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Old 01-16-2009, 10:15 AM
 
Location: The Woods
17,208 posts, read 22,974,290 times
Reputation: 9655

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Introduced Version, Senate Bill 0453
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Old 01-16-2009, 10:17 AM
 
Location: Raleigh, NC
9,043 posts, read 11,826,013 times
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Quote:
Originally Posted by arctichomesteader View Post
The Feds will shut this down quickly if it passes.

It is inevitable for gold to go black market, IMO. Establish your contacts now so you don't have to backdoor barter with strangers.
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Old 01-16-2009, 10:39 AM
 
878 posts, read 1,917,873 times
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The proposal includes provisions for conducting business entirely in gold and silver coin. The federal government has the exclusive power to coin money. If they went with gold certificates or electronic gold accounts, it wouldn't be a problem.
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Old 01-16-2009, 12:10 PM
 
Location: Londonderry, NH
41,478 posts, read 52,838,257 times
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I would go with hard metal and no certificates of anything. If the country wants more currency it can dig up more gold and silver or buy it from others with wheat or manufactured goods. This would be an interesting experiment in inflation control.
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Old 01-16-2009, 01:12 PM
 
12,872 posts, read 22,697,286 times
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Out of curiosity how will using a natural resource that one can essentially mint themselves (by digging it up) help the economy? And what would happen to the current crop of gold mines? Would they become nationalized?

Wouldn't it just be easier to stop spending and spend less than the governments' income is?
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Old 01-16-2009, 03:08 PM
 
Location: The Woods
17,208 posts, read 22,974,290 times
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Quote:
Originally Posted by ViewFromThePeak View Post
The Feds will shut this down quickly if it passes.

It is inevitable for gold to go black market, IMO. Establish your contacts now so you don't have to backdoor barter with strangers.
They'll try, but there's this pesky thing in the Constitution, states may not:

Quote:
make any Thing but gold and silver Coin a Tender in Payment of Debts
Article I Section 10. So quite arguably, by making FRN's and the current base metal coins legal tender within a state, a state is violating the Constitution.
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Old 01-16-2009, 03:09 PM
 
Location: The Woods
17,208 posts, read 22,974,290 times
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Quote:
Originally Posted by zman0 View Post
The proposal includes provisions for conducting business entirely in gold and silver coin. The federal government has the exclusive power to coin money. If they went with gold certificates or electronic gold accounts, it wouldn't be a problem.
The state wouldn't coin its own money, so no problem there.
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Old 01-16-2009, 03:11 PM
 
Location: The Woods
17,208 posts, read 22,974,290 times
Reputation: 9655
Quote:
Originally Posted by wheelsup View Post
Out of curiosity how will using a natural resource that one can essentially mint themselves (by digging it up) help the economy? And what would happen to the current crop of gold mines? Would they become nationalized?

Wouldn't it just be easier to stop spending and spend less than the governments' income is?
Because currently our money is just toilet paper and it can be printed at the whim of the fed. The founding fathers originally intended for only gold and silver to be legal tender to act as a limit, because they had all experienced what happens with fiat, paper money: it loses its value and eventually becomes worthless. Hyperinflation like that seen in the Weimar Republic or modern day Zimbabwe is not possible with something like gold or silver because there's a limit to it.
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Old 01-21-2009, 08:29 AM
 
88 posts, read 172,619 times
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accepting gold as a term for payment does not sound as a good idea for a state.
Its very risky.
Gold prices vary much. With a bad economy gold prices rise. Indiana is betting that the economy is going to stay bad.
If Indiana takes in payment in gold and is able to maintain a stock pile, what happens when the price of gold is deflated as the economy improves.
The state stands to lose much.
If it was for a private business, I would say go for it, but since they are dealing in public funds I would say that they should promote some fiscal responsibility and invest in a more "sure thing" with the public funds.
Bad Idea Indiana
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Old 01-21-2009, 09:10 AM
 
Location: Heartland Florida
9,324 posts, read 24,272,537 times
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I would think that switching to gold as a payment for debts would be more Constitutional than Federal Reserve bills of credit. As for gold prices, I think they have nowhere to go but up due to the constant flood of fed checkbook "money" that will soon flood the market.
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