Saturday, October 22, 2011

Jeff Kaufman

A start would be returning to a gold backed legal tender dollar. It will not reimpose the full intent of the Constitution but it would reimpose limitations on the government consistent with the Constitution. A bigger step would be repealing all legal tender laws so that alternative entities could introduce other "monies" in competition with the U.S. dollar which would also discipline the Federal Reserve and create a disincentive to quantitatively ease the money supply.
What we really cannot do however, is nothing. Since 1912 the dollar has been on a 100 year decline losing value as it became detached from gold and printed in excess so that its value against other currencies has been eroded by inflation. Inaction will lead to an inevitable collapse of the dollar.

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