With a couple of currency management exceptions along the way, China has mostly encouraged its citizens to acquire gold. The central bank of China has been busy stockpiling gold as well.
China seems to understand the age-old lesson that nations that are net acquirers of gold rise in economic might. Those that dishoard their gold lose their vitality.
What a contrast China’s attitude is to the US where globalist government has squandered so much of the peoples’ gold. Some it gave to the sketchy, crony International Monetary Fund. Bad move. More of the peoples’ gold the Treasury auctioned off in a failed attempt to suppress the gold price. Another bad move.
Here is a rule of thumb that has stood up well throughout the ages: if the government doesn’t want you to own gold, its probably a good time to buy more.
Issuers of fiat currencies are always hostile to gold and must suppress it at the first hint of a challenge. After all, the money printing flim-flam works by the State appropriating some of the value of the currency. If people are wise to the game and refuse to hold the State’s currency, there is no one to fleece.
That is why tax policy is hostile to gold and silver. They represent superior competitors to dollars that roll right off the digital printing press by the trillions with nothing more than a computer keystroke.
As we are becoming fond of saying, they cannot print gold and silver!
Now one congressman has decided to do something about the State’s financial engineering of individuals. Just days ago, Representative Alex Mooney (R-WV) introduced legislation to remove all federal income taxation from gold and silver coins and bullion.
“My view, which is backed up by language in the US Constitution, is that gold and silver coins are money and are legal tender,” said Mooney. If they are indeed U.S. money, it seems there should be no taxes on them at all. So, why are we taxing these coins as collectibles?”
Mooney’s bill, the Monetary Metals Tax Neutrality Act, states that “no gain or loss shall be recognized on the sale or exchange of (1) gold, silver, platinum, or palladium minted and issued by the Secretary at any time or (2), refined gold or silver bullion, coins, bars, rounds, or ingots which are valued primarily based on their metal content and not their form.”
The text of the H.R. 2284, the Monetary Metals Tax Neutrality Act can be found here.
We note that this is not the first measure that has attempted to address the issue. We have watched similar measure fail over the years, and in fact this is a re-introduction of the Monetary Metals Neutrality Act. It has been assigned to the House Ways and Means Committee. If the past, as is often said, is prologue, the measure will die there.
We will keep an eye on it.