Florida Recognizes Gold and Silver as Legal Tender, Setting the Stage for Monetary Rebellion

Florida’s legislature has passed House Bill 999, a measure that could have significant implications for the American fiat currency system. The bill, which now heads to Governor Ron DeSantis for his signature, passed the House by a vote of 114-1 and the Senate without a single dissenting vote.

The bill recognizes gold and silver as legal tender for the payment of debts, a move that aligns with the original intent of the U.S. Constitution. Article I, Section 10 of the Constitution explicitly states: "No State shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debts."

This contrasts sharply with the federal government's actions. Article I, Section 8 grants Congress the power to "coin Money" and regulate its value. This power is intended to be used for striking coins of gold, silver, or potentially even copper, not to print paper or mandate its acceptance as the sole medium of exchange.

The Constitution does not grant the federal government or its central banking appendage, the Federal Reserve, a legal monopoly on issuing currency. In the Founders' vision, a free market in money would exist, with private banks issuing their own currencies backed by gold or silver. Citizens would then be free to assess the value of these currencies and choose which ones to accept.

This privately-issued, competitive currency system ensures accountability. Consumers could check on the gold or silver that might be backing each privately issued monetary note and accept or not accept it as payment, based on that personal assessment.

In contrast, fiat currency, which is government-issued and mandated money, is a tool for reckless state spending.

Governments and central banks, like the Federal Reserve, can print money at will, flooding the economy with new dollars that dilute the value of existing ones. This inflation of the money supply, as the Austrian School of economics incisively reveals, doesn't just erode purchasing power; it distorts market signals.

The Austrian School, with luminaries like Ludwig von Mises and Friedrich Hayek, exposes how fiat money fuels artificial booms. Cheap credit, conjured from thin air, encourages reckless borrowing and spending, misallocating resources to unsustainable investments—like housing bubbles or tech fads.

When the inevitable correction comes, the bust leaves shattered dreams, bankruptcies, and economic chaos in its wake. This boom-bust cycle isn't a market failure; it's a government-induced disaster, rooted in the hubris of central planners who think they can manipulate prosperity and fund endless wars with a printing press.

Florida's move to recognize gold and silver is a direct challenge to this fiat folly. H.B. 999 not only declares gold and silver coins legal tender for debt repayment but also removes taxes on their exchange, treating them as money rather than commodities.

This aligns with the Constitution's mandate and sets a precedent for undermining the Federal Reserve's stranglehold. The bill's definition of "coin" includes any round, bar, ingot, or bullion of at least 99.5 percent purity, ensuring flexibility for practical use.

State agencies can accept these metals for taxes and fees, potentially via electronic transfer, further normalizing their role in everyday transactions.

Florida is one of several states to take this step. Seven other states—Utah, Wyoming, Oklahoma, Arkansas, Louisiana, Idaho, and Alabama—have passed laws recognizing gold and silver as legal tender.

Utah, the first state to do so in 2011, provides a striking example. Following the enactment of the Utah Specie Legal Tender Act of 2011, the United Precious Metals Association was formed to promote the use of gold and silver coins.

Later that year, the association began issuing the "Goldback," a spendable gold note designed for small transactions and priced in fractions of a gram of gold, in cooperation with the Central Bank of Cyprus.

The initiative encountered difficulties as Cyprus's central bank withdrew from the project due to political pressure. Despite this setback, the association persevered and partnered with a bank in the Union European Economic and Monetary Union to continue issuing the Goldback.

The potential implications of Florida's move are significant. By recognizing gold and silver, the state is setting the stage for a parallel monetary system that could be less vulnerable to the Federal Reserve's actions.

As Austrian economists have pointed out, when people use stable, commodity-backed money, it creates a "reverse Gresham's Law" effect—good money drives out bad.

This means that if people begin using gold and silver coins more in their daily transactions, there would be less demand for Federal Reserve notes, potentially leading to a decline in their use.

The Senate's amendments to H.B. 999 also mandate additional regulations, like record-keeping and deposit security, reflecting a cautious approach.

The Chief Financial Officer and Financial Services Commission must draft rules by November 1, 20