How I Trade My Labor for Gold (and Silver) Coins
November 13, 2012 in Business
“Indeed, thanks to what is known as “legal tender laws” (laws by which the government declares that paper slips with certain ink patterns on them can be substituted for real money without actually being lawful money themselves) people can actually buy things with paper, and get to call what they buy “their own.” But that doesn’t change the fact that what they earned and what they used to pay for those things is nothing more than evidence of a debt.
“And that debt can never be repaid. …
‘Bankers accomplished this initially through the institution of fractional reserve banking, and secondarily through divorcing the money concept from any notions of intrinsic value whatsoever. But lest we blame our problems exclusively on others, we “the People” must acknowledge that the ultimate factor in helping them accomplish this was our own laziness, ignorance, and a totally misplaced trust in elected officials.
“The definition of money includes three functions: money is said to function as (1) a unit of account, (2) a medium of exchange, and (3) a store of value.
“Modern fiat creation and management has utterly destroyed money’s store-of-value function and replaced it with – a legally enforced lie. …
“Legal tender laws are the lynchpin for the subversion of the money concept by organized officialdom. They state that you cannot refuse to accept paper-cash in return for something you offer to sell, or in settlement of a debt.
“But what they do not say, however, is that you cannot accept anything else in payment if you and your buyer agree, or if you and your seller agree (if you happen to be the buyer in a transaction.) So the door to real money is still wide open.
“And that is the way out of this conundrum.
“If you and the other party to a transaction agree, you are free to accept or offer whatever you want in the exchange. This is called the right to contract and it is constitutionally protected – at least here in the United States.
“As the dollar completes its inevitable descent into the netherworld of official shenanigans, you and I are left to try and figure out what we can do to protect what we have worked for all of our lives. …
After you carefully consider the alternatives that paper-debt instruments masquerading as “money” provide to the owning and saving and spending of real gold, please go ahead and make up your own mind.
“While the power-cabals that surround and permeate international politics and banking subject Americans to the monetary version of Chinese water-torture (a painfully-slow death of your own currency), you have the means for escape at your disposal, right here, right now: a private, parallel, physical gold, silver, and maybe copper, bullion currency. …
“Undoubtedly, the switches for a much lower dollar, and thereby much higher gold, have officially been set. The last bit of confirmation we needed for that was contained in Greenspan’s remarks last week that other nations may not be willing to finance our deficits forever and may want to switch out of the dollar into another currency.” ( 1 )
“A Company Can Benefit in Paying Employees with Gold & Silver Coins
“Around noon on Monday, September 17th , a Las Vegas federal jury returned its verdict refusing to convict nine defendants of any of the 161 federal tax crimes they had been charged with.
“The Government argued that the payments in solid gold and silver U.S. coins must be considered at their bullion (i.e., intrinsic full-market) value when considering the worth of the wages for purposes of the internal revenue code. The essence of the argument is that under the Constitution Congress is obligated by law to mint and circulate such coins as demand requires, and must establish the value of coins as they are used as legal tender, but the coins’ market value, arising as valuable personal “property,” is a distinct, separate attribute of such coins, and is of no legal consequence if the coins are used as legal tender.
“In other words, if a worker is paid with such coins, his taxable “income” (if any) can only be the face value indicated upon the coin money paid — i.e., $1.00 for a circulating silver dollar or $50 for a circulating gold U.S. coin. Not surprisingly, the IRS has never issued any public guidance regarding this significant issue. The first case, Ling Su Fan v. U.S., 218 US 302 (1910) establishes the legal distinction of a coin bearing the “impress” of the sovereign:
“ “These limitations are due to the fact that public law gives to such coinage a value which does not attach as a mere consequence of intrinsic value. Their quality as a legal tender is an attribute of law aside from their bullion value. They bear, therefore, the impress of sovereign power which fixes value and authorizes their use in exchange.”
