Posted by Tina
Gold and Silver coins have just taken center stage in Utah as the state legislature makes them as good as cash:
SALT LAKE CITY (AP) — Utah legislators want to see the dollar regain its former glory, back to the days when one could literally bank on it being “as good as gold.”
To make that point, they’ve turned it around, and made gold as good as cash. Utah became the first state in the country this month to legalize gold and silver coins as currency. The law also will exempt the sale of the coins from state capital gains taxes.
This is an interesting development. Federal capital gains taxes will still apply. Time will tell whether this idea catches on and the possible consequences might be. But one eager beaver entrepreneur isn’t waiting to find out. He hopes to become the first to create a “depository” for those who wish to store their gold and silver holdings. His plan is to issue debit cards that his customers can use against their holdings to make purchases.
One of the bill’s sponsors, Republican Rep. Brad Galvez, hoped the action would “serve as a protest against Federal Reserve monetary policy”.
At least nine other states are considering similar legislation.
The American people are known for their independent nature and grit. When situations become unbearable and unworkable we are apt to start making our own plans.
(Depending on how this plays out, Utah might also be the next state to welcome hordes of disgruntled Californians…lol)
It’s a wonderful idea, but the feds get mighty jealous when the states start determining what is legal tender and what is not.
‘Tis unconstitutional.
Which is why we also have courts in our country.
The states seem to be flexing their muscles a lot lately.
Rule of hierarchy, tried and tested and found to be Constitutional, States may pass a law that is equal to or exceeds federal law,but they may not pass a law of lesser standards.
Example: States may not make legal what is illegal under federal law, but a state can equal or even increase the penalty by passing their own version of the federal law. In this way a state is never in the position of undermining federal authority, which is why we fought the civil war. On the flip side of this argument we have [States rights] and the Constitution that safeguarded states rights so they may have sovereignty as another form of the check and balance system. By doing this our founders felt the federal government could not become to heavy handed and dictatorial. Most legal scholars would agree the South was legally right in their assertion of State’s rights.
The South WAS legally right in their assertions.
This still won’t fly, as the states must set the same value as the US.
That is the prevailing argument Quentin.
Quentin it is not illegal for states to issue gold or silver coins. Read this:
Article 10 section 1 USC: 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.