by Jon Matonis
August 07, 202012
from Forbes Website
It may not be as historically significant as President Nixon closing the
gold window in 1971, but Rep. Ron Paul laid out the framework for the
inevitable monetary confrontation of the future in his final U.S. Domestic
Monetary Policy Subcommittee hearing on “Sound Money: Parallel Currencies
and the Roadmap to Monetary Freedom.”
Congressman Ron Paul's Final...
Domestic Monetary Policy Subcommittee Hearing
The experts testifying included Robert Gray, Executive Director of the
American Open Currency Standard, Forbes contributor Nathan Lewis, author of
Gold: The Once and Future Money, and Dr. Richard Ebeling, Northwood
University economics professor.
Rep. Paul also included a prepared statement
from constitutional lawyer and monetary expert, Dr. Edwin Vieira, who was
unable to attend.
Summarizing the August 2nd Congressional hearing, Alex Newman
wrote for The
According to Paul, the only way to stabilize the economy is by returning to
monetary freedom and legalizing constitutional money.
And until the U.S.
government and the Fed get out of the way so the American people can choose
what money to use without government coercion, the economy will never be
truly stable and the supposed ‘recovery’ will be ‘illusory,’ he added.
Meanwhile, other nations are already catching on to the hoax even as
Americans lack the freedoms that citizens in some other parts of the world
have to invest and protect their wealth from inflation.
echoing the sentiments of the chairman, the experts agreed that
since the creation of
the Federal Reserve in 1913 the dollar has lost 98% of
its value and that central banking is a form of central planning with no
place in a free society.
Generally, the repeal of legal tender laws will allow individuals to decide
what to use as the preferred medium of exchange and open the door to
alternative currencies without threat of prosecution.
Rob Gray has been a tireless advocate for alternative open currency systems
and he is right to say “leave our money alone” but I fundamentally disagree
with his stance on
legal tender laws.
He believes that the only effect of
legal tender laws is that if a debt is incurred without a specific agreement
for a particular type of payment, then that debt can be discharged with the
declared legal tender, or federal reserve notes. He even goes on say that,
in addition to not calling for repeal, he is in favor of existing legal
tender laws because they are so innocuous.
Although technically correct in stating that legal tender laws do not result
“tax obligation, exclusive requirement, and/or mandatory acceptance,”
Gray misses a major and symbolic effect that they do have and sometimes it’s
a chilling effect.
The legal tender laws have the effect of giving one form of money an
artificial preference over another by making that form of money acceptable
for the payment of taxes.
Therefore, it indirectly puts forms of money
without legal tender status at a disadvantage because people will perceive
the ‘legally’ preferred monetary unit as having an underlying value greater
That is why I oppose legal tender laws, Mr. Gray.
Then, a bit of
bitcoin drama occurred when Rep. David Schweikert (R-Arizona)
initially referred to the cryptocurrency as,
“um… what was one of them
called?… something… coin” near the end of the hearing.
To my knowledge, that is only the second time
that bitcoin has been entered into the congressional record.
The first being
when Prof. Larry White mentioned bitcoin in his prepared testimony for the
Free Competition in Currency Act of 2011.
Contrary to Nathan Lewis’ statement that “every currency has an issuer,”
bitcoin does not require an issuer.
Proving once again that events in the real world unfold faster than those in
power can comprehend, the participants probably did not know that bitcoin is
currently the largest
distributed computing project in existence today,
passing the Search for Extra-Terrestrial Intelligence (SETI) project some
They probably were also not aware that bitcoin is a three-year-old
decentralized bootstrapped currency with a $100 million plus
that is immune from government regulation and, more importantly, immune from
the crippling effects of monetary policy.