Virginia is investigating a state level metals backed currency

In the past I’ve reported on activities like Utah declaring gold and silver legal tender as well as commodities exchanges taking gold as collateral for trades.  The reason I deemed these things important is that they are first steps in my long standing prediction that the global fiat currency system will eventually be understood to be a corrupt, fraudulent mania which will, by definition, collapse at some point.  The only thing that can possibly replace it is some gold standard.  It is the only thing that the patsies will trust once they realize they’ve gotten ripped off by the system they once believed in.

Today I want to call your attention to new talks among Virginia lawmakers.  Here is the first paragraph from this link:

“It’s starting to look like Virginia could yet emerge in a leading role among the states in respect of monetary reform. The lower chamber of its general assembly has passed a bill to underwrite a study of the feasibility of a monetary unit based on a metallic standard. It is one of a number of states that are reaching deep into the Constitution of the United States to protect themselves in an era when the value of the dollars issued by the federal government is collapsing.”

What’s important here is that the focus of this early effort goes way beyond the fairly easy goal of giving gold and silver monetary status.  When Utah passed their recent law re-monifying gold and silver, it basically had 2 implications:

1.       You don’t pay sales tax converting cash into these metals any more than you pay sales tax if you ask someone to break a $20 bill and get two fives and a ten.  Gold and silver are no longer “purchased” there.  You can simply exchange your stored value between gold, silver and paper money without generating a taxable sales event.

2.       There is no more state level capital gains tax on gold and silver in Utah.  You can now store your retirement savings in real money during your working life and then have no state "capital gains" tax bill when you convert it into paper money in order to buy food and pay rent in retirement.

The federal government has been silent on that matter to date, probably because they did not see physical gold money as being competition for the fiat currency that it controls.  Why?  Because few people in this day and age want to buy and sell stuff using heavy, bulky gold and silver coins.  They want to do it electronically and for that it requires some sort of paper currency that can ultimately be expressed digitally.  Physical gold and silver can never do that, thus no perceived threat to the con men in the federal government.  It would only do their cause more harm than good to go after Utah about it at this point.

But Virginia isn’t talking about making gold and silver coins legal tender.  They are talking about creating gold backed paper money, a “monetary unit based on a metallic standard”.  They are talking about creating state sponsored money.  Once you have a legal currency that is backed by a verifiable quantity of metal, all bets are off for the federal fiat currency system.    If people start using other, honest money, how can federal taxes be collected??  How can retirement savings be stolen by inflation and then used to fund the military industrial complex, black projects, trillions of dollars going down rat holes never to be seen again, etc.?

The federal government will lose power because the power it has is 100% given by its control of the money supply.  Take that away and people will not fear it.  Take that away and it will no longer be able to print money in order to pay its bills, including the service on its debts.  If people start using other money, they will feel very disconnected from the federal government and everything the feds say will be mocked.  Unjust federal laws will be ignored within such states.

This is a major, major big deal.  If Virginia makes this a law, other states will follow and and  In short, it will risk collapse of our country as we know it.  It could be the basis of de-unification of these United States.  It could be the seeds of civil war.  It’s really up to the feds on whether they think they can use physical force to keep people within the confines of the corrupt monetary system which is, economically speaking, a mechanism for the theft of stored labor via inflation.  Another word for stealing someone’s labor is “slavery”.

This may sound like extreme talk but please note, these are the same things I have been writing about for years.  I’m not changing my tune to match the facts.  The truth is simply emerging from the ongoing collapse of a fraudulent monetary system that had everyone mesmerized until now.  The people are awakening and they are acting.   

I say again, long term savings should be kept only in gold and silver metals.  Get there over time but do get there.  Average your way in over time so that volatility does not sway your worldview.