US States Push Gold Bullion as Currency Agenda, David Morgan Interview


Ellis Martin: The following segment is sponsored
by El Tigre Silver Corp., trading on the TSX Venture Exchange under the symbol ELS.v and
on the OTCQX as EGRTF. El Tigre Silver Corp. is focused on silver exploration and development
in prolific Sonora State, Mexico. Find them on the web at ElTigreSilverCorp.com. Join me for a conversation with a frequent
guest of the show, David Morgan, the Silver Guru, an expert on money, metals, and mining,
also, a lecturer and an author. Mr. Morgan has written Get the Skinny On Silver Investing,
available on Amazon.com. His website is TheMorganReport.com. David,
welcome back to the program. David Morgan: Ellis, it’s always good to be
with you. Ellis Martin: You made me aware of this article
on Bloomberg.com before I could get to it this morning. It’s pretty big news. “Trust
in Gold, Not Bernanke. As U.S. states promote bullion with more than 12 states pushing for
legislation to accept gold as currency.” David Morgan: Yes. It’s big news to me. Basically,
a lot of states are waking up to the fact that they have the right to settle in gold
or silver or both. Utah was one that’s passed legislation. And, if you take time to read the article
(it’s a pretty short article), what you’ll find is that, one, the Constitution forbids
the states from coining money, but it also forbids them from making anything except gold
and silver legal tender in paying debts. Which, of course, always raises the question; I’ve
thought about this for years: If you’re paying your property taxes through the state or municipality
or you’re paying some kind of state debt, if you’re paying them in a privately-constricted
script, i.e. a Federal Reserve note, and you’re not paying them in gold and silver, are you
breaking the law? No one has really brought that up. That’s a side issue but it’s something
to think about. And you know me, Ellis. I love to make people think. One of the things this article brings out,
and they’re partially correct, is, you know, it’s really tough to implement. And that’s
where I disagree. Because if you’re actually taking coins to the marketplace and you’re
giving someone a 1-ounce silver coin, how do you make change and all that. And from
that aspect, yes. It is cumbersome. It is difficult. The price changes day-to-day. And, remember, people. It’s not that the coin
changes. The coin stays the same. The price changes because of destruction of the dollar
ebbs and flows. Sometimes it’s worth more; sometimes it’s worth less. But that ounce
of gold, ounce of silver, half-ounce, quarter-ounce, whatever it is; that measurement, that weight
today, is the same. Coming back on point, there’s an easy way
to implement this. And that is to use a depository and have the depository put in the gold and
silver and then issue a debit card, not a credit card, but a debit card, so it’s only
backed by the amount of silver or gold or both that you have in the account, and then
you use that in daily transactions and in that case you can get down to a gram of gold
or half a gram of .0001 gram or whatever it takes to make the transaction transparent
to the people accepting the debit card. And this has been implemented. There is a
gentleman in Spokane, Washington that has put together a program with any precious metal;
it can be gold, it can be silver, platinum, palladium. You’re issued a debit card and
it works exactly that way and it’s a wonderful way to implement a return to gold and silver
for the state. So, I’m involved with that. We had them at
the Silver Summit. You heard me a couple of years ago. Got the idea, and he’s the only
one, to my knowledge, that’s actually implemented this program. There have been other ones like E-gold that
kind of crashed and burned. I don’t know the details; I don’t want to bad-mouth it. But
this is the only one that I’m aware of that’s kind of up and running and actually working. So, it isn’t that hard today, in today’s electronic
world, and believe me: What’s the difference in a piece of plastic? I mean, this is a way,
almost everyone in the states, anyway; Canada. I mean, most of the civilized world, quote-unquote
“civilized,” go about their daily business. I’m really pumped up about this. I think it
just needs a little bit more of a push to implement it in these other states where it
can be really used. Because the idea is great; it’s just that people get the wrong idea that
it has to be a coin over the counter. And, again, that can be cumbersome. Ellis Martin: The question comes to mind about
taxing gold and silver transactions. What are your thoughts? David Morgan: Yeah, absolutely, that’s kind
of the biggest hurdle, so to speak. In the case that I’m referring to, with the debit
card, every transaction, of course, is recorded. And so you are logged in at that day and that
price and what you paid for your 10 gallons of gas and if the silver or gold that you
used was a profit or a loss to you. So, you’ll either have a plus or minus net
to that transaction. And it’s all done for you. You don’t have to do anything. You just
save those puppies up, you get one each month, like any debit card statement, and you circle
the plusses and you circle the minuses and you add them up and you’ve either got a loss
or a gain at the end of the year. Simple, simple, simple. So, really, this guy has thought this thing
through all the way. I think that this is very important. And, of course, as the article
says, Ellis, and I know you’re aware of it, that some states are just bypassing the state
tax on this. But of course you’re dealing with the Feds, you know, that’s an entirely
different matter and if you’re so required then, of course, this, again, accounting is
taken care of for you. So, it’s not, again, something that is that
big a deal. I mean, answers to some of these questions are really not that difficult. It’s
just that, you know, just a few people so far, again, from what I know sat down, thought
it through, and said, “Look. You’ve got the accounting software. All you’ve got to do
is look at what the basis is for when you bought the gold, when you bought the silver,
and you’ve either got a gain or a loss. Or a push, in some cases. Let’s say it’s $30
silver and you’re using it that day and there’s no profit or no loss. That could be the case,
probably rarely, but anyway, it’s not difficult. Ellis Martin: You know what’s interesting
about this? It makes me glad that we have 50 separate republics or states within the
United States. The states weren’t really homogenized into a sole federal government with no states’
rights. But I don’t see a state like California or New York participating in this, do you? David Morgan: Probably not, but that’s the
beauty of states’ rights and that was sort of the idea, you know. If you’re super bent
on, oh, let’s say, a certain religious belief, and I’ll use Utah and you’ve got a lot of
Mormons, then you move to Utah. If you’ve got a certain place where you’re a big gambler,
you think that gambling is your thing, then you move to Nevada. If you don’t want any
gambling, you’re in a state that doesn’t want it. Now, that was sort of the idea. Not one-size-fits-all.
