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Economy
US state considers alternative to dollar
2011-01-14
[Iran Press TV] The Commonwealth of Virginia is planning to file a bill under which it would begin minting its own gold and silver coins as an alternative currency to the US dollar.
Doubtful anything's gonna come of it, but it would make sense if you believe in hard currency.
Virginia's Republican Delegate Bob Marshall, from Prince William County, was to ask the General Assembly to consider the idea on Wednesday when it convenes for its annual legislative session, The Washington Post reported.
For that matter, it would make sense to allow anyone to mint their own coinage as long as it was up to snuff. A half ounce gold coin would be the same whether it was minted by the state of Virginia or by Joe Doaks as long as both attested to its fineness.
It is a companion bill to a proposal Marshall has already filed to establish a study committee to examine alternative currencies to that distributed by the Federal Reserve System "in the event of a major breakdown of the Federal Reserve System."
How about "in anticipation of"?
The currency alternative bill intends to inject competition into the national economy of the US and oblige the federal government to change its monetary policy, which is believed to be leading to hyperinflation, Marshall said. "Many widely recognized experts predict the inevitable destruction of the Federal Reserve System's currency through hyperinflation in the foreseeable future," the bill says.
That's because the dollar's now tied to printer's ink, rather than silver or gold.
"State legislatures have to get a little more creative and savvy to counter the buffoonery that's been plaguing Washington," Marshall noted. "We want to provide competition and some restraint on the profligates that have been running the Federal Reserve and the people in Congress who don't know the word 'no'," he stated.

Marshall's critique reflects that of the populist, libertarian Tea Party movement of the US, some members of which have called for an end to the Federal Reserve System.
Posted by:Fred

#17  Missouri did that to me two years ago, delaying my return. Last year I filed early to avoid the 'delay'. I will do the same this year for a lesser extent, but expect to owe next year rather than have a 'rebate' of my own money.

Politicians, if they are not on your back, they are in your pockets.
Posted by: rammer   2011-01-14 23:12  

#16  good point - we'll see this year. I was fooled once...twice?.....eh...
Posted by: Frank G   2011-01-14 22:33  

#15  Why would anyone be so foolish as to be a potential recipient of a California IOU more than once? Can't you change your withholding or something?
Posted by: rammer   2011-01-14 22:21  

#14  California has already done that - with IOUs. I was not amused
Posted by: Frank G   2011-01-14 20:58  

#13  glenmore: I think it's a superb idea for States to issue scrip if the dollar becomes unstable.

First of all, it would concentrate dollars at the State level, so that the State could use them to procure essential items not made in the State. Dollars would still be available, so that consumers could choose whether dollars or scrip were more stable. As such, scrip would have a stabilizing effect on dollars.

The State could back its scrip with a whole assortment of commodities, with buy-in from State producers.

And the scrip itself would be very controlled, to the point where scrip bills would be registered to their owner, by having their reverse covered with encrypted dot matrix bar code. It is a public domain bar code, and its readers are common. Scrip printed cheap on plain paper.

To spend say $20 in scrip, the retailer would just scan your bill, connecting by phone to the issuing authority that would confirm the value of the bill. Then the owner would enter his PIN to confirm the transfer.
Posted by: Anonymoose   2011-01-14 20:11  

#12  Yokay-y-y, I'll bite, how is this going to work iff the HISTORY CHANNEL says THE LOST CONFEDERATE/REBEL GOLD [US Civil War] HASN'T BEEN FOUND YET!?
Posted by: JosephMendiola   2011-01-14 19:57  

#11  I'll take $1,000.00 in those coins, whether or not they're valid currency, the coins have both historical and Metal Value.
Posted by: Redneck Jim   2011-01-14 12:28  

#10  Maybe we can use sea shells.
Posted by: Ebbang Uluque6305   2011-01-14 12:06  

#9  Good for Virginia. Meanwhile Jerry Brown can't find two copper pennies to rub together.
Posted by: Ebbang Uluque6305   2011-01-14 12:06  

#8  I thought this was one of the original powers in the Constitution which explicitly names something states cannot do, as PSK notes.

California's (proposed or now using?) IOU's I think would also fall into this category. Local chamber of commerce bucks I have also scratched my head about, even the true legality of school bucks.

I do understand the idea though (if true), heard some guy the other day suggest that CA should approach the federal reserve for a loan of sorts since it is not actually part of the government and therefore not a bailout...lots of head scratching on that one.
Posted by: swksvolFF   2011-01-14 12:04  

#7  The applicable Constitutional limitation -

Section 10 - Powers prohibited of States

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

The lawyers, both accredited and unaccredited, will now declare day night and night day with their rhetoric.
Posted by: Procopius2k   2011-01-14 09:21  

#6  check out the debasement of currency in

the modern US!
Posted by: Glenmore   2011-01-14 09:15  

#5  TW, kings did the same -- check out the debasement of currency in the later Roman Empire, the Habsburg dynasty and the last several Louis' of France.
Posted by: Steve White   2011-01-14 09:13  

#4  Instead of minting metal money (government or private), how about printing scrip backed by commodities? Soybucks, printed by ConAgra, or Petrobucks, printed by Exxon, etc?
Posted by: Glenmore   2011-01-14 09:08  

#3  Yankee money is no good down here.
Posted by: Besoeker   2011-01-14 07:53  

#2  Oh, for goodness sake. The reason kings started stamping their faces on coins throughout the ancient world was to guarantee the weight and purity of gold, silver and copper coins, because private producers had taken to shaving coins and diluting the metals, causing inflation. Then, as their expenses expanded, the kings took to debasing their own coinage in the same way, leading to inflation, war, and being conquered because they couldn't afford to pay the army. And the occasional flood, famine, or plague led to scarcities and inflation as demand for food or labour exceeded supply.
Posted by: trailing wife   2011-01-14 06:51  

#1  "Marshall's critique reflects that of the populist, libertarian Tea Party movement of the US, some members of which have called for an end to the Federal Reserve System."

Typical news story - just the facts, no editorializing. /sarc

As for the minting our own Confederate Dollars, I haven't seen a bill about it, although the study commission bill is true (here's the summary):

"HJ 557 Alternative currency; subcommittee to study whether should adopt if breakdown of Federal Reserve.
Introduced by: Robert G. Marshall
SUMMARY AS INTRODUCED:
Study; adoption of an alternative currency; report. Establishes a joint subcommittee to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by Federal Reserve System in the event of a major breakdown of the Federal Reserve System.

Bob appears to like tilting at windmills - here's another of his bills:

"HB 1398 Carbon dioxide emissions; defers USEPA enforcement of any standards or cap and trade provisions.
Introduced by: Robert G. Marshall
SUMMARY AS INTRODUCED:
Air pollution emissions. Defers to the U.S. Environmental Protection Agency (EPA) the enforcement of any carbon dioxide standards or cap and trade provisions that are included in the federal Clean Air Act. The Governor through an executive order or the General Assembly is prohibited from enforcing any climate change international agreement until such agreement is part of an international treaty that has been approved by the U.S. Senate. The bill requires the Governor, in consultation with the Attorney General, to examine these provisions and determine whether Congress has the authority to enact mandates upon the state. The Governor is to report his findings to the General Assembly. The bill authorizes the Attorney General to bring an action against the EPA if he finds that the mandated standards are based on a finding that is not scientifically demonstrated."

Go, Bob, go! :-D

Be interesting to see if this gets passed - the Dems hold the Senate by a couple of votes (the House of Delegates has been held by Repubs for some years).
Posted by: Barbara Skolaut   2011-01-14 00:26  

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