The US State of Utah has just passed a bill for the introduction of gold and silver currency to be issued as legal tender.13 other states are considering doing likewise.This is because the US Federal Reserve is creating too much money,thus devaluing their currency.

Most of this money has not gone into the real economy.It has been used to prop up the derivative market and bail out foreign banks/countries.Many states in the US also look like defaulting on their bonds.This could signal the collapse of the US $.What is still holding up the $,is that oil is still traded in US $.

When the US $ begins its' real slide,countries all around the planet will bail out looking for stable currencies and assets.This is why states like Utah and now preparing for the worst.

There will be practical problems in using hard currency when doing transactions.It will slow economic activity unless a new currency is just backed by precious metals and new notes are issued by each state to equal them.So this will allow electronic transactions also making the economy interact just as fast.However for this to happen,Fed currency will have to undergo a conversion to Utah currency when it enters the state.It also allows those who own the precious metals to determine the value of the old Fed notes.So they may be subjugated by a different cabal of elites who owned all the gold, as happened in the 1890's Depression.

I think they will have to add copper into the equation and only have partial metal values in their new currency.Once this trend takes off, precious metals will go through the roof,but it will be better than images of the Weimar Republic,when a wheelbarrow of money would not buy a loaf of bread.

How do you think the collapse of the US $ will affect us here?

you must remember your talking to those who dont know
and those who dont want to know

they dont realise their pension funds
are all tied up in derivitives and 'bonds'

they dont realise that the imminent default and collaps
in the bond markets will see them go bust as well

they dont know that inflation is theft of worth/value

mate not even the usual crowd is commenting
its sad really

they dont know that bankbills[cash]
is only cash if it is underwriting true value..in coin

[coin is the ONLY lawfull ;constituted legal tender]
but hey why should we care
[we got our values in silver/coin]
let the world do as it will...only the real stuff has value

many hold gold bonds..[in fact there is 3 times more issued promises paper..for gold ..ten times more [paper]..promises for silver

they dont know the paper promises arnt worth paper its printed on

issue your own bond
use it to get gold
silver copper
nickle

*in hand

no one can eat promises

OUG fiat currency does work if there is proper regulation.The US Fed is out of control.It should never have been in control of the US currency.

People in the share market tell me that super funds are not involved in the derivative market.It is that complex ,how would they know? They could be buying a product like the phoney mortage products in the US that are exposed to the derivative market.Do our super funds here buy US Bonds?

You're in smoke-and-mirror territory here, Arjay.

According to what I have read, the Bill allows...

"...state minted gold and silver coins to be legally accepted as currency within their state's borders. The value will be based on the market price of the metals, not the face value stamped on the coins."

Please explain how this differs from the existing ability to buy and sell gold?

Ah, now I see it...

"...the legislation that would also exempt the sale of gold from the state capital gains tax"

That's the scam. Create an advantage for one section of the community - those who can afford gold - over those who cannot.

But seriously, this is not the starting point of a reintroduction of the gold standard, Arjay. As one commentator pointed out...

"Jeffrey Bell, the policy director for the Washington, D.C.-based American Principles Project, told legislators the bill would be seen as a "symbolic act."

An utter load of symbolics. Grandstanding, that's all. Tapping into the visceral dissatisfaction of a people who have been stopped from overspending on worthless properties, and don't like it much.

The whole point of the gold standard was that it was a fixed price. The whole point of coming off the gold standard was that as a metal, gold had no fixed price. As history has most forcefully shown us: just compare the last price of "standard" gold, and the price today.

You even admit as much yourself.

>>Once this trend takes off, precious metals will go through the roof<<

To whose advantage, Arjay?

Think it through.

You have an ounce of gold today, worth $1,375. It buys you 700 loaves of bread.

Tomorrow, it doubles to $2,750. How many loaves of bread will you be able to purchase with that ounce of gold?

Here's a hint: it won't be twice as many.

Pericles et al;
Another factor has entered the fray.
It appears that banks who hold gold are leasing gold.
That is you can invest in gold without having to actually possess the
physical gold.
It is something like trading in a derivative.
The catch is the banks have been leasing more gold than they hold.
I am sure you can see the risk there.

In the US many towns are dispensing with their police forces as they
just cannot afford to pay them. Other counties are letting their roads
go back to gravel as bitumen is too expensive.

Welcome to the post peak oil world !

It could be a scam Pericles just like the elites in the 1890's depression replaced gold with silver.That's why I'm suggesting using copper and a mixture of other metals because the worker won't have access to that money.They would be better off in my view issuing their own fiat Govt money.If it is controlled properly then the Govt would not have to borrow from private banksters.

Using a combination of coins and fiat money may be a good idea.

They could build infrastructure debt free like we partially did when we owned the Commonwealth and 4 state banks.

You seem a bit anxious Pericles.Got your shares and super in a safe place?