Is gold again becoming money in the United States?
Last year, Utah became the first state in the country to legalize silver and gold coins as currency—just as the constitution stipulates. How lawmakers accomplished this measure was by exempting the alternative money from any tax. Utah businessmen have already brought the most popular innovation in banking, the debit card, into the fold. At the time of purchase, the calculation of the momentary value of the dollar is taken care of with computers. Citizens store their savings in an electronically connected private vault, and the debit card, linked to their holdings, works like any other at the store.
In South Carolinia, a bill that would allow residents to use the gold and silver coins is being advanced. The House Judiciary Committee approved the bill, which allows freedom of choice and broadens personal options for diversification. By making silver and gold ‘legal tender’, businesses will have to accept them as payment. Legal tender laws are used to force citizens to use only mandated forms of money, and depending how the legal tender law in South Carolina is written, an exemption has already been discussed to allow businesses to exclusively accept the Federal Reserve’s banknotes should they so choose.
Subcommittee Chairman Greg Delleney, R-Chester, said “trusting in gold and silver is misplaced,” because “if the dollar collapses, people are going to be in trouble no matter what the metals are worth.” This is absolutely correct, those who do act can preserve their present day buying power, but Delleney sees a crisis brewing and knows that more than freedom of choice is needed to prepare his constituency. Perhaps they will consider a policy similar to that of China, and actually promote personal savings in the monetary metals. Delleney adds that “He sees no downside in making it an option.”
E. Ray Moore, Jr., a member of the S.C. Money Committee, and one of the advocates for the bill explains, “It’s basically a form of discipline, so we can anchor our South Carolina economy in a time of great difficulty if the dollar continues to erode and inflation increases, which it inevitably will. So South Carolina could have a stable economy with this legislation. It would anchor our economy and gives us a stable currency.”
A total of 12 states are considering similar legislation.
Colorado announced in late Febrary that state senators will be considering similar legislation. Besides South Carolina, Utah and Colorado, 10 other states are looking at the same issue. As the North Carolina bill termed it: “an alternative in the case of a catastrophic failure of the Federal Reserve System.”
The most recent government to allow silver and gold as a competing money by removing taxes was Singapore, cementing their position as the financial capital of the world. New York and London are legacy centers as they built unsustainable debts upon soft ground. In the 19th century London and the Pound were dominant, in the 20th century New York and the Federal Reserve banknote climbed to notoriety, and in the 21st century Asia will benefit as the region with the capital, the creditor nations, and savings.
It should be obvious between the international changes in demand for dollars by Russia, China, India, Brazil and South Africa, combined with some of the States allowing multiple mediums of saving that there is a global exodus from infinitely conjured private banknotes such as the Euro and the Federal Reserve Note. He who defects first will be the one who sleeps best.