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The value of the U.S. dollar is rapidly declining. The dollar is worth roughly half of as much as it was in the mid-1980s. Since the creation of the Federal Reserve in 1913, the dollar has lost a whopping 97 percent of its purchasing power. The Federal Reserve excessively printing money has devalued our currency which means the dollar can’t buy as much as it used to.
Many people assume that the increase in prices over time is just a natural occurrence. But that's not true. The Federal Reserve's manipulation of the money supply is primarily responsible for the rising prices of goods and services. The more dollars in circulation, the less the money is worth. It now takes more dollars to buy the same amount of goods as it had taken before. It used to take 79 cents to purchase a pound of bacon in 1962, now it cost approximately $4.77. The poor get hurt the most by rising prices since they have less disposable income.
More Americans are understandably losing trust in the dollar. After all, the paper dollar is backed by absolutely nothing and the Federal Reserve can print as much as it wants with no restrictions. Unfortunately, unconstitutional federal tender laws force Americans to use these Federal Reserve notes issued by the Federal Reserve. Americans are not legally allowed to use other forms of currencies such as gold and silver in transactions.
Unlike the paper dollar, gold and silver holds their value over time. That’s exactly why there are laws forcing Americans to use the Federal Reserve issued fiat currency. Without any coercive laws, Americans would likely start using valuable alternative currencies instead of the paper dollar. The Federal Reserve desperately wants to preserve its monopoly on currency.
Americans should be free to use whatever currency they desire. It’s time that the paper dollar is forced to compete with other forms of currency. The prospect of Americans using alternative currencies would likely encourage the Federal Reserve to stop destroying the value of the dollar through inflating the money supply.
While ending the Federal Reserve is the ultimate goal, repealing unconstitutional federal legal tender laws and legalizing competing currencies is a step in the right direction.
Click here to see FreedomWorks' letter in support of Rep. Ron Paul's Free Competition in Currency Act.