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Montana House of Representatives
Honorable Members of
The State Administration Committee
Dear ladies and gentlemen:
We are presenting the case for HB 639
“Sound Money” for the State of Montana. We have assembled a group of
highly qualified and world renowned experts on constitutionally “sound
money” to walk you through the process. We will help you to understand
the events that took us from a very stable asset backed monetary system
to a very unstable system of fiat currency. We will explain the reasons
we need a return to sound money, the steps required to re-establish sound
money, and the mechanics of a system to administer sound money policy.
We will show you how this system can be implemented with
minimal impact on the continued use of Federal Reserve notes and coin of
the realm (legal tender). Our object isn’t to forcibly
replace Federal Reserve notes with sound money. History and the dynamics
of a failing financial system will likely do that without any input from
us. Passage of this Bill will provide the option, template and
the mechanism to give Montana a worthy alternative to insolvency
should the existing Federal Reserve System fail. To provide Montana
with an insurance policy of this magnitude at so little actual cost is
fiscally responsible and a tangible demonstration of your commitment to
our State and the well being of your constituency. With the exception of
the deposit mechanism of the Tobacco Tax the conduct of State business
will be unaffected by this legislation. Tobacco distributors will be
required to pay the tax proceeds into a gold depository account that will
convert them into gold bullion. This will provide the seed money for a
trust account owned by the State that will be 100% backed by gold and
silver. The State of Montana will have, in one simple process, put in
trust a percentage of it’s tax receipts that are actually backed by
something other than “the faith and credit” of a system of fiat money
rapidly running out of both faith and credit. The conduct of
business using the proceeds of the Tobacco Tax will remain the same. No
tobacco tax funded programs will be reduced or eliminated.
Should
the Federal Reserve find a way out their many complex
problems and again become a stable system, the “sound money” account could
be liquidated and closed at the discretion of the State. If however; the
Federal Reserve System becomes more unstable and the ability of the US
“dollar” to hold it’s position as the world’s reserve currency becomes
questionable, this “sound money” concept can be easily expanded to
accommodate a larger portion of the State’s budget.
Representative Bob Wagner
Sincerely,
Friends of Montana
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