For Paul, the original sin in monetary policy took place in 1933, when FDR uncoupled the currency from gold. This removed limits from federal spending, allowing Congress an endless supply of money it could print at will, while leaving citizens vulnerable to the inflation that inevitably resulted. But, worst of all from Paul's point of view, it was compulsory. Private currencies are forbidden, so Americans had no choice but to participate. The whole system is a mandatory Ponzi scheme, built on faith in the government. Except that, now that the bottom has dropped out of the dollar, it's clear there's no reason to have faith in the government or its money.

That's Paul's essential argument. His solution: allow competing currencies.

If individuals want to circulate gold or silver coins (or scrip backed by metal reserves), let them. Give citizens the chance to decide which money they trust.

The owners of NORFED, an Indiana coin company, gave it a shot. The company minted and sold thousands of silver Ron Paul dollars, complete with the candidate's face in profile, before federal agents showed up in November and confiscated their entire remaining inventory. In its affidavit for a search warrant, the FBI accused NORFED of trying to "undermine the United States government's financial systems by the issuance of a non-governmental competing currency for the purpose of repealing the Federal Reserve and Internal Revenue Code." That may be a crime, but it's also pretty close to Ron Paul's stump speech.