Last week the Utah state house voted on a bill that would allow silver and gold coins issued by the United States mint to be legal currency. In other words, you can use gold coins and silver just as you would any other currency in the state of Utah. What was even more surprising is that the bill will also allow Utah legislators to look at alternative types of currency to be used in the state.
Wow, what’s going on here? Are we returning to the gold standard. Are we completely losing our trust in the “full faith and credit of the United States”? Well, it certainly appears that way. It is interesting to note that the legislation particularly calls out that Utah citizens can pay their state taxes in gold. That means Utah would rather have gold coins (a real, valuable asset) in the bank than have paper in their banks that is printed and created out of thin air by the Federal Reserve.
As the trust in what our federal government is doing to our wealth as a nation and their lust for more of the citizenry’s hard earned dollars, this is just the first step in preserving what little wealth is left and taking some of the power out of the hands of Uncle Sam. Critics of the gold standard will complain that it is limiting to the governments ability to move money around as they see fit and that it leaves the economy susceptible to shocks to the financial system and my answer is, this is exactly why we need to get back to the gold standard. When currency is based on a tangible asset such as gold, governments cannot manipulate the monetary system as easily and can’t just hand over billions to Wall Street as they did in the so-called economic stimulus program.
Who knows, maybe many more states will start to make steps such as Utah recently did and we will start to get back to a much more stable and sound monetary system. If you want to get in on the pre gold rush, you can buy gold coins here.
