The buck stops here? Virginia eyes switching off dollar

Posted: February 01, 2011

8:42 pm Eastern

Kelly O'Meara

WASHINGTON – Virginia state Delegate Robert G. Marshall has introduced legislation to study whether the Commonwealth should make the preparations now to switch suddenly to an alternative currency in the event of an implosion of the Federal Reserve System and the destruction of the dollar.

House Joint Resolution 557 is another piece of a growing movement among state legislators who are concerned about the dollar's demise. Ten states have considered similar bills, recommending a return to some form of a commodity-based currency, using either silver or gold.

Marshall's Resolution 557 offers a list of worst-case scenarios to support the need for such a study, including:

Marshall chose them for good reason and tells WND, "I read the financial pages and I see the coverup that the Obama administration is engaging in, eliminating the cost of food and energy from CPI to fool the public (about the rate of inflation), and the fact that China is seeking to become an international currency and Russia, Japan, Saudi Arabia and China have all met to discuss this possibility."

The Virginia legislator also is aware of the recent report from the International Monetary Fund politely warning the U.S. to bring its public debts under control, and also Moody’s Investors Service, which recently hinted that the U.S., with its $1.5 trillion deficit and debt approaching $14 trillion, (not including the $70 trillion off balance sheet commitments of Social Security, Medicare and Medicaid) could be next to lose its AAA credit rating, ultimately making it much more difficult for the U.S. to borrow money needed to pay its debt.

"The fact that the Federal Reserve has resorted to the printing presses, well; these are the ingredients, the precursors to hyperinflation. We can't predict when it will happen, but we should be prepared for it if we're serious about being in public office," Marshall says.

The kind of study Marshall is proposing never has been popular among politicians who get elected and stay elected by making promises to the voters, usually with lofty price tags.

On the other hand, a commodity-backed currency – a gold standard - forces governments to spend only as much money as its country has in gold and provides a self-regulating and stabilizing effect on the economy.

So, what are the chances of moving the bill through the Virginia legislature?

"It's puzzling," says Marshall. "I presented it to the subcommittee and ... they just sat there smiling like Cheshire cats, they didn't move to kill it and didn't move to report it to the committee. So, I'm going to try and move it along and get the attention of someone on the full committee to report it.

"This proposal," says Marshall, "is about being prepared. If you're crossing the Atlantic on the Titanic somebody should think about a life preserver. This is about asking the simple questions 'does Virginia need some life boats, can we build them and how long will it take?'"