- Mar 31, 2012
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It's five years old and ignores the fact that states cannot produce currency outside the federal reserve.
No... the article addresses both of those topics reasonably well.
Local currencies: 'In the U.S. we don't trust'
The Constitution prohibits individual states from printing and issuing paper money as legal tender, but they are allowed to use coins as currency, said Gatch. Individual communities, however, are able to create their own currencies -- including paper notes. Anyone can do it -- as long as the money is easily distinguishable from U.S. dollars and values are tied to the U.S. dollar so that income remains taxable.
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