A Gold Bank?

[uscitizen]

The dollar is worth so little precisely because they print so many of them.

The value of the dollar is determined (basically) by the value of the goods backing it divided by the number of 'dollars'.


Our dollar is backed by nothing. It's worth nothing. It's accepted at gunpoint and backed by the military only.

I will accept any dollars you want to give me and not even hold a gun on you.
And since they are worth practically nothing anyway.

 

[Paulie]

I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?

I'm sure you saw what happened to Liberty Dollar for having the audacity to do just such a thing.

 

[uscitizen]

Eliminate organized crime, the government hates competition.

 

[eagleseven]

I think that is unconstitutional because the federal government has the responsibility of creating one unified currency among the states, no?

It's not explicitly in the constitution, and the founding fathers fought over the establishment of a centralized bank at all.

Legally, the Fed is the only organization which is allowed to print legal tender, backed or no. This is the result of legislation, not the constitution.

 

[eagleseven]

Hmm so we have 14 trillion in paper dollars out there and have 1 trillion or so in gold to back them with but each paper dollar would be worth more if we converted to a gold backed system?

You cannot exchange your US Dollar for any amount of gold at the US Mint, thanks to Nixon. If the US Government collapses, the dollar dies with it.

 

[Toro]

I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?

If the notes are passed as legal tender, I believe that it is illegal.

 

[Toro]

Hmm so we have 14 trillion in paper dollars out there and have 1 trillion or so in gold to back them with but each paper dollar would be worth more if we converted to a gold backed system?

You cannot exchange your US Dollar for any amount of gold at the US Mint, thanks to Nixon. If the US Government collapses, the dollar dies with it.

It wasn't thanks to Nixon. It was thanks to FDR. FDR suspended gold convertibility. Afterwards, gold was only convertible for foreign banks. Then, with France demanding gold convertibility for all the dollars it held, which would have drained pretty much all the gold held by the US government, Nixon suspended the last vestiges of the gold standard.

 

[☭proletarian☭]

I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?

If the notes are passed as legal tender, I believe that it is illegal.

So it should be fine so long as they don't claim it's 'legal tender'?

 

[Paulie]

I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?

If the notes are passed as legal tender, I believe that it is illegal.

So it should be fine so long as they don't claim it's 'legal tender'?

Nope. Because, again, you saw what happened to Liberty Dollar.

LD even at one point had the blessing of the Secret Service, the Fed, and the Treasury.

And then all the sudden, one day, they were raided and shut down.

You can clearly see by the markings of their paper notes that they were in NO WAY trying to pass money off as legal tender.

 

[goldcatt]

I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?

If the notes are passed as legal tender, I believe that it is illegal.

So it should be fine so long as they don't claim it's 'legal tender'?

Is this how we get the local currencies used in some places?

Communities print their own currency to keep cash flowing - USATODAY.com