Commodity Online News has an interesting article
regarding a new bill introduced by Ron Paul to repeal legal tender laws, an
investigation of the coin shortage, and Paul's positions on interest rates
and a return to the gold standard.
Please consider Ron Paul to probe US Mint Coin shortage
Rep. Ron Paul, R-Texas, has one
question for the U.S. Mint: why is there a coin shortage? He is aiming to get
to the bottom of this during a scheduled April 7 hearing of his U.S. House
Subcommittee on Domestic Monetary Policy to examine the bullion programs at
the U.S. Mint.
“We are going to try and find out what the Mint has done so they can
give us a better answer as to why there is a shortage. Why can’t they
keep the supply of coins up?” said the congressman in an exclusive
interview with Kitco News.
Part of the problem lies in manufacturing the blanks, said Paul. The blank planchets are not made at the Mint, which hasn't had the
production capacity for this stage of the minting process since the budget
cuts of 1981.
“Looks like we don’t even get (all) blank coins made in the U.S.
– there is a contract with a foreign company, which makes no sense at all,”
said the congressman.
Free Competition in Currency Act of 2011
In March, Paul introduced H.R. 1098, the Free Competition in Currency Act of
2011, which would repeal legal tender laws in order to prohibit taxation on
gold, silver, platinum, palladium and rhodium bullion. The bill has been
referred to the House Committees on Financial Services, Ways and Means, and
A staunch critic of the Federal Reserve, Paul said that instead of arguing
his case for the Fed to close down tomorrow, he’s arguing the fact it
should not hold a monopoly. “They have a monopoly on a type of money
that isn’t even constitutional,” he said.
“We would use no force, nobody has to use gold and silver coins,”
said Paul. Rather, he said the Fed does use force. “They are a cartel
and they make us use Federal Reserve notes,” he said.
A common assumption is that Paul is calling for a return to a gold standard.
He clarified, saying he is not so inflexible. “I wouldn’t be
overly rigid and say, ‘you must have a gold standard, you must go back
to what we had.’ Our gold standard was imperfect, even though it worked
better than the paper standard,” he said.
Lawmakers in several states, including Tennessee, Virginia, New Hampshire and
South Carolina, have introduced bills to look into minting their own
currencies in the event of a complete breakdown of the U.S. Federal Reserve.
In Georgia, a bill to make the state only use gold and silver is in
Utah has received the most media attention on this subject as the House and
Senate have passed HB317, which would recognize gold and silver coins as
legal tender and exempt them from certain state tax liability.
“Governments over the many, many centuries have always demanded
monopoly control over money. Even when gold and silver were principally used
in the economies, they still wanted monopolies,” Paul said.
Hence, he is not confident that any Utah law would be allowed to stand.
“Well, they are going to fight it tooth and nail. They are not going to
go along with this even though we have the law and Constitution on our side
and it should appeal to all Americans to have competition.”
Interest Rate Hikes and Municipal Bond Defaults
Regarding U.S. interest rate hikes, Paul said they are going to be gradual
and steady but they are indeed coming. “The next big shoe to fall will
be interest rates going up on municipal bonds -- that means a lot of these
bonds will start defaulting,” he said.
There is more in the article including a discussion
on another run for president. I hope he does run even though he has little
chance of winning.
His issues are important ones and they merit adoption. The first step,
however, is more awareness, and his running for president would do just that.
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