RETHINKING OUR MONETARY SYSTEM
By Doug Tjaden
February 15, 2014
There is a strong historical and constitutional case for using gold and silver as money in the United States. Our Founding Fathers understood the value of using honest weights and measures, and understood that gold and silver have historically fulfilled that role.
However, just as with reading Scripture, context is king. We must take into account that our Founders generally viewed money and monetary systems from within their existing Western paradigm. Their understanding of money was based on a system that originated in the 1600s, first with Sweden’s central bank, then soon followed by the establishment of the Bank of England.
This type of monetary system could be expected to arise when the form of government is a monarchy, such as was the case in England in the 1600s. All citizens were subject to the king, and his interests were favored over those of his subjects. Yet the representative republic that was birthed with the adoption of our Constitution sought to eliminate the possibility of a monarchy (or any other form of tyrannical government) rising with the United States.
Unfortunately, this monetary system undermined our Founders’ vision of a nation based on the rule of law, individual liberty, and limited government. Rather than implement a completely new monetary system that matched their vision, they enacted constitutional limitations that attempted to mitigate the possible abuse of the existing system.
Article 1 Section 8 of the Constitution expressly limited the power of the general government. The Coinage Act of 1792 defined the dollar as a specific weight of silver. However, these and other limitations have proven to be lacking. Leaving in place a monetary system that was created to serve the government’s needs above all others has proven to be our Constitution’s fatal flaw.
The battle to bring central banking into the United States is well documented. Those driven by greed and power knew that a central bank dedicated to meet the needs of government would allow them to profit handsomely as they worked to centralize power in the general government. Today, this reality is self-evident. Since the creation of the Federal Reserve in 1913, the Federal government has grown far beyond its constitutional boundaries. The people are losing their representative voice. Individual liberties are being systematically destroyed. And the tremendous debts wracked up by the Federal government have made all of its citizens debt slaves.
These facts alone demand that we completely replace our present monetary system with one that serves the needs of a representative republic.
Building on our Founding Fathers’ Vision
Today, we must have the courage to view money and monetary systems through a new paradigm. Gold and silver will provide the anchor for this new monetary system, giving it constitutional authority. Their historical role as an honest weight and measure will provide the stability and trust needed for it to endure throughout generations. However, if we insist on merely re-establishing a form of the gold standard, we will only succeed in returning to the starting point of the flawed monetary system that has nearly destroyed our representative republic.
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We must build on the foundation of gold and silver and allow technology and innovation to birth a modern, robust, and flexible monetary system that places the needs of people ahead of the needs of government. Governments must learn to operate within the constraints such a system places on them. Their incentive to abuse the monetary system for immoral and unjust purposes will be minimized. And a liberated people will once again be set free to enjoy liberty and prosperity.
Along side putting the needs of people first, a new monetary system must address the problems of unlimited debt-based fiat money, interest-producing scarcity of money, monopoly protection of banks, and the negative incentives arising from allowing banking to be a “for profit” industry.
All of these problems can be solved. However before we innovate and advocate for these major changes to be made, more Americans need to be educated on the problems. Please do your part and pass the word on.
© 2014 Doug Tjaden - All Rights Reserved
Doug Tjaden is founder and Executive Director of the Christian Liberty Project. He is the author of “Fool’s Gold - How The Traditions of Men Have Replaced God’s Honest Money”, and is a regular speaker for the Tenth Amendment Center’s Nullify Now! tour. Doug also co-hosts the second hour of The Gun Show, with Matt Canovi, on KSGF, in Springfield, Missouri.
Doug spends his time and energy fighting to re-establish honest money through state led initiatives, and to awaken and engage the Christian community to fight for our spiritual, civil, and economic liberty. He regularly blogs at dougtjaden.com.