by moneymetals
In a recent episode of the Ron Paul Liberty Report, Dr. Ron Paul welcomed Jp Cortez, an influential sound money advocate and policy expert from the Sound Money Defense League, an extension of Money Metals Exchange.
The conversation explored the growing movement to eliminate taxes and regulations on gold and silver, paving the way for the remonetization of sound money.
A Decade of Sound Money Advocacy
Cortez, a graduate of Auburn University and a frequent visitor to the Mises Institute, highlighted his journey and the Sound Money Defense League’s mission. Founded in 2014 as a project of Money Metals Exchange, the organization has made significant strides in reducing obstacles to using gold and silver as money.
“We focus on eliminating taxes and regulations that create friction,” Cortez explained. He also discussed efforts at both state and federal levels, such as working with Congressman Alex Mooney from West Virginia to introduce bills auditing America’s gold reserves and removing federal capital gains taxes on gold and silver.
Historical Lessons and Founding Wisdom
Dr. Paul emphasized the historical lessons the United States should heed. He recalled the Founders’ mistrust of fiat currency, such as the Continental dollar, which became worthless during the Revolutionary War.
“The Founders knew the dangers of paper money,” Paul stated, referencing writings by James Madison and others condemning fiat currency.
Cortez echoed this sentiment, stressing that sound money facilitates long-term planning and acts as a bulwark against reckless government spending.
Taxing Money: A Persistent Issue
A major focus of the Sound Money Defense League is the elimination of sales and capital gains taxes on precious metals. Cortez provided an update:
“Today, only five states still charge sales tax on precious metals—Kentucky, Hawaii, New Mexico, Vermont, and Maine. We’re expecting legislative action soon to change this.” However, capital gains taxes remain an issue in 37 states, further complicating the use of gold and silver as money. Cortez described these taxes as “government-imposed shackles” that make precious metals unworkable as a currency alternative.
State-Level Initiatives and Depositories
The interview also touched on state-level initiatives. Texas, for instance, once held $1 billion in physical gold for its teacher pension fund and established a state depository to store gold domestically, though it later divested from the position.
Meanwhile, states like Ohio hold gold in the form of ETFs, and Utah has authorized an $80 million purchase of physical gold. “States are exploring ways to safeguard taxpayer money,” Cortez said, emphasizing the importance of physical gold ownership.
The Push for Accountability
Cortez and Dr. Paul discussed efforts to audit America’s gold reserves, which are supposedly stored at Fort Knox and other locations. Congressman Mooney’s bill seeks to verify the physical presence of the gold and determine if any of it is encumbered by leases or swaps.
Dr. Paul reminisced about previous attempts to push for transparency, noting that resistance to auditing the gold reserves has been longstanding.
A Global Perspective and Waning Trust
The conversation concluded with a discussion about the international ramifications of a declining dollar. Cortez pointed out that even U.S. states and adversarial nations like those in the BRICS coalition are seeking alternatives to the dollar, which they view as increasingly unstable.
“Trust in the dollar is waning,” Cortez asserted. Both he and Dr. Paul emphasized the need for public education on monetary policy and the importance of preparing for potential economic upheavals.
How to Get Involved
Cortez encouraged viewers to support sound money initiatives through the Sound Money Defense League website, where they can sign up for alerts and participate in advocacy efforts. “We make it easy for people to get involved and have an impact in their state,” Cortez said.
Dr. Paul concluded by expressing his appreciation for Cortez’s work, emphasizing that the fight for sound money is both an economic and moral issue. “Your work has inspired many, including me,” he said, underscoring the significance of the movement.
For more information on how to join the fight for sound money, visit soundmoneydefense.org and follow Jp Cortez on Twitter at @JpCortez27.
Key Questions & Answers
The following are the primary key questions and answers from this profound interview with Dr. Ron Paul and Sound Money Defense League’s executive director Jp Cortez:
What is the primary mission of the Sound Money Defense League?
The primary mission of the Sound Money Defense League is to eliminate taxes and regulations that hinder the use of gold and silver as money. They work at both state and federal levels to promote the remonetization of sound money.
How long has the Sound Money Defense League been active, and who supports it?
The Sound Money Defense League has been active for ten years, since 2014, and is supported as a project of Money Metals Exchange, a leading national bullion dealer with the largest precious metals depository in North America.
What obstacles prevent gold and silver from being used as money today?
Obstacles that prevent gold and silver from being used as money today include government-imposed taxes and regulations. These obstacles, such as sales taxes and capital gains taxes, create friction and make gold and silver unworkable as money despite their historical role as sound money.
What legislative efforts have been made at the federal level?
Legislative efforts at the federal level include working with Congressman Alex Mooney from West Virginia on bills to audit America’s gold reserves and remove federal capital gains taxes on gold and silver.
How many states still impose sales taxes on precious metals?
Only five states—Kentucky, Hawaii, New Mexico, Vermont, and Maine—still impose sales taxes on precious metals, though legislation is expected to change this soon.
What is the status of capital gains taxes on precious metals?
The status of capital gains taxes on precious metals is that only 13 states have eliminated these taxes, meaning 37 states still impose them. This complicates the use of gold and silver as money.
What initiatives have states like Texas and Utah undertaken regarding gold ownership?
Initiatives that states like Texas and Utah have undertaken regarding gold ownership include Texas storing $1 billion in physical gold for its teacher pension fund and establishing a state depository for gold storage, although it later divested from the position. Utah has approved an $80 million purchase of physical gold, which will be stored within the state.
Why is there a push to audit America’s gold reserves?
There is a push to audit America’s gold reserves to ensure that they are physically present, unencumbered, and not pledged in leases or swaps. The current state of America’s gold reserves is unclear, and a thorough audit is needed for transparency.
What historical events emphasize the need for sound money?
Historical events that emphasize the need for sound money include the collapse of the Continental dollar during the Revolutionary War and the closure of the gold window in 1971. The Founders understood the dangers of fiat currency, which has led to economic instability.
How can people get involved in the sound money movement?
People can get involved in the sound money movement by visiting soundmoneydefense.org to sign up for alerts, participate in advocacy efforts, and stay informed about key legislative battles. The organization provides resources and pre-written messages to make advocacy easy.