For over a century, and under the Federal Reserve governance, U.S dollar currency had a decrease of almost 95% in its purchasing power. Gold and silver prices on the other hand, show dramatic increases over the years.
In 1913, per ounce of gold is worth less than $20. Today per ounce of gold is worth more than $1600. And as the effects of quantitative easing takes toll in the global economy especially on the U.S dollar, authorities expect that precious metal’s price will continue to increase in the coming years.
Also it is because of the advantages of owning a real asset, and the felt effects of inflation that some states in America pushes bills that allows their state to use gold as a lawful monetary exchange along with the U.S dollar.
Here is an article by Alex Newman that discuss in detail the Missouri Sound Money Act, and of how it could be of great help to the people.
Missouri Sound Money Act
Missouri would join the state of Utah — which adopted a similar sound-money law last year — in its efforts to expand the monetary choices available to citizens.
Known as the “Missouri Sound Money Act of 2012,” House Bill 1637 would define precious metals issued by the U.S. government as lawful money inside of the state. U.S. gold and silver coins would then essentially be valued in commerce at the true market-price of the metal instead of the largely irrelevant face value assigned by the federal government.
The legislation would also eliminate an array of state taxes on gold and silver — capital gains and sales taxes, for example — in a bid to allow honest money to circulate more freely alongside the Federal Reserve’s inflationary debt-based Missouri Sound Money Act of 2012. Federal taxes would not be affected, however, leaving at least one significant impediment to establishing true competition among currencies.
Under the proposed law, people would still be able to refuse payment in precious metals, and nobody could be compelled to pay in gold or silver. But supporters of the bill hope to establish sound-money depositories that would allow citizens to deposit precious metals and use debit cards to pay bills out of their accounts.
Rep. Paul Curtman, one of the sponsors of the bill, explained that the Fed and the federal government had created an inflationary situation by creating enormous amounts of new currency to bail out big banks. And the effects on prices are already being felt, he noted, adding that serious inflation may soon ravage the dollar’s remaining purchasing power even further.
For further reading on this clipped article, click here.
Indeed, there are many advantages that the state of Missouri can get from a lawful use of precious metal, as a means of goods exchange. People now can secure their purchasing power, and get a chance to secure their assets from the ill effects of inflation.
Plus their move to eliminate state taxes on precious metals can attract precious investors to buy gold in Missouri. Thus it can help increasing their state’s revenue. At the same time it can boost an economic development and can attract capital to the state.
The Missouri Sound Money Act can be of great help in giving a boost on the current gold price in the market.
