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Virginia Considers Gold as Alternative Currency for When FED Breaks Down
Market Oracle ^ | 12 Jan, 2011 | Jason Hamlin

Posted on 01/12/2011 9:11:30 AM PST by Errant

WHEREAS, the present monetary and banking systems of the United States, centered around the Federal Reserve System, have come under ever-increasing strain during the last several years, and will be exposed to ever-increasing and predictably debilitating strain in the years to come.

WHEREAS, many widely recognized experts predict the inevitable destruction of the Federal Reserve System’s currency through hyperinflation in the foreseeable future.

WHEREAS, in the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System, for which the Commonwealth is not prepared, the Commonwealth’s governmental finances and Virginia’s private economy will be thrown into chaos, with gravely detrimental effects upon the lives, health, and property of Virginia’s citizens, and with consequences fatal to the preservation of good order throughout the Commonwealth.

WHEREAS, Virginia can avoid or at least mitigate many of the economic, social, and political shocks to be expected to arise from hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System only through the timely adoption of an alternative sound currency that the Commonwealth’s government and citizens may employ without delay in the event of the destruction of the Federal Reserve System’s currency.

WHEREAS, that the Federal Reserve System’s currency is not redeemable in gold or silver coin or the equivalent in bullion is being identified by more and more experts as a, if not the, major reason for the ever-increasing instability of the Federal Reserve System.

(Excerpt) Read more at marketoracle.co.uk ...


TOPICS: Business/Economy; Constitution/Conservatism; Government; News/Current Events; US: Virginia
KEYWORDS: 10thamendment; economiccollapse; economy; gold; goldbugs; statesrights; vageneralassembly; virginia
Hey Louisiana, PLEASE take the same precautions!
1 posted on 01/12/2011 9:11:35 AM PST by Errant
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To: Errant

Great!

So, whose likeness is going to be on the coins? Lee, Stonewall Jackson, Jeff Davis?

Hah! That would drive people crazy. :)


2 posted on 01/12/2011 9:19:01 AM PST by RexBeach ("There is no such thing as a good tax." Winston Churchill)
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To: Errant
Uhh. It's too late.

Congress has declared that Federal Reserve Notes are Legal Tender for all debts public and private. Virginia could have objected as the Constitution clearly states that one class of debts must be paid in Gold and Silver Coin, which means that Federal Reserve Notes CANNOT be tendered for such debts. But Virginia didn't want to have to pay their debts in gold or silver so they just kept quiet.

ML/NJ

3 posted on 01/12/2011 9:19:32 AM PST by ml/nj
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To: Errant; ForGod'sSake

Can a state opt out,via the 10th amendment, I wonder?


4 posted on 01/12/2011 9:24:02 AM PST by dynachrome ("Our forefathers didn't bury their guns. They buried those that tried to take them.")
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To: Errant

Gold is currency.

Money is an IOU.


5 posted on 01/12/2011 9:29:01 AM PST by VanDeKoik (1 million in stimulus dollars paid for this tagline!)
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To: Errant

The mortgage company wants dollars, not gold, so I’ve got that going for me.


6 posted on 01/12/2011 9:32:35 AM PST by mikey_hates_everything
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To: Errant
Silver will work.

A 1/10 oz. gold coin (which I personally believe is too small to be useful) is worth about $140 in FRN purchasing power.

A currency with the smallest unit worth FRN140 is not useful.

Silver dimes are worth about FRN3, I think people will need even smaller units than that to facilitate commerce.

7 posted on 01/12/2011 9:34:06 AM PST by Jim Noble (Third Bank of the United States: Ever wonder why they didn't call it that?)
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To: dynachrome; ml/nj
From the article, "Virginia considers it their Constitution right" and "Virginia is considering the establishment of a joint subcommittee to study whether the Commonwealth should adopt a currency such as gold or silver to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System".

I for one think the odds do favor a Federal Reserve System breakdown or default. In that case, it would be prudent to have another system in place to prevent a total economic collapse.

8 posted on 01/12/2011 9:34:52 AM PST by Errant
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To: Jim Noble
Jim, we could still use copper pennies and nickels based on their content value.

It might pay to start putting some of these away as well.

9 posted on 01/12/2011 9:39:26 AM PST by Errant
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To: Errant

If they issue scrip backed by gold/silver, I bet there will be a lots of takers.


10 posted on 01/12/2011 9:41:02 AM PST by dynachrome ("Our forefathers didn't bury their guns. They buried those that tried to take them.")
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To: RexBeach

Donald Trump


11 posted on 01/12/2011 9:52:39 AM PST by bunkerhill7
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To: Errant

The Gov was on the radio yesterday and said this was just an idea presented by one person, and said it is not being taken seriously at all.


12 posted on 01/12/2011 9:53:15 AM PST by stuartcr (When politicians politicize issues, aren't they just doing their job?)
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To: dynachrome

I’m not so sure.

The reason being that’s just more of the same old same old.
The goal being to convince somebody (read SUCKERS) that this piece of paper really has value and is really, truly backed by something that you exclusively own. And it ALWAYS descends into fraud and fractional reserve status and breaks down.

How many times do people have to get smacked upside the head before they get a clue?


13 posted on 01/12/2011 9:53:18 AM PST by djf (Touch my junk and I'll break yur mug!!!)
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To: Errant
it would be prudent to have another system in place to prevent a total economic collapse.

"Liberals" decide among themselves what they think "prudent" and then work to implement it ignoring the Constitution.

That's not our style.

ML/NJ

14 posted on 01/12/2011 9:54:51 AM PST by ml/nj
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To: Errant

Most pennies are zinc, not copper.

