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Utah Pushes To Accept Gold, Silver As Alternative Currency
A month ago we reported that the state of Virginia has established a subcommittee to study alternatives in the case of a terminal "Fed" breakdown, and would propose gold as a sound alternative to the existing fiat currency. Now, the state of Utah has gone a step further and is actually voting, as early as today, on whether to recognize gold and silver coins, issued by the federal government, as legal currency, a move that would send a huge signal to the Marriner Eccles building that Americans have had enough of the Fed's dollar debasement. "The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative." Reports Foxnews: "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." Paying taxes in gold? Interesting. We certainly hope this was not highlighted due to being the only viable use of funds, as one would question the legitimacy of the entire proposal. Finally: "Attorney and Tea Party activist Larry Hilton, author of the original bill, said he doesn't foresee any roadblocks." We shall see about that, but in the meantime it is worth highlighting that the onslaught against the dollar is coming not only from China which as we reported yesterday is pushing to convert the renminbi to a global reserve currency, but from within, as more and more states realize that the viability of the dollar is now crippled, thanks to the Chairprinter.
From FoxNews:
"There's enough uneasiness going on in the economy to trigger people to feel that, hey, having a little Plan B, kind of a backup system, is not a bad idea," he told FoxNews.com.
The U.S. used some version of the gold standard from 1873 until 1933, when President Franklin D. Roosevelt outlawed the private ownership of gold amid the Great Depression. An international monetary system based on a gold-exchange standard continued until 1971 when President Richard Nixon stopped the U.S. from redeeming dollars for gold altogether.
Critics of the gold standard say it limits countries' control over its monetary policy and leaves them vulnerable to financial shocks, such as the Great Depression. But supporters argue that the current financial system's dependence on the Federal Reserve exposes the value of U.S. money to the threat of inflation.
Not surprisingly, Ron Paul is all over this proposal:
Rep. Ron Paul, a longtime critic of the Federal Reserve who has called on a return to the gold standard, has praised Hilton's efforts.
"Efforts such as yours in states around the country highlight the importance of returning to sound money," Paul wrote in a letter to Hilton. "Even if such efforts fail to achieve legislative success on their first try, their importance lies in bringing to the public's attention the problem of the ever-weakening dollar and the necessity of returning to a sound monetary system."
While the original bill proposed by Hilton also required foreign minted coins to be accepted as legal tender, the revision only limits US produced coins. Even with this setback, Hilton said that he's "willing to take it step-by step."
As we reported yesterday, Bernanke told the Senate yesterday that he does no envision the gold standard as a viable alternative to the disastrous fiat system currently in place, which has resulted in revolutions across the development world. "It did deliver price stability over long periods of time, but over shorter periods of time it caused wide swings in prices related to changes in demand or supply of gold. So I don't think it's a panacea." Supposedly Bernanke has not seen the VIX in 2008.
The bill, once passed will be a critical stepping stone to not only undermining the dollar but to further stablishing gold as a true reserve currency alternative:
Jeff Bell, a policy director for the Washington-based American Principles in Action (APPIA), which helped shape the Utah bill, told FoxNews.com that passage of the bill would send a message to Washington and other states.
"People sense that in the era of quantitative easing and zero interest rates, something has gone haywire with our monetary policy. But people are afraid to say it," said Bell, who was an adviser to Ronald Reagan's 1976 and 1980 presidential campaigns. "If one state recognizes gold as a valid currency, I think it would embolden people not just in other states but in Washington."
Bell credited Tea Party activists for advancing the legislation this far. Rep. Brad Galvez, who introduced the legislation, is a freshman legislator backed by the Tea Party.
"Saying we now recognize gold as money is a big step forward," he said.
And once Utah proves a successful test bed of this near-revolutionary refutation of the Chairman's ideology, everyone else will follow:
Twelve other states have offered similar proposals: Georgia, Montana, Missouri, Colorado, Indiana, Iowa, New Hampshire, South Carolina, Tennessee, Washington, Vermont and Oklahoma.
It goes without saying that we will track these developments closely, and carefully observe who(and why) voices any opposition to comparable proposals elsewhere.
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Wait a minute... Joseph Smith had these gold plates, he copied them onto paper and then conveniently handed them back to some angel... why he is in on the paper gold scam too!
well, doc, should we turn to and open our gyn-oncology hymnals to #99: "With Paper Gold, You've Got Pussy Galore, But Without Phys, No Jizz"?
btw, that angel was good to the last drop for the man, too, eh?
Re-read the US Constitution, pardner.
Gresham's Law indicates that as long as FRN can be used to pay taxes, it will be used to pay taxes, and all other superior forms of money will be hoarded.
Precisely, the day that my county indexes property taxes to the dollar is the day I'll consider paying taxes in gold, until then you'll take my worthless paper fiat and I'll keep the gold.
SHHHHH!!! Don't give the political vermin any ideas, dammit!!
Holy shit, busting out calculator.
"This note is legal tender for all debts, public and private." Right on everyone's FRN's.
Yes, I would like to see the list of people who oppose gold and support the Bernank 'Queasing' policy.
math man, johnny bravo, redneck republicant, retard hall of fame all star- william the bastard.
I know the concensus view is it would be crazy to pay taxes with gold, but I noticed they weren't going after capital gains -- this could be a big clue.
If you got your gold cheap (say $600, $800) and paid taxes with it, the big question would be, since you were paying in gold rather than converting into USD, would the Feds be able to collect capital gains tax on it. This could make paying in gold a net positive relative to converting and paying in FRN for those that would need to convert back to FRN anyway.
