The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. 10th Amendment
BY MICHAEL BIESECKER – Staff Writer
RALEIGH — Cautioning that the federal dollars in your wallet could soon be little more than green paper backed by broken promises, state Rep. Glen Bradley wants North Carolina to issue its own legal tender backed by silver and gold.
The Republican from Youngsville has introduced a bill that would establish a legislative commission to study his plan for a state currency. He is also drafting a second bill that would require state government to accept gold and silver coins as payment for taxes and fees.
If the state treasurer starts accepting precious metals as payment, Bradley said that could prod the private sector to follow suit – potentially allowing residents to trade gold for groceries.
“I think we’re in the process of inflating a dollar bubble that could be very devastating,” said Bradley, a freshman legislator elected in November’s GOP tide. “The idea is once the study commission finishes its work, then we could build on top of the hard-money currency with an actual State Tender Act that will basically [issue currency] in correspondence to precious metals stored in the state treasury.”
Bradley’s bill has yet to attract any co-sponsors among his fellow Republicans.
Mike Walden, an economics professor at N.C. State University, said the notion of North Carolina reverting to having its own currency is outlandish.
“We dealt with this issue about 100 years ago when the Federal Reserve was established,” Walden said. “If North Carolina were to have its own currency, that would put us at an extreme competitive disadvantage vis-a-vis other parts of the country and other parts of the world.”
State Treasurer Janet Cowell joked that Bradley’s precious metals proposal could increase efficiency in state government by providing a good use for her department’s old basement vault, which is currently used for storage.
“I look forward to engaging in an important public policy debate about whose face should be on the gold coin,” quipped Cowell, a Democrat.
But Bradley predicts that world events could soon prove him prescient.
“I don’t necessarily believe [the Federal Reserve] is about to collapse right now,” said Bradley, 37. “There are still a few things they can do with qualitative easing to sort of extend their survival. It’s just a question of how long. Right know we have a lot of sovereign debt going to China and Japan. When that debt stops being purchased by foreign countries, that currency is going to flood back onto American shores, potentially creating hyperinflation and bursting the currency bubble we have coming in Federal Reserve notes today.”
The Austrian School
Bradley, a self-employed computer technician and former Marine, attended Southeastern Baptist Theological Seminary in Wake Forest until he could no longer afford tuition, he said. While he has not taken any in-depth classes in economics, Bradley described himself as a devotee of the Austrian School, a branch of economic thought that originated in Vienna and was influential before World War I.
Back then the value of most of the world’s currencies were tied to the amount of the gold amassed in their national treasuries. The United States abandoned the gold standard in 1933, after it was blamed for worsening the Great Depression.
Though the ideas of the Austrian School have been rejected by mainstream economists for much of the last century, they are in vogue with Libertarians and some supporters of the tea party movement.
The language of Bradley’s House Bill 301 predicts a dire future for the U.S. economy.
“Many widely recognized experts predict the inevitable destruction of the Federal Reserve System’s currency through hyperinflation in the foreseeable future,” the bill declares. “In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System, for which the State is not prepared, the State’s governmental finances and private economy will be thrown into chaos. …”
Asked who are the “widely recognized experts” to which his bill refers, Bradley cited U.S. Rep. Ron Paul of Texas and Peter Schiff, a precious-metals dealer and investor who regularly appears as a commentator on Fox News.
Walden, the economics professor, said the views espoused by adherents of the Austrian School are well outside the mainstream of modern economic thought.
Bradley’s ideas for taking the state back to the Gilded Age don’t end at economics.
About Commerce Clause
A strict Constitutionalist, he has also introduced bills to exempt North Carolina agricultural products and firearms manufactured in the state from federal regulation as long as they are not sold or exported across state lines, measures that fly in the face of more than a century of U.S. Supreme Court rulings interpreting the Commerce Clause of the U.S. Constitution.
“They’re wrong,” Bradley said confidently of generations of justices. “The 10th Amendment is quite clear that those powers not reserved in the Constitution for the federal government are reserved to the states. It’s doesn’t take a high-priced lawyer to interpret the Constitution.”
Rep. Becky Carney, a Charlotte Democrat, said she found Bradley’s currency bill “perplexing.”
“There has absolutely been no indication of the collapse of the Federal Reserve system,” said Carney, who serves on the House banking committee. “It sounds like the Chicken Little story about ‘the sky is falling.'”