FYI


15 posted on 01/12/2011 9:55:48 AM PST by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
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To: ArrogantBustard
Yea, pennies would have to be pre-1982. Maybe we could use cut-up water pipe?
16 posted on 01/12/2011 10:04:27 AM PST by Errant
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To: dynachrome
Can a state opt out,via the 10th amendment, I wonder?

I've come to believe the States can do just about anything their citizens will allow; federales be damned. I'm no student of history BUT IMHO our current state of affairs closely resembles pre Civil War times. A feral government crapping on the unalienable rights of SOME of the people and the Constitutional "police" power of the States. Will the feral government press the issue or will they blink? Will SOME of the States stand their ground, or will they blink? Do the American People still have the cojones that will be necessary to cowboy up? THAT is the only thing that really matters.

That said, one of the few enumerated powers of the feral government was and is the power to set the type and value of a national currency. Do FRN's qualify? Beats me. ;^)

17 posted on 01/12/2011 10:05:48 AM PST by ForGod'sSake (You have just two choices: SUBMIT or RESIST with everything you've got!)
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To: stuartcr
Maybe it will gain more supporters. Next to repealing the 16th Amendment, it's a way of good way for the States to regain some control back from the Federal Government.
18 posted on 01/12/2011 10:09:18 AM PST by Errant
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To: Errant

Maybe we can start mining the Appalaicians?


19 posted on 01/12/2011 10:12:17 AM PST by stuartcr (When politicians politicize issues, aren't they just doing their job?)
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To: Errant

“Stockpiling Nickels was Easier than I Had Thought”

http://www.survivalblog.com/2010/02/letter_re_stockpiling_nickels.html


20 posted on 01/12/2011 10:14:31 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: Errant

But more importantly, a way to continue some form of commerce should the dollar collapse.


21 posted on 01/12/2011 10:15:39 AM PST by Errant
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To: jiggyboy
"Easier, but more expensive"

Bulk Nickels

22 posted on 01/12/2011 10:21:41 AM PST by Errant
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To: ml/nj
Who said anything about ignoring the Constitution? Also, another trait of liberals that I've noticed is the absence of “common sense”.
23 posted on 01/12/2011 10:38:06 AM PST by Errant
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To: djf

Maybe as long as it is redeemable in gold/silver. Trouble is, the state then has to set the amount, I guess.


24 posted on 01/12/2011 11:25:00 AM PST by dynachrome ("Our forefathers didn't bury their guns. They buried those that tried to take them.")
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To: Jim Noble
"Silver dimes are worth about FRN3, I think people will need even smaller units than that to facilitate commerce."

I think so too.

That's why I have collected thousands of nickels (75% copper/25% nickel). Currently a nickel is worth 6.87 cents but will never be less than 5 cents. See here.

25 posted on 01/12/2011 11:37:15 AM PST by blam
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To: Errant
"Yea, pennies would have to be pre-1982. Maybe we could use cut-up water pipe?"

I just sold 129 pounds of scrap copper water pipe for $3.50 per pound. I turned right around and changed those green backs into nickels.

When copper was at $4.40 a pound on the spot market, I calculated that it was worth about 36 cents a Troy ounce.

26 posted on 01/12/2011 11:44:14 AM PST by blam
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To: blam
Nice payday and tax free no doubt. ;)

Btw, for future reference in case of dollar collapse, 2 - 1/2 inches of 10 gage copper wire roughly equals the copper content of a pre-1982 copper penny.

27 posted on 01/12/2011 11:56:50 AM PST by Errant
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To: blam

What’s up with palladium? Is cold-fusion for real? I’ve heard Gerald Celente and others insinuating that we’re about to see major progress in alternative energy. Is there some other reason besides catalytic converters driving it up in price?


28 posted on 01/12/2011 12:09:45 PM PST by Errant
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To: Jim Noble

Very useful website:
http://www.coinflation.com

Shows you the current value of coins based on their metal content.

FYI, copper pennies right now are worth 2.9 cents.
Silver dimes about $2.13.
Silver nickels (42-45) about $1.66


29 posted on 01/12/2011 12:20:30 PM PST by MrB (The difference between a (de)humanist and a Satanist is that the latter knows who he's working for.)
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To: Errant
From the article, "Virginia considers it their Constitution right" and "Virginia is considering the establishment of a joint subcommittee to study whether the Commonwealth should adopt a currency such as gold or silver to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System".

Didn't anyone notice that the Constitution says that "No State shall... coin Money"? (U.S. Const., Art. I, section 10, cl. 1).

30 posted on 01/12/2011 12:28:24 PM PST by Lurking Libertarian (Non sub homine, sed sub Deo et lege)
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To: Lurking Libertarian
Didn't anyone notice that the Constitution says that "No State shall... coin Money"? (U.S. Const., Art. I, section 10, cl. 1).

I believe the article only mentions, "the Commonwealth should adopt a currency such as gold or silver" and not anything about "coining" money.

In the same Art. I, section 10, cl. 1, the Constitution states that "No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts".

31 posted on 01/12/2011 12:59:46 PM PST by Errant
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To: Errant
"What’s up with palladium? Is cold-fusion for real? I’ve heard Gerald Celente and others insinuating that we’re about to see major progress in alternative energy. Is there some other reason besides catalytic converters driving it up in price?"

Don't know. That's a little exotic for me.

32 posted on 01/12/2011 2:32:53 PM PST by blam
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To: Errant

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;

The above is from Article I Section 10. To me this means that staes CAN coin money but only of gold or silver and only in payment of debts.


33 posted on 01/14/2011 5:03:25 AM PST by rfreedom4u ("A patriot must always be ready to defend his country against his government.")
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