Wednesday, May 2, 2012

States To Use Gold and Silver as Legal Tender

Susanne Posel, Contributor
Activist Post

As America slips into monetary oblivion, some states are turning to the US Constitutional right and desiring to use alternative currencies – preparing for the hyper-inflation that Bernanke is currently creating.

Minnesota, Tennessee, Iowa, South Carolina and Georgia are awaiting approval from their respective governments to create a separate currency. This number is up from 2011, when just 3 states were brave enough to attempt this constitutional right.

“In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System … the State’s governmental finances and private economy will be thrown into chaos,” said North Carolina Republican Representative Glen Bradley. He introduced a new currency bill in 2011.

These states are planning on issuing gold or silver coins as tender “in payments of debts” as allotted them in the US Constitution. Law makers are becoming at ease with this proposal as the worth of the US dollar is further lessened by the actions of the Federal Reserve, and the prices of precious metals like gold and silver soar higher.

In Utah, Governor Gary Herbert signed a bill introducing an alternative currency in March of 2011. This bill recognized gold and silver coins issued by the US Mint as legal tender.

“A Utah citizen, for example, could contract with another to sell his car for 10 one-ounce gold coins (approximately $17,000), or an independent contractor could arrange to be compensated in gold coins,” said Rich Danker, a project director at the American Principles Project, a conservative public policy group in Washington, D.C.

Mike Pitts, Republican for South Carolina introduced a currency proposal of which any gold or silver coin could be used as payment for debts based on its weight and size. Pitts and 12 other so-sponsors believe that this move will protect their state from “an economic crisis of severe magnitude.”

Washington State, Iowa, Minnesota, Georgia and Idaho have followed suit and are basing their legal tender values on metal standards as reflected on the market.

In many cases, residents of these states will be able to trade their fiat Federal Reserve Note for gold or silver coin. They could then purchase goods and services with their currency.

There is the notion of creating an electronic depository to alleviate the actual weight of the gold and silver coin carried around.

In Utah, the Utah Gold and Silver Depository is conceiving of a debit card system that will be linked to their precious metals holdings.

Transfers would be made by the market value of the metals.

A return to the gold standard is supported throughout the country. Most Americans are beginning to understand that the fiat money printed by the Federal Reserve is not worth what the privately owned bank would have us believe.

While some states are moving toward this alternative currency, it opens the door for more states to become brave and put into place these legislative protections.

This move could simply and swiftly eliminate the Federal Reserve’s hold on America’s economic future.

Once their power is gone, it is only a matter of time before they literally disappear from the American landscape; liberating US citizens from their debt slavery.

Susanne Posel is the Chief Editor of Occupy Corporatism. Our alternative news site is dedicated to reporting the news as it actually happens; not as it is spun by the corporately funded mainstream media. You can find us on our Facebook page.

How to Abolish the Fed and Convert to Gold as Money


This article may be re-posted in full with attribution.


If you enjoy our work, please donate to keep our website going.


Anonymous said...

Susanne, thanks for the info. The states have to set up some kind of monetary system. the musical chairs tune is fast to end. With nothing in place to replace fiat, it will be chaos

Anonymous said...

Today's spot price of gold is $1,654 an ounce, which means with a lump of nickel you could produce one hundred and sixty $10 coins, or thirty-three hundred $5 coins and so on - and they should all hold their value.
It would be an idea if the states were to liase over the content of gold and silver in any future coins (specie), so everybody knows their real value, ie their precious-metal content. Otherwise you invite currency speculation because a five-dollar coin in one state could have more or less gold content than another state's five dollar coin. It needs to be an agreed content to function properly. Mick McNulty. England.

Anonymous said...

Years ago, people turned in their gold for fiat dollars and the banks got rich because they owned the metals; now they are considering of allowing the depository to hold the metals while the people receive debit cards for precious metal holdings, sounds like the same scheme with a different face. I would strongly suggest people to HOLD YOUR OWN METALS that way it will be in your hand when you need to use it!!!

