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Lee Rogers Funny Money Report
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Defeat the coin act of 2006
Defeat the Coin Act of 2006
Lee Rogers
Over this past summer a bill was introduced in the U.S. House of Representatives called the Currency Overhaul for an Industrious Nation. This bill is also referred to as the Coin Act of 2006 or House Resolution 5818. Introduced by Representative Jim Kolbe from Arizona the bill was referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology this past August. The purpose of the bill according to the text of the bill itself is to modernize the legal tender of the United States, and for other purposes. The mainstream media has sold this bill to the American people as legislation that will move to get rid of the penny. Even though that is one of the proposals included in the bill, there are much more significant things in the bill which makes me dead set against it. I hope this bill gets defeated because it further increases the power of the Federal Reserve.
Full Text: Coin Act of 2006 (HR 5818)
Jim Kolbe's Press Release on Coin Act of 2006
First, let’s address the media hype around the penny situation. In Section 3 of this bill, a system is proposed for rounding cash transactions so if a transaction sum ends with 1, 2, 6 or 7 cents as the final digit the total sum will be rounded down to the nearest amount divisible by 5. The total sum will be rounded up to the nearest amount divisible by 5 if a cash transaction sum ends with 3, 4, 8 or 9 cents. This would effectively eliminate the use for the penny. But realistically, there is no need to get rid of the penny if we examine why the penny is in the situation it is today. Currently the melt value of copper and zinc pennies are worth more than the actual face value of the coins. A sure fire sign of inflation is when the melt value of coins becomes worth more than the face value. Right now, pennies and nickels both fall under that category. This bill is proposing to get rid of the penny because of inflation which is a totally backwards way of solving the problem. What they should be doing is getting rid of what’s causing the inflation which is the corrupt Federal Reserve that devalues our currency by creating an untold excess of Federal Reserve Notes out of thin air. Once the Federal Reserve is eliminated, the U.S. Treasury could print their own U.S. Notes backed 100% by gold or silver bullion. A return to honest money where U.S. Dollars represent silver and U.S. Eagles represent gold would ensure that there are no inflation problems. This money would be created interest free for the benefit of the American people. With no inflation, you wouldn’t have to get rid of the penny because the melt value would never exceed the face value. A penny would be worth whatever its melt value is and would be traded based off of fair free market principles driven by an honest money system.
Now that we’ve proposed a better solution that would enable us to keep the penny, let’s look at what this bill is really all about. It is about providing the Federal Reserve with even more power by transferring two important institutions from control of the U.S. Treasury to control of the Federal Reserve. Section 8 of this bill transfers the United States Mint and the Bureau of Engraving and Printing from control of the U.S. Treasury to control of the Federal Reserve Board. I can’t begin to even describe how terrible I think this is. These are the two government institutions that are responsible for creating and printing the actual money. The U.S. Mint makes all coinage for this country and the Bureau of Engraving and Printing prints Federal Reserve Notes, U.S. passports, Treasury securities and other security documents. With these two institutions under the direct operational control of the Federal Reserve Board, the Federal Reserve has even greater control over the entire U.S. monetary system. The Federal Reserve is a private banking cartel and is not accountable to the people. They hold a couple of dog and pony shows each year with the Federal Reserve Chairman testifying in front of Congress to make the people think that the Federal Reserve is accountable to them. The Federal Reserve however is not accountable to anyone in the government and they do whatever they want. The Federal Reserve Chairman is actually nominated by the President from a list of candidates prepared in advance by the banking cartel themselves. The whole approval process is nothing more than staged theatrics to make the American public buy into all of this craziness. If the Federal Reserve Chairman were actually accountable to the people, why isn’t the Federal Reserve Chairman a cabinet level position that reports directly to the President? This very reason is why all powers of monetary creation should rest with the U.S. Treasury.
