Jan 15, 2009

SB 453 -- Use of Gold by State and Local Governments

SYNOPSIS: Use of gold by the state and local government. Requires the treasurer of state to designate one or more electronic gold currency payment providers to be a payment provider for the state and political subdivisions. Requires the treasurer of state and fiscal officers of political subdivisions to: (1) maintain one or more electronic gold currency accounts with a designated electronic gold currency payment provider; and (2) conduct all monetary transactions of the state or political subdivisions through electronic gold currency accounts. Provides that an electronic gold currency payment provider must use an electronic gold currency unit that constitutes a monetary unit of account and represents a claim of title to and ownership of a specifically defined, fixed weight of gold held by an independent specie vault. Specifies that a specie exchange with which an electronic gold currency payment provider associates must conduct the business of exchanging gold and silver coin, legal tender of the United States, and the electronic gold currency of the electronic gold currency payment provider. Provides that after December 31, 2009, the state and political subdivisions may not compel or require any person to recognize, receive, pay out, deliver, promise to pay, or otherwise use or employ anything but gold and silver coin (in that form or in the form of a designated electronic gold currency) as media of exchange with respect to certain payments. Provides that after December 31, 2009, a person receiving certain payments from the state or a political subdivision has the option of accepting payment in either legal tender of the United States or in electronic gold currency.

STRONGLY SUPPORT: We liked the idea when LPIN gubernatorial candidate proposed this at an October press conference. We liked it more when he talked about it during the debates. We liked the idea at a national level when Congressman Ron Paul championed this message on the campaign trail. Imagine a currency that has real value and the effect this move would have on stabilizing a very unstable economy.

STATUS: Authored by Sen. Walker, referred to Committee on Tax and Fiscal Policy.


Sam said...

Senator Walker also advocated public flogging of criminals.

Anonymous said...

This is not an issue that is left to individual states. It's going to cost more money for the state of Indiana. It will make money in Indiana useless, and the state will have to send any money backed by gold to the federal reserve to be transfered to a federal reserve note per federal laws. This is a wasted effort that will cost tax payers tens of millions of dollars more, and accomplish nothing, as nobody but Libertarians will ever talk about it. What a stupid idea. Real change in this area has to occur at the federal level, or not at all if it's going to be worth anything. Otherwise, it's just a bone-headed move. Too bad I have to write this comment anonymously to keep from any backlash within the Libertarian community, 'cause I really wish we wouldn't just jump on board with stupid ideas like this one because it goes along with what we believe. We need to make sure that not only are we pressing for the right legislation, but that we are doing so at the correct level of government.

Sean Shepard said...

re: Sam ... which is relevant to this issue how?

re: Anonymous. You are correct, it is not left up to the states the Constitution clearly states that only gold and silver can be required to be used for payments. This legislation brings us closer to constitutional government.

More importantly, assets sitting in gold accounts are likely to be protected from any out of control inflation resulting from the FED problem you rightly point to.

Anonymous said...

The feds will make us pay dearly for this...Do you think they enjoy any implications that their fiat money is no good? This will do nothing but harm for Indiana until the feds change their system.

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