NORFED (LIBERTY DOLLAR): The enormously named National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code (for which NORFED is a partial acronym) began as a national, member-based, educational outfit based in Evansville, Indiana. “Furthermore, NORFED is a supporter-driven, non-profit organization that uses all its revenue to bring about a positive change to the current debt-based monetary system.” Their alternative currency is the Liberty Dollar. According to a “NORFED Report” (an early version of its regular Newsletter) from February of 2000, “For the first time in 87 years, the government dollar — those dreaded Federal Reserve Notes (FRN) — now has competition. Perhaps you aren't aware, but FRNs are issued by the Federal Reserve — a private corporation that masquerades as being a federal agency.” In the early days, this American Liberty Currency (ALC) was spoken of as the “New American Dollar”, but this ended once the government introduced the Sacagawea Dollar — which at the time was commonly referred to as the “new American dollar”. Afterwards, NORFED “stopped using ‘New American Dollar’ as the nickname for the American Liberty Currency. We certainly would not want any confusion with that fraudulent, ugly, ‘Golden Dollar’ from the government that contains no gold whatsoever!” The Liberty Dollars are available in three forms. First, they can be purchased in several denominations of “warehouse receipts” which are 100% backed by precious metal. The Silver Certificates are “Redeemable by Bearer on Demand” in pure silver and the Gold Certificates are redeemable in fine gold. These paper Certificates are still being produced/marketed today. The actual silver and gold are stored at the warehouse of Sunshine Minting, Inc. (Coeur d'Alene, Idaho). Therefore, all the bullion owned by certificate-holders “is not controlled by NORFED — it is independently held by a third party”. This private mint also produces NORFED's coinage (“by far the most popular” form of the private currency), referred to in their infancy as Silver and Gold Libertys. The Liberty Dollar is also available in digital form (eLD).
The founding of NORFED dates from September 11th 1974, when their Senior Economist, Bernard von NotHaus, wrote To Know Value — An Economic Research Paper and established the Royal Hawaiian Mint. His long-term desire was to issue a legal, value-backed currency for Hawaii, and this was to have been the Hawaiian Sovereign Currency, which was the result of some 23 years of toil and research. When this project was just about ready to be marketed, he had an encouraging chance meeting with one of the Mint's collectors. It was the evening of October 7th 1997, and they were both at the Waikiki Branch Mint. The elderly benefactor became enthusiastic about von NotHaus' ideas, so he urged von NotHaus to seriously consider taking a similar economic model to the continental United States. “After a brief fact-finding trip to the mainland, Bernard made the decision to retire from the Mint after 25 years and redesign the Hawaii currency into a national issue. First the Statue of Kamehameha and the Hawaiian foliage was replaced with the Statue of Liberty and the geometric lathe work for a national looking currency. Through the redesign phrase several designs and names were investigated. The first was Constitutional Currency of USA”. This “paper instrument” was later renamed “American Patriot Currency” (this proposed Silver Certificate was also referred to as “the Patriot”). He carefully “examined” different sizes and shapes while “the Hawaiian currency was morphed into what became The Liberty Dollar.” During this 11-month period, von NotHaus formulated his investigation into another paper, Free Market Currency, which later led him to decide to launch the Free Money Movement as suggested by Nobel Laureate Friedrich August von Hayek, and also to propose the world's first working model for an “Organic Monetary Standard”. The idea gained momentum, and adherents, fairly quickly. “Within a year the growing group of concerned Americans had became NORFED. And then at 11:00 PM on September 24, 1998, von NotHaus was on hand to finally take delivery of the first shipment of American Liberty Currency”. On the 25th, this “Monetary Architect” then travelled to Sunshine Minting, and hand-delivered the first sealed/tamperproof cartons of the freshly printed, warehouse receipts to their Chief of Operations/Vice President, who checked them into their vault (known as the Shelter System Warehouse). “And on October 1, 1998, the results of an outstanding group of very dedicated Americans bore fruit when the first American Liberty Currency was distributed on schedule as planned.” The Liberty Dollar has become a formidable economic and/or numismatic juggernaut. Since its introduction, over $20 million of NORFED money is in circulation, growing to over 100,000 users nationally. At the center of it all is an expanding network of Liberty Associates (who sign a contract with NORFED and obtain the Liberty Dollars at a discount), Liberty Merchants, and chartered Regional Currency Offices (RCOs). Although perfectly legal (as we will later see, this conviction will bring many woes to the organization), the Liberty Dollar “is not ‘legal tender’, a ‘coin’, or United States government money