Abraham Lincoln had the U.S. Treasury print “Greenbacks” to fund the Union Army in the Civil War. Approximately 100 years later, John F. Kennedy signed an executive order to have the U.S. Treasury print U.S. Notes. With the actual government entities that physically create and print the money being put under control of the Federal Reserve, it could very well make it impossible for any future U.S. President to do what Lincoln and Kennedy did. With the Bureau of Engraving and Printing no longer under control of the government, I question if the government barring the elimination of the Federal Reserve would be able to again provide the American people with honest currency like the “Greenbacks” and U.S. Notes.
The implications of the U.S. Mint being put in the hands of the banking cartel is another major problem. If the Federal Reserve gets control of it, I wonder how long it will take before they order a stop to the production of collectible U.S. gold coins. Or for that matter, how long would it take for them to eliminate the production of all U.S. coins? Obviously if rampant inflation continues, we will either see a change in the composition of the coins or an elimination of them.
Regarding coin composition changes, this bill also has a plan to look into just that. Section 6 of this bill calls for the Comptroller General to conduct a study on the feasibility, practicality and cost effectiveness of using alternative metal compositions for circulating U.S. coins. All this is saying is that the face value of every U.S. coin in circulation will become worth less than the melt value and that they need to change the composition of the coinage into something less valuable. The Comptroller General is simply going to provide analysis and suggestions as to what the coin composition should be. This is essentially preparation for a repeat of what happened to U.S. minted silver coins in the 1960’s and 1970’s. Personally, I take all of the pocket change I get and throw it into a big bucket. I believe some day, that the pennies, nickels, dimes and quarters that circulate today will eventually be much more valuable than their current face value. If you want to get really crazy, go to a bank and ask them to exchange your worthless Federal Reserve Notes for a bunch of nickels. It is a risk free investment since the melt value of U.S. minted nickels is currently worth 138% more than its face value.
Coinflation.Com - Melt Value of U.S. Coins
The bill also calls for the replacement of $1 Federal Reserve Notes with $1 coins as well as a redesign of the commemorative $2 Federal Reserve Note. Still think the money changers are being tough on inflation? If so, why is this bill proposing the $1 Federal Reserve Note being phased out in favor of a $2 Federal Reserve Note and a $1 coin? If they were tough on inflation there’d be no need to phase out a smaller unit note for a larger unit note.
The bottom line is this, the U.S. Mint and the Bureau of Engraving and Printing perform Constitutional functions of the U.S. government. These powers should not be transferred to the Federal Reserve. It is bad enough that this institution has been given a private monopoly on printing our currency. If this bill passes and gets signed by the President, the Federal Reserve will also be given a private monopoly on making our coins and even printing our Treasury securities. This bill takes away power from the U.S. Treasury and gives it to a private banking cartel. They will probably say that this bill will eliminate bureaucracy and make government more efficient but I strongly disagree. Money creation is one of the few Constitutional functions of the U.S. government. Any deviation from our government having complete control over our monetary system makes government less efficient. The Federal Reserve has already turned the American people and our government into slaves of a never ending debt cycle because the power of currency issuance was given to them. They’ve bought off both the Republican and Democrat parties. I’m all for small government but let’s look at eliminating the government institutions that do not perform any Constitutional functions before doing something like this.
I sincerely hope this bill gets defeated. Please tell your elected officials that the Federal Reserve should be abolished and not the penny. At least the good news is that with all of this financial madness surrounding us it is easy to know where to put your money. My portfolio of gold and silver stocks have been performing very well this past week with the recent upswing in both metals. I fully expect gold and silver to continue moving higher in the short term. I’ve also heard anecdotal evidence that Platinum coins are becoming difficult to obtain. For those with some spare cash lying around, it might be a good idea to look into obtaining some.
November 25, 2006
Lee Rogers
Funny Money Report
www.funnymoneyreport.com
Full Text: Coin Act of 2006 (HR5818)Full Text Coin Act 2006 (HR5818)Full Text of 2006 Coin Act (HR5818)
Defeat the Coin Act of 2006
Lee Rogers
Over this past summer a bill was introduced in the U.S. House of Representatives called the Currency Overhaul for an Industrious Nation. This bill is also referred to as the Coin Act of 2006 or House Resolution 5818. Introduced by Representative Jim Kolbe from Arizona the bill was referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology this past August. The purpose of the bill according to the text of the bill itself is to modernize the legal tender of the United States, and for other purposes. The mainstream media has sold this bill to the American people as legislation that will move to get rid of the penny. Even though that is one of the proposals included in the bill, there are much more significant things in the bill which makes me dead set against it. I hope this bill gets defeated because it further increases the power of the Federal Reserve.
