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Going Back To What Works: Gold Is Money Again (Thanks To Utah)

Tyler Durden's picture




 

As of today you really can pay your taxes, your credit cards, your mortgage, shop at Costco, and buy your groceries without so much as a bank account while using sound money.

As PopularLiberty.com explains,

The fact that Texas announced that it withdrawing its gold from Manhattan and is creating a state gold depository generated a good deal of interest because there would also be a way to transfer gold to others via said depository. So much interest that Texas received calls from all over the United States from folks that wanted to be part of such a system. The articles covering the future Texas depository cumulatively received millions of views. What was missed in all of this coverage is that a functional, and legal depository that allows anyone in the country to pay and save in gold dollars already exists. In Utah.

 

The United Precious Metals Association in Utah has gold and now separate silver accounts that act as checking accounts do at any bank or credit union. The way it works is that members deposit Federal Reserve Notes (or paper dollars) into their UPMA account which in turn translates them into golden dollars (or silver). The golden dollars are based off the $50 one ounce gold coins produced by the Treasury of The United States. They are legal tender under the law and are protected as such. So if I were to deposit $1,200 FRNs then I would have $50 golden dollars.

 

UPMA is the only institution in the country that I know of that doesn't have a buy/sell spread on their Golden Eagles or Silver Eagles. This means that all my $1,200 FRNs once converted to gold could be spent the next day without losing anything to any sort of premium. The price of a Gold Eagle is 5.8% above spot but when you 'cash out' you do so at 5.8% above gold spot. This effectively removes that barrier from sound money.

 

This year the UPMA released a gold backed debit card via American Express. The way it works is that a member may spend up to half of their gold or silver dollars in any given month period using the card. When I interviewed the founder of UPMA today, Larry Hilton, I learned that the way the card works is that they have made a contract with American Express so that UPMA members can use what are technically credit cards as a debit card anywhere American Express is accepted. The members are added on as 'employees'. Right now there are already hundreds of people around the country using this method of payment. They are literally spending gold on groceries without losing anything to premiums or in transaction fees to UPMA. In fact they get 1% cash back in gold.

 

This service is available to anyone in the United States and requires no credit check whatsoever. Using the billpay service online one can pay for what American Express can't such as credit card bills, property taxes, or your mortgage. The golden dollars are simply converted right back into FRNs and paid out. When asked Mr. Hilton affirmed that there are many people that don't store anything in the banks anymore thanks to this service. They are obsolete if you want to use sound money. There are no fees associated with the use of the card. Members that store more than $50 in golden dollars do pay a small storage/membership fee of 10 golden cents or $2.50 FRNs and an additional 0.25 FRNs for every additional $50. These $50 Golden Eagles can also be withdrawn and sent to you directly.

 

The United Precious Metals Association has the full backing of Utah Attorney General Sean Reyes who also uses the service. The legal foundation was set up in 2010 and 2012 here in Utah where the vault is located. Many members of the board including General Counsel Larry Hilton are lawyers that specialize in law regarding the use of legal tender.

 

An elected board of members makes regular audits to assure that all of the gold and silver is there and reports to the general membership every year at the monetary summit. This year it will be held on October 17 in Salt Lake City. The vault is insured from theft and fraud via the Llyods of London. They hold a 100% reserve ratio.

And as UPMA summarizes, this is nothing new and it is not different this time...In fact we are going back to what works...

All very unmodern? The gold standard is not up-to-date only if we have a yen for running away from economic success in the form of stable prices and major growth. After Nixon went off gold in 1971, abrogating the conversion agreement with the foreign nations, and keeping gold-holding illegal in the United States, inflation did things that were unheard of. The price level leapt by 200% from the late 1960s to the early 1980s, a period also bedeviled by the economic sluggishness known as “stagflation,” where double-dip recessions came every few years and the long term growth rate sunk below 2%. In the 1980s and 1990s, the Fed returned to conducting monetary policy in view of the gold price, and sure enough the consumer price index stabilized at one-third the stagflation level and growth rebounded past 3.5% per year. The verification just kept on coming: key on gold stability – effectively making the dollar convertible on demand to gold at a fixed price – and watch prices stay the same and growth shoot the moon.

 

In the 2000s, we are witness to a Fed that has disdained the gold price now for a decade. The result has been the loss of that decade to economic growth, as well as stirrings in key commodities such as oil and food, if not the brutal comprehensive arrival of inflation. If the Fed decided today to target the price of gold as the pole star in its monetary operations, there is no historically conversant reason to believe that we would have unfold before us anything but yet another era of price stability and maximal economic growth. For this is the only thing that has ever resulted from gold standards and their approximations throughout our history.

