national interest" in gold-backed monetary reform. Others speak of the "currency revolution," which some have dubbed the "Utah Spring," with more than a dozen states considering a new, promising season of Utah-style monetary reform. ..

READ THE FULL ARTICLE HERE...

The Hill: "Senate GOP seeks to end taxes on gold and silver coins"

2011-06-29T13:32:00.000-07:00

By Pete Kasperowicz

Sens. Jim DeMint (R-SC), Mike Lee (R-Utah) and Rand Paul (R-Ky.) this week introduced legislation that would exempt gold and silver coins declared by the federal or any state government as legal tender from taxation.

The Sound Money Promotion Act, S. 1287, is meant to build on what the sponsors see as a reaction to overspending by the federal government and the falling value of the dollar. The senators said that in May, Utah became the first state to recognize these coins as legal tender within the state, and said 12 other states, including South Carolina, are considering similar measures...

The three said the rising price of gold, the weakening dollar, the negative credit rating that Standard & Poor's gave to the U.S. earlier this year, and significant Federal Reserve purchases of U.S. Treasuries are all signs of increasing economic risks to the U.S.

READ THE FULL ARTICLE HERE...

"A First Step To Sound Money"

2011-06-29T02:32:00.000-07:00

Editorial of The New York Sun | June 28, 2011

...It’s called the Sound Money Promotion Act, and The New York Sun is happy to lay claim to being the first newspaper to endorse it. The measure, as it is characterized in a press release posted by Senator DeMint, would remove the tax burden on gold and silver coins that have been declared legal tender by either the federal government or state governments...

...It seeks to block tax authorities from treating gold and silver coins as though they were mere commodities and start treating them, at least in tax law, as though they were what the Founders of America thought they were, which is money. Gold and silver coins are already treated this way, as legal tender, inside the state of Utah, whence Senator Lee was elected.

This is because Utah was the first state in our modern time to exercise its constitutional power to make gold and silver coins legal tender. It did so earlier this year, ahead of as many as a dozen states that are at various stages of looking in to the question of how to protect themselves against the collapse of the United States dollars that are being issued by the Federal Reserve. They are all being energized by the fact that the value of the dollar has collapsed to barely a fifth of what it was, if that, at the start of the 21st century...

...How far the three senators will get with the Sound Money Protection Act is hard to say. Its implication — a recognition of gold and silver as the true constitutional money — is, in the current context, radical. But it's no more radical than the Founders, who, when they twice used the word “dollars” in the Constitution, were referring to a coin containing 371 ¼ grains of silver. They codified that as the definition of the dollar in the Coinage Act of 1792. They also referenced gold in the 1792 Act, with a value of 15 times that of silver. We are in a time when understanding the concept of constitutional money will point the way to the policies needed to steer our country out of its current difficulties.

READ THE FULL ARTICLE HERE...

DeMint, Lee, Paul Offer Bill to Begin Restoring Sound Money

2011-06-29T02:12:00.000-07:00

Today, U.S. Senators Jim DeMint (R-South Carolina), Mike Lee (R-Utah) and Rand Paul (R-Kentucky) introduced the Sound Money Promotion Act, legislation that would remove the tax burden on gold and silver coins that have been declared legal tender by the federal government or state governments. On May 9, the State of Utah became the first state to recognize such gold and silver coins as legal tender for use within the state, and similar legislation has been introduced in 12 other states, including South Carolina...

“Thanks to the government’s reckless over-spending, continued bailouts, and the Federal Reserve’s easy money policy, this year the purchasing power of the dollar hit an all-time low in the several decades since we went off the gold standard,” said Senator DeMint. “In order to rebuild strength and confidence in our economy, we need both the fiscal discipline to cut wasteful spending and the monetary discipline to restrain further destructive monetizing of our debt. This legislation would encourage wider adoption of sound money measures, and that’s a step in the right direction.”

“Good monetary policy is an important part of a healthy and prosperous economy,” said Senator Lee. “Since the Federal Reserve Act of 1913, the dollar has lost approximately 98 percent of its value. This bill is an important step towards a stable and sound currency whose value is protected from the Fed's printing press."

Senator Paul added, "As the government runs massive deficits, uncontrolled spending, and an increasingly unsustainable debt, governments and the bureaucrats in charge are often forced to take an easier approach: to monetize the debt, inflating the currency. These implications can be devastating, leading to higher interest rates, which lead to higher borrowing costs and slower economic growth, but most importantly, destroying the savings and standard-of-living of all Americans. This bill will hold politicians and the Federal Reserve accountable; acknowledging that states are serious about an alternative to a weakening dollar.”

READ THE FULL ARTICLE HERE...

The Practical Implementation of Constitutional Tender

2011-06-16T21:21:00.000-07:00

by Doug Tjaden
TenthAmendmentCenter.com

Get ready. It’s coming.

Now it gets interesting. For several months I have been writing on the issue of honest money and its return to America, via the states. Judging from the response (or lack thereof), the issue is still very much off of the radar of the average American, including many hard asset advocates. Honest money is, however, quietly – and quickly – making its way into the main stream discussion...

...Let me go out on a limb and say those famous last words… “This time it is different.”

1) The United States is moving toward a debt/currency crisis of immense magnitude.

2) The American people are becoming increasingly aware of it, thanks to the tireless work of the above mentioned heroes.

3) There are two new variables that make this latest iteration of the decades long sound/honest money debate different...

...Larry Hilton was instrumental in helping nurture Utah’s law through to its ultimate passage. When I asked what the most important issue was facing Utah’s sound money initiative, he did not hesitate. “We need as many legislators as possible in as many states as possible to pick up the torch. Implementation of a simple bill in multiple states will strengthen support for sound money across the nation.”

To that end, he is planning a Sound Money Summit to be held in Deer Valley, Utah on September 26th and 27th. The purpose of the summit is to craft a “declaration of principles” that various states can agree upon regarding sound money. “The declaration will then form the foundation for model legislation.” stated Mr. Hilton. “If the summit can accomplish those two objectives – agreement on a declaration and model legislation – will put state legislators in good shape going into 2012.”

Here’s to the Sound Money Summit. Mark your calenders. September 26th and 27th promise to be the next quantum leap forward as the states move to return to honest money.

READ THE FULL ARTICLE HERE...

Edwin Vieira Interview with James Turk

2011-06-10T12:14:00.000-07:00

James Turk interviews Edwin Vieira, author of "Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution". For more info visit http://www.goldmoney.com/goldmoney-foundation/books.html

Edwin talks about how his book came to be and the new editions. Edwin explains the role that the gold commission hearings and Ron Paul played. He also says how important and urgent monetary reform is for the United States and how the best chance of reform comes at the state level.

They discuss constitutional money in the USA and the authority of states to use gold and silver as legal tender, as well as legal precedent from the Supreme Court. He talks about how several states are contemplating legislation to allow gold and silver as alternative currencies.

Edwin explains the Treasury's legal obligation to maintain parity between all forms of US currency, about Roosevelt's gold seizure, the gold reserve act and the abolition of the gold clause. They talk about the need for insurance against a currency collapse and how alternative currencies could play that role. They discuss the stark choice that follows a currency collapse: How the US reacted after the collapse of the Continental Dollar by enshrining sound money in the Constitution vs. how Weimar Germany drifted into fascism.

He explains how States have the legal duty and authority to carry out monetary reform and given the deadlock in Washington must take the initiative to prepare for the coming crisis. They stress the need for a rational currency system which allows for economic calculation, and decry the current fiat, politically driven, irrational monetary system as incompatible with a free market and a focus of financial instability.

They both talk Turk about the current lack of financial education, they liken the alternative currency initiatives by State legislatures to building lifeboats for the Titanic that is the US Dollar and talk about the different things that can be done to prepare for its impending sinking. They also return to the Continental Dollar and how America's founding fathers were able to learn from their mistakes by enshrining sound money in the Constitution and how with today's technology we could do even better.

CLICK FOR ORIGINAL YOUTUBE SITE...

Utah Sound Money Bill Rocks World

2011-06-10T09:43:00.000-07:00

I TOLD GEORGIA LEGISLATORS THAT THIS WOULD HAPPEN IF THEY DIDN'T PASS OUR BILL FIRST! "Issac Jacobson, a fund manager, says that based on conversations he has had with other fund managers, he expects billions of dollars to come into Utah to take advantage of the new law. He explains that funds will store their assets in Utah and believes that over time, the average Utahan will see a financial benefit from these billions of dollars being located and managed within the state."

