States beginning to assert their money power

Bills have recently been introduced in several states to try to address the money problem. In an article that appeared in Financialsense.com, Robert Kientz describes actions that are occurring in several states. It is unclear how much support the various bills might have, or what their chances of passage might be, but Kientz implies that the state of Virginia has already taken official action to at least study the matter of using alternative payment media other than Federal Reserve currency. He says:

Virginia announced yesterday that the state would commission a study of alternative currencies including gold and silver in House Joint Resolution No. 557. A selected quote from Resolution 557:

WHEREAS, the Supreme Court of the United States in Lane County v. Oregon, 74 U.S. (7 Wallace) 71, 76-78 (1869), and Hagar v. Reclamation District No. 108, 111 U.S. 701, 706 (1884), has ruled that the States may adopt whatever currency they desire for the purposes of performing their sovereign governmental functions, even to the extent of adopting gold and silver coin for those purposes while refusing to employ a currency not redeemable in gold or silver coin that Congress has designated “legal tender”;

Such actions are a hopeful sign that the money power, and the political power that goes along with it, are devolving away from Wall Street and Washington and back to our states and communities. The states have a powerful weapon in the form of the United States Constitution, which declares that, no state shall make any thing but gold and silver Coin a Tender in Payment of Debts.

Of the two metals, I much prefer silver as the value standard, for several reasons. My main objection to gold is that it is closely held by a few banks and governments that are able to manipulate its market price, and thus manipulate the economy if gold were to play a major monetary role. Silver is much more abundant and widely held, and while present market mechanisms enable a few entities to manipulate its market price, I think parallel  mechanisms can be put into place that would assure a freer market giving silver a more stable value. Ideally, however, trading entities will ultimately adopt an objective value measure using a composite commodity standard composed of a “market basket” of basic commodities.

Keynes was not wrong in calling gold “a barbarous relic,” but that’s not the whole story. We must also recognize that central banks, legal tender laws, and credit monopolies are relics even more barbarous than gold. The separation of money and state must ultimately be gained in order to have a truly free and harmonious society.

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12 responses to “States beginning to assert their money power

  1. Ralph,

    “…..there exists no decision procedure known to the human mind which can determine truth in one complete, consistent package. The harder you try, the more splintering you develop.

    “Therefore, the only correct economy can be one based on individual values with individuals exchanging in terms of community needs and desires”.

    What a marvellous summary, thank you!!

    Be very careful; much more of this and I’ll be seeking to post your pic
    alongside that of Tom!!

    AD

  2. [quote](With regard to the Christian connotations of the Lucifer name however – though it has to be said, completely off topic – I do find myself a little confused; does not the bible indicate Jesus himself to be the morning star?[/quote]

    Archie, of course! That’s why we have an estimated 38,000 versions of that “morning star”! Which is which? If you could define it, you could translate it into language, and if language, then algorithms, and then computers, so we wouldn’t have to consult either church or state. We could simply consult our personal computer!

    As Godel’s theorem tells us, there is no way to package truth into one complete, consistent package. There exists no predictable decision procedure by which we can do so. Therefore, the only correct economy can be one based on individual values with individuals exchanging in terms of community needs and desires. Viva alternative currency!

  3. (With regard to the Christian connotations of the Lucifer name however –

    “does not the bible indicate Jesus himself to be the morning star? Revelation 22:16: “I Jesus have sent mine angel to testify unto you these things in the churches. I am the root and the offspring of David, and the *bright and morning star*.” I merely ask!!)

    AD”

    Well of course! The problem is in figuring out which is the right one, which is impossible in any collective sense. If it were, we wouldn’t have an estimated 38,000 versions of the “bright and morning star”.

    If we could define truth in such a fashion, we could translate into language, and if language, then algorithms, then computer programming, which means we wouldn’t need church or state to figure it out. We could simply consult our personal computer every morning!

