Get The Fed Out Of South Carolina!

From Third Palmetto Republic and Secession and Nullification--News and Information:

Get the FED out of South Carolina!


On December 27, 2010, in Economics, Nullification, issues, by Tom ....

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The very first target of any nullification effort should be the federal reserve: a private corporation that is granted the exclusive power by the United States government to issue legal tender, and acts as the base to an inverted pyramid of currency creation known as fractional reserve banking. In short, we are forced to use Federal Reserve Notes in all transactions, while the private banks that make up the Federal Reserve enjoy the luxury of creating new money out of thin air, continually robbing us of the value of each dollar. The fact of the matter is that we do not and cannot have any independence so long as such a system exists.



To start with: why does it matter at all? Who cares about the federal reserve, or how they control the currency? Why does it matter what we use for money in the first place? These are complex questions and for a more in-depth explanation please see “What has the government done to our money?” by Murray Rothbard.



Basically, currency matters because it represents money, or the store of value used in exchange. This means that when you invest your time into something and you are paid money for that investment, you are paid in currency, and you can then go and use that currency to purchase the things that you desire, such as food, shelter, electricity, movies, etc, or you can be wise and prudent and use that currency for savings. You could then go and use those savings to buy larger items like a car or a house, or you could use those savings to start a company or invest in an existing company.



However, since the creation of the Federal Reserve in 1913, along with the income tax, it has become increasingly difficult to generate savings. First, the federal government confiscates a large percentage of our profits (earnings after expenses) through the income tax, and second, the federal government has made it illegal to use anything other than federal reserve notes as currency, which means that they have handed over the control of your savings to the federal reserve.



Judge Napolitano talks about these issues all of the time on his show Freedom Watch, and here is one such clip:









This deadly combination of the income tax, the federal reserve system, and legal tender laws robs the people of South Carolina of the value of their savings, the value of their work, and impacts the poor and the elderly the most severely. In our state we don’t have a very high average income, so while the FED manipulates the value of our dollars our citizens find it harder and harder to pay the bills and put food on the table, and nearly impossible to start a new business and create new wealth. We find ourselves begging large multi-national corporations to build factories and offices here, and begging the federal government for much needed improvements, instead of standing on our own two feet and generating our own prosperity.



However, there is a solution to all of this. The FED’s achilles heel, so to speak, is the legal tender law (and other various laws dealing with currency) which compel us to use their reserve notes (dollars) and forbid us from using other forms of payment, such as gold, silver, platinum, copper, etc. Without said laws, the people of our state would be free to use dollars if they so choose, but they would not be forced to, as they are now. People could use precious metals, foreign coins and currency, commodities, etc as payment and businesses could refuse dollars if they decided to, and they probably would given the 95% depreciation of the dollar since the inception of the federal reserve.



The legal tender law reads as such:



Section 5103 of title 31, United States Code



§ 5103. Legal tender



United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.



On the face of it, this law is clearly unconstitutional. The constitution says in Article 1 Section 10:



No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.



So here the federal government has a law that forces states to accept federal reserve notes as tender in payment of debts even though the constitution clearly forbids said practice. Nullification of this law (and similar laws) is therefore easily justified, and demanded for the prosperity of our people.



The good news is that nullification of these laws has already been attempted in South Carolina, to some extent. State Representative Mike Pitts introduced H4501 last year, and plans to reintroduce this year, which states (in part):



TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 18 TO CHAPTER 1, TITLE 1 SO AS TO PROVIDE THAT SILVER AND GOLD COIN SHALL BE LEGAL TENDER IN PAYMENT OF CERTAIN DEBTS.



This bill got a small amount of press but not much support and ultimately was tabled before it ever received a vote. We need to stand up and support this measure as it would be a step in the right direction, but additionally we need to push for stronger legislation that would allow the citizens of South Carolina to use gold and silver for payment of all debts, and to refuse payment in dollars if they so choose. Such legislation would need to ban the taxation of gold and silver (sales tax, capital gains tax, etc) and would need to specify that the value of the coins is determined by the weight value of the metal, not by the dollar value stamped into the coin (if any.)



Such a nullification effort would create a system of competing currencies where eventually the best currency, the best store of value, the best protector of purchasing power, would win out. Such a nullification would end the FED, at least for the people of our state.