Texas proposal the right to use PMs as money in state constition

Skyrocket

Skyrocket

Well-Known Member
Silver Stacker
Good bye Federal Reserve USD fiat money? If it gets through this may/will significantly increase the price of gold and silver?


Texas Proposal Would Include the Right to Sound Money and Bitcoin in the State Constitution

AUSTIN, Texas (March 7, 2017) A joint resolution introduced in the Texas House proposes a state constitutional amendment to guarantee the right to own, hold and use any mutually agreed upon medium of exchange. Passage of the bill would take another step toward undermining the Federal Reserve's monopoly on money.

Rep. Matt Schaefer (R-Tyler) introduced House Join Resolution 89 (HJR89) on March 2. If passed, the resolution would place a constitutional amendment on the ballot recognizing the right of the people to own, hold, and use a mutually agreed upon medium of exchange, including cash, coin, bullion, digital currency, or privately issued scrip. The proposal would add the following language to the Texas state constitution.

"The right of the people to own, hold, and use a mutually agreed upon medium of exchange, including cash, coin, bullion, digital currency, or scrip, when trading and contracting for goods and services shall not be infringed. No government shall prohibit or encumber the ownership or holding of any form or amount of money or other currency."

In effect, passage of the bill would, as Ron Paul has often said, "legalize the Constitution" by treating gold and silver specie as money. Professor William Greene, an expert on constitutional tender, noted that the proposal would introduce competition with the Federal Reserve. "By introducing competition in currency through 'recognizing the right of the people to own, hold, and use' bullion such as gold and silver coins, passage of the amendment would take one more step toward the ultimate goal of 'nullifying' the Federal Reserve system," he said.

http://blog.tenthamendmentcenter.co...-money-and-bitcoin-in-the-state-constitution/
 
Skyrocket said:
Good bye Federal Reserve USD fiat money? If it gets through this may/will significantly increase the price of gold and silver?


Texas Proposal Would Include the Right to Sound Money and Bitcoin in the State Constitution

AUSTIN, Texas (March 7, 2017) A joint resolution introduced in the Texas House proposes a state constitutional amendment to guarantee the right to own, hold and use any mutually agreed upon medium of exchange. Passage of the bill would take another step toward undermining the Federal Reserve's monopoly on money.

Rep. Matt Schaefer (R-Tyler) introduced House Join Resolution 89 (HJR89) on March 2. If passed, the resolution would pklace a constitutional amendment on the ballot recognizing the right of the people to own, hold, and use a mutually agreed upon medium of exchange, including cash, coin, bullion, digital currency, or privately issued scrip. The proposal would add the following language to the Texas state constitution.

"The right of the people to own, hold, and use a mutually agreed upon medium of exchange, including cash, coin, bullion, digital currency, or scrip, when trading and contracting for goods and services shall not be infringed. No government shall prohibit or encumber the ownership or holding of any form or amount of money or other currency."

In effect, passage of the bill would, as Ron Paul has often said, "legalize the Constitution" by treating gold and silver specie as money. Professor William Greene, an expert on constitutional tender, noted that the proposal would introduce competition with the Federal Reserve. "By introducing competition in currency through 'recognizing the right of the people to own, hold, and use' bullion such as gold and silver coins, passage of the amendment would take one more step toward the ultimate goal of 'nullifying' the Federal Reserve system," he said.

http://blog.tenthamendmentcenter.co...-money-and-bitcoin-in-the-state-constitution/
Click to expand...

even if it passes it wont do anything for the price of gold or silver. again it is not making gold or silver "money" the mutually ageeed upon medium of exchanged could be dog turds. also any medium f exchange would need a price set and mutually agreed upon again this does not make it money as it is still not a legal tender like currency for the paymentw of debts. damn and would have so liked paying my taxes with my cbosed medium of exchange of dog turds


k
 
Skyrocket said:
Good bye Federal Reserve USD fiat money? If it gets through this may/will significantly increase the price of gold and silver?
Click to expand...

Why would it?
Texas is one of 50 states in the US, which is one of many major countries that contribute to the price of the metals market.
Not to mention that hardly anyone would start to use PM's as money.
 
Gold and silver, yes, of course it's a proven medium of exchange. But a cryptocurrency like Bitcoin? :rolleyes: That's just asking for trouble in spades.






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If I had a gold coin or a handful of Federal Reserve notes and I had to pay a bill, I know which ones I would use.

