H.R. 1098 Free Competition in Currency

[Forever_frost]

So Ron Paul has introduced this bill to create competition to fiat currency. I have read about his take on this before in his book, but I am curious about the implications and would love to hear thoughts from people who know much more on the subject. As I understand it, it would allow say American Express to create a currency, as an example. I don't understand all the problems or issues this could cause, but it is an exciting prospect with many risks and many possible rewards. I know many will think it is absolutely crazy to think of many different currencies circulating, but with most people using plastic these days it seems to me it wouldn't be that hard to facilitate. The market would mostly keep itself in check. The currencies that did anything to affect their value would have their standard or value fall against others.

H.R. 1098: Free Competition in Currency Act of 2011

112th Congress, 2011–2012

To repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage.

Sponsor:
Rep. Ronald “Ron” Paul [R-TX14]
Status:
Referred to Committee

If companies and states can create their own currencies, then that is a violation of the constitutional authority of the Congress

[majorownage]

If companies and states can create their own currencies, then that is a violation of the constitutional authority of the Congress

The Federal Reserve is a private company.

[matts5.0]

The Federal Reserve is a private company.

zinga

[Forever_frost]

The Federal Reserve is a private company.

I think they call it a semi-governmental agency. Still a congressional power and only allocated to them and them alone. Anything else is unconstitutional and thus, RP is trying to push an unconstitutional law.

Edit:

What does it mean that the Federal Reserve is "independent within the government"?

The Federal Reserve, like many other central banks, is an independent government agency but also one that is ultimately accountable to the public and the Congress. The Congress established maximum employment and stable prices as the key macroeconomic objectives for the Federal Reserve in its conduct of monetary policy. The Congress also structured the Federal Reserve to ensure that its monetary policy decisions focus on achieving these long-run goals and do not become subject to political pressures that could lead to undesirable outcomes. So, members of the Board of Governors are appointed for staggered 14-year terms and the Chairman of the Board is appointed for a four-year term. Elected officials and members of the Administration are not allowed to serve on the Board.

http://www.federalreserve.gov/faqs/about_12799.htm

[matts5.0]

[Forever_frost]

I'm aware of that. However, you've not disputed the fact that anyone BUT Congress printing money is unconstitutional and unlawful.

[matts5.0]

[matts5.0]

I'm aware of that. However, you've not disputed the fact that anyone BUT Congress printing money is unconstitutional and unlawful.

thats what the purpose of the bill he is proposing is.

[matts5.0]

from what i read it is legal to make your own paper currency, you can not mint coins though.

[Forever_frost]

from what i read it is legal to make your own paper currency, you can not mint coins though.

If you do it, polite men from the Department of Treasury and the IRS will come to your door in polite black suits with polite black rifles and politely kick through your door while politely showing you the quickest way to the floor with friendly hollow points through you should you move wrong.

[matts5.0]

http://www.treehugger.com/culture/how-to-print-your-own-money-build-community-not-get-arrested-by-the-feds.html