Pitts introduces bill to ban U.S. currency in state
State Rep. Mike Pitts has introduced a bill that would require South Carolina to abandon U.S. currency as legal tender.
Dr. Neal Thigpen, a left wing communist radical thinks this bill is ridiculous.
Let's ignore for the moment that as a left wing communist radical, Dr. Neal Thigpen has a bias towards dishonest government and large government.
Instead let's explain why the communists are upset with this kind of bill.
Switching from paper money to gold or silver is the only way to force honesty in government. It is also the only way to force the reduction in size of government.
The problem with abandoning the dishonest paper currency (print more whenever you need more=counterfeiting) of the United States, and switching to honest gold and silver, is that it removes one of the most important ways the federal government has of stealing money from the citizens. More important than even taxation.
For simplification purposes, let us say that an economy consists entirely of $100 of currency, 10 oranges, 9 individuals and 1 government, with the money evenly divided among them ($10 each). Under this scenario, each orange costs $10.00 each. Each individual is able to buy 1 orange. Now let us say that the government decides to print an additional $100. The government now has $110, and the rest of the individuals now have $90. For a total of $200.
What do you think happens to the prices of oranges, and the distribution of ownership of oranges? If the price of oranges remains unchanged, the government can rush in and buy all the oranges, leaving nothing for the individuals. If the seller of oranges realizes the increased amount of currency, he can raise the price to $20 per orange. The seller will now be as well off as he was before. However, now the government can still 5 oranges, and none of the individuals can afford any oranges.
What has happened, is that the government which doesn't produce anything, but only consumes, had taken part of the production out of society for itself. Leaving the general public much worse off than before.
This is why all governments prefer paper money to gold and silver. This is why you should be suspicious of the motives of any one who supports paper money instead of gold and silver coin.
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