Personal investing in the standard that pays off debt is the solution to resolving debt. When the Great Depression came upon on the U.S. in 1929 China had stockpiled in silver and in effect removed itself from the impact of the Depression. Also, any implication of inheriting inflation as the U.S. did with that of european nations, China absolved itself.
Out of fiat currencies, debt is inherited from one administration to the next. The same as it can be inherited from one nation to another. The difficult matter in acceptance of the return to the gold standard is on a household level. Where the personal investor can, out of lack of education of the precious metal, see the central bank reserves growing in Europe and then experience a lack of confidence in the commodity as a personal coin or bullion tender.
Only a few states have passed legislation to accept gold and silver coins as legal tender (Utah, South Carolina and North Carolina), Colorado and ten other states are still contemplating following with similar legislation. In fact Colorado killed Senate Bill 137 which would have reaffirmed the right to use gold and silver coins as legal tender currency in the state of Colorado.
Here is the rundown on the latest efforts among states to adopt legislation to accept gold or silver coins as legal tender currency:
• Tennessee – Awaiting approval from state government to create a separate currency.
• Iowa – Awaiting approval from state government to create a separate currency.
• Minnesota – Awaiting approval from state government to create a separate currency.
• Georgia – Awaiting approval from state government to create a separate currency.
• Missouri – Sound Money Act passed the House adds gold and silver as legal tender alongside Federal Reserve notes, giving the citizens of Missouri a choice in currency.
• South Carolina – passed legislation to accept gold and silver coins as legal currency tender, however, are awaiting approval from state government to create a separate currency.
• Utah – Governor Gary Herbert signed a bill introducing an alternative currency in March of 2011. This bill recognized gold and silver coins issued by the US Mint as legal tender.
The remaining states have yet to respond with presenting any legislative bills to their floor for consideration.
Article 1, Section 10 of the Constitution grants States the power “make any Thing but gold and silver Coin a Tender in Payment of Debts”. Which has been replaced by Article 1, Section 8 of the Constitution which grants Congress the power “to coin money, [and] regulate the Value thereof.”
So the advent of the aftermath of 1971 the Bretton Woods system was the U.S. terminating the conversion of the dollar to gold. With this bill passage has allowed the Federal Reserve to grant itself the factor in assessing the gold standard and its value.
So what we are up against is States accepting the Republic principle and not the National Government one of devaluing a fiat currency.
Until states accept the gold standard and it prevails abroad in the U.S. following the guidelines of the “open account” practice currently employed by banking institutions with the fiat currency, will we be at the point of seeing the national acceptance of the gold standard.