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What is Constitutional Money?
A Whig Manifesto ^ | January 30 | Chuck Morse

Posted on 01/31/2012 9:48:58 AM PST by Chuckmorse

Constitutional money is identified in the plain and unambiguous language of the U. S. Constitution itself. Article I, Section 8, clause 4 contains the following clause:

The Congress shall have power to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.

This means that the Congress, elected to represent the interests of the citizen, has the responsibility to regulate the value of our money. The value of money is regulated by how much or how little money is created. If too much money is created than the value and therefore the purchasing power of money goes down. If too little money is created than the value of money goes up, money becomes scarce, and bankruptcies and foreclosures ensue. How should Congress decide how much or how little money should be created? The amount of money created by Congress should not exceed or be less than the Gross National Product of the nation. Money should be issued by Congress based on as close to an exact estimate as possible of what is needed for Americans to transact their business, accumulate and maintain savings, and obtain credit based upon clearly defined terms of credit-worthiness. Congress could issue this money interest-free.

Congress should be permitted this important function within certain laws and constitutional amendments including a balanced budget amendment, a line item veto, and laws that ban the creation of money above set limits. In times of war or national emergency, Congress could create or borrow money or raise taxes. If the money supply exceeded the GNP, immediate inflation would result and the Congress would be held accountable.

Other than coins in denomination of the Dollar, Congress does not presently issue our money or control its value. Instead, that responsibility has been vested in the unelected and unaccountable consortium of private banks and investors known as the Federal Reserve Bank. Our money is controlled by private bankers who issue it to Congress and charge our government interest for the privilege. The Federal Reserve Bank bailed out Fannie Mae and Freddie Mack and the Federal Reserve is presently bailing out European central banks.

Private bankers thus control our money and, by extension, private bankers control our property, our businesses, and our lives. This constitutes, in the real sense, “public ownership of the means of production” which is the definition of Socialism. This was why Karl Marx was in favor of the private central banking system. The private bankers have used their virtual monopoly powers to create money to cause booms and busts and property confiscations which have benefited themselves and their international elite friends and allies.

The Occupy Wall Street movement is right. 1% of people control the vast majority of the wealth of the world. That 1% is either apart of or allied with an international network of privately owned central banks that have caused crushing deficits in industrialized nations and debt in the third world. As Americans, we need to take back our money by demanding that our Congress re-assert its constitutional prerogative to issue currency and to end the practice of fractional reserve banking. Banks should be limited to issuing loans based on assets at hand as opposed to what they do now which is to create money out of thin air.

What would constitutional money mean to the economy and to working people? First and foremost, a dollar would be worth a dollar. The economy would be based upon savings and capital accumulation as opposed to what we have now which is a system based upon debt. This would mean that the purchasing power of the dollar would find its true value and this would improve the financial condition of all Americans including the most destitute.

The government would carefully and gradually pay off the national debt with congressional currency so as to not cause inflation. Foreign debts could be paid off with specie, which is to say with gold, silver, and/or other agreed upon commodities. The massive bureaucracy, and the Welfare State, would be substantially curtailed as it would no longer be required.

TOPICS: Business/Economy
KEYWORDS: currency; federalreserve; money

1 posted on 01/31/2012 9:49:03 AM PST by Chuckmorse
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To: Excellence


2 posted on 01/31/2012 9:52:23 AM PST by Excellence (9/11 was an act of faith.)
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To: All

Looks like the tin foil patrol is out in force to discredit FR as much as possible.

We have the kook paul supporters.
The “mormons eat puppies” ragers. (everyone knows they eat babby bunnies)

The evangelical faith alone litmust testers.

The only thing missing is an evolution thread.

3 posted on 01/31/2012 10:04:28 AM PST by longtermmemmory (VOTE! and
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To: Chuckmorse
As idiotic as suggesting the Congressional power granted for the Post Offices are Unconstitutional unless Congress themselves run and operate and/or deliver the mail.

Congress has the power. Congress has created an organization accountable to them that exercises that power.

Same for Post Offices as it is for money.

Try not to be so ignorant of the Constitution. It is disheartening.

4 posted on 01/31/2012 10:09:25 AM PST by allmendream (Tea Party did not send the GOP to D.C. to negotiate the terms of our surrender to socialism.)
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To: Chuckmorse

Most americans these days have no idea THAT....
Currency IS NOT MONEY... it is a promise of money.... an “I OWE YOU...”, -OR- “a BILL/invoice”.. to the american people.

