1780 Virginia Paper Currency
Virginia Investigates Gold Backed Currency – Alternative to the Dollar
There is a whirlwind surrounding the whole issue of gold back currency that has so many people confused and running around wasting a lot of time. To set the record straight, we had a gold standard under Bretton Woods set up in 1944 and that collapsed in 1971. Why? The issue has NEVER been what IS money, it has been the total fiscal mismanagement of politicians. Socialism created the underlying problem for politicians ran for office effectively bribing voters “Vote for me and you will get this!” The problem became they promised the Moon but never bothered figuring out how to pay for it. That is why the gold standard failed. It was not what BACKED the currency, it was they issued currency without any regard for the purported backing.
Those who champion the gold standard miss the point. It is NOT what we use for money, it is changing the entire political system that is the key. Go ahead – back the currency with gold. I would advise every bond holder to redeem for gold and then what – Goldman Sachs will send a Xmas card from the beach to everyone that voted for that saying thanks, having a wonderful time, wish you were here!
First, under the Constitution, the individual states surrendered their right to issue currency in any capacity. Article I, Section 10 of the Constitution states:
“No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.”
The United States Constitution does not mention paper money by that name, but uses the colonial terms “Bills of Credit” that were promises to redeem. Nor does it refer to “fiat money” in those words. In effect, the states surrendered their right to issue coins or paper currency to the Federal Government. That is what Europe failed to do for they left each state with its own debt but then made that debt “reserve” quality for all banks.
Each state issued their own coins and paper currency as illustrated here using New Jersey. The importance of understanding this issue is to PREVENT another stupid gold standard that does not prevent the state from promising the Moon once again. It is WHY the Euro is collapsing. When this takes place, government then gets aggressive and we lose all our rights. It is not even the fact that “socialism” is inherently wrong from the perspective of showing human compassion. That is a separate issue all together. It is why we have almost 70% of the total national debt is accumulative interest expenditures meaning that despite all the promises, the money (1) never went to the poor, and (2) since 40% of the debt is held outside the USA, then 40% of that money FAILED to even stimulate the domestic economy making it more attractive for jobs to leave the USA rather than be created here.
So here we go again with people FAILING to understand the HUGE difference between WHAT is money and WHO controls its issue. The legislators in Virginia have backed a study into the establishment of an independent “contingency” currency which would enjoy the backing of precious metals. Virginia Del. Robert G. Marshall has proposed the formation of a 10-member commission to investigate the creation of “a metallic-based monetary unit to serve as a contingency currency for the Commonwealth.” Of course the Goldbugs will be screaming see! But they are just fixated with WHAT is money and ignore the fact we have been there, done that, so many times, and it has NEVER lasted. This is up there with Global Warming. Gee, it is warmer today than it was when I was a kid, so we must be responsible. They too refuse to look at history or explain where there were Ice Ages, followed by Warm Ages, millions of years ago before cars!
Nonetheless, Marshall has been one of those people who thinks WHAT is money is the key ignoring the political problems that drive the entire system nuts. He has long pushed for the establishment of an “independent currency” in Virginia, introducing a much-ridiculed bill three years ago which met with emphatic rejection from the House of Delegates. But he obviously fails to even comprehend that no state could create such a “independent” currency without departing from the United States. The SUpreme Court would look at Article I, Sec. 10 and strike it down as a no brainer.
Nevertheless, he has sold his idea recently with America’s continued economic concerns and is finally prompting the Virginia House of Delegates to pass a bill for the study proposal, budgeted at $17,440, with a two-to-one majority. This will be a huge waste of money for it can go nowhere.
His supporters of the independent currency consider it a hedge against inflation should the Fed expand the US money supply excessively. They fail to realize that it not just the supply of money that dictates the value of a currency. It is the confidence in that government. During 1931, capital ASSUMED one nation would abandon the gold standard and then attacked currencies BEFORE there was a default when confidence collapsed and that in fact led to the default.
The state of Utah recognizes precious metal coins minted by the federal government as investment vehicles or collectibles as legal tender. We are talking about a serious problem legally for this to ever get off the ground. It would take years in the courts and we do not have that much time.
This is trial by fire and thus management by crisis. We have to crash and burn before there will be any action. The key is not creating a gold standard, it is restricting government ENTIRELY. In a REAL Democracy, the PEOPLE vote on every issue – not pretend representatives. The spending must be restricted and the people would need to vote on the budget. They can do so from home on a computer. Eliminate the ability of government to act behind closed doors and we will get someplace. Eliminate income taxes and return the nation to indirect taxation as the Founders intended and you will eliminate lobbying for the most part. Eliminate reelections – one term that is it. These are just a few of the issues that have to be addressed. Making money backed by gold – we did that and they still blew it up. So it is not the backing, it is the political corruption.