Arizona, Wyoming, Texas, Kansas, Louisiana, Indiana, Tennessee, West Virginia, and South Carolina all now accept gold and silver as cash, their representatives and residents recognizing that Federal Reserve Notes and other fiat currencies will eventually hyperinflate and collapse.
Many states are getting a head start by easing back into gold and silver, which used to back American treasury currency before the Federal Reserve came into existence. The trend would suggest that many more, if not all, states will soon jump aboard as well.
In Lane County v. Oregon, the United States Supreme Court recognized that in the performance of its “essential functions,” a state possesses broad power to specify various forms of legal tender for the payment of taxes.
“If, therefore, the condition of any State, in the judgment of its legislature, requires the collection of taxes in kind, that is to say, by the delivery to the proper officers of a certain proportion of products, or in gold and silver bullion, or in gold and silver coin, it is not easy to see upon what principle the national legislature can interfere with the exercise, to that end, of this power, original in the States, and never as yet surrendered,” the ruling states.
In other words, states can rightfully provision that transaction occur using gold and silver as legal tender as opposed to something else. In the current paradigm, this means gold- and silver-backed coins or notes as opposed to paper fiat Federal Reserve Notes.
When Texas passed House Bill 483, it established the state’s only state-run gold depository, from which no gold can legally be confiscated by the federal government in the event of a “national emergency.”
The Lone Star State also repatriated about $1 billion worth of gold that was being stored by HSBC bank in New York City.
In signing HB 483, Gov. Greg Abbott announced that the new gold depository would be a “secure facility” for “state agencies and Texas citizens to store gold bullion and other precious metals.”
“With the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state,” he added.
Other states have enacted similar “sound money” policies that aim to move in the direction of abandoning fake fiat currency, which holds no inherent value and is easily inflated through economic manipulation.
Whenever Wall Street needs a bailout, for instance, the Federal Reserve can just whip up a few billion more paper fiat notes off the printing press and voila: instant cash for the billionaires.
This type of criminal chicanery is impossible when currency is backed by something like silver and gold that has a finite supply and a relatively fixed value. This is why many people over the years have chosen to diversify their portfolios with silver and gold, which serve as a trustworthy source of value against endless fiat inflation.
“Now it’s up to the private sector to accept, re-introduce, and encourage the use of gold and silver as forms of payment,” reports GSI Exchange.
“Given enough time, these actions may eventually pave the way for other states to adopt gold and silver as legal tender, reinjecting sound money into the American economy.”
Sources for this article include:Submit a correction >>