On January 12, 2011 the state of Virginia introduced House Joint Resolution Number 557 to establish a joint subcommittee to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System.

I was quite amazed when I read the proposed document this morning.  In my opinion it is a bold move but a smart one; one that we should all consider doing for ourselves.  The document sites a Supreme Court ruling in which the states have the right to protect the lives, health, and property of their citizens, and to the preservation of good order.  Which includes the maintenance of both an adequate system of governmental finance and a sound and robust private economy; and whereas, an adequate system of governmental finance and a sound and robust private economy cannot be maintained in the absence of a sound currency.

The document goes on to say that the current economic system under the power of the Federal Reserve is in ever increasing predictable strain and that gold and silver as an alternative currency would protect its citizens against hyperinflation, depression or other economic calamities.  They further substantiate the right of each state to use an alternative currency through case law.

The study is supposed to be completed and submitted by January 1, 2011.

This is a huge deal.  The state of Virginia is looking for a way to protect itself from the eroding value of the dollar and all crises resulting from money printing by the Fed, and Virginia is not the only one.  The States of Georgia, Indiana, Montana, New Hampshire, and South Carolina have introduced similar bills.  It looks as though government officials see the possible collapse of the US Dollar and are beginning to take action.  If states are looking for a way to protect themselves shouldn’t the citizens of the US do the same thing?

Gold and silver are a form of real money, therefore private citizens that own some have essentially bought another currency that has real value.  Silver and gold coins are a great way to diversify your portfolio which adds a layer of protection for all of your other paper assets.  In the event of a US Dollar collapse gold and silver will provide the ultimate insurance policy.

To read the entire document click link:
http://lis.virginia.gov/cgi-bin/legp604.exe?111+ful+HJ557+pdf