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He opposes dependency on paper fiat money, but also says that there "were some shortcomings of the previous gold standard because it was a fixed price and caused confusion. He argues that hard money, such as backed by gold or silver, would prevent inflation, but adds, "I wouldn't exactly go back on the gold standard but I would legalize the constitution where gold and silver should and could be legal tender, which would restrain the Federal Government from spending and then turning that over to the Federal Reserve and letting the Federal Reserve print the money." He supports parallel currencies, such as gold-backed notes issued from private markets, competing on a level playing field with the Federal Reserve fiat dollar. He believes this would restrain inflation, limit government spending, and eventually eliminate the ability of the Federal Reserve to "tax" Americans through inflation.
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I don't really understand what he's saying here. What exactly is his solution if it isn't going back to the gold standard?
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This may be a massive over simplification, but basically it comes down to we must stop printing money. And I mean that in the very literal sense.
Also involved in this, is reduce the budget, no deficit spending.
Here is a link to him discussing inflation with Ben Bernacke. He discusses the moral implications of the Fed manipulating the dollar/interest rates
http://youtube.com/watch?v=bxLXaiWmFB4
*i'm not an expert