Money crankery.
So everyone using bullion as money carries scales and assay equipment and keeps up on market fluctuations of bullion on smart phones? Really?
Activist Post
Signed as Law: Kansas Removes Barrier to the Use of Gold and Silver as Money
Michael Muharrey | Communications Director for the Tenth Amendment Center
But but but, each transaction using gold and silver will deemed a taxable exchange of property pursuant to the IRS subject to potential capital gain. Plus, you would have to keep track of your cost basis in each coin. Just like bitcoin.
ReplyDeleteOf course, gold and silver coins are constitutional money. Paper money is unconstitutional, illegal, the cause of the boom/bust cycle, recessions and depressions, wealth theft via Cantillon Effects and it subsidizes war, asset bubbles, unsustainable overbuilding and sprawl. Naturally, MMTers love it.
The IRS recognizes that bullion is a tradable commodity, that is, a real good (product) that is produced for sale in money. IRS accepts that bullion is valued in money and money not in bullion. Of course, Congress could change his by law. Good luck with that politically unless a whole lot of voters were using bullion in exchange.
ReplyDeleteGold and sliver pieces are not "money" (coins) unless minted by a sovereign and stamped with a face value. This generally involves the sovereign imposing sovereignty, prohibiting counterfeiting and debasement, etc.
Has been done and could be done again, but it carries transaction costs including potential coin clipping.
It's backward-looking and now crankery with electronic payments expanding both for convenience and to reduce further transaction costs.
It's backward-looking and now crankery with electronic payments expanding both for convenience and to reduce further transaction costs.
ReplyDeleteThe coins need not circulate. That's what warehouse receipts are for. Transactions could still occur electronically. Further, there is no requirement that the government grant some type of imprimatur regarding metal coins. With a fair and honest court system, fraud could be easily punished. Those alleged problems pale in comparison to the stimulated overbuilding, sprawl and war-mongering which are the purpose and result of fiat money.
Might be more practical to have a blockchain currency convertible into bullion at a fixed rate?
ReplyDelete