SoylentNews is people
SoylentNews
Submitted via IRC for TheMightyBuzzard
A bill recently introduced in Texas seeks to obliterate the Federal Reserve's much-maligned monopoly on currency by establishing gold and silver as legal tender — but the groundbreaking legislation, if passed, would also prohibit those precious metals from being seized by State authorities.
[...] Senator Bob Hall introduced the bill last month, which, the Tenth Amendment Center explains, "declares specifically that certain gold and silver coins are legal tender, and prohibits any tax, charge, assessment, fee, or penalty on any exchange of Federal Reserve notes (dollars) for gold or silver. The bill authorizes the payment of taxes and fees in gold & silver in certain circumstances. It would also prohibit the seizure of gold or silver by state authorities."
Would this matter in a nation where money is mostly plastic nowadays anyway?
Source: http://thefreethoughtproject.com/texas-bill-gold-silver-money-federal-reserve/
(Score: 2) by jmorris on Tuesday April 18 2017, @06:04PM (1 child)
No, you want some gold because it is one of the few easily tradeable commodities you can physically own. If things go full hyperinflation few assets that only exists in a computer survives the kaboom! that is the only known way to break out of a hyperinflationary death spiral. Stocks in very large and durable entities, those able to survive almost any disaster, would also be a good place to be, ignore the dollar valuation during the troubles knowing that after things reset the value will still be there; it will likely be expressed in a totally new currency but that won't matter. Difference is physical gold's value can be realized to help you personally survive the troubles and the stock might not be until the worst is past.
And with Yellen printing like mad and wanting to jack interest rates a full point this year, the amazing thing is we have yet to enter the spiral. Which means there are some mighty powerful deflationary forces being counter balanced. The '08 recession saw a lot of things that 'couldn't possibly be done' done, eventually we are going to find out if the masters of the universe really did know what they were doing or just managed to buy a little time. With every year that passes and no Kaboom! it looks encouraging but then you notice there also isn't any real growth, so this situation clearly isn't sustainable. Something has to give eventually.
(Score: 2) by linuxrocks123 on Tuesday April 18 2017, @09:15PM
No, you want some gold because it is one of the few easily tradeable commodities you can physically own.
Ah: you believe the end is nigh.
Difference is physical gold's value can be realized to help you personally survive the troubles and the stock might not be until the worst is past.
I'm not so sure precious metal exchanges would survive in a "the end is nigh" scenario. Canned goods might work better. But you're talking about prepping, not investment. The two don't really have much to do with each other.
And with Yellen printing like mad and wanting to jack interest rates a full point this year, the amazing thing is we have yet to enter the spiral. Which means there are some mighty powerful deflationary forces being counter balanced.
Raising interest rates is a deflationary policy action, not an inflationary one. It would not lead to an inflationary spiral; it would counter one if it already existed, which it obviously doesn't. The Federal Reserve kept rates low for a very long time because, despite that being an inflationary policy, inflation remained low due to the aftereffects of the 2008 recession. It's raising rates now because, even though inflation remains low, the potential for inflation is now a concern given the economy's full recovery.