Full Text: Coin Act of 2006 (HR 5818)
Jim Kolbe's Press Release on Coin Act of 2006
First, let’s address the media hype around the penny situation. In Section 3 of this bill, a system is proposed for rounding cash transactions so if a transaction sum ends with 1, 2, 6 or 7 cents as the final digit the total sum will be rounded down to the nearest amount divisible by 5. The total sum will be rounded up to the nearest amount divisible by 5 if a cash transaction sum ends with 3, 4, 8 or 9 cents. This would effectively eliminate the use for the penny. But realistically, there is no need to get rid of the penny if we examine why the penny is in the situation it is today. Currently the melt value of copper and zinc pennies are worth more than the actual face value of the coins. A sure fire sign of inflation is when the melt value of coins becomes worth more than the face value. Right now, pennies and nickels both fall under that category. This bill is proposing to get rid of the penny because of inflation which is a totally backwards way of solving the problem. What they should be doing is getting rid of what’s causing the inflation which is the corrupt Federal Reserve that devalues our currency by creating an untold excess of Federal Reserve Notes out of thin air. Once the Federal Reserve is eliminated, the U.S. Treasury could print their own U.S. Notes backed 100% by gold or silver bullion. A return to honest money where U.S. Dollars represent silver and U.S. Eagles represent gold would ensure that there are no inflation problems. This money would be created interest free for the benefit of the American people. With no inflation, you wouldn’t have to get rid of the penny because the melt value would never exceed the face value. A penny would be worth whatever its melt value is and would be traded based off of fair free market principles driven by an honest money system.
Now that we’ve proposed a better solution that would enable us to keep the penny, let’s look at what this bill is really all about. It is about providing the Federal Reserve with even more power by transferring two important institutions from control of the U.S. Treasury to control of the Federal Reserve. Section 8 of this bill transfers the United States Mint and the Bureau of Engraving and Printing from control of the U.S. Treasury to control of the Federal Reserve Board. I can’t begin to even describe how terrible I think this is. These are the two government institutions that are responsible for creating and printing the actual money. The U.S. Mint makes all coinage for this country and the Bureau of Engraving and Printing prints Federal Reserve Notes, U.S. passports, Treasury securities and other security documents. With these two institutions under the direct operational control of the Federal Reserve Board, the Federal Reserve has even greater control over the entire U.S. monetary system. The Federal Reserve is a private banking cartel and is not accountable to the people. They hold a couple of dog and pony shows each year with the Federal Reserve Chairman testifying in front of Congress to make the people think that the Federal Reserve is accountable to them. The Federal Reserve however is not accountable to anyone in the government and they do whatever they want. The Federal Reserve Chairman is actually nominated by the President from a list of candidates prepared in advance by the banking cartel themselves. The whole approval process is nothing more than staged theatrics to make the American public buy into all of this craziness. If the Federal Reserve Chairman were actually accountable to the people, why isn’t the Federal Reserve Chairman a cabinet level position that reports directly to the President? This very reason is why all powers of monetary creation should rest with the U.S. Treasury.
Abraham Lincoln had the U.S. Treasury print “Greenbacks” to fund the Union Army in the Civil War. Approximately 100 years later, John F. Kennedy signed an executive order to have the U.S. Treasury print U.S. Notes. With the actual government entities that physically create and print the money being put under control of the Federal Reserve, it could very well make it impossible for any future U.S. President to do what Lincoln and Kennedy did. With the Bureau of Engraving and Printing no longer under control of the government, I question if the government barring the elimination of the Federal Reserve would be able to again provide the American people with honest currency like the “Greenbacks” and U.S. Notes.
