Wednesday, June 10, 2009

Who's got the money

There's a contractor in Las Vegas who has been paying his 1099 employees in post 1985 gold and silver coins. Now the Feds are trying to send him to jail for LIFE. Charges were brought against 9 other people but for the most part they have been dropped. I will admit this contractor has been doing some shady stuff such as putting several houses in his girlfriends name to conceal his ownership of them. But the clincher is he has printouts from the IRS website where he has asked them how to value post 1985 coins. They could not answer his question. So he told his employees to value them at face value. So if you work for someone and they pay you with a couple of Gold Eagles don't claim your income as the face value of those genuine US coins because you will get in trouble as they will be valued as property not coins. Even though they are legal US money made in the US Mint.

This guy had a good idea...e-gold. Online global electronic gold. He later found out that it is not so easy to do. After the scammers, phishers, carders, crooks and finally the Feds got done with him he is under house arrest and looking at doing 36 months in the pen. The real bitch is that he found the problems with the system and started fixing it and found the names and addresses of some people wanted by the US and other governments. He turned in these names to the Postal Inspector who forwarded the info the the FBI and other agencies. Thanks for the help now hands up. They acted on the info he gave them and then raided him. The Federal Reserve said of the e-gold operation "we thought it was legal". He is getting the system legalized and will be back in operation.

Here's a novel idea. Since the US currency is basically worthless, a piece of paper backed by debt hence the term "note" used as a description for US currency, why not start a competing private money system. You know you would get in trouble if you tried to replace the official currency but who would bitch if an alternative was available? Ever heard of the Liberty Dollar? Well ol' Bernhard who started Liberty Dollar is going to jail. The bullion warehouses were raided and the operators were charged with counterfeiting. Now the Liberty rounds do not say anything about being legal tender and only bear a very slight resemblance to US money and the "paper" currency is beautiful. And the gold and silver rounds are 1 troy ounce. How many time do you see 1 ounce US coins in your local market? This was legal until the Feds decided it wasn't. Wow! Does that sound like a recurring theme?

Are the Feds afraid that people, when offered an alternative to worthless paper, will make a change to real money? The Constitution says one of the powers of the USG is to "coin Money" not print it, coin it. Currency might have been alright when we had a gold backed system but we don't even have that now. The Constitution also says that the States shall NOT "make anything but gold and silver Coin a Tender in Payment of Debts." So who's right here? Who is trampling on the people and free choice? If the government has reneged on it's agreement to coin money in gold and silver then don't the people have the right to use something that is recognised by the Constitution?

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