Ron Paul's Texas Straight Talk 8/13/12: Legalize Competing Currencies!

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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 of a stretch. If any organization is guilty of counterfeiting dollars, it is the Federal Reserve. 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.

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  News & Politics

[Israel Tucker]

Ron Paul talks in Tampa at Noon at the Sun Dome August 26. Don't miss.

[Carl Drysdale]

Thank you Ron!

[val5214]

just thought it would be an interesting read

[val5214]

where can you read about these debit card linked silver accounts in mexico? i have heard of them and i saw a story 3 years ago where in a Michigan town a grocery chain was experimenting with partnering with a jewelry store that cashed in gold for customers -- customers could get store credit and or dollars based on the gold they turned in or bought . . .

[delyparker777]

Repeal legal tender laws and make gold and silver as money too. Read the book, "Web of Debt" by Ellen Brown and "How Wall Street Fleeces America" by Stephen Lendman and Bob Chapman's "The International Forecaster." Spread the word! END THE FED! SOUND MONEY FOR AMERICA!

[mbevks]

No way Romney does it, but I'd love to see him appoint Ron Paul to chairman of the Federal Reserve!

[DrPimper1232]

iran is one of 1 of 3 countries in the world without a central bank it used to be 1 of 4 but libya now has a central bank thanks to us so one might debate whether this is just a ploy to eliminate all debt free money

[DrPimper1232]

is that the level of our education in america we can't even handle some basic criticism how immature is that furthermore Ron Paul is no anti-semite most of the economists that ron paul references and has learned from are in fact jewish Ludwig Von Mises, Murray Rothbard, Walter Block, F.A. Hayek, etc..... and as for iran ron paul simply does not want to get involved because all that it will do is build up more enemies they are simply trying to sell us another war

[ciocod]

With or without Ron Paul, the new world order IS GOING to be dismantled and abolished. Right now even they are being further dismantled and should choose to go down in history remembered for doing the right thing at the last moment rather than face bars or the noose in their blind arrogance. Long live a free humanity, Viva La Resistance, Ron Paul 2012! INFOWARS.COM!

[DrPimper1232]

oh please people that disagree with ron paul's foreign policy basically want to be talked to like this: You Americans are the awesomest of the awesome and the only reason why anyone in the world might be unhappy with your government is because of your sheer awesomeness

[Sepp Lainer]

conspiracy!