    We can thank Godel’s incompleteness theorem for this understanding, as well as Turing’s halting problem. IOW, there exists no decision procedure known to the human mind which can determine truth in one complete, consistent package. The harder you try, the more splintering you develop.

    This means, by weight of mathematical proof, that individuals must develop their own values, and find ways of exchanging those values at the community level. Viva alternative currencies!

  4. Ralph,

    Indeed Sir, Lucifer is nothing more than an ancient Latin name given to the dawn appearance of the morning star Venus – the bringer of light.

    As for your allusion though, I imagine that the average politician and bankster would regard and describe the holder of views such as the separation of money and state in just such satanic terms, so maybe it’s appropriate in any case!

    (With regard to the Christian connotations of the Lucifer name however – though it has to be said, completely off topic – I do find myself a little confused; does not the bible indicate Jesus himself to be the morning star? Revelation 22:16: “I Jesus have sent mine angel to testify unto you these things in the churches. I am the root and the offspring of David, and the *bright and morning star*.” I merely ask!!)

    AD

  5. Kind of unrelated, but I just read in a New York Times blog that Starbucks allows you to “wave a cellphone” to pay.

    This makes me wonder if it will then be possible, someday, to have a choice of currencies to pay with. So depending on the particular individual, particular business, particular credit source, particular geography, and particular product purchased, there might be a choice of currency.

    The blog is: http://bits.blogs.nytimes.com/2011/01/18/now-at-starbucks-buy-a-latte-by-waving-your-phone/?partner=rss&emc=rss

    The comments mention that payment by cell phone has been available in Japan for years.

  6. It’s words like this that make me want to put up of a picture of you
    “on our living room wall and further, to demand that the family and all others who enter our humble abode pay the appropriate homage to a “bringer of light”!!

    Say the word, and it shall be done!!

    AD”

    Doesn’t Lucifer mean “light bringer”? 😉

  7. Pingback: States Beginning to Assert Their Money Power - Tom Greco at Chelsea Green

  8. I have noticed over the last few months a trend among the citizens of this once great country an increase in their sense of obligation to address the real monetary problem that we and the citizens of the world are really in.

    It shows that there may be some real hope in our future when we start to see articles such as this “States beginning to assert their money power” along with the State of Virginia commissioning a study on the feasibility alternate currencies to be prepared for the collapse of the Fed and our “Legal Tender” that has no real worth.

    I pray that more people can join the movement to adopt some other system of trade. Enough of the “Hide and Seek” that has been in place for so, so long. It is high time that we all know what the worth and backing is behind the money we trade our services and lives for.

    Thanks for all your hard work Thomas!

  9. ive seen the term naked short selling but i dont know if it applies to anything real or if its a false term..some type of lie, iow.

    when more gold and silver was used as money wasnt it still mostly in the hands of a few??

    so if you have a non monopolized payment medium that is interest free (is that a good thing in some way?) is i tlikely that come tax time you have to find someone to swap your silver into the govts currency (perhaps get a loan) to pay taxes…how does what you call for in any way do anything better with a taxing govt in place??

  10. what does it matter that gold is held by a few banks and govts??

    if they try to manipulate the price wouldnt they be selling it…and then they wouldnt have the gold anymore and it would back in the hands of the communities??

    cant you take your silver quarters to pay for stuff now??

    when more gold and silver was used as money wasnt it still mostly in the hands of a few??

    what does alternative currency acheive come tax time???

    • Have you ever heard of “naked short selling?” Pay attention to GATA, http://www.gata.org/.

      Regarding taxes, that’s an open question. Alternative currency is not intended to avoid taxes, but to provide a non-monopolized payment medium that is hopefully interest-free and locally controlled by the users of the currency.

  11. “The separation of money and state must ultimately be gained in order to have a truly free and harmonious society”.

    It’s words like this that make me want to put up of a picture of you
    on our living room wall and further, to demand that the family and all others who enter our humble abode pay the appropriate homage to a “bringer of light”!!

    Say the word, and it shall be done!!

    AD

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