Good as Gold? The Rise of Alternative Currencies

by Admin on September 29, 2015

A number of alternative new currencies are sprouting up worldwide.

This month, Utah became the first US state to legalize gold and silver coins as a legitimate currency. Similarly ISIS have announced they will exclude the US dollar from international financial transactions, replacing it with gold, silver and copper coins.

Image Credit: liz west (Flickr)
Chocolate coins are generally less valuable. Image Credit: liz west (Flickr)

Although both are doing effectively the same thing, they aim for different ends. Utah legislators want to restore the US dollar to its former glory. ISIS are aiming to destroy the US economy.

Utah: The idea came from Republican state Rep. Brad Galvez, who sponsored the bill to serve as a protest against Federal Reserve monetary policy. He argues that Americans are losing faith in the dollar. He says, if you’re mad about government debt, ditch the cash and spend your gold and silver.

Ralph Danker, project director for economics at American Principles in Action, says:

“Making gold and silver coins legal tender sends a strong signal to Congress and the Federal Reserve that their monetary policy is failing.”

Market strategist Matt Zerman says: “You’ve seen gold replacing these currencies as safety instruments […] If I don’t feel good about the dollar or other currencies, I’m putting my money in precious metals.”

ISIS: The Islamic State claims that the US deceived the world. In 1913 the US established the Federal Reserve Bank, pledging to pay gold on demand on the dollar.

However, they say that after World War 1 the US changed from the Gold Standard to flat greenback currency at the local level.

They argue that by replacing the dollar with gold, this will push countries such as Russia and China to sell their US Treasury Bills, resulting in a collapse of the US financial system.

Criminal defense lawyers in Thailand Chaninat and Leeds are experts at handling criminal cases in Thailand, both between Thai nationals and foreigners.

The US was among many other countries that largely abandoned gold-backed money during World War , because they needed to print more cash to pay for the war.

During the Great Depression a few years later, President Franklin D. Roosevelt prohibited gold and silver as legal currency to prevent people hoarding it. In 1971 President Nixon abandoned the gold standard completely.

Thailand’s Currency Act states that circulating alternative currencies is illegal:

Section 9.
No person shall make, issue, use or put into circulation any material or token for money except by authority of the Minister.

Read more here and here.

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