What if the states got fed up with the Fed and declared gold coins to be their legal tender?

March 02, 2011 – What if the states got fed up with the Fed and declared gold coins to be their legal tender? We will soon find out because 13 states have already proposed or submitted legislation to do just that.

The Fed may say that greenbacks are “legal tender for all debts public and private,” but as stated in a commonly used template for proposed legislation, “the Supreme Court of the United States has ruled that the states may adopt whatever currency they desire . . . even to the extent of adopting gold and silver coin . . . while refusing to employ a currency not redeemable in gold or silver coin that Congress has designated ‘legal tender’."

The states’ bills vary from the conservative “gold coins must be accepted” perspective to those such as Georgia’s HB 3 that “require the exclusive use of gold and silver coin as tender in payment of debts by or to the state.” But they all acknowledge that “an adequate system of governmental finance and a sound and robust private economy cannot be maintained in the absence of a sound currency” and that “the present monetary and banking systems of the United States, centered around the Federal Reserve System, have come under ever-increasing strain during the last several years,” and “many widely recognized experts predict the inevitable destruction of the Federal Reserve System’s currency through hyperinflation in the foreseeable future.”

There is an indisputable paradigm shift in regards to the treatment of domestic debt that echoes that of the global community. The rejection of the dollar as meaningful currency within our borders can only hasten its demise abroad.

As more and more states come to understand that their economies can only suffer more under the dollar standard, they will follow suit and convert to a system based on gold coins.

Kevin Johnson

Senior Staff Writer –

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