Article

2010-02-19 Economy

South Carolina Lawmaker Seeks to Ban Federal Currency

South Carolina Rep. Mike Pitts has introduced legislation that would mandate that gold and silver coins replace federal currency as legal tender in his state. As the Palmetto Scoop first reported, Pitts, a Republican, introduced legislation this month banning "the unconstitutional substitution of Federal Reserve Notes for silver and gold coin" in South Carolina.

In an interview, Pitts told Hotsheet that he believes that "if the federal government continues to spend money at the rate it's spending money, and if it continues to print money at the rate it's printing money, our economic system is going to collapse."

"The Germans felt their system wouldn't collapse, but it took a wheelbarrow of money to buy a loaf of bread in the 1930s," he said. "The Soviet Union didn't think their system would collapse, but it did. Ours is capable of collapsing also."

The lawmaker believes that a shift to an economy based on gold and silver coins would give the state a "base of currency" should that collapse come. As one expert told the Scoop, however, his bill would likely be ruled unconstitutional because it "violates a perfectly legal and Constitutional federal law, enacted pursuant to the Commerce Clause of the U.S. Constitution, that federal reserve notes are legal tender for all debts public and private."

In addition, since gold and silver regularly fluctuate in value, they could not easily function as stable currency.

But Pitts maintains that his state is better off with something he can hold in his hand and barter with as opposed to federal currency, which he described to the Scoop as "paper with ink on it." He says he resents what he considers the federal government's intrusions on states' rights.

Posted by Fred 2010-02-19 00:00|| || Front Page|| [11125 views ] Top

#1 Many more like this and private ownership of gold will once again go the way of the Edsel.

Posted by Besoeker 2010-02-19 08:04|| 2010-02-19 08:04|| Front Page Top

#2 I would certainly take a bite out of interstate commerce, the tourist industry, .....

Posted by Procopius2k 2010-02-19 08:07|| 2010-02-19 08:07|| Front Page Top

#3 So everyone shifts over to plastic. How has Mike Pitts solved his states' problems then? And if the world falls apart who really thinks Gold will be valuable still? Yeah its rare but so will gasoline be. He should ensure gasoline is the next currency, just in case.

And North Carolina should ensure bullets are their currency so they can take all that gasoline.

This is just stupid on so many levels. I hope he had a point and wans't actually serious.

Posted by rjschwarz 2010-02-19 12:41|| 2010-02-19 12:41|| Front Page Top

#4 Abe was right, South Carolina is too small to be a country and too large to be an insane assylum

Posted by Cheaderhead 2010-02-19 13:47|| 2010-02-19 13:47|| Front Page Top

#5 South Carolina is too small to be a country and too large to be an insane assylum

I don't know about that--the Federal government is larger and they keep repeating the same mistakes...is that not the definition of craziness?

Posted by JohnQC 2010-02-19 15:34|| 2010-02-19 15:34|| Front Page Top

#6 This could be very good! The Federal Reserve is its own government. It has never been audited and since they changed from backing money with gold and silver, NO ONE knows what the paper money is worth. No one knows where the money has gone and is going.. Its the greatest ponzi scheme ever conceived. This is one way to either end it, or find out exactly what our money is worth.

Posted by Crusoper the Elder3416 2010-02-19 16:31|| 2010-02-19 16:31|| Front Page Top

13:02 Skidmark
13:01 Skidmark
12:59 Skidmark
12:52 mossomo
12:51 Skidmark
12:50 mossomo
12:49 Skidmark
12:41 mossomo
12:39 mossomo
12:35 Skidmark
12:34 Skidmark
12:05 Skidmark
11:52 Skidmark
11:43 Difar Dave
11:41 Super Hose
11:39 Super Hose
11:33 DooDahMan
11:31 Crusader
11:30 Abu Uluque
11:28 swksvolFF
10:54 Procopius2k
10:21 swksvolFF
10:16 Frank G
10:15 Jefe101