Competing Currencies a Defense Against Profligate Government
by Ron Paul: TSA
Abuses and Failures
to Ron Paul.
The end of
June marked what is hopefully the end of the Federal Reserve's policy
of quantitative easing. For months the Fed has purchased hundreds
of billions of dollars of Treasury debt, enabling the government
to fund its profligate deficit spending, push the national debt
to its limit, and further devalue the dollar. Confidence in the
dollar is plummeting, confidence in the euro has been shattered
by the European bond crisis, and beleaguered consumers and investors
are slowly but surely awakening to the fact that government-issued
currencies do not hold their value.
sound only when it is recognized and accepted as such by individuals,
through the actions of the market, without coercion. Throughout
history, gold and silver have been the two commodities that have
most fully satisfied the requirements of sound money. This is why
people around the world are flocking once again to gold and silver
as a store of value to replace their rapidly depreciating paper
currencies. Even central banks have come to their senses and have
begun to stock up on gold once again.
But in our
country today, attempting to use gold and silver as money is severely
punished, regardless of the fact that it is the only constitutionally-allowed
legal tender! In one recent instance, entrepreneurs who attempted
to create their own gold and silver currency were convicted by the
federal government of "counterfeiting". Also, consider
another case of an individual who was convicted of tax evasion for
paying his employees with silver and gold coins rather than fiat
paper dollars. The federal government acknowledges that such coins
are legal tender at their face value, as they were issued by the
U.S. government. But when it comes to income taxes owed by the employees
who received them, the IRS suddenly deems the coins to be worth
their full market value as precious metals.
highlight the fact that a government monopoly on the issuance of
money is purely a method of central control over the economy. If
you can be forced to accept the government's increasingly devalued
dollar, there is no limit to how far the government will go to debauch
the currency. Anyone who attempts to create a market based currency
meaning a currency with real value as determined by markets
threatens to embarrass the federal government and expose
the folly of our fiat monetary system. So the government destroys
competition through its usual tools of arrest, confiscation, and
This is why
I have taken steps to restore the constitutional monetary system
envisioned and practiced by our Founding Fathers. I recently introduced
HR 1098, the Free Competition in Currency Act. This bill eliminates
three of the major obstacles to the circulation of sound money:
federal legal tender laws that force acceptance of Federal Reserve
Notes; "counterfeiting" laws that serve no purpose other
than to ban the creation of private commodity currencies; and tax
laws that penalize the use of gold and silver coins as money. During
this Congress I hope to hold hearings on this bill in order to highlight
the importance of returning to a sound monetary system.
participants to choose a sound currency will ensure that individuals'
needs are met, rather than the needs of the government. Restoring
sound money will restrict the ability of the government to reduce
the citizenry's purchasing power and burden future generations with
debt. Unlike the current system which benefits the Fed and its banking
cartel, all Americans are better off with a sound currency.
the Ron Paul File
Paul is a Republican member of Congress from Texas.
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