Phoenix,
AZ — The latest massive price increases in cryptocurrencies
like Bitcoin and Ethereum have boosted the credibility of investors who
criticize the fiat currency system. Unfortunately, precious metals haven’t
followed in crypto’s footsteps yet, and heavy losses over
the last few years have led many people to write off the asset class
altogether. Owning things like gold and silver in the United States has either
been outlawed or stigmatized since the Great Depression, but recently, real
progress has been made towards once again recognizing them as legal tender.
In
anticipation of the growing problems with the national debt, individual states across
the country are seizing the opportunity to protect themselves and their
citizens from financial repression. Twenty states have
already eliminated sales taxes on precious metals transactions, but some are
taking it even further. The most recent bill was H.B. 2014 in
Arizona, which classifies U.S.-minted coins as a form of currency and even
eliminates capital gains taxes on qualified precious metals. These kinds of
simple actions directly threaten the power of the U.S. Federal Reserve, and any
competition to the U.S. dollar undermines the central bank’s longstanding
monopoly.
Representatives in Arizona worked on this legislation for years,
and thanks to the support of people like Ron Paul, there was enough pressure on
the governor to sign it into law.
Dr.
Paul explained why this
bill is so crucial for the future:
“HB 2014
is a very important and timely piece of legislation. The Federal Reserve’s
failure to reignite the economy with record-low interest rates since the last
crash is a sign that we may soon see the dollar’s collapse. It is therefore
imperative that the law protect people’s right to use alternatives to what may
soon be virtually worthless Federal Reserve Notes.”
“We ought not to tax money, and that’s a good idea. It makes no
sense to tax money,” Paul told state senators
in March. “Paper is not money, it’s a substitute for money and it’s fraud.”
Utah was
the first to implement this new policy of empowering state governments against
reckless federal incompetence when they passed H.B. 317 in 2011. This bill not only
recognized coins as a form of money and eliminated taxes on them, but it also
encouraged the state to study how it might establish an entirely new system of
legal tender if needed.
Each state that stands up and refuses to be condemned to
bankruptcy by the bloated bureaucrats in D.C. puts additional pressure on this
failing paper Ponzi scheme. Only when enough people recognize the destructive
road we’re heading down and demand a change will the federal government and
banking institutions be forced to adapt. These growing pressures aren’t just
manifesting domestically but can be seen developing around the world.
The
growing uncertainty surrounding America’s future role in the international
arena has inspired nations like China and Russia to establish their own
currency exchanges that bypass the U.S. dollar. Their leadership in the BRICS nations has
put them in an influential position in the developing world. Along with India,
they are among the world’s largest gold buyers and have created reserves that
could serve as a basis for a new reserve currency. This development of a new
trading bloc in the East is being referred to by some as “The New Silk Road.”
Daily
Reckoning analyst Byron King discussed how
turbulent the current circumstances really are:
“Up to
now, there has never been anything approaching a serious challenge to the
global supremacy of the dollar — certainly not in global trade. Yet here we
are, watching Russia and China set up a proto-trading system based on gold. The
daily quote for gold seems not to price in even a hint of this development. Yet
it could have world-altering implications as it all unfolds.”
The current economic realities affecting our quality of life
will continue to force local representatives to take action while Congress
faces gridlock. Without establishing alternative options for communities across
the country, our entire standard of living may fall fully into the hands of the
establishment politicians in Washington DC — more so than it already has.
There is a subtle ongoing realization that no matter what the
pundits and politicians claim, there is no easy way out of this mess. The
public’s confidence in central banking is clearly eroding, and hopefully, it
will be enough to allow a new kind of financial freedom that hasn’t been seen
in the United States’ economic system for over 100 years.
