Saturday, January 08, 2011

Gold Fever

At least three state legislatures, Georgia, Utah, and Virginia, have caught gold fever.
Collectively they will be known as the Glenn Beck Profiteering Acts of 2011.
Georgia is considering legislation (the Constitutional Tender Act) would outlaw the Federal Reserve Note and requiring state taxes to be paid only with gold or silver coins. It would require banks to hold accounts denominated in gold or silver coinage. Also, future state payments (salaries, vendors) will be paid exclusively with gold or silver coins.

The Utah Sound Money Act is more voluntary. It would allow Utahans to pay the state in gold or silver and demand any payment from the state be in specie instead of cash.

Both Utah and Georgia plan on using existing US minted gold and silver coins. The United States last minted gold coins in 1933 have values in excess of their face value or worth as specie. The $20 Double Eagle has $1,324 in gold (at current prices) but sell for twice that and more on the open market. Of course, once states start using rare coins as legal tender their prices will rise.

And then there is Virginia which plans to begin minting its own gold and silver coins as a substitute currency to the American dollar. Of the three states, Virginia at least has some experience in minting money.
Who else would put slaves on their bills?


Mark Herpel said...

It's great to see states moving in this direction. here's a template for the bill.


Anonymous said...

As foolish ideas go, this is one of the more foolish in today's world economy. Sometimes I just wish that we would let states like South Carolina secede so they can find out the stark reality of what it would take to survive in today's world. These guys seem like they are all living in the 17th century. I grow weary of these financial and social versions of Luddites.