Cruz Is Right About Gold

Sen. Ted Cruz (R-TX) (photo credit: Gage Skidmore)

Ted Cruz grasped the nettle in the debate and explicitly upheld gold as the “ideal” monetary foundation. Perhaps he understands the scandal of money: that gold currency is now effectively illegal in the U.S.; that the murky $5.3 trillion a day churning of currencies now muddles rather than defines all value in the global economy.

The next step from the nettle is an actual program for the net, which should include digital currencies such as bitcoin as well as the cancellation of capital gains taxes on the alternatives to the dollar.

As Hayek wrote: “The source of all monetary evil is the government monopoly on money.”

George Gilder is a bestselling writer and author of, most recently, The 21st Century Case for Gold: A New Information Theory of Money. Continue Reading

With New Tech Pick, Is Rand Paul Also Making Statement on Money?

Sen. Rand Paul (R-KY) (photo credit: Gage Skidmore, CC BY-SA 2.0)

There’s been a lot of talk about Rand Paul’s Internet operations, most of it good.  The presidential candidate has  invested in his online presence on a scale not seen since Barack Obama’s insurgent win in 2008 against Hillary Clinton.  This week, his campaign announced his next acquisition: Patrick Byrne of Overstock.  In and of itself, this would be a major coup since Byrne is well known for innovative tech ideas (decentralizing Overstock’s exchange being the latest), but it’s also notable for another reason: Byrne is also a well known advocate of the digital currency Bitcoin.

Personally, I’m skeptical on the subject of Bitcoin, but I’m sympathetic to the idea behind it: A growing distrust of our nation’s monetary policy which is encouraging stagnant wages and slow growth.  Rand Paul has not been hesitant in the past to suggest that the Federal Reserve’s policy needs a shakeup: In addition to his well known “Audit the Fed” bill, he also sponsored a Centennial Monetary Commission that would study the Fed’s policies over the past century and recommend a path forward for the central bank (the bill is expected to be reintroduced this year).  One of Rand’s recurring statements is that he’s running as a “Different Kind of Republican.” By choosing Patrick Byrne as his new Tech Council, could Rand be sending a not-so-subtle signal that a Rand Paul administration would also chart a new course on money?

Nick Arnold is a researcher for American Principles in Action. Continue Reading

George Gilder on the Power of Money

Photo credit: BTC Keychain via Flickr (CC BY 2.0)

An article published last week by the New York Business Journal covered George Gilder’s recent appearance at the OnFinance conference. During his remarks to the conference’s attendees, Gilder endorsed the use of bitcoin in no uncertain terms:

“I think bitcoin should be conceived, first, as a new infrastructure for the Internet, a new transactions layer that the Internet drastically needs today,” Gilder boldly declared during the daylong OnFinance conference held by AlwaysOn, the San Francisco-based media and events company aimed at entrepreneurs and the VC industry.

Gilder has an impressive résumé in the field of economics which lends credence to his remarks. He is noted as “being former President Reagan’s ‘most quoted living author’ because of his support for supply-side economics,” as well as for being the author of “Wealth and Poverty,” a 1981 bestseller. The article goes on, covering more of Gilder’s remarks:

Bitcoin is a controlled solution, Gilder said, one that puts the power of money back into the hands of its users.

“We have a major movement around the world to change this system. We have the emergence of the blockchain and bitcoin, which I think represents a fundamental new way to think about money,” said Gilder, who has invested in the bitcoin company Rivetz.

Gilder wasn’t worried about the declining value in bitcoin — today, one bitcoin is worth about $237, significantly less than its high point of $1,150 in 2013 — as he compared bitcoin with gold, a valuable commodity that’s certainly had its own ups and downs.

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Rand Paul Discusses Bitcoin and Alternative Currencies

In a Bloomberg article from February 12, Senator Rand Paul discussed his views on Bitcoin and other alternative currencies. He stated that his concern with Bitcoin “was whether or not something has real value. I could imagine a kind of coin that was exchangeable.” He felt that if Bitcoin, “Wal-coin,” or a similar company currency was exchangeable for stock in that company, it would give real value to the currency. That currency would, in Sen. Paul’s opinion, raise profit margins for those companies, which he believes would be an interesting prospect.

You can read the full story here. Continue Reading