In April of 2018, I published “Remonetization of the Pet Rock, and a Gold Chart Update,” which discussed where the precious metals were being monetized around the globe, and a mention of the following…
“Coincidentally or not, on March 22 of this year, four days before China launched their oil bourse, U.S. House Representative for West Virginia Alex Mooney (one ‘O’ away from money), tabled Bill H.R.5404 ‘to define the dollar as a fixed weight of gold.’ Whether this bill evolves into a form that is palatable for the congress critters and senate snakes to actually pass and make law is yet to be determined. Keep in mind, though, that over the last few years, at least 30 states have introduced or passed a bill to end all taxation of gold and silver.”
On July 3, I published “Gold and Silver Returning to Constitutional Status Across the U.S.” and covered the trend across the U.S. where the precious metals are being remonetized…
“While some precious metal investors whine about foundational pullbacks taking place during gold’s return to a primary-bull uptrend since late 2015, perceptive folks are busy accumulating their money. Many states have already passed laws, with many more in the process of formulating legislation to return gold and silver to their proper legal tender status. Another giant step took place in Nevada in June, when the issuance of bonds backed by gold was approved, which adds another debunking bullet point against pundit claims that gold and silver do not provide any yield.”
The initial bill that Rep. Mooney introduced was referred to the House Committee on Financial Services. Several issues stood out within the bill, beginning with errors in the very first line. The gold standard did not end in 1913 but ended in stages between 1933 and 1971, with important developments in 1965 and 1968. For any money-savvy congress critters who reviewed the original H.R.5404, it was obvious the bill required a complete overhaul to be palpable, but Rep. Mooney deserves an “A” for effort in bringing such a bill for consideration to the federal level.
If a revised bill is put forward before the mid-term election this fall and the mainstream media presstitutes miraculously provide realistic coverage, the bill may have a chance of passing because the politicians may fear a “no” vote would be viewed as unpatriotic or exhibit a lack of concern about monetary policy by their constituents. I know, dream on, TraderStef. Maybe it is not so far-fetched because a new version of the bill is traversing the capital building as I pound out this article, and it is short, sweet, easy to understand, and most importantly, it has legislative precedent due to the U.S. states that recently passed similar legislation.
This time around, Rep. Mooney correctly defined the USD as a “unit of gold” in the new bill, along with a palpable solution, but he has the trade story wrong. Bad trade deals are a result of and after the fact, as the real problems launched into the stratosphere after President Nixon instructed the Treasury secretary “to suspend temporarily the convertibility of the dollar into gold” in 1971, and “laid to rest the bugaboo.” That would ultimately be the source of our trade deficit imbalances, falling real wages, soaring debt burdens, and an ever-growing disparity between the bottom 90%ers and top 10%ers, et cetera. The demise of the U.S. middle class is now our problem.
Nixon’s Treasury secretary, John Connally, famously told a group of European finance ministers concerned about the export of U.S. inflation by saying “the dollar is our currency, but your problem.”
‘Our currency, your problem’: The US has made a weapon of the dollar… “Convinced of an existential threat from competitors, America is weaponising the US dollar to preserve its global economic and geopolitical position. While the US accounts for about 20 per cent of the world’s economic output, more than half of all global currency reserves and trade is in US dollars. This is the result of the 1944 Bretton Woods agreement, the effect of which was enhanced when the link between the greenback and gold ended in the 1971 Nixon shock, allowing America to control the supply of the currency.” – Sydney Morning Herald, Sep. 7
Here is the latest on the bill and a few excerpts in the following article. The new two-page bill is a must-read for all savvy metalheads.
Congressmen Introduce Bill to End Taxation of Gold and Silver… “The battle to end taxation of constitutional money has reached the federal level as U.S. Representative Alex Mooney (R-WV) today introduced sound money legislation to remove all federal income taxation from gold and silver coins and bullion.
The Monetary Metals Tax Neutrality Act – backed by the Sound Money Defense League, Money Metals Exchange, and free-market activists – would clarify that the sale or exchange of precious metals bullion and coins are not to be included in capital gains, losses, or any other type of federal income calculation.
‘My view, which is backed up by language in the U.S. Constitution, is that gold and silver coins are money and…are legal tender,’ Mooney said in a House Financial Services Committee hearing this week. ‘If they’re indeed U.S. money, it seems there should be no taxes on them at all. So, why are we taxing these coins as collectibles?’
Acting unilaterally, the Internal Revenue Service has placed gold and silver in the same ‘collectibles’ category as artwork, Beanie Babies, and baseball cards, a classification that subjects the monetary metals to a discriminatorily high long-term capital gains tax rate of 28%.” – Money Metals Exchange, Sep. 7
I emphasized in my last article what a big deal this truly is, and I will say it again.
“Few realize or talk about how impactful the various legislations passing across the nation will have on your financial well-being. Visit the Sound Money Defense League’s legal tender movement page and stay up-to-date with the latest in every state. Do your due diligence on real money and exercise your God-given Constitutional rights.”
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Originally published on September 11, 2018 by TraderStef at CrushTheStreet.