States Now To Use Gold and Silver as Legal Tender

Published on May 4, 2012 by admin · No Comments

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.