Utah Sound Money Bill Rocks World
By: Carlton Bowen
Featured Liberty News Radio Columnist
Salt Lake City, Utah. June 2, 2011

Today Utah Governor Gary Herbert signed the Utah Legal Tender Act of 2011 (HB 317) in the Gold Room of the Utah State Capitol in a formal signing ceremony. In a room full of cameras, reporters, fund managers, businessmen, and prominent legislators, HB317 sponsor Brad Galvez, a Utah House Freshman, took to the podium and explained the effect of the bill. Representative Galvez recalled that when the bill was first passed in March, the local media took very little notice. There were a few stories he says, and that was about it. But the rest of the world took note. Galvez mentioned being contacted by reporters from around the world and listed media coverage in New York, London, Germany, other parts of Europe, Asia, Australia, and other parts of the world. Galvez says the legislation is historic...

The formal signing ceremony demonstrated commitment from Utah's highest levels of government to the bill. Utah Governor Gary Herbert said he and the legislature sometimes disagree, but that this was an issue they both agreed was important for Utahans. Before signing the bill, the Governor noted that Utah had been recognized as one of the best managed states, the most financially sound state, and one of the best states to live in. He said that was because of the fiscally conservative principles he and the legislature shared and because of the culture of the people of Utah. Governor Herbert then proceeded with the formal signing of the bill, reviewing publicly what the bill did, saying that it recognized Gold and Silver coins issued by the U.S. government as legal tender in the State of Utah, and removed taxes, including capital gains, sales and income taxes, on the coins. He then signed the bill. Even though the bill was previously signed by the governor and went into effect on May 10th, 2011, the formal signing ceremony today highlighted the importance of the bill and the State's commitment to its continued implementation...

READ THE FULL ARTICLE HERE...

University of Texas Endowment Holds $1 Billion Gold, 5% Of Its Portfolio

2011-05-21T17:12:00.000-07:00

OK, so when I testified this year before the Georgia House Financial Institutions & Services Subcommittee (a Banks & Banking Committee subcommittee) on HB 3, the Constitutional Tender Act, in one part of my testimony I was very specific:

I told these legislators that, because they failed to pass the ConTen Act two years ago when it was first introduced in the GA legislature, "the pension funds managed by the State of Georgia lost over 40% of their purchasing power. If we had simply returned to obeying the Constitution, some of the most vulnerable members of society -- those on pensions -- would now have 40% more funds to live on than they have ended up with."

I don't think they were able to wrap their heads around that completely. But, once again - just like happened when Utah beat us to the punch this year, as I had warned them would happen - OTHERS are showing them the way: this time, to public investment in sound money. And this time, by the University of Texas Investment Management Company, which has put 5% of its nearly $20 billion endowment into actual gold.

C'mon, guys and gals -- this isn't rocket science. Obey the Constitution, and save the money of the citizens of Georgia! -- BG

University of Texas Endowment Holds $1 Billion Gold, 5% Of Its Portfolio
by Robert Lenzner
Forbes.com

It should come as no shock to financial markets that university endowments have followed in the wake of central banks and hedge funds to become the newest major investors in precious metals like gold.

Just as central banks in China, India, Russia and many other nations view gold as a monetary reserve protection against the falling dollar, major academic institutions are looking for new asset classes like precious metals and commodities to produce returns that can be put to work as a source of funds for a large portion of college operating expenses.

Friday, as gold prices hit a new all-time high – $1486 an ounce($1500 is around the corner),the University of Texas Investment Management Co., revealed that 5% of its $19.9 billion endowment(it handles Texas A&M as well) was in actual bars of gold bullion in a New York bank vault owned by HSBC Holdings, the London based global banking institution. Not in any gold ETF or individual gold mining shares, or in gold futures;l Texas took delivery of 6,643 actual bars of bullion, or 664,300 ounces– a quite unusual transaction for a university.

READ THE FULL ARTICLE HERE...

GOPers embrace unorthodox tax plans

2011-05-21T15:22:00.000-07:00

The time is politically ripe for a return to sound money. Now we need to get the candidates talking about enforcing the Constitutional requirements for that sound money: gold and silver coin.

POLITICO: "GOPers embrace unorthodox tax plans"
By BYRON TAU & BEN SMITH | 5/20/11 6:19 PM EDT

In this Republican primary season, no economic or monetary policy is too unorthodox for an electorate hungry for change.

The Republican field is filled with potential candidates who have called for radical overhauls of the tax code, the abolition of the IRS, an end to the Federal Reserve central bank— and even a return to the gold standard... mainstream figures in the Republican Party — including [former Minnesota Gov. Tim] Pawlenty and Indiana Rep. Mike Pence — have flirted with monetary theories like the gold standard or fixing the U.S. currency to a commodities basket.

READ THE FULL ARTICLE HERE...

"The GOP's New Gold Rush: Inside the conservative plan to take down the Fed from the bottom up"

2011-03-31T04:07:00.000-07:00

Aaaand... Mother Jones joins the chorus of left-wing publications waking up and realizing that we're making progress at the State level. It's a fairly typical media piece, not severely denigrating, but including enough silly quotes from establishment economists - "make wampum legal tender" - and getting enough facts wrong, like using "pre-1985 Golden Eagles" (what?) - to render the article pretty much useless in terms of helpful information for anyone that actually wanted to learn more. At least they included a bunch of good links. And I did like how he subtitled the article, "Inside the conservative plan to take down the Fed from the bottom up" - taken directly from my paper & article at Tenth Amendment Center. -- BG

After three decades of railing against America's monetary policies, Congress' most famous gold bug and anti-Fed crusader, Rep. Ron Paul (R-Texas), doesn't have much to show for his efforts on the national level.

But Paul's message finally seems to be gaining traction outside Washington. Since the beginning of 2009, lawmakers in more than a dozen states, with the backing of conservative organizations like the Tenth Amendment Center and the American Principles Project, have introduced bills promoting the use of gold and silver currency for everything from buying groceries to paying taxes. Last week, Utah became the first state to enact such legislation, declaring gold and silver coins from the US mint legal tender, and creating a commission to study the efficacy of this move.

Other proposals, in Georgia and Iowa, would mandate that all state taxes be paid in gold and silver. In Montana, a "sound money" bill that would have required all taxes on cigarettes and tobacco products be paid in precious metals was narrowly defeated on Monday.

Some supporters hope the movement will succeed where Paul's efforts have fallen short—by bringing down the Federal Reserve system from the bottom up.

"It's much more difficult to be lobbying against one bill than it is against 50 bills," says Bill Greene, a conservative activist and political consultant whose sample legislation has served as a foundation for a bill that's currently before the Georgia legislature. "As soon as one state passes a sound money bill, that state is going to reap the most benefits first. That'll open the floodgates and get the ball rolling and more and more states wanting to do it."

READ THE FULL ARTICLE HERE...

Montana: "Gold standard defeated after lively House debate"

2011-03-30T09:18:00.000-07:00

We came very close - just 52-48 - to getting another sound money bill passed, this time in Montana. Interesting approach: It would have required all taxes on cigarettes and tobacco products be paid in precious metals. Well, it's certainly a start.

HELENA — The House narrowly defeated a bill Tuesday that would have required the state to back some of its transactions with gold and silver coins.

House Bill 513, by Rep. Bob Wagner, R-Harrison, would have established a state reserve of silver and/or gold in various forms to accommodate transactions using the tobacco tax revenue stream. Wagner said the bill would have required Montana state government to trade with some taxpayers and contractors in units of gold, starting with those who pay taxes on tobacco products.

Wagner said the bill would protect "honest money" from "political manipulation and value."

"To return to this system of honest value, former Federal Reserve Chairman Allen Greenspan suggested that a system would need to be developed to operate in a dual currency," Wagner said during floor debate on the measure.

Supporters say the new currency exchange would be "separate and parallel" to the traditional exchange of federal notes...

...The plan failed on a 52-48 vote, as 20 Republicans joined 32 Democrats in opposing the measure.

READ THE FULL ARTICLE HERE...

View the bill here.

UTAH GOVERNOR SIGNS GOLD & SILVER LEGAL TENDER BILL!

2011-03-28T17:41:00.000-07:00

Utah has now become the first State on our list to actually enact a sound money bill into law.

On Friday, March 25th, Gov. Gary Herbert signed HB 317, the "Utah Legal Tender Act," into law.

The law recognizes gold and silver coins issued by the federal government as legal currency in the state. The coins do not replace the current paper currency, but may be used and accepted voluntarily as an alternative.

The law exempts the sale of gold and silver coins from the state capital gains tax, since you would simply be exchanging one form of legal tender currency for another. It also calls for a committee to study alternative currencies for the State and a means for Utahans to pay their taxes with gold and silver coins.

