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Arizona Challenges the Fed’s Money Monopoly

Discussion in 'Gold Silver (All things Metal)' started by SongSungAU, Mar 6, 2017.



  1. SongSungAU

    SongSungAU Midas Member Midas Member

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    Arizona Challenges the Fed’s Money Monopoly

    Written by Ron Paul
    Sunday March 5, 2017[​IMG]

    [​IMG]

    History shows that, if individuals have the freedom to choose what to use as money, they will likely opt for gold or silver.

    Of course, modern politicians and their Keynesian enablers despise the gold or silver standard. This is because linking a currency to a precious metal limits the ability of central banks to finance the growth of the welfare-warfare state via the inflation tax. This forces politicians to finance big government much more with direct means of taxation.

    Despite the hostility toward gold from modern politicians, gold played a role in US monetary policy for sixty years after the creation of the Federal Reserve. Then, in 1971, as concerns over the US government’s increasing deficits led many foreign governments to convert their holdings of US dollars to gold, President Nixon closed the gold window, creating America’s first purely fiat currency.

    America’s 46-year experiment in fiat currency has gone exactly as followers of the Austrian school predicted: a continuing decline in the dollar’s purchasing power accompanied by a decline in the standard of living of middle- and working-class Americans, a series of Federal Reserve-created booms followed by increasingly severe busts, and an explosive growth in government spending. Federal Reserve policies are also behind much of the increase in income inequality.

    Since the 2008 Fed-created economic meltdown, more Americans have become aware of the Federal Reserve's responsibility for America's economic problems. This growing anti-Fed sentiment is one of the key factors behind the liberty movement’s growth and represents the most serious challenge to the Fed's legitimacy in its history. This movement has made “Audit the Fed” into a major national issue that is now closer than ever to being signed into law.

    Audit the Fed is not the only focus of the growing anti-Fed movement. For example, this Wednesday the Arizona Senate Finance and Rules Committees will consider legislation (HB 2014) officially defining gold, silver, and other precious metals as legal tender. The bill also exempts transactions in precious metals from state capital gains taxes, thus ensuring that people are not punished by the taxman for rejecting Federal Reserve notes in favor of gold or silver. Since inflation increases the value of precious metals, these taxes give the government one more way to profit from the Federal Reserve’s currency debasement.

    HB 2014 is a very important and timely piece of legislation. The Federal Reserve’s failure to reignite the economy with record-low interest rates since the last crash is a sign that we may soon see the dollar’s collapse. It is therefore imperative that the law protect people’s right to use alternatives to what may soon be virtually worthless Federal Reserve notes.

    Passage of HB 2014 would also send a message to Congress and the Trump administration that the anti-Fed movement is growing in influence. Thus, passage of this bill will not just strengthen movements in other states to pass similar legislation; it will also help build support for the Audit the Fed bill and legislation repealing federal legal tender laws.

    This Wednesday I will be in Arizona to help rally support for HB 2014, speaking on behalf of the bill before the Arizona Senate Finance Committee at 9:00 a.m. I will also be speaking at a rally at noon at the Arizona state capitol. I hope every supporter of sound money in the Phoenix area joins me to show their support for ending the Fed’s money monopoly. Copyright © 2017 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.

    http://ronpaulinstitute.org/archive.../arizona-challenges-the-fed-s-money-monopoly/
     
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  2. SongSungAU

    SongSungAU Midas Member Midas Member

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    Arizona Senate Committee Passes Bill To Treat Gold As Money, Remove Capital Gains Tax

    by Tyler Durden
    Mar 8, 2017 8:35 PM
    Via Michael Boldin of The Tenth Amendment Center,

    Today, an Arizona Senate Committee passed a bill that would eliminate state capital gains taxes on gold and silver specie, and encourage its use as currency. Final approval of the legislation would help undermine the Federal Reserve’s monopoly on money.

