Letter To My Representatives Regarding The Free Competition in Currency Act of 2011

I wrote this letter to my Representative (Rep. Jeff Flake) and Senators (John McCain and Jon Kyl), regarding the “Free Competition in Currency Act of 2011”:

It is strange in a free society that it is against the law to use anything but Federal Reserve Notes as legal tender. The current financial crisis shows how close the Federal Reserve is with the politicians and the banking community. While Americans lost their jobs and houses, politicians, the Federal Reserve, and the large banking firms rallied together to support one another, with bailouts, massive money printing, and purchasing government bonds. In doing this, insolvent banks were propped up, making tons of money for their horrible decisions, the Federal Reserve’s balance sheet expanded to unprecedented levels, passing out trillions to their foreign central banking buddies and to domestic and foreign firms, and the government passed massive legislation, expanding its size and scope becoming bigger than ever. All of this at our expense. Of course we are told this was for our own good and that we were saved from something worse, but many of us don’t believe that. When we see the government and its allies growing while the economy is contracting, it looks like it is for YOUR own good and not ours.

All of this is made possible by the U.S. Dollar’s status as the reserve currency of the world. Yet, this puts tremendous pressure on the dollar. It only lasts as long as those abroad continue to accept dollar bills. Some of our biggest purchasers of debt, especially China, have publicly discussed and taken preliminary actions to get out of the dollar. The world is losing confidence in our currency and its demand is decreasing. As that happens, it forces the Federal Reserve to print more money to pay for all the spending, which devalues the dollar. That, in turn, causes price inflation, and all of us suffer more, having to pay more for everything we buy.

I’m losing any faith in our current leaders and the system they have perpetuated. One way for the people to save our purchasing power is to use an alternative currency. Perhaps one backed by commodities, like gold or silver. Maybe something else, like bitcoins. Who knows, but the important part is, if we are truly free, living in a free country, let us freely exchange in whatever currency we so chose. Let us protect ourselves from the Fed’s destructive policies. If we’re wrong and the current Federal Reserve fiat system is as sound as they want us to believe, then competing currencies would do no harm. The current Federal Reserve Notes would out-compete all its competitors and nothing would really change. But give us the choice. Show us that you believe in free markets and let the market decide what is the most sound currency. What have you got to lose if everything you are doing really is in our best interest and this really is the best system that benefits us all?

Ron Paul has introduced H.R. 1098, the “Free Competition in Currency Act of 2011.” This bill has three purposes. According to Rep. Paul: “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.” For additional background on H.R. 1098, view Ron Paul’s 5-minute video explanation of the same bill in the last Congress, “Competing Currencies.”

Please study, cosponsor, and help pass H.R. 1098, the Free Competition in Currency Act of 2011.

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