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Going Back To What Works: Gold Is Money Again (Thanks To Utah)
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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How about this guy?
Abe Day received a Science degree from Snow College and a Bachelors of Fine Arts from Brigham Young University. He has worked in the Video Game Software industry for the past 15 years as a Lead Character Designer, Art Director, Software/Game Designer and Creative Director. He is currently President and Creative Director of Attraction Studios.
He is going to be helping upma make some videos on the service.
A quote from the end of that webpage:
"Mrs. Galvez is an accomplished horsewoman,..."
I've never heard the term.
"They hold a 100% reserve ratio."
Yeah, sure, OK. I'll take their word for it. Bankers never lie.
but they audit it .....
GLD is also audited, and has a 100% reserve ratio (rounded).
You need to read the actual auditor's reports and determine what is being audited and how... in addition to reading the actual account disclosures the idiotic 99% never read, of course.
It takes too long to read auditors reports, I just prefer to check my own stash. Any good accountant/auditor knows how to make 1+1=11 or however much the people that pay them need it to be. The only people I believe is Morningstar (because its such a cute name) and Standard and Poor, because they are honest about saying it is their standard to make you poor.
They aren't bankers. They do not loan the gold to anyone. There are third party audits as well every quarter apart from the audits by board members. If they were to embezzle or commit any fraud they would go to jail for longer than any banker would.
Fuck you BTC. THIS is how it should be done.
Gold does not have to circulate as "cash" to be money. There will always be fiat money for transaction. As long as a vast majority of people (i.e. the real economy) measure wealth in fiat money (dollars, euros etc) none of this has any meaning. Once a critical mass start saving in gold (and silver) it's game over though. While we may have already passed this point it will only be apparent (to the rest) when it's too late for them to get out of the old system.
Look when the banksters came to Jackson hole this year. They continue to do this year after year. I am not far from Utah or Jackson hole at the moment. I am enjoying the scenery. I think this is where we engage the bastards.
Money is credit (a promise to perform some work) by definition
Money is a contract between an individual holding the money and a society as a whole. A contract in which society promises to perform some work for the money that is produce goods or services for the money.
What is used to represent money is irrelevant. It can be gold or paper or bits of information in a computer or even thoughts of society members about who owes whom how much
Even though I haven't signed any contracts regarding what is money, I'll go along with whatever folks are taking as settlement for value delivered. I prefer those settlement media of which more cannot be produced at will by humans, I call those specie. The settlement media that can be produced by humans is also money, unitl it isn't, I call that fiat. I spend them both, but take Greshams's law to heart and spend all the fiat first, and save the specie for later.
"I prefer those settlement media of which more cannot be produced at will by humans"
Now imagine the media ( gold or whatever ) is concentrated in the hands of the few and they already have whatever you produce and do not need more of it.
The rest of the population would very much like to get what you produce but they do not have the media.
You have two options:
1) do not produce for those who have no that media, then you become jobless
2) produce to them in exchange for some other media - a promise to repay back later on (that is creating new money on the fly and it happens all the time)
so it is exactly because producers do not want to become jobless that they accept all sorts of money instead of gold
Yes.
That is the problem.
It is the problem because contractual promises can be broken.
The old currency system (and monetary system...they are not necessarily the same things!) provided currency that was not a promise to do anything in the future, but proof of something already done.
This is a fundamental flaw in credit-based currency.
Production precedes value. This is a fact of reality. Credit based currency is an attempt to by-pass reality.
Attempts to bybass reality always result in destruction.
So it looks like our effective tax rate is between 95-97% ?
The effective tax rate is the hardest thing to calculate since its so spread out in many areas, including all income and expenditure areas. But I am quite sure it is north of 60%.
The only gold you have is gold in your pocket. The only silver you have is silver in your pocket. The only fiat currency you have is fiat currency in your pocket.
PERIOD.
If you believe your gold, silver or fiat currency held by a bank, private vault or any corporation whatsoever is yours... you will soon learn the hard way that you own nothing, have nothing, and will get nothing back.
This day is coming soon, quite possibly this year... and maybe even within the next month... or week?
I'm not at all convinced that private vaults will be so vulnerable – at least not all of them.
