Arizona Challenges The Fed's Money Monopoly

Tyler Durden's picture

Via Ron Paul of The Ron Paul Institute for Peace & Prosperity,

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.

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Davy Crockett's picture

You can already bank in gold in Utah.  https://upma.org/

 

froze25's picture

Good for Arizona, I hope this passes.

38BWD22's picture

 

 

I wonder what critical mass would be re states moving to make Au & Ag legal tender.  Or even accepted tender.  Perhaps 5 - 7 states?

And if there would be just ONE large payer (say of taxes) who would pay using PMs (not subject to that odious 28% Cap Gains tax), that too would get some nice attention.

 

InjectTheVenom's picture

Well, I guess I now know what state I'm moving to next ! 

y3maxx's picture

-Policy not gonna go over well in Washington/New York

Escrava Isaura's picture

I was looking forward reading this article until I got to the second paragraph.

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.

A statement like that makes one wonder: What hell is he talking about?

Anyway, so then please explain to us: How America (and the world) kept growing without gold? And now Trump will make it even greater.

Gee, guess what? Gold would be even worse to the population than the current debt-system system. Hard to believe, right? Because gold would make the system even more centralized, more unequal.

Richard Werner: There has never been a gold standard. Banks always created the majority of the money supply. All centralization is dangerous & against our vital interests. There're some bad people out there. Better local banks. Setting up 1000 community banks to replace big banks works, breaks up power & hands it back to the people.

https://twitter.com/ProfessorWerner/status/710030629824536576

 

WillyGroper's picture

"How America (and the world) kept growing without gold?"

by pulling growth forward by mortgaging future generations via onerus debt that can never be repaid.


SafelyGraze's picture

gold. or silver.

or copper. or zinc. or nickel. or steel. 

or tally sticks.

or pieces of paper.

or plastic rectangles.

digital accounts.

implanted chips.

we are happy to use whatever it is you tell us to use.

hugs,
the people 

 

VW Nerd's picture

Isaura, you make a cogent rebuttle to RP's position.  However, I can't help but wonder, if your statement below is correct, why the CB's and petrodollar monopolists would be so frantically opposed to PM's.

"Gee, guess what? Gold would be even worse to the population than the current debt-system system. Hard to believe, right? Because gold would make the system even more centralized, more unequal."

PM's represent personal soverienty and a required discipline that flies in the face of the agenda.

EHM's picture

I welcome all zerohedgers to move here.

fbazzrea's picture

couldn't find a date on this webpage, but it's already including AZ so not sure of accuracy, but... they indicate 11.

https://www.capitalgoldgroup.com/state-legal-tender/

laser's picture

Why would anyone pay taxes with real money if they could use FRNs,

cro_maat's picture

I set up an account at UPMA and have been impressed with their service and level of transparancy.

Utah is considering a similar bill to the AZ bill. Other states may have to do this sooner rather than later just to be able to have their trade notes settle once the petrodollar starts its freefall into hyperinflation. At some point soon, there will be $20T margin call and the states will want to distance themselves from that fiasco.

Doom Porn Star's picture

"Good for Arizona, I hope this passes. "

 

Really?

So, YOU have read the entire piece of legislation and discussed the strict legal meanings of the document in full with anyone with the slightest relation to matters of existing monetary, taxation, mechanics of non-domestic surrency cross-transactions clearances policies??

Is the legislation as written posted here on ZH in it's entirety so we can all read the entire piece of legislation -or is everyone talking that 'sign it to find out wtf it actually says' bullshit??

Argos's picture

Actually, it has passed twice, only to be voted by the governor.

seek's picture

They're run this several times before and it'd been stopped. The fact that Utah passed it may help.

I hope it passes as well, but there are dark forces at work everywhere. Just look at the current US senators in AZ.

While we shit on central banks in general, I'd love it if AZ pulled a North Dakota and started a state bank. Even better if they handled gold.

claytonmoore50's picture

As of now, gold is not considered to be 'money' by the government, and is simply personal property. It may, and does, have intrinsic value; however, it is considered personal property, and as such is difficult for the government to confiscate.

If gold becomes 'money' again, will the government be able to 'call it back in ' ala an FDR style mandate?

cro_maat's picture

From a small amount of research it appears that the government went after business owners and did not even search safe deposit boxes except where there was a bank failure. It appears that if you had a typical ZH "boating accident" then they did not come looking:

"

The first known reference to this hoax was in the book After the Crash - Life In the New Great Depression.[25] The fake text refers only to gold, not to silver, which was added by 1998 to Internet references. It claims to be an Executive Order, yet whoever wrote the text wrote it to apply to specific individuals (e.g. "Your possession"), so if the text did originate from the government, it would have been sent to individuals, not published as an Executive Order. The first paragraph starts with the actual text of Executive Order 6102, then edits it slightly (e.g. changing "said national emergency" to "a national emergency" and "still continues to exist" to "still exists"), and then adds apparently made-up text. Due to the minor edits and how the real text and fake text are combined mid-sentence, it is almost certainly an intentionally designed hoax rather than an accident.