In the founding idea, we were all created equal, but that doesn’t mean we’re equal physically.
It doesn’t mean we all look alike. It doesn’t mean we have the same IQ. It doesn’t mean
that. What it means is that our rights, our ability to have our own way of living free,
is protected and given by God and protected by the Constitution as long as we don’t infringe
on someone else’s God-given rights. It’s really that simple. So, you really just
have to live your word and treat others as you want to be treated and you go on. Now,
that doesn’t mean that some people don’t want, like, say, drug usage or whatever. And there
are some that don’t. So they kind of filter into their own little groups, so to speak,
and; I’m Libertarian. You know, as far as I’m concerned, I’m really anti-drug. I don’t
really care for drugs. But you know what? If you do, go for it! It’s not my right to
tell you what you should do or not do with your free time. Ellis Martin: And the state of Washington
is saying that you can do that. David Morgan: Exactly. Precisely. And it’s
fine with me. You know, for me, I don’t want them. For me. That’s all I can really decide.
I can’t say if it’s right for John or Joe or Mary or Beth. I don’t really care. It’s
their body. It’s their right to choose. I like this idea of more freedom, and that’s
what this is about. Ellis Martin: We’ll be right back. The Ellis Martin Report is sponsored by El
Tigre Silver Corp., trading on the TSX Venture Exchange under the symbol ELS.v and on the
OTCQX as EGRTF. Silver has been considered a precious metal for 6,000 years and currency
since 600 B.C. It’s been commercially mined in Mexico since 1530 in mineral-prolific and
mining-friendly Sonora State, where El Tigre Silver Corp’s 5,000-meter drill program is
now underway. El Tigre’s properties with gold and silver mining concessions stand approximately
267 square miles. With an attractive share structure and a strong,
proven management team, El Tigre Silver Corp. is poised to identify a resource in an area
that from 1903 to 1938 produced 75 million ounces of silver and 380,000 ounces of gold.
Additionally, their tailing stockpile is currently progressing to production. Learn more about
El Tigre Silver Corp. by visiting their website ElTigreSilverCorp.com or click through El
Tigre’s logo on the home page of our website EllisMartinReport.com. We offer expert opinions only. Find them on
our website EllisMartinReport.com. That’s EllisMartinReport.com. Ellis Martin: I think I’d like to learn, and
perhaps our audience would like to learn, more about this debit card thing backed by
gold. David Morgan: If you’re interested in learning
more about this debit card situation, just send an email to: [email protected]
That’s support, s-u-p-p-o-r-t at silver-hyphen-investor dot com. We’ll forward them on to Dale Olmstead.
It’s Dale Olmstead who started this debit card in Spokane, Washington, and I’m sure
he’ll be happy to give you some more information. Ellis Martin: Are you very involved with him
in this project? David Morgan: Well, I gave him the idea, so
to speak, because I was speaking at the Silver Summit two years ago talking about this issue:
states’ rights and the implementation of gold and silver being used in Utah and how they’re
kind of leaning, because they actually had passed it. Some of these other states have
thought about it but haven’t moved it through the legislature. And I said really the only
way I see it working is by a debit card, as I outlined on your show just now. And this guy took the bull by the horns and
said, “I’ve got it!” I said, “OK, come on.” You know? Because I’ve been trying, I’ve worked
with others, I’ve worked with some bankers, and just never was able to really get it off
the ground. And he did. And so I went down and met with him and sure enough, signed his
nondisclosure agreement so I could read how it’s done. It’s beautiful in its simplicity. And, again, it addresses every issue straight
on and honestly. It addresses the tax issue. It gives you an accounting so that you can
do that. It addresses the profit or loss, as I just outlined. It addressing making a
transaction very easy for both sides. So, all of these issues that come up in this article
are addressed, and they all work. Ellis Martin: So, again, if there are any
questions about this, send an email to [email protected]? David Morgan: Right. And if you could put
in the subject line “silver debit card” or “gold debit card,” “debit card,” or something
like that so we can sort them. We get a ton of email and yes I do have a pretty good-sized
staff but this may generate more questions than I want to deal with. We will forward
them on. Don’t expect David Morgan to answer these but we will forward them on. Ellis Martin: David, thanks again for joining
us today on the program. David Morgan: My pleasure, Ellis. Thank you. Ellis Martin: I’ve been speaking with newsletter
writer and analyst David Morgan. His website is either TheMorganReport.com or Silver-Investor.com.
Both addresses will get you there. If you’d like info on what we just spoke about, again,
email David’s crew at [email protected] Listen to this segment again on the podcast
page of our website, EllisMartinReport.com, or find the Ellis Martin Report on iTunes. This segment has been sponsored by El Tigre
Silver Corp., trading on the TSX Venture Exchange under the symbol ELS.v and on the OTCQX as
EGRTF. El Tigre Silver Corp. is focused on silver exploration and development in prolific
Sonora State, Mexico. Find them on the web at ElTigreSilverCorp.com.

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