Thursday, February 7, 2013

Virginia advances bill pushing for state to establish its own currency

Virginia is one step closer to breaking ties with the country’s monetary system.

A proposal to study whether the state should adopt its own currency is gaining traction in the state legislature from a number of lawmakers as well as conservative economists. The state House voted 65-32 earlier this week to approve the measure, and it will now go to the Senate.

While it’s unlikely that Virginia will be printing its own money any time soon, the move sheds light on the growing distrust surrounding the nation’s central bank. Four other states are considering similar proposals. In 2011, Utah passed a law that recognizes gold and silver coins issued by the federal government as tender and requires a study on adopting other forms of legal currency.

Virginia Republican Del. Robert Marshall told Tuesday that his bill calls for creation of a 10-member commission that would determine the “need, means and schedule for establishing a metallic-based monetary unit.” Essentially, he wants to spend $20,000 on a study that could call for the state to return to a gold standard.

The gold standard is a system under which a country ties the value of its currency to gold, setting a fixed price at which gold can be bought or sold by the government.

“We’re not going to be printing money with Dave Matthews or Jeff Davis on the front of it,” Marshall said, referring to two famous Virginians.

Marshall said he wants to inject competition into the national economy and force the federal government to change its current policy – one he believes will lead to hyperinflation and instability. He also thinks Virginia should be armed with an alternative currency in case it comes under a cyber attack. Many of Marshall’s arguments are similar to ones made by the Tea Party.

In 1933, President Franklin Roosevelt suspended the gold standard to counter deflation brought on by the Great Depression. The country continued to exchange gold internationally until 1971 when President Richard Nixon ended the practice.

Marshall’s commission would examine the impact of the Federal Reserve’s intervention in the banking and credit markets that have resulted in near-zero returns on savings accounts and retirement accounts.

“We’re not immune from the consequences of human behavior,” Marshall said. “At some point there is going to be a dollar that breaks the camel’s back.”

Full article: http://www.foxnews.c … ng-to-gold-standard/

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