As I've mentioned before, the economies of Switzerland and Singapore would be completely crushed were those governments to allow the seizing of private assets from private vaults. Do you believe that those governments would essentially commit economic suicide by allowing the seizure of private, foreign assets on the basis of pressure from foreign governments? I certainly don't, and on that basis alone have a hard time envisioning either scenario short of a hot war touching those countries.
Please don't bother with the (Swiss) bank example, as the U.S. has no SWIFT leverage in the case of independent vaults. Also, it is no longer technically legal for Swiss vaults to cater to American citizens, so if not the U.S., then what country could possibly exert meaningful pressure on the Swiss?
It's also important to consider the following three points:
I worked with a Danish guy a few years ago in the Cayman Islands who was so proud that he had a Swiss gold account at a Swiss bank. He later discovered that his account was converted to fiat. He was not happy.
Completely irrelevant.
What part of "private vault" was confusing to you?
Isn't a Swiss bank supposed to be "private"? He had this account before 08 and totally believed that his gold was private and vaulted so there is no confusion on my part.
No, a private bank is a specific regulated entity without limited liability, and there are only six of them left. The legal term is actually private banker (or its French, German, and Italian equivalents) because it's the individual and his personal assets and reputation which ultimately back the bank itself.
TRUST NO ONE. NOBODY will stand up to the predators-that-be for your benefit. NOBODY.
Perth Mint won't.
Sprott won't.
Schiff won't.
NOBODY.
Tinky - Be careful.
A correction to my original post:
it is not illegal for private vaults to accept American citizens as clients, but reporting complications (e.g. FACTA) are highly discouraging.
Switzerland already sold out, and all corporations in Switzerland should now be considered 100% compromised.
At the moment, Singapore corporations appear to be reliable. However, I recently read in a ZH article that Singapore agreed to let the USSA to open a military base in Singapore in a year or two. In my opinion, that make Singapore suspect also... though obviously I cannot guarantee the Singapore government will obey every order the USSA gives them.
My estimate is, nowhere is safe any longer. Nowhere. And this most certainly includes your family and friends.
Trust No One.
PS: The truth is, most people can't even trust themselves.
-----
In case I need to say this clearer...
Yes, I do believe the governments of Switzerland and the USSA will paw through ALL vaults in Switzerland within the next few years (if not the next few months).
Yes, they will cease more than precious metals; they will cease anything they wish.
Yes, private corporations in Switzerland and Singapore will obey ALL orders from their own government, no matter how egregious. And a great many corporations will obey orders directly from the USSA, whether they need to or not.
Yes, the vault companies will be badly damaged, if not destroyed. However, they may continue to act as private vaults for governments after they screw their private clients.
As time marches forward, how rich and how powerful one must be to remain safe from the top-level predators-that-be will increase. In the next few years, a great many rich and powerful folks will find they are not quite rich and/or powerful enough. Most of the very tip-topest level of predators-that-be will probably remain safe in the Valhalla Sector... the real world version may be called Mount Weather, but I might be wrong (always forget the name). I believe some predators-that-be have fairly safe private digs in Chile/Argentina Patagonia and New Zealand.
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......
I live in Utah and have done for 71 years and I'm here to say that the LDS Church is worth billions. It's hard to pinpoint what they own as each day their income is "swept" just like a banks and God only knows the rest of the story. They don't pay taxes as they are exempt. Think about it.
Then too the state has proven gold and silver in the ground. There are active mines, big ones. Kennecott/Rio Tinto isn't in it for the copper and haven't been for years, my husband worked there for 31 years. Apparently it's not enough for minting into American Eagles because the US has to import a fair amount of gold and silver just to mint these coins. It could be that the State of Utah is leaving most of the reserves literally in the ground for future reference. Utah interests also own largish chunks of Nevada also known for gold and silver reserves. And yes, it is interesting that during Jade Helm both Texas and Utah were the "enemy". I don't take that very seriously however.
What I'd like to know is what's in it for American Express and who, deep, deep down, actually owns American Express? I've lived here too long not to wonder long and hard. Plus look where UMPA is located: https://upma.org/
It's (funny) that you mention American Express. On 11/10/08 they were granted Bank Holding Company status in order to allow them access to FED emergency lending programs and all the other goodies. Even the normal 30 day application time period was waived.
