Is the Fiat Currency System Doomed? Louisiana Thinks So
Across the United States, a growing number of states are passing legislation reaffirming gold and silver as legal tender while also rejecting Central Bank Digital Currencies (CBDCs) as valid money.
This legislative trend underscores a profound skepticism towards the stability of the fiat currency system and a proactive approach to safeguarding economic stability.
By embracing sound money principles and constitutional directives, these states are positioning themselves to withstand potential financial upheavals and protect their citizens’ wealth.
In This Article
- Louisiana’s New Legislation on Gold and Silver
- Constitutional Foundation for Sound Money
- Growing Trend Against Fiat Currency and CBDCs
- Implications for the Future of State Economies
Louisiana has made a significant legislative move as Governor Jeff Landry signed a new law on May 31, 2024, reaffirming gold and silver as legal tender.
This action reflects a broader state-level trend anticipating a collapse of the fiat currency system.
Louisiana’s New Legislation on Gold and Silver
Senate Bill 232, sponsored by Senator Mark Abraham, declares that any gold or silver coin, specie, or bullion issued by the United States government is legal tender when agreed upon by both parties in a contract.
The bill enjoyed overwhelming support, receiving only one dissenting vote in the Louisiana House and Senate.
Constitutional Foundation for Sound Money
This legislative move aligns with the U.S. Constitution. Article 1, Section 10 states: “No state shall…coin Money; emit Bills of Credit; [or] make any Thing but gold and silver Coin a Tender in Payment of Debts.”
This principle, rooted in the nation’s founding document, highlights the enduring importance of sound money policies.
Also Read: How Countries Can Successfully Reinstate a Gold Standard
Growing Trend Against Fiat Currency and CBDCs
Louisiana is part of a growing national trend where states are moving away from the fiat currency system and rejecting Central Bank Digital Currencies (CBDCs) as valid money. In 2024, Alabama, Utah, Wisconsin, Nebraska, and Kentucky passed similar legislation.
These states have taken steps to eliminate sales and capital gains taxes on precious metals and empower state treasurers to invest in gold and silver. This movement underscores a deepening distrust in the stability of the fiat currency system.
Implications for the Future of State Economies
The 53-year experiment with a purely fiat currency system in the United States has resulted in significant economic challenges.
The Federal Reserve note “dollar” has lost purchasing power, leading to inflation and economic instability. By reaffirming gold and silver as legal tender, states like Louisiana are proactively protecting their citizens’ wealth and preparing for a potential collapse of the fiat currency system.
Also Read: Florida, Indiana Ban CBDCs: Gold As Money A State’s Right
This legislative trend suggests a broader shift towards economic self-reliance and stability at the state level, highlighting a growing recognition of the need for sound money policies.
The Bottom Line
Louisiana’s reaffirmation of gold and silver as legal tender is a clear indication of a broader state-level trend towards sound money policies.
As more states join this movement, it signals increasing skepticism about the long-term viability of the fiat currency system and a proactive approach to ensuring financial stability.
By embracing precious metals and rejecting CBDCs, states are positioning themselves to safeguard their economies and citizens against the potential collapse of the fiat currency debt system.
Also Read: How Would the Price of Gold RV in a New “Gold Standard” Today? This Chart Will Surprise You
