Legislators in the U.S. State of Utah has passed a bill that allows gold and silver coins accepted legal tender in the State. The Bill awaits the signature of the State’s Governor. Proponents of the law have argued that there was an urgent need to protect the state’s finances against a ´ continued erosion of the dollar. The legislation is supported by economists and market analysts.
Policy makers in several American States fear that the dollar is about to fall into oblivion. Another nine state legislatures are discussing similar bills, which aims to the reintroduction of the gold and silver as legal tender. Among these States, Montana, Missouri, Colorado, Idaho, Indiana, New Hampshire, South Carolina, Georgia and Washington. Utah’s bill, the State’s citizens to pay taxes with silver and gold. All governmental services as well as notifications of contributions may also be of precious metals.
Passage of the new law will lead to gold and silver that compete with the Federal Reserve note. Confidence in the dollar and the system’s fiat money among international investors could be affected by Utah’s new legislation. After all, why should foreigners to buy American debt securities and other securities the dollar when also u.s. policy makers will no longer have confidence in their own currency? Utah’s new Bill, called The Utah Sound money Act, expressly the existing system of paper money. Until 1971 was the United States to a gold standard. President Richard Nixon abolished the last vestiges of the gold standard for supposedly, making currency markets more flexible.
In Virginia, has recently passed a Bill lawmakers that will allow the State to mint coins, gold, silver and Platinum. Virginia focusses assurance against a weakened dollar. If Utah Governor Gary Herbert signs The Sound money act in legislation and more States followed Utah and Virginia, can pressure grow on politicians in Washington to follow suit. As Utah decision-makers has explained, had alternative monetary policy observed that American citizens. Federal Reserve (Fed) quantitative easing (QE) policy is distrusted by many across America.
According to several State and municipal law makers, Fed endangers the profitability of the dollar, and the country’s rising debt and huge deficit will likely lead to a crisis in the bond market. The market for municipal bonds have been under pressure for several months, and that the Fed is now the largest buyer of U.S. Treasury bonds — a major buyers than entire nations such as China and Japan. The Central Bank is monetising the issuance of federal debt. This development will eventually lead to a further devaluation of the dollar. Utah ´ ‘s new legislation – could be if the Governor signs it to pave the way for groundbreaking monetary changes in the United States. It’s probably not much longer until other States followed Utah’s lead, which will lead to a faster $ ´ ‘s fall from grace.