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Gold and Silver Currency
This article perfectly makes my long - standing argument that fiat currency’s are a declining asset. There is nothing more I can add to improve what John Smith so eloquently stated.
Florida lawmakers should permit the use of gold as currency
March 30, 2011|John R. Smith
Did you see it? Legislatures in Utah and Virginia just passed bills allowing silver and gold coins as legal tender within their borders. A dozen other states are considering such laws, using the power granted to the states under Article 1 of the U.S. Constitution. These states are exploring how to set up monetary systems to offset a terrible plunge in the value of federal paper money.
Why is this important? Pull out and look at a dollar bill, and think about inflation. Do you know how much your dollar will decline in value within a few years? If you had used that dollar to purchase an item 100 years ago, that same item would now cost $22.35; that's a 2,135 percent loss of purchasing power. Using historical averages, the value of your dollar will decline by 25 percent in the next 10 years.
So what's causing the value of your money to drop? Out-of-control federal budget deficits, costly new entitlement programs (such as health care reform), printing trillions of dollars to prop up the central banking system, and three overseas wars — all causing mounting inflation. We are "printing $2.5 million per minute and $3.5 billion per day of new money," according to Barron's Market Watch.
The U.S. debt is now over $14 trillion — about $54,000 owed by every citizen in the country. The Obama administration has proposed an increase of another $1.8 trillion this year. "By 2017, the level of U.S. debt … will hit $20.9 trillion," reports the Wall Street Journal.
The federal government paid $410 billion in interest this year on the national debt — in 10 years, with no change, that will rise to $928 billion annually. Meanwhile, politicians use numbers games to pretend inflation does not exist. Congress actually wants the value of your dollar to decline, because they intend to pay back their horrendous budget deficits with less-valuable dollars later. In this time of zero interest rates and quantitative easing (aka printing money), many people sense that our monetary policy has gone haywire.
Inflation is coming. Fearing the federal government bubble and the rapid decline in the U.S. dollar, 14 states introduced legislation to allow them to use gold and silver coins for their own currency, in addition to paper greenbacks. These are moves toward strengthening money.
Legislators in these states recognize their duty to protect the property of their citizens by requiring a sound currency. This creates a backstop against the scourge of inflation. They realize that their citizens need to protect themselves against inflation and the declining value of their dollars — by owning legal tender like gold and silver that won't collapse as the dollar dwindles.
Epic struggles lie ahead between Florida's taxpayers vs. public workers. What do taxpayers do if their struggle seems lost, as rising borrowing and living costs spawn inflation?
Well, I summon this recommendation to the ears of Florida legislators: Go for the gold. Let's protect the value of our citizens' property and currency. Put our state on a sound monetary system. Why not allow American-minted gold and silver coins as legal tender in Florida? The coins would not replace paper currency, but would be accepted and used voluntarily as an alternative. Florida citizens could exchange dollars for gold and silver, which rise with inflation, as an alternative currency.
With all the uneasiness in the economy and the declining greenback, a back-up system is a good idea. If and when financial distress arrives, our citizens would have choices to protect themselves. And if I'm wrong, we have a second currency we can use to buy things. And sleep better.
John R. Smith is chairman of Palm Beach County's BizPac and owner of a financial services company.
If all these states are going to gold, why aren’t you joining the move. Waiting is a game plan for financial ruin. With each passing day, the window closes a little more, until one day it will be closed entirely, and THEN it will be too late to act.
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