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Trust In Gold Not Bernanke As U.S. States Promote Bullion

 

 

 

 

   Yesterday we reported on Arizona’s End Run Around The Fed . Today we are happy to report that Arizona’s move is far from an isolated occurrence . Nearly a dozen other states have seen the light and are moving to allow their citizens some means of protecting their wealth before Obama and Bernancke collapse the whole dollar house of cards . 

” Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.

Arizona is poised to follow Utah, which authorized bullion for currency in 2011. Similar bills are advancing in Kansas, South Carolina and other states.

“The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” said Gatch, who studies alternative currencies at the Edmond, Oklahoma-based school. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.”

Bernanke has pushed interest rates to near zero since the 18-month recession that began in December 2007. The Fed said in March it would continue buying $85 billion in securities each month in a program known as quantitative easing that has ballooned its assets beyond $3 trillion and is aimed at keeping long-term borrowing costs low to support economic growth.”

 

” In Texas, lawmakers are considering a measure supported by Republican Governor Rick Perryto establish the Texas Bullion Depository to store gold bars valued at about $1 billion and held in a New York bank warehouse. The gold is owned by the University of Texas Investment Management Co., or Utimco, which took delivery of 6,643 bars of the precious metal in 2011 amid concern that demand for it would overwhelm supply.

The proposed facility would also accept deposits from the public, and would provide a basis for a payments system in the state in the event of a “systemic dislocation in a national and international financial system,” according to the measure.

Should Texas take such a step, it would offer sovereign backing for deposits and make buying and storing gold easier, said Jim Rickards, senior managing director at Tangent Capital Partners LLC in New York and author of “Currency Wars: The Making of the Next Global Crisis.” He said the coin measures, while impractical, have symbolic value.

“We are seeing a distinct movement back to a world where gold is considered money,” Rickards said.

The U.S. Constitution bars states from coining money and also forbids them from making anything except gold and silver coin tender for paying debts. Advocates say that opens the door for the states to allow bullion as legal tender. The measure being considered in South Carolina would recognize foreign or domestic minted coins as legal tender.

In Utah and some other states, the measures also eliminate state capital gains or other taxes on the coins.” 

Related articles

• U.S. States Promote Bullion As Legal Tender ( Bloomberg ) (ampgoldportfolio.com)
• Trust in Gold Not Bernanke as U.S. States Promote Bullion (libertycrier.com)
• U.S. states push to use gold as money as trust in Bernanke wanes (business.financialpost.com)
• Over a Dozen States Seek Gold As Legal Tender … Bernanke Furious (secretsofthefed.com)
• Arizona pushes to have gold as legal tender (rt.com)
• As Confidence In Dollar Wanes, Over A Dozen States Push For Gold As Legal Tender (zerohedge.com)

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