Trump has many times dropped comments in favor of gold money. He has said that he thinks it would be hard to do.
Does Trump realize that gold money is essential for ending the trade imbalance he worries so much about? Does he realize that gold money is essential for limiting the debt? Does he understand that gold money is needed to limit the empire and make America great again?
Gold money does not mean that the U.S. Treasury supplies gold money, and that’s not what the Constitution requires or allows. Minting coins from metals brought to the mint is not supplying gold money; it is coining already existing supply. Gold money doesn’t mean that gold is kept at some arbitrary price in terms of dollars by government.
The threat of secession of individual states is a check on the federal government. Secession can’t become politically viable, however, if the people’s wealth is in dollars. That’s because the federal government can isolate a state with sanctions and cut it off from the banking system. A breakaway state and coalition of seceding states need an up-and-running currency and clearing system that maintains the wealth of its population when it secedes. Gold money can serve that purpose.
To introduce gold (and silver) into competition with the existing paper money is not that difficult if one thing is done. The first step was already taken when Gerald Ford allowed gold to be traded by the people. One big obstacle remains, which is that gold transactions are taxed. Gold is regarded by the IRS as a collectible. It’s subject to a capital gains tax of 28%. It can never become money under such a condition. (There may also be state sales taxes.) The difficult thing that needs to be done is to repeal this edict. Congress has to do that.
Legislation to change this situation has been introduced in Congress on September 7, 2018:
“The battle to end taxation of constitutional money has reached the federal level as U.S. Representative Alex Mooney (R-WV) today introduced sound money legislation to remove all federal income taxation from gold and silver coins and bullion.
“The Monetary Metals Tax Neutrality Act – backed by the Sound Money Defense League, Money Metals Exchange, and free-market activists – would clarify that the sale or exchange of precious metals bullion and coins are not to be included in capital gains, losses, or any other type of federal income calculation.”
The bill has only one co-sponsor at this time. If, by some miracle, this passes, it will be a game-changer. Alternative money systems would rapidly arise. A gold debit card system would be one of them.
Donald Trump should support this legislation. The howls of dismay and anguish from the empire establishment will be incredible if he does. They will recognize that this is a golden bullet directed at their heart. The criticism of Trump will greatly add to his troubles. Meanwhile, you can tell who your monetary friends are and who are for big government and empire by who signs on to this legislation and who does not. Most have not and will not.
2:18 pm on December 27, 2018
