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gold and silver now legal tender in AZ

Discussion in 'Financial Cents' started by CATO, Mar 5, 2013.

  1. CATO

    CATO Monkey+++

    Activist Post: Gold and Silver Approved as Legal Tender by Arizona Senate

    must still pass state house and Governor before being approved completely

    Gold and Silver Approved as Legal Tender by Arizona Senate

    Wikimedia Commons image​
    Activist Post

    Arizona may become the second state, after Utah, to recognize gold and silver as legal tender authorized for payments of debts and taxes.

    The Arizona Senate voted Thursday to approve SB 1439 which allows businesses and the state government to accept payments in gold or silver.

    The Legal Tender bill specifies that legal tender in Arizona consists of all of the following:
    1. Legal Tender authorized by Congress. ​

    2. Specie (containing gold or silver) coin issued at any time by the U.S. government. ​

    3. Any other specie that a court of competent jurisdiction rules by a final, unappealable order to be within the scope of state authority to make legal tender.​
    Currently all debts and taxes in Arizona and the rest of the United States are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury -- very few of which have gold or silver in them.

    Although Article 1, Section 10 of the United States Constitution states that no state shall coin money; the same section stipulates that no state shall make anything but gold and silver coin a tender in payment of debts. In that regard the sponsors of bill feel that it will simply respect the use of gold and silver as per the Constitution without "coining" its own money.

    The law also exempts taxing the exchange of gold and silver into any other currency, and states that gold and silver as legal tender would not be "subject to tax or regulation as property other than money."
    S.B. 1439 is legislation modeled after Utah's which was the first to pass and be signed into law. Several other states have introduced similar measures motivated by the dollar instability caused by the Federal Reserve's recent monetary policies.

    Gold and silver have historically held their value compared to unstable dollars. The value of the U.S. dollar has plummeted 98% against gold in the last 100 years since the Federal Reserve took over as the U.S. central bank in 1913.

    As the Federal Reserve continues debase the currency through persistent quantitative easing, many more states may be looking to cushion themselves against further declines by legalizing competing currencies like gold and silver in the near future.

    Arizona's S.B. 1439 must still pass in the State House and be signed by Governor Jan Brewer before becoming law.
  2. Brokor

    Brokor Live Free or Cry Moderator Site Supporter+++ Founding Member

    A step in the right direction.
    Mindgrinder and VisuTrac like this.
  3. melbo

    melbo Hunter Gatherer Administrator Founding Member

    The problem is that they will continue to 'value' the Au or Ag in USD, which will continue to debase, causing fluctuation in the '[incorrect but common use of the term] buying power' of each PM. What they really need to do is detach from the USD and just go by weight 1/10th oz of Ag for a gallon of gas or something like that.

    The problem with that is that gas isn't freely traded and is subject to .gov lever manipulation in pricing...

    I could come up with about 100 problems about why some change in our current economic strata won't work and the root comes down to the fact that we do not nor have had for a long time: free markets.
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