Washington State proposed bill to make gold and silver legal tender

actually your wrong...pms can rise and fall 10's of percents in a day one day it's $26.63 and the next its $30+

same for gold if the right news comes out...

 

Log in or Sign up to hide this ad.

not everyone in iowa grows corn.. well most of us do but only every other year. the other years its beans. i happen to tan leather. nothing to do with corn.. lol

 

I love it!

do you happen to know what they do in the west Des Moines-Dallas Center area? I'm going to be moving there soon and want to know what my job will be...I can weave a mean basket or grow decent looking wheat...also what barter items are taboo?

 

Umm, ever heard of Gresham's Law Inflexion? It works the other way around.

 

Lol, well I am growing corn on my land this year in Warren County, but you are right, last year was beans.

 

Cool, we can meet up at the Des Moines coin show. I still go down there, as I used to be VP of the DM coin club. West Des Moines is the "yuppy" side of Des Moines, I grew up and lived on the East side for years.

Chris

 

We used to grow cotton and tobacco

 

I am so glad that Washington state will refuse all of the fiat money from the U.S. Government and support all of their internals from the gold mines of Washington State. It will certainly make their budget easy to balance.

 

well by soon I mean in June as my Fiancee should be back from her internship and the job she training for will be ready then... i believe she's be an Employee of of a German company but paid by a company called highline which has its main office is in dallas center... stuff is still fuzzy but should know much more come march...

 

I seem to remember the same old ponderous debate happening a year ago on here when the Virginia legislature was talking about doing the same thing.

http://voices.washingtonpost.com/virginiapolitics/2011/01/delegate_proposes_virginia_min.html

 

I am on a different page than both of you. Dollars used to be denominated in gold, not the other way around like it is today. A 10% move in gold is tantamount to a 10% inverse move in the currency. If inflation makes the price of everything go up then at least your money went up with it. The large moves are due to monetary policy and paper market influence, not the instability of precious metals which have the same buying power they've always had.

 

Let's call it InfleXion's Law then ;P I'll be the gold to Gresham's dollar. Besides it's just too good of a slogan not to use. It's like the good money is on a roundup.

 

I think from a practical standpoint, it's not going to make much difference.

It would take the next step where the state starts offering up a true independent currency that could make it possible for people to move off the dollar for most day to day things. The central bankers will or course do everything they can to stop it, just like they used the IRS to stomp on the Liberty dollar.

Washington state is at least the 3rd state to consider this. (Iowa & SC are the others) Regardless of its effectiveness, It's a telling tale that it is even being considered as a few years ago, the notion would have been completely dismissed. It's another sign the public's confidence and faith in the US financial system with its corruption, bailouts, perceived unfairness, and political payola, has been badly shaken and people are starting to question that if it is even viable anymore. As bullion buyers, don't underestimate this.

 

Thank you for your thoughts Fatima.

Can anyone answer my other question about how a change like this would affect gold/silver prices? Ie positively or negatively?

 

I do not believe it will make any difference to the price of PM, akthough proponents will be quick to claim any rise for any reason. I really do not expect it to happen. IMO.

 

So we could send our damaged and undesireable silver coins to Washington and get full value?

 

They should always be worth (melt value) - (carrying costs). Don't need to send them to Wash. for that.

 

Utah did this last year: http://www.huffingtonpost.com/2011/05/22/utah-gold-standard-silver_n_865333.html
Ask anyone who lives there how well it's worked out. You'll get a lot of laughs.
Guy

 

Is there carrying cost on money?

 

I'm not sure that the use of gold and silver as money would impact the price in and of itself, but the idea that this could happen being prevalent in peoples' minds could increase demand from an exposure standpoint. Actual usage will depend on inflation of currency, and whether not people seek a viable alternate or not. In a hyperinflation everybody will use gold and silver because dollars will depreciate too quickly for price discovery to be effective, but if inflation is nonexistent then nobody will have any reason to use the metal alternative. If inflation is bad then that will be the reason for a price increase more so than people using gold and silver as money, but it could compound things.