Introducing the Texas Dollar?

More and more states introduce some form of 10th Amendment Bill. They are basically telling the federal government to back down. On the other hand those same states are willing to receive (stimulus) money. You might argue that money was taking from their citizens and they want to get as much back as they can.

But it got me wondering.

Is it possible (legal) for a state to introduce their own currency. I think the state that does, and makes sure the money is backed by gold/silver will benefit tremendously.

Lets say a Texas Dollar (TXD). Texans exchange their USD for TXD. The state uses those USD to buy silver and gold. Texas would then not be affected by the defaluation of the USD. People from all over the US would want some of those TXDs, they would pay the state of Texas in USD, and the state will then buy Gold and Silver using those USD. That would allow the state to issue more TXD.

If the state needs to pay for something in USD they simple exchange some TXD for USD according to the current rate.

What are your thoughts about this? Would it be possible?

Right off the bat what comes to mind is how difficult it would be to do international trade with a new currency. Plus we don't want to separate ourselvs from our family of United States, we just don't want an oppressive govt. meddeing in state business.

-E-

reply to post by FreezeM
Not sure about this, but I am PRETTY sure that the right to print money (or coin money) is reserved to the federal government. But, Damned if I wouldn't like to see it tested. I would really like to see it tested by Texas or Alaska.
There will be hell to pay, but it just might be worth the price!

#1 - in order to have a currency w/ value, the state of texas would have to have a store of gold that backs its value

#2 - the power to coin money is reserved to CONGRESS, but they don't do it anyways. the federal reserve does; shouldn't you guys know this?

thats the way it used to be here... look it up

www.frbsf.org...

it got to be a huge hassle exchanging money and was canned for a simple money that worked everywhere

According to the Constitution. A state may have it's own money, but it can only be made of Silver or Gold. Good luck making that work, let alone finding any.

Originally posted by MysterE
Right off the bat what comes to mind is how difficult it would be to do international trade with a new currency. Plus we don't want to separate ourselvs from our family of United States, we just don't want an oppressive govt. meddeing in state business.

-E-

Isn't Texas' economy the 12th largest in the world or something? I don't see how internationally it wouldn't be accepted. Other than maybe for political reasons ie not to offend the federal Government.

I agree with not wanting to separate but what if the federal government becomes more oppressive instead of less as a reaction to all the 10th amendment bills.

As a Texan, born and bred, I recognize that Texas, macho, swagger, tough guy attitude. It's all just bluster and BS. Means nothing.

www.chron.com...

Texans want their federal aid and won't do anything to jepordize it like printing their own money. Perhaps they will print up some oversized money with Kinky Friedman's or Willie's picture on it, proclaiming it legal tender in Texas, but that will just be for the tourists.