The Federal Reserve Act of 1913 is not only unconstitutional, it has been absolutely ruinous to our nation's economy. Since the Fed has come into being, the U.S. dollar has lost 95% of its purchasing power -- and yet the defenders of the Fed tell us its purpose is to "keep inflation under control."
The fact of the matter is that only the government and its central bank can cause inflation. They do this by expanding the money supply. Each time the Fed creates new money, it diminishes the value of your dollar-based financial holdings. It thus imposes a hidden tax -- the "inflation tax" -- and redistributes wealth from the poor and working class to the rich and politically connected.
Since 1971, the U.S. dollar has been a purely fiat currency. At one time, people accepted paper dollars because they knew they could exchange them for gold: The dollar was "as good as gold." But now people accept dollars only because they've become so accustomed to doing so, and because they are legally required to accept them.
The Federal Reserve System of fiat-money central banking is bankrupting our country. We must move away from this unsustainable debt-based financial system and towards a truly free economy. The first step in doing so would be to legalize competing currencies.
Were you aware that its illegal for private businesses to produce gold and silver coins? One such company, Liberty Dollar, was raided by the FBI and charged with "advocating the repeal of the Internal Revenue Code and Federal Reserve" when it was about to release a new issue of coins adorned with Ron Paul's likeness. All Liberty Dollar wanted to do was give American citizens the option of using constitutional money -- but the FBI and IRS said no and seized tons of precious metals from Liberty Dollar and its customers.
We must legalize competing currencies, repeal the unconstitutional legal tender laws that require Americans to accept Federal Reserve Notes, and enforce gold clauses in contracts. If we act quickly, and if the states take the lead by abolishing all sales taxes on gold and silver, then we might be able to transition from the fiat empire of the Fed to a truly free economy before we meet our economic ruin as a nation. But we mustn't delay. History teaches us that fiat currencies have brought down all great nations in time, and if we do not learn from history, then we shall certainly be doomed to repeat it.