While The Fed Continues To Destroy The Dollar, Kansas Looks To Acknowledge Constitutional Money
This is always going to be a problem as long as the federal government continues to not follow the Constitution regarding constitutional money and print fiat money. Still, while the Federal Reserve continues to go against President Donald Trump, even though he nominated the Fed chairman, the state of Kansas has chosen to do what the Constitution demands and other states have done and that is to recognize gold and silver as actual money.
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Kansas House Representative Michael Capps introduced legislation HB 2285 which would force the state of Kansas to recognize precious metals, such as gold and silver, as currency in the state.
The move is a constitutional one that if representatives understood the US Constitution should support wholeheartedly.
The Constitution explicitly says:
Article I Section 10
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
Yet, what are we paying with today? That’s right, paper “I owe yous.”
According to the 46-page legislation, which addresses the Kansas legal tender act, it is a, “reaffirmation of gold and silver coin as legal tender; exempting specie from Kansas sales taxation; income taxation subtraction modification for gains from the sale of specie; amending K.S.A. 2018 Supp. 79-32,117 and 79-3606 and repealing the existing sections.”
Trump has said that the Federal Reserve is sabotaging the US economy.
If you recall, Trump tweeted back in December, “The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch – he can’t putt!”
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch – he can’t putt!
— Donald J. Trump (@realDonaldTrump) December 24, 2018
So, how would this work out practically? The Tenth Amendment Center explains:
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 clarifying several tax measures and more importantly, expanding the definition of specie to include gold and silver coin approved by the state. With the law in place, United Precious Metals Association (UPMA) opened a “gold bank” that 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. Account holders can make everyday transactions using their accounts through a debit card system.
With the passage of HB2285, Kansas would follow Utah’s lead and take a step toward treating gold and silver specie as money instead of a commodity. As Sound Money Defense League Policy Director Jp Cortez testified during a committee hearing on a similar bill in Wyoming last year, charging taxes on money itself is beyond the pale.
“In effect, states that collect taxes on purchases of precious metals are inherently saying gold and silver are not money at all.”
Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35 cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what taxes on gold and silver bullion do. By removing the sales tax on the exchange of gold and silver, Kansas would treat specie as money instead of a commodity. This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money.
We ought not to tax money – and that’s a good idea. It makes no sense to tax money,” former U.S. Rep. Ron Paul said during testimony in support an Arizona bill that repealed capital gains taxes on gold and silver in that state. “Paper is not money, it’s fraud,” he continued.
The proposed law’s impact would go beyond mere tax policy. During an event after his Senate committee testimony, Paul pointed out that it’s really about the size and scope of government.
“If you’re for less government, you want sound money. The people who want big government, they don’t want sound money. They want to deceive you and commit fraud. They want to print the money. They want a monopoly. They want to get you conditioned, as our schools have conditioned us, to the point where deficits don’t matter.”
Practically speaking, officially making gold and silver specie legal tender and eliminating taxes on the sale of gold and silver would crack open the door for people to begin using specie in regular business transactions. This would mark an important small step toward currency competition. If sound money gains a foothold in the marketplace against Federal Reserve notes, the people will be able to choose the time-tested stability of gold and silver over the central bank’s rapidly-depreciating paper currency.
“The Kansas Legal Tender Act would ensure a smoother transition from the Fed’s fiat currency by allowing a competing currency and legalizing gold and silver as money again,” wrote Paul in an email sent to Campaign for Liberty subscribers, “And precious metals can help protect you against the continued devaluation of Federal Reserve Notes.”
Additionlly, while precious metals have remained basically constant in valued, despite manipulation to keep their value down by the Fed through the devaluation of the dollar, Paul adds:
“In reality, gold and silver are simply excellent stores of wealth, maintaining purchasing power over time. Unlike the Fed’s currency that loses value over time simply because the Fed can create virtually as much of it as it wants to for free.”
“By recognizing precious metals as legal tender, Kansas legislators will help ensure you are able to survive the next inevitable recession caused by the Federal Reserve.”
Let’s encourage this not only in Kansas but also in every state of the union.
Article posted with permission from Freedom Outpost