From the UPMA page:
UPMA certified repositories adhere to the following exacting standards:
https://upma.org/img/images/bullet_arrow.gif); color: #2f2f34; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 13px; line-height: 18px; background-color: #f4f5f9;">
- All holdings subject to regular internal audits;
- Independent third-party audits conducted at least quarterly;
- Vaulting within the State of Utah available to all account holders;
- Specie legal tender offerings to includeAmerican Eaglegold and silver dollars;
- All holdings fully insured by a carrier qualified to do business in the state of Utah; and
- Prompt responses to insurance certificate, audit opinion and withdrawal requests within set time frames.
So if this is true where are the audits? Also even the major bullion banks' supposed vaulted gold is shown in COMEX records. I see no records of any type on the UPMA page and I shouldn't have to join to see their records. Didn't Goldman Sachs make some emergency plan to hide out in Utah after a collapse? I think I read that on ZH a while back.
Bla... bla... bla... blaaaa....
FACT'S!!
RUSSIA
http://www.tradingeconomics.com/russia/gold-reserves
CHINA
http://www.tradingeconomics.com/china/gold-reserves
INDIA
http://www.tradingeconomics.com/india/gold-reserves
Although India seems don't increase its gold reserves??
See this new.
http://in.reuters.com/article/2015/08/05/india-gold-idINKCN0QA0SO20150805
ANY QUESTIONS ??
Yes, I have a couple of questions.
How do you explain Japan's productivity and third largest economy without gold?
How do you explain Thailands economic position when they literally have tons of gold?
Just one Thailand statue I recently came across weighed in at 5 1/2 TONS.
Please explain.
You think Japanese economy good?? New to ZH? Have try to search Abenomics in ZH?
Next, are you really been in Japan? Cause this question eouldn't come up if you're japanese. I went to japan for business once every year since 1989.
Japan isn't Tokyo. Or even isn't just shinjuku, shibuya, ginza only. Have you been to its suburb? Itsonomiya, ottawara, nasushiobara, hachioji. Take a walk in their business district. Then we talk again.
And why you brings thailand? You think thailand worse than japan? Have you been to thailand? Phuket? Pattaya? Bangkok? Thailand is my neighbour country. I done distributor meetings yearly there.
Given the choice? I'll take Thailand over Japan. Anytime, anyday.
You seems the one that clueless.
Let me tell you something. Last year, that delicious noodle soup that i always choose during i stayed in japan? Cost 360 yen a bowl. In 1989? That SAME bowl of noodle soup? Cost 480 yen. Still thinks decades of deflations is good??
My only question is: what happens to this banks reserves and collateral when the price of gold goes down?
What price are you talking about? Gold ETF? Such as this?
http://www.zerohedge.com/news/2015-08-03/comex-edge-deliverable-gold-dro...
Have you ever TRY to trade REAL GOLD BULLIONS (with its certificates) in REAL GOLD MARKET in your town?? Asks your Indian friends for answer..
When the price of physical metal goes down it has the effect of maintaining or increasing the dollar's value. The game has been to control gold prices via the paper markets to give legitimacy to the value of that worthless crap piece of paper known as the dollar, fit to wipe with but not to flush with. When the game of manipulation of the gold and silver prices collapses, that's when it is game over for the dollar. The more money they print, the more furiously they must play that paper game to prop up the value of the dollar. The number of contract trades and the amounts of the trades are giving away how hard the game's being played lately. That's why a lot of ZH'ers are stacking. It's another reason why bitcoin fans like bitcoin, because they created a fixed amount of bitcoin, which behaves similar to physical gold. Lets face it: If everyone turned their paper dollars into either physical gold or bitcoin, there is no way the price could stay flat for gold or bitcoin, as there is not enough of either for all the dollars out there.
First people have to understand they're not using 'dollars' but bank notes (FRN) usable only because of (probably unlawful) currency laws requiring their use.
The U.S Dollar is equated as 371 grains of silver. Therefore a U.S Dollar is somewhere between $14-15 FRN Bank Notes even at these manipulated depressed prices.
