AZ Deal Major Blow to the Fed.

Dec 2013
33,811
19,360
Beware of watermelons
#1
A major victory against the United States Federal Reserve comes out of Arizona this week as Arizona Governor Doug Ducey signed House Bill 2014 into law — officially allowing Arizona residents to use precious metals as currency — instead of fiat federal reserve notes.

The bill went after the federal government’s attack on precious metals by eliminating the capital gains taxes on precious metals. Arizona residents no longer have to tell the federal government how much they ‘gained’ or ‘lost’.

To put this in layman’s terms, if you buy an ounce of gold today for $1,200 and tomorrow it takes $1,300 to buy that same ounce — you did not make money — because that value is based on federal reserve notes. If you sell that coin for $100 more, it is not a profit but, rather, a loss.

“It’s called inflation,” Representative Mark Finchem, who introduced the bill on January 9, said. “The Internal Revenue Service for many, many years has been taxing inflation as though it was a gain.”

The Arizona bill now allows people to “deduct the amount of any net capital gain derived from the exchange of one kind of legal tender for another kind of legal tender or specie (gold and silver coins) from their gross income on their state income tax.”

“The U.S. Mint is charged with protecting the value of money, but the Federal Reserve creates nothing but debt. Yet Congress authorized a tax when making the exchange of precious metals for dollars. It’s illegal and they know it, this bill is an effort by one state to protect the people from such confiscation,” said Finchem.


Read more at It's Official: State Deals Massive Blow to Fed: Gold & Silver Now Treated as Money in AZ
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Likes: 2 people
Dec 2013
33,811
19,360
Beware of watermelons
#3
Gold is a precious metal and already traded openly. Silver is also a precious metal and I sold my silver to my rich neighbor for fiat currency just before silver tumbled. The barter system is alive and well in Ohio, caveat emptor.
The U.S. Mint is charged with protecting the value of money, but the Federal Reserve creates nothing but debt. Yet Congress authorized a tax when making the exchange of precious metals for dollars. It’s illegal and they know it, this bill is an effort by one state to protect the people from such confiscation,” said Finchem.
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Likes: 1 person
Apr 2017
331
205
West Virginia
#4
Very interesting article. One of the only bright spots of going to the Middle East is visiting the Gold markets and buying gold. I remember we use to have to pay extra to have it made into chains because of it being illegal to bring gold bullion back home to the United States. I also remember just tucking a few ounces of gold bullion into shoes in my suitcase and doing it anyway.
 
Sep 2015
14,302
5,086
Brown Township, Ohio
#5
I know more than I should know about trading precious metal.

edit: Gold set to climb after FED rate increase, Kitco. I have bought and took possession of Gold from Kitco and sold it back to them for a tidy sum. You can also buy gold from Kitco without taking possession and keep it on their books which eliminates transportation cost. Kitco is a big Canadian company who never cheated me and I might put fiat currency in gold once again. Strike when the iron is hot or buy when blood is on the street. Kitco did not 1099 me.
 
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Dec 2013
33,811
19,360
Beware of watermelons
#6
Very interesting article. One of the only bright spots of going to the Middle East is visiting the Gold markets and buying gold. I remember we use to have to pay extra to have it made into chains because of it being illegal to bring gold bullion back home to the United States. I also remember just tucking a few ounces of gold bullion into shoes in my suitcase and doing it anyway.
China has been super inflating its currency for years and using it to buy up gold and property throughout the world. The government backed fiat currency is a house of cards barely holding itself together. This is why the EU is so important. If and when it fails it would crush the fiat currency market.

Nobody even has the slightest clue how much fiat is out there. It is absolutely amazing.
 
Likes: 1 person
Sep 2015
14,302
5,086
Brown Township, Ohio
#7
China has been super inflating its currency for years and using it to buy up gold and property throughout the world. The government backed fiat currency is a house of cards barely holding itself together. This is why the EU is so important. If and when it fails it would crush the fiat currency market.

Nobody even has the slightest clue how much fiat is out there. It is absolutely amazing.
Just a few years back The University of Texas bought tons of bullion Gold. Now we have to look at the past when FDR outlawed bullion gold but he did not outlaw old American gold coins because FDR was a coin collector.
 
Apr 2017
331
205
West Virginia
#8
China has been super inflating its currency for years and using it to buy up gold and property throughout the world. The government backed fiat currency is a house of cards barely holding itself together. This is why the EU is so important. If and when it fails it would crush the fiat currency market.

Nobody even has the slightest clue how much fiat is out there. It is absolutely amazing.
That is why it is fiat. You are not supposed to have a set amount. That was the point of using a federal reserve and Congress no longer using their power to coin money. If we went back to Congress actually coining money then you would have at least a idea of how much money was out there. The system now works like this. A bank has 8 million dollars and loans out 12 million. The bank just printed, without any authority or, oversight rather, to do so, 4 million dollars. That, is fiat money. Congress agreed to this and voted away their responsibility.
 
Sep 2015
14,302
5,086
Brown Township, Ohio
#9
That is why it is fiat. You are not supposed to have a set amount. That was the point of using a federal reserve and Congress no longer using their power to coin money. If we went back to Congress actually coining money then you would have at least a idea of how much money was out there. The system now works like this. A bank has 8 million dollars and loans out 12 million. The bank just printed, without any authority or, oversight rather, to do so, 4 million dollars. That, is fiat money. Congress agreed to this and voted away their responsibility.
I just pulled out a Federal Reserve Note which is fiat and below the Seal of the United States Federal System is says this note is legal tender for all debts public and private.
 
Apr 2017
331
205
West Virginia
#10
I just pulled out a Federal Reserve Note which is fiat and below the Seal of the United States Federal System is says this note is legal tender for all debts public and private.
Of course it is. Why would it not be legal tender for all debts public and private? No one questioned rather or not it was legal. It is legal. I think the question is rather or not it was a good decision to allow the federal reserve and banks to "print" money instead of Congress
 
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