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Comment: Yes

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In reply to comment: That's what I said... (see in situ)


I read what you said. I'll quote it exactly:

"The goal of eliminating the fed would not give congress the power to print money (aka bills of credit), rather it would only give them power to coin silver and gold and to regulate the value thereof."

Bold emphasis mine. Read what you wrote. You said essentially the goal of eliminating the Fed wouldn't give congress X power, rather it would give them Y power.

That is not correct. Eliminating the Fed wouldn't give Congress any new power. The only power Congress has comes from the Constitution, and eliminating the Fed doesn't change that. The only thing that can change the Constitution is proper amendment.

So what I tried to point out is Congress already has power to coin money today, even with the Fed in existence, because the Constitution says so.

Next, yes, Congress can "print" money. Read the Constitution word for word. It says Congress has power to coin money. It does not say "by taking metals and striking them accordingly". That's what you say. Congress can coin money and regulate the value thereof. That means they can make a coin with whatever they want in it, whether it's all copper, or all silver, some silver, some gold, or if it's only paper too. The catch comes in Section 10 of that article which says the States can't make anything but gold or silver legal tender. So the requirement of gold or silver applies to the States, not Congress.

It may sound confusing, but what the Founders set up was brilliant. It allows flexibility while still protecting Americans with sound money. Effectively it allows for competing currency. Ideally, what Congress would do is coin money out of gold and silver, exactly like they do now with U.S. Eagle coins. The States could then make those federal Eagle coins legal tender. That would be constitutional, and Americans would happily use them I'm sure. At the same time Congress could coin other types of money, WITHOUT any gold or silver anywhere to be found, for example, like copper pennies. The key is that the States couldn't make those copper pennies legal tender. Americans would be free to use them and assign any value to them desired, but those pennies wouldn't automatically benefit from having value from the court system (for payment of debt). So, in effect, the pennies might be completely worthless, or the free market might give them value because there were a fixed number of them, for example.