The State of Utah became the very first U.S. state to recognize gold as legal tender. Its Legal Tender Act of 2011 enables U.S. minted gold and silver coins to to be recognized as monetary currency. Utilizing gold and silver as currency is currently possible in Utah, although for many merchants, it’s the furthest thing from their mind.
Eventually when the dollar is devalued they will be more interested in the possibility to utilize gold and silver coins as legal tender. When they do decide to partake in trading silver and gold coins, the price of gold and silver will be equivalent to the current market value. For example, the current price of a silver American Eagle Coin is $35. This market value will be recognized as the coins worth when one goes to pay off debt with gold and silver coins.
“If the Federal Government is not going to protect the American dollar, Then the people here in Utah really need to be able to establish a financial system that would make it through a crash, if and when to this crash occurs,” states Lowell Nelson, who works for the Campaign for Liberty in Utah.
Craig Franco, a gold coin merchant in Salt Lake City, UT stated he is preparing to create a Visa charge card based on gold depositories. This would permit people to easily utilize gold as legal tender, instead of fiat currencies.
Utah is not the currently the only place to worry about the stability of the United States financial system, the possibility of a financial collapse and current value of the dollar. Similar to Utah, there are other states that are trying to also pass legislation to allow gold and silver to be used as legal tender.
One such state is Minnesota. Although the legislation is not yet approved, MN residents would like to pass a similar bill to Utah. They would like to designate silver and gold coins as recognized ‘legal tender’ in repayment of financial obligations.” This is currently being proposed to the state and will be voted on in the future.
The bill that MN would like passed states that “the currency provided by the US Reserve System threatens to create a growing lack of stability in the Governmental financial situation and private economic system of the state of Minnesota.” says concerned residents.
In addition, North Carolina also has stated that they are interested in making gold and silver legal tender. Recently released, North Carolina proposed a bill to the state. This bill that would allow legal tender back by silver and gold in the state’s treasury.
“I think we’re in the process of blowing up the dollar. This bubble could be extremely disastrous,” stated the legislator who presented the bill.
Also introduced in South Carolina (although not yet approved) a legislation that would substitute the U.S. dollar with silver and gold as legal tender in in the state.
“The Germans believed their system would certainly collapse and it required a wheelbarrow of money to buy a loaf of bread in the nineteen thirties. The Soviet Union did not believe their system would breakdown, But it did. “Ours is capable of falling apart also,” said the legislator who Presented the bill.
Introduced in Idaho (but not passed) a bill would allow people to utilize silver and gold as repayment of debt.
Also introduced in Georgia, although not passed yet, a bill that would have the state government only recognize gold and silver U.S. coins for repayment for tax obligations.
In the mean time, the world gradually pushing to diminish the function of the U.S. dollar. This will cause the devaluation of the U.S. dollar and an increase in inflation in the United States. Food prices, oil prices and gas prices will skyrocket.
Already the far east and Russia have actually created an agreement to use their individual foreign currencies for bilateral commerce. Formerly, These nation utilized the U.S. dollars for bilateral trade.
Russia, in fact was already pressuring for the denomination of STIs in the Russian energy exports ruble back in 2006.
Countries having large foreign exchange reserves – like China and Arab Oil Manufacturers – are anxiously also trying to prop up the euro currency as a dollar-alternative for their investments. Besides the euro denominated assets they have diversified to other important currencies in the Australian dollar and like Canadian dollar.