While Rome burns, Nero fiddles. by Larry Warrick
(libertarian)
Wednesday, March 19, 2008
Being a firm believer in sound currency and good fiscal policies, I sent an imapssioned plea to my (Florida Democrat) congressman, Robert Wexler, asking that he support HR . 4683.? "The free competition in currency act" recently introduced into the house.? Following is the reply I received:?
"Thank you for contacting my office regarding H.R. 4683, "The Free Competition in Currency Act." I appreciate your views on this important issue.
For the past seven years, this Administration has pursued flawed economic policies focused on massive cuts in revenue to the Federal government while fighting two costly wars and increasing Federal government spending. In fact, by the time this Administration leaves office, the wars in Iraq and Afghanistan will have cost more than one trillion dollars in borrowed money. These policies have exacerbated the national debt to levels that have never been witnessed in our Country's history. Government debt is the primary reason for the devaluing of the U.S. dollar. The depreciating U.S. dollar can lead to inflation which is addressed by the Federal Reserve's adjustment of the interest rates.
As you are aware, H.R. 4683 would repeal several provisions of the criminal code addressing counterfeiting. The bill also would nullify past criminal convictions for counterfeiting currency. These changes in the counterfeiting laws are designed to allow for currency competition and a strengthening of the U.S. dollar. However, currency competition is not the answer for strengthening the U.S. dollar. I, therefore, do not support H.R. 4683.
I firmly believe that the primary way to strengthen the U.S. dollar is by reestablishing foreign confidence in the dollar. Foreigners become less willing to hold U.S. dollars as an investment if the U.S. economy's deficit is allowed to continue and the U.S. maintains substantial foreign economic liabilities. We, therefore, need to return to the economic policies that wiped out the national debt and created a budget surplus. Restoring our nation's economic soundness and paying off the national debt will re-strengthen the U.S. dollar.? ? ?
Thank you again for taking the time to write. Please feel free to contact me with any additional questions you may have or anytime I may be of assistance to you. If you would like to be updated on these and other issues, please stop by my website (www.wexler.house.gov) and sign up for my electronic newsletter. I hope you will find these tools to be valuable resources in keeping up with events in Washington and South Florida.
I had to agree that the current "print and spend" inflationary policies are indeed flawed.? In fact, the last 7 years is just the tip of the iceberg.? To assert that the Federal Reserve can save us from the impending financial disaster brought on by?the "flawed policies" of the last 100 years (sorry, I meant to say 7 years) by prescribing more of the same "flawed policies", stretches the credulity of any person of sound mind.
This bill would indeed?repeal several provisions of the criminal code addressing counterfeiting.? It would make it much more difficult for the federal reserve to print money out of thin air and ?force "we the people" ?to accept it as legal tender.? In one stroke, it pulls the rug from under the federal reserve and severly limits the ability of congress to pad the treasury with fake money.? What a great idea!
He firmly believes (I think he really does, too), that the way to strengthen the US dollar is to restore foreign confidence in said fiat currency.? Then he drones on about sound money and budgetary discipline like he has the slightest idea what those principles are.
My reply was as follows:
"Thank you for your reply concerning HR 4683, "The Free Competition in Currency Act."? Whilst I understand and applaud your concern over the mounting debt and the exhorbitant costs of the recent conflicts in which we are entangled, I feel I must respectfully disagree with your decision not to support this bill.? It is my assertion that free competition in currency is a sound monetary policy which will lead to the re-establishment of foreign confidence in US currency.? For too long we as a nation have allowed the debasement of our currency through Keynesian-socialist "Tax & Spend" monetary policies.? I agree that foreigners become less willing to hold U.S. dollars as an investment if the U.S. economy's deficit is allowed to continue and the U.S. maintains substantial foreign economic liabilities.? I simply cannot conscience the continuance of the fiat monetary policies that have gotten us into this situation in the first place.? A sound currency based on solid assets is a great "first step" toward a free market unfettered by government interference.? What this bill represents is an attempt to redress our imbalances in trade by allowing a free market to operate as it should, free of government intervention.? In my humble opinion, this is the best way to address the fears of our foreign trading partners.
In the area of a balanced budget, I would like to make a few suggestions how that may be accomplished, if I may: 1/ Return to sound monetary policies:? Allow free competition in currency.? Repeal the tax laws - all of them.? Disband the IRS.? Liquidate the Federal Reserve Bank and its printing apparatus.? Repeal all barriers to intercity, interstate and international trade. 2/ We currently have military installations in some 120 countries across the globe, amounting to over 700 bases.? Close these bases and recall our troops to secure our borders, not everybody elses. 3/ Withdraw from the World Bank, IMF and UN.? Stop donating our hard-earned currency to these organizations and any other "union" that uses its assets to interfere in the internal affairs of other nations.? In essence - take our sovereignty back. 4/ Repeal all laws that do not pass strict adherence to the constitution of the United States of America:? The welfare state, social security, medicaid/medicare, farm subsidies, price fixing, monopoly grants, &c, &c, &c, in essence, remove all government interference in the lives of American citizenry and replace it with nothing.
These steps, as outlined, will not only restore global faith in US currency, but will eliminate all possibility of government deficit spending and return our country to honest money, honest government and free, peaceful trade with the rest of the globe.
I beg of you Sir, please take the time to reconsider your position on this issue in light of the commonsense arguments outlined above.? You are in a position to correct and discontinue the high crimes and misdemeanors perpetrated over so many years on our people by this discredited Keynesian philosophical experiment in social engineering.
I remain, humbly Yours, ETC."
He did reply, exactly the same reply as detailed above - word for word.? Go figger!
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