Missouri Sound Money Act Would Make Gold & Silver Legal Tender

New American ^ | 5/1/2012 | Alex Newman

[MeganC]

“Yes, but that doesn’t say that a state may reject US legal tender and require taxes be paid in gold and silver. They can’t do that.”

Effectively, yes they can. They can require payment in “gold/silver or cash equivalent” which would allow their taxes to be indexed first to gold/silver while allowing the dollar to inflate all it wants to ensure that state revenues are not impacted by hyperinflation.

The state that will get screwed by hyperinflation and resistance to a hard money law is California. In a hyperinflationary event local governments will be bankrupted across the board by the restrictions of Proposition 13.

To which I say, “Good.”

[wideawake]

First, never in human history has there ever been a barter system. Whether it's grain or metal or credit there has always been a medium of exchange in any human economy.

Second, if our economy gets to a point where people are willing to trade jewelry or bullion for perishables, we are in serious trouble. That is not a desirable scenario - that is a sub-Cuban scenario.

[wideawake]

No, states cannot invalidate federal laws regarding legal tender. That is a power allocated to Congress, not the states and one of the primary reasons we have a federal Constitution in the first place. This is Civics 101.