Are we headed for a new system of currency?
Grand Rapids, MI -- (SBWIRE) -- 04/04/2013 -- Financial advisor Dennis Tubbergen can be counted on to give the latest U.S. and world happenings when it comes to the U.S. economy and general financial news. However, Tubbergen has also spent a lot of time discussing our currency.
Tubbergen, who is a financial advisor, author, radio show host and CEO of PLP Advisors, LLC pens a weekly newsletter at www.moving-markets.com and writes a blog that can be viewed at www.dennistubbergen.com. On March 25, his blog was titled Another State to Adopt Gold and Silver as 'Official' Alternate Currency?
"The State of Arizona may be close to joining the State of Utah in officially adopting gold and silver as an alternate currency," began Tubbergen.
Below he quotes from a March 20, 2013 Mineweb article.
Arizona could soon become the second U.S. state to recognize gold and silver as legal tender if the Arizona House approves SB 1439.
The bill has already won the approval of Arizon's State Senate and the Arizona House Financial Institutions Committee which voted the legislation out of committee on a 4-2 vote Monday. The measure now goes to a vote of the Arizona House.
Thus far, only the State of Utah has officially recognized gold and silver as legal tender, although the issue has been under consideration this year in four states including Arizona. The Arizona bill defines legal tender as a mode of paying debts and taxes.
The measure also states that any coin or bullion that has gold or silver content and is issued by the United States Government can be defined as legal tender. However, no one can be compelled to accept coin or bullion containing gold or silver. The measure would also mandate that coin or bullion containing gold or silver issued by the U.S. Government cannot be taxed as property since it is to be considered money.
If the Arizona Legislature enacts SC 1439 and Republican Gov. Jan Brewer signs the measure into law, gold and silver would go into effect as legal tender in the state in 2014.
"Interestingly, when one studies history and the cycle that I call ’The Money Cycle,’ one finds that hard assets like gold and silver have been money more often in history than not," explained Tubbergen. "Typically, rather than using actual pieces of gold or silver as money, paper money that is backed by gold or silver either entirely or in part is used as money."
Tubbergen went on to say that then, as economies 'evolve,' fiat currencies take over. A fiat currency is simply paper money not backed by anything tangible. Historically speaking, fiat currencies fail.
"The Roman Denarius, originally comprised of silver, eventually failed after the coin was debased and minted from non-precious metals," stated Tubbergen. "In John Law's France in the early 1700s, the paper money system that evolved from a system of precious metals backed by paper money, eventually failed."
According to Tubbergen, similar failures are evident in early colonial America with the failure of the Continental currency and in Wiemar, Germany after World War I.
"While I am bullish short-term on the U.S. Dollar, given the rapidly deteriorating events in Europe, long-term I expect that more discussions like this will continue to take place," concludes Tubbergen. "Alternative currency systems will likely continue to emerge."
To read the blog in its entirety go to http://www.dennistubbergen.com and select his March 25, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM. To listen to his shows as podcasts go to www.everythingfinancialradio.com
About DENNIS TUBBERGEN
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to www.moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.