Support HB 430 the “Constitutional Tender Act”

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Posted by Fjhaddad1 on 02/15/09 6:27 PM

I am writing this to inform everyone as best I can about an issue we all should be very concerned with. There is currently a Georgia House Bill being introduced by Representative Bobby Franklin (R-43) called The "Constitutional Tender Act" (HB 430) with the purpose of returning money back to a commodity based currency backed by gold and silver as in accordance with Article 1 Section 10 of the United States Constitution. This is a great first step in gaining back the value in our dollar, which is currently worth about 3 cents as compared to the value in 1913 before we delegated the powers to coin money and regulate the value thereof from the Congress (as sated in Article 1 section 8) to a central bank which we know today as the Federal Reserve. As many of you probably already know, we currently have a fiat based monetary system which means there is no backing of the currency, it is merely printed and brought into the money supply, however many of you may not realize the implications of such a financial system and how it affects you in your daily life.

Without a 100% gold and silver standard the Federal Reserve is able to practice three basic procedures to increase/decrease money supply and therefore decrease the value of our dollar through inflation. First is the buying and selling of government securities such as U.S. Treasury Bonds. When the government needs money to fund projects such as the bailouts all of you have been hearing about, it issues bonds. These bonds are then bought by the Federal Reserve (which is not actually part of the federal government) and the government receives the money needed to fund their projects. Contrary to what you may think, this money was not just sitting there waiting to be used, it was created in computer systems on balance sheets and therefore increases the over all supply of money floating around.

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