Alabama Committee Passes Bill to Help Encourage Use of Gold and Silver as Money

By By Michael Maharrey

An Alabama Senate committee has passed a bill that would exempt the sale of gold and silver bullion from state sales and use tax, encouraging its use and taking the first step toward breaking the Federal Reserve’s monopoly on money.

Sen. Tim Melson (R-Florence) introduced Senate Bill 156 (SB156) on Jan. 11. The legislation would exempt the gross proceeds from the sale of gold, silver, platinum, and palladium bullion in the form of bars, ingots or coins from sales and use tax in the state for five years after the date of enactment.

The Senate Committee on Finance and Taxation Education approved the measure by an 8-4 vote.

A similar bill is moving through the Alabama House.

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 Alabama’s sales tax on gold and silver bullion does. By removing the sales tax on the exchange of gold and silver, Alabama 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 Ron Paul said during testimony in support an Arizona bill that repealed capital gains taxes on gold and silver in that state.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 new law’s impact goes 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.

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Practically speaking, 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 would be able to choose the time-tested stability of gold and silver over the central bank’s rapidly-depreciating paper currency.

BACKGROUND INFORMATION

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 a state to return to a constitutional sound money system when it taxes gold and silver as a commodity.

This Alabama bill takes a step towards that constitutional requirement, ignored for decades in every state. Such a tactic would set the stage to undermine the monopoly of the Federal Reserve by introducing competition into the monetary system.

Constitutional tender expert Professor William Greene said 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.

WHAT’S NEXT

SB156 will now move to the full Senate for a vote. If you live in Alabama, contact your senator and ask her/him to vote “yes” on SB156. You can find your senator’s contact info HERE.

Michael Maharrey [send him email] is the Communications Director for the Tenth Amendment Center, where this article first appeared. He proudly resides in the original home of the Principles of ’98 – Kentucky. See his blog archive here and his article archive here. He is the author of the book, Our Last Hope: Rediscovering the Lost Path to Liberty. You can visit his personal website at MichaelMaharrey.com and like him on Facebook HERE

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1 Comment on "Alabama Committee Passes Bill to Help Encourage Use of Gold and Silver as Money"

  1. The use of gold and sliver coin as money might be an activist idea for combating the Fed, but is a bad idea on several levels.

    First of all, any influence that would increase demand for, especially gold, threatens planetary integrity in a major way, because there are few human activities more damaging to ecosystems than gold mining – and mining in general. Copper also especially bad. If cost to the planet were figured into the value of gold, it would come up negative.

    Another aspect should be well noted by advocates of gold-backed paper, such as Ron Paul, who complain about “fiat” currency. If you think about it, the value of gold is also fiat. It has no intrinsic value, as do food, water, land and air, only that arising from belief systems.

    As if the foregoing isn’t bad enough, people ought to consider that, just as with diamonds, the acquisition, valuation, and marketing of gold is an Elite operation. I suspect that financial Elites hold enough gold at any one time to tank its value by dumping it on the market. Utilizing it as money plays right into Elite hands. No commodity should EVER be money, or vice-versa.

    The fundamental con is the programmed notion that money should be a store of value, as opposed to merely an officially sanctioned standard of value, or medium of exchange. Money should be a convenience, not a mechanism of enslavement. There’s nothing more practical for this purpose than a fiat paper currency. “Fiat,” per se, its not the problem. Management and manipulation are. Anyone who thinks the value of gold (which is always set in fiat currencies 🙂 can’t be manipulated is either conning you or dreaming. I have to chuckle at the implied notion that society’s manipulators let gold ’slip by them’ in their control of human society, and is the way to ‘beat’ them.

    Money management and manipulation is handled mostly by private banks and market shenanigans. Loan interest is an innate crime and Elite construct. It’s the Elite’s death grip on nations and people and why the sheeple must pay for 2-3 houses to live in one. Many are citing out-of-control government as the problem, instead of the controllers of government(s). No one, or few, ask WHY “the” interest rate, only HOW MUCH. But WHY is the question. Add two other Elite-mediated crimes – income tax and inflation – and you have the basis for all the world’s stress around money.

    Most ‘solutions’ to challenges these days are aimed at symptoms. In the case of money (and many others), needed most is radical change in our notion of prosperity/success and the means to it. Degree of harmony with Nature comes to mind, as opposed to the hoarding of things gleaned from rape of Earth. As long as we continue to accede to the consumer orgy, especially supporting hi-tech, we remain enslaved to the system, no matter the form of money. “Sustainable development” is an Elite psyop to maintain the Elite’s profitable earth sacrifice.

    Fundamentally, the problem is human willingness to harm the source of life for money, convenience, fun, and entertainment. Maybe we need to consider that we’re so far down the wrong road, not just politically and governmentally, but in our fundamental beliefs and sense of reality, population levels, and overall way of life, that attempting to rescue government, economics, and finance prior to a remarkable evolution in mass consciousness will be like trying to fix a watch with a pipe wrench. Preventing such an evolution is a primary goal of the Illuminati. What they fear the most is widespread realization that the materialistic fascination they’ve been selling and nurturing is a prison—even when it has appeared to work properly and been entertaining.

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