Securing Our Money Through Currency Competition

gold_and_silver_legal_tenderBy Jp Cortez

Competition is a good thing.

It brings out the best in athletes. It brings out the best in students. It brings out the best in companies.

Since monopolies remove the positive effects of competition, however, it makes sense to reexamine one of the most detrimental monopolies that ever existed.

Most folks would probably agree that government-run monopolies like the United States Postal Service and the Department of Motor Vehicles do a lousy job of serving the public, so why should we give bureaucrats a monopoly over our money as well?

It wasn’t always this way in America. And a few states are finally taking steps toward breaking the money monopoly that’s developed, thereby fostering viable alternatives to the U.S. dollar.

Arizona Taking Steps to Allow Freer Money

Earlier this month, an Arizona House Rules Committee voted unanimously to pass a bill succinctly titled “Legal Tender; Taxation; Regulation.” (Senate Bill 1141). It allows for the use of gold and silver as legal tender. As defined by the bill, “’Legal Tender’ means a medium of exchange, including coins with precious metal content, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.”

This bill serves a number of purposes. But the first is the most fundamental.

According to Article I Section 10 Clause 1, of the U.S. Constitution, the passage of this bill would be a step toward being within what is constitutionally permitted with respect to money. This clause reads, “No state shall… make anything but gold and silver coin a tender in payment of debts…” The framers, by design, made sure not to include a fiat money backed by the so-called “full faith and credit of the United States” in their list of permissible tenders.

The second function of this bill is to remove the sales tax on transactions where one is purchasing gold or silver and transactions where gold or silver is being used as currency. This diabolical form of tax collection, where state governments are doing the equivalent of charging you a tax for breaking a $5 bill into five $1 bills, is one of the most shameless pillaging instruments that the government has to punish holders of our constitutional money.

The third benefit from the eventual passage of this Arizona bill would be the most long-term effect: allowing gold and silver to be used as currency would open the door for competing currencies.

The stranglehold held by the monetary central planners would loosen as they watch their currency suffer a setback at the hands of the free market. Given a choice, a large number of citizens may well opt against using unbacked Federal Reserve notes, because they can be printed ad infinitum and have lost more than 97% of their purchasing power in the past 100 years.

Other States Are Also Bucking the Money Monopoly

The Arizona bill is important, but it’s not unprecedented. Louisiana, Utah, Texas, and other states have also begun to rediscover the importance of gold and silver, and they’ve recently made steps down similar paths.

Allowing individuals and business to use alternate currencies, especially currencies backed by gold and silver, would expose the whole rotten system…

But so much more needs to be done at the state and federal level. And if the U.S. dollar system continues to wobble, time could be getting short.

Competition in the market brings to the forefront the highest quality good at the lowest possible price. It wrings out excesses and imposes accountability. Through this system, the double coincidence of wants is satisfied, and all actors in the market are made better off. But when rules are imposed that only allow for only one good or service provider to exist, the system falters – and abuses mount.

Ron Paul once said “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.”

He may be onto something.

Image Credit

Jp Cortez is Assistant Director of the Sound Money Defense League, an organization which is working to bring back gold and silver as America’s constitutional money.

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10 Comments on "Securing Our Money Through Currency Competition"

  1. “….Federal Reserve notes….. can be printed ad infinitum and have lost more than 97% of their purchasing power….”

    That’s because TOO MUCH WAS PRINTED.
    It’s NOT because fiat currency is “bad”.
    It’s because criminals got a MONOPOLY on printing !!!
    And the did print…… a lot. (Ever heard of the fractional reserve system ?)

    Gold and Silver is a BAD solution for money.
    Banksters would LOVE those metals because they can easily monopolize them.

    • Great points, Croco. Too much was deliberately printed to bring the fiat house of cards down to set the stage for what comes next. TPTB intend to control the world’s resources – including Au & Ag.

  2. On a Federal level, they aren’t going to be happy when these states establish this new currency. The US is already pissed that the BRICS countries are now using the new China reserve currency to do business with each other (as well as Singapore and Japan)…cutting the US out of those transactions. Our government’s over-inflated ego is suffering:)
    I hope these states accomplish this goal and that it spreads across the US, effectively burying the Federal Reserve, who are private banksters ripping us off since 1913.