like Federal Reserve Notes (FRNs).” The “Liberty Dollar is private, non-government currency; so it cannot be deposited in a bank.” In spite of its limitations, the currency is supposedly being used in day-to-day transactions across the country, and accepted in trade for goods/services/wages by businesses, banks, churches, and the general public. In the very words of von NotHaus, “As I hope most of you know — the Liberty Dollar is NOT a collectible — it's a currency! Of course that doesn't stop people, good people, from collecting it. In fact, I put together the first ‘type set’ myself, just to see what it would look like.” It is worth mentioning that von NotHaus considers Ralph Borsodi (see my previous listing about the International Foundation for Independence) to be one of his mentors, and he unmistakably shares the Doctor's displeasure with the fluctuating fiat money produced by our government.
Over the years, there have been several batches of numismatic items made by NORFED. I purchased the “First Year of Issue” 1998 (Type 1-A) Silver Liberty (actually undenominated) directly from the Online Store at NORFED’s Web-site (http://www.libertydollar.org/). Only a few thousand of these were minted in a span of about 3 months, and it is considerably different than all the Silver Liberty Dollars which followed (for one, the reverse contains a heraldic design of ancient symbols with the legend, THE SHELTER SYSTEM). Type 1-B, with a different reed-count, was minted by Bernard at the Royal Hawaiian Mint. I also obtained a 1999 $10 American Liberty Dollars from Mr. Stephen J. Alexanian, of the Saratoga Springs (NY) ALC Redemption Center.
On October 1st of 2005, in commemoration of the 7th anniversary of the Liberty Dollar, Bernard von NotHaus announced the launching of the RCO State Monetary Initiative (SMI) “for a new gold and silver State currency based on the Liberty Dollar model and implemented by the existing RCO national network.” Though New York was the earliest state to sign up for their own Liberty Dollar, the introduction of the SMI plan actually began with Michigan. In March of 2006, the Michigan Liberty Dollar made its debut and was the first one to enter into circulation (though it seems that a Puerto Rican Liberty Dollar made its initial appearance at a gala event attended by von NotHaus in October of 2005). According to its official Web-site (http://www.libertydollarsmi.com/), “Whereas during the past seven years the Liberty Dollar has offered a proven solution in competition to the current debt based currency issued by the Federal Reserve, the Liberty Dollar organization now offers a positive State based solution by providing each State with its own coinage. The new State based currency will have the same ‘unit of accounting’ as the Federal Reserve Notes and will function in parallel on a one-to-one basis within the current economic system. The system is scalable and designed to establish an interrelated national monetary system that is compatible with the banking system within each State and between the States. In other words, as the private gold and silver currency grows in each State and is eventually officially adopted by each State, the currency will return our great country to a sound monetary system based on value.” This value-backed currency “would provide each State with a very large and steady ‘tax-free’ income, while protecting the People of each State and all the business interests within the State from any national monetary crisis. In addition, it would establish within each State a currency that is consistent with its State Constitution and that of the US Constitution. Each State has the ability, legal basis, and moral imperative to lead its People and our great country back from an inflationary future by returning its economy to a value-based currency. How Would It Work? Building on the national network of the RCO that distributes the Liberty Dollar, a new, legal, but unofficial ‘private labeled’ State Liberty Dollar will be distributed with the name of the State” on each piece. “Only the RCO in that State will be able to order the new ‘private labeled’ State Liberty Dollars with its name on the currency…As the US dollar continues to depreciate and the popular usage of the State Liberty Dollar grows, the RCOs within each State will lead the effort to officially return their State's currency to a Constitutionally compatible gold and silver currency.” I purchased the 2006 $20 Texas Liberty Dollar from Mr. Charles H. Hampe (who runs the RCO in Belmont, New Hampshire) and the 2006 $20 Marco Island (a city/island in Collier County, FL) Liberty Dollar from Mr. Ron Goodger (who heads Freedom Financiers, the Southwest Michigan RCO). I also purchased a $20 Ecuador Liberty Dollar from Dr. Rev. Joseph-Michael Gardinier, who runs the RCO in Graham, Washington. This medallion, dated 2007, carries an all-Spanish LIBERTAD/CONFIE EN DIOS obverse. Its reverse bears the Ecuadorian coat-of-arms. In further defiance of the U.S. Mint, and as part of his “effort to defend the consumer's right to use gold, silver or anything of choice in commerce”, von NotHaus issued a $1 Copper Liberty. Dated 2007, it contains one ounce of pure Cu and features the words “COPPER/ONE AV OUNCE”. I purchased one of these pieces from Mr. Oded Paz.
