Sound Money and the States

| January 11, 2013

On the surface, it’s hard to believe that we can do anything to curtail Barack Obama and Ben Bernanke from continuing to debase the currency through deficit spending and money printing. Bernanke’s Federal Reserve recently recommitted to its zero interest rate policy indefinitely. The Obama White House shows no interest on fiscal policy in doing anything but raising tax rates. Change has to start outside the federal government, and there is a course correction that can happen starting from the state level.

The sound money alternative we have exists in the form of gold and silver legal tender coins (American Eagles and Buffalos). These were minted beginning in the Reagan administration and unlike the paper dollar can never lose any purchasing power. Right now many states are trying to follow the lead of Utah and remove taxes on these coins and designate them as legal tender (a power given to the states in Article I Section 10 of the Constitution). This would encourage their use as a currency and send a signal to Washington to do the same thing and to take a fresh look at hard money. Monetary reform can’t happen overnight, but enough interest and action from state capitals will get us to a much more prudent place rather than single reliance on a depreciating paper dollar. Utah is the safest place in America to own and transact in gold and silver coin. Which state will be next?

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Category: Caffeinated States, Monetary Policy

About the Author ()

Rich Danker directs initiatives on monetary policy and public pension reform for American Principles Project. His work has been featured in publications such as Investors Business Daily, Forbes Opinions, and the Weekly Standard. He is a board member of the Lehrman Institute’s Gold Standard Now project and of the Utah Precious Metals Association. He has a master’s degree in public policy and business administration from the Pepperdine School of Public Policy and Graziadio School of Business and Management and an undergraduate degree from Lynchburg College.
  • trent steele

    This is Dr. Edwin Vieira’s plan. Look him up. The APP is just using the plan he worked so hard in, but without ever crediting him or all of the work he’s done.

    • http://shanevanderhart.com/ Shane Vander Hart

      Trent, I doubt this is intentional. I will I will ask Rich about it, but as they say there’s really no such thing as an original idea so I’m everybody’s gets ideas usually taken from somebody else. You are making an assumption that somebody can’t think of this without seeing his work.

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