 

The arc of time has revealed connections that we have the opportunity to re-forge today. The United States became the largest economy in the world in the 1870s, was two-and-a-half times larger than the second-place nation in 1913, boomed along with everyone else in the Bretton Woods era, and in the 1980s and 1990s did not succumb to the “Eurosclerosis” or any “Japan disease” that afflicted its major economic partners. In every episode of fantastic economic performance – in terms of both price stability and major growth – there was a commitment to gold.

Choice in currency is being recognized as a basic human right around the world. Utah was the first State to make gold and silver coins legal tender alongside the U.S. dollar on March 25th, 2011.

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Sun, 09/20/2015 - 22:41 | 6573276 MANvsMACHINE
MANvsMACHINE's picture

Yay!

Sun, 09/20/2015 - 22:48 | 6573297 Money Counterfeiter
Money Counterfeiter's picture

Every asset and dime the money counterfeiters have should be confiscated and given back to the people in gold.

Sun, 09/20/2015 - 23:36 | 6573430 greenskeeper carl
greenskeeper carl's picture

I was only half interested and ready to dismiss this until I got to the part where it said it maintained a 100% reserve ratio. No more fractional reserve bullshit. Imagine that. Definitely keeping an eye on this. Everything that guy said about the gold standard is true, greatest period of prosperity the world has even seen, and eventually, after the mess we have created is cleaned up, maybe we can return to that one day.

Sun, 09/20/2015 - 23:49 | 6573453 chumbawamba
chumbawamba's picture

This is really stupid.  Whether you pay your bills in FRN or "gold", what's the difference?  It's still dollar for dollar.  Big fucking deal.

It doesn't matter how you pay your bills; however you do it, you'll be ultimately converting into the common currency.  What matters is what backs the currency with which you pay your bills.

This will only make sense if/when the FRN collapses.  And even then there's no guarantee this "depository" will still be around redeeming transactions for metal.

I am Chumbawamba.

Mon, 09/21/2015 - 00:29 | 6573517 TheReplacement
TheReplacement's picture

You missed the point.  This is a place to store your wealth that actually have 100% reserve and a way to spend it, if you so choose, in the currently accepted manner. 

Suppose the dollar tanks.  Your gold will still be there.  You can take it out as gold.  No doubt, if there is another currency to replace the dollar then you will be able to convert, if you so choose.

I bet you didn't read the bit about audits either.

Mon, 09/21/2015 - 01:26 | 6573592 Oh regional Indian
Oh regional Indian's picture

"YOUR" gold will still be "There"...

Where? In yer hand? Safe in yoru safe?

Bitgold, Bitoin....get ready to scramble for bits, all this is kabuki...

This, however, is definitely NOT Kabuki...

https://www.youtube.com/watch?v=wLWbiGxYq10

Mon, 09/21/2015 - 01:41 | 6573610 chumbawamba
chumbawamba's picture

I know, huh?  Like it's any safer in some random repository thousands of miles away than in my safe securely anchored to my castle.  At least in a SHTF situation I can just go open my safe for my gold.  Not so sure it will be available or even there at the "repository" under the same scenario.

-Chumblez.

Mon, 09/21/2015 - 02:20 | 6573640 Oh regional Indian
Oh regional Indian's picture

Depository becomes repository becomes suppository...

Such is how the golden cookie crumblez....

Mon, 09/21/2015 - 04:42 | 6573724 bigkahuna
bigkahuna's picture

Man, Ive heard of boating accidents, but thats really going to the next level...

Mon, 09/21/2015 - 05:23 | 6573740 Four chan
Four chan's picture

mormons and my gold will never meet.

Mon, 09/21/2015 - 06:37 | 6573770 VinceFostersGhost
VinceFostersGhost's picture

 

 

Glenn Beck and Donald Trump will probably make peace first.

 

After which the Don will razz Glenn for buying his gold from Goldline.

 

Can't blame him......that's some pretty super expensive gold. It should come with a new car.

Mon, 09/21/2015 - 07:11 | 6573834 VinceFostersGhost
VinceFostersGhost's picture

 

 

 

 

Nurse.....a shot of adrenalin.....STAT!

 

No...the one with the long needle.

 

Yes....like Pulp Fiction.

