Nick Badalamenti August 19, 2016 at 10:22 AM
In all the discussions surrounding FRB and its evil, it always seems like what is ignored is the role that "legal tender" laws play in all of this.
Under a system in which people are able to choose what currency they can use without compulsion (tax), penalties, etc.
I believe your second sentence makes clear that it is more than legal tender laws that present an issue; further, I am not sure legal tender laws present all of the obstacles attributed to it regarding the issue of competitive currencies / etc.
Legal tender is currency that cannot legally be refused in payment of debt. The Coinage Act of 1965, specifically Section 31 U.S.C. 5103, defines legal tender as "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."
To my understanding, legal tender must be accepted for the reasons (and only the reasons) listed: all debts (public and private), public charges, taxes, and dues.
This does not preclude agreements for payment in other forms, nor does it force a vendor to accept legal tender in all cases for goods and service (where there is not debt to discharge):
This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no federal statute requiring a private business, a person or an organization to accept currency or coins as for payment for goods and/or services. Private businesses may adopt their own policies on whether or not to accept cash as long it doesn't violate state law. For example, a business may refuses to accept payment in pennies or large denomination bills as a matter of policy. (Emphasis added)
One can certainly accept gold or anything else as payment, I am quite certain. Of course, this raises issues that you mention in the second sentence (taxable event). But this is not a legal tender issue, it is a tax issue.
To have a reasonably effective possibility of a competitive currency / money / credit / banking system I believe requires the following:
· The government must end all monopoly-sustaining practices: government mandated central banking (private cartels will arise and I find these acceptable as long as private means private), government deposit insurance schemes, government regulation, etc.
· The government must accept tax payment in any form – certainly at minimum in the form the income was earned / recorded.
· Currency transactions are not taxable events.
· End legal tender – the tool to force acceptance in a form of payment for debt, taxes, etc.
I suspect I am missing one or two items.
I regularly point out the monopoly as the problem because I believe it is the most pernicious component. Without the monopoly protection the emperor will be exposed as naked.