Should Georgia set up own currency system based on gold, silver
by Don McKee
January 08, 2013 11:56 PM | 4341 views | 3 3 comments | 7 7 recommendations | email to a friend | print
Don McKee
Don McKee
Should Georgia create its own currency system?

It’s an old idea being revisited by at least one incoming legislator, state Rep.-elect Charles Gregory (R-Kennesaw) who has made news with his pre-filed bills to remove restrictions from carrying concealed weapons in the state. He says Georgia should consider setting up its own currency system, a mantra of libertarian Ron Paul whom Gregory supported for the Republican presidential nomination.

Gregory follows in the steps of the late Rep. Bobby Franklin (R-Marietta), arguably the most conservative member of the General Assembly during his long tenure. In the 2011 session, he introduced a bill proposing to set up a Georgia currency system based on gold and silver coins. Franklin died in July 2011. His bill, like many others he sponsored, never reached the floor of the House, effectively killed by the leadership.

In recent years legislators in a dozen states ranging from Minnesota and Iowa to Tennessee, South Carolina and Georgia have taken up the cause of state currencies, CNN Money has reported. It’s seen as a way to avoid “hyperinflation, depression or other economic calamity related to the breakdown of the Federal Reserve System,” in the language of a 2011 bill introduced in the North Carolina legislature.

Utah actually enacted a bill in 2011 recognizing U.S. Mint gold and silver coins as legal tender in the state and mandating a legislative study of an “alternative form of legal tender.” Not much has come of that. A source close to Gov. Gary Herbert said after he signed the bill there “would be some major constitutional issues” with the alternative currency idea.

Now U.S. Rep. Paul Broun (R-Athens) has assumed the mantle of the retired Ron Paul, longtime Texas congressman. Broun this week introduced a measure to return America to the gold standard, same as Paul did time and again. Reverting to the gold standard would base currency on the U.S. gold stocks.

Newt Gingrich in his run for the GOP presidential nomination promised to appoint a new commission on gold, taking his cue from Ronald Reagan. Gingrich said, “Part of our approach ought to be to re-establish something Ronald Reagan did ... and that is to have a commission on gold to look at the whole concept of how do we get back to hard money.” Gingrich figured it would take 15 to 20 years to undo all the “paper, debt and leverage” in the Federal Reserve system.

Gingrich “did not promise to support a gold standard, only to appoint a commission,” the New York Times observed in January 2012, suggesting there would be “little chance of a move to gold” even if Gingrich won the presidency. Reagan’s gold commission did fulfill a 1980 GOP platform promise but otherwise the president “showed no inclination to buck the collected wisdom of most economists,” said the Times.

Likewise, don’t expect the Republican leaders in the Georgia General Assembly to show an inclination to set up a state currency system.

Comments-icon Post a Comment
January 09, 2013
The collected wisdom of all the economists is a daily occurrence of recanting on the basis of the collapse of the dollar of the chaos theories of economists

economics is a non linear system and therefore subject to Chaos Theory. It is not close to an exact science. Someone won the election and that is going to have an effect sooner or later. Power has shifted. We may have a cliff for awhile. It will be corrected

The fundamental problem starts with a denial of the reality of change. The idea that our economy can be modeled by some kind of long term pattern of constant economic growth modulated by periodic business cycles just does not match any objective measurements of reality. The economics profession is of limited value in understanding the problems of our economy because almost all of the profession wants to deny the reality of qualitative change. In any case, there are no economic policies that can manage dimly understood processes of long term change. Change primarily driven by technological advance is the dominant reality of human history. The post World War II era is rapidly fading into the past. All of the different hopes of recovering that era are also lost in the past..

Cade Thacker
January 09, 2013
Great idea Rep. Gregory. We need competing currencies. Ron Paul actually did not encourage the dollar per se to go back to gold (although he supported it), but instead to create competing currencies (ie states, etc) to create gold back currencies and compete on the open market. If you like the dollar, fine, stay on it, if you want gold back dollar, then move there.

Here are some facts.

In 1975, one troy oz of silver would buy just under 7 gallons of gas.

In 2011, one troy oz of silver would buy just over 7 gallons of gas.

What is holding its value better, silver/gold or the fiat dollar? Easy answer...
Kevin Foley
January 09, 2013
This guy Gregory is just full of wonderful ideas.

Why isn't he leading a secession movement?
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