Liberty Matters

Competition in currency should be demanded by all. The FED currently holds a monopoly on our currency which means that they are not kept in check by the populace. Inflation is the result. But, what can we do about it? We can start by listening to Dr. Paul.

Madame Speaker, I rise to introduce the Free Competition in Currency Act. This act would eliminate two sections of US Code that, although ostensibly intended to punish counterfeiters, have instead been used by the government to shut down private mints. As anti-counterfeiting measures, these sections are superfluous, as 18 USC 485, 490, and 491 already grant sufficient authority to punish counterfeiters.More…

The two sections this bill repeals, 18 USC 486 and 489, are so broadly written as to effectively restrict any form of private coinage from competing with the products of the United States Mint. Allowing such statutes to remain in force as a catch-all provision merely encourages prosecutorial abuse. One particular egregious recent example is that of the Liberty Dollar, in which federal agents seized millions of dollars worth of private currency held by a private mint on behalf of thousands of people across the country.

Due to nearly a century of inflationary monetary policy on the part of the Federal Reserve, the US dollar stands at historically low levels. Investors around the world are shunning the dollar, and millions of Americans see their salaries, savings accounts, and pensions eroded away by rising inflation. We stand on the precipice of an unprecedented monetary collapse, and as a result many people have begun to look for alternatives to the dollar.

As a proponent of competition in currencies, I believe that the American people should be free to choose the type of currency they prefer to use. The ability of consumers to adopt alternative currencies can help to keep the government and the Federal Reserve honest, as the threat that further inflation will cause more and more people to opt out of using the dollar may restrain the government from debasing the currency. As monopolists, however, the Federal Reserve and the Mint fear competition, and would rather force competitors out using the federal court system and the threat of asset forfeiture than compete in the market.

A free society should shun this type of strong-arm action, and the Free Competition in Currency Act would take the necessary first steps to freeing the market for competing currencies. I urge my colleagues to support this bill.

by Ron Paul, Dr. December 13, 2007

Personally, it is a fantastic idea, I think. It doesn’t mean that the Fed will be put out of business. What it means is that they had better start working for the people instead of for themselves, to the extent that the populace is willing to accept it. As long as they aren’t allowing runaway inflation, as they have been doing over the years, they should be golden.

What most of the general population fails to realize is that inflation is the cause of having too much money in circulation. This happens because the government has come to view the FED as their personal money printing supply house. When Congress wants to increase spending of some sort and doesn’t want to impose immediate taxes to do it, they get the FED to print up more money. Unfortunately, the more dollar bills that are out there, in circulation, the less valuable each one of those dollar bills is worth. At a time when our dollar is near, or at, all-time highs versus the Euro and the Great British Pound it has become increasingly important for us, as the populace of this great country, to stand up against the government’s money printing free-for-all.

The result of this excess printing of money is that the government is effectively taxing, not only our children, but our grandchildren. What do I mean? Simply, they will be paying higher prices for necessities, not because the cost of producing them is going up, but because the value of their money is going down. Once again, the more money that is in circulation the less valuable it is. The less valuable it is the more money it will cost to purchase items one needs or wants. So, step up and don’t be afraid to say no to our government when they ask for your blessing to spend more money. Make them work with what they have. Make them become more efficient and innovative. Remember, government is beholden to the people who allow its existence. That is you and me.