Sound Money in the Show Me State.

I doubt that this will do much other than provide a legal president if the federal government tries to confiscate gold again.  Though if enough states do this and people actually use gold as money it could be a consideration when weighing monetary policy at the Federal Reserve.  


Really though if we get to this point SNAP cards are going to be worth as much as gold based debit cards.






Missouri's Sound Money Bill Is Really a Protest
By David Nicklaus
April 24, 2012

When the dreaded hyperinflation arrives, the Missouri House wants Missourians to be ready.

Last week, the legislative body passed the Missouri Sound Money Act of 2012, which declares U.S. gold and silver coins to be legal tender in the state.

That sounds a bit odd, especially since the federal government already recognizes its bullion coins as legal tender.  It's just that nobody's going to pull out a $50 gold piece to pay for snacks at QuikTrip, because the ounce of gold in the coin is really worth $1,600.

Backers of the Sound Money Act envision a system in which you could deposit gold and silver coins in a vault and get a debit card tied to their metal value. If the Federal Reserve debases the value of the dollar – a favorite prediction among the gold-bug set – gold and silver would rise in value, and prescient Missourians could brag about their enhanced purchasing power.

Utah passed a legal-tender law last year, and South Carolina's legislature is considering one this year.

Rich Danker, economics director of conservative lobbying group American Principles in Action, said a couple of institutions in Utah are working to create the gold debit-card system. Until that's in place, sound-money advocates have to spend out of bank accounts denominated in dollars, just like the rest of us.

Missouri's legal-tender bill would benefit precious metals investors by eliminating state capital gains taxes on U.S.-minted coins. A fiscal note says the state treasury could lose more than $370,000 a year.

That's a small price to pay, backers argue, for monetary freedom....


Read the rest here: Missouri's Sound Money Bill Is Really a Protest - St. Louis Today