Abolish the Fed?

posted by Nima

November 19, 2008 · Posted in Monetary Economics, Politics

I think the easiest, and most convincing proposal toward sound money is the following: Don’t abolish the Fed. Leave it in place. But allow other individuals to compete in the business of money production. Don’t prosecute them for producing their own money. Don’t force individuals to accept paper fiat money via legal tender laws. Leave it up to them to decide which money to accept and which not to accept. Let the consumers decide whose money they prefer. Don’t tax them when a high quality money that they are using becomes more expensive in terms of another, inferior money. Get rid of capital gains taxes on gold and silver.

The crucial problem that is rarely ever discussed is not the money printing by the fed. It is the fact that this money is forced upon the people, and that competing with it is outlawed. Let the Fed suffer the humiliation of going out of business for its inability to compete…

Abolish counterfeiting laws.
Abolish legal tender laws.
Abolish capital gains taxes on gold and silver.