Arizona State Rep. Mark Finchem: Inflation is Theft

I think I’m gonna start with, if you don’t mind, I believe you have a paper handout – did that go out? Okay I’ll dispense with the power point presentation. The first thing that I wanna do is open with, when this Morgan silver dollar was minted by the us government, it was a dollar. One dollar. Okay Today, the same coin is equal to 20 dollars. And I think that we have all since childhood heard about the idea of inflation. What the IRS has figured out at the federal level is how to tax inflation as a gain. We call it capital gains because they want to say that you buy this with this. The truth couldn’t be any further than away from that position. This is an exchange one type of currency for another. So what this bill seeks to do and I’m not gonna belabor the point because I’d like to get to our guest who would like to talk about honest money. Basically it allows for we remove, at least in the state of Arizona, the taxable feature of exchanges of one type of currency for another. Now you may hear something from Department of Revenue this is very difficult to do, but at the end of the day we are the policy setting body. And when the mechanics of money come in conflict with the mechanics of government yes they’re going to butt heads. But I think that we’ve got a grand opportunity in this case to protect at some small level, the opportunity for Arizona residents to protect their “investment.” Actually it’s a conversion of one type of currency for another because of a lack of trust. Now one of the things I like to call your attention to in that document that I have said to you is the idea that there’s been this quiet theft going on over time. You’ll notice the document that has a House, has eggs, has hard money, and then has fiat currency. I find it interesting that in 1957 a 1600 square foot house would cost roughly the equivalent of 37,700 eggs. Which would be 13,500 silver dollars, which in that day would have been 13,500 silver certificates. Now today we move forward to, and this is just 2007 because it’s when this was prepared, that same house which still cost the equivalent of 37,700 eggs. And it would still be roughly 13,500 silver dollars. However, in Federal Reserve notes it would be 175,000 dollars. That’s called inflation So when somebody takes that 13,500 dollars in silver dollars and exchanges them for federal Reserve notes, the IRS says that that’s taxable event. But that’s the exact same organization that is charged with responsibility for supporting the value of currency. Currency meaning the paper Federal Reserve note. Now the last thing that I’ll mention is that on this what we call dollar bill, the very top it says Federal Reserve note. I’m a real estate agent, so let me put this in real estate terms because I know just about everybody here should have a house. If you don’t I would be happy to talk to you about it. When you purchase a house, unless you pay cash for that house, you have a deed of trust, which is evidence that you have ownership the simple ownership in that property that real property, And you have a note that your purchase property note that is the the evidence of the loan which by way of definition a note is an evidence of debt. So what we’re really doing is we’re trading thin slices that are evidence of debt, daily pretending that it’s money. And until you extinguish this debt, with the exchange for something that is real, you are the carrier of the debt of the federal government. So to assume that you have been carrying the debt for the federal government for however long and move that into real property that you should suffer a tax consequence for that exchange of currency, authorized by the US Constitution, minted by the US mint, or printed by the Federal Reserve, until you extinguish that debt, you remain the carrier of debt. So with that I’d be happy to answer any questions that you might have. Members any questions for the sponsor? Thank you very much, apparently you did an excellent job.

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