On September 13, 2006, the United States Mint posted a consumer advisory on its Web-site after “prosecutors with the Department of Justice…determined that the use of these gold and silver NORFED ‘Liberty Dollar’ medallions as circulating money is a Federal crime.” In its statement, the Mint urged people who were considering the purchase or use of these items that “despite their misleading appearance, NORFED ‘Liberty Dollar’ medallions are not genuine United States Mint coins and they are not legal tender.” Was the coinage of NORFED’s non-realm unjustly defamed by the U.S. Mint’s proclamation? “We issued the alert because we don't want consumers to be fooled,” said Becky Bailey, public affairs director with the U.S. Mint Department. “If someone wants to collect Liberty Dollars, that's fine.” She added, “I don't know if law enforcement agencies are planning to prosecute. But we're convinced that the use of the Liberty Dollars” or any other form of gold or silver coin as legal tender “is a violation of federal law.” Von NotHaus and all of the RCOs also received “threatening” letters via certified mail from Daniel P. Shaver, chief counsel for the U.S. Mint. The “Treasury Letter” re-hashed the Mint's warning and informed all of them that the Liberty Dollar is illegal as per Title 18 of the United States Code, Section 486. The Liberty Dollar began receiving tremendous amounts of national and local media coverage. Von NotHaus felt that the propaganda machine was being used in order to extinguish his “inflation proof money”. NORFED’s headquarters also received a copy of a reply, dated November 9, made to Congressman John N. Hostettler's inquiry to the U.S. Mint (in October, he had sent two letters to the Mint on NORFED’s behalf). This two-page “Treasury Letter”, signed by none other than Mr. Edmund C. Moy (the new Director of the U.S. Mint), states that the designs and inscriptions on the Liberty Dollar “may lead unwary merchants or consumers to accept the medallions as legal tender by mistake.” Earlier in the year, such a transaction truly occurred, when a college student in Wisconsin was charged with theft in March for “spending” three silver Liberty Dollars at two River Falls gasoline stations (he later pleaded not guilty). Managers at both establishments said that clerks accepted the Liberty Dollars without realizing they were not legal tender. Other similar incidents have surely occurred. In September of 2005, for example, an unidentified local business (Laconia, NH), inadvertently accepted a $10 Liberty Dollar in exchange for its product. After receiving the complaint, Belknap County Sheriff Dan Collis contacted the Secret Service. They were already aware of NORFED because the agency had received numerous calls from citizens questioning the legitimacy of the Liberty Dollar. But after years of investigation, they did not consider the medallions to be illegal. Nevertheless, as a result of the stupendous consternation which NORFED caused within the U.S. Department of the Treasury, von NotHaus made a major decision. In the September edition of Liberty Dollar News von NotHaus proclaimed that in order to further differentiate his privately produced precious metals pieces from federal coinage issued by the U.S. Mint, “I have immediately ordered all new $20 Silver Libertys to be minted with a new obverse die. The new die replaces the ‘USA’ that is currently on the one ounce Libertys with the date 2007. And before 2007, all obverses on the $10 Half Liberty and the $5 Quarter Liberty will also be changed. We agree with the US Mint; we don’t want any confusion!” Soon, von NotHaus had additional reasons to believe that federal officials were working to undermine his cause and that the Liberty Dollar was facing imminent extinction: “On Monday, November 20, the Evansville office received a certified letter from our bank, Old National Bank, which said: ‘Please be advised that if you do not close the Account within 15 days of the date of this letter (11.16.06), Old National Bank will exercise its right to close the Account.’ Had we bounced checks? Nope, not a one. Were we a difficult customer? Definitely not. Had we done anything to warrant the bank to close our account? No, but obviously something upset the banking powers to be. The VP for Bank Security, who ordered the letter, told us that they had investigated our business and said that the ‘nature of our business’ was too risky for them. Of course the bank's action is clearly the result of someone calling the bank and telling them to close our account.” Von NotHaus exclaimed that “The Liberty Dollar is clearly under siege. Quite simply, without a bank account and merchant card services, it is all but impossible to do business in this day and age. We face the real possibility that the Liberty Dollar could die...and put all the ideals it stands for at risk!...It should alarm you that the government can single out a business without any past criminal history, indictment, or even criminal intent and instruct its bank to close its account!” Yet in spite of all these mounting woes, von NotHaus declared: “The bottom line is that we are not deterred. Like the old German saying, ‘That which does not kill you — makes you stronger,’ the Liberty Dollar is not going away. What else am I to do? Return to lying on the beach in Hawaii and drinking Mai Tais all day? Well, that may not be so bad...but I still feel the country is worth saving from the evils of fiat government money and hope you still agree…I strongly feel that this is the time that we must take a stand; otherwise the government may be emboldened to move against gold and silver and damn us to their depreciating money until it is too late for our country — and the ideals it once stood for — to survive. I remain steadfastfully optimistic that all this will turn out to be an opportunity as yet unseen...if you take a stand for the right to use gold and silver as money.”
The most drastic development of all took place just prior to the end of 2006, when von NotHaus announced that “NORFED Is Dead” in his monthly Newsletter: “In early December, NORFED Inc. was dissolved by the Board of Directors. Very quickly, the new currency company reinvented itself as ‘Liberty Services’ dba ‘Liberty Dollar,’ a new business entity. Without mentioning the recent ‘Warning’ by the US Mint or its unfounded allegations against NORFED, Bernard von NotHaus, the Monetary Architect for the Liberty Dollar explained that, ‘We simply realized that the Liberty Dollar would succeed easier and faster without any political baggage.’ Von NotHaus went on to explain, ‘Lets face it. The Liberty Dollar did not come with an owner’s manual. As the world’s first “free market currency” that is 100% gold and silver based, there is no proven model to follow. We are proving and improving our model currency every day and have been for over 30 years of research, design, and deployment. And change, it will. That is simply a sign of maturity and the will to survive in the marketplace.’ And while the Liberty Dollar has dropped the acronym NORFED and all the political rhetoric calling for the repeal of the Federal Reserve and the income tax, von NotHaus swears the Liberty Dollar has retained all the best intentions and announced with a broad grin, ‘We’re only in it for the money.’ Henceforth, the ‘new’ Liberty Dollar is politically neutral and dedicated to ‘Protecting and growing your money — one Liberty Dollar at a time.’ It will be specifically marketed to businesses as a ‘private barter currency’ that is profitable for businesses and consumers, and good for the community…The new ‘Liberty Dollar’ will make every effort from the ‘get-go’ to insure that the new currency is not mistaken as part of the US Mint or the US government’s monetary system. One thing that von NotHaus remains very sure of is that he does not want any confusion between the Liberty Dollar and the US dollar by the federal authorities. He remains adamant that the Liberty Dollar is a legal private currency and that Americans are free to use any medium of exchange in commerce. To reinforce that opinion, he recently quoted Andrew Williams, spokesman for the Federal Reserve Board in Washington, DC, who said, ‘There is no law that says goods and services must be paid for with Federal Reserve notes. Parties entering into a transaction can establish any medium of exchange that is agreed upon.’” Von NotHaus also reported: “I am pleased to inform you that we have opened a new bank account for the Liberty Dollar business as ‘Liberty Services.’ So it is back to business as usual.” Even though NORFED — once so politically motivated — no longer exists, the Liberty Dollar (not a “coin” or “legal tender” or “current money”) remains “a moral, legal, and Constitutional currency” and is still “the world’s only physical, value backed currency”. The company, in its latest incarnation, is not anti-government. Liberty Services (“A non-profit entity, although it is still philanthropic with no net income”), does not intend to overthrow or replace the current US monetary system, and its Liberty Dollar is no longer against the Federal Reserve or the IRS. “Quite frankly my Dear...we don’t give a damn about the Federal Reserve or its fiat money...we only care about you and your money.”
