The problem with this is that American Eagle gold coins are already legal tender at face value, under the power of Congress to coin money and regulate the value thereof.
So, Arizona does not need to do anything to make a one-ounce gold coin legal tender for $50, and they cannot increase its legal tender value under the supremacy clause.
I will sell you all the goods you want at $50/ounce.
If the money was loaned, it exists
Money is not tangible. Money is ledger entries.
Gold money ping.
With a name like Hussein, what's to trust?
Backed by what? The only “government backing” has on the Fed’s fiat money is that Congress had mandated that it be used to pay taxes and to settle debts denominated in dollars.
THERE IS NO BACKING, in the normal sense of the word.
We don’t need to use Gold or Silver as currency, we need it as a brake on the printing of fiat money. Wouldn’t it be better if your dollars gained in value as you held them instead of lost value. Limit the dollars printed to the supply of gold and let the value of the dollar fluctuate bases on the value of the gold.
Because money can only be lent once? Wow, what a silly thing for him to say.
There are some interesting possibilities here. The first is that specie has a natural ally in non-legal tender ‘scrip’, which is a very controlled currency that acts in parallel with the dollar, and is quite legal.
Since a state cannot issue scrip directly, it would license a private company to do so, being heavily regulated and audited by the state. As a controlled currency, no matter how the dollar fluctuated, the value of the scrip and the prices of what is purchased with it are fixed, changing only on a monthly basis.
So say an object sells for $1 or 1 scrip value. The dollar could experience Zimbabwe-style inflation, but the object would still cost 1 scrip for the entire month. And gold is part of this equation, for its official value could be all over the map, but if its value for scrip was a good deal, it would continue to be a good deal.
So it *always* works to the advantage of consumers. If the dollar is better, they use dollars; if scrip is better, they use scrip; and if just holding on to commodities, like gold, is better, they can do that too.
The Federal Reserve Note we use as money is worth no more than the South’s Confederate dollar. It is merely printed paper.
It’s value is that it is now accepted as legal tender. So was the Confederate dollar for a while. When people stopped accepting it ,it’s value wasn’t worth the paper it was printed on. Neither is todays federal reserve Note.
There is nothing there to back it’s denomination.
The Bonds that back it were printed on the same paper. It too is worthless when it stops being accepted.
Is that day coming? I don’t know, but I will say that our government isn’t doing anything to stop it from coming.
6. Far more gold has been sold than really exists (the rest is multiple fictional accounting entries).
7. When/If anyone ever audits Ft. Knox, it's gonna be Surprise, Surprise!
Stores will have to deal with exchange rates between gold & the dollar. Why? Because the goods they sell they pay for in dollars, their books are in dollars - much easier math than Troy ounces, & the gubmint expects to see the books - audits & taxes - in dollars. So, even if a business trades in gold, they still have to do the conversion - often.
Anyone who has had to deal with exchange rates in retail stores in foreign countries KNOWS that the stores make a big profit by taking dollars in addition to the native currencies. I have seen stores side by side with different exchange rates. Banks, too.
People paying for retail goods in gold, especially for small purchases, will lose badly with the store's exchange rate & rounding, not to mention faulty/fraudulent store scales.
With the price of gold fluctuating daily, how will the frugal shopper compare prices among stores with different exchange rates without doing some serious math for every potential purchase? At ~$51.32/gram today, how will you buy a Happy Meal for the kids at McDs with a fifth of a gram or less of gold without some serious, accurate scale work? Measuring out gold dust isn't the same as counting bills & change. Be careful in the wind!
The financial value of gold is in holding it as a hedge against inflation. That is, holding it, not spending it to buy groceries & consumer goods.
Nana; you got out in time!!