Utah ready to accept gold and silver as Legal tender: is the return of the golden rule then?

For many, gold and silver coins are considered assets. They are hoarded for later. However, in Utah, gold and silver coins may be acceptable as legal tender. (This means that the tax on transactions in gold and silver, which is seen as assets, could disappear with). The measure has passed the legislature in the State of Utah and only awaits the signature of the Governor. If you sign, Eagle and Buffalo as money currencies will be accepted. (See, however.) It will not allow foreign gold coins; (no spending your Rands in Utah stores.)

The coins of gold and silver from the Government would be recognized for their value to a collector. This means that it goes beyond just the nominal value of gold and silver coins, issued by the federal Government. The salt lake tribune reports on the difference between the value of the metal in the coin and its face value:

Rep Ken Ivory, R - West Jordan, said, for example, that a decade of 1960 d. of John Kennedy half dollar coin, 90 percent of silver: would have purchased three gallons of gasoline with its value in the mid-1960s. But the value of the silver it would now buy about five gallons of gas, while the nominal value of the currency would buy only a fraction of a gallon.

Here in Utah, legislators and many citizens are concerned about the Federal Reserve and the form of inflation erodes the purchasing power with a fiat currency system. Thus, in addition to accepting the gold and silver as legal tender, Bill also organizes a study on establishing some kind of metal with money system or not.

It is practical to switch to a gold or silver standard?

Due to inflation, the distrust of the Federal Reserve and many other issues, many wonder if it is time to return to a currency which is based on some sort of standard metal - probably gold. The idea is that a gold standard (or even a silver standard) would be to reduce inflation and provide more "real" value for money.

No one would be gold coins in their pockets, but they had money would have to be covered with reserves of gold or silver reserves, or any combination. There is only a problem with the idea of us coxswain Gold: there is lot of money circulating. What we have in circulation so far exceeds the current reservations that the change would be utter chaos.

Another issue is that our fiat currency system goes beyond that he move from pieces of paper. Our monetary system is entirely based on the information. Some of my clients broadcast my control. The banks have a team that tells them how much money have. Then, their banks exchange information with PayPal, which in term exchanges information with my Bank. Viola! There is "money" in my account.

It would be very difficult to try to make the information passing through our system on a daily basis with few tangible assets. The question is that now our economy almost in its entirety is based on the perception of money - the idea that was there. All our Exchange is based on the perception that we will accept information in the team as a means of Exchange.

In addition, considering that gold is more than $1,400 an ounce, might find their ability to fulfil its obligations suddenly reduced if it had to have everything backed by gold. While the Utah Act adds an element of flexibility to the system - a flexibility that is admirable, I am not sure that is actually useful (if it is right or wrong is another matter) to switch to a gold standard or silver.

What do you think? Should we change to some kind of metal with standard currency? Or we are too far in our system of fiat to come out with any sort of practical?

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