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the constitution is the revolution

Gold & Silver Accepted Here

 

The fact that euros are accepted by many stores in New York City has made the news lately and is well known in gold investor circles. It is yet another symptom of the ongoing demise of the US dollar. The good news for these New York City merchants – and for all others nationwide – is that gold and silver will not be far behind and offer far better advantages as dollar-alternatives.

You may think that honest-to-goodness currency demand for gold and silver is non-existent in the US and that this will remain so until the legal tender laws are repealed (as currently proposed by Representative Ron Paul’s dual HR 42756 and HR 4683 approach) – but that is not necessarily true. Such demand will soon begin to build, regardless of Ron Paul’s efforts in Congress – and it will take off very fast.

Here is why:

Until now, merchants or service providers labored under the quite incorrect assumption that offering their goods for gold and silver would be unprofitable, and a waste of time because of a number of factors.

Factors That Used to Limit the Currency-Use of Gold:

  1. A widespread, but incorrect, application of Gresham’s law to the situation at hand;
  2. A lack of public understanding of the advantages of PMCs by the public;
  3. Legal tender laws prohibiting the issuance and the “utterin” or “passing” of non-official precious metals coins (like 18 USC 486, the law the Liberty Dollar ran up against);
  4. Tax laws that inhibit the free exchange of gold or silver for goods and services by imposing difficult to satisfy accounting burdens;
  5. Insufficient numbers of consumers own spendable gold or silver or are aware of their availability..

Yet, none of these reasons really prevent merchants from profitably offering their wares for gold. (Whenever the word “gold” is used from here on forward, it should be understood to include silver).

The dollar’s rapid decline and the accompanying credit crunch and world economic slowdown are changing the picture for gold-as-currency dramatically. Gold has always been – and will always be “money”, but its actual widespread use as a circulating medium of exchange has been stifled by the above listed factors. Let’s go through them, one by one, to see if they really pose such severe obstacles to the use of gold as a viable currency.

To read the complete article go here.

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