World and now states scramble for real money.

THE SEARCH FOR MONEY ALTERNATIVES GROWS

TEXAS CONTEMPLATES OWN GOLD BACKED CURRENCY 

The search for alternatives to the present predominance of fiat currencies has accelerated in recent weeks. Fiat currencies are currencies that have no intrinsic value or backed by nothing more than the government that issues them. Money used to be an asset, but it is now mostly government debt. All fiat currencies are continually losing value depending on how much debt the issuing country is issuing. The move to alternatives is now looking to be unstoppable.

The Muslim world has been looking for an alternative for years, especially when much of their oil resources has been priced by ever declining U.S. dollars. It seems that there is an alternative in the works were these countries will trade in their own currencies and then periodically settle deficits in trade with gold. This is still not a gold backed or gold redeemable currency.

The U.S. has launched it's form of digital currency on April 1. It is expected to be available for use by July 1. It seems that most countries are in the process of developing a form of digital currency. The U.S. attempt is being coordinated with the federal reserve and several large banks. I would expect it will be backed by nothing. Some other countries are considering backing their currency with gold or other commodities.

In the United States, Florida is in the process of denying the use of digital currency and some are considering offering an alternative. Many expect a government digital currency will start as voluntary then become mandatory with built in fees, taxes and possibly financed with negative interest rates. It will be the ultimate form of government control of every aspect of human life.

Some states are now passing laws that state that money is whatever the federal government decides it is to be. In the past banks and states did issue money all backed by gold or silver. 

Texas has 3 laws under review that will enact legislation making it possible for the state to issue gold backed and gold redeemable digital and paper currency. It would be initiated as a fraction of a weight of gold and would be redeemable in the actual metal on demand. We can expect the federal government will not like such a development, as any real money will quickly be more desirable than just a book entry of value by politicians and the bureaucracy and the control to sanction anyone with whom they are displeased. 

I would expect many court battles if states attempt to issue real money alternatives. I also expect that it will now be impossible to stop the rush of other countries to adopt some form of real asset backed currencies in the near future. If real money does become available, I would expect the rush to adopt those currieces will be unstoppable.