So How is Obie's Economic 'recovery' Package Working Out?

Gold: An Alternative Currency for U.S. States?

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Some U.S. state legislatures are echoing the concern, as thirteen states are exploring the possibility of introducing gold and silver coin currencies as alternatives to the U.S. dollar. Four years of economic turmoil coupled with the threat of spillover from the European debt crisis has generated a lack of confidence in the U.S financial system leading several states to explore alternative currency options. Legislatures have taken this unusual step to protect local economies in the event of a collapse of the Federal Reserve or the U.S. dollar. The argument in favor of gold and silver coin currency is rooted in the value of the metals themselves rather than a paper currency which derives its value from the guarantee of the issuing country.

Although the U.S. Constitution prohibits states from issuing or printing their own currency, they are expressly permitted to make “gold and silver Coin a Tender in Payment of Debts." Last year, Utah became the first state to introduce an alternative currency by making gold and silver coins issued by the U.S. mint acceptable forms of payment. The law provides that the coins may be exchanged at market value, rather than the face value (for example, a $50 American Eagle gold coin is worth approximately $1700). Several states have since followed Utah’s lead and seven states are considering broadening the scope of alternative currencies by introducing legislation that would allow the use of any gold or silver coin to be tendered based on market value.

Proponents of the legislation point to ongoing economic problems, lack of federal intervention, and—although highly improbable—the potential breakdown of the Federal Reserve System. State lawmakers further cite their obligation to protect their constituents’ economic interests where the federal government is unable to do so. However, those opposed to the legislation claim that alternative state currencies would debase the U.S. dollar by decentralizing U.S. monetary policy-making decisions and shifting power from the Federal Reserve System to individual states. Opponents claim that states are not in a position to replace or compete with the U.S. Federal Reserve System, which is a highly-evolved, complex oversight mechanism of U.S. monetary policy. While the practicality and outcome of recent state legislation remains to be seen, the issue is one with broad implications for the U.S. economy and currency.

States consider alternative currencies of gold and silver

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Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place.

"In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System ... the State's governmental finances and private economy will be thrown into chaos," said North Carolina Republican Representative Glen Bradley in a currency bill he introduced last year.


Wyoming House advances doomsday bill… Feasibility of alternative currency in complete meltdown of govt

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CHEYENNE — State representatives on Friday advanced legislation to launch a study into what Wyoming should do in the event of a complete economic or political collapse in the United States.

House Bill 85 passed on first reading by a voice vote. It would create a state-run government continuity task force, which would study and prepare Wyoming for potential catastrophes, from disruptions in food and energy supplies to a complete meltdown of the federal government.

The task force would look at the feasibility of Wyoming issuing its own alternative currency, if needed. And House members approved an amendment Friday by state Rep. Kermit Brown, R-Laramie, to have the task force also examine conditions under which Wyoming would need to implement its own military draft, raise a standing army, and acquire strike aircraft and an aircraft carrier.