Gold and silver coins issued by the federal government are already legal tender, of course, and can be used to purchase items and pay debts owed. However, they could only be used at the face value of the coins -- which is ridiculously lower than the value of the precious metal content of the coins. If you were to use them at the actual value of the coins, you would face a capital gains tax on the "profit" you gained over the face value.

If nothing else, this law recognizes the inanity of imposing a tax on exchanging one form of legal tender currency for another. By removing that tax and officially recognizing the legal tender status of the gold and silver coins within the State of Utah, the way is now open for good and services to be priced in both Federal Reserve Notes denominations and Gold & Silver Coins denominations; likewise, banks should now be free to offer their customers accounts denominated in legal tender gold & silver coins, so that consumers will be able to make purchases based on those accounts, using their debit cards, checks, ATM cards, etc. Banks should also easily convert FRNs to Gold & Silver Coins and vice-versa, since they will now be treated as simple currency exchanges.

So... what bank will be the first to jump on board here? Because once that happens, the floodgates will open, and billions of dollars in new banking accounts will pour into Utah banks, from people who want to use sound money that keeps its value, rather than nearly-worthless pieces of paper whose purchasing power continues to plummet.

And you know who'll be one of the first in line!

"Legislator says the state needs its own currency"

2011-03-21T06:29:00.000-07:00

Finally, we're seeing movement in North Carolina as well. Of course, it's being reported on in the same ridiculously slanted manner as every other sound money bill across America - you know, "they want to print their own money" (they don't), "the Austrian school of economics is fringe" (not any more!), jokes about "storing gold & silver in old State vaults" (duhhh, they'd use banks, hello!), etc. No one wants to talk about what the U.S. Constitution actually says: that States are REQUIRED to use only gold & silver coins in all financial transactions. Period.

RALEIGH -- Cautioning that the federal dollars in your wallet could soon be little more than green paper backed by broken promises, state Rep. Glen Bradley wants North Carolina to issue its own legal tender backed by silver and gold.

The Republican from Youngsville has introduced a bill that would establish a legislative commission to study his plan for a state currency. He is also drafting a second bill that would require state government to accept gold and silver coins as payment for taxes and fees.

If the state treasurer starts accepting precious metals as payment, Bradley said that could prod the private sector to follow suit - potentially allowing residents to trade gold for groceries.

READ THE FULL ARTICLE HERE...

View the bill here.
Citizens of NC: Contact your State Representative here to ask they co-sponsor this bill!

Every American citizen TODAY needs to contact the Leaders of the North Carolina House and ask them to support this bill -- CLICK HERE to take action NOW!

Another State in Malaysia Introduces Gold & Silver Money

2011-03-15T10:13:00.000-07:00

As we noted in January was going to happen, another Malaysian state (Perak) has now introduced its own Gold Dinar and Silver Dirham coins. Kel antan was first, in August of 2010.

Today, the Perak (state in Malaysia) government, introduced Gold dinars and silver dirhams. Menteri Besar of Perak, Datuk Seri Dr Zambry Abdul Kadir launch the world's first financial instrument ever made of gold and silver with a purity of 99.9 per cent or 24 karats at the Perak state secretary building in Jalan Panglima Bukit Gantang Wahab, Ipoh. For a start, 1,000 pieces of gold dinars and silver dirhams had been manufactured and would be marketed through Yayasan Pembangunan Ekonomi Islam (Yapeim) and Nusantara Bullion Exchange (Nubex Sdn Bhd)...

Datuk Seri Dr Zambry said Perak Dinar also had higher level of quality as compared to the dinars and dirhams first produced by Islamic scholar Khalifa Abdul Malik ibn Marwan about 1,357 years ago.

"Gold dinars and silver dirhams produced then contained 97 per cent of gold and silver purity, but what we launched today are of higher quality because they are equivalent to 24 karats."

As we also noted earlier, the Malaysian constitution (in ninth schedule, list I sub 7.a) does not allow its states to issue coins (much like the U.S. Constitution in Article I, Section 10); however, these coins are being privately minted by the "World Islamic Mint" under the authority of the Perak government (the Koran, like the Bible, forbids the use of fiat money and fractional reserve banking). The Perak gold dinars and silver dirhams are being produced by Goldnet International, a joint-venture company with the Perak State Development Corporation, in collaboration with KFH (Malaysia) Sdn Bhd.

Seriously, the time to start moving away from devaluating fiat paper and back to sound gold & silver money is NOW. We can see it as the mainstream media is reporting the growing number of U.S. States introducing legislation to do just that. But as we know, vested State banking interests and national banking cartels don't like competition, as we've seen from the Federal Reserve in the U.S. We can expect that the Feds and the bank industry lobbyists will fight hard to stop the States from returning to the Constitutional mandate that they use only gold and silver coins in their financial transactions.

Well, they will until their whole Ponzi scheme comes crashing down.

Update: "Sen. Bill Ketron wants TN to consider creating its own currency"

2011-03-14T18:30:00.001-07:00

State Sen. Bill Ketron is pushing for Tennessee to study whether the state should create its own currency in the event of a breakdown of the Federal Reserve.

Depending on the perspective, Ketron's proposal is either a harmless step toward safeguarding the state in the event of national financial calamity, or proof that the Republican-led General Assembly is distracting itself from the task of creating jobs and improving the economy.

Ketron has filed a joint resolution to create a committee that would study whether Tennessee should adopt a currency as an alternative to the federal dollar in the event of a "major breakdown" of the Federal Reserve.

The proposal is part of a burgeoning movement on the part of conservative lawmakers to begin preparing for a worst-case scenario in which the Reserve collapses. Ketron's legislation mirrors almost word-for-word bills filed in South Carolina and Virginia, which passed the law earlier this year.

The Utah House of Representatives passed legislation approving gold and silver as legal tender. A Georgia lawmaker has proposed legislation that would force the state to conduct its monetary transactions in gold or silver coins.

Ketron, R-Murfreesboro, said he got the idea from the legislation filed in other states.

READ THE FULL ARTICLE HERE...

View the bill here.
Citizens of Tennessee: Contact your State Senator here.

Every American citizen TODAY needs to contact the Leaders of the Tennessee Senate and ask them to support this bill -- CLICK HERE to take action NOW!

"Utah Legislature backs gold and silver as legal tender"

2011-03-10T13:30:00.000-08:00

And so it begins... who's next?

The Senate gave final approval Thursday to a bill taking the first step to recognize gold and silver as legal tender in the state.

It voted 16-7 to pass HB317, and sent it to Gov. Gary Herbert for his signature.

The measure would recognize as legal tender gold and silver coins issued by the federal government — not just their face value, but also their value in gold and silver or to a collector...

“It will put some pressure on the federal government. That’s the goal here because right now we have a dollar that’s just running away with inflation and our hope is that this is a little bit of a shock that’ll say we want to deal with inflation,” Senate Majority Leader Scott Jenkins, R-Plain City, Senate sponsor of the bill, said in earlier debate. He gave senators gold chocolate coins on Thursday before debate...

Rep. Brad Galvez, R-West Haven, sponsor of the bill, earlier told the House, “This is a step in preparedness, a step in security that allows us to be able to help hold up our economy as the dollar continues to shrink.”

READ THE FULL ARTICLE HERE...

View the bill here.
Contact the Governor here.

Constitutional Tender Act Gets Georgia House Subcommittee Hearing!

2011-03-08T16:20:00.001-08:00

On Monday, March 8, 2011, a hearing was held in the Georgia House Financial Institutions & Services Subcommittee (a Banks & Banking Committee subcommittee) on HB 3, the Constitutional Tender Act.

Testimony in favor of the bill was given by Rep. Bobby Franklin & Dr. Bill Greene, who authored the bill. There was no testimony in opposition to the bill given.

HB 3 would return the State of Georgia to adherence to the U.S. Constitution's legal tender provisions. Specifically, the U.S. Constitution declares in Article I, Section 10 that "no State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts". This means that no State can make something a "tender in payment" (which means they cannot "make something an offer as payment") for any debts, which would include debts owed by and to the State. However Georgia, like EVERY State in the United States of America, HAS made some other "Thing" an offer as payment - they have by law declared that they will accept, and pay out, Federal Reserve Notes for any debts owed by or to them. Therefore, Georgia is in violation of Article I, Section 10 of the U.S. Constitution. Therefore, this bill would require Georgia to ONLY use gold and silver coins in payments to and by the State. Federal Reserve Notes could still be used by the people of the State in personal and business transactions, if they so choose; but with the introduction of competition with REAL money, FRNs will likely soon go the way of the dodo bird.

