An act proposed by Senator Ron Paul (R-Texas) would "legalize competing currencies."
I agree with Senator Paul on many issues, including his stance on the Federal Reserve. But this time...well, I just don't see how this would do us any good.
For one, it seems unconstitutional to me. Congress is supposed to print money, and regulate it. So Congress needs to take up their duties like they ought, buck up, and be men. Also, I think it would just create a lot more chaos than we have now. What happens if you go into Walmart, and they use Fed bills, but you use a different currency? What then? How do we determine exchange rates? That was one of the reasons the 'money clause' was put into the Constitution. States were making their own money, and it was causing tons of havoc.
I also think with this bill, we're asking for trouble because people will start counterfeiting, further inflating our money supply, and using this bill to justify it. We'll shoot ourselves in the foot with this thing, IMO. Letting people 'mint private money'...um, yeah, we're just asking for trouble. That would cause inflation as well, I would think. With gold, there's also the problem of exchange rates. How do we set a rate? How do we know what a certain bit of gold is worth?
I think a better, more permanent solution would be for a) Congress to do their job and start printing money- US legal tender- as they ought. b) This money should be available for exchange at any bank. This exchange would work by people bringing in their Fed bills and receiving an equal amount of USLT. (An exchange rate would have to be worked out. Right at the beginning, perhaps one for one.) Alternately, we could also just start issuing USLT, and let the Fed bills work their way out of the system, but that might also cause more problems than good
So there's just my thoughts on that. Anyone else?