    [​IMG]

    Former US Rep. Ron Paul testified today in the Senate Finance Committee in support of House Bill 2014 (HB2014). The legislation, which previously passed the state House by a 35-24 vote, would eliminate state capital gains taxes on income “derived from the exchange of one kind of legal tender for another kind of legal tender.” The bill defines legal tender as “a medium of exchange, including specie, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.” “Specie” means coins having precious metal content.

    In effect, passage of the bill would, as Paul noted, “legalize competition in a Constitutional fashion.”

    Under current Arizona law, gold and silver are subject to capital gains tax when exchanged for Federal Reserve notes, or when used in barter transactions. If the purchasing power of the Federal Reserve note has decreased due to inflation, the metals’ nominal dollar value generally rises and that triggers a “gain.” In most cases, of course, the capital gain is purely fictional. But these “gains” are still taxed — thus unfairly punishing people using precious metals as money.

    “We ought not to tax money, and that’s a good idea. It makes no sense to tax money,” said Paul. “Paper is not money, it’s a substitute for money and it’s fraud,” Paul continued, noting the importance of honesty money vs federal reserve notes.

    Today, the Senate Finance Committee passed the bill by a 4-3 vote along party lines.

    AN IMPORTANT STEP FORWARD

    Passage of HB2014 would remove the amount of any net capital gain derived from the exchange of one kind of legal tender for another kind of legal tender or specie (gold and silver coins) from their gross income on their state income tax. In other words, individuals buying gold or silver bullion, or utilizing gold and silver in a transaction, would no longer be subject to state taxes on the exchange.

    Bill sponsor Rep. Mark Finchem (R-Tucson) discussed this as well. “What the IRS has figured out at the federal level is to target inflation as a gain. They call it capital gains.” He noted that the bill would help Arizona residents “protect their conversion of one kind of currency for another.”

    Passage into law would mark an important step towards currency competition. If sound money gains a foothold in the marketplace against Federal Reserve notes, the people would be able to choose the time-tested stability of gold and silver over the central bank’s rapidly-depreciating paper currency. The freedom of choice expanded by HB2014 would allow Arizona residents to secure the purchasing power of their money.

    Ron Paul added that he considered the Arizona bill to be “very important” because it would also serve as an educational effort for other states. In fact, similar legislation is also under consideration in Idaho, Texas, Tennessee, Virginia, and Maine.

    “The responsibility is on the states to follow the constitution,” said Paul.

    BACKGROUND INFORMATION

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

    But the United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.”

    The Arizona bills take a step towards that constitutional requirement, ignored for decades in every state. Such a tactic would undermine the monopoly or the Federal Reserve by introducing competition into the monetary system.

    Professor William Greene is an expert on constitutional tender and said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.

    “Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

    Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state by state level is what will get us there.

    source:
    http://www.zerohedge.com/news/2017-...ill-treat-gold-money-remove-capital-gains-tax
     
  3. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Ron Paul: Testimony in Support of Arizona Honest Money Bill, HB2014 on 03-08-17
    Tenth Amendment Center



    Published on Mar 8, 2017
    Ron Paul visited the Arizona state Senate Committee on Finance on Wed. March 8, 2017 to testify in support of what he called a "very important" honest money bill, HB2014.

    "If you want to have liberty and limit the size of government, you have to have honest money," said Paul.

    The proposed legislation would treat gold and silver as they should be under the Constitution - that is, as money. In doing so, the state would no longer tax "capital gains" on the exchange of federal reserve notes for gold/silver and vice versa.

    "We ought not to tax money - and that's a good idea. It makes no sense to tax money," said Paul.

    Passage into law would remove a major roadblock in the way of gold and silver being used by everyday people. As Paul noted, the legislation would be "legalizing competition in a constitutional fashion."

    The bill had previously passed the state House and after Paul's testimony, passed the Senate committee by a 4-3- vote. It will now need to pass the Senate rules committee and the full Senate before heading to the Governor's desk.

    Similar legislation is up for consideration in 2017 in Maine, Idaho, Alabama, Texas, and elsewhere.

    Thank you to the Arizona chapters of both the Campaign for Liberty and Tenth Amendment Center for all their work.
     
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