Rich Danker wrote an interesting article on Forbes Magazine entitled “The Legislative Beginnings Of A Modern Gold Standard” which further advances the theory that you should look to buy gold today before the eventual total collapse of the U.S. dollar. The article goes on to say the following:
“Today there is approximately $20 billion worth of U.S.-minted gold and silver coins in circulation, most of which have been demonetized owing to the 28% tax slapped on them by the IRS. Since the U.S. abandoned the gold standard, they have gone from money to collectibles on par with rugs, stamps, and bottle caps in the eyes of the taxing authority. Because they are undervalued at their face definition and the tax wedge discourages them from being used at their fair market value, the coins are sidelined as “good money” while the U.S. dollar (a worthy foil as “bad money”) reigns supreme.
But times are changing. Start in Sen. DeMint’s home state of South Carolina, where Rep. Mike Pitts introduced H.B. 4128 legislation that makes gold and silver coins legal tender in the state. It drew 13 co-sponsors, including House Majority Leader Kenny Bingham. Senate Banking and Insurance Committee Chairman David Thomas introduced a companion bill. The point is to encourage the use of the coins as money, which is why the bill also eliminates state taxes on them. It derives its legal authority from Article I, Section 10 of the U.S. Constitution, which says no state may “make anything but gold and silver coin a tender in payment of debts.”
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Need more convincing of the need to buy gold today? International investor Jim Rogers at MoneyNews.com expects a third round of quantitative easing by the third quarter of this year. The head of Rogers Holdings expects this will happen “in the fall or early next year,” Rogers told CNBC. “It’s the wrong thing to do but that’s all they [US policymakers] know to do. They are not very smart people so you better own commodities,”
How’s that QE II working for ya? Can anyone in government actually solve the problems with our monetary system? Of course not. You need to gold-up and protect yourself from the crooks we elect.