Why can't states make their own currencies?
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Isaac Bickerstaff
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They can. They just don't.
Under current law, they can use almost anything as a "monetary instrument" for banks to create the money. They can't seem to figure out that they can use assets (what we think of as assets--not the bank's idea) instead of more debt and the banks sure aren't going to tell them.
There is actually a grassroots effort underway in Minnesota to pass legislation forcing the state government to offer something besides debt for the banks to monetize.
http://www.webofdebt.com/articles/minnesota-bank-proposal.php
Under current law, they can use almost anything as a "monetary instrument" for banks to create the money. They can't seem to figure out that they can use assets (what we think of as assets--not the bank's idea) instead of more debt and the banks sure aren't going to tell them.
There is actually a grassroots effort underway in Minnesota to pass legislation forcing the state government to offer something besides debt for the banks to monetize.
http://www.webofdebt.com/articles/minnesota-bank-proposal.php
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IPSecure
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Local Currency for the Berkshire Region of Massachusetts
BerkShares are a local currency designed and issued for the Berkshire region of Massachusetts.
According to the BerkShares website, residents purchase BerkShares at 90 cents on the dollar from one of eleven branches of five local participating banks. Businesses then accept BerkShares at full dollar value, differentiating the business as one supporting the BerkShares values' of local economy, ecology, sustainability, and community, and creating a ten percent discount incentive for those using the currency.
BerkShares can then be used by accepting businesses to purchase goods and services from other participating businesses, make change, pay salaries, or support local non-profits, increasing the local economic multiplier effect and keeping value recirculating in the region. If businesses have an excess of BerkShares, they may also be returned to a participating bank for an equivalent of 90 cents per BerkShare.
Over 70 area non-profits currently accept BerkShares for donations. Participating banks provide BerkShares with eleven brick and mortar offices where residents can exchange dollars for BerkShares and receive more information on the project.
BerkShares are a local currency designed and issued for the Berkshire region of Massachusetts.
According to the BerkShares website, residents purchase BerkShares at 90 cents on the dollar from one of eleven branches of five local participating banks. Businesses then accept BerkShares at full dollar value, differentiating the business as one supporting the BerkShares values' of local economy, ecology, sustainability, and community, and creating a ten percent discount incentive for those using the currency.
BerkShares can then be used by accepting businesses to purchase goods and services from other participating businesses, make change, pay salaries, or support local non-profits, increasing the local economic multiplier effect and keeping value recirculating in the region. If businesses have an excess of BerkShares, they may also be returned to a participating bank for an equivalent of 90 cents per BerkShare.
Over 70 area non-profits currently accept BerkShares for donations. Participating banks provide BerkShares with eleven brick and mortar offices where residents can exchange dollars for BerkShares and receive more information on the project.
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acroso
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Links to this grassroots effort?
I'd like to see a regional effort. What if the old South block or the mountain West could become a a coalition of the willing sort of thing with a treaties amond the states to ignore the Greenback
And what is Berkshares?
I'd like to see a regional effort. What if the old South block or the mountain West could become a a coalition of the willing sort of thing with a treaties amond the states to ignore the Greenback
And what is Berkshares?
JosephTheLibertarian
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because we're a country
acroso
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country
Countries can't have competing currencies?
The entire goal of the Libertarian movement in my mind is to destroy the Federal Government.
The sooner we can stop them from seizing our assets through inflation the better.
Anyways...that's not a real answer\legal answer. There is no reason why countries can't have multiple currencies and even states have their own.
Besides we're not really a unified country anymore. We've balkanized to the point that keeping the Union together now is beyond pointless anyway.
Countries can't have competing currencies?
The entire goal of the Libertarian movement in my mind is to destroy the Federal Government.
The sooner we can stop them from seizing our assets through inflation the better.
Anyways...that's not a real answer\legal answer. There is no reason why countries can't have multiple currencies and even states have their own.
Besides we're not really a unified country anymore. We've balkanized to the point that keeping the Union together now is beyond pointless anyway.
Pauls' Revere
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There are a few municipalities which print thier own money. One is in Florida and another in New York. Sorry, I forgot the details.
Pauls' Revere
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If staes cannot could a group of people. I was under the impression that anyone could print money as long as it does not replicate or attempt to replicate the US Dollar or other currencies as to either counterfeit or appear to counterfeit other monies. Problem is getting people to accept that this "is" money. Monopoly money could be accepted if people agree to use it as a means to exchange for goods and servies. Correct me if I'm wrong. Airline frequent flyer miles are dispersed by airlines (corporations) and used by customer and business for services/goods. Thus, it too is a form of money.
Fox McCloud
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a State can't...what about a county? If a county could, then theoretically, if all counties in a State collaborated and agreed on the same exact legislation in all counties, the State could, in theory, have its own money, though in technicality, it'd still be the county's money.
It'd be really interesting to see just 1 US county have a gold-backed currency and have fractional-reserve banking outlawed....*chuckles* perhaps I should run for office in my county and push for such legislation.
It'd be really interesting to see just 1 US county have a gold-backed currency and have fractional-reserve banking outlawed....*chuckles* perhaps I should run for office in my county and push for such legislation.
buffalokid777
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A state sure can...it is in the constitution......
Article I - Section 10 "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;"
As long as silver or gold is used for currency in tender of debts....the states have every right to use gold and silver coin as legal tender as per Article I, section 10 of the constitution......
buffalokid777
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The problem with your theory zippyjuan is while the states are not allowed to coin money.....they ARE allowed to coin gold and silver as payment for legal tender of debts of the state......you quoted it yourself.....
Just as the federal reserve can print Federel Reserve Notes to use as legal tender for the settlements of debts......
So can the states produce legal tender for the settlement of debts as long as it is gold or silver.....
What the states CANNOT do under the constitution is produce United States Notes.....(ie...coin money under the banner of the united states when they are just a state)
The founders were dead on in seeing what this would turn into......
We should listen to the good rules they gave us to keep our freedom.......
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JosephTheLibertarian
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Danke
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At the Smithsonian Museum, there are many different notes from various banks on display. But my understanding is that while private institutions can issue their own notes, States are not allowed.
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JosephTheLibertarian
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Can I create my own currency and back it with my gold supply?
pdavis
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Article 1 Section 10 still applies since municipalities are a part of the state (the states incoporate municipalities to govern over a municipalities boundaries and can be revoked). Local currencies, such as the BerkShare, in the US are created by non-profit organizations, not municipalities.
U.S. Constitution - Article 1 Section 10:
The states can only compel or necessitate gold and silver coins as legal tender in payments of debt, not to mint gold and silver coins.
Fox McCloud
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thanks pdavis--that clear things up! 
so truly, we have to go for broke on this one (ie: the Federal level).
so truly, we have to go for broke on this one (ie: the Federal level).
Fox McCloud
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last I checked, he pretty much takes the "Going for broke" idea as well...he's introduced legislation that would abolish the Fed...and I think he's also introduced legislation that just repeals the legal tender law (which would allow competing currencies...and thus cause the Fed to implode in a very short period of time).
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