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Mix-Ansicht- Nevada Silver Coin Bill: Sound Sentiment But Bad Judgment - Bankrunner, 06.05.2003, 10:04
Nevada Silver Coin Bill: Sound Sentiment But Bad Judgment
-->Nevada Silver Coin Bill
Sound Sentiment But Bad Judgment
by Franklin Sanders, Mar 25/03
But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. --Frederic Bastiat
Several people have e-mailed me copies of bill AB 532 introduced into the Nevada legislature. The bill would require the state of Nevada to issue silver coins with a face value of US$50 million. Each coin would contain one ounce of silver but would carry a legal tender value of US$20 (twenty dollars). You can view the bill at http://www.leg.state.nv.us.
As Mark Twain once said,"It's sound sentiment, but bad judgment."
When I see something like this, the first thought that crosses my mind is,"They don't know `sic 'em' from `come here'." This is actually a fiat money scheme masquerading as sound money. It's 'social credit" dolled up in a silver robe.
Think about it. Each ounce of silver has a market value of only US$4.50. The US$50 million circulation authorized would use only 2.5 million ounces of silver. The silver would be forced into circulation with a legal tender (gun to your head) value of US$20 each, about four times its market value. In other words, of the US$50 million to be circulated, about US$37.5 million would be created out of thin air
This is a paper money scheme, but they're printing it on silver instead of paper. The logic behind this seems to be, 'If the federal government can create money out of thin air and profit from it, why not the state?" At the foundation this is a social credit/paper money scheme, because they are trying to fix the price of silver above market. They have completely missed the"value for value" concept of gold and silver money. Mercy! Even our"allies" are our enemies. The worst thing about a monstrosity like this bill is that it throws genuine reform into disrepute.
REAL REFORM
But the states can't do anything about the US congress' failure to issue sound gold and silver money, can they? Absolutely, they could. The constitution at Article I, section 8 requires congress to"coin money," and at Article I, section 10 forbids the states from coining money or"making any Thing but gold or silver coin a tender in payment of debt." Obviously, before the constitution the several states possessed and exercised all the powers of a sovereign. Among those powers is the power to coin money. They transferred that power to their agent, the federal government, under the constitution.
Now their agent has failed to perform its duty, so the power reverts to the states. As long as the federal government defaults on its responsibility to coin gold and silver money, any state has the right to coin its own gold and silver coin immediately and place it in circulation.
But this Nevada bill doesn't solve a thing. It just places the state of Nevada in the lineup beside that other crook, the US government.
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