As the euro slowed its slide against the dollar and European equity markets rebounded slightly, spot gold price was up slightly to $1,831 per troy ounce with a nice quick rebound from the $1,800 per ounce support level. With the September FOMC meeting approaching and the Fed likely to continue its expansionary monetary policies and with President Obama’s jobs plan likely to push US debt close to the recently increased legal ceiling, gold’s prospects look bright. Gold priced in euros has also been making new highs recently, spot gold now trades at €1,340 per troy ounce, with Greek default looming, there is little to slow its rise in the immediate future.

On the legal front, there is an extremely interesting development in the US for those that see gold as money. Yesterday the US Congress held hearings on the “Free Competition in Currency Act of 2011” which would repeal legal tender laws and allow gold and silver to circulate as money in the USA, without being penalized by taxes. The video of the hearings can be found here.

Dr. Lawrence Parks, of FAME, who was interviewed by James Turk for the GoldMoney Foundation not long ago, testified on the severity of the fiat currency situation and the very real danger of a dollar collapse. Dr. Lawrence H. White, author of “Competition and Currency”, also testified. Many of the subjects discussed at these hearings will be familiar to our readers: fiat money, competing currencies, gold money, legal tender, inflation, the gold standard and full reserve banking.

Of course the political discussion is no longer academic, since a growing number of alternative currencies already exist, and history is also full of long lasting real life examples, many of which you can learn about at the GoldMoney Foundation. – Source: http://www.goldmoney.com/gold-research/gold-money-and-currency-competition-in-the-us.html