The witnesses testified and explained to the Members of this subcommittee the absolute requirement of the U.S. Constitution for the State of Georgia to ONLY use gold and silver coins in its transactions, and a dialogue was begun in the best MEANS by which this should be done. The legislators present (only 5 of 13 members showed) asked a good number of questions, many of which were already answered in the handouts they had been given in advance.

Rep. Franklin and Dr. Greene explained to the Members the need to return to fidelity to the Constitution quickly, in order to reap the greatest benefits from such an action. The likely complete devaluation of Federal Reserve Notes, and thus the need for Georgia to protect its citizens via returning to Constitutional Tender, was also explained.

No vote was taken at this hearing.

Further testimony by additional witnesses also followed, which will be uploaded as separate videos.

View the bill here.
Citizens of Georgia: Contact your State Representative here to ask they co-sponsor this bill!

Every American citizen TODAY needs to contact the Leaders of the Georgia House and ask them to support this bill -- CLICK HERE to take action NOW!

View last session's hearing & testimony here.

UPDATE: New Hampshire Legislator Introduces Resolution for "restoring gold and silver money"

2011-03-07T16:30:00.000-08:00

Back in January, we noted that in New Hampshire, whose State motto is "Live Free or Die", Rep. Norman Tregenza had submitted a "Legislative Service Request" (LSR) that perked our ears up:

title: urging Congress to pass legislation against losses in value due to money supply by the federal reserve; restoring gold and silver money; and phasing out the federal reserve system.

The bill was formally introduced as HCR 13. We're happy to say, it was voted UP in the State-Federal Relations and Veterans Affairs Committee, and sent to the floor with a recommendation to pass it! The bill is scheduled to have a full vote on the floor of the State House of Representatives on March 15 -- and it stands a good chance of passing!

Great job, Rep. Tregenza! Maybe now we'll see the "Gold Money Bill" introduced again, too. Or maybe a legislator there can even introduce a NH version of the Constitutional Tender Act itself? Even nicer.

"Sen. Ketron: TN should study creating alternative to federal currency"

2011-03-07T15:32:00.000-08:00

Tennessee has now seen legislation introduced that is similar to Virginia's resolution to study gold and silver as an alternative currency, for the coming day when Federal Reserve Notes are finally hyper-inflated and depression hits the U.S.

State Sen. Bill Ketron, R-Murfreesboro, has filed a senate joint resolution to study whether Tennessee should adopt its own currency in case of a breakdown of the federal reserve system.

The resolution would create a special joint committee to look at the issue.

Ketron’s proposal mirrors efforts to study the issue in states such as South Carolina and Georgia.

READ THE FULL ARTICLE HERE...

View the bill here.
Citizens of Tennessee: Contact your State Senator here.

Every American citizen TODAY needs to contact the Leaders of the Tennessee Senate and ask them to support this bill -- CLICK HERE to take action NOW!

RED ALERT! Committee Hearing & Vote MONDAY on HB3!

2011-03-05T15:17:00.000-08:00

THIS IS A RED ALERT!

Hearing & Vote on Constitutional Tender Act THIS MONDAY MORNING!
WE NEED YOU THERE!

Last week we told you that the Constitutional Tender Act (HB 3) had been assigned to the Banks and Banking Committee's "Financial Institutions" subcommittee, "to have a hearing" on it. We then requested that you contact subcommittee Chairman Tom Weldon and ask him to hold a hearing on this bill right away.

IT WORKED! Rep. Weldon has called a hearing for THIS MONDAY MORNING (March 7), at 9:00 A.M. It's likely that a vote will be held on the bill at that time as well, deciding whether it will be sent up to the full Committee or not.

WE NEED TO PACK THAT HEARING ROOM WITH SUPPORTERS! If you want to testify for the bill, get there BEFORE 9am to sign up at the front. THEY NEED TO HEAR FROM ALL OF US -- and that includes YOU!

INFO YOU'LL NEED:
WHAT: Financial Institutions and Services Subcommittee Meeting
WHEN: Monday, March 07, 2011 9:00 AM-10:00 AM
WHERE: Coverdell Legislative Office Building (CLOB), Room 506
MAP:

View Larger Map

"Utah House Passes Bill Recognizing Gold, Silver as Legal Tender"

2011-03-04T20:40:00.000-08:00

Utah is the 14th State to introduce sound money legislation like the Constitutional Tender Act this year. Next week, Idaho is set to become the 15th. "First they ignore you, then they laugh at you, then they attack you, then you win."

Utah took its first step Friday toward bringing back the gold standard when the state House passed a bill that would recognize gold and silver coins issued by the federal government as legal currency.

The House voted 47-26 in favor of the legislation that would also exempt the sale of gold from the state capital gains tax and calls for a committee to study alternative currencies for the state.

The legislation now heads to the state Senate, where a vote is expected next week.

Under the bill, the coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.

If the bill passes, Utah would become the first of 13 states that have proposed similar measures. The others states are Colorado, Georgia, Montana, Missouri, Indiana, Iowa, New Hampshire, Oklahoma, South Carolina, Tennessee, Vermont and Washington.

READ THE REST OF THE ARTICLE HERE...

View the bill here.
Citizens of Utah: Contact your State Senator here.

Utah Considers Return to Gold, Silver Coins

2011-03-04T07:06:00.000-08:00

It's been nearly 80 years since the U.S. stopped using gold coins as legal currency, and nearly 40 since the world abandoned the gold standard, but the precious metal could be making a comeback in the United States -- beginning in Utah.

The Utah House was to vote as early as Thursday on legislation that would recognize gold and silver coins issued by the federal government as legal currency in the state. The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.

The legislation, which has 12 co-sponsors, would let Utahans pay their taxes with gold and also calls for a committee to study alternative currencies for the state. It would also exempt the sale of gold from the state capital gains tax.

The bill cleared a state legislative committee on Wednesday, the first of 11 similar bills in statehouses across the country to do so. If the bill clears the House, it would have to pass the Senate before the governor could sign it into law.

READ THE REST OF THE ARTICLE HERE...

View the bill here.
Citizens of Utah: Contact your State Representative here.

Every American 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!

"Rallying for States’ Rights, G.O.P. Legislators Tell Washington to Go Away"

2011-03-01T14:38:00.000-08:00

A NY Times article that doesn't cast Nullification in a bad light? Wait a minute, we aren't being charged with racism, or called neo-Confederates, or laughed at for believing in sound money and the Constitution? Maybe there's hope for America yet!

State legislatures, bolstered by the huge Republican freshman classes that were swept into power from New Hampshire to Montana last year, have intensified their attacks on federal authority in the name of states’ rights...

In Kentucky, the State Senate is expected to take up a bill this week declaring the state a “sanctuary” from meddling by the Environmental Protection Agency.

In Arizona, the State Senate approved a measure this month that would exempt all products made and consumed within its boundaries from federal interstate commerce laws.

The Montana Legislature is considering a bill that would allow the state to nullify federal laws that protect endangered species. And in Georgia, a bill that would override federal monetary regulations by requiring banks to accept payment in gold or silver has survived two readings in the State House of Representatives.

“There’s been a kind of ramping up,” said Michael Boldin, the founder of the Tenth Amendment Center, a research and advocacy group in Los Angeles. Last year, Mr. Boldin said, many of the bills were simply statements of dissatisfaction or intent. This year, he said, the bills are armed with teeth and recommended penalties. The Arizona bill, for instance, would make it a felony for anyone who tried to enforce federal commerce laws.

READ THE REST OF THE ARTICLE HERE...

"Constitutional Tender Act assigned to Financial Institutions subcommittee"

2011-02-24T13:09:00.000-08:00

TAKE ACTION TODAY!

On Tuesday, February 22, 2011, the Constitutional Tender Act (HB 3) was assigned to the Banks and Banking Committee's "Financial Institutions" subcommittee, "to have a hearing" (quote from committee Chairman Morris - see video below). Please contact subcommittee Chairman Tom Weldon and ask him to hold a hearing on this bill right away!

Email: tom.weldon@house.ga.gov
Phone: 404-656-0152
Fax: 706-965-4011
Address: 401 Coverdell Legislative Office Building, Atlanta, Georgia 30334

"Two more small Georgia banks fail"

2011-02-22T12:35:00.000-08:00

This CAN be halted. Call your GA State Legislator today, tell them to PASS HB 3 and SB 116 - bills that will SAVE the banking industry in Georgia, and protect ALL of the people's money.

