Individual US States push for gold and silver legalization

white&yellow999

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Just saw this browsing some news. Colorado is doing the same thing.

http://www.cbsnews.com/8301-500395_162-57381340/colo-bill-would-legalize-gold-silver-currency/

(CBS News) DENVER - Colorado State Senators will consider a bill that would allow people to use gold and silver as currency.


A similar measure is already in place in Utah and is being considered in 12 other states, reports CBS Station KCNC.


Supporters are concerned about the strength of the U.S. dollar.


The sponsors of the bill say they are concerned about the strength of the U.S. dollar, public debt, and currency devaluation.


"Over history just about every country in the world that has had a serious debt crisis has intentionally inflated their currency," Sen. Kent Lambert, R, told KCNC's Michelle Griego.


Lambert said that can easily happen in this country, so he's sponsoring a bill that would allow people to use gold and silver coins like cash.


"Coins that are minted by the U.S. government should be something that we can use in trade," he said.


After World War gold and silver coins were banned as currency in the U.S. To use gold and silver coins today they have to be converted to paper dollars. So a $20 gold coin in the 1800s is still legally worth $20, even though its real value may be a lot more.


On Friday gold was trading at more than $1,700 an ounce.


Lambert says if the bill passes people will not be walking around with bags of gold coins, but it's an alternative for them to feel more secure with their money.
 

DSAbug

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After living in the pacific northwest for the past 7 year, i'd be surprised if they pass that law. I got out of there because of the "what's yours is mine" attitude that is so prevalent in those states. I'd be very very very surprised if the state of washington actually did the right thing at the expense of potential revenue for the state.
 

pmbug

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It’s starting to look like Virginia could yet emerge in a leading role among the states in respect of monetary reform. The lower chamber of its general assembly has passed a bill to underwrite a study of the feasibility of a monetary unit based on a metallic standard. It is one of a number of states that are reaching deep into the Constitution of the United States to protect themselves in an era when the value of the dollars issued by the federal government is collapsing.
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More: http://www.nysun.com/editorials/virginia-in-the-vanguard/88184/
 

DCFusor

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As a lifelong Virginian, what makes me scratch my head is why I'm hearing this here, instead of the local news. Those guys might as well be operating in secret as far as they mention what's going on around here.
 

pmbug

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The bill is on double secret probation.
 

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Bloomberg reporting on the story:
Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.

Lawmakers in Arizona are poised to follow Utah, which authorized bullion for currency in 2011. Similar bills are advancing in Kansas, South Carolina and other states.
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The Arizona measure, sponsored by Republicans, won preliminary approval in the House of Representatives April 4 after passing the Senate on a party line vote Feb. 28. Gold is mined in both Arizona and Utah, while Nevada is the largest U.S. producer, according to National Mining Association figures.
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http://www.bloomberg.com/news/2013-...as-u-s-states-promote-bullion.html?cmpid=yhoo

I don't know what "preliminary approval" means. :shrug:
 

MasterQ

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Maybe I'm just not seeing this as clearly as everyone else but what point would this make for daily transactions outside of the point to the federal government?

If you use gold and silver to settle a debt etc., wouldn't you get spot price for the transaction or near abouts?

What would make the difference if you decided to just go to a coin shop and cash out for debts?

I'm not seeing any other distinction here.

Please forgive my ignorance and help a brother out. :)

-Q
 

pmbug

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It's a symbolic thing at the moment. It might remove some local (state) sales or capital gains taxes on bullion transactions, but it's really about making a statement to FedGov about the dollar (IMO).
 

benjamen

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http://thenewamerican.com/economy/e...legislature-approves-gold-and-silver-as-money

"If the legislation is signed by Gov. Jan Brewer, a Republican, Arizona would become the second state to officially define gold and silver as legal tender."

"Under the Arizona SB 1439 legislation, precious metals would be treated just like debt-based fiat dollars for taxation and regulation purposes. However, unlike fiat dollars, nobody would be forced to accept gold or silver currency."
 

DCFusor

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They would in this case. Doesn't pay to talk trash/try to evade. Judges sometimes actually do go with the spirit of the law, and assess intent, even if the law doesn't cover it. Usually, we think of those judges as the good guys...

On the other hand, I've fought them to better than a draw recently - got a ridiculous $2m bill cut to first 100k, then 10k ( for years since 2007), and even got an actual letter of apology from the IRS, which I plan to frame...it's got to be rare and worth "far more than face value". Right now, they are demanding a mere 1.4k...I'll pay, no arguments.

Perhaps that guy didn't have as good a lawyer as I did...but they also probably had some evidence that he was flying close to the wind, so to speak, and encouraging others to take advantage of that "loophole" - intent matters a lot it seems.

In my case, I'd failed to file for what turned out to be perfectly legit reasons - I didn't make any big money, even though a lot "flowed through" - and they went nuts over the flow amount, not the net profit (which was small) because they are the IRS and just didn't "get it".

Another example - Ruby Ridge vs what happened here with the BATF. I didn't talk trash, I just made and used some high explosives in a non-threatening way to do actual good. Once they saw that, no problems at all. They just felt they had to check. Since it began non-threatening (to them), it also ended that way.

Sad that we've reached a world where the default is that "ability equals intent" in a lot of things (the DEA had the assumption that there was nothing legal possible to do with a large chemistry setup for example). I *could* do a heck of a lot of damage - I have the ability. Just not the intent - I happen to prefer a not-broken world - I don't believe in shitting in my nest.
 

Unbeatable

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Last Monday Arizona lawmakers passed a bill that makes precious metals legal tender. Arizona is the second state after Utah to allow gold coins created by the Fed and private mints to be used as currency.

Senator Crandell... A return to the gold standard, he believes, will relieve volatility in the gold market.

The bill will also eliminate a capital gains tax liability associated with an increase in the value of gold. Making gold a legal tender eliminates the commodities tax at a state level.

In an interview with the Arizona Daily Star, Crandell expressed his distrust in the U.S. Dollar, stating that as the Fed continues to print money hyperinflation becomes more likely. This bill will prove to be a safe haven for the state of Arizona when hyperinflation sets in, he says.
Video interview on Daily Ticker...

http://finance.yahoo.com/blogs/daily-ticker/arizona-becomes-second-state-approve-gold-silver-legal-131138074.html
 

pmbug

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Arizona bill passed the state Senate:
The Arizona Senate on Tuesday approved a measure to make gold and silver legal currency in the state, in a response to what backers said was a lack of confidence in the international monetary system.

The legislation cleared the Republican-controlled Senate by an 18-10 vote after being approved by the state House earlier this month. It now goes to Republican Governor Jan Brewer, who has not indicated if she will sign it into law or veto it.
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http://news.yahoo.com/arizona-lawmakers-pass-bill-making-silver-gold-legal-011925729.html
 

Cybrsk8r

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Why is a law needed for this?

If I want to trade PMs for something I need, wouldn't that be considered barter, which has always been legal? This is one of the reasons I make sure to include some smaller sizes of rounds and bars, as well as junk silver. In case I need to "spend" silver at some point.
 

pmbug

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These bills essentially remove state level capital gains and sales taxes on transactions involving bullion. It levels the playing field a little bit. Greshams law still applies though as long as Federal legal tender laws remain intact.
 
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