13 States Say Dump the Dollar, Bring On the Gold!

by Eric Hammer | FTMDaily Contributing Writer

TEL AVIV, Mar 7 – Since 1971, American money has been valuable only because people perceive it to be valuable since the American government officially backs it. Prior to that, American money had a kind of intrinsic value as well – it was backed by gold held in Fort Knox and at the Federal Reserve. Some states however have decided that it’s high time that things changed back to the way they were. They’re looking to take their citizenry back to the gold standard.

“…the Federal Reserve makes money out of thin air and is destroying the reputation of our dollar.” That’s what state representative Norman Tregenza of New Hampshire told a local newspaper regarding the need to return to the gold standard. Unlike some other state representatives though, Tregenza isn’t pushing merely for his state to return to the gold standard but is instead preparing a petition from his state to ask the U.S. Congress to return to the gold standard.

Other states, such as Utah and Georgia have taken more radical steps, either considering or passing laws which would make payments of debts to and from the state legally payable in gold or silver coin rather than in dollars.

In fact, in Utah, where the State House of Representatives passed a law last week allowing for an official return to the gold standard, a new law has been introduced which would go even further, allowing residents of the state to mint their own coins in the basement, using gold or silver as a base for the new coins.

Meanwhile, the current Utah law, which still must pass a vote by the State Senate, already exempts gold and silver from state capital gains taxes and allows coins minted by the Federal government to be used voluntarily as legal tender for paying the state, though ordinary dollars will be accepted for the time being as well.

While the movements to switch back to the gold standard are still in their infancy and it remains to be seen if the new state laws can hold up to Federal constitutional challenges and scrutiny, they do point to a fundamental distrust of the dollar. The feeling is that the dollar has become a weak currency and that “the destruction of the Federal Reserve System’s currency through hyperinflation” is near, as State Delegate Bob Marshall of Virginia told Fox News in an interview recently.

In total, thirteen states are considering laws to make gold and silver legal tender in their territories, including Utah, Colorado, Georgia, Montana, Missouri, Indiana, Iowa, New Hampshire, Oklahoma, South Carolina, Tennessee, Vermont and Washington.

About FTMDaily.com

FTMDaily.com is a financial education and media company that seeks to help individuals understand how the global economy and geopolitical events affect them and their families. Learn more at FTMDaily.com

Comments are closed.