Two more Georgia banks were closed Friday, including one with offices in Flowery Branch and Canton.

Clarkesville-based Habersham Bank, founded in 1904 in the North Georgia mountains, was seized and sold to SCBT of Orangeburg, S.C., the Federal Deposit Insurance Corp. said.

Citizens Bank of Effingham in Springfield, near Savannah, was acquired by Albany's HeritageBank of the South.

Six banks have failed in Georgia so far this year. A nation-leading 57 banks have failed in Georgia since mid-2008.

Regulators appear to be stepping up the pace of failures to start 2011. Georgia didn’t reach six failures in 2010 until late March.

READ THE REST OF THE ARTICLE HERE...

"The Gold Standard Now" Website

2011-02-22T07:26:00.000-08:00

Great new website, which Ralph Benko contributes to. The day approaches!

Welcome to The Lehrman Institute's TheGoldStandardNow.org which offers clear and authoritative information about the gold standard. Here you will find out what the gold standard is (and isn't), its fascinating history, the passionate debate it sparks, why adopting it will create prosperity, and how it should be done. Because the gold standard affects you. Your every day life. Your opportunities.

TheGoldStandardNow.org is designed for readers, whether plain citizens without special training or high level economists and policy makers, as a guide through what sometimes appears a dizzyingly complex subject. Gold is complex in appearance only. Part of the beauty of the gold standard is its utter simplicity and naturalness, the honest money of democracy. What is the gold standard? Why is it essential for vibrant economic growth — growth for the working family at least as much as for the wealthy? Why is it so controversial? What is its history? What is its future? Does it have potential pitfalls?

And perhaps most important, how does it work? In short, this website is designed to provide you with everything you ever wanted to know about the gold standard but were afraid to ask.

VISIT THE WEBSITE HERE...

"CNBC: Gold, the States, and Federal Monetary Policy"

2011-02-21T05:11:00.000-08:00

People are starting to get it. The tide is turning. A perfect storm is brewing. We MUST NOT let up now.

Why are so many state legislators beginning to call for issuance of a form of gold money?

The Constitution prohibits states from coining money but allows them make “gold and silver Coin a Tender in Payment of Debts….” By prohibiting everything except “gold and silver Coin” the Constitution clearly contemplates this as legitimate.

Legislators in a dozen states are looking at legislation about gold or silver-based currency, including, right now, Utah, South Carolina, Virginia and New Hampshire. States haven’t issued money for over a hundred years. So … why now? There is disgust by state legislators with the federal government’s promiscuously printing money. This reflects the views of those who wrote and adopted the United States Constitution...

...So legislators in twelve states are exploring gold-based currency. It is reprehensible for national elites to deride those who are doing so. Whatever objections one might have to the mechanisms being considered the impulse is legitimate and even noble. State legislators are challenging the federal abuse of an unconstitutional power, challenging the issuance of unhinged paper money.

READ THE REST OF THE ARTICLE HERE...

"Sen. Lee Bright: SC should coin its own money"

2011-02-16T10:36:00.000-08:00

Actually, Sen. Bright is NOT saying SC should "coin money"! Read the article, and you see that he's only saying SC should start using gold & silver coins. Sound familiar? :-)

By Stephen Largen, GoUpstate.com
stephen.largen@shj.com

Continuing a pattern of attempts to assert South Carolina's independence from the federal government, State Sen. Lee Bright, R-Roebuck, has introduced legislation that backs the creation of a new state currency that could protect the financial stability of the Palmetto State in the event of a breakdown of the Federal Reserve System.

Bright's joint resolution calls for the creation of an eight-member joint subcommittee to study the proposal and submit a report to the General Assembly by Nov. 1.

The Federal Reserve System has come under ever-increasing strain during the last several years and will be exposed to ever-increasing and predictably debilitating strain in the years to come, according to the legislation.

“If there is an attempt to monetize the Fed we ought to at least have a study on record that could protect South Carolinians,” Bright said in an interview Friday.

“If folks lose faith in the dollar, we need to have some kind of backup.”

READ THE REST OF THE ARTICLE HERE...

Radio Interview: "Freedom Files" syndicated radio program

2011-02-07T20:35:00.000-08:00

The latest interview with Bill Greene on the Constitutional Tender Act - from the "Freedom Files" Radio Show, with host James Burns:

Latest Issue of DGC Magazine online: "Gold & Silver Sound Money"

2011-02-01T15:44:00.000-08:00

The February 2011 issue of Digital Gold Currency magazine is out, and it's a good one: "Gold & Silver Sound Money: A Dozen U.S. States and Their Sound Money Initiatives".

It covers the most recent sound money bills in Virginia, New Hampshire, Georgia, Delaware, Utah, Montana, Washington, South Carolina, Idaho, Maryland, Colorado, Indiana, Missouri, and Ohio, with some additional articles relating to competition in currencies, digital gold, federal bills, and more.

Best of all - it's FREE to read online, or even download and read later.

Another great job from the folks at DGC!

South Carolina Economic Summit

2011-01-31T11:31:00.000-08:00

Just saw this announcement today - if possible to arrange, it sounds like a good meeting & then legislative hearing to attend. Original link here: http://freedomforsc.com/

The South Carolina Economic Summit

February 7, 2011 at 5:30 pm EST

300 Senate Street

Columbia, SC 29201

The South Carolina Sound Money Committee invites everyone to the South Carolina Economic Summit the evening of February 7th at 5:30 pm EST. This summit is to educate both legislators and Patriots in preparation for the historic Joint House/Senate Hearing on Sound Money, February 8, 2011 at 4:00 pm EST. A special thanks for the courageous efforts of Senator David Thomas, Chairman Banking & Insurance Committee and Representative Mike Pitts for championing Sound Money in South Carolina. We hope other courageous legislators will join this great endeavor. Urge your elected representative, both house and senate to attend the Summit, and especially, the Joint House/Senate Hearing.

Come learn our best defense against the potential collapse of the monetary system. Enjoy dinner while hearing Dr. Edwin Vieira and Dr. Larry Parks, two of the world's leading Constitutional authorities, speak on Sound Money: Gold and Silver. These preeminent speakers have, for decades, studied, lectured and taught on the Constitutional authority of the State monetary policy, moreover how people gain and preserve wealth.

At this momentous cross road, we are offering a place in the history books. This Summit is an opportunity to educate yourself in preparation for these perilous times.

Sponsorships, donations and reservations may be made at www.SCSoundMoney.com/Donate.html

Download for mail, email and invitations: http://www.SCSoundMoney.com/Invitations.html

Directions: www.freedomforsc.com/directions-to-summit.html

Seats for Dinner and Seminar $45.00

Sponsorship Please consider, for yourself or your group, contributing to this once in a lifetime event and be part of the future of South Carolina's Sound Money and leadership role for America.

SC Economic Host Sponsor $750.00

Gold - $500

Silver - $375

Bronze - $250

Patriot - Less than $250

Watch the www.SCSoundMoney.com website for action items such as Senate and House committee hearings at which you can testify, radio talk show call-in talking points and tips for letters to editors.

Radio Segment with Dr. Larry Parks, Dr. Steve Isom and Frank Knapp - 1/26/2011 .

http://tinyurl.com/SCSoundMoney-Radio-Parks

Thank You for your dedication to the cause of Liberty!

The South Carolina Sound Money Committee

Changing to a "Legal" Gold & Silver Economy

2011-01-29T11:08:00.000-08:00

Prof. Michael S. Rozeff recently wrote an article at LewRockwell.com entitled, "Changing to a Silver Economy". It's an excellent exercise in thinking about how to return to an economy based on sound money:

A libertarian in Columbia, South Carolina sent me a message recently. He works at a convenience store. He was interested in introducing silver as a means of payment or currency at this store. His specific ideas I thought would not work because of the taxes on silver. The government treats silver as a collectible subject to income taxes at ordinary rates. He had some ideas of buying bullion and then setting up a market in it by buying at a small discount to the spot price and selling at a small premium, thereby creating a bid-ask spread. He had some idea of getting people to transact in silver.

Instead I spun out the following proposal. It too has the fatal flaw that taxes on silver dealings occur, but thinking about this process is very useful anyway. It shows how stores might become 100% reserve banks and how the economy might transition from paper and slug coin currency to silver money. And, if this skeletal proposal has flaws, others can possibly improve on it. I merely want to demonstrate a degree of feasibility, so that the possibilities become more tangible.

The basic idea is that silver is the unit of account, but silver is not necessarily used as the medium that is used for redemptions.

