Brad Miller

Ron Paul’s Stance on Fiat Currency – End the FED and allow Competing Currencies

In Advocates of Liberty, Liberty on December 23, 2011 at 1:54 am

It is an accepted fact to almost every human being on Earth that Government should provide the money of a nation. This notion has been so engrained into the brains of the masses that when anyone mentions that it should not be so he is vilified. That is because there are so many in this country and the world who have a vested interested to seeing the Federal Reserve’s printing presses continuing to print counterfiet dollars.

Ron Paul believes that privately issued currencis are a far superior product offered by the current tyrannical government monopoly enjoyed by the Federal Reserve.

Why should we leave such an important job of printing and maintaining the value of our money to the Feds? Government is the most inefficient immoral institution on Earth. Why do people so easily give up their God-given right to choose how  they want to voluntarily contract with others and  agree upon how to pay their debts? As long as both parties agree why should the Federal Government care what commodity is used to settle the debt obligation stated in a contract? Of course it’s none of their business, it’s no one’s business except the contracting parties.  Contract Law on the Books is more than sufficient to ensure payment is made according to the terms of the contract, that includes what currency is acceptable for payment by both parties.

Money is simply a medium of exchange. It is one half of every transaction we make. It is essential to an advanced economy that allows for specialization and the division of labor. An economy based upon barter could never do that. Money simplifies transactions. No one has to figure how many chickens it takes to buy a horse or how many X-boxes are needed to buy a Rolex. We don’t need price controls on our money, just like we don’t need price controls on anything else we buy.

Money is not sacrosanct and not the privilege of government. It is a tool, a commodity, just like beans or butter, or hammers. It should not be in the hands of the central planners who manipulate the value of your dollars in order to continue the profligate spending in Washington so they can continue to prop up the warfare/welfare state.

When the Federal Reserve prints trillions of new dollars and buys more of the Federal Debt to ensure the continuation of the Leviathan it destroys the current value of your dollar, raises prices and destroys your future earnings by obligating you and your children as taxpayers to repay the debt borrowed by the Federal Government. It also benefits the few while impoverishing the many. Inflation hits the economy at different times and prices rise out of proportion to wages and its the wage earners who suffer the most from it.

Ron Paul’s answer to this endless inflationary cycle is to simply to End The Fed. He does not advocate doing it overnight which I would love to see. Instead he has a much more nuanced approach. He simply wants to repeal the Legal Tender laws which force everyone in this Country to only accept Federal Reserve Notes as the only legal currency to settle debts and pay taxes. Once the Legal Tender laws are nullified private currencies will compete openly with the depreciating Federal Dollars. This will inevitably lead to the rejection of the “bad” government money and the acceptance of the “good” or “sound” private currencies.

There needs to be a free market for money just like there is for everything else you buy. Competition is the great innovator. There has not been any innovation in money since the Chinese began their inflationary schemes with the first fiat currency in the 9th century. The Federal Reserve is carrying on the tradition of all the great empires who have inflated their currencies because of out of control government spending and unfortunately this never ends well. It is not the barbarians from without that destroy the great empires it’s the barbarians within who plunder the pockets of the individual citizens by the purposeful debasement of the currency. What we need is innovation in the opposite direction. Instead of more ways to devalue a currency we need innovation to stabilize the value of currencies and even ways to increase its value over time.

Ron Paul believes correctly that sound money created on the open market can save us from the  deadly hyper inflation that will inevitably arrive due to the actions of the Fed. These privately issued currencies by entrepreneurs and capitalists will have a vested interest in maintaining and even increasing the value of their currencies or they will go out of business. The Federal Reserve by contrast has devalued the dollar by over 95% since it was created. If a private entity did this it would not be in business for long. Only because the Federal Reserve is backed by the legalized force of the Federal Government can it continue to counterfeit U.S. dollars and further destroy its value.

The Federal Reserve also manipulates the interest rates and thus further disrupts the capital markets. If you are a saver then you know that you are not earning anything on your money. This is the result of the Federal Reserve buying  the 30 yr and 10 yr Federal Government debt to help bring down borrowing costs. Which is not to benefit the mortgage seekers but the Federal Treasury. This kills the incentive to save and encourages people to spend which is part of their central plan.

The Federal Reserve is a collectivist entity. It is meant to keep inflation in check and keep full employment. They can’t do this. They try to manipulate the currency and interest rates to do this. But what are they really doing? They are purposefully trying to “influence” your actions by devaluing the dollars in your pocket. They think they know best and are trying to force you to act in a certain way. It is evil. The Federal Reserve needs to be ended. It has no place in a Free Society. Jefferson warned about a National Bank at the birth of this nation. He saw it as a threat to indivdiual liberty and his predictions have come true.

We don’t need a money “overseer”. Let the voluntary actions of individuals on the Free Market determine which money is used and the value of it.  Twelve Federal Reserve Presidents are not omnipotent. They have no super powers. They have no crystal ball. They have no right to devlue your dollar. They have no right to steal money from your pocket.

It’s time to end the Fed, end the out of control spending in Washington and return this country back to sound money. And only one candidate pledges to do this and his name is RON PAUL.

Ron Paul believes in Individual Liberty, Constitutionaly Limited Federal Government, End ing the Wars overseas, Ending the drug war at home and legalizing competing currencies to ensure inflation will be a thing for the history books.

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