I wrote an article advocating for Gold as Unpegged Legal Tender (GAULT) almost two years ago. This morning I see a report where my home state of Texas has (re*)introduced legislation to implement it locally: https://blog.tenthamendmentcenter.c...acked-gold-and-silver-transactional-currency/ * this legislation was introduced in the last legislative session, but it was introduced late in the session and didn't make it through the legislative process which was busy considering a bunch of other issues.
Questions/comments/issues immediately come to mind: 1. at a domestic level while the Federal government receives taxes and dues and remits payments denominated in USD then the GAULT proposal will not undermine the government's monopoly on the issuance of currency 2. while Federal Treasury issues securities and pays interest on those securities denominated in USD then the proposal will not undermine the government's monopoly on the issuance of currency 3. the State will have to decide whether it wishes to and has the capacity to pay its own obligations and receive payments in the equivalent of gold or continue to use Federal issued fiat 4. the impact of inflation on the State's capacity to meet its obligation to provide in-specie transactions based on a gold standard should it continue to also use Federal issued currency 5. opposition to government establishing a hoard of assets as a means to provide protection for its citizens against the effects of inflation when individuals can just go out and buy gold and other assets themselves 6. opposition to the proposal on the grounds that it is "wasteful" as it diverts funding from other public spending 7. the possibility that there will not be enough gold-pegged currency circulating to meet need 8. hoarding 9. the inflationary effect of declining gold prices 10. the leaking of "wealth" beyond the borders of Texas The Texas legislature has got its work ahead of it if it wants to pass such a law.
The simplest solution would be to formalise the use of a private currency alternative eg BTC as legal tender. But then the Founding Father's understandable inability when writing the Constitution to perceive an alternative to minting coins from precious metals comes into play.
Over the past two years, there have been pushes in the State legislatures of various American States to build their own bullion depositories and to legalize gold/silver. Texas leads the pack as far as actually building their Bullion Depository. If this bill passes in Texas, I expect that more States will follow suit in time. How awesome would it be if all (or even most) States enacted GAULT legislation and payment system infrastructure for trading in gold/silver were being deployed.
There are too many unanswered questions and complications to arrive at the conclusion that it would be awesome. At this stage at best it's an option worth exploring that has the potential to raise more problems than it solves.
Its all just talk. Gov Abbot is just another WEF shill and doing his part of shipping illegals all over the US while blaming others. He's in on all of it as much as the next one and just another traitor that acts like he can't secure his own border.
Populism is the concern that many have in response to the threat posed by elites, real or perceived. I think that it can distract from the fundamental issues at times, in this instance, the debate between government issued fiat and a commodity backed currency.
From what I've been reading in the comments sections of news reports from the US (Newsweek), broadly speaking conservatives are in favour of Federal intervention at the local and State level when a Republican is in the White House, but they're all State and local rights when it's a Democrat as President. I would assume the same thing applies in reverse to the "liberal" side of politics over there. I can't see that changing for many years.