Mon, 09/21/2015 - 07:28 | 6573858 N2OJoe
N2OJoe's picture

Some of you guys are missing the point. Keep the account funded with whatever amount you need to pay your bills in lieu of a bank account. If/when the dollar takes a shit, you have another layer of protection instead of having it in a bank or under your mattress. Sure, maybe the depository may have "problems" when SHTF but a bank will with 100% certainty have problems, and under your mattress devaluation is assured.

Your main hoard should still be at the bottom of the lake anyway. If you put too many FRNs for your comfort into it, you can apparently TAKE DELIVERY of your oz according to the article.

Mon, 09/21/2015 - 07:43 | 6573886 VinceFostersGhost
VinceFostersGhost's picture

 

 

 

 

TAKE DELIVERY

 

You can do that?

 

OK....where's the damn camera?

Mon, 09/21/2015 - 12:40 | 6574953 OrangeJews
OrangeJews's picture

So will people just buy their gold and silver from them instead of all the other places?  Where are they going to get all of the gold?  How long does it take from cash to them to Gold/Silver in my hands?  Neat but still a little off.

Mon, 09/21/2015 - 06:55 | 6573810 Cloud9.5
Cloud9.5's picture

Depends on what they have to sell.  The Mormans I know have a good bit of food.

Mon, 09/21/2015 - 08:12 | 6573942 ImGumbydmmt
ImGumbydmmt's picture

Yes, I really want to like this but memories of Bernie Maddoff and then there is that SouthPark  Episode

"And its gone. Next customer please"

just keep coming back to me.

So I am Supposed to trust them with my gold? Well ok i guess, is that better or worse than trusting a bank?

I am honestly not sure anymore.

after the route on gold and silver in 2013 one thing is for certain.

I don't know SH@# about how to out mauever the Elite and will get clobbered everytime i try.

Diversify.

Because like Carlin Said

"Is a big club, but you ain't in it"

 

I Miss America.

 

Mon, 09/21/2015 - 08:17 | 6573954 ImGumbydmmt
ImGumbydmmt's picture

One additional Thought.

It is appealing to  take some money OUT of the Fractional Reserve Banking System, Just to, in my own little way, send a middle finger to all of "them", the Fed Bankers, Dimon,  Rothchilds,etc.

Mon, 09/21/2015 - 16:29 | 6576089 mkkby
mkkby's picture

If gold is ever confiscated again, places like this will be out of business the first day.

Having said that, it would be nice to have something like this FOR AFTER THE RESET when converting PMs to the new trade unit will be necessary.  Until then, I can store my own gold.  Or at least I could up until the unfortunate boating accident.

Mon, 09/21/2015 - 04:44 | 6573726 TongueStun
TongueStun's picture

How about those socialist jew media attacks on trump the emmys? HE'S THE REAL DEAL IF THE SOCIALIST JEW MEDIA ATTACKS HIM LIKE THAT......

 

VOTE FOR WHOMEVER THE , GREEDY LYING SOCIALIST JEW MEDIA ATTACKS THE MOST!!!

Mon, 09/21/2015 - 08:36 | 6573997 greenskeeper carl
greenskeeper carl's picture

Funny how everyone questions everything about Obamas past( correctly, I might add) but no one seems bothered by anything trump did before a year or so ago. While I certainly agree with those questioning Obamas past, as there are some glaring problems there, it's curious that because you agree with trump no, today, he is given a pass for being a liberal and friends with the Clinton's, and the slimiest of shady business people. You trump cheerleaders are the true definition of sheep. Wake the fuck up.

Mon, 09/21/2015 - 05:51 | 6573755 Winston Churchill
Winston Churchill's picture

But the sun never shines there.

Mon, 09/21/2015 - 03:38 | 6573694 rbianco3
rbianco3's picture

Bitcoin is the mark of the beast, government is becoming insterested in issuing their own digital currency.

 

Moving to bitcoin is a crapshoot, gambling nothing more. Putting thy trust in digital money is exactly what the new world order is waiting for us to accept.

Mon, 09/21/2015 - 08:47 | 6574008 BlindMonkey
BlindMonkey's picture

Sweet.  That is you on the scooter I assume?  The face is familar from the video I saw of your TED speech.

Mon, 09/21/2015 - 09:30 | 6574146 HowdyDoody
HowdyDoody's picture

Breaking paradigms?

The BS-meter has gone to 11.