Prof. Rozeff's idea is a good one, but it's also a little complicated and potentially legally hazardous - we all know how our wonderful federal government likes "competition" in currency, and the Secret Service and IRS are used quite effectively to squelch such attempts. So instead of trying to swim upstream like so many others have attempted... how about using the government's own "legal tender" laws against it, as an alternative?

Step 1. Make the units of account (currency accepted) in the store both "legal tender" Federal Reserve Notes (FRNs) and "legal tender" Gold & Silver Coins (99.9% Eagles & 90% pre-1965 "junk" silver).

Step 2. Price everything in the store in both FRNs and Gold/Silver coins. This is not difficult; pricing in two currencies is done all the time at heavy tourist locations in Europe, the Caribbean, Mexico, and elsewhere. Exchange rates don't fluctuate dramatically enough on a daily basis to change pricing too frequently; and in reality, it would only be the price in FRNs that would need to be changed.

Pricing is fairly easy to calculate: Go to the Solaris "Silver and Gold Payment Calculator" and simply enter the FRN cost to get the converted cost. For example, if an item costs $25 FRN, also label it at $1.25 pre-65-silver; if an item costs $5.99 FRN, also label it at 30¢ pre-65. More expensive items like TVs might cost $259; it can also be labeled at either $12.96 pre-65, or [$5 Gold Eagle + $6.30 pre-65], or [$5 Gold Eagle + $4 Silver Eagles + 70¢ pre-65]. (If a premium needs to be added, that can also be incorporated in the exchange rate.)

Step 3. Offer change in either FRNs or Eagles & pre-65 coins (again, calculated online). Since these are LEGAL TENDER coins under U.S. law, if they are used in actual purchasing transactions (and not just conversion transactions - in other words, "buying" gold or silver coins using FRNs), they have been specifically declared to be NON-taxable (except for sales tax, of course; that would be done based on whatever the final face value of the sale was, as always).

All the store is doing would be to follow the legal tender laws of the U.S. government in pricing, giving change, and paying sales taxes. No one HAS to pay in gold or silver; the store would stay in business with its FRN-using customers. However, those customers would also see the price in FRNs rising on a regular basis, while the price in gold & silver remains fairly constant from week to week. Thus, this would also be a hands-on method of educating the public on the benefits of sound money; you would likely see people going out and getting as much gold & silver coins as they could, knowing that a week later the price in FRNs would be going up, but they could still buy their goods at the store for the same amount of gold & silver that's now worth more (instead of the FRNs which they would need more of).

To put it more simply: what we've done here is introduce competition in currency, between legal tender MONEY and legal tender pieces of paper. I believe MONEY will win.

A lot of this falls in line with what would most likely happen if a State passes the Constitutional Tender Act, which would require States to adhere to Article I, Section 10 of the U.S. Constitution, and use ONLY gold & silver coins in State transactions. Check out the paper "Ending the Federal Reserve from the Bottom Up" for a more detailed explanation of how this would lead to a "legal" gold & silver economy in the U.S.

ALL of these are the kinds of ideas that need to be "kicked around" as much as possible, as the present currency crisis descends upon us. Sound money is, of course, the answer; the question is, how do we get it re-introduced effectively, and quickly. The ConTen Act is most likely to achieve that goal.

Another State Introduces Gold & Silver Currency... In Malaysia

2011-01-27T03:27:00.000-08:00

Why is the U.S. falling behind? The Malaysian national news agency "Bernama" reports that a second Malaysian state is planning to introduce gold and silver currency, in competition with the official fiat currency (the ringgit):

Perak Launches Gold Dinar, Dirham End Of Next Month

IPOH, Jan 25 (Bernama) -- The Perak state government will launch the gold dinar and dirham currency at the end of next month aimed at diversifying the types of savings for the people.

Chairman of the State Committee on Education, Higher Education, ICT, Human Resources, Science and Technology Datuk Mohamad Zahir Khalid said Perak was cooperating with the Kuwait Finance House (KFH) to introduce the gold dinar and dirham because it had vast experience in handling the currency.

"What is certain is that the currency introduced by Perak is vastly different from the currency introduced by Kelantan earlier. The difference will be explained by the Menteri Besar later," he told reporters after chairing the joint meeting with the top management of KFH, here Tuesday.

As noted in the report, the first Malaysian state to introduce the gold dinar and silver dirham as currency was Kel antan, in August of 2010. Interestingly, the Malaysian constitution (in ninth schedule, list I sub 7.a) does not allow its states to issue coins (much like the U.S. Constitution in Article I, Section 10); however, these coins are being privately minted by the "World Islamic Mint" under the authority of the Kelantan government (the Koran, like the Bible, forbids the use of fiat money and fractional reserve banking). The Perak gold dinars and silver dirhams will be produced by Goldnet International, a joint-venture company with the Perak State Development Corporation, in collaboration with KFH (Malaysia) Sdn Bhd.

Officials in Perak have started to backtrack a little after federal officials expressed concern about yet another Malaysian state introducing competition with their fiat money, insisting that the gold and silver coins will be "for investment rather than a mode of transaction" (good luck with that!), and saying they didn't "want the people to misconstrue that it is another form of currency exchange... We do not want people to misunderstand as the state has no authority to execute such a policy."

After all, banking cartels don't like competition, as we've seen from the Federal Reserve in the U.S. We can expect that the Feds will be just as adamant about stopping the States from returning to the Constitutional mandate that they use only gold and silver coins in their financial transactions.

New Hampshire Legislator Pre-Files Resolution for "restoring gold and silver money"

2011-01-23T15:50:00.000-08:00

In New Hampshire, whose State motto is "Live Free or Die", Rep. Norman Tregenza has submitted a "Legislative Service Request" (LSR) that perked our ears up.

(In that State, a bill starts out as an LSR - a title and brief description of the purpose of the proposed legislation, which the representative or Senator submits to the Office of Legislative Services. Staffers in that office spruce it up: for example, they might propose language that clarifies the bill's effect on existing laws.)

If you go to the "Legislative Service Requests (LSR's)" page of the New Hampshire General Court (their House and Senate, which is the largest legislature in the world with 400 State Reps and 24 Senators) and enter the number 0684 in the box labeled "Query the database by LSR Number" you'll get this:

title: urging Congress to pass legislation against losses in value due to money supply by the federal reserve; restoring gold and silver money; and phasing out the federal reserve system.

Nice. Maybe we'll see the "Gold Money Bill" introduced again, too. Or maybe a legislator there can even introduce a NH version of the Constitutional Tender Act? Even nicer.

Video: "Sound Money Rings True"

2011-01-22T15:33:00.000-08:00

Latest video from the folks at Utah Sound Money!

Karat Top: Gold mania goes mainstream.

2011-01-21T16:02:00.000-08:00

by Bradford Plumer
The New Republic
January 13, 2011

In the summer of 1932, Louis McFadden, a former bank president turned Pennsylvania Congressman, stood up on the House floor to reveal a sinister plot. Over the course of a 25-minute speech, he explained how the Federal Reserve — “one of the most corrupt institutions the world has ever known” — was being steered by a cabal of European bankers who had, among other sins, paid for Leon Trotsky’s return ticket to Russia and funded the October Revolution. But McFadden’s pleas to dismantle the Fed and embrace gold (in his view, “the only real money”) were greeted with ridicule. One fellow Republican joked that his poor colleague must be suffering from some sort of “violent disease” — one that “warps the judgment” and “narrows the vision.”

Eighty years later, however, the quest to take down the Fed and revive the gold standard is harder to laugh off. Already this year, in Georgia, a Republican state legislator, Bobby Franklin, has put forward a bill that would require all state residents to use gold and silver coins to pay their taxes — and it has gained surprising support. In Utah, another legislator has proposed allowing residents to mint their own coins and conduct state business with gold. Virginia delegate Bob Marshall is backing the study of a new state currency, as a fail-safe “in the event of a major breakdown of the Federal Reserve System.” (The last time Virginians had an official currency other than the dollar was during the Civil War.) Similar proposals are sprouting up in Montana and Idaho, all with the same goal — to free the states from the Fed, which, many gold bugs contend, has been eroding the value of the dollar and laying the groundwork for ruinous inflation.

