The Free Competition in Currency Act is a much better alternative to Chris Dodd’s financial regulation bill. Dodd’s bill will make things worse . . .
* Its so-called “consumer protection” bureau will simply create regulations that conflict with regulations formulated by other agencies
* The bill “vastly expands the government’s power to do arbitrary things — like liquidate bank x but let bank y stand.”http://www.csmonitor.com/Money/ThinkMarkets/2010/0319/Dodd-financial-reform-bill-goes-too-far
* Large banks “will be seen as safer to deal with since they will be deemed protected by the government. That will cause more individuals and companies to put their money with large banks, making the biggest banks even bigger.”http://www.time.com/time/business/article/0,8599,1978531,00.html#ixzz0kWFpJfot
* The bill “will do nothing to put restrictions on two entities that were proximate causes of the housing bubble, the government-sponsored Fannie Mae and Freddie Mac, and instead hit Main Street businesses and entrepreneurial firms that had nothing to do with the crisis.”
http://cei.org/articles/2010/03/16/dodd%E2%80%99s-main-street-punishment-bill
* And the bill will force prudent firms to pay into a $50 billion bailout fund to subsidize the risky behavior of irresponsible firmshttp://cei.org/articles/2010/03/16/dodd%E2%80%99s-main-street-punishment-bill
Creating new armies of regulators who will write thousands of pages of new regulations will only make it harder to do business in America. This may be what you want, because it will make politicians more important and powerful, but it isn’t what we need.
Moreover, Dodd’s bill doesn’t get to the heart of the problem, which is the boom-and-bust cycle the Federal Reserve creates when it expands and contracts the money supply.
We can end the boom-and-bust cycle, and achieve greater openness and transparency, with LESS regulation, not more. The Free Competition in Currency Act achieves this by allowing individuals to “opt out” of bad Federal Reserve policies. Here’s how:
* Legal tender laws will be repealed. Individuals will be free to use mutually-agreed-to forms of money, not just Federal Reserve Notes (dollars)
* Gold, silver, or other forms of money the people may want, will compete with the Fed’s dollars on an equal footing
* Because no-one can inflate metal-backed money, their long-term value is more stable than the Fed’s dollars, which have lost 95% of their value since the Fed was created in 1913
* In order to compete, the Fed will have to stop inflating their dollars, and banks in the Federal Reserve System will be forced to be open and transparent in order to attract skeptical depositors
* This means the boom-and-bust cycle will end and banks will become more reliable
Let’s create REAL reform and transparency in our markets. Oppose Dodd’s financial regulation bill and pass the Free Competition in Currency Act instead.
