Make No Cents Until It Makes Sense Act

Dear fellow Americans-

Continuing my research on Dr. Ron Paul economic theme which is one of his pillars I came across to this title “Make No Cents Until It Makes Sense Act”. So what do you think?

Well this is the short title of Dr. Ron Paul Bill H.R. 4127 which was introduced on November 8, 2007.
This bill says:” To amend title 31, United States Code, to prohibit the further minting of 1-cent coins until the Secretary of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System certify in writing that there is not a surplus of 1-cent coins already available for use in transactions, and for other purposes.”

Bill can be read here: http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.4127:

So the question I got out of reading that bill was “What prompted a ranking member of the subcommittee on Domestic and International Monetary Policy, Trade and Technology to write such a bill?”

This question became the driver to my research; here is my findings and opinion:
So what a penny is and what a penny is made of?

It is the one-cent coin and it is commonly known as the penny; the name is derived from the British coin pence. Over 300 billion one-cent coins, with 11 different designs, have been minted since 1787.

It was the first currency authorized by the United States and the first one-cent was struck in 1787 by a private mint. It was known as the Fugio cent, 100% cooper. In 1815 no one-cent coins where minted due to the shortage of cooper created by the 1812 war with Great Britain.
It became legal tender by the Coinage Act of 1864.

In 1909 to commemorate President Abraham Lincoln 100th birthday the Lincoln penny was minted and was the first U.S. cent to include the words “In God We Trust” and 1959 the Lincoln Memorial was added to the reverse of the one-cent count to mark Lincoln’s 150th birthday and making it the first and only coin to have the same person on both sides. The statue of Lincoln is inside the Memorial!

So today a one-cent coin is made of Copper Plated Zinc, Weight 2.5 g and this is the details:
- 2.5% Copper equivalent to 0.0625g of Copper
- and the balance with Zinc equivalent to 2.4375 g of Zinc.

One can see a penny contains more Zinc than Copper.
Click here to read more about the composition of a penny and other U.S.A coins:http://www.usmint.gov/about_the_mint/?action=coin_specifications

So now that we have a good idea about the penny lets talk about the approximate raw material costs for minting a once-cent coin with today's metal prices.

- Raw material: Zinc and Copper
- Average cost of 1 tonne of Zinc: $3,440
http://news.morningstar.com/news/ViewNews.asp?article=/MW/5C9D1AAD-EDAD-429F-8117-841072A31245_univ.xml

Average cost of 1 tonne of Copper: $6,220
http://www.iht.com/articles/2007/05/06/sports/bxcom.php

Estimated raw material composition cost per penny:
- Zinc = 0.038875 of a cent
- Copper = 1.516125 cent

Approximately raw material cost needed to mint a once-cent coin is 1.55 cents.
This cost does not include transportation, storage, broker feeds and all other costs associated with putting a one-cent into circulation so one can see that the cost to mint a one-cent is higher than the actual face value.

The United States Mint issued a press release on April 17, 2007 indicating that.
http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=771&formSearchString=%22Penny%20price%22&formBool=AND&formYear=2007&group=1


OK, so let’s think about this for a moment, next year is the bicentennial (200 years) of Abraham Lincoln’s birthday and the US Mint plans to issue four new versions of the penny to be released on a rotating basis.

So I ask fellow citizens of this great nation, knowing what you know

- Does it make economical sense to continuing minting the one-cent?
- Does it make economical sense to continuing minting the one-cent if there is not a shortage of it?

So perhaps that is the message Dr. Ron Paul was trying to bring to the floor by introducing his Bill H.R. 4127. Because his position in the house he sees and know what is going on behind doors that has the posibility of affecting our economy specially related to monetary issues.

One can see he is doing what he can to fight literally for each penny.
He is fighting the status quo to make sure each penny is well expended by Congress.

Wishing you a great healthy and prospect 2008.

Dr. Ron Paul talks in easy terms the inner working of our money policies, Federal Reserve and Government -1988

This is an amazing educational video where Dr. Ron Paul, Frank Morrow and John Cone got together and described how the Federal Reserve was created, and how via the banking system our economy is controlled.

Frank Morrow was the producer of the TV show called “Alternative Views”.
For more information click here: http://en.wikipedia.org/wiki/Alternative_views

It reveals in easy terms how the Federal Reserve came about, our Government role on creating it and the negative impact it has on our economy. In addition, he tells us how little control (if any) Congress has on how the Federal Reserve handles our economy by manipulating the dollar. Printing money with no real backing such as gold or silver but rather the backing of other countries self interest has in buying our government certificates.
Congress as a whole does not do any real supervision PERIOD!

Back in the 80’s Japan was one of our biggest buyers of government bond certificates.
China was in the process of becoming what is today the biggest buyer of our bond certificates.
The Videos are divided in 5 parts:
Part 1: http://www.youtube.com/watch?v=NDEgBWO54dA
Part 2: http://www.youtube.com/watch?v=7sNRRrmvOOk
Part 3: http://www.youtube.com/watch?v=1cO696EhUGM
Part 4: http://www.youtube.com/watch?v=fsKG2jfUr_U
Part 5: http://www.youtube.com/watch?v=2igLTChqyck


My personal opinion based on research is that just as the Internet bubble of the 90’s and the current Mortgage bubble one can see there is a parallel similarity between the two.
There is a world economic bubble trend; it is created to support these bad economic policies which were introduced by our elite bankers back in 1913.
Countries are been required to have a central bank, the umbrella is the US Dollar and the foundation that currently supports this is the America consumer power. One just needs to research data to find the dots that connect this trend. Start by looking at World War I all the way to current internal and external events. Looking at the war from an economic point of view during and after it, observing the events that unfolded from that view provide you with another outlook and with it closing the gap which in turn lets you see clear. The key is to “Follow the money”.

