Planning for AFTER the Federal Reserve's Inevitable Demise

There are several ways to "end the Fed", that is, to finally put an end to the fiscally destructive and economically immoral Federal Reserve System. There are top-down efforts, like Rep. Paul Broun's "End the Fed" and Sen. Rand Paul's "Audit the Fed" bills (both originally Rep. Ron Paul's bills); and there are bottom-up efforts, such as the Constitutional Tender Act. There is also the "long run" approach: due to the very nature of the Fed's destructive and immoral policies, it will eventually implode and collapse under the weight of its own inflationary fiat money system (perhaps a corollary to Keynes' reassurances that "in the long run, we're all dead").

Regardless of how it's accomplished, the eventual demise of the Federal Reserve is inevitable. The question for those who recognize that truth, then, must be: with what monetary system will we replace it? As Ron Paul has repeatedly been asked, "If we get rid of the Fed, what do we put in its place?"

While the most obvious short answer (which Rep. Paul often used) is "Nothing!", we really should discuss what ought to arise in place of the worthless Federal Reserve Notes that everyone uses now. In this article from a year ago, Doug Tjaden (Founder & Executive Director of the Christian Liberty Project) discusses the need for States to implement Constitutional tender laws now, in anticipation of the end of the Fed then.

---

So They Audit The Fed. Then What?
by Doug Tjaden

Let’s say for the moment that the Senate follows the House’s lead and calls for a full audit of the Federal Reserve. Let’s also dream that President Obama signs it. What are the consequences?

Rumors are, for decades the Federal Reserve has been engaged in the highest form of crony capitalism, big bank favoritism, purchase of politicians, nation building, and the bailout of foreign banks, corporations and governments.  If this is found to be true, it will add to the growing awareness of the Federal Reserve’s other nefarious activities. These include the fact the Fed and its debt-based fiat monetary system is confiscating the wealth of this nation and concentrating it in the hands of a few powerful interests. Not to mention the Fed’s money printing which enables the TSA, NSA, EPA, FDA, NEA, and USDA to unconstitutionally regulate our liberties into oblivion. Indeed, an audit could be the tipping point, generating enough public outcry to finally “end the Fed.”

It begs the question, “What’s next?”

The Federal Reserve Note is the officially recognized currency of the land, having long ago usurped the constitutional dollar as our monetary unit. The Federal Reserve system, like it or not, is responsible for insuring the flow of credit and currency around the nation and the world. Should the decision be made to end the Fed, it would take years to unwind its tentacles from the global economy and to replace Federal Reserve Notes with another currency.

As we call to “repeal and replace” the Federal Reserve System, it might be wise to think ahead and begin building that replacement system now. Unlike Obamacare, there isn’t an existing system which we can fall back on. All fifty states could nullify Obamacare tomorrow and there would be little impact on healthcare. End the Fed tomorrow, and like it or not, the global economy grinds to a halt.

The replacement monetary system that will insure the greatest long term protection of individual liberty is one built on limited regulation and sound money. The former must be dealt with at both the state and national level. The latter must be initiated by the states, and the states must maintain control over it. Centralizing monetary policy has been an abject disaster. The power it wields is too great for any one group of individuals or governmental authorities to handle. Without a broad set of checks and balances, it would fall into abusive hands again.

Seamless integration of a decentralized monetary system built on constitutional tender and controlled by the states is possible. It is what our founders intended. The first step is for states to pass sound money legislation, reinstating gold and silver coin as a tender in payment of debts. We had better begin building the replacement system soon. If you realize it or not, the unstoppable process to end the Fed is already underway as world markets prepare to reject the endless piles of debt-money the Fed is creating. And we are far from ready for it.

READ THE ORIGINAL ARTICLE HERE...

"The Constitutional Tender Movement in Georgia"

by William Greene, Ph.D.
ConstitutionalTender.com

---

In early 2009, I was teaching a course on American Government at Gainesville State College here in Georgia. As I was going over with my students the powers prohibited of the States in Article I, Section 10 of the U.S. Constitution, we hit upon this one: “No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts”.

A student in the back of the room raised his hand, and asked, “What does Georgia use for paying its debts – money owed to the State, and by the State?”

“Federal Reserve Notes,” I replied.

“Not gold or silver coins?” he asked.

“No, not gold or silver coins. And no, Federal Reserve Notes are not backed by gold or silver coins, either.”

He raised his hand again. “Which States DO use gold and silver coins for paying State debts?”

“None of them,” I answered. “They all use Federal Reserve Notes, which were declared to be ‘legal tender’ by the U.S. Congress.”

“When did we pass a Constitutional Amendment to change this requirement in Article I, Section 10?” He had a puzzled look on his face.

My answer seemed to puzzle him even more. “We didn’t.”

It was quiet in the classroom at that point. I waited. I didn’t have to wait for long.