The office of House Speaker Thom Tillis declined to say whether the GOP leadership supports Bradley’s proposal to create a state currency. His bill has been referred to the House rules committee, where legislation is sometimes sent to die.
“There are a lot of diverse opinions and diverse views in our caucus,” said Jordan Shaw, Tillis’ spokesman. “I don’t think we’re going to forecast what will happen.”
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Read more: http://www.newsobserver.com/2011/03/17/1059132/legislator-says-the-state-needs.html#ixzz1HHKbRhCH
Utah gold standard could become a reality
If you’re not convinced the threat of inflation in the U.S. is real, there’s a handful of Utah senators (17 to be exact) who respectfully disagree. The Utah Senate passed HB317 yesterday, 17-7, moving the state a few steps closer to a gold and silver standard. The bill allows businesses and individuals to exchange federally issued gold and silver coins instead of paper dollars in financial transactions.
The gold and silver would be valued at their current market price, meaning cashiers would probably need a calculator and a running Kitco ticker beside the register when processing transactions.
A state committee will now look at whether Utah should recognize an official alternate form of legal tender. Utah Governor Gary Herbert, who has not taken an official stance on the bill according to the Washington Times, will have the final say to veto or sign it into law.
If the bill ultimately becomes law, the implications would be interesting. On one level, it’s a symbolic move designed to send a message to Washington. On another, actually using gold and silver as legal tender would be difficult as users would have to file federally required transaction reports, according to the Deseret News.
If inflation becomes a reality, though, the appeal of such a system might be worth the headaches. Just last month, J.P. Morgan announced it would take gold as collateral for loans. It’s a sign that more sophisticated gold and silver transactions could be on the way.
Here’s a hypothetical: what if employers could pay employees in gold and silver? That amount could be electronically deposited into employee accounts not in USD but in XAU (the currency symbol for gold) or XAG (the currency symbol for silver). Banks could then issue special debit cards so that purchases could also be made in XAU and XAG.
If a business didn’t directly accept gold or silver as tender, credit card companies could apply an exchange rate for the gold or silver in the account, charge a fee to the purchaser and convert the purchase amount to USD at prevailing prices.
If the dollar were in the midst of a free fall, the consumer who’s holding gold or silver in the bank rather than dollars, would win. It’s almost enough to make me want to move to Utah.
Not enough gold in the world to return to a gold standard, Bernanke says
Rumblings that the U.S. should return to a gold standard have started trickling into the media as the public grows wary of a ballooning budgetary deficit. In an appearance before the Senate Banking Committee earlier this week, Federal Reserve Chairman Ben Bernanke was asked directly about the possibility of the U.S. returning to a gold standard.
“It did deliver price stability over very long periods of time, but over shorter periods of time it caused wide swings in prices related to changes in demand or supply of gold. So I don’t think it’s a panacea,” Bernanke said.
The soft response to questioning from Sen. Jim DeMint (R., S.C.) – a long-time Bernanke detractor – leaves a tiny window of hope that a gold standard might be something the Fed’s actually considering. “It’s not a cure-all, but it could be helpful,” Bernanke seems to be saying.
It’s difficult to imagine Bernanke would endorse a gold standard. He’s long maintained that the Federal Reserve kept too tight of a grip on the money supply by raising interest rates during the Great Depression. Once the public began losing faith in the dollar, they were all too eager to trade greenbacks for gold, which further contracted the money supply and ultimately led to deflation.
Linking the dollar to a fixed amount of gold would constrict the Fed’s ability to prop up the money supply. Bernanke himself pointed to another flaw he sees in a gold-backed currency: namely, that there’s not enough gold in the world to go around.
“I don’t think that a full-fledged gold standard would be practical at this point,” Bernanke said.
He could be implying a watered-down gold standard of sorts is possible in the future, but I’m not convinced Bernanke believes that. Inflation is one of the few tools the Fed has to spur growth (or at least the perception of growth). Giving power up is always more difficult than accepting it, and – so long as the public retains faith in the dollar – it would serve little purpose.
IS THE GOLD STANDARD THE ANSWER?
