"Gold ATMs" Reinforce the Constitutional Tender Act

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

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

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

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?

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!

Official Movie Site: CLICK HERE

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

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