Mon, 09/21/2015 - 01:49 | 6573605 sunaJ
sunaJ's picture

This is my state and I am proud of them for one thing: No, not their liquor laws, but their distrust of federal government.  They have their own brand of control that extends to the local, where yes, they do not like control of outside sources, but it is of a breed that spawns from outside meddling (which was born from the idea of theocratic rule).  That distrust is well-founded, but as the old saying goes, "We see the enemy and the enemy is us."  Utahns are distrustful of the federal government by heritage, but its genesis derives from their desire to impose strict religious controls on their domain.  I live here, and in guaging the general consensus on libery and freedom... "they are not the droids you are looking for", so to speak.  Starting with the states is better than lobbying some distant federal district, however...just don't give Utahns too much credit.   I applaud the idea of safeguarding the idea of local control - which will always come down to money and currency, but in the hx of Mormons (and Utah), it was for nepotism and the exclusion of anyone that didn't believe in their lord.  Utahns will always be hawkish in this regard - and just read the history to see how they tried their own currencies (for control).

 

Again, bravo, but a bravo with a libertarian warning about control and tyranny and manipulation.  That is as optimistic as I get.

 

 

 

Mon, 09/21/2015 - 01:57 | 6573626 chumbawamba
chumbawamba's picture

Dude, you place way too much trust in Mormons.

I am Chumbawamba.

Mon, 09/21/2015 - 02:10 | 6573631 sunaJ
sunaJ's picture

I have absolutely no trust in religion of any kind, other than that which I keep to myself.  But on the face of my statement, I believe I was arguing against the "trust" in mormons.  Am I missing something?  It's my belief that you read the first few lines and became the lazy shit.  Read on, please.

I-am-not-Chumbawamba-or-anything-where-I-put-my-name-at-the-end-of-every-post-that-also-has-my-name-like-I'm-a-self-absorbed-prophet

 

Mon, 09/21/2015 - 03:36 | 6573691 stacking12321
stacking12321's picture

oh, snap!

chumbles got buuuuuuuuuuuuurned!

Mon, 09/21/2015 - 05:50 | 6573753 chumbawamba
chumbawamba's picture

TL;DR

I am Chumbawamba.

Mon, 09/21/2015 - 09:04 | 6574058 Agstacker
Agstacker's picture

Yes, you should only trust Christians!

 

https://www.youtube.com/watch?v=7y1xJAVZxXg

Mon, 09/21/2015 - 23:33 | 6577511 Trogdor
Trogdor's picture

"Dude, you place way too much trust in Mormons."

There are good and bad in every race, creed, religion. I know some fantastic Mormons, and I know some that are utter scum - it's the same everywhere.

The guy who started UPMA is also the guy who pushed the PM Legal Tender laws through Utah Legislature - not so he could have "control" but so that the people had an alternative to the disgustingly corrupt FRN. He was inspired to take on this monumental task, not by profits, but by reading "The Creature from Jekyll Island" and finally understanding how evil the Fed is. You're trolling on an idea based on your *assumptions* of how the organization is set up, how it operates, and possible benefits of using it - how intelligent is that? Nobody is saying you have to join UPMA, but maybe - if you're curious - you should call them and ask questions.

Mon, 09/21/2015 - 00:43 | 6573537 The Duke of Skiatook
The Duke of Skiatook's picture

"This will only make sense if/when the FRN collapses"

Why else hold gold at all?  I'm pickin up what you're putting down about the counterparty risk and the risk of government confiscation but those risks are equally real if one chooses to store thier wealth in FRNs trusted to a bank.  I think I will open an account with these guys.  

I am the Ayatollah of Awesome

Mon, 09/21/2015 - 05:58 | 6573758 chumbawamba
chumbawamba's picture

Cuz it's simple: if your gold isn't in your secure personal possession then you do not own any gold.

I am Chumbawamba.

Mon, 09/21/2015 - 09:10 | 6574078 Miss Expectations
Miss Expectations's picture

Here, hold my beer gold.

Edit:  the strike through of beer didn't work.

Mon, 09/21/2015 - 10:12 | 6574287 AustriAnnie
AustriAnnie's picture

- Who elects the auditors?

- How does the bank make its money, if I'm supposedly paying so little for storage/transactions? Either I'm losing money on storage fees / transactions, or the bank is loaning out my gold.  If there is another option I'd like to know what it is.

- Where on their website does it say there is a 100% reserve ratio? It must be there, but I can't find it.

- I cannot find the word "allocated" anywhere on the website either. 

- Lloyds of London insures against theft/fraud.  How am I protected in the case of financial default? 