In February of 2007, von NotHaus announced yet another project: “Acting within a group of RCOs and other interested parties, we have decided to answer the call to action by decentralizing the Liberty Dollar concept and developing a common monetary platform that will provide a Liberty Dollar to anyone. Yes, anyone! Hopefully everyone! Want a Liberty Dollar for your family, town, business or organization? How about an anniversary or your state?” He mentioned that “we already have about a half dozen projects in the talking stage,” one pertaining to a coffee shop and another to a well-known town wishing to commemorate its anniversary. “Where is all this going? In the largest context, Private Liberty Dollars exemplifies the further decentralization that we have been witnessing in other industries for many years and has been turbo charged by the Internet. Why use a depreciating currency when you can use your ‘own’ appreciating money?” The first such piece seems to be a $20 medallion from Gillie’s Coney Island (http://www.gilliesconeyisland.com/), a restaurant in Mount Morris, MI (the coin shows an image of the establishment and simply says “Gillie’s Mt. Morris/Michigan”). I obtained one from the eatery’s owner, Mr. David Gillie, who refers to it as “The FIRST ‘BRANDED’ issue”. The second piece in the “Private Labeled Liberty Dollar series” hails from the Chambersburg, PA (http://www.chambersburglibertydollar.com/index.htm). It showcases a very distinctive design: the royal-looking Pennsylvania coat-of-arms, along with the word “CHAMBERSBURG”. I obtained one from Mr. Peter Hallock (RCO for Chambersburg).
The Liberty Dollar soon underwent another transformation: in order to mark the 10th anniversary of his alternative currency, von NotHaus announced (on January 2nd, 2008) that the latest medallion would “feature a special 10th Anniversary Hallmark! In fact, all the 2008 Silver Liberty Dollars will be ‘localized’ with a custom Hallmark. That's right, the reverse of the 2008 Silver Liberty Dollar will be hand stamped with a punch and sledge hammer by the Regional Currency Officer. Each Liberty Dollar will carry the name of the city, business, region, church or group to maximize local acceptance and defy the US Mint warning that ‘use’ of the Liberty Dollar is illegal…This unique ‘local hallmark’ concept is a direct result of the conference calls I had with the Regional Currency Officers (RCOs), who told me to either mint more Liberty Dollars to meet their merchants' and clients' demands or they would make their own.” The “generic” Liberty Dollar format “allows the Regional Currency Officers to actually ‘coin’, i.e. to ‘stamp’, their own local custom Hallmark on the reverse of the new $20 Silver Liberty Dollar. This new gorilla tactic explodes the Liberty Dollar model while decentralizing it for more grassroots activism.” Furthermore, “Two innovations have been incorporated into its design to eliminate any possible confusion: First, as the 2008 Liberty Dollar is a ‘private voluntary barter currency’ the PVBC acronym had been added to the currency so there is no confusion about the Liberty Dollar. It is NOT government money…Second, in keeping with other ‘brand name’ practices, the acronym MSRP (Manufacturers Suggest Retail Price) has been added to fully disclose that the face value of $20 is the MSRP. Please note, the $20 Liberty Dollar is NOT denominated in US dollars…The Liberty Dollar is a NEW currency. It is denominated in ‘Liberty Dollars’.” As far as this marketing gimmick goes, it seems as though there may be no end in sight for the endless types of costly hallmarked medallions (http://www.libertydollar.org/ld/press-kit/2008ld_images.htm) that devotees of the Liberty Dollar might be expected to buy.