Most of this text does not appear in the actual Executive Order.[26] In fact, safe deposit boxes held by individuals were not forcibly searched or seized under the order and the few prosecutions that occurred in the 1930s for gold "hoarding" were executed under different statutes. One of the few such cases occurred in 1936, when a safe deposit box containing over 10,000 troy ounces (310 kg) of gold belonging to Zelik Josefowitz, who was not a U.S. citizen, was seized with a search warrant as part of a tax evasion prosecution.[27]

The U.S. Treasury also came into possession of a large number of safe deposit boxes due to bank failures. During the 1930s, over 3,000 banks failed and the contents of their safe deposit boxes were remanded to the custody of the Treasury. If no one claimed the box, it remained in the possession of the Treasury. In October 1981, there were 1,605 cardboard cartons in the basement of the Treasury, each carton containing the contents of one unclaimed safe deposit box.[28]"

https://en.wikipedia.org/wiki/Executive_Order_6102

Hope Copy's picture

As defined in Frank-Dodd I believe you are referring to..  Bullion goes first, but in a state that has put forth in states rights, and has minted, it may fall under Numismatic value.. and go last, after the gold mines.

DownWithYogaPants's picture

Arizona is quite a libertarian leaning state.  Unfortunately they have John McCain haunting them like a vampire.

Dollar_Store_Confucius's picture

Tell me about it. Every time McCain starts to dip in popularity here, there is talk of closing the Air Force Base and grumbling about what that will do to the local economy and he acts like he saved the day when they keep it open. Damn songbird prisoner with a treasonous father. We are trying to get rid of him. He is dug in but we'll get him out.

Justin Case's picture

Despite what is taught in social science courses, a true gold standard is a greater protector of individuals’ economic well being and, ultimately, their political liberty than any legislation or “rights” document ever penned.  Hard money limits state power!

As long as gold was the nation’s money, government spending in peacetime never exceeded approx. 4% of GDP. Government was but a footnote in most people’s lives, which is precisely as it should be.

 

"If you believe that policymakers will continue to print more money, indebt their citizens, and make foolish decisions, then having a universally-recognized, real asset money-substitute is a sound choice."

It's a given that politicians will do all of this, and more.

EHM's picture

Arizona the freest state in the union. Please support the wall to keep out Californians.

ToSoft4Truth's picture

John McCain keeps Arizona freest. 

Nobodys Home's picture

Banking in gold and defining it as legal tender are a different beast. For now, until we end the fed, both are good in my opinion.

ToSoft4Truth's picture

All those blue hairs in Arizona rejecting their 'earned' Social Security checks.

 

Good luck. 

buzzsaw99's picture

as long as mccain represents arizona i can't take them seriously.

EHM's picture

We are legally allowed to cram hand cannons down our pants you really should.

bowie28's picture

Will be interesting to see the position Trump admin takes on this.  Hopefully better than their stated position on cannabis.

D-plorable's picture

Im Hispanic and I can't wait to retire and leave Commifornia for a free state. I'll be picking my Gold from the bottom of the lake on the way out.

EHM's picture

Glad to hear it. Just make sure no one is following you.

YourAverageJoe's picture

When you get to that free state, will you refer to yourself as a Texan, or still as a Hispanic?

DetectiveStern's picture

Legal tender is an interesting concept. This is the definition in the UK

 

"Legal tender has a very narrow and technical meaning in the settlement of debts. It means that a debtor cannot successfully be sued for non-payment if he pays into court in legal tender. It does not mean that any ordinary transaction has to take place in legal tender or only within the amount denominated by the legislation. Both parties are free to agree to accept any form of payment whether legal tender or otherwise according to their wishes. In order to comply with the very strict rules governing an actual legal tender it is necessary, for example, actually to offer the exact amount due because no change can be demanded."

Strider52's picture

I never considered it "NOT" money. Most people I know will accept Gold & Silver any time. 

Boomberg's picture

Arizona challenges Fed's Monopoly Money

Fixed it for ya.

Swamp Yankee's picture

Long on nail guns. 

 

Fed don't like interlopers.

 

Good on them, tho.

BigFatUglyBubble's picture

Def something to keep an eye out for

Zero-Hegemon's picture

Good luck Arizona, Khaddafi tried this too with mixed results

yogibear's picture

Like ending up dead.

Kennedy tried messing with the Federal Reserve and ended up dead as well.

Scuba Steve's picture

Wouldnt it be cool if a crack team of special forces got to them first from the list ...

All gone, 1 night. Done.

Hope Copy's picture

and the what about Utah and Texas?

Zero-Hegemon's picture

Nobody cares about Utah and they know better than to mess with Texas.

Arizona is SJW occupied territory and a "safe-corridor" for drugs and immigration, also part of the "democratic" achipeligo

Codwell's picture

Looks like Arizona needs some freedom and law and order . Better federalize the national guard to take control of this lawless situation.

MrBoompi's picture

I challenge AZ to prove they actually elected John McCain.  I bet they can't.  

crossroaddemon's picture

Arizona is in for an ass-fucking if they actually try to carry this forward... I'm guessing they don't though.

EHM's picture

Maybe it's because we were the last state to enter the union (c.48) but we seem to have a better sense of the word liberty. We will carry it forward. Probably won't win but we'll continue to challenge what has become of the Federation.

Dickweed Wang's picture

Probably won't win but we'll continue to challenge what has become of the Federation.

 

Really?  Last time I checked the morons in the State of Ariboner just re-elected that senile fuck John McStain to orifice AGAIN!!  Way to "challenge the Federation" guys!!