Arizona Approves Gold and Silver as Legal Tender

The Arizona state legislature has officially approved a measure to make gold and silver bullion and coin legal tender in the state.

The measure gained immense support in recent months in the State House and Senate during multiple rounds of ongoing quantitative easing conducted by the Federal Reserve. On Monday, the Arizona House of Representatives officially signed a Senate bill authorizing the use of gold and silver as legal tender.

With the signature of Governor Jan Brewer, retailers in Arizona who are willing to accept gold and silver in lieu of paper money will be allowed by state law to accept precious metals as payment.

Republican State Senator Chester Crandell said the bill gives them the ability to use gold and silver as tender and have the same recognition as the paper dollar coming out of the Federal Reserve.

Senator Crandell is a sponsor of the bill, known as SB 1439, and he was among the legislators who crafted the bill to emulate a similar law passed in Utah in 2011.

In the days prior to the Arizona House approving the bill with a 36-22 vote, University of Central Oklahoma Professor Loren Gatch told Bloomberg News that more states are likely to adopt similar bills if the Federal Reserve continues the policies of Chairman Ben Bernanke.

Gatch said the legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing. Gatch added there is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar.

RT reports that though lawmakers in Arizona might have tamer language, they seem to agree as inflation has been rampant and the value of the dollar has declined rapidly since the United States abandoned the gold standard in 1971.

Once Governor Brewer signs the bill, Arizona residents will be allowed to use gold and silver as legal tender beginning next year, in 2014. Of course, vendors have the option of which form of currency they prefer. Following the Arizona Senate first passing the bill in February, the House amended the bill to exempt the state’s Department of Revenue, which would have mandated that businesses accept precious metals.

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