Before closing, I should provide some basic information about the specific denominations that have been shrewdly adopted by NORFED. According to one of the pages at their Web-site, “When the Liberty Dollar was introduced…the initial $10 Silver Base was established at one Troy ounce of .999 fine silver. In other words, every ten Liberty Dollars, regardless of its denomination, was backed by one ounce of fine silver. Of course, many people were worried about what would happen to the Liberty Dollar when the spot price of silver went over $10 per ounce.” At some future point, a new $20 warehouse receipt series — identified with “$20 Silver Base” — would be issued. The new $20 denomination certificate would be backed by one ounce of silver, the $10 certificate would be backed by ½ oz., the $5 by ¼ oz., and the $1 by 1/20 ounce. Von NotHaus provided more details in the monthly Newsletter from March 2004: “The ‘Crossover Point’ [also referred to as the ‘Moveup Point’] for the Liberty Dollar from the current $10 Silver Base (one Troy ounce of .999 fine silver backs $10 Liberty Dollars) to the new $20 Silver Base (one Troy ounce of .999 fine silver backs $20 Liberty Dollars) will occur when silver's thirty day moving average stays over $7.50 for thirty [consecutive] calendar days.” It did not take inordinately long for this to finally occur. On November 24, 2005, (after 2 earlier tries) NORFED implemented the long-awaited official “Move Up”. For the company’s first seven years, their one ounce medallions were predominantly available only in $10 denominations. But after that fateful Thanksgiving Day, all of NORFED’s one ounce medallions would henceforth bear the $20 denomination exclusively. It must be mentioned, however, that for a brief period of time, there evidently was a kind of transition period in which both denominations (the $20 one ounce medallions and the $10 one ounce medallions) were being sold/used simultaneously — there exists, for example, a 2004 one oz. $20 medallion (purportedly, according to one source, not actually released until 2006), a 2005 one oz. $10 medallion, and a 2006 one oz. $10 Puerto Rico medallion. The November Newsletter explained that “An increasing number of Americans have actually gotten ahead of ‘inflation’ with the new $20 Silver Base Liberty Dollar [this statement implies that NORFED actively began selling the new $20 Silver Base Liberty Dollars ahead of time]. You must be ahead of inflation to profit, and that is exactly what the Liberty Dollar has done. Over time, silver will rise more, and the Liberty Dollar will Move Up to the $50, $100 and beyond, as it is designed to always keep you ahead of inflation and preserve your purchasing power.” Clearly, these periodic upgrades to NORFED’s “dynamic currency model” had been planned ever since the company was founded. On January 16, 2008, von NotHaus announced that they were preparing “to Move Up to the $50 Silver Base!” This important “Move Up Point” would take place just as soon as “the 30 day moving average for silver has stayed over $16 for 45 consecutive calendar days.” He explained the rationale: “Doesn't it just make sense that when the underlying commodity that backs the currency increases in value, shouldn't the purchasing power of that currency also increase in value? Of course! And isn't that the essence of an inflation proof currency? Absolutely! In fact, when you think about it, the only way the Liberty Dollar can accommodate higher commodity prices is to increase its Face Value…Whereas the first Move Up was only a ten dollar difference (20-10=10), this second Move Up will provide a thirty dollar difference (50-20=30). This will give the currency a much wider window of operation and much larger margin of profit for you. And while early Liberty Dollar supporters doubled their money on the first Move Up, this time your purchasing power will increase two and half times! Or 500% if you started with the $10 Base. Is there anybody who does not want to double his or her money? If so, please continue to use the depreciating US dollar.” On February 8th, von NotHaus asked us: “Is the Move Up some wild wacky idea to defraud you of your hard earned US dollars? Hell No. The Liberty Dollar defrauds nobody. It is the government money that is defrauding you!!! Since the day the Liberty Dollar was introduced on October 1, 1998, I have specified the exact monetary structure for the new currency to respond to higher silver prices and published the ‘Move Up’ points”. These include two future, post-$100 transition-points: the $250 Silver Base ($84.00 30 day moving average) and the $500 Silver Base ($211.50 30DMA). “If you were onboard for the first Move Up then your money DOUBLED! This time it is even better! Now you can TWO AND HALF TIMES (2.5XY$) your money!!” To make this happen, his supporters just needed to do one simple thing: “Get some Liberty Dollars…BEFORE it Moves Up.” The Liberty Dollar did indeed Move Up from the $20 to the $50 Silver Base on Easter Sunday, March 23, 2008. “There are four denominations/sizes to choose from: one ounce $50 Silver Libertys, two-fifths $20 Silver Libertys, one-fifth $10 Silver Libertys and one-tenth $5 Silver Libertys.” The Liberty Dollar later made its first “Move Down” (back to the $20 base) on January 16, 2009.
