State of Nevada proposes to coin its own Silver money

[megabear]

http://www.leg.state.nv.us/72nd/bills/ab/ab532.html

 

March 29, 2003

 

AB 532 Nevada Silver Coin Bill

 

AB 532: The U.S. Government has abdicated its responsibility as defined in the Constitution that Congress would issue all money. Instead Congress has unlawfully delegated this power to the private Federal Reserve Bank violating the terms of the Constitution. This failure of Congress absolves Nevada from its constitutional obligations not to issue money.

 

AB 532 Provides that the State of Nevada shall issue into circulation silver coins with a face value of $50,000,000. The coins will contain 1 ounce of silver and have on one side the Great Seal of the State of Nevada and on the other Contains one Troy Ounce of Fine Silver, Nevada Legal Tender, and Twenty Dollars. Nevada will stop minting coins when Congress again provides constitutional money.

 

This is a wonderful bill, which if passed will help Nevada?s economy tremendously and provide non-tax revenue for the State. It will also help to educate many about the unconstitutional debt based federal reserve notes, we call money. See copy of bill below.

 

Hearing: Friday, April 4, upon Adjournment of Assembly Floor Session, about 11:30-noon, Room 3161

 

Contact: Assembly Constitutional Amendments Committee: Chairman Mortenson [email protected] Assemblymen McCleary [email protected] Horne [email protected] Gustavson [email protected] Sherer [email protected]

 

If you call or fax, leave a message for: "All members of the Assembly Constitutional Amendments Committee" (Faxes addressed to the committee will be copied and given to all members.)

 

Phone: Reno 684-6789, Las Vegas 486-2626, Toll-free 1-800-995-9080 Assembly Fax: 775-684-8533.

 

Message: Vote Yes on AB 532?the Nevada Silver Coin Bill

-copy & distribute widely-

2-5 states.

[machinehead]

I wish Nevada all the luck in the world. The state should be aware that the federal enforcers will roll in with the same "[unconstitutional] federal law trumps state law" rhetoric that they used against neighboring Kali's medical marijuana law and Oregon's assisted suicide law.

 

Meanwhile, an Argentine presidential candidate, Nestor Kirchner, is proposing to put the peso back on the gold standard. This will arouse the ire of the international enforcers just as surely as Nevada's action stirs up the Fed crowd.

 

Golden promise

 

In fact, they've already wheeled out an Ivy League professor, David DeRosa of Yale, to start the campaign of slurs against the gold standard. Let's demolish his half-truths, shall we:

 

"This process, called Hume Specie Flow, dictates that gold will flow naturally from a country having higher prices to a country having lower prices. But if only Argentina is on the gold standard, there is no place for the gold to flow."

 

The distinguished professor carelessly omits that specie flow facilitated a system of fixed exchange rates. When you go to floating exchange rates, as Nixon did on 15 Aug 1971, the specie stops flowing. Surely this chalk-stained wretch in the tweed jacket knows that.

 

"True enough, one country could base its currency on the value of gold, which would require that country to operate something like a gold currency board. The government would have to stand ready to exchange gold for pesos and pesos for gold on demand. Hence, it would be left with something very much like the currency board that blew up at the beginning of 2002."

 

Ahem. You are really trying my patience, De Rosa. Argentina ran a dollar-based currency board. At the same time, Argentina was massively indebted in dollars. The currency board failed because of fraud: it embezzled dollars that were supposed to be backing pesos, and used them to pay debt. Hong Kong has run a dollar currency board since 1983, which has been subjected to speculative attack, but did not fail.

 

Secondly, the Argentine economy was heavily dollarized, with dollar-denominated mortgages and bank accounts. This undermined the currency board and set up the banking system for failure when dollar reserves outside the currency board fell short of dollar obligations to depositors.

 

In fact, a gold-backed currency would likely provoke a flood of capital into Argentina ... if investors believed in the gold backing, which is the biggest issue in a deeply dishonest and corrupt political system. (Argentina should license private banks to issue peso notes, as Hong Kong has done.)

 

But it's the prospect of that flood of capital which engages the international system against it. The same envy which fuels tax harmonization (in which "unfairly low" taxes must be raised) fuels the "paper currency harmonization" mentality. No country must gain an "unfair advantage" with money that offers a sound store of value.

 

Prof. DeRosa is typical of the ersatz experts that will be employed to baffle the public with tendentious, out-of-context finance jargon so as to put their finger in the dike of the failing paper money system. But we can all see the wolf legs protruding below his sheep uniform.

[Bird D Durr]

Looking good for my future home state........................

 

-The BirdMan

July 2003 NV Bar Applicant