See who is buying our debt, follow economic trends internal and global, read the international agreements. Research US Tariff applied to products coming to the USA, to which countries etc and you start to see how the dots form a picture. It will guide you; it will let you see where things are moving economically and politically, nothing is done by accident but rather one step at the time. Those are events that take time to form, some take immediate effect, some 6 months, others a year, 5 or 10 years.

I will give you a hint of something to think about it, something recent (30 +/- years ago).
In the 70’s remember the phrases “Made in Japan” and how it was used to indicate that a product was of poor quality and not expensive? Well, do you know why we started to see more and more of this “Made in Japan” products coming to our markets?

One could say that a very important variable has to do with trade and economic policies being put in place by our US Congress allowing the development of industrial factories in Japan where many USA manufacturers were motivated to establish factories there by the economics incentives created by congress in various shapes and forms. In turn this industrial complex generated jobs in Japan; products were produced at a very low cost and shipped primary to the USA market.

This process that in the surface looks and sounded positive had among other things two primary drivers:
- First, it allowed American companies to establish roots there, manufacturing products at a very low cost and to be sold primarily in the USA market for a greater profit than if they were to be manufactured within the USA.
- Second with time eventually Japan will have excess dollars by achieving export surplus; this event was reached in 1965. It allowed Japan to start paying its international and internal debt and to buy USA bonds certificates and later (in the 80’s) to acquire significant economical control and/or ownership of USA assets such as real estates among other things. This is a key element since it allows the Federal Reserve to print money out of thin air using a delicate economic dance. It does it by issuing Bond certificates and /or buying or using anything else as collateral example of it: (other countries certificates). It is not a simple tasks and it requires national and international laws to be created or adjusted.

It requires the creation or modification of entities to govern some key processes with local and international reach; in sum it is a living process that requires constant tuning and requires the cooperation and input of many national and international bodies all with a common goal “to build wealth”. There is nothing wrong with building wealth, to the contraire, it is a good thing, but the issue is ways and methods of obtaining it.

It is that in the process the spirit our USA constitution is been manipulated, our three government branches in one way or another are allowing the core of the USA constitution to be chipped by passing laws which are shown to be contradictory to our Constitution. As I heard there is a secret process created where the constitution can be “suspended” as if the USA constitution can be “PUT OFF”.

This is a trend that one needs to pay attention. Lets take a look at China, it is now the new “Buyer” of these USA Bond certificates; China also buys other countries currencies, but primarily ours for now…

China has a self interest in doing so and to us China is a double sword; One because it has been a little harder for existing global economic groups to be able to effectively inject and drive in one way or another China’s economic policies. Two, it is a very delicate dance specially for us because China lately is holding Billions of our bond certificates and if we push to hard, China can dump their USA holdings and with it creating a downward spiral where the US Dollar will be the bigger looser AKA inflation to the roof!! -1929 flashback and who knows what else.

It is a tedious job to dig and research all that is out there and to connect the dots in a logical form, but I encourage you to do so. The information is there, World Bank, IMF, State Department, Department of commerce, Congress legislation, US official trips etc.

Those groups are doing their best to maintain a global stable economy however in the process mistakes are made and with it lots of innocent people are deprived of their earnings, saving etc.

Currently Latin America, Canada and the USA are forming a "Union" the process was initiated in the 90's and it is continuing one step at the time slowly. Remember that the current EU "European Union" did not take this form overnight but over decades and it is continuing being shaped.

If you wish, research as to how the EU "European Union"was initiated; compare it to what is taking place between Latin America, Canada and the USA and you will find similarities.

Economically all make sense, just be aware of it so at the end you are not left behind.

I leave you with those thoughts…

Dr. Paul, Gold Standard, Federal Reserve and Money 1983

Dear fellow patriots –

Would you like to know how consistent Dr. Ron Paul has been related to the issues he cares about? Well I do, so I decided to research the Internet for videos where Dr. Paul has appeared.

I have good news, I found tons of videos on the Web and to make them easy to follow I started to sort chronologically.

To make it easy for all, I will be posting a daily video by giving you the URL(Web site location) for all to view and follow.

First video I found was as far back as 1983, it is an hour long, the video is not excellent but it is worth looking at it or at least listening to. You will see a much younger Dr. Paul but his words, wisdom and heart are on target then and now.

The video is a debate on the Gold Standard between Dr. Paul and J. Charles Partee.

J. Charles Partee was a member of The Board of Governors of the Federal Reserve for the District of Richmond from 1976 to 1986.
(Accordingly to this Federal Reserve document:
http://www.federalreserve.gov/BoardDocs/RptCongress/annual06/pdf/ar06.pdf
found on page 260 on PDF document itself)

The debate was hosted by the Ludwig von Mises Institute, a research and educational center of classical liberalism and the Austrian School of Economics.
(Click here for more information about the institute http://www.mises.org/)

Dr. Paul back then was telling it like it is, has been telling it like it is and will continue telling it like it is. This was 25 years ago and Dr. Paul has not flipped!

Wow! I just wish we have more politicians like him.

Ok, go and watch the video and share what you think. by posting comments.
Here is the video: http://video.google.com/videoplay?docid=-2354618193217305530