February 8, 2010
Why Honest Money Is the Best Strategy to End the FED
By Jim Babka

This article was written in support of the Free Competition in Currency campaign...

What Is Honest Money and Why Is It Important to those who wish to End the FED?

Items with inherent value, as in barter, than can be used as a token of exchange, and we call these items "Honest Money." Gold is the classic example of Honest Money.

The key reason we need the "Free Competition in Currency" legislation is that current laws give the State's currency preferential status, especially the monopoly power conferred by legal tender laws. This preferential status suppresses forms of Honest Money. When the State confers special status on its own money, we call that Fiat Currency.

Given that we live in a world where financial success is determined by how many FRAUDs one possesses and all their property is measured in FRAUDs, the importance of Honest Money can be hard to understand.

What are FRAUDs?

Unit, the

The FRAUD (a.k.a., the dollar) is our national Fiat Currency. It is...

* Backed by the full faith and credit we place in politicians, and nothing more.
* A political accounting unit, manipulated for political benefit.

Those with the most political power over your money have very dramatically increased the number of FRAUDs in circulation. Expansion of the money supply is the actual definition of inflation (for more information about how inflation works, see "End the Inflation Tax").

People are naturally prone to spend those forms of money that give them the greatest purchasing power, and vendors are prone to demand the currency that has the greater ability to hold value or even appreciate. The logically preferred trading token will be Honest Money -- gold in particular.

But Gresham's Law teaches us that, "Bad money drives out good money." Effectively, Gresham's Law explains an upside down world of currency, made possible with monopoly status bestowed on the State's currency -- the world we live in today. One hoards good money, and rushes to spend the bad before it becomes even less valuable. 

The key issue in protecting wealth from inflation is permitting gold to compete, on a level playing field with the State's fiat currency.

For those desiring to "End the Fed," the Free Competition in Currency Act is a sure incremental path to your goal. Each person can "withdraw consent" without a further act of Congress. Like homeschoolers, each person who opts out, reduces the influence and relative power of the institution.

As more people opt out, the institution's power shrinks further.

And once this process is underway, the benefits to those who opt out are obvious. If your purchasing power can no longer be stolen by the politically powerful, you will accumulate wealth much faster. Thus, your neighbors will be attracted to your example -- to Honest Money -- and will reduce their FRAUD holdings just like you did.

Eventually, the Fed will be so weak that euthanizing it will almost seem redundant. 








Filed under Wealth & Poverty
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