Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender. Arizona is poised to follow Utah, which authorized bullion for currency in 2011. Similar bills are advancing in Kansas, South Carolina and other states. (Bloomberg News link)
For a barbarous relic that Ben Bernanke adamantly claimed, under oath in front of Congress, is not a currency and that Central Banks only hold out of tradition, you have to wonder why 12 States are currently processing legislation that would authorize the use of bullion as currency in those States.
I guess some legislators in those States have actually read the Constitution and decided to try and reassert some of the Constitutional authority that our Federal Government has maliciously usurped.
And if Central Banks just hold gold "out of tradition," as stated in the same testimony by Bernanke, you have to wonder why the IMF/ECB is forcing Cyprus to unload 339,000 ozs of its Central Bank gold in order to help fund the bailout of the banking system there. Why would they sell something no one wants? I might suggest that perhaps the U.S. wants that gold to replace the 2 million of ounces of gold that have been removed from the Comex over the last three months and have disappeared into private vaults.
Finally, in April 18th, the Canadian Broadcasting Company is going to air a documentary called "The Secret World of Gold:"
Some claim that much of the gold held by the Bank of Canada, the Bank of England, the Federal Reserve and Fort Knox is gone — that for every 100 ounces of gold traded, there exists only one ounce of real, physical gold. So, where is the gold — and who really owns it?Here's a link to the announcement: The Secret World of Gold
Maybe the fact that wars are started over the possession of large quantities of gold throughout history going back to the Roman Empire is really why Keynes referred to it pejoratively as a "barbarous relic." And maybe we should all be asking ourselves why use and possession of gold creates such controversy.
If gold is nothing more than Central Banking tradition, why is the Fed refusing to comply with a Freedom of Information Act request to supply information regarding the Fed's gold trading activities? The Fed is so adamant on this, in fact, that it is taking the lawsuit over this issue to the Supreme Court. Kinda makes you wonder...