Oklahoma Senate Passes Bill to Authorize Gold and Silver as Legal Tender

[EE_]

I wonder what the 4 senators that voted 'ney' excuse was, for voting against constitutional money?
Their names should be made public so the anti-constitutionalist can be voted out.

Tuesday, March 11, 2014
Oklahoma Senate Passes Bill to Authorize Gold and Silver as Legal Tender

Yesterday, the Oklahoma State Senate passed a bill that would legalize gold and silver as legal tender, moving the legislation on to the House for consideration. The vote was 37-4.

Senate Bill 862 (SB862), was introduced by Sen. Clark Jolley and Rep. Gary Banz, with cosponsorship from Sen. Natham Dahm. It reads, in part:

Gold and silver coins issued by the United States government are legal tender in the State of Oklahoma. No person may compel another person to tender or accept gold or silver coins that are issued by the United States government, except as agreed upon by contract.
If passed into law, Oklahoma would become the second state to recognize gold and silver as legal tender authorized for payments of debts and taxes. Last month, the Arizona senate also passed a similar bill by a vote of 18-12.

Currently all debts and taxes in Oklahoma and the rest of the United States are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.

The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” The Constitutional tender act is a big step towards that constitutional requirement which has been ignored for a long time in every state of the country. Such a tactic would achieve the desired goal of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it� by working to make its functions irrelevant at the State and local level.

Passage of this legislation would introduce currency competition with Federal Reserve Notes. Professor William Greene explains further:

“Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). 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.”

Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state by state level is what will get us there.

Without a single act of Congress, the Federal Reserve system can be brought to its knees by passing such bills in states all over the country.

SB862 will first be assigned to a house committee where it will need to pass by a majority vote before the full house has an opportunity to send the bill to the governor’s desk for a signature.
http://www.activistpost.com/2014/03/oklahoma-senate-passes-bill-to.html

[Uncle Salty]

Sorry, but fiat and digital money are here to stay. Nobody wants to walk around with gold and silver coins to do business.

This is not the solution to the problem.

[iOWNme]

This is not the solution to the problem.

Thats because most people dont know what the problem is.

[StreetsOfGold]

Nobody wants to walk around with gold and silver coins to do business.

Nobody? speak for yourself

[Ares]

Who would spend precious gold or silver when the seller will happily take worthless fiat?

[monty]

Sorry, but fiat and digital money are here to stay. Nobody wants to walk around with gold and silver coins to do business. This is not the solution to the problem.

Oh give me big silver dollar to throw on the bar with a bang.
A dollar all wrinkled and creased will do in the east.
Here in the West we want our money to clang!

Sent from my iPad using Forum Runner

[EE_]

Who would spend precious gold or silver when the seller will happily take worthless fiat?

People that want to go on living when the dollar collapses.
Maybe gold and silver will come in handy to exchange for the new currency?
Maybe the states doing this, know it's coming and feel it's necessary to be ahead it?
Whether it's used now, or later, it's good to have on the books imo.

[Ares]

People that want to go on living when the dollar collapses.
Maybe gold and silver will come in handy to exchange for the new currency?
Maybe the states doing this, know it's coming and feel it's necessary to be ahead it?
Whether it's used now, or later, it's good to have on the books imo.

True, but if the dollar collapses. I'm not thinking there will be many laws on the books that will get followed. Most states will also implode and not have the means of enforcing those laws.

[EE_]

True, but if the dollar collapses. I'm not thinking there will be many laws on the books that will get followed. Most states will also implode and not have the means of enforcing those laws.

Some reasons given in AZ

"People are still buying gold and using it as a commodity and I think they want to use it as actual legal tender instead of the dollar."

The differences between gold as a commodity and gold as legal tender are pronounced.

“I think there’s a different comparison when you trade it as a commodity or when you use it as actual monetary value," he says. A return to the gold standard, he believes, will relieve volatility in the gold market.

The bill will also eliminate a capital gains tax liability associated with an increase in the value of gold. Making gold a legal tender eliminates the commodities tax at a state level.

The bill doesn’t force any constituent to use or accept gold as currency and because of problems with the local revenue department, residents of Arizona won’t be able to pay their taxes in bullion. In fact, the bill seems more symbolic than anything-- an exercise of a constitutional right.

This bill will prove to be a safe haven for the state of Arizona when hyperinflation sets in

Arizona Democrats largely opposed the bill arguing that there was no need for this legislation and no way for it to be properly implemented.

http://finance.yahoo.com/blogs/daily-ticker/arizona-becomes-second-state-approve-gold-silver-legal-131138074.html

[madfranks]

“Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). 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.”

