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June 7, 2011

Utah Adopts the Ron Paul Plan to Lower Gas Prices – And Other Costs

I sent the following letter to my Represenatives and Senators telling them to support Ron Paul’s Free Competition in Currency Act. 

You may copy this, or if you prefer, use this information to write a letter in your own words . . .

More and more Americans are losing faith in the Federal Reserve’s control of the money supply, with good reason. Take gasoline as an example . . .

 * Since 2008, oil prices have risen 150% in Fed dollars, compared to 96% in Canadian dollars.
 * The Republican staff of Congress’ Joint Economic Committee estimates that the Fed’s recent Quantitative Easing policy (a.k.a., legalized counterfeiting) accounts for 55 cents in the price of a gallon of gasoline .

 * Gasoline prices would be 27 percent lower today if the dollar had held its value relative to the euro over the last decade.

To put that last point in clearer terms — gas could and should be be less than $3 per gallon right now.

It’s not just gasoline; this inflationary policy causes price hikes in everything else. And as the dollar’s value falls, so does the value of my personal savings.

Is it fair for anyone’s finances to be at the mercy of the unelected bureaucrats of the Fed?

Well, at least one state doesn’t think so.

In March, Utah passed a law granting legal tender status to U.S.-minted gold and silver coins. Under this law . . . 

 * Gold and silver coins can be exchanged for Federal Reserve notes without state sales or capital gains taxes
 * There will be a study on establishing an alternative form of legal tender in the state
 * There will be freedom of choice; no one will be compelled to accept the gold or silver coins as payment

As CNN reported . . . 

 * Eliminating taxes on the exchange of the coins puts them on the same playing field as paper currency . . .
 * Which creates the possibility that “banks might step in and create accounts backed by gold and silver coins”

In fact, one business is creating a gold and silver depository that “issues a debit-like card to make purchases backed by your [gold and/or silver] holdings.”

And legislators in at least a dozen other states are working on similar bills.

This is exciting! This is a path for regular Americans to escape the brutality of inflation.

But the states can only do so much. They can’t override federal laws that hinder free choice in currency. That’s why we urge you to support Ron Paul’s Free Competition in Currency Act.

This bill . . .

 * Ends the federal legal tender law that gives the Federal Reserve a monopoly on the money supply
 * Ends the federal monopoly over the minting of coins
 * Prohibits federal and state taxes on the sale or exchange of precious metal coins and bullion

And even those who don’t own gold and silver will benefit from monetary competition because owners of gold or silver will have incentive to start making tax-free purchases with their coins. Faced with this competition, the Fed will be induced to stop its inflationary policies. Prices will stabilize, and consumer purchasing power might even increase, which will benefit the poor and elderly most of all.

Do you want me to believe that you support . . .

 * stifling monopoly or that you’re for vibrant competition?
 * subjecting Americans to the crushing force of inflation or that you want to help me protect my savings?

If you chose the latter option for these two questions, then please prove it by co-sponsoring Ron Paul’s “Free Competition in Currency Act” (HR 1098).


You can send your letter using’s Educate the Powerful System.

And please help us build awareness about this important issue. “Like” us on Facebook and share this with your friends.

Jim Babka

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