Just Jotting Down Things...: UTAH, Legalize Gold and Silver Coins As Currency!

Jun 3, 2011

UTAH, Legalize Gold and Silver Coins As Currency!

Talk about "Power of the People." Bravo Utah!

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"Bad News For The Fed and IRS"
(Online Exclusive Update #88)

This month, Utah became the first state in the country to legalize gold and silver coins as currency.

So what does this mean to you, me, the Fed, IRS, and the world? To understand the significance of Utah’s actions, you need to understand the definition of the word “currency.”

As strange as it may seem, governments determine what they think money is. For most of us, money or currency is the paper in our wallets. It only has value because governments have the power to declare paper to be money.
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The reason Utah’s actions are significant is because Utah is taking on the Federal Reserve Bank, IRS, and Washington, D.C.

The Utah state government is bypassing the Fed and the Treasury by accepting gold and silver as money, for example, allowing taxpayers to pay their taxes in gold and silver.

Let me explain further. Let’s say I bought gold in the year 2000 for $300 an ounce. In 2011, with gold at $1500 an ounce, if gold is now treated as money instead of being treated as an investment, I do not have to pay that 28% capital gains tax to the US Treasury.

In this example, of $300 per ounce to $1500 per ounce, a gain of $1200, I do not need to pay 28% of $1200, or $336 per ounce, in taxes to the US Treasury. On 1000 ounces, using the same buy and sell numbers, that is a savings of $336,000 in taxes, or $336,000 staying in my pocket for me to use. Thank you Utah. Tom Wheelwright adds that the change by Utah does not mean that gold will now be treated as money by the Federal government. It should mean that Utah will not tax it when used as money. It will be years before the courts decide whether this change means a change in how gold and silver are taxed.

Not only does this challenge the Fed, IRS, and the US government, it makes gold and silver more valuable. Using gold and silver as money, rather than a taxable investment like stocks, bonds, and real estate, makes gold and silver more desirable, at least in Utah.

One reason there is such a high tax, 28% on gold and silver is simply because the Fed and the tax department do not want us to hold gold and silver. By holding gold and silver, we pull their phony dollars out circulation and mock their corrupt system of counterfeit money.

Utah is truly a story of David taking on Goliath. Minnesota followed Utah later this month, taking a step closer to make gold and silver legal money. North Carolina, Idaho, and at least nine other states have similar bills being drafted. A Republican lawmaker has introduced a bill in Congress to explore the option for the entire US.

If the 28% tax on gold and silver is repealed, you may see a massive rush to own more gold and silver. Repealing the 28% tax is like a 28% increase in value. More importantly, it means 28% more money for those who have been following COR.

In many ways, history is only repeating itself. After all, gold and silver, especially silver, has been real money for thousands of years.

Thank you for supporting COR.

Robert Kiyosaki

PS: I thank the people and state of Utah for taking the first step to dismantle the conspiracy of the rich. This is big.