Ron Paul: Legalize Competing Currencies

by Ron Paul

I recently held a hearing in my congressional subcommittee on the subject of competing currencies. This is an issue of enormous importance, but unfortunately few Americans understand how the Federal Reserve and Treasury Department impose a strict monopoly on money in America.

This monopoly is maintained using federal counterfeiting laws, which is a bit rich. If any organization is guilty of counterfeiting dollars, it is our own Treasury. But those who dare to challenge federal legal tender laws by circulating competing currencies — at least physical currencies — risk going to prison.

Like all government created monopolies, the federal monopoly on money results in substandard product in the form of our ever-depreciating dollars.

Yet governments have always sought to monopolize the issuance of money, either directly or through the creation of central banks. The expanding role of the Federal Reserve in the 20th century enabled our federal government to grow wildly larger than would have been possible otherwise. Our Fed, like all central banks, encourages deficits by effectively monetizing Treasury debt. But the price we pay is the terrible and ongoing debasement of our money.

Allowing individuals and business to use alternate currencies, especially currencies backed by gold and silver, would expose the whole rotten system because the marketplace would prefer such alternate currencies unless and until the Fed suddenly imposed radical discipline on its dollar inflation.

Sadly, Americans are far less free than many others around the world when it comes to protecting themselves against the rapidly depreciating US dollar. Mexican workers can set up accounts denominated in ounces of silver and take tax-free delivery of that silver whenever they want. In Singapore and other Asian countries, individuals can set up bank accounts denominated in gold and silver. Debit cards can be linked to gold and silver accounts so that customers can use gold and silver to make point of sale transactions, a service which is only available to non-Americans.

The obvious solution is to legalize monetary freedom and allow the circulation of parallel and competing currencies. There is no reason why Americans should not be able to transact, save, and invest using the currency of their choosing. They should be free to use gold, silver, or other currencies with no legal restrictions or punitive taxation standing in the way. Restoring the monetary system envisioned by the Constitution is the only way to ensure the economic security of the American people.

After all, if our monetary system is fundamentally sound– and the Federal Reserve indeed stabilizes the dollar as its apologists claim–then why fear competition? Why do we accept that centralized, monopoly control over our money is compatible with a supposedly free-market economy? In a free market, the government’s fiat dollar should compete with alternate currencies for the benefit of American consumers, savers, and investors.

As Austrian economist Ludwig von Mises explained, sound money is an instrument that protects our civil liberties against despotic government. Our current monetary system is indeed despotic, and the surest way to correct things simply is to legalize competing currencies.

  • Surfisher

    Ben Swann’s Reality Check: “Obama Administration Refuses To Tell Judge If NDAA is Being Illegally Enforced?”

    (in simpler words — Little Hussein wants to be our Dictator again)


  • robin

    Ben Swann’s Reality Check last night although I haven’t had a chance to watch it yet. He’s right on top of things…

    • Surfisher

      robin — thanks for posting this!

      Spreading it now!

  • hookagold
  • French Canadian

    Very, very interesting debate between Tarpley and Jones. Interesting till the last minute of the interview. Very thought provoking! At the end, Tarpley really goes after Romney and the Mormons.

    Infowars Nightly News: Tuesday (8-14-12) Webster Tarpley

  • French Canadian

    FANTASTIC interview today with Lew Rockwell.

    He speaks about: Obama, Romney (who he thinks is much worse than Obama), Paul Ryan, Ron Paul, the economy, the financial collapse, the Drug war, Al Qaeda, CIA, Guns, neo-cons, empires, false flags, governments, buraucraties…. the whole shebang!

    MUST listen:

    The interview starts at 02:10:59 (just advance the cursor to that time)

    Video Update: Lew Rockwell on Alex Jones 8-14-12


    Now, I’m going to listen to the Infowars Nightly News, Webster Tarpley is the guest. If it is good, I will post it here later.


  • hookagold

    Get ready for Tampa, Ron Paul is going to ROCK THE WORLD!

  • French Canadian


    This is a powerful video you just posted.

    I do not think this lawyer is trying to make a name for himself. He is an activist. And he did a great job in this video to wake-up people.

    Alex Jones always tell his Infowarriors to not thank him for what he is doing, but to go out and do it themselves. He says, start a blog, or post a youtube video about things you know, write an article, paste some posters, organize a protest, call your congressman, call in talk show, etc.

    This guy is a patriot activist who decided to do something on his own and not wait on someone else to do it. Bravo!

    Here is the video link again:


  • French Canadian

    Amazing similarities in this article, MUST read:

    Rome Burned, Will We?

  • JOHN

    and see why RP is barking up the wrong tree with this focus.

