Confusion and distrust from the Federal Reserve along with concern that the value of US dollar may become low and not up-to-the-mark worthy is pushing in lots of states to consider and recognize the value of gold and silver, especially coins as their new legal tender. Arizona lawmakers are geared up to follow Utah which is reported to have legally authorized bullion as their currency in the year of 2011. Nations such as Kansas, South Carolina and others are also following suit and advancing towards legalizing similar bills.
The measures that are backed by the Tea-Party are almost indicative and symbolic with statement that in Utah there is still not provisions for paying for groceries and daily items with gold. This has reflected the continuing concern of dollar value which are amplified by the unconventional moves and measures from the Fed’s in the recent last few years in order to bring about stabilization in the economy, says Gatch who is a teacher of politics at the University of Central Oklahoma.
In the words of Gatch, the legislation has started indicating discontent and dissatisfaction in regard to monetary policies added with the role of Ben Bernanke. Gatch also studies alternative currencies at the Oklahoma based school of Edmond. He also adds that there is a concern prevailing that the government, that is Bernanke along with Federal Reserve, is trying to pursue a financial policy that will result in the damage and hamper of the value of dollar which is behind this trouble.
In the time frame of 18months recession, Bernanke has pushed off the interest rates to almost zero, since its beginning in the year of December 2007. It is revealed by Fed that in the month of March it will keep on purchasing securities worth $85 billion every month for the program of quantitative easing which has matured the assets with value beyond $3 trillion. It is also aimed to keep this long term borrowing costs continued in order to support the growth of the economic structure.
In the month of February, the prices for consumer have grown by just 1.3 percent in comparison to last year, as per the measurement of inflation that has been favored by the Federal Reserve. The rise is almost 2 percent below the target of central bank when compared with the random bouts which counts for more than 10 percent hike between the time frame of 1970 and 1980s.
It is expected that the inflation will get a high in the coming days with the economic stimulus measurement helping add to almost 78 percent rise in the value of gold, when compared since the time of December 2008. The rise in dollar is less than 1 percent in one year set in the month of July with monthly hike of average 2 percent in the index of US consumer price.