Honest Money Amendment Now
Honest Money Amendment Now
We The People request the current administration pass an honest money amendment now permitting bitcoin, gold, and silver to freely be used as money alongside United States dollars.
The Constitution explicitly recognizes gold and silver as money. Current Federal Reserve Chairman Jerome Powell has defined bitcoin as an “alternative to gold” in his testimony to the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, on July 11, 2019. We therefore petition that:
1. All tax discrimination against bitcoin, gold, and silver must cease, including the removal of all capital gains tax on holdings of, and transactions in bitcoin, gold, and silver and;
2. That all impediments to using bitcoin, gold, and silver as money be removed.
We The People of the United States take great pride in our Country’s unwavering defense of individual choice and the protection of civil liberties. In this unprecedented time of emergency Federal Reserve actions and untested experiments in the management of the United States Dollar we simply ask for the sanctity of choice protected by the U.S. Constitution. We implore our elected officials to not discriminate against our choice in money when used in the service of our wages, our savings, and the transactions required for our families and our communities.
US CITIZENS DESERVE A CHOICE IN MONEY
This petition does not seek to mandate a gold, bitcoin, or commodity-backed monetary standard, impose a Federal Reserve managed gold system for a gold backed currency, or place any restrictions on the existing currency management powers of the Federal Reserve. Instead, we simply petition President Donald J Trump to sign an Executive Order that provides savers with a choice in money consistent with the spirit and intent of the Constitution.
Although President Nixon unilaterally suspended in 1971 the direct convertibility of the United States dollar to gold, the Constitution does not grant either Congress or the President the power to demonetize gold and silver or impede their use as currency. Yet, these precious metals and their modern day digital, commodity-money substitutes have in fact been restricted and discriminated against:
1. They are not permissible currency under various money transmitter laws, and;
2. They are discriminated against by US tax policy.
In combination with the lack of US dollar convertibility, these factors of discrimination effectively demonetize gold and silver, impeding their use as money in day-to-day commerce.
Advances in financial technology and digital payment platforms have enabled bitcoin, which Federal Reserve Chairman Jerome Powell has called a digital “alternative to gold”, to be used interoperably with central bank currency in online transactions; therefore, there is no better time to remove the remaining impediments that hinder bitcoin, gold, and silver so they can freely circulate in commerce as transactional money again.
There is little impact to government policy if people do not choose bitcoin, gold, or silver for their savings or use them as currency, but there are benefits for U.S. citizens who desire a sound and immutable money for their wages and savings. Regardless, any choice of currency should be made by the people, not by the latest fashion in economic theory as dictated by a central banking monopoly.
While the macroeconomic merits of using a sound and immutable currency – such as bitcoin, gold, and silver – may be debated, there should be no discrimination, either explicit or implicit against those citizens who unilaterally choose to use constitutional money.
The U.S. Dollar as an inferior store of value for the measurement and reward of wages
Federal Reserve Notes as United States dollars have objectively proven to be an unsatisfactory currency for individuals and businesses in light of the dollar’s inability to maintain its purchasing power. While at the same time, even with no official government support or use in global monetary systems, gold, silver, and bitcoin have preserved purchasing power for savers and wage earners in marked contrast to the currency of any central bank.
Before 1971 the federal minimum wage was $1.60 per hour, or 1.42 grams of gold per hour based on the gold price at the time of President Nixon’s “temporary” suspension. By 1985 the minimum wage was $3.35 per hour, but only 0.32 gold grams per hour in purchasing power. Today the Federal minimum wage is $7.25 per hour, but just 0.14 gold grams in purchasing power. So while minimum wages have increased in nominal U.S. dollar terms more than four times, their purchasing power for goods and necessities has declined to just 1/10th of what they previously commanded, an eye-opening 90% decline in the purchasing power of the US dollar compared to gold.
The same 1.42 grams of gold that was the minimum wage in 1970 would today equate to more than $74 per hour, which would enable individuals even being paid a minimum wage to maintain an adequate standard of living. Gold preserves purchasing power to acquire the necessities of life - education, health care, housing, food and energy. The cost of all of these necessities are consistent over time when measured in gold, but appreciate exponentially in U.S. dollar terms.
Interest paid on savings would have recovered some of this purchasing power for any dollars saved, particularly in the 1980’s and 1990’s when interest rates were higher, but it has become harder to save any dollars for spending in the future. A greater portion of one’s wages is needed to keep up a reasonable standard of living in the face of rising prices.
The U.S. Dollar system as an inferior payment technology
Bitcoin provides new and superior ways to transfer and exchange value without the high transaction costs and frictions associated with the centralized debit-based U.S. Dollar system. The U.S. Dollar, backed primarily by government debt and mortgage debts held at the Federal Reserve, requires an elaborate, centralized-system of slowly moving debits and credits to effect value transfers through the commercial banking system.
Common citizens and the small businesses which dominate much of the American economy are increasingly charged more to access and utilize the underlying U.S. Dollar payment system than large businesses and are therefore increasingly bearing the operating costs associated with this system. Further, citizens and small businesses are also the least compensated among all banking lenders for depositing their wages and earnings into this system. This lack of choice in money results in many citizens being forced to to collect their wages and utilize an inferior payment system to their detriment.
In an age characterized by an economy where services are increasingly being provided over the internet, the transaction costs associated with the U.S. Dollar system result in unnecessary frictions which hinder economic and social mobility. Bitcoin offers a welcomed solution to these issues with a peer to peer network that does not depend on a centralized entity to facilitate monetary transactions.
Americans deserve choice in money
As a measure of our Nation’s economic accounts, the state of our Union demands higher standards, not lower standards for money. Looking back, it’s hard to think of another product that has become so objectively worse over the past two decades than central bank managed currency. Looking forward, it’s time to pass an honest money amendment now.