Posted by AzBlueMeanie:
The Birthers-Birchers-Secessionists of our Tea-Publican controled legislature have a sad today. Apparently some things are just too crazy even for Governor Jan Brewer to sign off on. The Governor vetoed the paranoid end-times apocalyptic fantasies of Glenn Beck conspiracy theorists. Brewer vetoes bill making gold legal tender:
Those gold and silver coins will have to stay hidden in the closet and locked in safety-deposit boxes for a bit longer.
Gov. Jan Brewer on Thursday vetoed a bill that would have made gold and silver coins legal tender in Arizona.
“While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation,” Brewer wrote in her veto letter. “The provisions in this legislation need to be more carefully examined.”
Specifically, she wrote, it is unclear whether the legislation would provide income-tax exemptions to transactions involving gold and silver coins, giving certain businesses “an unfair tax advantage.”
Senate Bill 1439 would have authorized the use of coins or bullion containing gold or silver to pay a debt. The coins must have been issued by the U.S. government or approved by a court, such as the American eagle gold-bullion coin. But no person would have been required to use or accept gold or silver as legal tender.
The bill mirrors legislation Utah passed in 2011 and was part of a conservative movement arising out of a lack of confidence in the Federal Reserve and a fear that paper money could become virtually worthless as U.S. debt deflates the value of the dollar.
Opponents called the movement crazy, a waste of legislative time and nearly impossible to implement. Utah still has no organized system for spending and accepting gold and silver.
It is also unconstitutional and prohibited by law. Article I, Section 10 of the U.S. Constitution explicitly forbids the states from issuing "bills of credit" (paper or "fiat" money) or making anything but gold and silver coin legal "tender." There is no corresponding explicit prohibition against the federal government, nor any explicit authorization. Article I, Section 8 of the Constitution specifically gives Congress power to "borrow money" and also power to "coin money and regulate the value" of both U.S. and foreign coins. The federal government first issued paper money in 1861 in order to fund the Civil War by an act of Congress, the Legal Tender Act of 1862. The Legal Tender Cases, Knox v. Lee and Parker v. Davis (1871), and Juilliard v. Greenman (1884), upheld the constituionality of the Act.
The U.S. took gold coins out of circulation in 1934 with the Gold Reserve Act. Richard Nixon took the U.S. off of the "gold standard" in 1971.