“The second case, Thompson v. Butler, 95 US 694 (1877), establishes that the law makes no legal distinction between the values of coin and paper money used as legal tender:
“ “A coin dollar is worth no more for the purposes of tender in payment of an ordinary debt than a note dollar. The law has not made the note a standard of value any more than coin. It is true that in the market, as an article of merchandise, one is of greater value than the other; but as money, that is to say, as a medium of exchange, the law knows no difference between them.” ” ( 2 )
“Although we cannot compete with China at current currency values, it is not the fault of free trade. Free trade is the truth that is poking holes in, and exposing the fraud of, the overvalued dollar. If Americans were paid in gold and silver and if silver were valued about 300 times more than it is, then we would be working for lower wages than the Chinese, and we would be quite competitive. Honest money, and honest weights and measures, is the only economic salvation. …
“The real irony is that banks were created to get you to deposit your gold and silver with them. Today, the banks can only stay in business by selling gold and silver at cheap prices to prop up their fraudulent and failing currencies. Recognize these opportunities as “once in history” opportunities, and take advantage of them in any way you can.” ( 3 )
“Fraud? — Legal tender laws. To add insult to injury, legal tender laws are laws that treat these frauds as if they were the corner stone of “The American Way”. They force people to accept the fraud, in place of real money, gold and silver. And they prevent people from making and contracting for gold and silver, even though the big banks are somehow exempt, and can contract in gold and silver all they want through the “over the counter” derivatives market.
“The fraud of legal tender laws is the fraud that www.fame.org/#Strategy has been working to expose.
“Fraud? — Tax on gold and silver purchases. In the U.S., some states collect a sales tax on the purchase of gold and silver coin. It usually ranges from about 5-8%. In some states, such as California, it is only applicable on transactions for less than $1000. In Europe, they have what is called a VAT, or “value added tax”. It’s also fraud. There can be no tax on a money exchange. When you get two $5 bills for a $10 bill, do you pay tax? Of course not. When you convert money from the Canadian dollar to the U.S. dollar is there a tax? Of course not. Therefore, there should be no tax on other money exchanges.
“The fraud of the tax on bullion is a fraud that Franklin Sanders has been working to expose.” ( 4 )
“ … consider the tax advantage of owning gold and silver. Officially, there are capital gains taxes on every asset you own that rises in price, and then sell. Unofficially, there is no way to track when and at what price you paid for silver [ or gold ] when you acquired it. Therefore, realistically, there is no capital gains tax when you sell silver or gold after they appreciate. And if they pass any ridiculous law to try and tax gains on the sale of gold and silver, that will only cause less selling of gold and silver, which will, in turn, make them more valuable, and less likely to be used in trade. The only way for society to emerge from a currency collapse is to pass laws designed to attract and encourage the trade of gold and silver. So laws that tax capital gains on the sale of gold and silver should not be feared.” ( 5 )
“Most who vote in the election are going to vote for either a Democrat or Republican. It’s one person, one vote, every two to four years. There is another vote that goes on, and it is continual, and it is “one dollar, one vote”. For every dollar that people keep in the banks, or in bonds, they help to prop up the entire banking and governmental system. For every dollar that people sell in preference for gold or silver, they are voting for a real change to the bankrupt system. We need not vote for an independent political party (although that would be better than voting for the same two teams), we simply need to buy gold and silver, and stop holding money in the banks, or bonds. Yes, it’s that simple, and we can create major political change any time we like. By buying silver, I’ve already voted, and I didn’t even need to register. Have you?” ( 6 )
My Steps in Trading My Labor for Gold (and Silver) Coins:
1. I found a reputable local bullion dealer.
2. As a contractor, I contracted with my employer for my pay in locally minted legal tender gold (and / or silver ) coins, then at each pay period submit a Tax Invoice denominated in these legal tender gold coin amounts, have advised my employer that he may direct my pay into the bullion dealer account, and the gold (and / or silver) coins are then couriered to my work. Therefore I am paid in gold coins. (I have closed all my personal bank accounts and have only a debit card bank account.)
3. As an employee, I can contract with my employer for my pay in locally minted legal tender gold coins, and follow the steps above. I put it in writing.
4. My employer may choose to buy the gold coins himself in order to pay me. He therefore may be eligible for a capital loss. But again this is exchanging money for money that may have no tax implications. He should check with his financial advisor.
(1) Gold = Wealth , Cash = Debt
by Alex Wallenwein
(2) IRS Suffers Staggering Defeat
MSM Buries Story
(Tax Questions Raised Regarding Gold & Silver Coins Used to Pay Wages)
by Jason Hommel
(4) Major Frauds of the U.S. Monetary System
By Jason Hommel
(5) Overvalued Housing, Bonds, and Stocks
By Jason Hommel
(6) Silver Stock Report Commentary
by Jason Hommel
[ Please note that the author of this article cannot give financial advice, and that you should seek financial advice from your own financial advisor for your own situation. ]