18 Feb 11
Originally posted by KazetNagorraIf he wants to cite the Legal Tender Act I will know where he is coming from, but why is he pointing to the constitution?
I think no1 is claiming that a competing currency which would also be legal tender is unconstitutional. I don't think anyone is objecting to the existence of World of Warcraft currency.
Nothing in Article I, Section 10 uses the words legal tender.
18 Feb 11
Originally posted by no1marauderArticle I Section 10 of the Constitution forbids the States from making anything but gold and silver a legal tender in payment of debts. States are not required to enact legal tender laws.
Of course not; it's a crackpot, Metal Brainian interpretation of rather clear provisions barring states from doing exactly what these right wing nuts propose.
Here's the statute referenced: http://codes.lp.findlaw.com/uscode/31/IV/51/II/5118
If you find anything that modifies the express provision in Article I, Section 10 banning States from creating their own currency, your eyesight is way better than mine.
18 Feb 11
Originally posted by Metal BrainHow would this work, would they have a fixed exchange rate to the dollar or a flexible one? Which one is "good" for the consumer?
Article I Section 10 of the Constitution forbids the States from making anything but gold and silver a legal tender in payment of debts. States are not required to enact legal tender laws.
How is that breaking the "monopoly of the Fed"? Why would the Fed "lose"?
18 Feb 11
Originally posted by PalynkaIsn't it obvious? A fixed exchange rate would not be competitive.
How would this work, would they have a fixed exchange rate to the dollar or a flexible one? Which one is "good" for the consumer?
How is that breaking the "monopoly of the Fed"? Why would the Fed "lose"?
Here is a link to a Ron Paul article that explains things well.
http://www.ronpaul.com/2009-12-10/break-the-monopoly-ron-paul-introduces-hr-4248-the-free-competition-in-currency-act/
18 Feb 11
Originally posted by Metal BrainSo he wants to have a currency with its price fixed in gold along a fluctuating dollar and says this would help price stability?
oops. This is the link I wanted to post.
http://www.ronpaul.com/2008-09-28/ron-paul-on-legal-tender-laws/
They are both good reading though.
Have you seen how the value of gold in dollars oscillates? Why would anyone want that?
This is real gold prices:
http://4.bp.blogspot.com/_otfwl2zc6Qc/TDdzieaNY4I/AAAAAAAAN50/QU-V5nKhtZI/s1600/gold.jpg
This is adjusted for inflation. This means that deflation and inflation in your new currency would be completely at the whim of the world gold markets. I'm sure you think that would be great, but nobody sane would prefer something that volatile.
18 Feb 11
Originally posted by Metal BrainIf the States want to print play money, let them go ahead. If they don't require people to honor it, no one will so they'll be wasting their time (and REAL money).
Article I Section 10 of the Constitution forbids the States from making anything but gold and silver a legal tender in payment of debts. States are not required to enact legal tender laws.
18 Feb 11
Originally posted by PalynkaThis is why.
So he wants to have a currency with its price fixed in gold along a fluctuating dollar and says this would help price stability?
Have you seen how the value of gold in dollars oscillates? Why would anyone want that?
This is real gold prices:
http://4.bp.blogspot.com/_otfwl2zc6Qc/TDdzieaNY4I/AAAAAAAAN50/QU-V5nKhtZI/s1600/gold.jpg
This is adjusted f ...[text shortened]... . I'm sure you think that would be great, but nobody sane would prefer something that volatile.
http://www.kitco.com/charts/livegold.html
Gold is holding it's value while the dollar is not. Which would you choose?
18 Feb 11
1 edit
Originally posted by Metal BrainIf the States try to make paper money that is legal tender, it's unconstitutional. Did you bother to read Article I, Section 10?
I never said that.
EDIT: I'll help:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.