If there’s an architect of this new state strategy, it’s William Greene, a 46-year-old conservative activist and founder of RightMarch.com, which he built to “counter the well-financed antics of radical left-wing groups like MoveOn.org.” Two years ago, Greene, who has a Ph.D. in theology and teaches part-time, was reading the Constitution aloud with students at Georgia’s Gainesville State College when the class stumbled over Article 1, Section 10: “No state shall … make any Thing but gold and silver Coin a Tender in Payment of Debts.” The idea hit Greene: What if residents in states like Georgia had to pay their taxes in gold and silver? Businesses and individuals would then have to start stockpiling gold and silver in their bank accounts. As the price of gold rose (as, he reasoned, it inevitably must) and the dollar’s value fell, Georgia’s gold-funded budget would find itself on solid footing. People from other states would flock to Georgia’s banks to open their own gold accounts. Eventually, the masses would rebel against paper money. “At that point,” Greene explains, “the Federal Reserve system will have become unwanted and irrelevant, and can be easily abolished.”

And so, in 2009, Greene took his idea to the Georgia legislature, where it earned a hearing in the banking committee, and drummed up interest from a number of legislators — over the frantic objections of local banking officials. Lately, Greene has been talking to other states, including a task force in Idaho, about his idea. “Going at this from the state level has a much higher chance of success in terms of the eventual elimination of the Fed,” he says.

READ THE REST OF THE ARTICLE HERE...

Original article here

Vote for the Constitutional Tender Act to be on Freedom Watch!

2011-01-20T06:57:00.000-08:00

Help convince The Judge to feature this on his show:

Georgia has introduced the "Constitutional Tender Act" - a bill template that can be introduced in every State legislature in the nation, returning each of them to adherence to the United States Constitution's actual legal tender provisions in Article I, Section 10.

Vote for this today - let's get it out nationally!

http://freedomwatch.uservoice.com/forums/16625-freedom-watch-show-ideas/suggestions/1392629-the-constitutional-tender-act-returning-states-t

9 US States already working to Return to Gold and Silver Currency (video)

2011-01-20T05:15:00.000-08:00

To date Virginia, Utah, Georgia, Indiana, South Carolina, Washington, Missouri, Colorado & Idaho are working to return to the Constitutional Gold and Silver Currency. Holding silver when this happens throughout the world will cause an explosion in the price and a huge short squeeze on the physical silver market. Buy more NOW don't let the manipulation in the paper silver market discourage you.

VIEW ON YOUTUBE HERE...

Virginia Considers Dollar Collapse, Gold Currency

2011-01-20T04:24:00.000-08:00

Written by Alex Newman, The New American

In a stark illustration of the economic fears still plaguing America, a resolution was introduced in the Virginia legislature on January 12 that would create a subcommittee to officially consider the adoption of an alternative currency in case of a total breakdown of the U.S. dollar and the Federal Reserve System.

If the dollar loses its status as the world reserve currency, which appears increasingly likely, the U.S. economy will suffer devastating consequences caused by the resulting hyperinflation — especially since America imports most of its oil. And with the world’s most prominent international institutions and leaders predicting and even calling for an end to dollar hegemony, as well as the creation of a world currency controlled by a global central bank, the time for states to take notice and prepare may be now or never.

The Virginia resolution, introduced by Republican Delegate Robert Marshall, begins with the premise that the state government has a responsibility to protect the lives and property of its citizens. To fulfill that mission requires proper state finances and a “robust private economy,” both of which necessitate a "sound currency." ...

... For now, the resolution has been referred to the Committee on Rules. How far it will go remains to be seen. But with other states considering similar measures and the dollar’s problems becoming increasingly obvious, prudent preparations for a potential catastrophe will only continue building steam.

READ THE REST OF THE ARTICLE HERE...

You can voice your opinion about HJ 557 by contacting your Virginia Legislators. For their contact information, visit: http://conview.state.va.us/whosmy.nsf/main?openform

Tell your representative Delegate that this bill is about more than politics - it's about VIRGINIA, and saving the money of the citizens of this State!

The Utah Sound Money Act - Utah 10th Amendment Center

2010-12-31T09:54:00.000-08:00

Written by: Connor Boyack

...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...

Radio Interview on Constitutional Tender

2010-12-30T09:13:00.000-08:00

Here's an interview with Dr. Bill Greene about the Constitutional Tender Act on the Tim Bryant (and Martha Zoller, who he was subbing for) radio show, broadcast on 12/29/10. For more info: http://www.ConstitutionalTender.com/

Legislation proposes Utah adopt a gold-based system

2010-12-29T01:35:00.000-08:00

By Robert Gehrke
The Salt Lake Tribune
12/28/2010

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!

Constitutional Tender for Georgia? 10th Amendment Center

2010-12-28T06:20:00.000-08:00

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:

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Tenth Amendment Center: "A Date that Lives in Infamy"

2010-12-23T06:01:00.000-08:00

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.

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Another step towards Gold as Money: Boca Raton mall unveils ATM that dispenses gold

2010-12-20T12:28:00.000-08:00

One of the most important aspects of restoring sound money to our country is the need for people to "wrap their heads around" the idea that gold and silver are money, and not just commodities. The Constitutional Tender Act does that by returning the State back to obedience to the Constitution's Article I, Section 10 negative mandate ("No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts").

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.)

What do all of these kinds of questions have in common? They're based on a narrow view of what money is. Too many people have simply gotten used to the idea that pieces of green paper with dead presidents' pictures on them, and that aren't backed by anything of value, are "money," and gold and silver are "commodities." But that's a rather new idea, historically speaking; fiat money (pieces of paper backed by nothing, and declared "legal tender" by the government) was very much frowned upon by our Founders - which is why they explicitly denied to the States the power to use it. Until the past century or so, you could always pay for things with actual gold and silver coins. But, the general population has been trained by our "modern" government to throw that notion away, and to keep using those pieces of paper that lose more and more of their value every day... while gold and silver keeps its value.

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 gold
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.

Like 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.

Chuck Donovan: "IT’S TIME FOR HONEST MONEY IN GEORGIA"

2010-12-17T10:10:00.000-08:00

From Chuck Donovan's blog:

Dear Friends of Liberty,

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...

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Contact Your GA Representative - "Cosponsor & Vote For the Constitutional Tender Act!"

2010-12-09T08:40:00.000-08:00

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]
The Capital
Atlanta, GA

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/.

Thank you,

[YOUR NAME]
[ADDRESS]
[CITY], [STATE] [ZIP]

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!

Another Radio Interview on Constitutional Tender

2010-12-08T11:45:00.000-08:00

Here's an interview with Dr. Bill Greene about the Constitutional Tender Act on the Al Gainey radio show, broadcast on 12/2/10. For more info: http://www.ConstitutionalTender.com/

Original MP3: http://algainey.com/mp3/12-2-10_Dr_Bill_Green.mp3
The Al Gainey Show: http://algainey.com/

Radio Interview on Constitutional Tender

2010-12-08T07:23:00.000-08:00

Here's an interview with Dr. Bill Greene about the Constitutional Tender Act on the Jody Hice radio show, being broadcast today in six states. For more info: http://www.ConstitutionalTender.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/

How the ConTen Act can Return America to Sound Money

2010-12-06T10:53:00.000-08:00

Ron Paul, in his paper "The Political and Economic Agenda for a Real Gold Standard" (originally delivered at the Mises Institute's 1985 conference on the gold standard), discusses the steps which the economist Ludwig von Mises laid out for us to be able to return to a sound currency (which was in his 1952 epilogue to "The Theory of Money and Credit").

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":

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.[7]

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.

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.

So, with the ConTen Act, the foundation is now laid. Dr. Paul goes on:

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.

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.

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.

Renaissance of the Gold Standard?

2010-11-30T20:04:00.000-08:00

Discusses how the gold standard might effectively revive, from the private sector.
http://www.prudentbear.com/index.php/thebearslairview?art_id=10471

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...

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Silver money for Americans

2010-11-30T10:40:00.000-08:00

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...

Silver money for China

2010-11-30T09:40:00.000-08:00

This comes from the "Asociación Cívica Mexicana Pro Plata A.C." It's an interesting approach to solving that country's rising inflation woes...
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.

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 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...

Constitutional Tender Act RE-Introduced in Georgia!

2010-11-16T09:05:00.000-08:00

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!

"Gold ATMs" Reinforce the Constitutional Tender Act

2010-11-15T14:09:00.000-08:00

The technology is available NOW!

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.

Gold- and Silver-denominated Bank Accounts

2010-10-26T13:59:00.000-07:00

THIS is what we're talking about, when we say that if Georgia (or any State) passes the Constitutional Tender Act, the banking business would BOOM here, as people from other States rush to open gold- and silver-denominated bank accounts:

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.

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.

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.

Clean Money

2010-10-17T14:16:00.000-07:00

From the Colorado Tenth Amendment Center...

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...

ATMs That Sell Gold Bars Are Coming Soon to America

2010-10-01T07:52:00.000-07:00

By: Reuters
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.

