You might have read that the Republican-controlled House and Senate, in Arizona, has sent Legislation, authorizing gold and silver coins as legal tender, to Governor Jan Brewer (R) for her signature. Governor Brewer hasn’t indicated whether or not she would sign it. That would make it the second state, along with Nevada, to authorize the precious metals in lieu of cash transactions. (That also means that each state would mint its own coins.) Some ten other states are considering similar proposals.
Perhaps this is the next version of the rash of states that were starting referendums to secede from the U.S., after the Presidential Election, last November. I can’t figure which is nuttier–a bunch of Sovereign Southern States, or each one having their own coinage. Now, what scams will the “Right” come up with next?
The U.S. Dollar used to be based on the so-called “Gold Standard”. In those days, the Federal Reserve (acting for the Treasury Department), entered the Gold Markets to maintain the price of gold within a tight ban. It bought Gold when the price dropped, and sold it when the price rose. Has Arizona and Nevada thought this through? And, are they prepared to act? And what about big swings in the price of gold or silver?
Have you ever tried to use a Hundred Dollar bill in a store for a small purchase? Unless they know you, chances are that it will not be accepted. Well, suppose you travel from, let’s say, Flagstaff, Arizona to Las Vegas (just across the boarder) for the weekend. Will you have to convert your coins–from one state’s to the other–and, then, reverse that upon your return? Also, how about when more states get into the act?