Tuesday, March 8, 2011

Utah Lower House Approves Gold, Silver Monetization

As reported by the New American,
The Utah House of Representatives voted on March 4 to make gold and silver coins issued by the federal government into legal tender within state borders, prompting praise from sound-money advocates across the nation. The legislation will now be taken up by the state Senate.

In addition to possibly making precious-metal coin lawful money for intrastate and government transactions, the bill would exempt gold and silver from state sales, income, and capital-gains taxes. The legislation also states that individuals cannot be compelled to accept precious metals instead of Federal Reserve Notes. It was approved in the House with a vote of 47 to 26....

It's certainly precedent-setting, although not yet law. Ironically, a guide to what might happen is Prohibition. An alcohol ban was first enacted by the state of Kansas in 1881, and migrated to other states before becoming Constitutionally-authorized U.S. law in 1920. Using that as a template, the United States may be back on the gold standard sometime in the 2040s or 2050s.

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