NE2: Sound Money Act (Failed)

[Napoleon]

There's no way I am supporting this, sorry. This is an economic disaster if passed.

[Napoleon]

I'm not sure that the bill, particularly section 3, is even constitutional.

Article I, Section 7, Clause 2 of the Third Atlasian Constitution states:

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Section 3 of the proposed Sound Money Act arguably makes commodities and substances legal tender currency for payment of Northeast government debts.  It depends on how you define "currency" and "legal tender", but an argument can be made that allowing someone to use something other than Atlasian Dollars to pay a regional government debt is the creation of a legal tender currency for all debts of the Northeast government.  The counterargument is that although we are allowing the debt to be paid in something other than the Atlasian dollar, the amount of the other thing to pay the debt is pegged to the dollar, but I wouldn't want to chance a lawsuit that we'd probably lose.  

The Southeast lost a lawsuit back in 2009 when they tried to issue their own "dixie" currency pegged to gold.  That case was under the Second Atlasian Constitution, but I think the relevant provisions are identical.

That's funny. The IDS lost a lawsuit based on a currency known as the Dibble right around the time I became President.

[Napoleon]

Ah.. that clause is unfortunate. Cinyc, do you think it would be constitutional to accept alternative forms of payment as valid for interest on government loans and taxes?

Why would that be necessary? The more desirable outcome would be for those people to trade their goods for fair market value and pay the interest with cash.

[Napoleon]

Didn't the price of gold crash last year? Shouldn't we consider backing our currency with something more dependable? Say, beryllium?

I don't know if it did or not, JJ stopped posting.

[Napoleon]

Nay

Simfan, your trolling still sucks.