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.

  • Kyle E.

    There is a petition to Congress telling them to support Paul’s bill, HR 1098.

    Action “Tell Congress: Restore Sound Money, Repeal Legal Tender Laws”

    http://petitions.conservativeactionalerts.com/4754/tell-congress-restore-sound-money-repeal-legal-tender-laws/

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  • http://www.youtube.com/profile?user=clarkygorny clarkygorny

    The majority of the masses do not have to think for themselves. If we have enough leaders on our side the followers will begin to drift in our direction. All you have to do is talk about it, Most importantly never accept defeat. Media brainwashes people into being ignorant. Do not be fooled into believing there is nothing you can do. Now more than ever people all over the world are waking up to the truth. Be a leader be prepared for ignorant resistance and dont let it phase you.

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  • thaiblacky

    When I look around my subscriptions I am happy to see all of the people who are so supportive of Ron Paul. I however fear that the idiotic public don’t really give two shits about his message because they cannot think. If they somehow could realize that he is different, that he would actually fix the system, maybe they would vote for him. The SAD SAD truth is that the American public does not know how to think for itself, and thus is doomed to destruction. My beautiful country is fucked…

    »crosslinked«

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  • http://www.youtube.com/profile?user=Eunoterp Eunoterp

    GreatPOPMusicChannel, Just as Dr. Paul says, if you come here legally and obey the laws you’re very welcome to become an American Citizen. It’s more than that that, however, because if this country is capable of fixing itself, then we can continue to be the inspiration of all the nations of the world. If we can repair our failures and problems, we can help others. Thanks for your support and we look forward to your help!

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  • ThomYorke64

    I agree with Ron on a whole lot, but one thing: “A government monopoly on the issuance of money is purely a method of central control over the economy.”

    I don’t know that having a decentralized money system would be a good idea… if we’re spending the same dollars in all parts of the country (and world), I want to know that they’re being managed centrally.

    The problem isn’t that they’re being managed centrally. It’s that they’re being MIS-managed centrally! Ron Paul in general is genius tho

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  • sadiq

    Currency is not a commodity. The big problem in the world is because it is treated like one. If Curency is not treated as a commodity, (no need of a free market gambling or central govt controlling its value) most of the issues will be solved.

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    • Citizen

      REAL money has always been a commodity.
      Something of tangible and intrinsic value.
      Money is solid and durable!

      Fiat Paper Notes are a promise to redeem them for sound money, something of value OTHER than another note of paper

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  • Deryntia

    I think even lefties will vote for future President Paul. I’m not convinced about his alternative currency systems though, as I don’t like the idea of gold, but he’s the most sensible truth-speaking person I’ve heard in American politics.

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  • Citizen

    ALLOWING Competing Currencies as “Legal Tender”
    represents a serious threat to the FED Reserves magic money monopoly…

    If We the People were “Free to Choose” [Milton Friedman 1980]

    WE would likely unanimously choose the better money, precious metal coins over worthless paper.

    But Sound Money defeats the Government policy of
    Taxation (INFLATION) without Representation.

    Sound Money, minted precious metal coins, are currently made to international standards of purity and weight. Counterfeiting is eliminated and inflation from printing is ended.

    But the IRS would have fits tracking your tax liability… imagine
    you bought a car and paid 450 Silver Maple ounces for it!
    Or you bought a new home and paid 100 Australian Kangaroo ounces …

    That wouldn’t be fair… it would drive them freaking crazy,
    How cruel and mean spirited….
    Oh Well!

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    • Jim

      Ha. The simple solution would be to just get rid of the IRS as well. :)

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  • http://www.youtube.com/profile?user=shawondemand shawondemand

    You don’t understand what I’m saying. The people still choose who provides their healthcare, the only difference is that the money comes from a “paid into bank account”. The most significant part of the competition in healthcare is kept intact, while the abuses of insurance system is COMPLETELY removed. Insurance companies work for their shareholders, NOT the people. That is the difference, and the difference means that many people are rejected claims based on profit incentive.

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  • http://www.youtube.com/profile?user=SteveIsom Steve Isom

    Thanks for supporting SoundMoney. SCSoundMoney,com SoundMoneyCenter,com

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  • GOVSC

    Thanks for supporting SoundMoney. SCSoundMoney,com SoundMoneyCenter,com

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  • kynize

    END THE FED END THE FED END THE FED END THESE COUNTERFEITING CROOKS END ALL CENTRAL BANKING ALL OVER THE WORLD IMF WORLD BANK ETC….RON PAUL FOR PRESIDENT 2012 HE GOT MY VOTE

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  • http://www.youtube.com/profile?user=KaptKan1 KaptKan1

    If we campaign for Dr Paul we can educate an entire generation of libertarians to succeed him. Get out and campaign hard for Ron Paul and help to spread the message of Liberty!

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  • http://www.youtube.com/profile?user=KaptKan1 KaptKan1

    If we campaign for Dr Paul we can educate an entire generation of libertarians to succeed him. Get out and campaign hard for Ron Paul and help to spread the message of Liberty!

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  • PensFan35

    I really worry that people just won’t listen to this man and to me that’s such a shame not just because I feel as though hes the best qualified for the job right now but also because there will NEVER be another Ron Paul.

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  • tj

    Also, please remember, Ron Paul is not advocating using gold as our money. He is advocating allowing the FREE MARKET to decide. Someone in these posts wrote that his dad wondered if Ron Paul is for the UNIONS. I think the simple answer is that Ron Paul is in favor of nothing, nor is he against anything. This is FREEDOM.

    Now getting back to money. The free markets have chosen gold and silver. The characteristics of sound m oney are portability, divisibility, durability, and rarity. GOld and silver happen to meet these criteria. However, other things … such as furs and other animal skins and other metals … have been used as well. Whatever the free market at the time accepts as an instrument to facilitate trade…no government should interfere

    …it is about time we have a President who stands for NOTHING and for NO ONE except FREEDOM and LADY LIBERTY…

    Ron Paul 2012…you are either for FREEDOM or you are not…

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    • Libertarian777

      100% right on tj, you actually get it.

      Ron Paul is advocating that the GOVERNMENT can ONLY USE gold and silver.

      What the PEOPLE use is a separate matter. He’s wanting competing currencies, ‘we the people’ should be allowed to use whatever the hell we want (including gold and silver from foreign countries if we so chose).

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      • Sir Tokes Alot

        How about high grade marijuana used as currency?

        I know a lot of people who will gadly accept this as money!

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        • tj

          lol…well to some people, it has value, portability, divisibility,and might be rare, but it lacks the durability criteria as too many people might smoke their money away…lol

          by the way, if you have ever seen Waterworld with Kevin Costner, you see that dirt became a good money choice…unfortunately, today in the real world, our government backed paper money is only a grade above dirt…

          Ron Paul 2012…you are either for FREEDOM or you are not

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  • Eunoterp

    I’m ready to help Dr. Paul. It’s particularly encouraging when I see young people posting their support for RP’s position on the issues. That gives me hope.

    And even if Dr. Paul does not become POTUS, it’s a step in the right direction, a wake up call to Americans and the world that there are still good people out there who want the best for their fellow humans.

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  • TheSilverAgeHasCome

    Y can’t they make a paper note with a silver thread on the inside, wouldn’t that work? And it would be lighter to carey

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  • thejohnmalkovich

    ime Magazine SCAM – Romney’s poll forged in his favor!!!!!

    youtube*com/watch?­v=4smeiqenzE4

    watch?v=4smeiqenzE4

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  • homer422

    So how would we get China to stop artificially deflating their silver, since we haven’t had much luck in the department of coercing them into…well anything?

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