RANT: Free Competition in Currency Act of 2013

Letterhead
August 23, 2013
Mr. Ferdinand Reinke
1641 International Dr Unit 414
McLean, VA 22102-4831

Dear Mr. Reinke:

Thank you for contacting me about H.R. 77. I appreciate hearing from you.

H.R. 77, the Free Competition in Currency Act of 2013, was introduced by Representative Paul Broun on January 3, 2013 and was referred to the House Judiciary Committee’s Subcommittee on Regulatory Reform, Commercial and Antitrust Law. This legislation would allow any metal coins issued by a government or individual to be legally accepted currency.

The Federal Reserve System was established in 1913 to provide stability in the banking system through the regulation of bank reserves. It is the central bank of the United States and formulates the nation’s monetary policy, with a dual mandate of fostering maximum employment and price stability. It is also the “lender of last resort” in our nation’s financial system. Its record reflects its commitment to promoting low levels of inflation and unemployment, as well as maintaining economic stability.

The Fed is purchasing $85 billion in assets each month in an effort to stimulate spending and spur investment in businesses and homes. These asset purchases are known as quantitative easing (QE). There is uncertainty about the Fed’s ability to unwind from QE without some financial or economic disruption, including inflation. However, currently inflation and inflation expectations remain low; consumer prices rose 2% in July 2013, compared to a year earlier.

Since August 2012, the Fed has released quarterly financial statements in addition to its annual reports, in response to demands for accountability and openness. I think this is an important step and believe we will continue to see such measures from the Fed in the future.

Thank you again for contacting me with your views.

Sincerely,

Signature

Tim Kaine

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Notice that he never addresses the issue.

I know what the fluff says.

But the dollar has lost 99% of its purchasing power in my life time.

Argh!

Why bother writing these goes?

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