Home > Utah Goes Rogue To Save Itself, Gold & Silver Now Legal Tender (UUP, GLD, SLV, AGQ, IAU)
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Utah Goes Rogue To Save Itself, Gold & Silver Now Legal Tender (UUP, GLD, SLV, AGQ, IAU)

April 19th, 2012

Dominique de Kevelioc de Bailleul: After months of public outcry over Washington’s out-of-control fiscal and monetary policies, Utah Governor Gary Herbert signed into law Utah House Bill 157 Currency Amendment allowing gold and silver bullion as legal tender within the state to settle retail transactions and debts.

Though several other states have proposed similar legislation, Utah becomes the first state of the Union to actually pass a law providing ammunition to fight back the ill effects of the Federal Reserve’s malicious debauching of the U.S. dollar. Get my next ALERT 100% FREE

The symptoms of rapidly rising costs of life’s necessities can be directly attributed to 10 years of money supply growth, not seen since the disastrous 1970s.   As of April ’02, M1 money supply has skyrocketed 77 percent to $2.22 trillion for April of this year.

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And it’s going to get increasingly worse.  After compounding at a 5.9 percent rate throughout that 10-year period, the Fed has forecast another 17.4 percent increase in M1 through April 2013, a near trebling.

The signs of run-of-the-mill inflation metastasizing into hyperinflation now appears, giving rise to the notion that the reason for the politically unsavory executive order of the NDAA signed by Obama on New Years Day—which effectively suspends the U.S. Constitution—is to provide the legal authority to a sitting president to initiate martial law, including a civil uprising in the event of a collapse of the U.S. dollar.

Other states may soon follow Utah’s watershed legislation—and quickly.  In its annual World Economic Outlook publication, the International Monetary Fund (IMF) noted that a Eurozone breakup could rapidly disintegrate into a “full-blown panic in financial markets and depositor flight.”

Why?  The IMF knows that Greece’s economic collapse merely represents the tip of the EU iceberg.  Much larger European states, such as Spain, Italy, France, and even some have speculated, Germany, cannot survive the crushing debt loads coming due this year.  It’s truly the end of the road for a global financial system that tried an experiment of unbacked fiat currencies, globally.

“The potential consequences of a disorderly default and exit by a euro area member are unpredictable…,” according to the IMF report.  “If such an event occurs, it is possible that other euro area economies perceived to have similar risk characteristics would come under severe pressure as well, with full-blown panic in financial markets and depositor flight from several banking systems.

“Under these circumstances, a break-up of the euro area could not be ruled out.

And as Europe collapses, the U.S. will most assuredly go with it.”

Contrary to misinformation propagated by officials at the Fed and Treasury, Europe is the U.S.’s Greece—a warmup, a warning sign of systemic failure, according to many private economists and well-known financiers.

As early as the greater economic collapse of the Great Depression of the 1930s, the mother of all Depressions of the 1870s, severe recessions and depressions, currency crises and bank panics on either side of the Atlantic have rippled globally.  The Bank Panic of 1907, which began with the fall of the Knickerbocker Trust Company in New York, quickly spread to Paris and Rome, collapsing France and Italy, leading to recession in Europe.  This time, with electronic banking and communications as they are, is certainly no different.

Back then, financial ruin was creeping into the U.S. economy as the result of the U.S. Civil War of 1861-65 and the failed Greenback that funded it.  That war’s cost, reminiscent of the money borrowed and spent for post-WWII wars fought overseas, culminated into hard times more severe and lengthy than the better-known Great Depression of the 1930s.

“This could cause major political shocks that could aggravate economic stress to levels well above those after the Lehman collapse,” the report concluded.  And that’s when financial Armageddon begins in earnest, according to many the world’s well-respected economists.

It is now that, even the more disengaged Americans among the population of 310 million can wrap their minds around the bizarre sequence of political events of the past decade, beginning with the Patriot Act, then NDAA, to most recently,  Executive Order—National Defense Resources Preparedness (NDRP)—an order which gives guidance to all U.S. Departments to activate a National Defense Executive Reserve (NDER) in case of national emergency or peacetime (i.e., preparations). (1)

In other words, at the very least a currency collapse is coming.

Fox News stated on March 19:

The purpose of the order [NDRP], according to its contents, is to make sure the U.S. is prepared to mobilize technological and industrial resources ‘capable of meeting national defense requirements’ and ensure ‘technological superiority of its national defense equipment in peacetime and in times of national emergency.’

Within the context of these rapid-fire Executive Orders, pending legislation to deny or suspend passports for delinquent taxes; record gun sales; the rise of the OWS and ‘Prepper’ movement; and the record flight of Americans leaving the U.S. for good, Utah sees the writing on the wall, as do, apparently, many more Americans.

It’s only a matter of time when many of the other states sign into effect similar laws to the one just passed by Utah.

(1) Could this be the reason for record-low gold stock valuations (compared with the price of gold bullion)—the fear of a Venezuela-like confiscation?

Related: SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), ProShares Ultra Silver (NYSEARCA:AGQ), iShares Gold Trust (NYSEARCA:IAU), PowerShares DB U.S. Dollar Index Bullish Fund (NYSEARCA:UUP).

