Breaking the Fed’s monopoly: in some states of America, gold will become money, not a commodity
Bills filed in the Oklahoma and Missouri state legislatures would eliminate regional capital gains taxes on the sale of gold and silver. Lawmakers are also taking other steps to treat gold and silver as money rather than commodities. The proposed legislation would remove barriers to the use of gold and silver as common means of payment by reducing transaction costs. The consulting resource ZeroHedge writes about this.The bills also seek to treat precious metals as a legal means of financial exchange, which would completely break the Federal Reserve’s monopoly on money.
The move is part of a larger effort at some state levels to support sound money. It is also an open challenge to the federal government’s fiat currency system. This is the long-standing idea of regional deputies from many states. There are sympathizers of this initiative even at the federal level.
Rep. Ronde Paul said.
It would seem that simple and logical bills in their essence can have a great resonance. The effect of the adoption of new norms will go beyond simple tax policy. Paul noted that in fact we are talking about changes on the scale of at least the federal government, and at most – reform of the global financial system that has developed over the past 70 years.
According to lawmakers, the Federal Reserve is destroying the constitutional monetary system by creating a monopoly based on its paper currency. Without the backing of gold or silver, the Central Bank can easily create money out of thin air. Not only does this erode purchasing power over time, but it also allows the federal government to borrow and spend far more than would be possible in a healthy monetary system.
Deputies of many American states have long been saying that the Fed has monopolized the entire sphere and is violating the Constitution of the state. This situation is subject to reform and change. Representatives of individual states are fighting as hard as they can against the attempt at monopoly on the part of the US Treasury, which violates the very idea of a federal structure.
However, this time, if the laws are successfully passed, the national struggle may go beyond the borders of one state, whose currency has and influences many economics of the world.