We must, before doing or saying anything else in this blog, firstly thank W.G. for spotting and sharing these stories. The reason why is rather simple: because thus far the revolt of the states in passing state legislation recognizing gold and silver as money and legal tender, and of states opening their own bullion depositories, has thus far been confined to “flyover country” where we who are all part of Darth Hillary’s “basket of deplorables ” all live. One would expect such “nonsense” as bullion as money and state bullion depositories from us rubes in Wyoming or Tennessee or Texas.
But when the revolt spreads to places like North Carolina, a bastion of transplanted northeastern reason and “progressivity”, it might be time to start worrying:
Now you’ll note that the precise language of the article here is less than comforting, for again, the idea of the issuance of physical bearer certificates of deposit is utterly missing, and hence the idea of convertibility and convenience of exchange is missing. Rather, the bill is hinting at bullion backed “crypto currency”, and I believe my objections to the idea that crypto is anywhere close to a real currency are well enough known that there is no reason to rehearse them again here. What the North Carolina bill as it reads appears to be doing is simply creating the ground for state purchase of and speculation in private crypto currency as it is of purchase of and speculation in bullion.
There is, however, something noteworthy about this article, because a clear reason for doing so is articulated explicitly, and that is the loss of state confidence in the federal reserve “dollar”:
Holding gold and silver in reserve will also create a pathway for North Carolina to maintain financial independence should the U.S. dollar collapse, a very real possibility as the world moves away from the greenback as its reserve currency.
But folks, don’t be deceived: until such time as these states start talking about the issuance of physical bearer certificates of deposit, and address the issue of its use as a medium of exchange, this is all, in my opinion, simply a means of smuggling in central bank digital “currency” under the disguise of a lot of nice-sounding talk about states’ rights, state created digital “currencies”, nullification, “Gresham’s law” and sound money. You’ll note that what has been missing thus far in all of these measures is precisely the point of convertibility of certificates of deposit, and their use as money. If they are genuinely serious, they should not hesitate to say that one can have either a crypto-currency electronic token, or a physical piece of bearer certificate of deposit; without the latter, everything else is just talk. And it’s very deceptive talk at that. I for one would never consider depositing any amount of bullion in any depository without that option. Don’t talk to me about a crypto wallet or password or any electronic nonsense. I want the piece of paper with all its anti-counterfeiting measures. Period. End of discussion.
I am encouraged by all the states taking these measures, don’t get me wrong, but I am also insistent that the key missing piece is the piece of paper saying that “x” amount of silver or gold is on deposit in the State X bullion depository, and that this certificate can be redeemed for that amount. Show me the facsimile or the first printings of such certificates, and I’ll believe you’re fully serious.
Now with that in mind, let’s go to the other partially encouraging story shared by W.G. We all “just know” that Real Progressive Civilization only exists in the narrow strip of land east of the Hudson River, and running roughly from New York City and Albany to Boston, with a few places like Hartford and Providence in between; or it exists only in that narrow strip running from roughly from Philadelphia, through Baltimore, to Swampington, D.C. (Sorry, Richmond, you’re not really a part of Civilization because of your Confederate past). Sometimes, however, a little of that Real Civilization oozes, slurps, or dribbles over onto New Jersey. Everything else is The Wilderness, Terra Incognita, and inhabited by the Barbarians of the Basket of Deplorables.
It must comes as a shock to the Enlightened Intellectoids of the Real Progressive Civilization, therefore, that New Jersey might be reverting to the Barbarism of places like Texas, Tennessee, and (shudder) Wyoming:
With New Jersey possibly joining the fray, it’s now more or less official: deep states of the states know that the Deep State of Swampington has blown it completely, and that it’s only a matter of time before the whole thing implodes. And they’re making plans accordingly.
So what’s the deal with my insistence on the convertibility, physical certificates of deposit factor? Only this: that when they do start talking about that in the state assemblies and legislatures, you’ll know the implosion is close, and that they’re serious. All else is fake, because a “bullion backed” digital currency is not a currency at all; without that convertibility, and without the use of a physical medium of exchange to enable it, it’s all just talk, nice talk to be sure, but just talk. Just as a reminder, it looks like this (and read it carefully):
I remember spending these as a boy. I also remember how they quietly began to disappear after Lyndon BAINES Johnson, when the Federal Reserve Banks, when receiving them, would quietly withdraw them from circulation, and burn them.
See you on the flip side…