In America’s financial sector today we have a very serious dilema. A runaway government that seems to think that the only way out of this economic trauma is to continue to infuse the veins of society with more printed paper dollars. In doing so, the Federal Reserve has printed more paper money and injected it into the government to disperse at their “will”. We aren’t just talking molehills of cash, but serious mountain ranges of cash.
That’s the conventional wisdom of the day. And we’re eventually going to see some serious inflation. But I propose a novel solution to help save our economy.
Technically the Federal Reserve prints all of the paper money that is in supply. I linked to an article previously on the Ohio Free Press that explained how the Federal Reserve Banks work – and it isn’t pretty. We have to pay back the Federal Reserve interest on the money they loan to us with more money they loan to us. Sounds like a bad ending for the people getting the Federal Reserve Notes – and sounds like Bernie Madoff is running a side show.
However, the Federal Reserve does not mint U.S. coins. The United States Mint primarily produces circulating coinage for the United States to conduct its trade and commerce. The Mint was created by Congresswith the Coinage Act of 1792, and placed within the Department of State. These coins are used as legal tender in our economy but are not a part of the Federal Reserve Banking System.
So, in effect we have two different entities producing the money we use everyday. The first is the Federal Reserve Bank, which issues the paper money and which we need to pay back to the Federal Reserve with interest as I previously explained. The second is the U.S. Mint who produces our metal coinage and is not a part of the Federal Reserve – and that we don’t have to pay back with interest.
Does it not make sense to print additional coins to replace much of the paper currency that is designed to cause inflation and economic hardship while making just a few families of the world richer?
How We Save the US Economy
First, quickly design a $5, $10, and $20 coin series that can be used as legal tender in the United States.
Then, as these coins are produced and put into circulation, they are not just dumped on the system but physically replace the Federal Reserve paper dollars currently in circulation. An eye for an eye, a tooth for a tooth. A $5 coin for a $5 bill. The $5 bills are then destroyed.
Since it was the original Founder’s intent in Article 1 Section 8 of the Constitution stated that Congress has the power “To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;”. This is NOT the job of the Federal Reserve – though that was pushed through under the cover of darkness, under the guise of well being for the world economy, and without the consent of the people. But, they forgot to tie in the actual “coinage” being produced. This is the hole that will sink the USS Federal Reserve.
This is possibly our only saving grace. It is not a quick fix plan. I would suggest it might take 50 – 75 years to redeem our economy by going this route and replacing the Federal Reserve currency with the true, rightful, and only real legal money available that would be pressed at our own US Mints.
Some will argue that this plan is not practical in that people don’t want to carry around heavy coins. I would argue that a $20 coin would be worth a lot more than a severely crippled $20 bill when you factor in the inflation that is going to wreck our entire nation.
That’s just my $.02 adjusted for inflation.