The state of Virginia has outlined plans to provide an alternative to the dollar should the Federal Reserve’s policies lead to a crisis in the currency.
Citing “many widely recognized”—although anonymous—“experts,” the House Joint Resolution argues there is a strong possibility the Federal Reserve system’s currency will inevitably be destroyed through hyperinflation.
Gold or silver may be used directly as a form of coin or as models for a new system created by the Commonwealth.
Although the dollar is not redeemable in either gold or silver, the resolution cites legal precedents that would allow the state to adopt whatever currency it desires to perform its sovereign governmental functions.
The resolution argues that the police power of a state is “a power originally and always belonging to the States.” Consequently, to protect the lives of its citizens, the state retains the right to avoid an “economic calamity” by any necessary means. (article continues below)
For the purposes of retaining some degree of stability, these alternative currencies would initially be introduced alongside the dollar and would not seek to immediately exclude it from the local economy.
A joint subcommittee will spend nearly a year investigating the possibility of an alternative currency, concluding its research on November 30.