Death and Taxes... A Follow-Up

The silver is mine, and the gold is mine, saith the Lord of hosts. - Haggai 2:8 (KJV)

In our previous article, we explored current tax problems in Montana and possible avenues for reform. It should come as no surprise to our readers that a single article on the topic is insufficient to accurately portray how bad things have become.

While taxation is definitely part of the problem, another lingering issue is with money itself. Even if enough politicians came together to pass tariffs on “out-of-state snowbirds,” without fixing the hidden tax of inflation wealth problems in our state and country will continue to spiral out of control.

Far from being the root of all evil, the reason our dollar is worth less every year is because it is no longer exchangeable for gold or silver. But how did that happen? And what does the constitution say?

Who Controls our Money?

Article 1, Section 10 of the US Constitution explicitly states: “No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make any thing but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.” (emphasis added)

Our departure from a gold-backed currency in America spans centuries. As far back as the war of 1812, efforts to centralize American banking and financial control culminated in 1913 with the passage of the Federal Reserve Act.

Ironically, the reason President Woodrow Wilson may have signed off on the Act over fears of rampant inflation. The gold rush in the late 1800’s led some economists to speculate that the discovery and mining of so much “new” gold would displace existing wealth held worldwide, leading to economic catastrophe.

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.” -Woodrow Wilson

By 1971, President Nixon fully suspended the dollar convertibility to gold. To fully illustrate what this did to our dollar, let’s examine purchasing power relative to gold and silver prices. In 1965 the minimum wage was $1.25, or five silver quarters. This contained a melt value slightly less than a single ounce of silver. Today, an ounce of silver is over $30, while Montana’s minimum wage in 2025 is a mere $10.55.

Average housing prices in the 1960’s ranged from $12,000 to $20,000, depending on where you lived. Gold prices ranged from $35 to $40, depending on year. For a few hundred ounces, you could buy a home. Today the price of gold is over $2,600 per ounce, which means that for the same few hundred ounces, you could still afford a house in Montana’s insanely expensive real estate market.

The comparison works on plenty of other metrics like gas, food, clothing, or car prices. Gold and silver beats the fiat dollar just about every time. No wonder younger generations are no longer willing to work. Our money is worth less every day, and employers aren’t willing to pay wages in silver quarters.

Recognizing Gold and Silver as Legal Tender So, what can be done? A growing number of states in the U.S. have recognized gold and silver as legal tender, with more states either still in the process, or have tried and failed to do so legislatively. This move back to monetary metals effectively eliminates the capital gains tax incurred when selling or transacting in gold or silver. If every state were to succeed in such a venture, it would greatly hinder the federal reserve's ability to manipulate our money.

Oro y Plata

In Montana, legislation titled the “Establish the Legal Tender Act” was introduced in early 2023. By March of the same year, the bill was effectively “dead” after missing a deadline for bill transmittal. It remains to be seen if future efforts will fare any better, but it’s possible that international pressures from BRICS countries who are returning to a gold-backed standard may provide the catalyst.

Trump and Tariffs

President Donald Trump recently took to his Truth Social account to comment on the BRICS alliance, threatening the countries who are fleeing from the U.S. dollar: “The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is OVER. We require a commitment from these countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty U.S. dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful U.S. economy... There is no chance that the BRICS will replace the U.S. dollar in international trade, and any country that tries should wave goodbye to America.”

If President Trump is serious about maintaining dollar dominance amid a resurgence in gold and silver money, he would be wise to do the same. Excessive tariffs would only result in Canada becoming a 51 st state, while a rapidly inflating fiat dollar wouldn’t be able to keep up with gold backed international currencies.

It is often said that the definition of insanity is doing the same thing over and over again and expecting different results. History is full of examples of rampant inflation and fake currency destroying nations. Let’s avoid the same fate by turning back to gold and silver money, before it’s too late.