Beyond Money

Tis article describes a very important turn of events.  I recommend you read it in its entirety – Good As Gold

It is an amazing story about an attempted IRS persecution that seems to have backfired.

Did you know that the United States has two systems of money? We have on the one hand, the Federal Reserve Note debt-money system, and on the other, gold coins that are issued by the U.S. Mint in face value denominations of $5, $10, $25, and $50.

Here’s an excerpt from  the article:

In 1985, Ron Paul and other congressmen challenged our country’s currency system, which was monopolized by Federal Reserve Notes (FRNs) — the familiar greenbacks in American wallets. The congressmen successfully pursued the Gold Bullion Coin Act, which required the U.S. government to mint and place gold coins in denominations of $50, $25, $10 and $5 into circulation based on demand. The coins are made of 91.67 percent pure gold.

The interesting point is that now the dollar has two conflicting definitions, one is really a non-definition – it’s whatever the mismanaged Fed note will buy. The other is a concrete definition based on a specified weight of gold. It is such concrete definitions that central banks and legal tender acts are intended to obliterate. The fact is, that since these coins carry a face value denominated in dollars, they are not mere bullion, but LEGAL TENDER.

The Gold Bullion Coin Act mentioned above provides that, A fifty dollar gold coin that is 32.7 millimeters in diameter, weighs 33.931 grams, and contains one troy ounce of fine gold.  Therefore,  it follows that a dollar is equivalent to one fiftieth of an ounce of fine gold.

If you were to be paid 50 dollars per week in U.S. gold coin that would make your annual income $2,550. The equivalent value in Fed notes at current gold prices would be around $40,000.

The story describes an employer who did just that, he paid his workers in gold coins, which made their earnings fall below the minimum income required to be reported to the IRS for income tax purposes. The IRS brought criminal charges against him and his workers but got not a single conviction.  Read the full story by Mike Zigler in Liberty Watch magazine, here.

This entry was posted on November 8, 2007 at 10:27 am and is filed under The Political Money System. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.