By Dominique de Kevelioc de Bailleul From Beacon Equity Research

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap  stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street.  We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.


NYSE:AGQ, NYSE:GLD, NYSE:IAU, NYSE:SLV, NYSE:UUP


 

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  1. Ray
    April 26th, 2012 at 22:22 | #1

    Gold, silver, copper for mankind.

    Historically, gold, silver, and copper were used as monetary based on their
    fair value as exchange medium in fair trade.

    Now, gold and silver are both dismissed from their monetary function. Only copper
    is the only metal still left to be used as money. Even so, the copper monetized
    today is based upon its face value and not upon its fair value. As such, the
    basic form of human ties in transaction is therefore corrupted and not a fair
    trade among us anymore.

    This calculation was intended to bring back the fair trade for the sake of
    just in mankind. Copper will be used as the basic reference, and solely on its
    fair value. In monetary term, USD will be used as unit only because of it
    recognition worldwide.

    Base value = material cost
    Face value = denomination value
    Base value copper = usd 3.71/lb = USD 0.008/g
    Base value nickel = usd 8.15/lb = USD 0.018/g

    US dime face value USD 0.10
    Dime composition copper 91.67% nickel 8.33%
    Dime weight = 2.268g
    Dime copper’s weight 2.268g x 0.9167 = 2.079g
    Dime nickel’s weight 2.268g x 0.0833 = 0.189g
    Dime copper’s base value = 2.079g x USD 0.008/g = USD 0.017
    Dime nickel’s base value = 0.189g x USD 0.018/g = USD 0.003
    Dime base value = USD 0.02 ( only 20% or one-fifth from its face value usd 0.10)

    With a dime, based on its face value you can purchase its base metals 5 times more
    than the dime contents ie copper at 2.079g x 5 = 10.395g and nickel at 0.189g x
    5 = 0.945g.
    10.395g copper x USD 0.008/g = USD 0.083
    0.945g nickel x USD 0.018/g = USD 0.017
    Total 10.395g copper 0.945g nickel = USD 0.10, base value

    Dime 2.079g copper 0.189g nickel = USD 0.10, face value

    Total 10.395g copper 0.945g nickel = Dime 2.079g copper 0.189g nickel. Not a
    fair trade! Solution?

    As such, the dime will be pegged to its face value as unit only, and copper and
    nickel price will be adjusted accordingly. (or else fixed the metal base price
    and issue new coinage with fair value weightage/content)
    Base value copper new = USD 0.04/g
    Base value nickel new = USD 0.09/g

    Further to this, all good will be priced accordingly
    Old silver price USD 1.25/g to new silver price USD 6.25/g
    Old gold price USD 56.25/g to new gold price USD 281.25/g
    Old rice price USD 0.75/kg to new rice price USD 3.75/kg

    With the standardisation of all goods, based on dime unit which transpire on
    copper value, gold and silver can now be used as money again against the fiat
    money. Any price fluctuation for any goods now will solely be on its actual
    fair trade with only stock manipulation rather than purely fiat money price
    manipulation based on credit without stock. Stock manipulation is more easily
    apprehended and therefore more risky for the manipulator, other than the
    lifespan/storage/delivery limitation of the goods. Hopefully in the future, the
    rich with whole lot of gold and silver, realised the agony of safekeeping their
    wealth/fort, will not recreate the same fiat system again, but acknowledge the
    real joy of giving with real goods and not fiat IOU paper.

    With the gold and silver standard back again, foreign exchange will now be
    back to fair barter trade again. Gold and silver as the commonly accepted
    exchange commodities will only exchange hand when the nations traded do not
    have common commodities of interest to barter.

    In monetary unit, the gold and silver exchange rate when in foreign countries
    will depends on the other countries base metal money.

    In Canada, Canadian ten cents CAD 0.10 is 1.75g
    92% steel x 1.75g x USD 0.003/g = USD 0.005
    5.5% copper x 1.75g x USD 0.008/g = USD 0.001
    2.5% nickel plating x 1.75g x USD 0.018/g = USD 0.001
    Therefore, Canadian ten cents CAD 0.10 base value = USD 0.007

    Thus, the exchange rate US dime/Canadian ten cents = USD 0.02/USD 0.007 = 2.8
    ( because the dime base value was based on old price, the same applies to the
    Canadian ten cents. Both must be on the same, either old or new will still give
    2.8 )

    New silver price USD 6.25/g = CAD 6.25×2.8/g = CAD 17.5/g

    In Autralia, Autralian ten cents AUD 0.10 is 5.65g
    75% copper x 5.65g x USD 0.008/g = USD 0.034
    25% nickel x 5.65g x USD 0.018/g = USD 0.025
    Therefore, Autralian ten cents AUD 0.10 base value = USD 0.059

    Thus, the exchange rate US dime/Autralian ten cents = USD 0.02/USD 0.059 = 0.3

    New silver price USD 6.25/g = AUD 6.25×0.3/g = AUD 1.88/g

    Good Day! Pls spiral.

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