The Fed Needs Competition, Not Rules
by Theo Bishop
Posted September 10, 2017
Not rules, but Competition…. an approach suggested by Nobel Prize-winning economist F.A. Hayek and championed by arch-Fed critic Rep. Ron Paul. While his “Audit the Fed” bill continues to come up for vote every few years, it’s his The Free Competition in Currency Act that would have the biggest impact on US monetary policy. The bill is simple, it eliminates legal tender laws and taxes on metal historically used as currency – including gold and silver. It could also be updated to include crypto-currencies such as Bitcoin.
The beauty of this approach is that it would painless. Instead of trying to figure out the larger ramifications of abolishing the Fed, or risk forcing it to choose a rule that won’t hold up in the future, it would simply allow consumers the option to use alternative currencies in their daily lives. For those concerned about the long-term consequences of the Fed’s monetary policy, it provides a parachute – without forcing the Fed to change its course. More…