Pre-Secession Action for States

August 11, 2011

By Russell D. Longcore exists for only one reason…to promote the orderly secession from states of the United States of America to sovereign nationhood.

Actually, there is a second reason…because I need a place to vent my spleen and through writing, make a life-changing difference in the lives of others.

So, today let’s talk about what states should do before they secede. I say “should” do, since the states of the Soviet Union did not do these actions before they seceded. But things are much different now than they were in 1989, so American states must do basically two things to prepare for their secession.

1. Create a monetary system.

States could begin training their citizens now to use gold and silver by requiring them to pay their property taxes, ad valorem tax, etc., with gold and silver, either in coins or with some sort of electronic gold account. This could even be done now while the hard asset value is tied to the US Dollar. After all, the US Constitution says (Art. I, Sect. 10) that “no state shall make anything but gold and silver coin a tender in payment of debts.”

So the obvious question arises: why does ANY state accept Federal Reserve notes as payment of debts, including taxes? Clearly they are prohibited from doing so by the Constitution. Answer? The states abdicated their authority to Washington and became wards of the Federal government.

I recommend that the state pass legislation that allows for the private minting of gold and silver coins. The law should define money in terms of fineness (purity) and weight, not value. Coins would no longer have a stamping that says “One Dollar,” “Five Dollars,” “Fifty Dollars,” etc., but only the weight of the coin (such as 1/20th ounce, 1/10th ounce, One Ounce). This will allow the free market to determine the value of the coins. The law will provide that gold and silver may be exchanged for other currencies without creating a sales tax or capital gains tax event. That would allow anyone around the world to exchange any currency for gold and silver coins.

Banks and gold/silver depositories could accept deposits of coins and bullion, and issue debit cards that individuals and businesses could use for market transactions, in similar manner to what banks do already with checking and savings accounts. Or, you could simply carry around some coins in your pocket or purse, just like you do today.

At some point, switching over to a gold/silver monetary standard will require us all to stop thinking about the value of a coin against the US Dollar. This will especially be true as hyperinflation burns through the American economy. It will be ridiculous to think of a one-ounce gold coin worth $5,000 or $10,000. That is backward thinking. The truest comparison will be to use the coin as the standard and see that one ounce of gold buys $5,000 or $10,000 Federal Reserve notes. It’s a subtle difference in perspective but crucial to your thinking process and understanding of the gold/silver standard. We will have to get used to thinking about transactions in terms of how many ounces they cost. It will be much like the transition from the Avoirdupois scale to the metric scale.

To make transactions in the marketplace, sellers will price their goods and services by weight of gold or silver. The buyer will either hand over coins, or use the debit card. The cool thing about the debit card is that it facilitates purchases down to 0.001 ounces for the smallest transactions. And with computers, cash registers and the smallest calculators, each can be programmed to calculate the exchange rates between gold and silver.

One of the other benefits of a hard money monetary system is that it will wring the American Dollar inflation out of the new nation/state’s economy. Prices will tumble over time, causing buying power to skyrocket. Think about buying a 20-ounce bottle of Coca-Cola for 0.010 ounces of silver…maybe even less.

Utah passed a bill earlier this year legalizing gold and silver coins as currency and 9 other states are considering the same. So this idea is not without its enthusiasts here in the USA.

Seceding states MUST create new money for their new nation. Everything hinges on their money…commerce, taxation and the very existence of the new nation. The rest of the world has tied itself to fiat money, and look at what is happening worldwide. The only alternative is to get outside the fiat money system and adopt a hard money system. Screw this up and you’re burnt toast.

Recreate the State Militia

The state legislature should look into its state constitution and see if the state militia already exists. If it does, the state should fund the organization and training of the state militia. If it does not, look to the constitutions of the 18th century states and follow their lead. Or mimic Switzerland. The citizenry will buy their own weapons and ammunition, as well as uniforms and other equipment. Those financially unable to participate could be placed in support and administrative positions. But think about it…do you know ANY nation around the world that doesn’t have its own military in some form? I don’t, either. And any state that seriously considers nationhood will have to act like a real sovereign nation. There is no better time to begin that process than prior to the collapse of the dollar, hyperinflation and the meltdown of DC. The state militia may be of use quelling civil disorder during the early days of the chaos that will follow the dollar disaster. So I urge states to follow the old Boy Scout motto…”Be Prepared.”

At this point in history, I do not recommend that any state give consideration to any more issues in secession than these two issues, money and militia. You can read more at my articles Secession and the Power of the Sword and Secession and the Power of the Purse.

Secession is the only hope for mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.