- Are my transactions taxable?  It appears so:

"Because the U.S. Treasury has not fulfilled its statutory duty to maintain the equal purchasing power of each type of U.S. currency, exchanging precious metal and paper dollars can present somewhat challenging tax issues. Utah's formal recognition of specie legal tender has set the stage to ultimately invalidate federal taxation on intrastate exchanges of one form of legal tender for another. Even so, until the matter is fully settled, the UPMA will be providing its members with expert analysis and recommendations for staying within safe harbor tax guidelines."

 

Mon, 09/21/2015 - 06:37 | 6573789 walcott
walcott's picture

dollar is worth way more today especially silver buying retards who listened to fuck face SGT Bull or Bob Chapman they fucked everybody.

Mon, 09/21/2015 - 06:38 | 6573791 walcott
walcott's picture

SGT should be tarred and feathered misinformation cock sucking prick.

Mon, 09/21/2015 - 09:39 | 6574164 scrappy
scrappy's picture

"Austrians nowadays come up with the most amazing arguments to downplay the fact that the Great Depression was basically a Fed induced deflation, while on a Gold Standard. Several people have offered me this study by the Fed, ‘proving’ it was not a deflation.
How does this compare with Austrian Economics’ successful exposure of the Fed manipulation of volume of the Money Supply? Does anybody believe anything the Fed says when it comes to volume of the money supply?
Do we really need to discuss Fed studies proving it did not cause the Great Depression?

Even Bernanke himself admitted ‘we did it’ in the speech that made him famous as Helicopter Ben. Of course we don’t even believe him when he blatantly speaks truth like that, but still."

Why Gold is so strongly deflationary

https://realcurrencies.wordpress.com/2012/02/19/why-gold-is-so-strongly-...

Mon, 09/21/2015 - 00:11 | 6573494 OC Sure
OC Sure's picture

But first the people would have to learn the difference between money and counterfeit and how a deception regarding the nature of these two concepts came to be. Could it be taught that by this deception is how easily thieves stole.

Who is going to make that distinction? You?

Who can say clearly what the difference between money and counterfeit is?

How does one teach what is money and what is counterfeit?

...Unfortunately, the Austrian's failed...Oopsies, here comes despotism.

Sun, 09/20/2015 - 22:49 | 6573302 coinhead
coinhead's picture

Bitcoin is teh same as owning gold, only better.

https://localbitcoins.com

Sun, 09/20/2015 - 22:53 | 6573313 WTFMOFO
WTFMOFO's picture

Cool

Do I get frequent skipping miles on the "yellow" brick road?

Sun, 09/20/2015 - 22:59 | 6573335 TeamDepends
TeamDepends's picture

This is why Utah was labelled "hostile" under Jade Helm.

Sun, 09/20/2015 - 23:19 | 6573384 Son of Loki
Son of Loki's picture

There's actually quite a few lawyers and doctors who will gladly accept gold coins for their services. There's several law firms that have 20-30% of the "war chest" in gold coins.

 

It's common sense when you think of it.

Mon, 09/21/2015 - 00:09 | 6573491 MsCreant
MsCreant's picture

Uncommon sense. That is the problem.

Mon, 09/21/2015 - 00:12 | 6573499 Implied Violins
Implied Violins's picture

They also have a prepper mentality. Plus, harems.

If they'd brew beer stronger than 3.2%, I'd move. But - NOT UNTIL THEN.

Mon, 09/21/2015 - 00:30 | 6573519 TheReplacement
TheReplacement's picture

You mention a prepper mentality.  Brew your own.

Mon, 09/21/2015 - 00:55 | 6573558 Implied Violins
Implied Violins's picture

I actually did that when I was in college. Got it down to where I could brew a nice batch for 5 cents a bottle...but is that even legal in Utah?

But that raises another point: I should get the supplies for brewing while I still can. Hops grow well here, something else to think about...maybe I will have a post-collapse profession after all!!

Mon, 09/21/2015 - 10:39 | 6574364 WorkingClassHero
WorkingClassHero's picture

I live in Utah and brew my own beer.  It's mostly just for fun though because we have several great craft breweries selling high point beer.  The 3.2 thing is a myth.  Thats 3.2 alcohol by weight, which is actually 4% abv.  The law allows grocery stores to sell up to 4% beer but anything higher has to be purchased at a liquor store. Actually most of what outsiders think about Utah is completely false.  We prefer it that way so the hoards of coastal residents don't find out how great life is here for non-mormons. I've already said too much...

Mon, 09/21/2015 - 13:55 | 6575294 Solomonpal
Solomonpal's picture

At WCH...same goes for Alaska. Please watch Port Protection and draw your conclusion.

Do NOT follow this link or you will be banned from the site!