The True Gold Standard (Second Edition)
Thank you for the opportunity to testify in support of H.R. 1098, The Free Competition in Currency Act of 2011. I am honored to have been invited.
I know it must sound like hyperbole, but I believe that H.R. 1098 is perhaps the most important piece of legislation to ever come before the Congress, because H.R. 1098 is necessary to make a transition from the certain catastrophic collapse of our unauthorized (by the Constitution), dishonest and unstable legal tender irredeemable paper-ticket-electronic monetary system.
While I suspect that this committee will be most interested in how this bill will affect jobs, debt, economic growth, the capital markets, pensions, and a host of other important and timely topics, I will focus in my opening statement on where we are headed and on the dishonesty of our present system by highlighting some of the many misrepresentations about our money. There are three takeaway points. Our current monetary system is:
1. Not in conformity with the Constitution;
2. Dishonest; and,
3. Unstable and in the process of blowing up, perhaps while I am testifying here today.
One can be certain of a complete collapse because there is no longer any market-based self-correcting mechanism providing negative feedback against increasing the money supply, increasing debt, and increasing leverage. Any system without a self-correcting mechanism is unstable and blows up.