|Utah Goes Rogue To Save Itself, Gold & Silver Now Legal Tender |
etfdailynews.com To Save Itself, Gold & Silver Now Legal Tender
April 19, 2012
After months of public outcry over Washington’s out-of-control fiscal and monetary policies, Utah Governor Gary Herbert signed into law Utah House Bill 157 Currency Amendment allowing gold and silver bullion as legal tender within the state to settle retail transactions and debts.
Though several other states have proposed similar legislation, Utah becomes the first state of the Union to actually pass a law providing ammunition to fight back the ill effects of the Federal Reserve’s malicious debauching of the U.S. dollar.
The symptoms of rapidly rising costs of life’s necessities can be directly attributed to 10 years of money supply growth, not seen since the disastrous 1970s. As of April ’02, M1 money supply has skyrocketed 77 percent to $2.22 trillion for April of this year.
And it’s going to get increasingly worse. After compounding at a 5.9 percent rate throughout that 10-year period, the Fed has forecast another 17.4 percent increase in M1 through April 2013, a near trebling.
The signs of run-of-the-mill inflation metastasizing into hyperinflation now appears, giving rise to the notion that the reason for the politically unsavory executive order of the NDAA signed by Obama on New Years Day—which effectively suspends the U.S. Constitution—is to provide the legal authority to a sitting president to initiate martial law, including a civil uprising in the event of a collapse of the U.S. dollar.
Other states may soon follow Utah’s watershed legislation—and quickly. In its annual World Economic Outlook publication, the International Monetary Fund (IMF) noted that a Eurozone breakup could rapidly disintegrate into a “full-blown panic in financial markets and depositor flight.”
Why? The IMF knows that Greece’s economic collapse merely represents the tip of the EU iceberg. Much larger European states, such as Spain, Italy, France, and even some have speculated, Germany, cannot survive the crushing debt loads coming due this year. It’s truly the end of the road for a global financial system that tried an experiment of unbacked fiat currencies, globally.
“The potential consequences of a disorderly default and exit by a euro area member are unpredictable…,” according to the IMF report. “If such an event occurs, it is possible that other euro area economies perceived to have similar risk characteristics would come under severe pressure as well, with full-blown panic in financialmarkets and depositor flight from several banking systems.
“Under these circumstances, a break-up of the euro area could not be ruled out.
And as Europe collapses, the U.S. will most assuredly go with it.”
Contrary to misinformation propagated by officials at the Fed and Treasury, Europe is the U.S.’s Greece—a warmup, a warning sign of systemic failure, according to many private economists and well-known financiers.
As early as the greater economic collapse of the Great Depression of the 1930s, the mother of all Depressions of the 1870s, severe recessions and depressions, currency crises and bank panics on either side of the Atlantic have rippled globally. The Bank Panic of 1907, which began with the fall of the Knickerbocker Trust Company in New York, quickly spread to Paris and Rome, collapsing France and Italy, leading to recession in Europe. This time, with electronic banking and communications as they are, is certainly no different.
Back then, financial ruin was creeping into the U.S. economy as the result of the U.S. Civil War of 1861-65 and the failed Greenback that funded it. That war’s cost, reminiscent of the money borrowed and spent for post-WWII wars fought overseas, culminated into hard times more severe and lengthy than the better-known Great Depression of the 1930s.
“This could cause major political shocks that could aggravate economic stress to levels well above those after the Lehman collapse,” the report concluded. And that’s when financial Armageddon begins in earnest, according to many the world’s well-respected economists.
It is now that, even the more disengaged Americans among the population of 310 million can wrap their minds around the bizarre sequence of political events of the past decade, beginning with the Patriot Act, then NDAA, to most recently, Executive Order—National Defense Resources Preparedness (NDRP)—an order which gives guidance to all U.S. Departments to activate a National Defense Executive Reserve (NDER) in case of national emergency or peacetime (i.e., preparations). (1)
In other words, at the very least a currency collapse is coming.
Fox News stated on March 19:
The purpose of the order [NDRP], according to its contents, is to make sure the U.S. is prepared to mobilize technological and industrial resources ‘capable of meeting national defense requirements’ and ensure ‘technological superiority of its national defense equipment in peacetime and in times of national emergency.’
Within the context of these rapid-fire Executive Orders, pending legislation to deny or suspend passports for delinquent taxes; record gun sales; the rise of the OWS and ‘Prepper’ movement; and the record flight of Americans leaving the U.S. for good, Utah sees the writing on the wall, as do, apparently, many more Americans.
It’s only a matter of time when many of the other states sign into effect similar laws to the one just passed by Utah.
(1) Could this be the reason for record-low gold stock valuations (compared with the price of gold bullion)—the fear of a Venezuela-like confiscation?
Related: SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), ProShares Ultra Silver (NYSEARCA:AGQ), iShares Gold Trust (NYSEARCA:IAU), PowerShares DB U.S. Dollar Index Bullish Fund (NYSEARCA:UUP).