Dr Ron Paul now has a new bill before Congress 'Free Competition and Currency Act 2009',that will be in direct competition with the US Fed $. See http://www.ronpaul.com/ With the imminent collapse of the US Fed $, hyper inflation will see a collapse of people's savings and buying power.

The logistics of how this will operate will be interesting.Ron proposes that a number of private mints make coins with precious metals.This means that people will not put their money in the banks just to be converted to worthless Fed $ or will the banks register your coin deposits as a separate currency? Will employees be able to request payment to be made in precious metal coins?

Perhaps they could go back to the old system of money, ie using gold and silver certificates as a medium of exchange.

Two things are certain,the companies who make safes will have to ramp up production and precious metals will reach much higher levels than anyone ever dreamt of.

Arjay, I guess most people, myself included, find something like this very hard to comment on because they really don't understand the details of the US financial system or have any feeling for what Ron Paul's new bill might actually mean.

I certainly respect your interest and knowledge in this field.

Can I ask you for a response to my post about Barnaby Joyce's comments on the US and Queensland possibly defaulting on their debt: http://forum.onlineopinion.com.au/thread.asp?discussion=3271#78371

Thanx.

*Ron proposes that a number of private mints make coins with precious metals.*

Arjay, perhaps Ron should take a trip to Europe.For of course,
nobody needs to hold their money in banknotes, if they don't trust
the sytem.

European banks commonly trade in gold coins, including American
double eagles, Indian heads etc, Swiss gold coins, German, French,
they are all purchasable. South Africa marketed alot of its gold
this way, freely purchasable by anyone. In Australia the Perth mint
sells small gold bars, for those who wish to hold gold.

So Ron seemingly wants to reinvent the wheel.

Yabby , I think that Ron is trying to make stable currency available to everyone.It is no good having just a few people with wealth having the ability to buy gold.It also gives the Fed $ some competition and they will be less able to devalue the currency by printing more of it.

Ludwig ,it is not all that complicated.Unlike the US Federal Reserve our RBA is owned by the people with basically Corporate members on it's board.Since 1913 the US Fed is comprised of a private cartel of 12 banks with Govt members on it's board.

The Fed has basically failed it's primary charter of providing a responsible money supply to the US economy.They are the cause of the GFC.That is why Ron Paul wants to END the FED and use Congress' powers to once again issue currency to the population.Ron it seems wants a number of sources in competition to keep the Fed honest.

The US $ is on the slide and this will destroy the lives and jobs of many Americans.Like us,they don't have much of a manufacturing industry.Since they rely on imports,their crashing $ will see many live in poverty.

I think in the iterium that his ideas do have as lot of merit.80% of Americans now want to audit the Fed and only a few months ago most did not know that the Fed was a private cartel of banks who are a law unto themselves.

Go to youtube and see Paul Grignons movie "Money as Debt".Over 90% of our money is created as debt via the banking system.There is a better way and all countries should be able to create their own money and not be debt slaves to the Global Reserve Banks.

Arjay, it seems that anyone in the US can go along to the US Mint
and buy coins made of various materials, or even online.

http://www.usmint.gov/mint_programs/american_eagles/index.cfm?flash=no&action=American_Eagle_Gold

*They are the cause of the GFC.*

Not so Arjay. The Fed are not the cause. The ultimate cause of
the GFC were the US people themselves, for it was they who elected
a dummy like George Bush into office, not just once, but twice.

Bush/Cheney were the ones who thought that regulation was not
required, so appointed Cox to run the SEC. The SEC became a toothless
tiger, fast asleep, as requested by the Govt.

Things like jingle mail, easy loans, etc, were all mandated by
Congress. Frankly some of those Congress members are not the
brightest little buttons around, if you watch them on Bloomberg TV.

Yes, the American public have become poorer and they only have
themselves to blame.

But of course its a human foible to not want to accept and admit
that, just blame the banks, or corporations, or anyone but yourself.

Yabby wrote:
Not so Arjay. The Fed are not the cause. The ultimate cause of
the GFC were the US people themselves

But wasn't it the US Fed that created the easy money for banks to lend to people who could ill-afford the loans they were encouraged to take in the first place?

Kind of like our government giving people who can't save huge wads of cash to get into their own homes, which in the end because of adjusted (up) interest rates and now a carbon tax will send many to the wall.

The way I see it, these banksters and their political cronies create a situation where people feel confident in borrowing more than they should or borrow at all and then the rug is pulled out from under them. They create hopes and then destroy lives, it's a terrible thing.

I guess people should be smarter than that and therefore your argument holds, but then peer pressure, clever marketing, brainwashing, keep up with the Jone's mentality, yadda, yadda blinds these fools.

So a better fiscal system where vested interest can no longer create the boom bust cycles would be in everyone's interest to achieve would it not? Ron Paul seems to think so, sadly many other leaders don't, it's a make money at any cost mentality.