This was mentioned briefly in a lengthy video I watched and the idea has at the very least floated around in New Hampshire. I will have to do some research to see if any legislation came out of it, but it basically works like so:
The idea is for New Hampshire to start small and link the tobacco tax to gold which would come into the state treasury. I don’t know if the tax would be paid to the state in gold, or if the state would convert the tax to gold, especially in the beginning. This gold would be paid out to creditors on a first come first serve basis. The gold theoretically would be gobbled up very quickly leading to pressure on the legislature to expand taxes to be paid in gold which would of course be paid to creditors. This could then lead to the state completely undermining Fed notes as the state operates ever increasingly on gold. Once the state bucks the Feds in its transactions we could also expect the trend to spread to the private sector.
It’s a theory and it would likely take a great sacrifice on part of the citizens since the Federal government would likely pull all federal funding that states have become dependent on. So I think it would likely be a real catch 22 situation. But thats the basic idea. I would like to hear your thoughts of how this could or could not work.