Fearing financial apocalypse, the commonwealth of Virginia wants to make a very bold move: Creating its own currency.
The Washington Post reports the state’s House of Delegates voted overwhelmingly to follow in the footsteps of Utah steps. Utah has a law that recognizes things other than U.S. money as legal tender within their state borders.
This is all happening because of a lack of confidence about the value of the U.S. dollar, the possibility of inflation and hyper-inflation, and anger about the manipulation of the money supply by the Federal Reserve.
There is plenty of room to disagree about whether or not the Federal Reserve’s moves were right or not. Have their moves debased the currency and will they cause out of control inflation? You have people comparing what’s going on to the Weimar Republic and the financial instability it created that gave rise to Hitler’s Germany.
I can tell you we are not on the verge of galloping inflation and U.S. money remains sound.
The real threat and challenge for us is to not spend more than we as a country take in. The truth is the Federal Reserve will be able to reverse a lot of moves it has made as the economy strengthens. And they’re not in a position to destroy the U.S. dollar as these votes in Virginia and Utah fear.
I get callers all the time who don’t trust the U.S. dollar and want to sink everything they’ve got into precious metals.
Let me say that I don’t worry about this stuff, and I have my ability to be anxious just like the next guy. But this whole scenario is not among those things that keep me up at night.