    • The US elites are controlled by the Bank of International Settlement (BIS = Rothschilds), UN World Bank, and IMF cabal – the same cabal who fund and manage BRICS central banking. There’s plenty of evidence both the west and the east kowtow to the same international banksters.

      • You are absolutely correct, Blue! The Rothschild (formerly Bauer) banking family are the capstone of the pyramid. Nathan Meyer Bauer back around 1774 started that banking cabal ball rolling. Russia and China are two of the countries of BRICS that have gold backing their currency. Russia has more gold than printed paper they currently have floating out there, so their currency is VERY secure. My comment was to applaud those US states doing what they can to legalize gold and silver for currency so they can send the Rothschild/Rockefeller/Warburg families packing.

        • I understand, WomanPatriot, I want those dynasties to be sent packing too! However, gold backing of a fiat (which can be defined in several ways) does not guarantee sound money or freedom. What is most important is the people have a tight grip on the issuance of their currency. Allowing alternative forms of payment through precious metals and local currencies or a Liberty Dollar type of system are great ways to add diversity. Please take a look at an excellent Activist Post article from 7/30/15: Masters Of Metal: China, The Rothschild Fix, And The “New World Currency” and then it might be clearer as to what could be going on with states being allowed to pursue legislation legalizing financial transactions in precious metals. It sounds like the public is being mentally prepared into accepting a gold backed global digital currency controlled by the global elite. That would also explain why the mainstream media was allowing favorable coverage of Bitcoin, to slip in a positive meme of going all digital. If there was any chance of undermining TPTB’s monetary system then a ton of bricks would fall on these alternatives like von NotHaus and his Liberty Dollar. Unfortunately, most people aren’t as savvy as you are! Here’s the Masters of Metal link if you’re interested: Cheers!

          • WomanPatriot | April 30, 2016 at 3:16 pm |

            Thank you so much for the link, Blue:) I will certainly read it, although I’m sure I have already read it, as I am an avid reader of Activistpost.
            I should have been clearer in my wish for gold-backed currency. I was referring to “physical” gold coins/silver coins, not digital, or paper backed by those precious metals.
            As for Bitcoin, my caution from the beginning was that it was digital and there are dangers inherent in that. My suspicions about Bitcoin was warranted when a Bitcoin company a few years ago, absconded with other’s Bitcoin investments. One click with the company’s computers and the link to his site was gone…taking with it the entire Bitcoin inventory. I feel the same about online banking. One “glitch” in the system and your entire account can disappear…unintentionally of course…:::cough:::
            As for the “New World” currency, any astute individual knows it will be controlled by the same elite private banking cartel we have controlling the Federal Reserve.
            It is my belief we will very soon be forced into digital currency anyway, a cashless society. No paycheck…our earnings are automatically deposited in our checking accounts (as they are already done now) but we will not be allowed to withdraw any cash for any reason. We will be issued with a bank card that we will present for every purchase and if we sell anything, the buyer’s card will be presented and our account will be automatically infused with those funds. We will no longer be allowed to have cash. ALL of our spending & buying will be monitored by the banksters. No more anonymity with cash purchases.
            My best wishes to you, Blue:)

          • Thanks, same to you!

          • WomanPatriot | April 30, 2016 at 3:52 pm |

            As an added note, Blue, when I say physical gold & silver, I’m speaking of coins…not bullion. US quarters minted with a date no later than 1964 have high silver content. They’re called “junk” silver. Silver coins are easier to deal with than bullion. Also, bullion is numbered. Besides having to pay tax on it, it is reported to the government. Coin currency is not. At least, that’s the last bit of info I have gotten regarding those rules on bullion. Maybe that’s changed by now from a few years ago. Good luck:)

  3. WomanPatriot | April 30, 2016 at 3:28 pm | Reply

    The only difference between Communism and Capitalism is this: With Communism, everything is owned by the State. With Capitalism, everything is privately owned by Corporations , which is being diligently pursued globally with privatization of all public services. With Communism the citizens are screwed. With Capitalism…the citizens are screwed. So, we must fight to have neither…

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