All depends on how they handle taxes and/or exchange rates.
Gold "is" money,nothing more nothing less.
Since my silver and gold is US currency, with a nominal face value in US Dollars, note FRNs are not, I am very confused as to how they can charge tax if they appreciate in some private linens. When the FRNs purchase more bread, I am not taxed at 28% of the gain.
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This is just a way for Utah and Virginy to accumulate gold/silver for phase two.
Dennis Gartman is an ass lickin cocksucker.(Bankster's Bitch) This was found on Harvey Organ's website and I agree 100% " Yesterday, Dennis Gartman was on CNBC explaining to his audience the virtues of gold and silver. Last night, my miraculous intervention by spirits unknown, Dennis wrote to his clients that he has decided to liquify all of his gold contracts. And lo and behold, we had a big raid today. As I have mentioned to you on many occasions Dennis Gartman gets the sell side of gold and silver right all the time. You see, Gartman's sell side accentuates the downward movement in the precious metals. The bankers told Gartman that there was going to be a raid in the morning.
Gartman never gets the buy side right because the bankers will not tell when they must cover. I have shown this to the commission on many occasions but I guess it falls on deaf ears."
No I did not loose money because of him,I just found it strange that he was so bullish on gold all of a sudden.This verify's my suspicions of him. I always thought he talked like there was an extra large cucumber up his ass. http://harveyorgan.blogspot.com/ http://www.timothysykes.com/2009/12/dennis-gartmans-trading-performance-stinks-told-ya-so/
honey: we're lookin for melons that taste good
a little travelling music 4 luk and we're soon discussing econ w/ idolotrous silversmiths in actxZ.
The whole money is the problem. The gold is the problem. Let decentralize the economies and make it again asset-based. Create local currencies, deglobalize and promote bartering and sabotage the concept of interests.
we are witnessing the crumblings of the american empire....when imperial provinces seek alternate currencies - as indeed they should with such massive debasement - it is only a matter of time before they seek alternative governments....
the stupendous arrogance of the ruling elite has utterly decimated america and yet it spends trillions on its wars of imperial aggression while the home front craters into the blackhole created by the two previous chairshits of the frb....
the arizona province was so desperate for cash that it sold its own government buildings - legislature and executive buildings....what comparable examples of imbecility and depravity exist for an imploding imperium?
fuck the banksters
Only in Utah could this happen. The state that gave us MLM....
You states do my heart good...
BTW: Oregon is not on the list because they are going to use their 2 most abundant commodities for money...
Rust and mold...
go silver!
YouTube>> Currency Extinction Event;
U.S. Pledged to the Chinese
How about they mint their own silver coins and sell them at a premium. They could then generate revenue realizing they would simply be collected and rarely used to pay their taxes. If they do... great. Actually use Gresham's law to generate revenue.
If this thing catches on and old gold coins $1 thru $20 are used for payment of labour, federal tax revenues from the state will drop to almost zero. Can't tax a guy who only gets paid $10 a week.
Don't get too happy about this move by the states folks. This just gets the states out of the position of not honoring the constitution. "No state shall make anything other than gold and silver coin payments for debts". If one would do a little research though, taxing lawful money personal income is unconstitutional. So this just gives the states a little cover.
JP Morgan Starts Accepting Gold as Collateral, 7 February 2011, by J. Turbin (GoldAlert) http://www.goldalert.com/2011/02/jp-mogran-starts-accepting-gold-as-collateral/
This is how it is done, folks: Pay taxes with credit cards and then..... bwaaaaaaaaa, credit bitchez!
Critics of the gold standard say it limits countries' control over its monetary policy and leaves them vulnerable to financial shocks, such as the Great Depression.
Lies.
The Great Depression was caused by the Fed the very same way the Fed has caused this depression we're in now.
In both cases the Fed went years with loose money, then suddenly pulled back all that loose money, crashing the economy.
If the Fed had never been created, the Great Depression would not have occurred, and the depression we're in now would not have occurred.
... limits countries' control over its monetary policy ...
There should not be any monetary policy other than periodically adjusting the exchange ratio of currency for gold, using a simple formula: currency / ounces of gold held in reserve.
It would allow the treasury to expand the money supply (currency supply) to keep up with economic expansion, but would require adjusting the exchange ratio, instantly notifying everyone the money supply has expanded and each dollar is worth a little less gold, which would be political suicide, a strong deterant to expanding the money supply.
It would force the federal government to operate on taxes collected or borrow money from the private sector, driving market interest rates up, thereby detering such borrowing.
It would be a strong deterant to imperialistic invasions and occupations of other nations since the government simply couldn't afford it.
It would be a strong deterant to massive welfare programs since the government simply couldn't afford them.
It would be a strong deterant to pork barrel spending since the government simply couldn't afford it.
There would be no economic boom-bust cycles caused by the Fed jockying with the money supply and interest rates, since there would be no Fed, hence no need for keynesian stimulus spending, no need for QE, none of that crap.
Banks who take excessive risks, sustain massive losses, and become insolvent would simply go bankrupt and out of business, the government couldn't afford to bail them out, and there would be no Fed to print money and bail them out.
There would be no fractional reserve lending, no creating money out of thin air with a bookeeping entry, loans would be limited to deposits.
Oh God! Not that "silly yellow metal" again? And tell me why Central Banks store so much of it?
This is comic,what idiot is going to pay gold or silver for debts?.
And get what in return, fiat crap?.
Before this has a chance of working, much smaller amounts of gold and silver wold have to be made into new coins.
Something a state cannot do.
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