by Peter Reagan, Birch Gold Group:
Lawmakers in the Lone Star State are so fed up with dollar devaluation that they’re taking matters into their own hands. Outlining a bold proposal to reinvent money – and it’s certain to have the Federal Reserve in an uproar. Here’s the opening shot in the battle of Texas versus the Fed…
Your News to Know rounds up the most important stories about precious metals and the overall economy. This week, we’ll cover:
- Texas declares war against the Federal Reserve…
- …could this be the beginning of America’s return to sound money?
- Turkey’s disastrous attempt to control gold buying
- And China’s gold shenanigans are moving from the retail to the state level
TRUTH LIVES on at https://sgtreport.tv/
Texas wants $5 billion bullion buy to launch its own sound money
These days, you just need to point a finger at the Constitution to find an amendment that’s being violated.
It seems more like modern lawmakers and industry moguls see the Constitution as a barrier to progress. Like when the head of National Public Radio said the First Amendment the number one obstacle in battling disinformation:
Those are the times we live in, and the Tenth Amendment isn’t faring any better… If you’re a regular reader, you may even remember this important instruction from the Founding Fathers:
No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.
If the First is a challenge for Katherine Maher, then the Tenth is an enemy long defeated by the Federal Reserve. We have replaced real money with the Fed’s banknotes, violating the Constitution. The bedrock of this nation. You know, that specific rule is in there for a darn good reason, as Dr. Ron Paul reminds us in his essay on America’s first hyperinflation.
Is there any hope for the Tenth Amendment to make a comeback? The answer is Yes – and Texas might be the state to do it.
Opening shots fired in currency civil war?
As noted on a very appropriately named website, Rep. Mark Dorazio’s House Bill 1062, introduced last month, would require the state to buy gold ($4 billion worth) and silver ($1 billion) over the next two years. You know, “dollar-cost averaging.” Just like Birch Gold Group customers, it looks like the state of Texas wants to diversify its savings.
To swap some of their fake money for real money.
I ask, what took them so long?
The days of calling physical precious metals an “optional” investment choice cherished by fringe elements like doomsday preppers and Revolutionary War reenactors are long behind us.
With central banks buying over 1,000 tons of gold a year, it’s clear that the metal is returning to money status. When the dust settles, it appears we will again be left with gold as money and paper as… well, paper.
Mises Institute’s William Greene said that it only takes a few states to start using gold and silver as money to undermine the fiat currency system. The result isn’t a collapse – in fact, it’s the opposite:
“As this happens, 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 people 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.”
Greene describes this as a “reverse Gresham’s Law” effect. Essentially, everyone would prefer to be paid in gold and silver. This insistence on good money over bad money would benefit early adopters and incentivize the use of cold, hard cash once again. An end to economic stagnation and the steady impoverishment of the inflation tax… Sounds great, doesn’t it?
