The buck stops here? Virginia eyes switching off dollar

Posted in February 4th, 2011 by Don in World and Domestic News

WorldNetDaily

WASHINGTON – Virginia state Delegate Robert G. Marshall has introduced legislation to study whether the Commonwealth should make the preparations now to switch suddenly to an alternative currency in the event of an implosion of the Federal Reserve System and the destruction of the dollar.

House Joint Resolution 557 is another piece of a growing movement among state legislators who are concerned about the dollar’s demise. Ten states have considered similar bills, recommending a return to some form of a commodity-based currency, using either silver or gold.

Read more: The buck stops here? Virginia eyes switching off dollar http://www.wnd.com/?pageId=258069#ixzz1D03n1VHv
_______________________________________________________

Constitution:
Article 1.

...
Section. 8.
...
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
...
Section. 10.
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; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
_____________________________

I hope they are only planning to make gold and silver coins.  Paper money printed by the state would be un-constitutional as is our current dollar.  I would love to go to a coin-based currency.  Private companies (banks) could hold the coins and chrage us to use debit and credit cards (assuming there was a silver or gold dollar behind every digital one ) or the banks (private ones) could print their own paper money backed by gold or silver.  We could withdraw our gold or silver upon demand from the bank.  Commerce would still go on in a modern fashion- but the currency would actually mean something.

Precious Metals

I'm sure that many of you have already purchased some precious metals, whether that be gold or silver. I have purchased silver, in one ounce units. I have a significant amount of bullion or rounds, but very little in "junk silver" (i.e. pre-1965 US coins). -I suspect that while many of the "preppers" may know the value of "junk silver" I doubt the average joe even knows the difference. However, a big round that's stamped .999 silver is unmistakable.

Notice that I did not say that I "invested" in precious metals. I don't think that- in the long run- precious metal actually increases in value. I define value as to the amount of goods which that metal can buy. Investments are expected to increase in value.

For instance, In 1964 a single shiny new silver dime would buy a 12-ounce bottle of Coke from a vending machine. Three dimes would buy a gallon of gasoline, or a pound of bacon. In 2009 the same (not quite as shiny) 1964 silver dime will still buy a 12-ounce bottle of Coke from a vending machine, and three 1964 dimes will still buy a gallon of gasoline (with a little change to spare!) The REAL price of goods has not gone up (and the real value of the metal has not either)- the value of the dollar has gone down (since taking silver out of the coinage).

So, why buy precious metals? I did for three basic reasons.

1) To preserve my wealth. Should hyperinflation (or any inflation for that matter) hit, I know that after the schumar has settled, I can exchange my silver coins for whatever currency is in use. Greenbacks, at that point would be worth less than toilet paper.

2) To use in case of emergency as a last ditch effort. If it comes down to a real disaster, the precious metal could be used to "bribe" my way to where I need to get my family. (Although, they could just steal it from me and kill me- at which point I would probably be dead anyways.)

3) To barter with after a fiat currency collapse. People know that silver and gold have value- no you can't eat it or drink it, but for centuries people have been attracted to it and will trade consumables and durables for precious metals.

Silver has been pretty low this summer, and I suspect gold will drop drastically once the price of oil increases again (I keep hearing rumors that they are capping oil wells off shore?). The window of opportunity to purchase these metals cheaply will be brief. I recommend that you get about $1k of precious metals for your family. Some people recommend more, but that's just me.

I purchased almost all my coinage from E-bay. You can find some deals out there, but don't get carried away with the thrill of the auction. Set your price up front and leave it alone. You win some, you lose none.

You can also get some deals from local coin dealers. Expect to pay a small premium and tax though. I prefer the e-bay experience myself. I was able to get several ounces this summer for $14/ounce shipped to my door.

I also prefer smaller amounts of metal b/c it may not be easy to barter with a $1000 bill (ounce of gold). That's the main reason I went with silver.

**Also, very important to note** don't buy precious metals until AFTER you have all your other ducks in a row. You should have all your beans, bullets and band aids squared away first. Then, look into metals. See my list-of-lists spread sheet on the upper left to get you started and give you an idea of what you should have.

Quote of the Day:

All men having power ought to be distrusted to a certain degree.

-James Madison, speech at the Constitutional Convention, July 11, 1787

In the News:

'Extremism' report based on web chat

Raging California Wildfire Forces Hundreds to Flee

Poll: Obama Approval Rating Drops to 47 Percent

New Jobless Claims Rise Unexpectedly to 558,000