Virginia Considers Gold as Alternative Currency for When FED Breaks Down

Market Oracle ^ | 12 Jan, 2011 | Jason Hamlin

[Errant]

WHEREAS, the present monetary and banking systems of the United States, centered around the Federal Reserve System, have come under ever-increasing strain during the last several years, and will be exposed to ever-increasing and predictably debilitating strain in the years to come.

WHEREAS, many widely recognized experts predict the inevitable destruction of the Federal Reserve System’s currency through hyperinflation in the foreseeable future.

WHEREAS, in the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System, for which the Commonwealth is not prepared, the Commonwealth’s governmental finances and Virginia’s private economy will be thrown into chaos, with gravely detrimental effects upon the lives, health, and property of Virginia’s citizens, and with consequences fatal to the preservation of good order throughout the Commonwealth.

WHEREAS, Virginia can avoid or at least mitigate many of the economic, social, and political shocks to be expected to arise from hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System only through the timely adoption of an alternative sound currency that the Commonwealth’s government and citizens may employ without delay in the event of the destruction of the Federal Reserve System’s currency.

WHEREAS, that the Federal Reserve System’s currency is not redeemable in gold or silver coin or the equivalent in bullion is being identified by more and more experts as a, if not the, major reason for the ever-increasing instability of the Federal Reserve System.

[Errant]

Hey Louisiana, PLEASE take the same precautions!

[RexBeach]

Great!

So, whose likeness is going to be on the coins? Lee, Stonewall Jackson, Jeff Davis?

Hah! That would drive people crazy. :)

[ml/nj]

Uhh. It's too late.

Congress has declared that Federal Reserve Notes are Legal Tender for all debts public and private. Virginia could have objected as the Constitution clearly states that one class of debts must be paid in Gold and Silver Coin, which means that Federal Reserve Notes CANNOT be tendered for such debts. But Virginia didn't want to have to pay their debts in gold or silver so they just kept quiet.

ML/NJ

[dynachrome]

Can a state opt out,via the 10th amendment, I wonder?

[VanDeKoik]

Gold is currency.

Money is an IOU.

[mikey_hates_everything]

The mortgage company wants dollars, not gold, so I’ve got that going for me.

[Jim Noble]

Silver will work.

A 1/10 oz. gold coin (which I personally believe is too small to be useful) is worth about $140 in FRN purchasing power.

A currency with the smallest unit worth FRN140 is not useful.

Silver dimes are worth about FRN3, I think people will need even smaller units than that to facilitate commerce.

[Errant]

From the article, "Virginia considers it their Constitution right" and "Virginia is considering the establishment of a joint subcommittee to study whether the Commonwealth should adopt a currency such as gold or silver to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System".

I for one think the odds do favor a Federal Reserve System breakdown or default. In that case, it would be prudent to have another system in place to prevent a total economic collapse.

[Errant]

Jim, we could still use copper pennies and nickels based on their content value.

It might pay to start putting some of these away as well.

[dynachrome]

If they issue scrip backed by gold/silver, I bet there will be a lots of takers.

[bunkerhill7]

Donald Trump

[stuartcr]

The Gov was on the radio yesterday and said this was just an idea presented by one person, and said it is not being taken seriously at all.

[djf]

I’m not so sure.

The reason being that’s just more of the same old same old.
The goal being to convince somebody (read SUCKERS) that this piece of paper really has value and is really, truly backed by something that you exclusively own. And it ALWAYS descends into fraud and fractional reserve status and breaks down.

How many times do people have to get smacked upside the head before they get a clue?

[ml/nj]

it would be prudent to have another system in place to prevent a total economic collapse.

"Liberals" decide among themselves what they think "prudent" and then work to implement it ignoring the Constitution.

That's not our style.

ML/NJ

[ArrogantBustard]

Most pennies are zinc, not copper.

FYI

[Errant]

Yea, pennies would have to be pre-1982. Maybe we could use cut-up water pipe?

[ForGod'sSake]

Can a state opt out,via the 10th amendment, I wonder?

I've come to believe the States can do just about anything their citizens will allow; federales be damned. I'm no student of history BUT IMHO our current state of affairs closely resembles pre Civil War times. A feral government crapping on the unalienable rights of SOME of the people and the Constitutional "police" power of the States. Will the feral government press the issue or will they blink? Will SOME of the States stand their ground, or will they blink? Do the American People still have the cojones that will be necessary to cowboy up? THAT is the only thing that really matters.

That said, one of the few enumerated powers of the feral government was and is the power to set the type and value of a national currency. Do FRN's qualify? Beats me. ;^)

[Errant]

Maybe it will gain more supporters. Next to repealing the 16th Amendment, it's a way of good way for the States to regain some control back from the Federal Government.

[stuartcr]

Maybe we can start mining the Appalaicians?

[jiggyboy]

“Stockpiling Nickels was Easier than I Had Thought”

http://www.survivalblog.com/2010/02/letter_re_stockpiling_nickels.html