13 States Considering Alternative Currencies

gold“We don’t want yer Yankee dollars ’round these parts.” CNN writes that a string of state currently have a crush on the idea of of gold and silver-based money:

A growing number of states are seeking shiny new currencies made of silver and gold. Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place.

The Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make “gold and silver Coin a Tender in Payment of Debts.” To the state legislators who are proposing state-issued currencies, that means gold and silver are fair game, said Edwin Vieira, an alternative currency proponent and attorney specializing in Constitutional law.

, , ,

  • Liam_McGonagle

    Yeah.  Good thinking.  There’s never been any financial instability associated with gold- and silver-backed currencies.

    http://www.globalbusinessnetwork.org/financial-news/black-friday-the-great-gold-crash-of-1869.html

    I know they’re all too absorbed in their libertarian wet dreams to hear this, but I would still like to go on record shouting at the top of my lungs:

    “Grow UP!!!  There is no shortcut to fiscal responsibility!  You’re gonna continue to fail as long as you give bankers unregulated carte blanche to print commercial money without restraint!”

    Jesus, how the hell do those *ssholes get into the State House without knowing any of this stuff?

    http://www.dystopiadiaries.blogspot.com/2010/11/would-henry-i-have-castrated-goldman.html

    • http://www.facebook.com/profile.php?id=1138124775 Eusebio Preciado

      Actually, this is a good idea to have a competing currency.. since the Gold and Silver backed money will hold it’s value and not depreciate, it will be a good storer of your wealth, and great way to once again build up your savings.  

      You are right, the problem has been that the U.S. has printed money out of thin air and devalued the currency.. but with a Gold or Silver backed money, they can’t print out more money than they have Gold or Silver.  therefore it stops the government from printing worthless paper money and causing your money and savings to become worthless.  This would be a great way to finally get rid of the fiat currency and paper money, and get back to sound money.

      I applaud the states for looking into this..

      RON PAUL 2012!!  OR NOTHING AT ALL!!

      • Andrew

        The problem with gold or silver (not capitalized) is that there is a limited amount, while the amount of human production and human need is constantly in flux and generally increasing.  Both types of currency are only tokens of exchange–they don’t really have any more objective value (use) than paper and are only useful inasmuch as people will do things or give you things for them.  Gold and silver are in fact fiat money, just as dollar bills are.  To limit the amount of tokens in an economy–to base value on scarcity rather than objective use–is insane.  What needs to be done is to back currency with actual capital, link the printing of money the the GNP, or something like that rather than letting banks create it out of debt.

        • http://hormeticminds.blogspot.com/ Chaorder Gradient

          To push that point home, heres some nice XKCD graphics to visualize (the current value of) gold to how much money is really flowing all around all the time

          http://xkcd.com/980/huge/#x=-11161&y=-7456&z=6

        • SmudgeServices

          The limited amount of gold is exactly what makes it the solution to our current problem. Its finite amount is what gives it any value at all. Yes the human production and need numbers are constantly at flux, but so is the amount gold/silver/any commodity. You really think that people just don’t mine for gold anymore? Look at the production history of gold compared to the population numbers and its quite eerie how steadily parallel the amount of gold mirrors the population.

          Both types of currency have no more objective value than paper?? With all due respect, you couldn’t be more wrong. Silver has more industrial uses than any other metal. A simple google search on the uses will blow your mind. Gold has industrial uses too, although they are not nearly as plentiful in number. Gold is rarer than silver which does give it that extra value. Paper on the other hand only has objective value insofar as to write on, or maybe make a paper airplane. The funny thing is that the paper dollar currency already has the government scribble all over it, so it would actually be worth more if they hadn’t printed on it, in a hyperinflation situation (which is where we are heading since we keep printing paper currency with no actual objective value).

          Gold and Silver are fiat? In the form of a stamped bullion coin they may be considered fiat as they are formally being issued by the treasury as certified legal tender. But one could dig up gold or buy a gold necklace and it holds the same value as those bullion. By the government issuing more certified coins, they are not simultaneously destroying the market with inflation and creating new currency, adding more money into the system, they are instead just converting a commodity into a reasonable form of trade for the people. Original paper currency was a redeemable receipt if you will, which could be traded in for the gold at any time. T’was in a sense to make your pocket lighter, not for market manipulation in the sense that it is today.

          And then you argue by saying that its insane to base value on scarcity (ignoring its objective uses) but it needs to be back by actual capital? what do you think actual capital is? These two are directly opposing ideas! Gold ahs value in and of itself, it can be used for things, it has value. It’s scarcity adds to its value, its not it’s whole value. And that value is its capital. Th eproblem with GNP is that its a statistic (of no physical value) based on numbers based on a currency of no physical value) which can be manipulated. Paper currency with no backing has only the value of confidence, which is no-thing.

      • http://pulse.yahoo.com/_BWSMIJBIPNVNPMC24S2XAT42QE Zaphod

        Eusebio, you are a dumbass!

    • SmudgeServices

       did you even read the article you linked to? it clearly tells the tale of government interference to create an non-gold backed currency, and its manipulation that caused such a crash. a crash is simply not even possible with commodity a backed currency.

      • Liam_McGonagle

        Amazing how you missed the single salient point.  Quote, from the article I linked to (and you apparently did not read or understand):

        “Well, readers may be surprised to discover that one of the first, and probably biggest on a relative basis, documented gold crashes was not 3 weeks ago, nor back in October 2008, nor any time since the advent of Nixon, or even the Federal Reserve, but over 140 years ago, on September 24, 1869 when a massive gold price manipulation scandal created a financial panic. ”

        The point is that there is no market commodity on earth that is impervious to manipulation.  The article quite clearly stated that the crash was due to the manipulation of the gold market by Gould and Fisk, since that is their uncontested claim to infamy.

        How that point could escape your vice-like powers of apprehension is beyond me.

        • SmudgeServices

           there is no market commodity on earth that is impervious to manipulation compared to paper dollars because the value of that dollar is fluctuating as persons dictate. commodity itself wasn’t manipulated.

          there is a natural fluctuation in where as we get the basic supply and demand balance game. so i stress, the manipulation occurred at a time when we were not on a gold standard, meaning the dollar value of that gold was being manipulated not the natural free market. the gold held its value the entire time. the only way to manipulate the gold market is to mine more or somehow destroy it. the situation the article describes is at a time where the dollar is separated by and therefore has not true value, and therefore can be manipulated.

          • Liam_McGonagle

            I suggest you read carefully.

            Actually, the situation described is the retirement of non-metallic backed notes in exchange for metallic-backed notes and the almost inevitable private sector manipulation of the market that attended it.  Those are just the plain facts.

            All the dancing in the world can’t change the fact that America’s been-there-done-that, and it was a mistake.

  • MrSta

    I’m going to have a good long Ron Paul over this news.

  • Olympia_A

    Global Debt Crisis

    The greatest private fraud of human history.
    Who are the great fraudsters who are becoming the murderers of the human kind? How does the economy “illness” threaten Democracy and the freedom of people?

    http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
    ———————————
    By knowing what happened in indebted Greece, where loan sharks created “bubbles” and the current inhuman debt, one can understand the inhuman plan in total …understand where this plan started just to bring all states at the same end …understand how this type of plans are established…

    Authored by PANAGIOTIS TRAIANOU

  • Harry Krause

    Libertarian loonyness.

  • jigglyboobs

    doesn’t this mean we’ll have to send nato to bomb them senseless and overthrow their sovereign governments and let al quaida take over?
    no? that’s just what we do when an african government considers a goldbacked currency…? oooooohhh. ok. i get it. sure.

21