by Joseph P. Farrell, Giza Death Star:
If you’re a regular reader of this website, you already know that one of the stories we’ve been tracking over the past few years is the growing movement among the several states to push back against the vipers’ nest in Swampington DC which has in recent years become nothing more than the local center of a vast family grift and influence pedaling operation. This push back is coming increasingly in many forms, including the recent nullification laws passed in various state legislatures. But the movement which has most captured our attention on this website is the growing movement among states to pass resolutions recognizing “constitutional money” as legitimate and legal tender, i.e., to recognize bullion as a form of money.
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This movement then grew to a movement – begun by Texas – to start state bullion depositories, a movement which has spread to Utah, Tennessee, and now, for another attempt, to Oklahoma(many thanks to all of you who shared this story):
While I see some dangers to this movement (we’ll return to those in a moment), for the most part I’ve tended to view these moves as the real and inevitable signs of the eventual decline and fall of the American/Swamington empire, i.e., of a central bank warfare-welfare model that the citizens of the country have been coerced into maintaining, but which they do not want. That empire is indeed crumbling, for its backing was effectively the US military, which now has a long and proven track record of not being able to win a war. Indeed, if one goes back in history, the only war which the US military has been able to clearly and unequivocally win was the Spanish-American War. World War One? Nope: we had considerable help from Russia, France, Italy, Japan, and the United Kingdom. World War Two? Nope: same story, sans Italy and Japan. Korea? That could hardly be called a win. Vietnam? We all know – and some of us remember – how that ended, with US helicopters fleeing from the rooftop of the embassy in Saigon. Desert Storm or Iraq I? Well, military one could argue that it was a success against a second-rate regional power, but a failure in that there was little change. Afghanistan? That was nothing but Saigon, version 2.0. Prior to the Spanish American War, the only other clear victory was the Union, and in that case, the US was largely fighting itself, and in the form of a vastly outnumbered and outproduced enemy (the Confederacy).
In short, if the backing of a financial system is a military that cannot win anything with a proven record of not being able to do so , the financial system is not long for the world, and the states are taking the practical steps to realize that fact, and preserve their sovereignty. State bullion depositories, in the eventuality that states have to issue their own currencies to maintain economic and financial activity, would be able to function as clearing houses between states, and eventually be able to give rise not just to local currencies, but regional ones with clearing arrangements.
But before we return to the dangers, consider now the implications of the following story (again, courtesy of many of you) from the state of Wyoming:
Wyoming Senate Votes to Hold, Invest, and Receive Tax Payments in Gold and Silver
In other words, Wyoming, if the bill passes, would become the first state to accept actual specie in formal payment of state taxes. This would require, of course, its own bullion depository, but also a mechanism to determine how the value of such bullion is measured at the time of payment; in this respect, notice what the bill states:
In specific terms, the bill requires the Wyoming treasurer to implement the Wyoming Legal Tender Act by:
(i) Authorizing the use of specie and specie legal tender for the payment of mineral taxes, subject to authentication procedures as determined by the state treasurer that are consistent with precious metals industry standards;
(ii) Determining, maintaining and publishing market-based exchange rates between specie, specie legal tender and other legal tender currencies on a real‑time basis on the website of the state treasurer for the purpose of calculating tax payments to or from the state.
(iii) Exchanging specie and specie legal tender for other legal tender currencies;
(iv) Holding specie and specie legal tender;
(v) If market conditions warrant, investing in precious metal leases or bonds payable in precious metals. (Italicized emphasis added)
It’s the second and last of these provisions that interest me, and set off mild alarm bells, for if you’ve also been tracking the “bearer bonds scandals” with me, you’ll be aware that there is (1)a vast and hidden bond market based on (2)manipulated data concerning the amount of bullion (and particularly gold bullion) in the word, which in turn allows for (3) the existence of a paper securities market based on manipulated bullion figures. The way around this difficulty is shown by point four in the bill: actual physical possession of the bullion and/or specie, and the basing of any bonds upon that actual physical posession.
