UPDATE ON UTAH GOLDBACKS
About two years ago at approximately this time, I did a couple of short blogs on the emergence of yet another "local currency," the Utah "goldback":
It came, as I noted in a follow-up blog, as part of a movement where many local currencies were springing up:
More recently we've seen West Virginia join the growing list of states passing bullion-as-legal tender laws; not specie, but bullion, as states are removing taxes on the commodities in the hopes of stirring up interest in using as a medium of exchange, and Oklahoma appears to be next in line of US states considering the passage of such laws.
With all this going on, it's not surprising the Utah Goldback is back in the news, and yes folks, it means that the local currency is still around:
What's intriguing to note here is that since I first covered the story a little under two years ago, the use of the currency has slowly spread; note this:
For thousands of years, anyone who wanted to buy goods with gold faced “the small coin problem,” Cordon told The Epoch Times. A 1-ounce gold coin, worth about $2,000, is far too expensive for everyday use, but a cheap gold coin is impractically small.
“Gold is the best money, but it can’t buy a loaf of bread,” he said.
To solve this problem, Cordon used new technology to create a bill that sandwiches a particle-thin gold layer between two layers of polymer—the Goldback. The result can be worth as little as $3.80.
At a time when Bitcoin has devoured most of the private and local currency market, Goldbacks have arrived late to the private currency world. In the 1980s and ’90s, private currencies experienced a boom around the United States, according to University of Central Oklahoma professor and local currency expert Loren Gatch. But since then, they’ve been on the decline.
“That’s something which [has] pretty much gone downhill in the last couple decades,” Gatch said.
Cities such as Ithaca, New York, and Berkshire, Massachusetts; businesses such as coal mining camps; and political groups such as left-wing activists and libertarian anti-government enclaves have all used private currencies.
But even amid a private currency decline, Goldback has $20 million of bills in circulation, according to Cordon. They’re recognized as legal tender in Utah and Wyoming and are legal for use in New Hampshire, Nevada, and South Dakota. This number puts Goldbacks at the top end of what private currencies have ever achieved.
“It’s totally off the scale,” Gatch said. “$20 million is far greater than what I think any of the experiments that I’m familiar with—in the last quarter-century—have ever tried to do.” (Boldface emphasis added)
In other words, what began as a small effort more or less confined to the state of Utah, has now spread to four other states: Wyoming, New Hampshire, Nevada, and South Dakota.
So I'm going to suggest something here, something to watch for, that may more or less really establish the idea of local currencies in general, and Utah goldbacks in particular, and that is, watch for the acceptance of such currencies in state-run bullion depositories. From there, its a short step to the issuance of receipts for bullion deposits, and from there, another very short step to the trading of the receipts themselves as media of exchange... as money, and note well, as real money, not the facsimile thereof (monetized debt).
In short folks, forget about digital "currencies", which as Catherine Austin Fitts has been warning for years, are not currencies at all, but nothing but corporate coupons. The real revolution is in the bullion depositories, and local currencies such as the goldback. Once we get to the stage of using bullion deposit receipts are media of exchange, the central bank jig is up.
See you on the flip side...
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