In the beginning there was Ron, and now Mike makes two!
I am referring to Texas Representative Ron Paul and South Carolina Representative Mike Pitts. Both distinguished gentlemen agree that our economic system is going to collapse beneath our rising debt. Both gentlemen agree that its because of the Federal Reserve and that it should be abolished. And both gentlemen agree that this country should go back to the gold standard. But Representative Pitts has upped the ante by introducing legislation that would mandate that gold and silver coins replace currency as legal tender in his state. That should make the Fed nervous. And if the Feds are nervous, then the people who run the Fed are nervous. And if the people who run the Fed are nervous, then the people the Fed answers to are nervous. And if those people are nervous, woe be to you and I!
In an interview, Pitts told Hotsheet "The Germans felt their system wouldn't collapse, but it took a wheelbarrow of money to buy a loaf of bread in the 1930s," he said. "The Soviet Union didn't think their system would collapse, but it did. Ours is capable of collapsing also." The lawmaker believes that a shift to an economy based on gold and silver coins would give the state a "base of currency" should that collapse come. As one expert told the Scoop, however, his bill would likely be ruled unconstitutional because it "violates a perfectly legal and Constitutional federal law, enacted pursuant to the Commerce Clause of the U.S. Constitution, that federal reserve notes are legal tender for all debts public and private." Did you hear that collective Fed "GULP"?
I predict that his bill will get crushed and that like Ron Paul Representative Pitt will be forced to the fringes of his party, yet still allowed to function as a member of state government. I further predict that someone, either state Government, or a lobbying group, someone will begin a campaign to promote Federal Reserve notes and to discourage switching to gold and silver. It will begin with public service messages and then develop into a full blown ad campaign complete with "news" reports to support the promotion of notes over precious metals.
Should we continue to place our faith in a FIAT MONETARY SYSTEM that promises only rising debt, or should we go back to the gold standard which promises stability? Should we abolish the Federal Reserve and place the responsibility of issuing money back into the hands of the Federal Government as the Constitution dictates? Can we get back to "honest money"?