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‘Transacting in gold can shaft the IRS’
By Brian Domitrovic
In 2011, the state of Utah passed a law banning taxes on the use of gold and silver coins as currency and permitting residents to remit state taxes in these coins. Big deal, you might say. That’s already in the Constitution: “No state shall … make anything but gold and silver coin a tender in payment of debts.”
Oklahoma has done something similar, confirming that transactions taking place in gold and silver are free from state taxes on the exchange medium. Currently, in federal law, if you buy things with gold, for example, you have to declare as taxable the gain on any market appreciation of the gold you used to make the purchase.
Actually, it’s not real federal law. It’s just a piece of “administrative law,” that poor relation of real law, which an agency, the Internal Revenue Service, came up with outside of the congressional and the judicial processes. If you look at real law, statutes signed by the president and Supreme Court decisions from over the centuries, it has been affirmed time and again that the feds must consider gold and silver coins and their own paper notes as dollars as denominated, one and the same.
What a delicious opportunity this presents when it comes to taxation. …
From the Sofia Globe, Sofia, Bulgaria:
Diver finds 2,750-year-old gold coin
A diver has found what is believed to be the oldest gold coin ever discovered in Bulgaria, Bulgarian news agency BTA reports. The coin was found in shallow waters near the resort town of Sozopol on Bulgaria’s Black Sea coast.
The diver saw the gleaming coin by accident, the report said, and passed it on to Bozhidar Dimitrov, a native of Sozopol and former diver himself who is now head of the National History Museum in Sofia.
BTA quoted numismatist Vladimir Penchev from the National History Museum saying the coin is not solid gold, but made of electrum – the naturally occurring alloy of gold and silver used to mint some of the earliest metal coins in history.
This particular coin appears to have been minted in the kingdom of Lydia in western Anatolya in the second half of the seventh century B.C., which puts the coin’s age at more than 2,750 years, he said.
Sozopol was founded as a colony of the Greek city-state of Miletus in western Anatolia about 611 B.C. – first named Antheia but changing its name to Apollonia. Since Miletus was a neighbor of the kingdom of Lydia, it is no surprise that a Lydian coin has been found in the town’s environs, but it is the first of its kind found in Bulgaria, according to Penchev.
The coin weighs 0.63 grams and has a denomination of 1/24 of a stater.
House passes Fed audit bill, but measure seen as doomed in Senate
The U.S. House of Representatives overwhelmingly passed a bill that would open up Federal Reserve monetary policy decisions to a congressional audit, reviving a measure passed in 2012.
But the legislation approved by the Republican-dominated House is expected to meet a fate similar to its predecessor’s: death in the Democratic-controlled Senate.
The “Federal Reserve Transparency Act” passed 333-92 in a bipartisan vote. It is largely similar to the 2012 “Audit the Fed” bill championed by former libertarian Rep. Ron Paul.
Gold’s move from West to East intended to rebalance foreign exchange reserves
China may join other emerging countries in boosting gold reserves as the precious metal makes up a smaller share of its foreign-exchange holdings compared with developed economies, said a London-based researcher.
The country hasn’t announced any changes to state gold reserves since authorities in 2009 said holdings totaled 1,054.1 metric tons. While China holds the world’s biggest foreign-exchange reserves, bullion accounts for 1.1 percent of the total, compared with about 70 percent for the U.S. and Germany, the biggest gold holders, World Gold Council data show.
“It is clear that Western central banks over time will be reducing their reserves and China and other Asian countries will be increasing,” David Marsh, managing director at the Official Monetary and Financial Institutions Forum, said in a Sept. 11 interview in Beijing. “Gold will become more traded among central banks in the next 30 years because there are colossal imbalances in world gold holdings as a percentage of overall asset reserves.”
Central banks, net buyers of gold for 14 straight quarters, last year helped limit bullion’s losses that were the most since 1981 and may increase purchases to as much as 500 tons this year after adding 409 tons last year, the London-based council said Aug. 14. The precious metal rose 3 percent this year as geopolitical tensions boosted demand for a haven.
Dollar ‘strength’ may be only deflationary collapse
GoldMoney research director Alasdair Macleod writes that the U.S. dollar’s recent strength may be less an indication of economic recovery in the United States than of a deflationary collapse of the world economy.
Deutsche Bank: The bubble must go on to sustain the ‘current global financial system’
By Tyler Durden
When all is said and done, it all basically boils down to this. From Deutsche Bank’s Jim Reid:
“The bubble probably needs to continue in order to sustain the current global financial system and the necessary future deleveraging. However, with yields moving ever lower in many parts of the world in recent times, partly due to weak growth, and with debt levels still moving higher, the chances are that most government bondholders are unlikely to achieve a positive real return over the medium to long-term from this starting point. Inflation or even the risk of sovereign restructuring will likely prevent this.”
So there you have it: Either the bubble goes on, or the “current global financial system” gets it.
What is left unsaid is that it is only the “1 percent” that benefits from the bubble. The wealth and income of everyone else gets progressively less, as even the Fed has been forced to admit, until there is nothing left. And should the bubble burst? Why the central banks will just reflate yet another bubble, which translated into layman’s terms means steal even more from the global middle class and give to the world’s richest.
This short piece appeared on the Zero Hedge website.
From RIA Novosti:
Kremlin: Russia’s new package of retaliatory measures to Western sanctions ready
Moscow has prepared a new package of retaliatory measures to Western sanctions that include restrictions on imports of cars and textile products, but hopes that common sense will prevail, a senior Kremlin official told RIA Novosti.
“There is a whole range of non-agricultural products that make our, first of all European, partners dependent on us,” he said. “For example, imports of cars, primarily second-hand cars, as well as certain types of textile products that we are quite capable of producing on our own. Not all of them, but certain kinds,” presidential aide Andrei Belousov told RIA Novosti on the sidelines of the Samara economic forum.
Moscow has already imposed a year-long ban on the import of meat, seafood, fruit and vegetables, as well as milk products from the European Union, the United States, Canada, Australia and Norway as a response to Western sanctions.
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