Saturday, August 2, 2008

Commodity money good for blind and sighted

Ron Paul, in a statement before the Subcommittee on Domestic & International Monetary Policy, Hearing on Examining Issues Related to Tactilely Distinguishable Currency, July 30, 2008, pointed out that
Anyone who has ever felt the heft of a gold or silver coin, noticed the variation in size and design among different denominations of precious metal coins, or examined the different types of reeding, incusing, and other edge designs, recognizes that coins are far superior to paper bills in terms of their ability to be distinguishable solely by touch.
If we had a truly free market in currency, private currency producers could produce coins or bills that are tactilely distinguishable, with bills incorporating different sizes, shapes, raised geometric patterns, etc.
What prevents us from establishing a distinguishable money? Guess.
Through a multifaceted legal barrier consisting of legal tender laws, anti-counterfeiting statutes worded to prevent the private issue of notes and coins, and punitive taxes on precious metals that would form the backing of a commodity-backed currency, the government has ensured that alternative currencies, such as the Liberty Dollar, have to face an often insurmountable legal hurdle.
Governments have always known the difference between sound and unsound money, and how they can benefit from the latter by seizing monopoly control of it.

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