Anonymous said...

The official U.S. government's valuation of gold is still $42.22/ounce. If a person were to sell something of value for one ounce of gold at $1,650/ounce, making a profit, for example, of $1,000, since our government officially says he/she only received $42.22 rather than $1,650, why would he/she have to pay taxes on that profit, having incurred an actual loss according to the federal government's calculations? After all, does the government ever lie?

I wonder what kind of wriggling and squirming and twisting of logic the IRS would have to go through to collect the tax and prove to a court that the U.S. government's valuation is just a load of bull which we should not believe.

Of course, since the courts almost always favor the government over the taxpayer and judges rarely avail themselves of the rules of logic or precepts of law, the taxpayer would lose.

Gemma said...

"In Utah, the Utah Gold and Silver Depository is conceiving of a debit card system that will be linked to their precious metals holdings.

Transfers would be made by the market value of the metals."

This is raising some interesting dilemmas! The first point is that they are trying to escape a devalued dollar by having money that is based on a metal that is traded ... in dollars. Either that or it is traded in some other way, you could peg the value of Gold to the value of Silver or Lead. Whatever you say about gold or silver, their value is always perceived. The Germans arrested their hyper-inflation not by instituting a gold mark - but by instituting the Weizenmark - the "Wheat Mark". It was the value of a bushel of wheat. Sure it didn't last long, but the effect no less real. Zimbabwe dealt with their problem by ignoring it, and dealing in Rands and US dollars.

You need a little more than gold coins when it comes to a currency collapse. Imagine if you needed to carry bags of gold to pay for your fuel? Imagine a lorry driver and sack loads of coins to pay for each tankful he needs as he crosses state line after state line. Sure, he can do it with his silver-dollar express card! But that has brought the system back full circle!!

There are many of you who say that because gold is physical, and is comparatively rare, then it must have a value. Well, yes, but the value of gold is abstract. King Midas discovered that a very long time ago, and we haven't learned the lesson yet, have we? The problem with money is that people see money as the problem. Any serious entrepreneur does not chase money, they chase a dream and they work in the present. The money follows.

Which is important. Money is part of our society in the way that blood is in our bodies. Unless it flows usefully into all corners, things die. If there is a stoppage, things die. Blood that is stopped congeals and becomes a clot. Think of our banks not as places to store money, but to regulate the flow properly - which is the true function of the heart. Pump it may be, but keeping the flow even is more important still. With our banks in the hospital on a life-support system does not look good from here. That the banks became a sort of cancer in our economy did nothing to help matters.

The real problem is that money isn't going to change that. It is human activity and imagination. The very thing that most bankers lack.

Tyler said...

If you want to know ABSOLUTELY everything there is to know about the IRS, then google "Sherry Jackson IRS Agent". She was a top award winning IRS Agent who discovered for herself that the IRS is ILLEGAL. Confronting the CEO of the IRS with these facts, she was thrown into prison. A heart wrenching story. A must read.

Anonymous said...

"You need a little more than gold coins when it comes to a currency collapse. Imagine if you needed to carry bags of gold to pay for your fuel?"

seriously? most people dont have a clue about the weight vs value of 'dime' sized 1/10th ounce of gold currently 'equates' via the 'market' to $170 or 1700 face value dimes, which is how many tankfuls of fuel? the weight is negligible and hardly worth noting...silver, on the other hand is another matter, nevertheless it still only costs about 12cents per gallon of gas when using a silver 'dollar'. but how is this 'weight/density' factor and errant view thereof any different than the face value of metal-clad coins and paper currency other than the real value vs fiat value. the ignorance of people who do not understand, neither have they calculated, and definitely have not handled large or even small sums of any of the above is ridiculous, and it seems none other than a paradigm manipulated perspective and/or regurgitating mainstream perception management by people who rely on credit/debt/plastic for their existence will be hurting the most in the future.
people perish for lack of knowledge, not inked fiat paper.

Post a Comment