Since when does the government issue paper money?
According to the USA constitution, they cannot. No state shall make anything but gold or silver a tender in payment of debt, according to Article 1, Section 10, and there is a specific prohibition against the national government doing anything that has not been specifically delegated to it (amendment 10), reserving such power to the states, or where the states are prohibited, to the people.
I thought it was the federal reserve in this case?
The Federal Reserve takes responsibility for the issue power of money, but it does so under authority delegated to it by the Federal Reserve Act of 1913. I think this act is unconstitutional, but that's another matter.
The Federal Reserve has the power to print money from Congress. So, it is a governmental power. It is this government issue power of money which Friedrich Hayek found objectionable in his book _The Denationalization of Money_ published 1976, and which EC Riegel found horrifying in his books _A New Approach to Freedom_ and _Flight from Inflation_, 1946 and 1952 respectively as I recall.
I think Riegel's books are available for gold from GoldBarterHoldings.com.
For a review of the many constitutional issues relating to a central bank for the United States, I recommend you Google for Andrew Jackson's veto message regarding the renewal of the Second Bank of the United States. It is one of the most well-written documents, assembling as it does all the arguments against fiat money, against foreign ownership of the banking cartel, and identifying the constitutional limits not only of Congressional power, but also the obligation to enforce these limits which all branches of government are supposed to uphold.
Even so, I think the framers of the constitution were mistaken in vesting any power over coining money or involving money in any branch of government. There is plenty of evidence, and there was then, that governments are irresponsible about issuing money, and that the free market has always provided plentiful money whenever called upon to do so.
Happily, I don't expect the USA to last much longer. Sic semper tyrannis. Deo vindice.
Regards,
Jim http://www.ezez.com/
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