Community Currencies

    According to the US Constitution, only the Federal Government has the power to issue currency. States may "make silver and gold coin a tender in payment of debts" if they so choose, so long as they are from the US Mint. It also allows communities the ability to issue a form of currency. Until recently, only a few communities and no states have done so. This, however, looks to be changing.

  In March of 2011, Utah became the first state to accept US Mint silver and gold coins as payment of debts in their state. South Carolina has proposed a bill which would accept silver and gold coins minted anywhere such as the Kruggerand. Lawmakers from 13 states this year-- including my own state of Minnesota-- have explored or have actual bills in place to issue their own currency.

  On a local level, a dozen or so communities have issued some form of currency, including the Washington DC area, where the "Potomac" is accepted in exchange for goods and services. The largest and oldest of these locals is the CHE {Cascadia Hour Exchange} which is issued in the Portland,OR area. There are now over twenty communities in the US doing this.

  Why is all this happening ?: Ben Bernanke is hell bent on printing our way into either a recovery or hyperinflation. In a word, fear. Should serious inflation {or deflation} take place in the US, I look for these community currencies to become commonplace.