It might be good for community currencies though, some councils in the UK will accept the local community currencies for payment of rates.

Some groups reward volunteers by giving them local currencies in lieu of cash, this would help them quite a bit.

It would also mean that councils could make their own currency, pay it to their gov workers and the gov workers could give it all back to the council for rates, thus increasing the money supply without inflating the value away. Or something like that, it was running like that in Argentina during the worst of their inflationary periods when the local government ran out of national currency.

It would also give some competition to the Federal Reserve, if there are two currencies circulating and one loses value every year due to inflation and the other keeps in line with inflation then many people would prefer to use the gold and silver coins, or at least that was the theory behind the Liberty Dollar.
 
SilverDJ said:
Skyrocket said:
Good bye Federal Reserve USD fiat money? If it gets through this may/will significantly increase the price of gold and silver?
Click to expand...

Why would it?
Texas is one of 50 states in the US, which is one of many major countries that contribute to the price of the metals market.
Not to mention that hardly anyone would start to use PM's as money.
Click to expand...

It could be a precedent for other US states to follow when USD is in trouble soon. Then the world too when their currencies are in trouble coming GFC.



[youtube]http://www.youtube.com/watch?v=wMwbkzrWLck[/youtube]

Also, all them arguments on this forum about whether gold and silver is money will be ended/settled. All those that say PMs aren't money can ask Texans if they are :D
 
I can see Morgan and DB licking their lips in anticipation.

The mind boggles when all the shops and business hedge their gold position, the money they will make.
 
Professor William Greene, an expert on constitutional tender wrote -


Ending the Federal Reserve from the Bottom Up: Re-Introducing Competitive Currency by State Adherence to Article I, Section 10

As I noted in a paper I presented at the Mises Institute ("Ending the Federal Reserve from the Bottom Up"), when you introduce competition in currency, "[o]ver 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)." Economist Peter Bernholz has labeled this "reverse Gresham's law" as "Thiers' Law," after French politician and historian Adolphe Thiers.

As "Thiers' Law" takes effect, 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 citizens residing 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. Far from causing economic destabilization, as monetary theorist and Constitutional scholar Edwin Vieira notes, a "more sound currency will simply supplant a less sound currency, by operation of the free market." At that point, the Federal Reserve system will have become unwanted and irrelevant, and can be easily abolished by the people's elected Representatives in Washington, D.C.


https://mises.org/library/ending-fe...ompetitive-currency-state-adherence-article-i
 
Looked this up, and I don't think it's going to work. Utah state government would have to force it to work plus this is only USA junk coins and USA gold denominated coins.

Without enforcement other than tourist for novelty who could be borthered.

The strangest thing is they seem to be looking to create their own depository notes. Now is going to hand in PM to a state depository run by politician from Hicksville.
 
Even if Texas don't do it I think it is only a matter of time before other nations will because of current world debt environment. When one nation does it I think it will be a snowball for others to follow.
 
Skyrocket said:
Even if Texas don't do it I think it is only a matter of time before other nations will because of current world debt environment. When one nation does it I think it will be a snowball for others to follow.
Click to expand...
Why would they want to have a tangible substance for debt repayment when they can have printed paper?
The dream of any precious metal becoming a standard for payments on a world scale is nothing ore than a pipe dream (no disrespect intended).
It would simply make no sense to switch out of paper as it would make debt repayment near impossible and the whole thing will keep ticking along well after we all here are gone.
 
Gullintanni said:
Skyrocket said:
Even if Texas don't do it I think it is only a matter of time before other nations will because of current world debt environment. When one nation does it I think it will be a snowball for others to follow.
Click to expand...
Why would they want to have a tangible substance for debt repayment when they can have printed paper?
The dream of any precious metal becoming a standard for payments on a world scale is nothing ore than a pipe dream (no disrespect intended).
It would simply make no sense to switch out of paper as it would make debt repayment near impossible and the whole thing will keep ticking along well after we all here are gone.
Click to expand...

It seems to me some Utah politicians have stakes in gold dealers and itching to get their hands on people's PM.
Plus would the locals hand in gold and be happy to receive local depository backed certificates.

I presume they are going to set the price to, otherwise can you imagine to queue at the till, on every transaction look at spot price and negotiate the change.

