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overtheedge
Member since May 2012
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has posted a comment on the article :

A Salvo in the Battle for the Gold Standard

- Keith Weiner - Monetary Metals

I would argue that the devil is in the details, i.e. the definition of money.
What the people of the US are using is currency.
Currency being defined as the current medium of exchange.

Those who trot out the Constitution are for the most part delusional about what constitutes money.
Article I section 8 and 10 make it perfectly clear that only the Federal gov't can coin money.
Ergo by the term coin, this means metal. You really don't think the framers of the Constitution didn't grasp the concept of printing, do you?
They certainly understood the concept of counterfeiting securities.
Further Article I section 10 makes it abundantly clear that the States may only use gold and silver coin a tender in payments of debt.

Therefore gold and silver are NOT money.
They are commodities and capital gains taxes are well within the authority of the gov't to collect.
However gold and silver COIN are money by Constitutional decree.
The exchange value is of no importance anymore than it could be reasoned that buying something at a 20% off sale would constitute a profit of 25% and said profit taxable.

BUT, might makes right. He who holds the gold does NOT make the rules.
He who controls the armies do.
Brute force always trumps paper dictates.

I don't doubt that the gov't would gladly accept gold buffaloes at coined price in payment of taxes.
If you owe $1000, 20 buffaloes would pay it.
But buy a few acres in the country using the same medium of exchange and the gov't would go nuts.
$1000 for 10 acres when the going price in currency might be $25,000 denies gov't their skim.
This would especially hold true if the seller originally bought the property for $10,000.
That is a loss of $9000 to write off on taxes.

This lengthier comment was not directed towards you, but rather a subset of your audience who argue metal is money.
Oh well, interesting article. Thanks.

Commented 3340 days ago

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Beginning of the headline :I wrote what I thought was a fairly simple article for Forbes on Tuesday. I noticed that some people really got it, and they were very excited. However, others were skeptical or asking questions that went into the weeds. The former tells me that I said something important, but the latter says that I said it in a way that not everyone could relate to. I started with the observation that many people argue (vehemently) that money should be defined as the medium of exchange. In the US, the dollar is... Read More

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