Post by ShivaTD on Nov 8, 2013 12:53:22 GMT
Libertarians are overwhelmingly opposed to crony capitalism in the United States where the government plays favoritism with economic interventionism and no interventionism is worse than the use of fiat currency to create inflation in the economy. Fiat currency is not money but instead is lawful legal tender currency that isn't backed my money.
Lawful money is "species" coinage made predominately from gold where gold is the actual money and the coinage is merely the manufacture of a certified metallic token of a specific metallic content and weight.
Article I Section 8 Clause 4 doesn't empower Congress to "create money" but instead to "coin money" which is the authorization to make certified tokens from money (i.e. gold) because Congress can't really create the money (gold) but can merely "coin" it into certified tokens to prevent fraud that become "lawful" money. Article I Section 8 Clause 4 also states that Congress is to "regulate the value thereof" of the money it "coins" into "lawful money" because we use different precious metals in our coinage. The role of Congress is to regulate the relative value of the di, fferent precious metals used in the coins do that there is an "equal relationship" between gold coins, silver coins, copper coins, and relatively recently added platinum coins so that in the marketplace there isn't a preference of one type of "money" over another.
On one more matter of the legal understanding of "Money" in the 1930's President Roosevelt confiscated the "Lawful Gold Coinage" during a banking emergency and issued Federal Reserve "notes" (the word 'note' refers to a financial 'promissory note' that is redeemable in whatever it promises - a $50 Federal Reserve note promises redemption in $50 of lawful money of the United States which is currently American Eagle coins). In confiscating the gold coinage money Congress passed the Emergency Banking Act of 1934 that fundamentally prohibited US citizens from retaining gold coinage. In 1974 the Emergency Banking Act was repealed and in 1977 the "Gold Clause" was fully reinstated in the United States. Today, by contract, a financial obligation can be created where only "lawful money" (i.e. American Eagle coins) can be used to redeem the debt under the Gold Clause.
Technically, under the US Constitution and the laws of the United States we actually are under the "Gold Standard" but the statutory laws requiring the Federal Reserve to redeem Federal Reserve notes in "Lawful money" are not being enforced and pragmatically they can't be enforced because the Federal Reserve doesn't have the gold necessary to redeem the notes its issuing. It issues these notes based upon US Treasury notes that it purchased with "promissory" notes (i.e.one promise for another promise) and the US Treasury, because it didn't sell it's financial obligations for "Lawful money" doesn't have the gold reserves to redeem it's financial obligations that the Federal Reserve holds. Bottom line because the Treasury issued promises of payment for promises of payment, as opposed to actually receiving gold coinage for it's financial notes it can't redeem it's own promissory notes.
This is a long lead-in that is required to address the problem which is that the US government has dug a hole so deep that getting out of that hole requires a pragmatic proposal to return us to the actual use of "money" and not un-fulfill able promises of money in the United States. Here's my simple proposal based upon the authorizations for Congress under Article I Section 8 Clause 4 to "regulate the value" of the money of the United States.
I ran the numbers based upon US gold reserves and what the outstanding debt is of the US government to figure out what a "one-ounce gold coin" would have to be "worth" based upon it's denomination value and it roughly came out to being $5,000. That is a lot more than what gold is selling for on the free market which is actually good for the US government as demand for redemption of "Federal Reserve notes" would be relatively low at this time.
Basically all that is required is for the Congress to do exactly what it did in 1985 with the Gold Bullion Coin Act and revalue the gold, silver, copper and platinum coinage of the United States based upon a $5,000 one-ounce gold coin and then enforce the law that states a person can redeem a Federal Reserve note in "Lawful money" which would be the resulting coinage from the revaluation of "Lawful Money" being coined by the US Mint.
This is not hard to do but it would eliminate "inflation" caused by "fiat currency" that can't be redeemed in the "Lawful Money" under the laws of the United States. The Federal Reserve would be required to redeem any Federal Reserve notes it issues in "Lawful Money" which it can't do today and that prevents the runaway printing of un-backed currency that creates inflation.
