PDA

View Full Version : Sen. Wants State To Have Its Own Currency



Low Pan
2nd March 2011, 11:20 AM
this is interesting, maybe it will get people thinking that Private Entities (the Fed) printing currency goes against the Constitution:

http://www.wsmv.com/news/27043569/detail.html


A state lawmaker wants Tennessee to look into the possibility of creating its own currency.

Survey: Should Tennessee consider adopting its own system of currency? | Video: Lawmaker Wants Tenn. To Have Own Currency

Supporters said it's important to be prepared in case the Federal Reserve System ever crumbles.

State Sen. Bill Ketron said he believes the federal government is implementing many things that are not sustainable, and he wants to make sure Tennessee is prepared in case the bubble pops.

That's why he wants to set up a committee to look into what it would take for Tennessee to come up with an alternate currency. He said there's concern hyperinflation could render the U.S. dollar worthless and could throw the state's budget and economy into chaos.

Since the federal government hasn't come up with a backup plan, Ketron thinks the state should exercise its 10th Amendment right to do so.

"I'm not here saying I'm Chicken Little and the sky is falling, but at the same time, we must be prepared at how we are going to survive," Ketron said.

This is not an idea exclusive to Tennessee: Virginia and South Carolina have already set up committees to look into setting up their own currencies.

agnut
2nd March 2011, 12:55 PM
Good catch LowPan. Hopefully the committees will be smart enough to issue coinage with only weight and purity and NOT include stated value on the coins. Of course items being bought and sold will float against the perceived value or spot price at the time of the transaction. Hugo Salinas Price wrote concerning this about Mexico coining silver one ounce coins.

If a stated numerical value is placed on the coins, Gresham’s law would sweep all of the coins out of circulation. Just like what happened with the pre 1965 90% silver US coinage, the pre 1981/2 pennies and soon to come nickel coins.

Come to think about it, why would that be illegal in the eyes of the federal government ? Coins are being made and circulated alongside the fiat currency. Answer : it will be made illegal because the Federal Reserve cannot compete with a preferred, honest money. And they know it; they just do not want the public to become aware of the giant con game going on.

Another point is, how would they tax the profits ? For you see, dealing in real money of intrinsic value is actually bartering one good for another. Something to think about.

Best wishes,

agnut

Uncle Salty
2nd March 2011, 01:17 PM
Silver and gold will never again really circulate as money. They are too scarce and too valuable.

They are better used as a storer of value function of money. Digital or paper will probably always be the day to day currency.

Read FOFOA and free gold to understand this.