Utah Bill Sets Stage For State Gold Depository, Further Encourages Use Of Metals As Money

Tyler Durden's picture

Submitted by Mike Maharrey via The Tenth Amendment Center,

A bill introduced in the Utah legislature would build on the state’s Legal Tender Act, creating a foundation for further action to encourage the use of gold and silver as money, and take another step toward breaking the Federal Reserve’s monopoly on money.

Rep. Ken Ivory (R-West Jordan) introduced House Bill 224 (HB224) on Jan. 27. The legislation would add several provisions to state law designed to encourage the use of gold and silver as legal tender. Passage would set the stage for expansion of gold repositories in the state and authorize further study on several sound money policies.

Specifically, HB224 would authorize the investment of public funds in specie legal tender held in a commercial specie repository. Under existing code, “specie legal tender” means gold or silver coin and bullion. “Commercial specie repository” means an institution that holds or receives deposits of specie legal tender that is located within the state. Practically speaking, passage would give the state the option to hold funds in gold and silver instead of Federal Reserve notes.

The legislation would also direct the State Money Management Council to make rules governing quality criteria for a commercial specie repository, in consultation with the state auditor.

A “GOLD BANK” FOR UTAH

Gov. Greg Abbot signed legislation creating a Texas gold bullion and precious metal depository in June of 2015. The facility will not only provide a secure place for individuals, business, cities, counties, government agencies and even other countries to to store gold and other precious metals, the Texas law also creates a mechanism to facilitate the everyday use of gold and silver in business transactions. In short, a person will be able to deposit gold or silver – and pay other people through electronic means or checks – in sound money.

Ivory said “secure public transaction is the ultimate goal” in Utah as well.

In fact, the United Precious Metals Association (UPMA) already offers publicly available accounts denominated in gold and silver dollars in Utah. According to the UPMA, in the past year it has grown 700 percent in assets under management and made up 2 percent of the market for U.S gold and silver coins.

“Despite a couple of zerohedge articles, most people remain unaware of Utah’s gold bank,” UPMA head of sales and marketing Jeremy Cordon said. “We are a few years ahead of Texas.”

According to Cordon, passage of HB224 would give UPMA and similar repositories a special recognition by the state, and that would likely expand the market for their services. The state of Utah will also be able to hold legal tender gold and silver in such repositories under the proposed law.

HB224 would also authorize Federal Fund Commission “to study and assess the taxpayer reporting requirements for specie legal tender income and the remittance of taxes on specie legal tender income; the collection of severance taxes in specie legal tender for taxes assessed under Section 59-5-202 on gold and silver production; and (viii) the issuance of bonds denominated and payable in specie legal tender for the purpose of retiring existing government debt.”

LEGAL TENDER

In 2011, Utah became the first state in over 80 years to pass a law making gold and silver coin legal tender. The following year, the legislature followed up, approving a bill clarifing several tax measures and more importantly, expanding the definition of specie to include gold and silver coin approved by the state.

Passage of HB224 would take the next step forward and further open the door for the use of gold and silver in everyday transactions in the state.

In a speech to the UPMA announcing the legislation, Ivory emphasized the connection between sound money and liberty. He told the story of a woman who tried to pay her bill at Walmart with gold coins. The cashier told her she needed “real money.” When the lady went to the bank, the teller gave her face value for the 14 Double Eagle coins – $280. The value of the gold itself was over $20,000.

“Think about where we are when we don’t understand the value. The nature of our property, the nature of our liberty embodied and represented in money that has a fixed standard.”

IMPACT ON FEDERAL RESERVE

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.” States have simply ignored this constitutional provision for years. It’s impossible for states to return to a constitutional sound money system when it taxes gold and silver as a commodity.

State actions like Utah’s Constitutional Tender Act, and the creation of a bullion depository in Texas take steps toward that constitutional requirement, ignored for decades in every state and sets the stage to undermine the monopoly of the Federal Reserve by introducing competition into the monetary system.

By making gold and silver available for regular, daily transactions by the general public, the state depositories create the potential for wide-reaching effect. Professor William Greene is an expert on constitutional tender and said in a paper for the Mises Institute that 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.

NEXT

HB224 was referred to the House Rules Committee, where it must pass by a majority vote before being referred to a standing committee for further consideration.

Watch Rep. Ivory’s Speech

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IridiumRebel's picture

Smart move Utah. Ahead of the game as the dollar accelerates to the toilet.

MarkD's picture

Trump will cut federal funding to Utah.

He is in the banks pocket

Looney's picture

 

Who said that the Mormons are up to no gewd?

Now… If they’d only kick Mitt Romney out, I’d think about moving to Utah.   ;-)

Looney

BaBaBouy's picture

Awdit The eFed GOLD ...

Lets See Whats Left ~

38BWD22's picture

 

 

Most of the gold at the FRBNY is foreign (and other people's) gold.

I would rather have the national gold piles at Ft Knox, Denver, SF and West Point audited...

 

GadExp's picture

 

I just converted.  

 

I'm a Mormon now!

Chupacabra-322's picture

So when do the "Sanctions" start?

Fractal Parasite's picture

Usually they go straight to the bombing stage, à la Gaddafi's pan-African gold-backed Dinar currency project.

anarchitect's picture

The effect of this will be greatly diminished unless Utah declares itself exempt from the 28% "collectibles" tax on gold and silver.