Problem solved. No more inflation and we're back on the gold standard with one simple act of Congress.
Lawful money is "species" coinage made predominately from gold where gold is the actual money and the coinage is merely the manufacture of a certified metallic token of a specific metallic content and weight.
Article I Section 8 Clause 4 doesn't empower Congress to "create money" but instead to "coin money" which is the authorization to make certified tokens from money (i.e. gold) because Congress can't really create the money (gold) but can merely "coin" it into certified tokens to prevent fraud that become "lawful" money. Article I Section 8 Clause 4 also states that Congress is to "regulate the value thereof" of the money it "coins" into "lawful money" because we use different precious metals in our coinage. The role of Congress is to regulate the relative value of the di, fferent precious metals used in the coins do that there is an "equal relationship" between gold coins, silver coins, copper coins, and relatively recently added platinum coins so that in the marketplace there isn't a preference of one type of "money" over another.
On one more matter of the legal understanding of "Money" in the 1930's President Roosevelt confiscated the "Lawful Gold Coinage" during a banking emergency and issued Federal Reserve "notes" (the word 'note' refers to a financial 'promissory note' that is redeemable in whatever it promises - a $50 Federal Reserve note promises redemption in $50 of lawful money of the United States which is currently American Eagle coins). In confiscating the gold coinage money Congress passed the Emergency Banking Act of 1934 that fundamentally prohibited US citizens from retaining gold coinage. In 1974 the Emergency Banking Act was repealed and in 1977 the "Gold Clause" was fully reinstated in the United States. Today, by contract, a financial obligation can be created where only "lawful money" (i.e. American Eagle coins) can be used to redeem the debt under the Gold Clause.
Technically, under the US Constitution and the laws of the United States we actually are under the "Gold Standard" but the statutory laws requiring the Federal Reserve to redeem Federal Reserve notes in "Lawful money" are not being enforced and pragmatically they can't be enforced because the Federal Reserve doesn't have the gold necessary to redeem the notes its issuing. It issues these notes based upon US Treasury notes that it purchased with "promissory" notes (i.e.one promise for another promise) and the US Treasury, because it didn't sell it's financial obligations for "Lawful money" doesn't have the gold reserves to redeem it's financial obligations that the Federal Reserve holds. Bottom line because the Treasury issued promises of payment for promises of payment, as opposed to actually receiving gold coinage for it's financial notes it can't redeem it's own promissory notes.
This is a long lead-in that is required to address the problem which is that the US government has dug a hole so deep that getting out of that hole requires a pragmatic proposal to return us to the actual use of "money" and not un-fulfill able promises of money in the United States. Here's my simple proposal based upon the authorizations for Congress under Article I Section 8 Clause 4 to "regulate the value" of the money of the United States.
I ran the numbers based upon US gold reserves and what the outstanding debt is of the US government to figure out what a "one-ounce gold coin" would have to be "worth" based upon it's denomination value and it roughly came out to being $5,000. That is a lot more than what gold is selling for on the free market which is actually good for the US government as demand for redemption of "Federal Reserve notes" would be relatively low at this time.
Basically all that is required is for the Congress to do exactly what it did in 1985 with the Gold Bullion Coin Act and revalue the gold, silver, copper and platinum coinage of the United States based upon a $5,000 one-ounce gold coin and then enforce the law that states a person can redeem a Federal Reserve note in "Lawful money" which would be the resulting coinage from the revaluation of "Lawful Money" being coined by the US Mint.
This is not hard to do but it would eliminate "inflation" caused by "fiat currency" that can't be redeemed in the "Lawful Money" under the laws of the United States. The Federal Reserve would be required to redeem any Federal Reserve notes it issues in "Lawful Money" which it can't do today and that prevents the runaway printing of un-backed currency that creates inflation.
Problem solved. No more inflation and we're back on the gold standard with one simple act of Congress.