Georgia Introduces "Honest Money" Resolution

from The Ohio Republic:

Jan 6, 2011 10:30 AMGeorgia introduces "Honest Money" resolutionfrom The Ohio Republic by Harold ThomasFrom Michael Boldin at the Tenth Amendment Center Unindented portions below are also quoted from the Tenth Amendment Center site. The term "Constitutional Tender" is a more formal synonym for what we in Ohio call Honest Money. Honest Money is the only practical way we can protect ourselves from the hyperinflation in Federal Reserve Notes that will come when investors lose confidence in the dollar.




In the 2011 legislative session, Georgia will consider House Bill 3 (HB3), which states, in part:



The General Assembly finds that, as mandated by Article I, Section 10 of the United States Constitution, the state shall not “make any Thing but gold and silver Coin a Tender in Payment of Debts.” Federal Reserve Accounting Unit Dollars, having no redeeming value in gold or silver coin, shall not be made a tender in payment of debts by the state.

and further:



silver coins, silver eagles, and gold eagles shall be the exclusive medium which the state shall use to make any payments whatsoever to any person or entity, whether private or governmental. Such coins shall be the exclusive medium which the state shall accept from any person or entity as payment of any obligation to the state including, without limitation, the payment of taxes; provided, however, that such coins and other forms of currency may be used in all other transactions within the state upon mutual consent of the parties of any such transaction

The result? Bill Greene sums it up best in a recent Tenth Amendment Center op-ed:



Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the State’s treasury, an influx of banking business from outside of the State (as citizens residing in other States carry out their desire to bank with sound money), and an eventual outcry against the use of Federal Reserve Notes for any transactions