Other states besides Utah looking at gold standard
edmundfitzgerald
Posts: 4,306 ✭✭
Kitco News) - Uncertain economic times and distrust of fiat currencies have people around the globe flocking to the safety of hard assets, with gold and silver the primary beneficiaries of that discontent.
Some U.S. state legislators are starting to also look at what they can do to protect their local economies and many are wondering how they can enact a gold standard. It’s unlikely, however, that states can go very far without being in conflict with federal law.
Most famously, Congressman Ron Paul (R-Texas) has advocated the abolition of the Federal Reserve and a return to a gold standard.
Lawmakers in several states, including Tennessee, Virginia, New Hampshire and South Carolina, have introduced bills to look into minting their own currencies in the event of a complete breakdown of the U.S. Federal Reserve. In Georgia, a bill to make the state only use gold and silver is in committee.
Utah has received the most media attention on this subject as the House and Senate have passed HB317, which would recognize gold and silver coins as legal tender and exempt them from certain state tax liability. Although the legislative session for Utah is over, Gov. Gary R. Herbert has until March 30 to veto the bill; if he does not, it automatically becomes law.
Some U.S. state legislators are starting to also look at what they can do to protect their local economies and many are wondering how they can enact a gold standard. It’s unlikely, however, that states can go very far without being in conflict with federal law.
Most famously, Congressman Ron Paul (R-Texas) has advocated the abolition of the Federal Reserve and a return to a gold standard.
Lawmakers in several states, including Tennessee, Virginia, New Hampshire and South Carolina, have introduced bills to look into minting their own currencies in the event of a complete breakdown of the U.S. Federal Reserve. In Georgia, a bill to make the state only use gold and silver is in committee.
Utah has received the most media attention on this subject as the House and Senate have passed HB317, which would recognize gold and silver coins as legal tender and exempt them from certain state tax liability. Although the legislative session for Utah is over, Gov. Gary R. Herbert has until March 30 to veto the bill; if he does not, it automatically becomes law.
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Comments
Reading that article now it seems fairly logical. How insane would this have sounded 5 years ago? How HUGE is it that 6 states are seriously discussing gold and silver minting and/or currency laws? I don't think the GDP (generally dumb public) recognizes the implications of these discussions and events.
The dollar is toast!
This is nothing more than politicans telling people what they want to hear rather than what they need to hear.
which would recognize gold and silver coins as legal tender
Would be interesting watching someone try to get change back from spending a Saint. Or if minted today, how big would a $1 silver coin be?
Knowledge is the enemy of fear
<< <i>This is nothing more than politicans telling people what they want to hear rather than what they need to hear. >>
People want to hear about efforts to return to a gold standard or a new monetary system? Maybe a small subset of the population, many of whom are on this board, but not J6P.
And frankly, I'd be surprised if those proposing PM-based state currencies aren't also trying to seriously solve their state's economic problems. Generally those politicians who understand the detriment of the fed reserve system also understand the need (and most importantly have the will) to balance budgets.
<< <i>
<< <i>This is nothing more than politicans telling people what they want to hear rather than what they need to hear. >>
People want to hear about efforts to return to a gold standard or a new monetary system? Maybe a small subset of the population, many of whom are on this board, but not J6P.
And frankly, I'd be surprised if those proposing PM-based state currencies aren't also trying to seriously solve their state's economic problems. Generally those politicians who understand the detriment of the fed reserve system also understand the need (and most importantly have the will) to balance budgets. >>
Exactly. Balance budgets. Stop spending more than you make and you wont have any problem. Invest in the future rather than the past. That is what will solve economic problems, not a return to a gold/silver standard.
Knowledge is the enemy of fear
The Saints are for wealth/insurance protection. It's the 90% silver and fractional gold pieces that would be used for shtf purchases. But if it came
down to it, I could see people hacking off pieces of that Saint. You might lose 5% making conservatie cuts, but better that than getting no change back.
A 4c (.999) silver coin would be about cut it. But if you wanted to make it out of 90% silver it would be approaching the size of a half dime.
Investing in the future also means saving. In that respect one's gold and silver holdings are a means of saving and ensuring capital is available down the
road when worthy projects show their heads.
roadrunner
<< <i>Would be interesting watching someone try to get change back from spending a Saint. Or if minted today, how big would a $1 silver coin be?
The Saints are for wealth/insurance protection. It's the 90% silver and fractional gold pieces that would be used for shtf purchases. But if it came
down to it, I could see people hacking off pieces of that Saint. You might lose 5% making conservatie cuts, but better that than getting no change back.
A 4c (.999) silver coin would be about cut it. But if you wanted to make it out of 90% silver it would be approaching the size of a half dime.
Investing in the future also means saving. In that respect one's gold and silver holdings are a means of saving and ensuring capital is available down the
road when worthy projects show their heads.
roadrunner >>
People could just as easily save dollar bills. If the US had it fiscal house in order then the dollar should hold value. No?
A half-dime weighs 1.24 grams. With silver at $37, one ounce made into 90% coins should yield 33.3 $1 coins. Each coin would contain 0.94 oz of silver. About 25% smaller than a half dime--or close to the size of a Type 1 $1 gold. But even if made to the same diameter of a half-dime, I imagine these would be difficult to circulate.
But, what if the price of silver went down. What would happen to these coins if "melt" was worth less than "face"?
Knowledge is the enemy of fear
While it is nice to see state govts rebelling against federal junk
paper money, their contemplated actions will always be viewed
unfavorably by the federal courts.
The instant proposals are good to create awareness and spur
discussions, but they will not succeed in driving "bad money"
out of commerce; collapse is the only remedy.