To understand the Gold Standard you have to understand money. To understand money you have to understand other things. Permit me to explain:
1. Money is a symbol for something that has a universal value. Most societies have only permitted gold and silver as money. Even our Constitution forbids the States to recognize anything else as legal tender:
Section. 10. 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; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
If you are looking for a legal way to challenge the Federal Reserve, this is it. It appears that you could file a motion in your home state under this section of the U.S. Constitution to force your state to stick to gold and silver as legal tender. The U.S. Constitution is the highest law of the land. Nothing trumps it. However, there are ways around this provision. One is the so-called “Gold Standard”. In other words, we can use pieces of paper that actually represent gold or silver.
Some of you might even recall “gold and silver” certificates that floated around in past century. These were redeemable in actual gold and silver at your nearest Federal Reserve Bank. So, if you had a $1 certificate, you could redeem it for $1 worth of silver or gold. This is one of the reasons why Kennedy was assassinated, by the way.
MYTH 1: The Gold Standard is the Answer to our Economic Woes.
The fact of the matter is that there is only a limited amount of gold out there. In fact, you could put all the available gold produced in one year in your living room (about 50 million troy ounces.) That would have a market value of about 80 billion dollars. If we estimate all of the gold available to us today from previous mining operations, we are looking at a cube about 1/3 the size of the Washington Monument.
In other words, we would have about 10 billion ounces of gold. We would have about 10 trillion dollars worth of gold if we put the entire amount into circulation. With a global economy of about 60 trillion dollars, we would be about 50 Trillion short. Or, we could contract the global economy by 50 trillion dollars and be right there.
But, here is the problem:
1. People hold onto things of value. That means they pull it out of circulation. Gold is used for much more than just currency, so it would be fair to estimate that half of the 10 trillion would be pulled from circulation in the first year and reallocated for other uses.
2. It would eliminate all third party transactions. Using gold itself as a physical means of exchange would make it impossible for you to buy anything that was further than you could drive.
Which brings us back to the “Gold Standard”.
If every dollar were backed by the equivalent amount of gold than you have eliminated the problem of third party transactions, but you still have the problem of scarcity. There were about 829 billion US dollars in circulation as of December 2007 according to the US Treasury. That means we would need 20% of the available gold to back our currency. Europe would need another 20%. That means the rest of the world would have to fight over the remaining 60%. So, the question remains, what currency would they use to conduct business with the rest of the world and how would it be backed?
Now, if we throw silver in the mix, we have something we can work with.
MYTH 2: The Gold Standard Will Stop the Banksters from Stealing Our Money.
I wish it were true. But, it is not:
1. The Knights Templar were the first bankers of Europe. They would take in deposits of gold and silver and issue “wooden chits” that could be redeemed at any Templar facility in Europe or elsewhere. This was the “gold standard” in action. But, Banksters will be banksters and they figured out that very few people actually redeemed the “chits”. Instead they stayed in circulation.
2. Pretty soon, they started lending money to kings and Popes alike. They handed out wooden “chits” and demanded to be paid back in gold and silver. Thus, they leveraged the “gold standard” by issuing “notes” that actually had nothing behind them. All because they knew that 98% of the wooden chits would remain in circulation and very few would ever be redeemed for the gold and silver they kept on deposit.
3. Inflation is always the result of what we call “fractional lending”. The Banksters end up with the gold and silver, and we end up with a worthless currency that continues to decline in value.
The Real Problem is the Federal Reserve System Folks!
1. The Federal Reserve System is a private corporation controlled by Illuminati Jews and the literal descendants of the Knights Templar. Most of the families that own the Fed are not even American Citizens.
2. The Fed uses the Treasury to print its privately owned currency and then charges us interest just to keep that currency in circulation.
3. The IRS and Federal Income Tax were created for the sole purpose of paying off the Interest owed to these Private Bankers for Using their currency.
Imagine what life would be like without an income tax. The divorce rate would plummet. One spouse could support a family. America would truly be the “Land of the Free”.
John F Kennedy was Murdered for trying to shut down the Illuminati Banksters:
1. He actually created a publicly owned currency that was backed by gold and silver. Some of you might recall the gold and silver certificates of the early 60s.
2. The currency was owned by “We the People” and it was interest free!
3. If he would have lived, and his program would have succeeded none of this current mess would have happened.
But, they killed him. If you remember nothing else, remember this: Anyone that calls for a gold standard without also calling for the abolishment of the Fed and a “Silver Standard” is throwing you a “red herring” and either stupid, or employed as a mouthpiece by the Illuminati Banksters. You need gold, silver and an interest free currency if America is to be truly free.