No offense, but this belief in an anti-Greasham's law shows extreme ignorance of economics. As long as fiat is legal tender, people will spend it instead of precious metals. During the late 60's silver coins and clad coins circulated together, and people naturally picked out the silver to keep, and the clad to spend. Believing that people will pick out the clad to keep and spend the silver is 100% opposite of human nature.

If AZ wants gold and silver to be money again, they need to pass a law nullifying fiat legal tender laws. Once the fiat declines to it's natural value of 0, people will then use other types of money, including gold and silver, for commerce.

[Horn]

Who would spend precious gold or silver when the seller will happily take worthless fiat?

The Queen should be getting ready to launch her new E-currency Gold certificates.

the people want something that won't lose 50% of its value in a trading session, or good legal tender.

For when the bad dollar is in its demise, Gersham's law takes into account that people will spend what they've got and when the dollar is kaput they will have the Queen's E-currency gold crypto-certificates.

[EE_]

No offense, but this belief in an anti-Greasham's law shows extreme ignorance of economics. As long as fiat is legal tender, people will spend it instead of precious metals. During the late 60's silver coins and clad coins circulated together, and people naturally picked out the silver to keep, and the clad to spend. Believing that people will pick out the clad to keep and spend the silver is 100% opposite of human nature.

If AZ wants gold and silver to be money again, they need to pass a law nullifying fiat legal tender laws. Once the fiat declines to it's natural value of 0, people will then use other types of money, including gold and silver, for commerce.

These states are offering a way to protect your money and to make gold and silver legal money again...not a commodity that can be taxed for capital gains.

In the case of Utah, they have, or are going to have a gold and silver depository where you can store your money. They will issue a debit card you can use to draw off your PM's if needed.

Fiat has it's use as a medium as exchange and that is what it should be used for.

If people started storing all their wealth in PM's in the depository, or at home, only exchanging it for fiat when needed...this is what they mean by "it will drive out the bad money" and force the fed to stop printing at will. You will only hold only enough fiat as minimally needed.

Unlike bitcoin you will have protection that your money will be safely returned to you.

Bitcoin will never be money as long as it is not regulated...it is only a payment system that is priced in dollars. When the dollar gets devalued or collapses, bitcoin will go with it.

I would still like to see a gold/silver infused currency.

[mick silver]

silly people gold an silver not money

[osoab]

These states are offering a way to protect your money and to make gold and silver legal money again...not a commodity that can be taxed for capital gains.

In the case of Utah, they have, or are going to have a gold and silver depository where you can store your money. They will issue a debit card you can use to draw off your PM's if needed.

Fiat has it's use as a medium as exchange and that is what it should be used for.

If people started storing all their wealth in PM's in the depository, or at home, only exchanging it for fiat when needed...this is what they mean by "it will drive out the bad money" and force the fed to stop printing at will. You will only hold only enough fiat as minimally needed.

Unlike bitcoin you will have protection that your money will be safely returned to you.

Bitcoin will never be money as long as it is not regulated...it is only a payment system that is priced in dollars. When the dollar gets devalued or collapses, bitcoin will go with it.

I would still like to see a gold/silver infused currency.

They want you to pay your taxes in Au and Ag. It's a win for them ultimately. That is the only reason behind these laws. It also gets a sector of the voting block all hot and bothered prior to election season. :o

[EE_]

They want you to pay your taxes in Au and Ag. It's a win for them ultimately. That is the only reason behind these laws. It also gets a sector of the voting block all hot and bothered prior to election season. :o

They'd have to get up pretty early in the morning to pull one over on ol' osoab.

[singular_me]

If I am reading well it is not a done deal yet... ???




SB862 will first be assigned to a house committee where it will need to pass by a majority vote before the full house has an opportunity to send the bill to the governor’s desk for a signature.
http://www.activistpost.com/2014/03/oklahoma-senate-passes-bill-to.html

[EE_]

If I am reading well it is not a done deal yet... ???

Utah is the first state where it's signed into law. People in Utah can now trade gold and silver for goods and services without worry of capitol gains taxes even if prices rise dramatically. Gold/silver is money in Utah!

AZ is getting close to being the second state to sign.

[singular_me]

okay, I may have scanned too quickly the article... that good news, looks like the mormon state is ahead of the wave

[singular_me]

edit: lets not be too excited, up to 10% only

Public finance; relating to investment of funds by the State Treasurer; authorizing to invest monies in gold and silver; total value restrictions; effective date; emergency.

click on bill summary
http://www.oklegislature.gov/BillInfo.aspx?Bill=HB1796

[mick silver]

silly people gold an silver NOT money . the gov told me so