The Coinage Act of 2012
The following is a bill to be introduced into Congress,
written by Jim Postma, Congressional Candidate in the Washington State 9th District,
for review and action by Congress persons, their colleagues, and advisors.
This document is not copyrighted and may be freely distributed.
For comments, please contact Jim at email@example.com or 253-691-2979.
Version of July 11, 2012, supersedes all previous versions.
Also, see the Social Security Trust Act of 2012 by Jim Postma.
Coinage Act of 2012
Article I, Section 8 of the United States Constitution, states that “Congress shall have the power to mint coin and regulate the value thereof—.” This Act will require Congress to do so by issuing United States of America money backed by gold and silver coins and bars of gold and silver in standard accepted sizes. Congress will then exchange this new USA money for Federal Reserve money and use the Federal Reserve money to pay down the national debt.
The expected effect:
Reduction of the national debt and lower to no inflation. Investors will prefer USA money to Federal Reserve money. USA money may become more valuable than Federal Reserve money making the USA money a viable long-term investment. Most investors will prefer to hold the USA money and not the gold backing it. The price of gold in USA dollars will be allowed to float and the gold price should go down. USA money will be convertible into Fed money at a market price. This act does not modify or change any other laws or the Federal Reserve Bank or Federal Reserve operations.
Congress shall authorize the Treasury of the USA to issue new money known as United States money pursuant to Article I, Section 8 of the United States Constitution. This US money may be purchased by anyone with Federal Reserve Notes at an exchange rate determined by market prices. This money may be convertible into gold from the Treasury at a market price. The holder of USA money will receive a statement from the Treasury showing how much USA money and/or gold they have. No currency will be issued. Federal Reserve money will continue to be the medium of exchange for commercial business. The USA money may be exchanged for Federal Reserve money at a market price by comparing the price of gold in Fed money and the price of gold in USA money or by a market in the two money systems. Fed money purchased by the Treasury will be used to pay down the National Debt.
END OF ACT
Q. Who will buy this new USA money and how will they use it?
A. Anyone holding Federal Reserve dollars may buy USA dollars at a market price. They may hold it for investment or exchange it freely. They may also buy gold from the treasury at a market price.
Q. What exactly will buyers get for their Fed money?
A. Buyers will get a credit at the Treasury in USA money or a fixed amount of gold just like any other bank account.
Q. Will checks be used for USA money?
A. Yes. But its value should be adjusted against Fed checks.
Q. What will be the effect on Federal Reserve money?
A. Fed money will not be affected and will continue to be used in business and commerce.
Q. Will USA currency be issued?
A. No. Fed currency will continue to be used for cash payments.
Sponsored by: Jim Postma, Candidate for Congress, WA 9th District