South Carolina Rep. Mike Pitts (R.) wants to ban the buck. He has introduced legislation to require the use of gold and silver coins as the legal tender of the state as opposed to federal currency. For those passing through the state, you may want to wait before you exchange your dollars for bags of gold and silver coins.
Pitts introduced the bill as a way to stop the government from continuing to print money to pay for its increasing budgets: “if the federal government continues to spend money at the rate it’s spending money, and if it continues to print money at the rate it’s printing money, our economic system is going to collapse.”
The only problem is that it violates federal law establishing the federal currency as the official legal tender. Before the ratification of the Constitution created a strong central government, seven of the 13 states issued their own paper money — causing enormous economic problems as the money was often worth little. James Madison complained that “In the internal administration of the States, a violation of contracts had become familiar, in the form of depreciated paper made a legal tender . . .”
Some communities are already printing their own money, here.
Pitts in not alone. Various countries like China are alarmed by our runaway spending and printing of new money, here. It is part of the reason that China is unloading our bonds and few countries seem to want to buy U.S. bonds, here.
This type of legislation is ridiculous but the Democrats and the Obama Administration have continued the spending pattern of George Bush which could be ruinous for our economy. They have lifted the debt ceiling to a record level and continued to allow spending to spiral out of control (while gushing money in the two wars). This is a serious problem that is not addressed through graffiti-like legislation.
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