Only tangible assets are money...

5 posted on 01/31/2012 10:36:32 AM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole...)
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To: hosepipe
Only tangible assets are money...

Sorry, but . . . no.

Money is a medium of exchange. It can be anything that the parties to the transaction agree to use. Gold is no more 'money' than paper is - unless people agree to use it as a medium of exchange.

The difference between paper money (and even more so for electronic 'money') and bits of shiny metal is that the bits of shiny metal are inherently limited. You can't just conjure them up out of things of much less cost than the claimed value of the resulting medium of exchange.

For now, suppliers are willing to exchange whatever they provide (including labor, of you work for a wage/salary) for 'money' as measured in 'dollars' which are typically only entries in a bank computer somewhere. If that ever fails, then little pieces of paper will be no better.

And if *that* ever fails, then gold will be worth a lot less than a loaf of bread, or a pound of meat, or a pound of wool, or a pound of wrought iron. You can't eat gold, it won't keep you warm if you wear it, and you can't build anything useful from it.

Don't confuse the problem of the government consuming too much of the productive effort of society with the medium used to measure it. That's just a distraction.
6 posted on 01/31/2012 11:57:27 AM PST by Phlyer
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To: Chuckmorse
I'm all in on this one. The _only weapon which can, and is, destroying USA is money created out-of-thin-air. Our forefathers knew what real money is, but all of the geniuses of our generation know so much better.
7 posted on 01/31/2012 11:59:45 AM PST by veracious
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To: Chuckmorse
Constitutional money is gold and silver. (That's PERIOD!)

A dollar is still defined as 371.25 grains of fine silver.

Scrap metal coinage used to be referred to as minor coinage and these were only legal tender for very small debts. Now virtually all coinage issued today by the US Government is coined from scrap metal.

The pieces of paper with pictures of dead politicians are not dollars. They never were dollars. They are denominated in dollars.


8 posted on 01/31/2012 12:07:36 PM PST by ml/nj
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To: Phlyer
[ Money is a medium of exchange. ]

WRONG theres already a word for that.. it is "CURRENCY".. Money is something else.. that BACKS the currency..

If the currency is made of silver or gold even copper then both issues are present..

MONEY is always a tangible asset.. or its NOT money..
Only a liberal can call a "good intention" a tangible asset..
NON liberals require "PROOF".. not Utopian good intentions..

proof - a coin produced from polished dies and/or planchlets. Most often each proof coin is struck twice/or more which gives the coin a very sharp degree of detail and mirror like surface. Proof coins are usually made for numismatic purposes, presentations, or souvenirs. Proofs are usually not made to circulated in commerce. Mishandling can lower the value and grade of a proof coin. Proofs are sold by the mint during their year of production at a premium to cover their special manufacturing costs. Sometimes sold only in sets.

9 posted on 01/31/2012 2:09:42 PM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole...)
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To: Phlyer

Proofs are called proofs for a reason...
What that reason “IS” is an education to some people..

10 posted on 01/31/2012 2:17:06 PM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole...)
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To: hosepipe
mon·ey   /ˈmʌni/ Show Spelled [muhn-ee] Show IPA noun, plural mon·eys, mon·ies, adjective noun 1. any circulating medium of exchange, including coins, paper money, and demand deposits.

You can make up your own definitions, and if that makes you happy then go in peace. I'll stick with the standard definitions.

The 'proof' in your definition applies to the 'proof' that a set of coin dies is correct, clear, and can make coins meeting engraving requirements. There are lots of words that have multiple definitions. Yours has nothing to do with the rest of your posting, so I'm not sure why you included it, but if it makes you happy, then go in peace.

I am a liberal in the Washington/Jefferson/Madison sense, but I'm also a physicist and and engineer. I'm very familiar with 'proving' a contention, and you haven't come anywhere close to that with definitions you made up yourself, or that were irrelevant.

So, go in peace . . . but just go away.
11 posted on 01/31/2012 6:15:48 PM PST by Phlyer
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To: Phlyer

[ you haven’t come anywhere close to that with definitions
you made up yourself, or that were irrelevant. ]

And YOU have Not proved your point or addressed mine..
The United States Constitution says that ONLY Gold and Silver are MONEY in this system..

And the founders(writers) of that constitution warned about central banking.. with severe warnings.. for good reason..
“Money” with little or nothing to back it is a delusion..

You are delusional.. suggest a re-think.. or medication..

12 posted on 01/31/2012 7:17:35 PM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole...)
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