  • robin

    Any thoughts on this guy-that lawyer Gilbert who did such a sloppy job preparing his defendants court case. Is he trying to make a name for himself?
    Care to respond on what you think will happen with the illegal campaign contributions=the only candidate who has done this from foreign citizens. A felony, but will people continue to look the other way on this.

  • dougalas

    People talk about printing money out of thin air. People talk about silver and gold. People talk about Monetary Policy. However, I still do not hear people talk about how money works and what makes it work.

    This process of medium of exchange is not new to Humanity or ancient civilizations. Mediums of exchange have taken many forms over the tens of thousands of years. In the end, all mediums of exchange that become tangible represent the EFFORT and LABOR of the People whether it is mental or physical (tangible assets).

    When the Federal Reserve Issues new currency into circulation through private banks, it is all about leveraging the issuance upon tangible assets already in existence. When the US Government loans new currency from the Federal Reserve it is all about the tangible leverage of taxation.

    All we the people need to do is establish a constitutional system of exchange that represents the peoples Effort and Labor. The US Constitution allows for this to happen. However, it is not in the medium that is most important, it is the ‘contract of issuance’ that can properly supply the needs of an expanding economy though proper representation. With proper representation only the amount necessary to expand the economy is issued and the people enjoy consistently high purchasing power and a debtless system. Expanding the economy by leveraging (or worst ‘fractional reserving’) tangible assets that are already in existence is economic slavery. Have some faith is the new generation for God sake!

    So, the obvious fact before US all now is that the greedy freaks who call themselves Private Central Bankers have created a self destructing global economy of chaos all in the name of the more debt they create the more profit they enjoy without doing any Effort or Labor. Slave drivers who are violent and satanic in their effort to stay in power before their ludicrous system completely self destructs. Thus, these diabolical creatures create conflicts in order to perpetuate and exasperate debt, for example, Communism, the cold war, the space race, the war on terrorism, and so on. This is even true when they desire to take over a Nation that is free from their greedy evil hands.

    Today the flabbergasted puppet of the private global central bankers (Obama) reaffirmed sanctions against a Nation accused of things that even our own US Military Officials say is false and fabricated. Obama is a Dictator for the Global Cult of Ludicrous Monetary Freaks.

    • Citizen


      You say “proper representation”

      As if our political systems has any semblance to that loafty idea.

      Government “monetary policy” only serves the interest of the Elite Banksters.
      The FED Reserve act of 1913 GAVE the Banksters full financial control to FLEECE the American Sheeple.

      This is not “money”, rathers its a “money laundering system”, tazation with out representation.

      Money is ANYTHING that people Freely choose to use for the purposes of exchange and a store of value, intrinsic value.

  • French Canadian

    Not only are the federal reserve notes monopoly money, but the IRS is also a fraud.

    Tonight I listened to an interview with a very courageous woman, named Sherry Peel Jackson. She did 3 years of jail time for exposing the IRS fraud,

    “Sherry Peel Jackson, the former IRS agent who was imprisoned for the crime of not filing federal income tax forms after she questioned in 2001 if she had to pay the government. Ron Paul became involved in her case after it was reported that Peel Jackson was not receiving proper medical care in prison. Earlier this month, she completed her probation and is now free of the federal government’s industrial-prison complex.”

    At the beginning of the Show, Alex decided to take calls only from Police and active military to comment on the fact that the government was buying millions of amos for the coming collapse and the civil unrest that would result. It was so sad to hear these people thanking Alex for their awakening. Imagine Sheriffs, polices and Military people were all brainwashed by the propaganda of the shadow government for so many years before listening to the show.

    The interview starts at 1:43:45

    Alex Jones Show: Monday (8-13-12) Sherry Peel Jackson

  • Surfisher

    Which US bills would you prefer to be paid with and have?

    A) This one ( that states the following from top to bottom:






    B) Or this one — look at ANY in your wallet now:

    Federal Reserve NOTE

    United States Federal Reserve System (in a Circle Emblem on the left) and: The United States Of America (on the left)


    Do the Feds think us this dumb — that we cannot tell the difference by just reading the bills — that the original US Dollars gave us valid EQUITY, while their new “dollar” notes give US empty NOTHINGNESS!

  • Citizen

    WE WISH!

    But it ain’t ever gonna happen….

    The USD collapse is on schedule and per plan, is destined to make

    US all financial Slaves to the all powerful State.

    I love it when a plan comes together…. NOT!

  • Surfisher

    2 weeks to go to Freedom — or Doomsday!

    Government is an ever growing Parasite — Unchecked it will eventually engulf the Host it feeds on (We The People), until it sucks US dry. At which point it will HAVE to Collapse, since the feeding is over once the people have been bled to death.

    Unfortunately Parasites have no brains — so cannot foresee their own Demise once they end us.

    Ron Paul to WIN — Or America to END 2012
    (there are no other options!)

