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View Full Version : New Arizona Law Moves State One Step Closer to Sound Money




Swordsmyth
08-05-2018, 08:37 PM
As of midnight on August 3, a new law went into effect in Arizona that that the state another leap forward toward recognizing gold and silver as money. The new statute does not replace the Federal Reserve notes, but it does put gold and silver on equal footing.

Introduced as House Bill 2013, the measure redefines the terms “legal tender” and “liquid capital” so as to allow trust companies in the Grand Canyon State to use either in calculating liquid capital.

Put simply, for trust companies in Arizona, liquid capital is defined now as “legal tender,” and “legal tender” is defined now as “a medium of exchange, including specie…for the payment of debt, public charges, taxes and dues.”

This is great news for trust companies in Arizona as state law requires that they maintain at least $500,000 in liquid capital in order to operate. As of August 3, those companies may now include gold and silver in their calculations of liquid capital.

The bill’s sponsor was Arizona state representative March Finchem of Tucson. Representative Finchem describes himself as a “constitutionalist,” and as “a man dedicated to serving God first, then the rights of man.”

Finchem seems to merit the moniker “constitutionalist” as the biography on his website notes that his favorite U.S. Supreme Court opinion is Norton v. Shelby Co. wherein the court declared, “An unconstitutional act is not law; it confers no rights; it imposes no duties; affords no protection; it creates no office; it is in legal contemplation, as inoperative as though it had never been passed.”

That’s a rare realization among lawmakers, state and federal. Finchem is to be complimented on his understanding of federalism and the Tenth Amendment.

Of his legislation, Finchem remarked:


This would fortify the capital asset reserve of trust companies in Arizona. Since the FDIC only insures up to $250,000 of personal deposits in an FDIC insured bank, and they can take up to 99 years to pay a claim under federal law, this move permits investors in trust companies to place hard assets on deposit as ready, liquid capital reserve without converting the real money to fiat currency and then digital currency as in a deposit in the ACH system.


Admittedly, HB 2013 does not replace the Federal Reserve notes and it does not properly place gold and silver in their constitutionally mandated position as the sole form of legal tender that the states may accept.


As stated above, a key provision of the bill redefines legal tender as “a medium of exchange, including specie… for the payment of debts, public charges, taxes and dues.”
That such a statement should be necessary is likewise ridiculous. Read another way, this part of the legislation is legalizing the Constitution in the state of Arizona!
Article 1, Section 10 of the U.S. Constitution very clearly mandates that, “No State shall ... make any Thing but gold and silver Coin a Tender in Payment of Debts.”

More at: https://www.thenewamerican.com/economy/commentary/item/29711-new-arizona-law-moves-state-one-step-closer-to-sound-money

Finchem needs to run for higher office.

goldenequity
08-06-2018, 07:21 AM
You must spread some Reputation around before giving it to Swordsmyth again.

oyarde
08-06-2018, 03:41 PM
One day everyone will be using my money .

Zippyjuan
08-06-2018, 03:55 PM
From what I read here, http://arizonasonoranewsservice.com/a-new-bill-could-pave-the-way-to-gold/
all it does is remove any state capital gains taxes on sales of gold and silver.


It focuses more on the taxation of the gold and silver and less on the actual usage of gold and silver at your neighborhood market.

“This is merely removing a wrongly attached capital gain tax,” Doug Ardt, a vocal member of Arizona constitutional advocates who manages the website Arizona Sound Money Act, said. “The state isn’t ready for it. Because speaking the language of liberty is a foreign language for most citizens.”

House Bill 2014, introduced by Rep. Mark Finchem, R-Casa Grande, allows a tax deduction for the capital gains received from the exchange of one kind of legal tender, like paper money, for another, like gold coins. Today, if you own a $5 gold coin, it is worth exactly that – five dollars. And if you try to sell your gold coin (today, a gram of gold is about $39.75) your profit would be taxed. HB2014 removes that tax, which proponents say is the first step to legitimizing gold and silver as legal tender.

Finchem’s bill works to redefines legal tender as a “medium of exchange that is authorized by the U.S. Constitution or Congress for the payment of debts, public charges, taxes and dues.”

Of course if you are trading one form of legal tender for another, that would mean selling your $5 gold piece for $5 (which is its legal tender value) and not having to pay capital gains on that $5. If you sell the coin at its metal content value, you are no longer trading legal tender for legal tender but a commodity for legal tender.

Swordsmyth
08-06-2018, 06:41 PM
One day everyone will be using my money .

How much interest will you charge?