approve gold and silver as legal tender Published time:
April 10, 2013 19:41
And now for some heavy metal news: the Arizona
state legislature has officially approved a measure to make
gold and silver legal tender.
As RT reported earlier, an effort in the State House and
Senate to have precious metals once again considered legitimate
currency has garnered an immense amount of support in recent
months, particularly in the wake of ongoing round of quantitative
easing conducted by the US Federal Reserve, the country’s
central bank. On Monday, the Arizona House of Representatives
signed-off on a Senate bill that now only requires the governor’s
signature to become official [PDF].
Once Gov. Jan Brewer authorizes the bill, retailers in
Arizona that are willing to accept gold and silver in lieu
of paper money are allowed to let customers purchase goods
with precious bullion.
"This gives them the ability to use it as tender
and have the same recognition as the paper dollar coming
out of the Federal Reserve," Republican State
Sen. Chester Crandell tells the Associated Press.
Sen. Crandell is a sponsor of the bill, SB 1439, and helped
craft the act to mimic a similar law that was passed in
the state of Utah in 2011. Speaking to the AP from Arizona,
Scottsdale Bullion & Coin broker Mike Rowlands suggests
other states should follow suit before the buying value
of the dollar diminishes even further.
"We know in the situation where we're at they
continue to pump money in and pump money in, which eventually
that game is going to end," Rowlands tells the
Days before the Arizona House approved Sen. Crandell’s
bill with a 36-22 vote, University of Central Oklahoma Professor
Loren Gatch told Bloomberg News that more states are likely
to adopt similar bills if the Federal Reserve continues
its current policies under Chairman Ben Bernanke.
“The legislation is about signaling discontent
with monetary policy and about what Ben Bernanke is doing,”
Gatch said. “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.”
Lawmakers in Arizona might not have words as harsh as Gatch,
but nonetheless seem to agree: since the United States abandoned
the gold standard in 1971, inflation has been rampant as
prices soar and the dollar’s value declines.
For some, though, going back to how things were before
the ‘70s seems to just make sense. “This
is the type of currency we have had over the history of
mankind,” adds Republican State Rep. Steve Smith.
If Gov. Brewer signs off on the bill, Arizona residents
will be allowed to use gold and silver as legal tender starting
in 2014 — only, of course, in places willing to accept
them. After the Arizona Senate first passed the bill in
February, the House tacked on an amendment that exempts
the state’s Department of Revenue from being covered
under the measures — essentially negating a rule that
would have mandated businesses accept precious metals.
“They wanted to make sure they wouldn’t
be required to take gold and silver,” Republican
State Rep. David Livingston says of the department.
“They just didn’t want to have to deal with
it right now.”