Backing Currency With Precious Metals
As faith in fiat and digital currency wavers, a growing number of states are embracing gold and silver as tangible legal tender alternatives.
Cryptocurrency adds another unstable layer to our already unstable monetary system.
Cryptocurrency is something that doesn’t really exist, that is supposed to be backed by our fiat money. Fiat money isn’t backed by anything other than its acceptance by the general public. Fiat money, for that reason, doesn’t really exist either! The national debt is out of control. Add to this company “evaluations” declaring them to be worth billions of dollars, while there is still nothing tangible. Then, stock is used as a substitute for money by these businesses. Such a move creates yet more fiat money.
Should specie, in which something physical that is pledged against all this paper and electronic wizardry, be in place? Arizona, Arkansas, Florida, Idaho, Louisiana, Missouri, Oklahoma, Tennessee, Texas, Utah, Wyoming, and West Virginia think so. Each of their state legislatures has recognized gold and silver as legal tender. These precious metals can be used in transactions alongside our federal fiat money.
Unfortunately, Kansas Governor Laura Kelly recently vetoed HB 2515, legislation that would have given these two metals the same status in the Sunflower State. Kelly was concerned that gold and silver could be considered to be speculative assets. She has a point, but this brings up another thought. We see the price of a gallon of gasoline posted in front of a gas station. What if merchants willing to accept gold and silver coins posted their daily acceptance rates? Yes, with a bullion value hovering around $75 for a Silver American Eagle and around $475 for a tenth Gold American Eagle, their use would likely be limited to larger purchases, but why can’t specie coinage be viable in our modern world? At least 12 states think so!
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