Should states be allowed to mint their own currency?

  • States should be allowed to make their own MONEY, not currency.

    The ignorance of the general public here in America never ceases to ammaze me. Unable to know the difference between money and currency is just another example. Money is something of value used for trade backed by, or consisting of, a tangible commodity. Our dollar used to be money (backed by gold and silver), and now it is a fiat currency. A fiat currency has no intrinsic value at all and is subject to manipulation by the creator of the paper. All fiat currencies in history have eventually failed due to hyper-inflation when the debits owed by the producer exceeded the available pseudo-value of the paper.

  • States Should Mint Their Own Currency

    States should be allowed to mint their own currency but still accept the currency minted by the Fed. This would provide a system to identify the wealth of the state vs the wealth of the united states and provide a quick, visual way for people of that state to discriminate in business transactions so as to preserve the values of that state.

  • We have tried this already.

    It amazes me that people are ignorant of history. Under the Articles of Confederation states were allowed to print their own money and establish their own laws regarding commerce with other states. The confusion was immense and caused the founders to call for a new form of government after just a few years under the Articles because it caused nothing but perplexion and bewilderment allegedly leading to one diplomat quipingly ask our ambassador "Do you represent one country or 13." Such ideology have been tried and failed. We do not need to regress back to them.

  • We tried this already

    One of the reasons that the Founding Fathers started the convention that resulted in the Constitution is because each state printed its own currency which proofed to confusing when you are trying to sell goods and services across state lines. Imagine, I live in Texas and we have the Texas Peso it automatically requires online sales outlets and banks to create and implement a conversion algorithm. Now expand that to multiple states and you start running into some confusing situations as each of these "currencies" will have varying values against the Dollar. It is insanity that we are regressing to the Articles of Confederation, a system that has proven to be a failure and why after just a few years it was adopted.

  • No. This is a Federal responsibility.

    The specifics of each state having its own currency would become far too problematic. If each state were to be able to print their own money, then we would start to have exchange rates between two states. Individuals who live in one state and work in another would have significant difficulty in using their earnings in another state. Tax laws would become even more convoluted as would financing national defense, interstate highways, Internet, and many other types of interstate commerce. This is why our Founding Fathers reserved the power of printing/coining money exclusively to the Federal government in our Constitution.

  • The Federalist No. 43 by James Madison (Excerpt)

    The extension of the prohibition to bills of credit must give pleasure to every citizen, in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the Peace, from the pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the People, and on the character of republican Government, constitutes an enormous debt against the States chargeable with this unadvised measure, which must long remain unsatisfied; or rather an accumulation of guilt, which can be expiated no otherwise than by a voluntary sacrifice on the altar of justice, of the power which has been the instrument of it. In addition to these persuasive considerations, it may be observed, that the same reasons which show the necessity of denying to the States the power of regulating coin, prove with equal force, that they ought not to be at liberty to substitute a paper medium, in the place of coin. Had every State a right to regulate the value of its coin, there might be as many different currencies as States, and thus the intercourse among them would be impeded; retrospective alterations in its value might be made, and thus the citizens of other States be injured, and animosities be kindled among the States themselves. The subjects of foreign powers might suffer from the same cause, and hence the Union be discredited and embroiled by the indiscretion of a single member. No one of these mischiefs is less incident to a power in the States to emit paper money, than to coin gold or silver. The power to make anything but gold and silver a tender in payment of debts, is withdrawn from the States, on the same principle with that of issuing a paper currency.

  • Isn't money confusing enough?

    Even ignoring global currencies, the currency in the United States is complicated. With our mints struggling to provide collectible coins and bills, and counteract counterfeiters, it's hard to know what is going on. Imagine if each state were producing their own form of money. Perhaps they would have a standard, but I doubt it would happen that way.

  • Confusion is not worth it

    The confusion that each state having their own currency would cause would be astronomical; not only that, but poorer states like Wyoming would have very unfavorable exchange rates against a state like California. Trade would be a headache and how would the government curb inflation? Each state minting their own currency would be a disaster.

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