The Federal Reserve maintains a long history of creating bubbles, inflating the money supply and being one of the primary culprits of wreaking fiscal havoc in Washington. This is why many states are becoming more distrustful of the Fed and its Chairman Ben Bernanke and are turning to sounder forms of currency.
In recent months, states across the country have adopted or debated legislation that would install an alternative currency to the United States dollar. In 2011, Utah passed legislation that would implement its own proto-Gold Standard, while Arizona is mulling over a bill that would make gold and silver coins legal tender in The Copper State.
Minnesota, North Carolina, Idaho, South Carolina, Colorado and other states have all consisted of legislators wary of Fed policies and have been mulling bullion as legal tender. Texas recently announced that it is considering repatriating $1 billion of its gold held at the New York Federal Reserve Bank.
“The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” said Professor Loren Gatch, who studies alternative currencies at the University of Central Oklahoma, in an interview with Bloomberg News. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.”
Since the economic collapse, Bernanke has held interest rates to near zero, initiated quantitative easing policies and bailed out domestic and foreign financial institutions and central banks. There is no end in sight and it appears that the Fed will enact these measures indefinitely. This is another reason why several states are cautious about the dollar.
As indicated by previous data reported by Global Gold News, it’s not only states that are opting for gold, but so are investors and those concerned over the protection of their wealth. There has been strong demand for both gold and silver bars and coins, even with the slight drop in prices so far this month.
At the time of this writing, gold is trading at $1,575 and silver stands at $27.18. Proponents of fiat currency have alluded to gold’s decline this year, but have neglected its inherent and long-term values.
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