“How have the States gotten away with that?”

I didn’t have an answer to that question. And it bothered me...

READ THE FULL ARTICLE HERE...

"Time to Deal With Reality"

by Doug Tjaden, Director
Sound Money Center

Let’s cut to the chase. Those working to restore this nation’s constitutional foundation had better resolve themselves to three important facts.

#1. We do not have much time left. The clock is ticking and we are in the eleventh hour. Enough said.

#2. The economic and political environment this restoration project is taking place in is about turn ugly in a way nobody wants to admit. It will unfortunately, because vast numbers of people in this country hold two deeply entrenched, yet diametrically opposed, worldviews.

Progressive Socialists believe the government is the best and last arbiter of all issues – whether social or financial, local or global. The only way out of our problems, they claim, is to give the central (and increasingly, global) government more power and money. The Constitutional Conservatives on the other hand, believe big government is the problem, and the central government must be stripped of its power and money, with both being returned to the people and states.

Diametrically opposed political and cultural worldviews do not co-existed indefinitely. In this country, they have been able to for one simple reason - Perceived prosperity. Easy money (actually it’s easy credit, but that’s another subject) created an environment of economic and political stability. Historically, this is not an environment in which world changing events occur.

Those days are over. History will show they ended during the hot summer of 2011. The heated nature of the debate to raise the United States’ debt ceiling awakened millions of Americans to a painful reality. The perceived prosperity of our debt based consumption binge is over. The resulting economic instability will magnify what many have sensed for some time now – our country is politically unstable. And that IS an environment where world changing events occur.

This assertion is confirmed by a Rasmussen poll released this week showing that only 17% of Americans believe the government operates with the consent of the public. Pollster Pat Caddel called the results “pre-revolutionary.” A pretty strong statement. However an accurate one.

This country is entering a period of monumental change. Which leads me to the final fact we must resolve ourselves to.

#3. We have one chance to get it right. The collective wisdom of those who hold freedom dear must be directed in such a way as to achieve maximum return for every hour volunteered and every dollar spent working toward that goal.

As our fellow Americans awaken again to the concepts liberty and Constitutional government, we must make the case that governmental tyranny and economic chaos can only be solved by implementing both the principles of '98 and sound money. Restoring constitutional government cannot be done through the principles of '98 alone. Or by implementing the sound money alone. They must be implemented simultaneously – and immediately.

Our posterity depends on it.

I will make that case at Nullify Now! in Kansas City on August 20th. Please join us there!

"The Clock Is Ticking"

By Doug Tjaden, Director
Sound Money Center

---

Believe it or not, there is actually something good that came out of the dog-and-pony show over our debt ceiling. Even though Washington chose to do exactly what we knew they would – kick the can down the road – the debate has brought some facts about our nation’s financial condition into the open.

Fact #1 – we are broke. While tens of millions of Americans still believe that money from government programs can and should continue to flow without consequence, millions more are discovering that if our insane policy of deficit spending continues, it will end badly.

Fact #2 – we are on the clock. While this fact is not yet widely understood, people are awakening to the reality that because we are broke, we have a limited amount of time to truly change our ways – very limited.

The bill Congress passed provides us with a timeline showing when the U.S. dollar crisis will come to a head. This long anticipated event will happen as the United States government approaches its new debt ceiling limit of $16.7 trillion.

If you think the drama surrounding raising the limit was extreme this time, you haven’t seen anything yet. Expectations have been solidly set that by the time it comes up again, Congress will have put in place measures to once and for all, solve our fiscal problems by getting spending under control.

That is not going to happen.

Projections are already being made that the $16.7 trillion limit will be reached in 1Q13. However, Washington D.C. is notorious for making projections that are too rosy. Furthermore, our economy is rapidly moving into a “double dip” recession. That means revenues will soften as expenditures (unemployment, food stamps, etc.) continue to rise.

If the double-dip is severe, it is possible that we could reach the debt limit well ahead of schedule - near next year’s Presidential election. Consider what that means. A bitterly divided (and economically ignorant) Congress would be fighting for re-election during a full blown sovereign debt crisis. Gridlock of the most extreme nature would paralyze Washington when bold, decisive action is warranted. Not a pretty picture. Even if this scenario does not materialize, 1Q13 is only 18 months from now.

The clock is ticking people. This is it. Understanding this, each and every one of you should be moved to get involved to enact sound money laws in your state. It will be your best and possibly only protection from what is coming. You should also get serious about accumulating some sound money of your own.

Eighteen months max. The 2012 state legislative session may be your last chance to enact constitutional tender laws in time to implement them prior to some very challenging economic times. Encourage legislators and sound money proponents from your state to attend the national Sound Money Summit, scheduled for September 26th and 27th in Deer Valley, Utah. Sound money legislation will be crafted and acted upon. Details will be posted at the Sound Money Center when released!