Elite Bankers Suddenly Interested In Past Hyper-Inflations?

2010-07-28T06:15:00.000-07:00

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?

"CREED OF GOLD" Action movie centered around the Fed banksters - coming soon!

2010-07-23T13:42:00.000-07:00

Official Movie Site: CLICK HERE

Local News Story: Competing currency being accepted across Mid-Michigan

2010-07-15T07:05:00.000-07:00

These local news stories on competing gold & silver currency being accepted locally in Michigan were linked to from The Daily Paul:

Make sure you watch the short videos.

Part 1:

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.

http://www.connectmidmichigan.com/news/story.aspx?id=481793

Part 2:

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.

http://www.connectmidmichigan.com/news/story.aspx?id=482130

Gold: The "New" Money

2010-07-02T12:32:00.000-07:00

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...

READ MORE...

10th Amendment Center uses Constitutional Tender Act as "Model Legislation"!

2010-06-25T10:41:00.000-07:00

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!

James Madison on Constitutional Tender

2010-06-23T14:23:00.000-07:00

"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

Idaho: Hart's Silver Gem Act held in Senate committee

2010-05-31T04:07:00.000-07:00

Hart's Silver Gem Act held in Senate committee

March 24, 11:31 PM · William Young - Boise Economic Policy Examiner
http://www.examiner.com/x-16226-Boise-Economic-Policy-Examiner~y2010m3d24-Harts-Silver-Gem-Act-fails-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.

Ye Olde Specie | Idaho silver-based currency bills might have failed, but the 'sound money' movement marches on | Innovation | Boise Weekly

2010-05-12T06:40:00.001-07:00

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.

Ron Paul: Greece is just the beginning!

2010-05-07T07:15:00.000-07:00

Final Push for SB 416 - "Sound Money in Banking Act"

2010-03-23T14:02:00.000-07:00

So, this Friday (March 26th) is "Crossover Day" in the Georgia legislature. That is, if a bill doesn't get passed by a chamber by Friday, it cannot "cross over" to the other chamber to be passed into law.

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.

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.

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.

And now, I'm asking YOU to do the same. Please call Sen. Hamrick at 404-656-0036, email him at bill.hamrick@senate.ga.gov, 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.

We have ONE WEEK to get SOUND MONEY in Georgia!

2010-03-18T10:57:00.000-07:00

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.

Capitol Office:

228 State Capitol
Atlanta, GA 30334
404-656-5099
770-967-6801 (fax)
Email: james.mills@house.ga.gov
Legislative Assistants:
Gail Morgart: gail.morgart@house.ga.gov
Nataliya Nemsteva: nataliya.nemsteva@house.ga.gov

District Office:

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.

Capitol Office:

121-H State Capitol
Atlanta, GA 30334
(404) 656-0036
(404) 651-6767
Email: bill.hamrick@senate.ga.gov
Legislative Assistant:
Laurie Sparks: laurie.sparks@senate.ga.gov

District Office:

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 chill@gilainc.com
Hill, Cecily (R--180) Secretary 404-656-0177 cecilyhill@tds.net
Allison, Stephen (R-8) Member 404-656-0177 stephen.allison@house.ga.gov
Benfield, Stephanie (D-85) Member 404-656-7859 stuckey@mindspring.com
Coan, Mike (R-101) Member 404-656-6801 repcoan@charter.net
Collins, Toney (D-95) Member 404-656-0265 toneycollins95@gmail.com
Cox, Clay (R-102) Member 404-656-5139 clay.cox@house.ga.gov
Dawkins-Haigler, Dee (D-93) Member 404-656-0287 dee.dawkins-haigler@house.ga.gov
Ehrhart, Earl (R-36) Member 404-463-2247 earl@ehrhart.4emm.com
Fludd, Virgil (D-66) Member 404-656-0314 vfludd@mindspring.com
Frazier, Gloria (D-123) Member 404-656-0265 frazier26@comcast.net
Harden, Buddy (R-147) Member 404-656-0109 bharden@planttel.net
Houston, Penny (R-170) Member 404-463-2247 penny.houston@house.ga.gov
Jordan, Darryl (D-77) Member 404-656-0116 darryl.jordan@house.ga.gov
Kaiser, Margaret (D-59) Member 404-656-0265 mkaiser2@comcast.net
Knight, David (R-126) Member 404-656-0152 david.knight@house.ga.gov
Marin, Pedro "Pete" (D-96) Member 404-656-0314 david.knight@house.ga.gov
Mayo, Rahn (D-91) Member 404-656-6372 rahnmayo@gmail.com
Morris, Greg (R-155) Member 404-656-8441 greg.morris@house.ga.gov
Nix, Randy (R-69) Member 404-656-0177 randy.nix@house.ga.gov
Parrish, Butch (R-156) Member 404-463-2247 butch.parrish@house.ga.gov
Peake, Allen (R-137) Member 404-656-7146 allen@allenpeake.com
Reese, Bobby (R-98) Member 404-656-0254 bobby.reese@house.ga.gov
Rice, Tom (R-51) Member 404-656-5912 tom.rice@house.ga.gov
Scott, Martin (R-2) Member 404-656-0254 martin.scott@house.ga.gov
Shaw, Jay (D-176) Member 404-656-7859 jay.shaw@house.ga.gov
Sheldon, Donna (R-105) Member 404-656-5025 donna.sheldon@house.ga.gov
Sinkfield, Georganna (D-60) Member 404-656-6372 georganna.sinkfield@house.ga.gov
Smith, Earnest (D-122) Member 404-656-6372 ma1027@aol.com
Talton, Willie (R-145) Member 404-656-0254 willie.talton@house.ga.gov
Weldon, Tom (R-3) Member 404-656-0152 tom.weldon@house.ga.gov
Williams, Mark (R-178) Member 404-656-0188 mark@markwilliams.com

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 ralph.hudgens@senate.ga.gov
Butterworth, Jim (R-SS 50) - Secretary - 404-463-5257 - Jim.Butterworth@senate.ga.gov
Bulloch, John (R-SS 11) - Member - 404-656-0040 - john.bulloch@senate.ga.gov
Crosby, John (R-SS 13) - Member - 404-463-5258 - John.Crosby@senate.ga.gov
Goggans, Greg (R-SS 07) - Ex-Officio - 404-463-5263 - greg.goggans@senate.ga.gov
Harbison, Ed (D-SS 15) - Member - 404-656-0074 - ed.harbison@senate.ga.gov
Murphy, Jack (R-SS 27) - Member - 404-656-7127 - jack.murphy@senate.ga.gov
Pearson, Chip (R-SS 51) - Ex-Officio - chip.pearson@senate.ga.gov
Thompson, Steve (D-SS 33) - Member - 404-656-0083 - steve.thompson@senate.ga.gov

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.

Thank you!

Bill Greene
http://www.ConstitutionalTender.com/

Local Idaho News Reports on Their Constitutional Tender Act

2010-03-10T13:01:00.000-08:00

Well, it's more like a hit piece, or at least trying to make fun of what they don't understand... but right now, just about anything is progress!
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.

Constitutional Tender Paper Being Presented At Mises Institute

2010-03-10T07:40:00.000-08:00

I will be presenting a paper on the Constitutional Tender Act at the Mises Institute's "Austrian Scholars Conference" this weekend. The title of the paper is "Ending the Federal Reserve From the Bottom Up: Re-introducing Competitive Currency by State Adherence to Article I, Section 10." Following the Conference, I'll be posting the paper for download, and will put up a notice here on how to get it.

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!

Bill Greene

Send ONE EMAIL for Sound Money!

2010-03-09T16:00:00.000-08:00

Dear Friends of Sound Money,

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:

Email: bill.hamrick@senate.ga.gov
Office: 404-656-0036
Fax: 404-651-6767

* 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 bill.hamrick@senate.ga.gov 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!

LET'S ROLL!

http://www.ConstitutionalTender.com/

Idaho Introduces Its Own "Constitutional Tender Act"!

2010-03-03T20:14:00.000-08:00

Our friends in Idaho have been working for some time now on their own version of a bill to restore constitutionally valid tender in that State, by restoring silver and gold as an alternative to Federal Reserve Notes. This bill, which they are calling the Idaho Constitutional Tender Act, was introduced on March 2nd in the House Ways & Means Committee. It has been assigned bill number 622.

I've been interacting with the members of The Idaho Sound Money Task Force (which includes monetary experts, state legislators, and interested citizens) for a number of months now, and have watched this bill come to fruition after several iterations. I have to say, I'm getting more and more excited as I see more and more states "coming on board" the sound money train!