Utah could lead country toward competitive internal currencies


Rethinking Utah's Monetary Policy

By Larry Hilton and Rich Danker
Deseret News, Salt Lake City
Friday, July 1, 2011


Troubling trends currently hamper America's prosperity. Many now recognize that one of the greatest threats lies in the precarious condition of today's U.S. dollar. Sadly, the mounting waves of currency debasement have become the central feature of U.S. monetary policy. Looming stagflation could signal a devastating financial tsunami first set off by America's final abandonment of the gold standard under Nixon in 1971.

Until our currency returns to safe harbor reconnecting with a reliable, proven anchor, we'll likely remain adrift in a monetary system that produces rising prices, financial disorder and runaway government spending.

Ronald Reagan once observed, "I do not want to go back to the past; I want to go back to the past way of facing the future." In that spirit, Utah has charted a way forward based on time-tested, proven principles. During the recent general legislative session, the Utah Legal Tender Act passed both chambers and was signed into law by Governor Herbert.

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Golden Phoenix Shareholder Conference Call To Discuss
Start of Gold Production at Mineral Ridge Gold Project

Company Press Release, June 27, 2011

SPARKS, Nevada -- Golden Phoenix Minerals, Inc. (GPXM) has scheduled its second quarter 2011 shareholder conference call for Tuesday, July 12. Shareholders are invited to participate in the call, will begin at 1 p.m. Pacific and 4 p.m. Eastern time.

Company management will provide updates on accomplishments in the second quarter and explain how the company's royalty mining growth strategy is expected to unfold in the second half of the year.

Topics to be updated include the start of gold production at Mineral Ridge, developments on the Vanderbilt Silver and Coyote Fault Gold projects, the Shining Tree and Peru projects, and drilling plans for 2011. Questions from shareholders will be answered as well.

"Thirteen months after closing the joint venture between Golden Phoenix and Scorpio Gold, the Mineral Ridge property has entered gold production," said Tom Klein, CEO of Golden Phoenix. "Last week both companies completed joint tours of Mineral Ridge. We look forward to providing a complete update on our conference call."

Participation in the shareholder conference call can be arranged by telephone, webcast, or Skype. To participate, dial 952-356-0015 and enter Conference ID 419582#.

For the company's full press release, please visit:


Golden Phoenix (GPXM) is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here: http://www.GoldenPhoenix.us

The bill essentially restores the hard money options enjoyed by generations past. American greatness rose on the strength of a dollar that was "as good as gold," and if our nation ever sinks, it will likely come in the wake of the dollar's demise.

The new Utah law derives its legal authority from Article I, Section 10, of the U.S. Constitution, which provides that no state shall "make anything but gold and silver coin a tender in payment of debts." This largely neglected constitutional check can, when actually exercised by the States, foster an important balance between concurrent state and federal monetary authority.

Our current paper money maelstrom has set in motion what Politico recently called a "surge of national interest" in gold-backed monetary reform. Others speak of the "currency revolution," which some have dubbed the "Utah Spring," with more than a dozen states considering a new, promising season of Utah-style monetary reform.

This fall leading legislators, economists, lawyers, bankers, financiers, academics, and politicians will convene in Park City, Utah, for a "Sound Money Summit" to hammer out a declaration of guiding monetary principles.

With aggressive plans under way to open local depositories, the private sector has been quick to respond to the first monetization of a gold and silver coin by a state in more than a century. Essentially, these new institutions will afford citizens an effective way to "inflation-proof" their dollars by making their everyday purchases with a debit card backed by the fair market value of their gold and silver coin holdings.

The Supreme Court recognized long ago, in McCullough v. Maryland, the inherent contradiction in taxing a medium of exchange. Thus, the Utah Legislature eliminated all state taxes on monetized gold and silver coin. Nevertheless, current federal law imposes a hefty 28 percent "collectibles" tax on such coins. In support of Utah and other states, such as South Carolina, which is currently pursing legal tender legislation, Senator Mike Lee. R-Utah, has joined his colleagues Jim DeMint, R-S.C., and Rand Paul, R-Ky., in introducing a bill to remove federal taxes on gold and silver legal tender.

"Good monetary policy is an important part of a healthy and prosperous economy," said Senator Lee on Tuesday. "Since the Federal Reserve Act of 1913, the dollar has lost approximately 98 percent of its value. This bill is an important step towards a stable and sound currency whose value is protected from the Fed's printing press."

As a final needed course correction in monetary policy, the DeMint/Lee/Paul bill could well guide the nation toward a sustainable monetary system. Having access to the full slate of constitutional currency choices -- gold, silver, and paper -- consumers will then be free, through their daily buying decisions, to participate in an organic, ongoing currency arbitrage -- one that may well guide our foundering dollar back to its original precious metal moorings through a de-facto, naturally occurring return to the gold standard.


Larry Hilton, a Utah attorney, founded the non-profit organization Citizens for Sound Money. Rich Danker is project director of economics at American Principles in Action, a Washington policy organization.

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Prophecy (TSXV: PCY) Secures Russian Far East Seaport Allocation
and Updates Ulaan Ovoo Mine Production

Company Press Release, June 14, 2011

VANCOUVER, British Columbia -- Prophecy Coal Corp. TSX-V: PCY)(OTCQX: PRPCF)(Frankfurt: 1P2) has arranged with the Port of Sovgavan in the State of Khabarovsk, Russia, so the company will have initial access to port allocation of 25,000 tonnes of coal per month starting this month, potentially expandable to 50,000 tonnes per month, representing 300,000 to 600,000 tonnes annually. Prophecy also will be assigned a coal storage area at the port.

This arrangement provides Prophecy's Ulaan Ovoo thermal coal mine with immediate access to the Asian seaborne export coal markets. Sovgavan is strategically located on the seaboard of the Russian Far East. The port is privately owned and can accommodate seagoing vessels of up to 160 meters in length, with the depth of loading site of 9.5 meters. The port has loading capacity of 6,000 tonnes per day and direct connections to Trans-Siberian railroads and uncongested Russian state highways.

Securing the port opens Prophecy to a significant number of coal buyers, and the company is placing top priority to conclude rail transport within Russia and coal offtake contracts.

Prophecy's Ulaan Ovoo mine commenced production in 2011. So far this year the mine has produced 200,000 tonnes of coal, which are being stockpiled. The average quality is 4,200 kcal/kg NAR with 5 percent ash and 0.5 percent sulphur. Those attributes compare favorably to the coal being purchased by local Russian and Mongolian power plants.

For the complete company statement, please visit: