From Stark
Via email, State Rep. Jason Overstreet has provided some additional information on the Gold and Silver Legal Tender Act that he is sponsoring in this session of the State Legislature.
Here is Overstreet’s email:
“The Gold and Silver Legal Tender Act was proposed to give citizens of the state of Washington access, if they so choose, to sound money in accordance with the U.S. Constitution’s Article I, Section 10. Section I of the Act states that “The legislature intends to provide a choice…and does not intend to compel a person to tender or accept gold or silver.” Section 5 also states that “The use of gold and silver is strictly voluntary…”.
“The Act recognizes Federal, domestic and foreign specie gold and silver coin, the fair market value of which is to be established using “the common standard of the dollar as provided for in the U.S. Constitution.” The Coinage Act of 1792 defined the dollar as 371.25 grains (troy) for fine silver. “The state treasurer must post daily the value of fine silver and the proration to gold per the average closing prices…”.
“To speak to your question: “Does the Act propose that the state mint its own gold and silver coins?” The Act does not propose that the state would mint its own gold and silver coins, rather that it “…provide its citizens with gold and silver coins as an alternative currency.” An amendment has been prepared to clarify that the Act would “allow its citizens to use” gold and silver coins.
“Most people know intuitively that their purchasing power is diminishing, but don’t know why. With our fiat paper Federal Reserve note currency, every time the Federal Reserve prints another note, the value of existing notes is debased, ultimately driving prices higher and higher. Past Federal Reserve Chairman Alan Greenspan understood well the implications and reasoning behind leaving the gold standard, writing an amazing primer on why governments choose to leave the gold standard. The work is titled: “Gold and Economic Prosperity”.
“George Washington said it best: ‘Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.’”
End Overstreet email.
Apparently the law is being amended to change that language about “providing” citizens with coins. I’m still not 100 percent clear on that, and I’ve asked Overstreet for further clarification if possible.
George Washington never had direct deposit either.
“Most people know intuitively that their purchasing power is diminishing, but don’t know why.”
Opines Overstreet.
So it’s your job to make-up stuff based upon your GOP talking points?
It’s not commodity and energy speculation
or outsourcing American labor
or the Republican demonization of unions and Marxist Plots.
It’s that we don’t pay proper tribute to Gold!
This effort,
as has all your other time wasters,
will go nowhere and remains a silly pose you take to pander to your right-wing brethren
by telling them what they want to hear.
It appears this will be adding a cost to state government, “The state treasurer must post daily the value of fine silver and the proration to gold per the average closing prices…” and “…provide its citizens with gold and silver coins as an alternative currency.” There was no fiscal note with this bill. Overstreet and his gold nut buddies did not bother to get a cost estimate prepared like virtually any bill that will require additional state resources to enact.
I would suggest a pilot project. Pay the bill supporters with gold coins from some country and deduct what ever the effort costs from their gold coin value before they are paid. After two years have them report how well the system works.
Here’s what I don’t get: What’s stopping me from going off the financial grid right now and converting most of my personal wealth into gold? I could keep some fiat money on hand to cover daily living expenses–a credit or debit card and an online bank account are a lot simpler and safer way to handle routine tranasactions than, for example, taking a pinch of gold dust down to the PSE office to pay my electric bill.
I am just disappointed that Rep. Overstreet is choosing to waste his time representing us on gold coins, rather than securing jobs for our community, protecting our drinking water or ensuring the future of our education system. Talk about the wrong priorities.
John,
Perhaps the only thing stopping you from converting your personal wealth into gold is your understanding that financial diversification has proven to be an effective way to accumulate and protect wealth. You may intrinsically understand the risk inherent in putting your eggs in one basket.
That being said, there are many ways to invest in gold besides actually owning the metal itself. There are at least 15 gold ETFs (Exchange Traded Funds) you can invest in and countless mutual funds. These funds eliminate the need to store, protect, and insure the gold against theft, and they easier to convert to cash when needed.
I do know about that stuff, and also about the benefits of diversification.
A laser like focus on what really matters. That is what Rep. Overstreet brings to the job!
It seems like we’ve been here before…
The bill Overstreet is sponsoring seem to parrot Ron Paul.
From ronpaul.com “… Ron Paul believes that the first step towards monetary freedom is to allow open competition in currencies. Once gold and silver are allowed as legal tender and can be sold without sales tax, everyone can use them to store their wealth and to pay for the things they want to buy.”
However, it seem that Ron Paul’s plan to return to the gold standard has more to do with personal enrichment than with sound money: Where Is Ron Paul’s Gold?
Maybe there should be more focus on this: http://makupfront.tumblr.com/post/16795579657/washington-state-downgraded-by-moodys
“….history reminds us that the citizens of the United States have been subjected to repeated inflations and debasements, most often in the cause of war but also to the benefit of Wall Street. Today, we again we find ourselves burdened with war debts and Wall Street bailouts. As Santayana said, “those who cannot learn from history are doomed to repeat it.” If we are to avoid future debasements, and perhaps even wars and financial bailouts, an understanding of our monetary history is essential….
Paul and Lehrman remind us that the ultimate purpose of a monetary standard is not price stability, but “trust and honesty.” A gold standard is an avenue, among others, to restore our trust in government, by appropriately constraining the discretionary power of government. In an era when five unelected bureaucrats on the Federal Reserve Board can spend over $2 trillion, and deny the rights of the people and their representatives to audit such spending, we know we are again in a time where “trust and honesty” in government is in short supply….
http://www.cato.org/case-for-gold/
AFY!!theheelotsheepdog!!!
Dan if the state wants to know what the value of gold or silver is every day they could subscribe to services like the dailey pfenning:
Currencies today 1/30/12… American Style: A$ $1.0560, kiwi .8190, C$ .9955, euro 1.3120, sterling 1.57, Swiss $1.0890, … European Style: rand 7.8380, krone 5.85, SEK 6.7825, forint 225.25, zloty 3.2390, koruna 19.2425, RUB 30.41, yen 76.65, sing 1.26, HKD 7.7577, INR 49.79, China 6.33, pesos 13, BRL 1.7475, Dollar Index 79.24, Oil $99, 10-year 1.86%, Silver $33.22, and Gold… $1,722.40
http://www.dailypfennig.com/
BTW Dan the cost is free, and reading it would be very educational for everyone, even you!
AFY!!theheelotsheepdog!!!
Folks, you cannot deny that for thousands of years gold has been recognized as the basis of wealth for practically all civilizations on earth (all those that had access to gold welcomed its value in trade).
Rep. Overstreet is right on on this issue.
AFY is also right. Hats off to him. I too recommend reading “the Case for Gold” for more insight into this issue.
For those willing to invest a little bit of their time (it is not a large book) it addresses many of the concerns voiced here by those critical of this legislation.