Now that we know the basics, I must attempt to discuss a convoluted and protracted chapter in the life of the Liberty Dollar: “On Tuesday, March 20, 2007 the Liberty Dollar filed suit against the U.S. Mint in U.S. District Court in Evansville, Indiana. The organization asked the court to declare that the use of the Liberty Dollar is not a ‘federal crime,’ as claimed by the U.S. Mint. And the organization further asked the court to enter a permanent injunction against the U.S. Mint requiring it to remove any reference that the use of Liberty Dollars is a federal crime from its website.” The Mint’s warning, by the way, may have ultimately proved to be counterproductive because it actually drew an increasing number of people — who sympathized with its underdog's stance for individual freedom and “real money” — to the Liberty Dollar. In an e-mail soliciting moral/monetary support for his cause, von NotHaus stated “I know not how you may decide but for me: Give me Liberty Dollars — or give me death. For it is only by banding together and adopting a free and independent currency which provides us with ‘just weights and measures’ will we be able to throw off the yoke of a manipulated monetary/tax system and generate a peaceful and prosperous society.” In that month’s Newsletter, the free-market advocate wrote: “The Liberty Dollar organization denies that its more than 100,000 proponents are federal outlaws. It identifies them as law-abiding citizens who ‘legally have made the inflation-proof Liberty Dollar America’s second most-popular currency.’ And the organization demands that the federal government cease and desist from threatening them. The Liberty Dollar group maintains it is protecting the right of every American to use or barter any ‘money’ they may voluntarily agree to utilize.” Another message, in April, made another appeal: “PLEASE don’t let the government steal your right to use gold and silver as a private voluntary currency between consenting adults.”
Months passed. Then, on the morning of November 14th, “a dozen FBI and Secret Service agents raided the Liberty Dollar office in Evansville. For approximately six hours they took all the gold, all the silver, all the platinum and almost two tons of Ron Paul Dollars that where just delivered last Friday. They also took all the files, all the computers and froze our bank accounts. We have no money. We have no products…We have nothing but the will to push forward and overcome this massive assault on our liberty and our right to have real money as defined by the US Constitution. We should not to be defrauded by the fake government money. But to make matters worse, all the gold and silver that backs up the paper certificates and digital currency held in the vault at Sunshine Mint has also been confiscated [on the same day]. Even the dies for mint the Gold and Silver Libertys have been taken. This in spite of the fact that Edmond C. Moy, the Director of the Mint, acknowledged in a letter to a US Senator that the paper certificates did not violate Section 486 and were not illegal. But the FBI and Services took all the paper currency too.” The majority of these were seized from the company that printed all the warehouse receipts: Verify First Technologies, Inc. in Paso Robles, California. “The possibility of such action was the reason the Liberty Dollar was designed so that the vast majority of the money was in specie form and in the people’s hands. Of the $20 million Liberty Dollars [in circulation], only about a million is in paper or digital form.” I would later learn that on November 14th the FBI actually initiated simultaneous raids in FOUR separate locations. Apart from the three locales I just mentioned, Kevin Innes, who runs the RCO in Asheville, North Carolina was also targeted (100 of his copper Ron Paul Dollars were seized). “We cannot allow the government to steal our money! Please don’t let this happen!!! Many of you read the articles quoting the government and Federal Reserve officials that the Liberty Dollar was legal. You did nothing wrong. You are legally entitled to your property. Let us use this terrible act to band together and further our goal — to return America to a value based currency.” Von NotHaus was trying “to absolve the Liberty