Ron Paul spoke on the House floor this past Thursday, February 14, explaining how Congress could easily enable competing currencies, thus removing the stranglehold of the Federal Reserve bank and improving the exchange rate of all of America’s currencies.
Paul sees three steps, summarized here:
- Eliminate legal tender laws, enabling states to use whatever they wish as currency. Congress has no right to establish a legal tender, but yet it did so in 31 USC 5103.
- Repeal or amend the 1864 Coinage Act, passed during the gold rush in California to prevent private mints from circulating a currency which Congress felt was debased and undervalued compared to Federal Reserve notes.
- Eliminate capital gains and income tax on precious metals, such as gold and silver. These are currently treated as collectibles instead of currency. As the value of the dollar falls, the price of these metals increases relative to the dollar, but not to other currencies. As such, the taxes on these metals increase even though the actual value of the metal barely changes.