Montana Rejects Plan to Use Gold Instead of U.S. Dollar

Posted by - Thursday, March 31st, 2011

Montana's House of Representatives shot down a proposal that would have allowed the state to electronically trade gold instead of exchanging dollars. The proposal was hailed as "the first step toward an honest money system" or ridiculed "as another conservative move toward state secession."

From Bloomberg:

Republican Rep. Bob Wagner - who introduced the measure - said his proposal would require the Montana state government to trade with some taxpayers and contractors in units of gold, starting with those who pay taxes on tobacco products. Supporters say the new currency exchange would be "separate and parallel" to the traditional exchange of federal notes.

Supporters argue that the measure has nothing to do with secession. They say the federal currency is doomed without sound backing and states can help push the system back to a gold standard by unilaterally trading in gold.

Wagner fought off accusations that he would like to see Montana actually secede from the United States.

"Does that (proposal) mean secession? Not necessarily. I do not support or endorse secession," Wagner said.


More like this...

The Return of Gold as Currency
Financial institutions are once again accepting gold as collateral for their clients. Gold, or fiat paper? Which would you prefer?

A Comeback for the Gold Standard?
JP Morgan recently started accepting gold as collateral for clients. Today legislation has been introduced in Utah to allow gold and silver coins to function as currency on a voluntary basis, which is currently illegal.

When Gold Stops Going Up
Chris DeHaemer lists three events that will trigger the end of gold's run.

Silver Pandas