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Thread: U.S. Currency Backed by Gold and Silver? Yes, But the 'U' Stands for Utah

  1. #1

    U.S. Currency Backed by Gold and Silver? Yes, But the 'U' Stands for Utah

    Earlier this year, the Utah state legislature passed a law making gold and silver coins legal tender. Now, a Salt Lake City-area numismatist hopes to set up a system that will allow Utahans to use those precious metals to pay for anything they want.

    Craig Franco, CEO and president of Pacific Rarities, specializes in the evaluation, purchase and resale of rare U.S. coins and collectibles, and plans to open the Utah Gold and Silver Depository on June 1. His business model, according to the Associated Press: "Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings."

    "With the state of Utah monetizing gold and silver," Franco told DailyFinance, "the question then became, how do we provide a common vehicle for commerce to transact?"

    Franco says he has encountered "a profound amount of interest" in his new service, "coming nationally, not just locally. We have received, in the last 48 hours since the AP article broke, inquiries from the East Coast to the West Coast, from private investors to asset managers."

    Some details remain to be decided, including the exact fee schedule the depository will charge. Franco says clients will have 30 days to clear their accounts following transactions. When debiting, he'll use the spot price of the metal in question on the day a transaction is settled. "But the value of the account fluctuates on an hourly basis," Franco explained, "based upon the global market."

    Less a Useful Law, More a Libertarian Protest

    When it was passed in March, the Utah law was derided as an example of right-wing fringe thinking run amok. Political columnist Dana Milbank denounced it as one of several "curious formulas" mixed by "tea party chemists," akin to a Montana bill celebrating global warming, or an attempt to mandate gun ownership for all adults in South Dakota. Even its backers seemed to admit that its significance was largely symbolic: Rich Danker, a think tank project director who supported the bill, told the AP that it would send "a strong signal to Congress and the Federal Reserve that their monetary policy is failing" -- assuming that Ben Bernanke and the rest of the Fed's Board of Governors care what the Utah state legislature thinks.

    And yet a dozen other states, from Virginia to Idaho, are said to be considering similar legislation, though the practical effects are limited: The Utah law, for instance, exempts the sale of gold and silver coins from state taxes, thereby removing one barrier to their increased circulation. But it can't compel businesses or individuals to accept precious metals in lieu of paper money -- or, as its detractors are likely to call it (with contempt), fiat currency.

    As a form of libertarian protest, however, such laws make sense: One Florida op-ed writer, urging his fellow Floridians to support a "legal tender reform law" of their own, listed the reasons: "Out-of-control federal budget deficits, costly new entitlement programs (such as health care reform), printing trillions of dollars to prop up the central banking system, and three overseas wars -- all causing mounting inflation."
    U.S. Currency Backed by Gold and Silver? Yes, But the 'U' Stands for Utah - DailyFinance

    Not a recent article, but the idea seems interesting, what are your thoughts on this matter?

  2. #2
    Simple and something that escapes gold/silver mavens....

    There is not enough gold and silver in the world to take care of world commerce!

    The USA does not have enough gold and silver to cover our currency!

    So I look at gold/silver people as on par with the doomsday preppers!

    Oh, think about this...
    End of civilization comes....someone shows up at your bunker and wants to buy food....has gold....
    Nope, not me!
    I can eat food, but not gold!

  3. #3
    Quote Originally Posted by iowadawg View Post
    End of civilization comes....someone shows up at your bunker and wants to buy food....has gold....
    Nope, not me!
    I can eat food, but not gold!
    Ammunition. Never goes bad, always useful.

  4. #4
    Utah has gold. Have you been to Salt Lake City and seen the Mormon temple? (The top of it)

    3549370284_f654a03508_o.jpg
    I am also a writer for Serpholic Media. You can find some of my articles here: Serpholic Media Blog

  5. #5
    Quote Originally Posted by Mike Dammann View Post
    Utah has gold. Have you been to Salt Lake City and seen the Mormon temple? (The top of it)
    I visited Bryce Canyon and Zion National Parks in Utah, but I didn't go to Salt Lake City

  6. #6
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    Quote Originally Posted by iowadawg View Post
    Simple and something that escapes gold/silver mavens....

    There is not enough gold and silver in the world to take care of world commerce!

    The USA does not have enough gold and silver to cover our currency!
    There isn't enogh gold and silver. But the US government has plenty of real estate assets that can be used to back a currrecy.

    In my opinion the Democrats have decided to run out the credit card and then pay back the national debt with inflated dollars.

    After WW1 the Weimar Republic did the same thing with the PaperMark and inflated to the rate of 1 trillion PaperMarks to 1 Reichmark (Gold backed). They didn't have enough gold and instead used the Rentenmark backed by industrial and agricultural real estate assets to make the transition.

    The US has plenty of land and Fannie/Freddie/FHA has trillions in real estate assets. In this respect there shouldn't be a problem.

  7. #7
    It is not just a matter of not having enough gold and silver to back the currently, we do not have enough currency to back all of the dollar credits in people's bank accounts. Less than 5% of the dollars that show up electronically in bank accounts actually exists.

    The History Channel ran several programs back-to-back a few weeks ago. All were focused on the question of whether or not there is any gold in Fort Knox. Even the president is not allowed into Fort Knox and no physical audit has been done. The general consensus in the programs was that the gold was stolen years ago. What complicates matters is that not all of the gold supposedly held there is ours. Fort Knox is supposed to be holding stockpiles of gold for England, Germany and several other countries, none of which have ever been allowed to audit their holdings. If it became known that there isn't any gold in Fort Knox, the worldwide economy would collapse.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  8. #8
    It reminds me this article:

    The Drilled Gold Bars Filled With Tungsten
    The Drilled Gold Bars Filled With Tungsten - Forbes

    I think we will be surprise to discover that the stockpile have been vandalized, lend to or simply disappeared...

    Another interesting article and interview to watch, they also talk about audit and the real stock of gold in US:

    Hyperinflation and Complete Collapse – Nick Barisheff
    Hyperinflation and Complete Collapse – Nick Barisheff | Greg Hunter’s USAWatchdog

    Nick Barisheff: Gold Price Could Easily Double, Hyperinflation and Complete Collapse


  9. #9
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    The US national debt is now $16.2 trillion and is expected to grow to $21 trillion after 4 more years of Barry Obama. At $1,700 an ounce, the U.S. gold reserve is worth approximately $487 billion.


    U.S. National Debt Clock

    Quote Originally Posted by TopDogger View Post
    It is not just a matter of not having enough gold and silver to back the currently, we do not have enough currency to back all of the dollar credits in people's bank accounts. Less than 5% of the dollars that show up electronically in bank accounts actually exists.
    The excess dollars are exported to OPEC, China and Japan to pay for imports. When they stop accepting dollars, we are in trouble. Until then the shelves at Walmart are full.

    Rush Limbaugh - Party Like It's 1929


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