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Thursday, March 17, 2011

Ron Paul proposes 'currency competition' in bid to end federal monopoly on money

Rep. Ron Paul (R-Texas) on Tuesday said he would soon introduce the Free Competition in Currency Act, which would dismantle what he described as the federal government's self-proclaimed monopoly on legal tender in the U.S. and allow states and private enterprises to issue their own currency.

Paul made it clear that his intention is to end the ability of the federal government to control the supply of money and spend it as it sees fit, including on wars that Paul has consistently opposed.

"The prospect of American citizens turning away from the dollar toward alternate currencies will provide the necessary impetus to the U.S. government to regain control of the dollar and halt its downward spiral," he said. "Restoring soundness to the dollar will remove the government's ability and incentive to inflate the currency, and keep us from launching unconstitutional wars that burden our economy to excess."

Paul said there are three steps needed to promote currency competition within the U.S. (which are presumably required in his bill, although it had not been released as of Wednesday morning).

First, Paul said, legal tender laws need to be repealed. He said under current law, the federal government "purports to establish U.S. coins and currency, including Federal Reserve notes, as legal tender," even though the Constitution does not allow the government to declare a legal tender.

Second, he said, Congress must repeal laws that prohibit private mints, and third, federal laws imposing capital gains and sales taxes on gold and silver coins must be terminated.

Continue reading - Ron Paul proposes 'currency competition' in bid to end federal monopoly on money

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