Utah to make gold legal currency

Image via WikipediaThe US state of Utah has passed a Bill that legalizes gold and silver for everyday financial transactions. Press TV talks with David Morgan, Silver Investor.com from Washington who was a party to the signing of this declaration to allow people to use gold and silver as transactional money for their everyday living expenses. He explains how this would be done. Following is an approximate transcript of the interview.

Press TV: There's a huge global insurrection against banker occupation and underneath that we see some interesting cross currents going on as well. You've just returned from the Utah monetary conference where you signed the Utah monetary declaration. How exciting - tell us all about it?

David Morgan: Utah is the first state in the union that has at law passed the fact that citizens can voluntarily transaction in the state in commerce. So in other words simply stated you can buy and sell with gold and silver as a transaction basis throughout the state.

Now, that is a little tough to do coin-wise so they've implemented a strategy that I think is very simple and one that we're familiar with - Put your gold and your silver with a depository; the bank gives you a credit on their balance sheet; they issue you with a debit card; and then you just use the debit card.

So to the merchants, Wal-Mart as an example, you simply swipe your debit card, the transaction goes down to the spot price that day whatever the spot price for gold or silver is and then at the end of the month they reconcile the account based on what you purchased during the month.

Once this is implemented I think it's going to catch on and then of course it sets a standard I think for other states to come along and do the same thing. There are 11 states that have proposed gold and silver in transactions, but Utah is the only one that has passed it in the law so far.

Press TV: If you have your account based in gold and silver and you're using it as your go-to savings account and checking account, you have protection against the government printing up lots of fiat-dollars and inflating the purchasing value away from your currency - so why wouldn't anyone not want to do this?

David Morgan: I do believe it's going to catch on - it's hard to say; there's a argument about Gresham's law that good money chases out bad - that you're only going to save the good money. But I don't think this is necessarily true and I don't have time to go into all the arguments, but I interviewed Larry Hilton who wrote the bill - he's a lawyer in Utah - and basically there's lots of reasons why you would want to use physical gold and silver in a transaction. More...