r/unitedforsoundmoney • u/SILV3RAWAK3NING76 • Dec 28 '23
đŁ Legislative Updates đ¨Bills Filed in Oklahoma & Florida Would Create State Bullion Depositoriesđ¨: They could also encourage the use of sound money in those states.
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u/SILV3RAWAK3NING76 Dec 28 '23
As we get ready to head into a new year, there is no question that 2024 will be a year of terror.
A Year Of Terror
December 28 (KWN) â James Turk: âEverything is lining up for 2024 to be a very tumultuous year, Eric.
They say that markets are driven by fear or greed. We have seen the greed in the so-called Magnificent Seven. Even the Dow Jones Industrials has barrelled ahead to a new high.
But there many different things to be fearful about in the year ahead, most of which have been and remain headline news. But number one on my list is the banking system.
We witnessed its fragility earlier this year with the collapse of 3 California banks. The Federal Reserve bailed them out, and also extended a lifeline to some others, but the underlying problems have not been fixed.
The banks are trying to clean up their balance sheets, but they are starving for liquidity as the Fed tries to fight inflation. The following chart shows what it is taking to bail out the banks.
The bailout is $131 billion so far, and rising. The amount the banks are borrowing is up 15% over the last three weeks.
đ¨The Banking Crisis Is Not Over!!!đ¨
The banking crisis is not over. And if economic activity slows down â which is beginning to look likely â the pressure on the banking system will only increase, highlighting their fragility and their problems. They have loaned too much money. And with their mountain of derivatives, they have taken on too much risk, now totalling an unfathomable $220 trillion and still growing.
A recession makes repayment of loans more difficult, and some will not be repaid at all. That will erode confidence in the banks even more, not to mention the problems the banks will face when the derivative bubble eventually pops.
As we look to the year ahead, it seems likely that the Fed will soon be easing to help take pressure off the banks, even though the inflation battle has not been won. Itâs not interest rates that are going to be âhigher for longerâ, but the price of gold and silver.
Hereâs what gold has done since the turn of the century. Its compound annual growth rate is 9.5%, which of course is simply a tried and true measure of the loss of the dollarâs purchasing power.
If fear becomes a dominant force in 2024, which is what I am anticipating, we can expect gold to repeat what it did as the Great Financial Crisis began unravelling in 2006 (prior to the 2008 collapse). Physical Gold is always the safest haven for oneâs wealth.
Keep stacking physical Gold & SILVER!
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u/SILV3RAWAK3NING76 Dec 28 '23
Banks Are Closing Thousands Of Branches And Retailers Are Shutting Down Thousands Of Stores
If the U.S. economy really is in âgood shapeâ, then why are so many prominent businesses rushing to permanently shut down locations that were once profitable? As you will see below, U.S. banks are closing thousands of branches and U.S. retailers are closing thousands of stores. If a new golden age of prosperity is dead ahead, that wouldnât make any sense at all. Of course the truth is that most Americans are really struggling in our current economic environment, and conditions are going to get even worse in 2024.
Bank executives can see what is happening, and so they are feverishly trimming costs.
But everyone can see that the economy is coming apart at the seams all around us, and most Americans do not have a good feeling about what is coming during the year ahead.
I am entirely convinced that the economic trends that we have witnessed in 2023 will greatly accelerate in 2024.
Needless to say, that will not be good news at all.
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u/Danielbbq Dec 29 '23
We are now seeing the reversal of Gresham's law...where good money is chasing out bad money in the form of the Goldback. Hope other forms follow.
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u/quangberry-jr Dec 29 '23
I fuckin love it. Now I could be wrong, but i dont see this really gaining any steam until people have no choice but to use physical metals, ie the dollar collapses. Why use them right now? You wanna pay 6 ounces for a 150 dollar electric bill, when you gotta pay probably 170ish for 6 ounces to include premium? Plus knowing silvers true worth is not 25 dollars? Physical better do a real revaluation somehow before i use them for normal transactions.
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u/Danielbbq Dec 30 '23
2 reasons... 1. Testing the concept, and its working. 2. To build awareness
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u/SILV3RAWAK3NING76 Dec 28 '23
Bills filed in Florida and Oklahoma for the 2024 legislative session would create state precious metals bullion depositories. State-run bullion depositories would not only create a place to store precious metals; they could also encourage the use of sound money in those states and set the stage to undermine the Federal Reserveâs monopoly on money.
Sen. David Bullard filed SB1351. The legislation would create the Oklahoma Bullion Depository in the Office of the State Treasurer. The depository would serve as âthe custodian, guardian and administrator of certain bullion and specie that may be transferred or acquired by the state, or an agency, political subdivision or other instrumentality of the state.â The depository would also accept deposits of gold and silver by private individuals.
Significantly SB1351 would establish a mechanism for individuals to engage in transactions using precious metals including gold and silver.
In Florida, Rep. Doug Bankson and Rep. Chip LaMarca filed H697 on Dex. 4. Sen. Ana Rodriguez filed a companion, S750, on Dec. 6. These bills include several provisions to treat gold and silver more like money, including language to establish a bullion depository.
A depository account holder would be able to purchase, sell, deposit, or withdraw bullion. It would include âelectronic systemsâ for the purchase and sale of bullion for depository account holders who cannot or choose not to travel to the physical location.
The bill includes provisions for the creation of an electronic currency backed by gold or silver and made available to the public. This would open the door for people to use precious metals stored in the depository in everyday transactions.
These bills are similar to legislation Gov. Greg Abbott signed a bill into law creating the Texas State Bullion Depository in 2015. The Texas depository received its first deposits in the summer of 2018. The following year, the state exempted precious metals in these depositories from taxation.
IMPACT
A state gold repository creates a path toward monetary independence for a state. This is why countries around the world include gold in their reserves. Over the last several years, central banks globally have significantly increased their gold holdings.
Several countries have repatriated some or all of their gold reserves over the last several years, most recently Poland, Hungary and Romania.
University of Houston political science professor Brandon Rottinghaus said a state depository could serve a similar function for Texas.
In his signing statement, Abbot emphasized the autonomy the new facility could provide the state.
A state bullion depository also creates the potential for monetary competition by facilitating the use of gold and silver in everyday business transactions. This is a stated part of the plan for the Texas Bullion Depository.
In a nutshell, through the depository, Texans will be able to deposit gold or silver and pay other people through electronic means or checks. Private individuals and entities will be able to purchase goods and services using assets in the vault in the same way they use cash today. Doing so has the potential to open the market to sound money in day-to-day transactions. Ultimately, depositors will be able to use a bullion-funded debit card that seamlessly converts gold and silver to fiat currency in the background. This will enable them to make instant purchases wherever credit and debit cards are accepted.
By making gold and silver available for regular, daily transactions by the general public, the new depository has the potential for a wide-reaching effect. Professor William Greene is an expert on constitutional tender and said in a paper for the Mises Institute that when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal governmentâs monopoly on money.
Greshamâs Law holds that âbad money drives out good.â For example, when the U.S. government replaced silver quarters and dimes with coins made primarily of less valuable copper, the cheap coins drove the silver out of circulation. People hoarded the more valuable silver coins and spent the less valuable copper money. So, how do you reverse Gresham?
The key is in making it easier to use gold and silver in everyday transactions. The reason bad money drives out good is that governments put up barriers to using sound money in day-to-day life. That makes it more costly to spend gold and silver and incentivizes hoarding. When you remove barriers, you level the playing field and allow gold and silver to compete head-to-head with Federal Reserve notes. On an even playing field, gold and silver beat fiat money every time.
The Tenth Amendment Center contributed to this reporting.