Diner paying for dinner : I have unc silver eagle I need 20% premium minimum.
Restaurant : no can do spot value only, for change I will give you silver nickel and three copper clad quarter.
Diner : I only want silver in change
Restaurant : this is too hard pay cash please.
 
I think what people forget with PM backed currency is that, the PEOPLE can't have a floating currency.

The value has to be set and in all gold backed currency it was base metals and promissory notes / certificates were the mainstay of money in circulation.

If only Utah did it, would all their workers look at spot at every pay day?

If spot of gold went up 10% that week the worker will be happy, if went up 25% would be laughing
If spot of gold went down 10% that week the worker won't be happy....

If you set it at $1200 and the gold went up to $1400 gold money will disappear from the state as people go across the border into other states to be turned into cash.

Conversely if you are an Utah car dealer would you advertise 20 gold eagles with a caveat saying only if spot is x.
 
Skyrocket said:
Even if Texas don't do it I think it is only a matter of time before other nations will because of current world debt environment. When one nation does it I think it will be a snowball for others to follow.
Click to expand...


Again my chosen medium of exchange is dog turds. That legislation lets the user pick. So how many ounces of worthless gold will you give me for my precious dog turds? Each one is unique, priceless work of art.
 
Court Jester said:
Skyrocket said:
Even if Texas don't do it I think it is only a matter of time before other nations will because of current world debt environment. When one nation does it I think it will be a snowball for others to follow.
Click to expand...


Again my chosen medium of exchange is dog turds. That legislation lets the user pick. So how many ounces of worthless gold will you give me for my precious dog turds? Each one is unique, priceless work of art.
Click to expand...





Not far from the truth. The entire value of anything inanimate (such as a commodity or a claim) is the value what people attach to it.

The best money is something that can be easily exchanged for goods and services, that is recognizable by just about everyone who is expected to use it, that can not be easily reproduced or counterfeited, and that the people can have confidence in. Some day, special dog poop might be that best money (medium of exchange). ;)




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I don't think they mean to go buy small items with gold and silver. Just the right to own, hold and trade with it.

Some Texans know the USD is going down sooner or later and they may be putting something in place so US government cannot call all gold/silver in like they did before with gold. That happened before in Australia too.

Treason is what I see here! Everyone who posted in this thread so far should be hanged for it :P
 
For more than 99% of the people in the world today, gold and silver is not money because it doesn't function as such.


Texas should allow for anything to be used as money if they are going to go through the effort they seem to be....why should legislators have the say as to whether dog turd or anything else can or can't be used as money? So long as no one is harmed and so long as the people are good with the medium of exchange, what can be used as money should be left wide open and for the people to decide. And yes, if some people are okay with using a cryptocurrency to function as their money, then they should be allowed to....but don't come crying to the rest of us when your gazzillion cryptos vanish into thin air because a 13 year old computer hacker in Kajubistan steals them just after you sold your car and while you are preparing to pay for the new car. :rolleyes:






Bob and John are trying to determine the true value of silver....not the value based off of the spot price or based off of any other price or value.

If John attaches a value of 5 to a 1 ounce blob of generic silver...

but Bob attaches a value of 250 to a 1 ounce blob of generic silver....

surely they both can't be right....can they?


Yes, of course they are both right. Because the intrinsic value of any inanimate thing is an empty set, that means that what someone is willing to attach to it becomes its true value. The true value of anything is always subjective.

Now with silver, for example, some people still sadly confuse or conflate the LBMA set price to "intrinsic value". Even more oddly, it's probably many of the same people who think that the LBMA price is manipulated or rigged who think that it alone determines some "intrinsic value".


Silver and gold have no intrinsic value. The only value they have is what each person attaches to it. Most people I know don't have any need or use for blobs of silver so they would attach zero to such things. Doomsdayers, on the other hand, believe that the post apocalyptic world is nigh and that a blob of silver will become indispensable and therefore virtually invaluable post apocalypse.


I'd argue that the value any inanimate thing is it's "buying power". So, I look at a generic blob of metal in terms of what I can buy with the money I can get for it since a generic blob of metal is not money and is otherwise useless to me....it's value is what I subjectively perceive its "buying power" to be.




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So just spit balling here but with the passage of this bill would it not mean that the state has monetized bartering?
With anything now being allowed as"currency" does this mean the state will be able to attach a dollar amount and in the end this will just be a way to TAX BARTERING?
If you really think about it ,are they really just opening up a tax door that they have been missing out on?
 
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