Sound Money -- Utah's Golden Parachute
The Utah Sound Money Act is designed to reinstate gold and silver coin as an optional, medium of exchange for use in Utah intrastate commerce. Essentially, the bill creates a standing offer from the state to its taxpayers for hard-money transactions subject to pre-determined terms and conditions. The bill likewise recognizes the inherent, inalienable right of citizens to engage in specie-based exchanges with each other on mutually agreeable terms.
The authority for the bill is drawn from Article 1, Section 10 of the United States Constitution which provides that no state is to make anything but gold and silver coin tender for payment of debts. Although grounded in ancient principles enshrined in the supreme law of the land, the bill is intended to address pressing, current issues that have arisen out of the pervasive use of fiat currency in modern American society, namely:
- The dollar's loss of more than 95% of its purchasing power over the past century;
- The recurring boom/bust business cycle characteristic of fiat currency systems;
- The federal government's regulatory intrusion into intrastate commerce;
- Heavy tax burdens which have driven much U.S. industry offshore;
- The dollar's imperiled status as the world reserve currency;
- The erosion of property rights and public confidence;
- The unsustainable welfare/warfare/police state.
Since there is no historical precedent for a totally fiat money system, such as ours, ever lasting more than a few decades, prudence dictates that alternative, sound, means of exchange be put in place well in advance of any potential crisis, such as those endured by the fiat-financed nations and empires of the recent and distant past. Even absent the specter of catastrophic consequences, an alternative sound money system confers many benefits on citizens and state governments alike. Such a system serves as a refuge from the ills described above, including the insidious "inflation tax" that our current monetary system imposes. Consider the following Sound Money Act highlights:
- Option to use historically inflation-proof medium of exchange in intrastate commerce;
- Intrastate commerce cooperatives as private, debt-free incubators of innovation;
- Standing for access to declaratory relief from intrusive federal regulation;
- Tax relief for commerce carried on within Utah intrastate cooperatives;
- Back-up exchange mechanisms in the event of dollar implosion;
- Property rights secured by the Utah State Defense Force;
- All this provided at no upfront cost to the State;
Regarding this final point, the bill authorizes the state to contract with one or more intrastate cooperatives to transport, safeguard and facilitate exchanges in gold and silver coin. Such cooperatives would be compensated for their services by way of a transaction fee, likely to run less than typical credit card charges. This public/private partnership ensures an economical, secure, discrete, voluntary, alternative monetary system supported by the police powers of a sovereign state. As such, it is likely to attract significant commerce and capital into its sphere of operation.