Idaho introduces two silver-based sound money bills
As more people look for solutions to inflation and the instability of our debt-based monetary system, several states' legislatures have introduced bills allowing gold and silver to be used as an alternative currency in commerce and for taxes. Ohio, Montana, Idaho, New Hampshire, Indiana and Georgia are among the states that have introduced sound money legislation.
Idaho Constitutional Tender Act HB 622
On March 3, 2010, Idaho HB 622 “The Idaho Constitutional Tender Act” was introduced to allow gold and silver as well as electronic exchanges of ounces of gold and silver to be used in commerce and for state revenue.
Republican precinct committeeman Tom Dillin states that the most important reason for Idaho state legislators to support HB 622 is their sworn duty “…as members of the several state legislatures to support this Constitution…” [Article 6, Clause 3 of the U.S. Constitution] And, Article 1, Section 10, Clause 1 states: “No state shall...coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts;…” And, Article 1, Section 3 of the Constitution of the State of Idaho states: “…the Constitution of the United States is the supreme law of the land.”
The heart of the problem is Fed manipulation of money supply, which over time has favored USD devaluation (price inflation). The Fed expands or contracts the supply of our money with electronic transfers and bookkeeping entries. These “learned” manipulations by the Fed have failed to protect the American people from booms, busts, and a steady decline in purchasing power. In 1913, the rationale to abandon the constitution, in favor of a central bank, was to protect us from these problems. This excuse is no longer remotely believable…the Fed, central banking, fractional reserves, and fiat money have failed. It is time to restore constitutional tender to the people of Idaho for lawful and practical reasons.
It is not in the American tradition of checks, balances, separation of powers, free markets, individual freedom, and limited government to concentrate power in a cartel controlled by a few individuals. This is especially true with money. The Fed is a price-fixing banking cartel, shrouded in secrecy. Acting in the name of the greater good, the Fed fixes the cost (interest rates) of our money at any level they so choose. Cartels and price-fixing are outlawed in all other industries. Yet, the Fed is authorized (and encouraged by their apologists in business and government) to issue money at highly discriminatory interest rates to non-bankers outside the cartel. Price fixing distorts the marketplace and diminishes competition.
The systemic temptation is too much for anyone or any small group to consistently administer without corruption seeping into the process. The American people are left to pay for all lapses in judgment, miscalculations and malinvestments, as witnessed by the recent bailouts, which included foreign banks for reasons the Fed refuses to divulge, even to members of Congress, the Fed’s so-called regulators.
This power to issue unlimited amounts of money out of nothing and charge interest on the balance is patently unfair to the citizens of this country.
Here is another example of unfairness, which is based on actual prices (rounded for simplicity) of a home in Florida with 3 bedrooms and 2 baths.
1950 Bought $10,000 USD =285 Gold Ozs.
2010 Sold $318,000 USD =285 Gold Ozs.
USD Taxable Profit =$308,000
GLD Taxable Profit =0
The capital gains tax is a fraudulent tax because it is based on devalued money, not a tax on real appreciation in home value. If honest money (gold) had been used there would be no capital gains tax. In addition, the home priced in USDs has an increase in annual property taxes, not because the property value has gone up, but because the USD value has gone down; whereas the home priced in gold ounces never has an increase in property taxes based on a valuation in gold because gold retains its original value over time.
The second reason the legislature should support this Act is to protect and defend the people of Idaho and their property from an economic disaster. Disaster preparedness is the responsibility of the Idaho legislature.
In disaster preparedness mitigation, the first thing to consider is the likelihood of an event. Using generally acceptable measures, we can assess trends in USD value, since the creation of the Fed. That trend is a disaster. The USD has declined over 95% in buying power since its creation. This trend has accelerated over the past decade. The direct cause of USD devaluation, which drives up the consumer, producer, and housing prices, is excessive money creation.
The world media is reporting that the USD as the world’s reserve currency and oil currency is no longer acceptable. There are active movements away from the USD. China has reduced its purchases of our federal debt. On February 8, 2010 China’s military leaders called for a sell-off of U.S. debt securities in retaliation for recent arms sales to Taiwan. China holds $800 billion worth of Treasury debt securities. Fiat money is dependent on the confidence of the users; trust in our struggling USD is entering a very dangerous period in this regard.
It is very reasonable to assume that the USD’s roller coaster ride to devaluation will not only continue but violently intensify until it derails. The Idaho Constitutional Tender Act would mitigate a currency collapse, economic meltdown, and the subsequent social unrest. Historically, gold and silver have been the default currencies of choice in times of trouble. The Act positions Idaho for troubled times. The time to start building the infrastructure is now.
Idaho Silver Gem Act – House Bill 633
On March 5, HB 633 “The Idaho Gem Act” was introduced. This Act provides for the State Treasurer to accept an Idaho manufactured silver medallion and bar for the payment of fees and taxes. The Act mandates the State Treasurer to sell Idaho silver medallions and bars to the public at their market value tied to the daily market price of the U.S. Mint’s one troy, bullion style, silver American Eagle. This silver American Eagle will also be accepted by the Treasurer for the payment of fees and taxes.
The Silver Valley, located in the Kellogg and Wallace area of Shoshone County, is known as the “Silver Capitol of the World.” Since 1885, one billion ounces of silver have been removed from mines in the valley.
Currently none of the silver ore produced by Idaho silver mines is processed in Idaho nor in the United States. All of the silver ore produced in Idaho is sent out of the country to Canada, Belgium, Finland, Mexico, China and Korea. The building of a silver production facility in Idaho will allow Idaho silver mines to cut their costs of production and continue to produce should there be a decline in the price of silver.
The creation of a new silver production facility can be expected to create 400 to 800 new jobs in Idaho among the mines and at the new silver production facility. According to the Department of Commerce, for every 100 new mining jobs created, Shoshone and Kootenai Counties can expect the creation of an additional 132 jobs.