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Message:: [QUOTE="C Jay, post: 1365709, member: 13184"]Here's one interesting case. In the 2003 case of Robert Kahre vs IRS, the courts ruled that the United States operates a dual system of currency and that it is permissible to pay employees in gold and silver coins at face value. In other words, I may make only $3000.00 a year, but I end up with a stack of 60 gold eagles but only pay on $3000.00 in pay roll tax. I of course would have to pay capital gains on any conversion, have a team of accountants and lawyers, and also expect be on the IRS most likely to be audited list. Mr Kahre was later convicted for 1099'ing employees. So, getting back on track.....  Should the two systems become fixed (Nationalize the FED and set gold at $2000.00 an ounce), then a massive reduction of the money supply would be required leading to an economic SHTF scenario. If we set the price of gold to match the number of FRN's, then the treasury debt holders are Edited Rul*s (a.k.a. the world) and no one would be able to buy any of that really expensive stuff from China. If we try a fractional reserve approach, then you can kiss the private ownership of gold goodbye. The ultimate problem with gold currency remains the same as it was back in the late 1890's when they first started talking about coming up with another paper backed system. There simply isn't enough gold to bring in the harvest.[/QUOTE]