South Carolina Rep. Mike Pitts has introduced legislation that would mandate that gold and silver coins replace federal currency as legal tender in his state.
As the Palmetto Scoop first reported, Pitts, a Republican, introduced legislation this month banning “the unconstitutional substitution of Federal Reserve Notes for silver and gold coin” in South Carolina.
In an interview, Pitts told Hotsheet that he believes that “if the federal government continues to spend money at the rate it’s spending money, and if it continues to print money at the rate it’s printing money, our economic system is going to collapse.”
“The Germans felt their system wouldn’t collapse, but it took a wheelbarrow of money to buy a loaf of bread in the 1930s,” he said. “The Soviet Union didn’t think their system would collapse, but it did. Ours is capable of collapsing also.”
First, a minor correction: the German deflation took place in the 1920’s, not the 1930’s. Since he brought up the collapse of the rouble with the old Soviet Union, he should have seen it first hand, as I did and describe in Half a Million Roubles. Is it Enough?
Personally, I wouldn’t waste the SC legislature’s time on something like this. As long as the USD spends for something, we’re good. When it doesn’t, we’ll do like the Russians: find another hard currency to deal in. The people of SC are for the most part enterprising enough to figure this out.
Ultimately the burden is on the the Federal government to manage the currency–and the country–in such a way that it’s viable. When it isn’t, we must seek a “Plan B.” It’s that simple.