http://www.sltrib.com/sltrib/home/50949183-76/gold-state-utah-coins.html.cspLegislation which is being proposed for the January legislative session proposes that Utahns should be permitted to use gold for payment of debt to state agencies instead of federal reserve notes. This legislation also gives specific legal authority for private citizens in Utah to coin their own money.
I have no idea how this fits with federal constitutional authority for coining money, but it certainly is something that really struck me as something both odd and curious that a formal discussion in at least this state legislature over the validity of federal reserve notes and perhaps this is an indicator of what may be a trend elsewhere if the U.S. Dollar goes hyperinflationary.
Note that this is merely proposed legislation, and the reason this is in the news is because state legislators are trying to jockey themselves into position before the legislative session starts at the beginning of next month (January 2011). At least in Utah, the legislative session lasts only 45 days and any legislation not passed by the end of the session is considered dead. December is usually when the more outlandish things come out, but none the less I think this particular bill is going to be at least discussed in committee.
It will be interesting to see how much traction this issue may have, and if other states might join with Utah in doing the same thing.
