Using Gold As Money: Just Do It!
“An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense… that gold and economic freedom are inseparable.” — Alan Greenspan
The Washington Post is reporting that conservative state legislator Bob Marshall is proposing the Virginia government study the feasibility of minting gold and silver coins to be used as money in the event that hyperinflation renders the U.S dollar unusable. Rather than address the proposal itself, the response to this from the left has been ridicule Marshall for wanting to bring back the Confederacy.
Now, I realize that Southern whites are the last remaining group in America against whom it’s still culturally acceptable to be bigoted, but this is not a proposal for the South to rise again, and I think most of its better-educated detractors know it. It ought to be enough to damn Marshall’s proposal for the flaws it actually has, which are (1) it’s not constitutional, as Article I, Section 8 assigns the federal government the exclusive authority to coin money, (2) it’s unlikely to pass in the General Assembly, and (3) if one government is debasing its currency it’s a little foolish to trust a different government not to do the same thing.
The real solution for those who want to use gold and silver as money is to use the Nike maneuver — just do it. You don’t need to wait for some government to tell you it’s okay. If you own a store, list your prices both in dollars and in ounces of silver. If you’re a customer, offer a silver round and see what the store owner says. It wouldn’t be that hard for someone enterprising to set up an online directory of businesses that participate. If there really is enough interest, those people can have their own sound money economy just like that. It’s the sort of thing I’ve always thought I might do using simply web technologies like PHP and MySQL if I can find the time. And with “quantitative easing” and related euphemisms for running the printing presses to churn out more money coming out of Washington, maybe sooner would be better than later.