This month, Utah became the first state to make gold as good as cash. This is an amazing move towards currency solvency. The Utah State Legislature actually legalized gold and silver coins as currency and went one step further by exempting the sale of gold and silver coins from state capital gains taxes—thus completing the cycle of theory to reality.
A depository is now in the works to hold gold and silver coins for Utah citizens and to offer a debit card for purchases at any Utah business establishment just in case people don’t want to carry gold and silver around in their pockets. This is the equivalent of a gold standard, and for people who use metals as currency, it will do one thing extremely well: OUTPACE INFLATION!!!! As currencies collapse, causing prices to be relatively higher, they will beat inflation; their currency will maintain its purchasing power and allow the citizen to basically outlast the boom and bust cycles that are created by the ridiculous policies of the Federal Reserve.
Kudos to you, Utah! There are other states that are following suit, and if this alternative currency movement gains momentum through state legislatures passing the laws rather than a rogue group of people deciding it will offer alternative currencies, it could have some serious legs and maybe…just maybe be the stimulus to cause policy makers to rethink their policy actions of weakening our currency.
However, I expect this to be challenged in the federal courts as it is a complete slap in the face to our “legal tender.” A rough road is ahead for states wanting to establish alternative legal tender, but I am encouraged that this is a step in the right direction.
