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Bring Back Honest Money (english)
by Ron Paul
31 Jul 2003
Modified: 03 Aug 2003
It is time to stop using worthless paper that has been used to enslave people.
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Ron Paul: BRING BACK HONEST MONEY
Posted By: hobie
Date: Thursday, 31 July 2003, 3:04 p.m.
Bring Back Honest Money
by Rep. Ron Paul, MD
Ron Paul in the US House of Representatives, July 25, 2003
Mr. Speaker, I rise to introduce the Honest Money Act. The Honest Money
Act repeals legal tender laws, a.k.a. forced tender laws, that compel
American citizens to accept fiat (arbitrary) irredeemable paper-ticket
or electronic money as their unit of account.
Absent legal tender laws, individuals acting through the markets,
rather than government dictates, determine what is to be used as money.
Historically, the free-market choice for money has been some
combination of gold and silver, whenever they were available. As Dr.
Edwin Vieira, the nation's top expert on constitutional money, states:
"A free market functions most efficiently and most fairly when the
market determines the quality and the quantity of money that's being
While fiat money is widely accepted thanks to legal tender laws, it
does not maintain its purchasing power. This works to the disadvantage
of ordinary people who lose the purchasing power of their savings,
pensions, annuities, and other promises of future payment. Most
importantly, because of the subsidies our present monetary system
provides to banks, which, as Federal Reserve Chairman Alan Greenspan
has stated, "induces" the financial sector to increase leverage, the
Federal Reserve can create additional money, in Mr. Greenspan's words,
"without limit." For this reason, absent legal tender laws, many
citizens would refuse to accept fiat irredeemable paper-ticket or
Legal tender laws disadvantage ordinary citizens by forcing them to use
money that is vulnerable to vast depreciation. As Stephen T. Byington
wrote in the September 1895 issue of the American Federationist: "No
legal tender law is ever needed to make men take good money; its only
use is to make them take bad money. Kick it out!" Similarly, the
American Federation of Labor asked: "If money is good and would be
preferred by the people, then why are legal tender laws necessary? And,
if money is not good and would not be preferred by the people, then why
in a democracy should they be forced to use it?"
The American Federation of Labor understood how the erosion of the
value of money cheated working people. Further, honest money, i.e.,
specie, was one of the three issues that encouraged ordinary people to
organize into unions when the union movement began in the U.S. circa
While harming ordinary citizens, legal tender laws help expand the
scope of government beyond that authorized under the Constitution.
However, the primary beneficiaries of legal tender laws are financial
institutions, especially banks, which have been improperly granted the
special privilege of creating fiat irredeemable electronic money out of
thin air through a process commonly called fractional reserve lending.
According to the Federal Reserve, since 1950 these private companies
(banks) have created almost $8 trillion out of nothing. This has been
enormously advantageous to them.
The advantages given banks and other financial institutions by our fiat
monetary system, which is built on a foundation of legal tender laws,
allow them to realize revenues that would not be available to these
institutions in a free market. This represents legalized plunder of
ordinary people. Legal tender laws thus enable the redistribution of
wealth from those who produce it, mostly ordinary working people, to
those who create and move around our irredeemable paper-ticket
electronic money which is, in essence, just scrip.
The drafters of the Constitution were well aware of how a government
armed with legal tender powers could ravage the people's liberty and
prosperity. That is why the Constitution does not grant legal tender
power to the federal government, and the states are empowered to make
legal tender only out of gold and silver (see Article 1, Section 10).
Instead, Congress was given the power to regulate money against a
standard, i.e., the dollar. When Alexander Hamilton wrote the Coinage
Act of 1792, he simply made into law the market-definition of a dollar
as equaling the silver content of the Spanish milled dollar (371.25
grains of silver), which is the dollar referred to in the Constitution.
This historical definition of the dollar has never been changed, and
cannot be changed any more than the term "inch," as a measure of
length, can be changed. It is a gross misrepresentation to equate our
irredeemable paper-ticket or electronic money to "dollars."
However, during the 20th century, the legal tender power enabled
politicians to fool the public into believing the dollar no longer
meant a weight of gold or silver. Instead, the government told the
people that the dollar now meant a piece of government-issued paper
backed up by nothing except the promises of the government to maintain
a stable value of currency. Of course, history shows that the word of
the government (to protect the value of the dollar) is literally not
worth the paper it is printed on.
Tragically, the Supreme Court has failed to protect the American people
from unconstitutional legal tender laws. Salmon Chase, who served as
Secretary of the Treasury in President Lincoln's administration, when
he was Chief Justice of the Supreme Court, dissenting in Knox vs. Lee,
summed up the argument against legal tender laws in twelve words: "The
legal tender quality [of money] is only valuable for the purposes of
dishonesty." [emphasis added.]
Another prescient Justice was Stephen Field, the only Justice to
dissent in every legal tender case to come before the Court. Justice
Field accurately described the dangers to our constitutional republic
posed by legal tender laws: "The arguments in favor of the
constitutionality of legal tender paper currency tend directly to break
down the barriers which separate a government of limited powers from a
government resting in the unrestrained will of Congress. Those
limitations must be preserved, or our government will inevitably drift
from the system established by our Fathers into a vast, centralized,
and consolidated government." A government with unrestrained powers is
properly characterized as tyrannical.
Repeal of legal tender laws will help restore constitutional government
and protect the people's right to a medium of exchange chosen by the
market, thereby protecting their current purchasing power as well as
their pensions, savings, and other promises of future payment. Because
honest money serves the needs of ordinary people, instead of fiat
irredeemable paper-ticket electronic money that improperly transfers
the wealth of society to a small specially privileged financial elite
along with other special interests, I urge my colleagues to cosponsor
the Honest Money Act.
Dr. Ron Paul is a Republican member of Congress from Texas.
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Trading one delusion for another... (english)
by Eyes wide open...
(No verified email address)
03 Aug 2003
The problem is not which type of money you use, its that we are using money at all. If money were eliminated and we simply cooperated with each other and turned away form the evil cabals that control all money (read, the Vatican), then and only then will all of this evil end.
Take the time to contemplate how money causes everything to be enormously more complex and gives those who control money (Lucifer's henchmen in the Vatican) the power to control all of us, because we are too stupid to understand the simple truth. Money is the problem, not the lack of money. Get a Clue...
Money was created by evil, to enslave the world, and it has worked like a charm. When we end all money, then we end the ability of evil to control us all.
Why do you think the USA national seal, which is on the one dollar bill, is the same as the seal of the super secret Illuminati, which is a Vatican controlled deception. It is the same as the symbol for the ancient Priesthood of Marduk, the Great Red Dragon of Babylon who created money and then went forth to control all world empires since then (Duh), who we now call Satan and Lucifer. Is there any doubt why money always seems to help evil and confound good?
Because of money, more than 90% of all the resources and effort of our civilization goes to support money and all the overhead it causes and all the greed and despair it spawns. Without money, there would be no need for huge buldings and organizations that sit empty at night while living people starve and go homeless.
Get a clue and end all money. Money is what permits evil to flourish and causes the good to struggle and languish,
Here is wisdom...