The implications of the U.S. Mint being put in the hands of the banking cartel is another major problem. If the Federal Reserve gets control of it, I wonder how long it will take before they order a stop to the production of collectible U.S. gold coins. Or for that matter, how long would it take for them to eliminate the production of all U.S. coins? Obviously if rampant inflation continues, we will either see a change in the composition of the coins or an elimination of them.
Regarding coin composition changes, this bill also has a plan to look into just that. Section 6 of this bill calls for the Comptroller General to conduct a study on the feasibility, practicality and cost effectiveness of using alternative metal compositions for circulating U.S. coins. All this is saying is that the face value of every U.S. coin in circulation will become worth less than the melt value and that they need to change the composition of the coinage into something less valuable. The Comptroller General is simply going to provide analysis and suggestions as to what the coin composition should be. This is essentially preparation for a repeat of what happened to U.S. minted silver coins in the 1960’s and 1970’s. Personally, I take all of the pocket change I get and throw it into a big bucket. I believe some day, that the pennies, nickels, dimes and quarters that circulate today will eventually be much more valuable than their current face value. If you want to get really crazy, go to a bank and ask them to exchange your worthless Federal Reserve Notes for a bunch of nickels. It is a risk free investment since the melt value of U.S. minted nickels is currently worth 138% more than its face value.
Coinflation.Com - Melt Value of U.S. Coins
The bill also calls for the replacement of $1 Federal Reserve Notes with $1 coins as well as a redesign of the commemorative $2 Federal Reserve Note. Still think the money changers are being tough on inflation? If so, why is this bill proposing the $1 Federal Reserve Note being phased out in favor of a $2 Federal Reserve Note and a $1 coin? If they were tough on inflation there’d be no need to phase out a smaller unit note for a larger unit note.
The bottom line is this, the U.S. Mint and the Bureau of Engraving and Printing perform Constitutional functions of the U.S. government. These powers should not be transferred to the Federal Reserve. It is bad enough that this institution has been given a private monopoly on printing our currency. If this bill passes and gets signed by the President, the Federal Reserve will also be given a private monopoly on making our coins and even printing our Treasury securities. This bill takes away power from the U.S. Treasury and gives it to a private banking cartel. They will probably say that this bill will eliminate bureaucracy and make government more efficient but I strongly disagree. Money creation is one of the few Constitutional functions of the U.S. government. Any deviation from our government having complete control over our monetary system makes government less efficient. The Federal Reserve has already turned the American people and our government into slaves of a never ending debt cycle because the power of currency issuance was given to them. They’ve bought off both the Republican and Democrat parties. I’m all for small government but let’s look at eliminating the government institutions that do not perform any Constitutional functions before doing something like this.
I sincerely hope this bill gets defeated. Please tell your elected officials that the Federal Reserve should be abolished and not the penny. At least the good news is that with all of this financial madness surrounding us it is easy to know where to put your money. My portfolio of gold and silver stocks have been performing very well this past week with the recent upswing in both metals. I fully expect gold and silver to continue moving higher in the short term. I’ve also heard anecdotal evidence that Platinum coins are becoming difficult to obtain. For those with some spare cash lying around, it might be a good idea to look into obtaining some.
November 25, 2006
Lee Rogers
Funny Money Report
www.funnymoneyreport.com
Full Text: Coin Act of 2006 (HR5818)Full Text Coin Act 2006 (HR5818)Full Text of 2006 Coin Act (HR5818)
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Comments
Regards,
Wayne
Wayne
www.waynedriskillminiatures.com
Thanks
This is one area where I break from the traditional Libertarian ideal. I just don't see how, in this day and age, backing money by precious metal is supposed to make it more stable or less inflationary. If anything, given the wild swings in precious metal prices in the past few decades, it would make the money dramatically more unstable, to the detriment of the economy.
Precious metal backed money barely worked in the 19th century; in the 21st century it's hopeless. Fiat currency, backed by the faith of the government, works just fine, if only we had a government that was fiscally responsible. Which brings me back to Libertarianism...