    • Surfisher

      Why is Ron Paul the Greatest American of the 21st Century — because he never compromises principles for expediency!

      Live FREE — or die as Slaves (it’s our choice, America)!


      To Compromise is the Negotiation of a True Principle to be REPLACED by a Lesser One! Thereby, by continuous Compromises (the non-stop replacement of “newer weaker” principles) ALL principles eventually will disappear— and NONE WILL BE LEFT — Logic!

  • Surfisher

    Patrick —

    Ron Paul is about to Check Mate the Feds Banksters!

    Precious metal prices do not fluctuate (since they have stable intrinsic worth — being nearly ALL extracted from our planet (thus of a FINITE QUANTITY)).

    It is paper notes (touted as real money —that can be man-made in many duplicates— from nearly inexhaustible tree fiber) that fluctuate according to their perceived value compared to the ABSOLUTE Stability of Silver and Gold .

    Unless such “paper money” is backed by a specific Weight Unit of Silver or Gold REPLACEMENT Upon Demand by the Bearer — its value HAS NO MERIT , but is only an indication of the trustworthiness of the ones printing such paper notes.

    It is up to the people to decide if they should believe what their government says how much their paper notes are worth — or, if the people want their paper money to have a Guarantee that translates into exact exchange of paper to fixed weights of precious metals.

    The crux is — governments, therefore, cannot print MORE money than have in Silver and Gold reserves on hand (or it would be Counterfeit)!

  • French Canadian


    I believe you have too much faith in the US dollar. Maybe you should take a look at this yesteray interview with Max Keiser:

    Just advance the cursor at 0:25:00
    The interview starts with a Ron Paul video first.

    The Alex Jones Show 2012-08-12 Sunday – Max Keiser

  • Patrick

    I think you are spot on when it comes to currency inflation. But I guess going to gold back currency will not help as long as gold prices keep fluctuating. That is based on demand for it internationally which is not stable.

    Curreny is just a trust we place on the provider that he will honor it. As long as world keeps trusting US then there is no problem with US dollar. But once the world realizes the US dollar cannot be trusted – then all hell will break loose.

    Case in point – Asian currencies such as pakistan or indian rupee continuous to go down against dollar. So it looks like everyone trusts US more than any emerging asian countries.

    • Citizen


      All currencies trade “relative” to the USD, they are ALL inflating to suit the thieving interests of their respective States, fleecing their “subjects” aka Sheeple

      The ONLY purpose of ANY Central Fiat Currency Bank is to create money out of thin air for the express benefit of the Political Elites.

      As for “trust”…. there IS a relative trust and honor among thieves , they cover their respective asses and give lip service in pretense to caring about the common proletariat masses, which they could Care Less about.

      Stability of metals or any other commodity is subject to normal free market supply/demand.
      Gold or Silver currency are no different, but when government treasuries MINT them, they are creating them with metals with intrinsic value, not bogus paper and ink.

  • Surfisher

    Spot on!

    Remember REAL US Dollars — not the FAKE Federal Reserve NOTES (promising nothing of intrinsic value) being falsely copied now-days …as “real” dollars?

    It was a binding contract between the US Treasury and the American Citizen — that upon DEMAND, paper money would be exchanged for REAL SILVER (or Gold) by ANY US Bank!

    Our original Us Constitution pegged a US Dollar at about 0.75 oz of Silver— and about 0.90 oz of Gold for 20 US Dollars, later on.

    Let’s get back to Silver Certificates and Gold Certificates that GUARANTEE our US Dollars Immutable WORTH (that was proscribed in our Original Constitution — and not have phoney paper notes telling us: “Sure, these are dollars…”)!

  • French Canadian

    As usual, Ron Paul is dead right on this issue.

    But don’t dream, they will never give you the permission to use competing currencies.
    NO, they much rather prefer to crash the economy, which was their goal to start with. They need to bankrupt everyone so they can install their NWO.

    This is their blue-print: Create the problem and bringning the solution.
    They know the collapse is eminent and coming sooner than you think. People who listened to Max Keiser interview yesterday on the Alex Jones Show, know this and know what to expect.

    Meanwhile, the Banksters are panicking but still, they are getting ready for civil unrest.

    DHS To Purchase Another 750 Million Rounds Of Ammo


    Second massive ammunition buy this year fuels fears of civil unrest

    “Fears that federal authorities are preparing for mass civil unrest have increased after it was revealed that the Department of Homeland Security is planning to buy a further 750 million rounds of ammo in addition to the 450 million rounds of hollow point bullets already purchased earlier this year.

    A solicitation originally issued by the DHS in April but updated on Friday calls on suppliers to provide a plethora of different types of ammunition, including 357 mag rounds that are able to penetrate walls.

    The PDF file for the solicitation lists the different units of ammo required by the thousand, with the total ammo purchase exceeding 750 million rounds.”