Ron Paul: We Need Free Competition in Currencies!

by 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.

Currency is 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.

These cases 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 incarceration.

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.

Allowing market 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.

  • BankofSpirit

    we must end the $ junkies, deviants/puppets & CORPORATE owned PEONs from being in positions of influence + rid markets of snake oil sales & salesmen & the descendents too, stop worship of celebs & we must stop paying 2b amused. US-$ can be for a disneyland state, wash dc, make it an amusement park so present/retired politicians/pub. servants can have fiat based work, we’ll build a new shared wealth/nation. in DC would be fiat-$ only so those who venture in can buy fiat/fast food & pay 2b amused.

  • FictionCautious

    We need a better system that really is progressive and pro-humanity, not pro-profit. The financial-corruption based one has proven faulty and downright inhuman. Can’t you people see that it turns us into destroyers instead of creators, in aggressors instead of peace-makers? What more proof does one need? Another mass genocide maybe? That has already started!

  • Libertarian777

    Wish everyone would understand this! A gold standard itself will not solve our issues. We need to legalize competing currencies, so we can use Canadian, Chinese, Mexican, Spanish etc gold coins as wells.

  • JGH8sDaDebunkerz

    People complain but What makes Ron Paul different from all the others is he’s going to actually follow threw with what he says. My dad asked me Is Ron Paul for the Unions? I told him Ron Paul is for a war-less free trading free society which over all will make everything better. As we’ve seen from our history when there’s freedom you’ll experience a BOOM of wealth. Then I pointed out to my dad that Obama was for Unions hahaha Hows that working out? 400 guys laid off from his local Vote4Freedom

  • JGH8sDaDebunkerz

    He wants there to be more than 2 options for healthcare, 2 delis in a town they control the price If you have 10 there’s competition for the customers its better than Obama Care.The private sector is profit driven & there is nothing wrong w this, The more competitive the lower the price gets. That’s why cell phones TVs computers are cheaper & better every year. Almost anyone can afford such a device, thanks to non-interfering government. Our healthcare systems lack competition & are monopolistic

  • George Washington
  • shawondemand

    Only thing I don’t like is Ron Paul’s policy on government run insurance on healthcare, where the CEO’s of the companies are there for the profit incentive and to give out as little money as possible. This doesn’t have anything to do with competition because every single company is there to make a profit, which doesn’t help ANY consumer.
    Watch:Rep. Anthony Weiner (D-NY) Debates Dr. Betsy McCaughey over Health Care Reform.
    That’s a huge selling point Ron Paul, A HUGE ONE.

  • Kousaburo

    Ron Paul or it’s the end for America.

  • rumpelstillskin65

    Where is Obama’s birth certificate

    • Stupid People Suck

      Try searching up your butt!

      Really, who cares about Barack Obama’s birth certificate?

      This was so an issue 20 years ago when he first ran for public office. Moot point today, waste of breath for all except dumb people who are powerless to argue relevant facts and issues, which are more than enough to defeat this clown.

      Then again, the Republicans can blow it an nominate a bigger loser than Obama, like Sarah Palin or Michelle Bachmann. Holy dumber than a rock, or indecisive as a roulette wheel, Batman.

      We need Ron Paul to defeat Barack Obama, not another change we can believe in!

  • i8uNWO

    Barack Obama’s birth certificate??? put the heat on!

  • chris734c

    Go Ron!

  • ThePelicans44

    Currency Manipulation by the government does not work, is unstable and not right by the people!

  • biozamadotcom

    all currencies crashing now,

  • OldSkaterGuy

    Ron is a bad ass! Too bad his videos have so few views. Looks like even tho the economy is in the crapper people just don’t care enough to actually dig and see what is going on behind closed doors and see where all our taxes are going. Ron would open those doors, looks like they are destined to stay closed. pity

    one more thing, Why is our defense budget for 2012 600billion when the next highest is only 95 billion? Our military is big but not that big.. where is all that god damned money???

  • Aristilus

    The UK should abandon the so called “special relationship” with the present US government and establish a “special relationship” with Ron Paul and his election team.

  • OutlaYa

    Ron Paul….will become the REAL 44th President of the United States of America in 2012!!

  • JosephLoegering

    They don’t want to cut Military Complex Spending, or Media Propaganda Spending, because they want to hide that they stole our name Israel, & named it upon Antichrists that cast us out, & set us up to be captured & harmed & or murdered without Just Cause, & we can gt no Redress of our Just Grievances because the Antichrists that falsely call the themselves Jews or Christan or Muslims, & are trying to hide that are trying murder us, run the Government & the Media kingofisrael.blogspotDOTcom

  • katsfanman

    I just told a banker on the phone he better L00K for a JOB! and L00k up Ron Paul !

  • theavailablenamessuk

    So them traitors on wall street can bet against them? Maybe it might be better to have one currency, that way it can’t bet against it anymore.

  • flonga2302