One of the first things that needs done is educating people about the difference between the two. The first few series of FRN bank notes stated redeemable for lawful money,,, meaning money the constitution deemed legal.
From Cornell University Law.... 12 US Code/ 411
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
From Investopedia: Lawful Money
Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves. Fiat money includes legal tender such as paper money, checks, drafts and bank notes.
Now to satisfy the those that think constitutional money is ,,, wait for it,,, conspiracy theory! Here is Myth #14 from famguardian dot org to set us straight.
This site basically boils it down to,,, since the government issued fiat (Greenbacks) in the past it's okay to do so now.
The site throws all sorts of confusing arguments but interestingly enough states the constitutional definition of lawful money several times while doing its best to confuse and complicate.
But I included it for those,,, the majority of clueless voters,,, that somehow think anything Con-gress passes is law,,, regardless of its constitutionality, which is obfuscated and confused by lawyers that are morally challenged and intellectually bankrupt.
Too long for copy and paste but the site is:
http://famguardian.org/subjects/MoneyBanking/FederalReserve/FRconspire/l...
ass, grass, cash or 50 dollar gold coin, nobody rides for free,,, or venison, nine days to bow season, countdown and time in the woods. Time to restock the freezer, good day all.
Clarify the chart for me.
Does the chart mean today’s 150K house would cost 10.5K in 1900?
John Williams had a chart up for home values on his site, which spanned quite a long time, if I remember, going back to 1900 or so. Part of the discussion in another article mentioned this: In theory, the CPI measures housing costs, but it has not done so adequately since the early 1980s, when housing cost measurements were switched to owner’s equivalent rent (what the government estimates you would pay yourself to rent your own home) from home sales prices. The SGS Alternate CPI is corrected for that change.
What you have over time is variability of inflation of houses vs goods, due to the indexes they use to measure and the nature of what financing and interest rate was available at the time. So you can't really use that chart to work the math backward on home values. Basically, a house provides a hedge against inflation for the most part, but right now if you look at the Chapwood Index: http://www.chapwoodindex.com/ you see that homes are not following those CPI numbers right now. There are several dynamics at work, mostly due to fiddling with monetary policy, that distorts the crap out of catagories. Yes, it's a mess.
The Central Bank of Moe always has 100% backing of it's currency issues in Gold and Silver. No fractional backing here.
Two bit coin, cuntcoin (for the sex workers), bitchcoin for ZHers, nigcoin, spicoin, Chicoin, zipcoin .... cryto inflation .... every person on earth has their own crypto currency .... then what .... back to gold ?
Why would I pay in gold when I can pay in nearly worthless fiat? Gresham's law is alive and well.
The appeal of the service I think is that you wouldn't need to hold any fiat. Your checking account would be replaced with gold and your deep savings would be held by you personally. Certainly in the event of any sort of reset or end to manipulation your $2,000 in fiat is much better off in a upma account than a bank. Also, there is no spread so it costs the same to you to use this service.
100% reserve ratio. Now we're talking. The banksters can't even conceptualize it in their criminal minds.
So what does UPMA do with those FRNs?
Anything involving FRNs is flawed including converting FRNs into bitcoin or whatever.
If I loan you money and you don't pay, I have a bad debt loss. When money is debt instead of a commodity, it is subject to becomming a bad debt, and I lose. Since Federal Reserve Notes are debts of the Federal Reserve Bank, and checking accounts, savings accounts, and CD's are debts of banks, these are subject to default at the whim of the public when enought people refuse to accept them as tender. It is just a matter of time.
Sorry. Wrong comment placement.
ppl
Sell the Dollar
Buy Gold, silver & platinum
As fast as you can
becuz tomorrow , you dont know what comes
(or you have to play the game DOOM with glowing radiation filled pools & mutated zombies)
Had no idea that this would get this kind of response when I originally posted that on popularliberty. Here is one follow up article. The site needs a lot of work so that is the goal for this next week.
http://worldlightreview.com/2015/09/utahs-private-gold-depository-just-e...
Great long term short. Keep hanging on to those dollars as all the value gets sucked out. Talk about a giant sucking sound.