To stay off topic, they need to kick Harry Reid out first.  He gives Mormons a bad name.

Tom Servo's picture

Dingy Harry is sliming Nevada, not Utah.... unless his degree of scum and villainy can spread between borders...

 

anarchitect's picture

Yes, but I interpreted the comment as meaning that the Mormons, not Utah, should kick Mitt out.

Jack's Raging Bile Duct's picture

While it's a good move, you are correct. The capital gains tax presents a problem and will inhibit its use. However, it could pose some very interesting legal cases. The Feds suing would be a dangerous move, because a jury could undo them. I think the larger impediment to use of bullion as common tender is Greshem's Law.

Roguebeekeeper's picture

Gold and Silver legal tender (coins) are exempt when circulated. The IRS has never won that one in court.

Trubador's picture

Perfect! The state where I'll be retiring to when I leave Marxifornia. 

Trogdor's picture

We've been working on this very hard for a few years now.  Most Mormons are very head-up-ass, but not all of them.

Now, if we could only get them to create a State Bank modeled after the North Dakota State Bank....

I don't think Schitt Romney lives in Utah ... but I could be mistaken.  Most of the non-head-up-ass Mormons I know hate his guts.

unsafe-space-time's picture

I'd move to UT. Just too many Mermen. Another satanic monopolistic tribe.

wren's picture

Seriously doubt he will cut funding to Utah over this. I believe an outright war with the Fed is going to begin soon. I'd bet it is already going on quietly behind the scenes, but I'd bet it is going on nonetheless.

Chupacabra-322's picture

The War began during the Collapse of 2008. They've been re structuring ever since.

dietrolldietroll's picture

yeah let's come back in 8 years and see if this prediction comes true, shall we?

SILVERGEDDON's picture

Sooo - this is like Bitcoin based in reality ???

Fonestar is gonna have a shit hemmorhage.

YOU DA MAN, KEN !!! 

FUCK THE FUCKING FED AND THEIR FUCKING FIAT. 

City_Of_Champyinz's picture

Eventually all the sane states will be forced to do this.

Chippewa Partners's picture

The UTARDS are on the move.......they even had the gonads to stop UTARDS from early spring/late winter shed hunting in certain counties to protect deer and elk herds.......with a $50 bounty on coyotes it is all coming together.  How about a bounty on FEDsters, bankers and liberals now!!!  

ZippyBananaPants's picture

I think I am going to open a bank account in Utah

Seasmoke's picture

I think I'm going to move there.

Dragon HAwk's picture

Audit the States Gold reserves probably go a lot further than the Fed's version.

You mean your state doesn't have it's own Gold reserve? damn Sorry to hear that man.

Muad'Grumps's picture

Now if they can just attach gold to a blockchain.

J bones's picture

As long as its worth the value in weight not face. Then this is headed the right direction.

Consuelo's picture

 

 

So it's the Goyim Mormons against $$$Moloch...?

Stormtrooper's picture

I prefer Bitcoin.Too much price volatility in gold./sarc

 

 

Raffie's picture

At the very least have SILVER with your Btc.

They are both great to invest in.

Golden Phoenix's picture

Gold and silver 'price stability' = lost 98% of its value in the past few generations right along with fiat.

Consuelo's picture

 

 

This actually dovetails perfectly into 'Nullification'.   In fact, when you boil off the skim, Nullification is precisely what this is about.

 

And that is a Very Good Thing.

J bones's picture

Only other thing is now isnt the time to use bullion for payment now is the time to buy it and hold it.

withglee's picture

Only other thing is now isnt the time to use bullion for payment now is the time to buy it and hold it.

With bullion equivalent to less than $2,000 per person on Earth, using it for payment or as a store of value would extinguish the supply in an "instant". That's not an attribute you want for money. Money requires a sub-minimal attribute of maintaining perpetual perfect supply/demand balance. Only a "proper" MOE process can guarantee that ... and such a process is trivial to institute.

Ryland's picture

It's not the supply that's too low it's the price!

cowdiddly's picture

What took you so long?

Texas already has a gold repository and gold bank independant of the Federal Reserve

 They took their gold back from NY FEDRES back in 2015..

EDIT: my bad, it was noted in the article.

HenryKissingerChurchill's picture

State actions like Utah’s Constitutional Tender Act, and the creation of a bullion depository in Texas take steps toward that constitutional requirement, ignored for decades in every state and sets the stage to undermine the monopoly of the Federal Reserve by introducing competition into the monetary system.

That is anti semite!!!

shovelhead's picture

New mancrush for a real patriot. A good place to put the proceeds of the sale of my AZ. property.

gaoptimize's picture

When it comes down to it, and when it matters most, this will become a high value target and unless there is well armed state-controlled National Guard prepared to defend it against any comers, it will be looted.

Goldbugger's picture

UTAH just said FUCK the FED and IRS.

withglee's picture

UTAH just said FUCK the FED and IRS.

Utah just proved they are clueless about what money is ... and joined the Fed and IRS in that category of money cluelessness.

Deathrips's picture

You trade your life for debt issued by strangers.

 

Hey slave your buttholes leaking.

 

RIPS