Political, Southern, states vs. federal...this story has it all

[etothepii]

http://news.yahoo.com/s/yblog_theloo...ency-for-state

Thoughts?

[burniegoeasily]

Thats interesting. Pipe dream, but interesting.

[JoeA]

"...Lowrey points out that commodity-backed currencies can also experience volatility. For example, if a state collects income taxes in gold and then a big new gold mine is discovered, the metal's value would decline--together with the state's revenue holdings."

I find this quote amusing. This phenomenon applies to any commodity subject to speculation; precious metals, copper, agriculture futures, etc. It's not a strong argument to counter the move to a gold backed currency.

The Constituion denies states the right to coin and print money. Can a state can be forced to accept a particular currency (ie fiat) for payment of debts to it?

Our nation's early experiences with issuance of currency led to rampant inflation and devaluation of printed money, and the dissolution of the first two US national banks.