Dollar as a legal, private, voluntary, barter currency as soon as possible.” In fact, “Our number one mission is to get your property retuned to you ASAP.” On Nov. 16th, he wrote (his frequent and annoying Alerts on these topics had seemingly replaced his monthly Newsletter): “I personally spoke to FBI agent Andrew Romagnuolo shortly after he and his gang invaded the peaceful home of the Liberty Dollar. He told me that the raid was related to the US Mint's warning and the beginning of a criminal investigation. This is the first battle of a long war that I intend to win!” He then urged the people who are owed an existing order and want to get their money back, as well as people who want to redeem their paper Certificates or digital Liberty Dollars to join his Class Action Lawsuit. “Your participation is absolutely critical. If you don't join the Class Action Lawsuit you will not get your money back.” He also announced that he would soon establish a Legal Defense Fund (this was later replaced with something called the Contingency Club; I first saw mention of this in the Alert from June 20, 2008). “Its purpose is to win the criminal case and get your money back. It will take money to make it successful. So your contribution is also critical. Please don't let the government steal your money…I regret to inform you that the Liberty Dollar office is now closed. The government boys took everything except for the desks and chairs. We have no stock, no records, no money. I can't even change the phone message because they took the phone manuals. Nor can I answer the thousands of email and calls from a national organization that now numbers into the hundreds of thousands. I am the last man standing. I need your help…Now is the time for us to help our selves and our great country as it faces the greatest monetary challenge since the Revolutionary War…Now is the time to band together and support our fight for value based currency as never before. Now is the time to throw off the yoke of a manipulated monetary/tax system and generate a peaceful and prosperous society.” Eleven days later, he commented: “Quite simply, there is a lot to be thankful for. When we started the Liberty Dollar we did not get an instruction manual. We did not know how the Liberty Dollar was going to save the country from a monetary crisis. But we vowed not to let our great country falter without trying. We all, even Agent Andy, have a civic duty to our country. We are commanded by the Declaration of Independence: We hold these truths to be self-evident...That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. We shall not let this country fail to live up to the ideals upon which it was founded by our Founding Fathers. Let us each vow that our country will not falter on my watch!” He offered sincere thanks to his supporters “for supporting the Liberty Dollar that exemplifies those very ideals. Our Founding Fathers fought and died for them, we shall do nothing less.”
From the outset of this crisis, von NotHaus was fairly convinced that he faced an “eminent threat of arrest and possibly many years in prison”. He anticipated being arrested on any one or all of the government’s charges (mail fraud, wire fraud and money laundering) and that “a Grand Jury, indictment and arrest seems to be a given at this time.” Nevertheless, the “arrestee-in-waiting” remained optimistic: “I see my arrest and trial as a golden opportunity to win and return our great country to a value based currency.” On December 5th, he declared: “In defiance of the brutal raid that confiscated all of our metals, computers and almost everything, except our free independent spirit…The Liberty Dollar [office] has re-opened” (albeit to a very limited capacity) as “Liberty Dollar Numismatics” (they have not “become just a ‘collectable’ business. We remain dedicated to our original goals”). He also advertised that a “new ‘Arrest’ Hallmark has just been created to mark special items issued during these difficult and very limited times too. In all likelihood, the Arrest Dollar will only be available between now and my arrest, as it seems unlikely that I will be doing any hallmarking after I am arrested. Appropriately, the Hallmark, features ‘Handcuffs’, and will be stamped on special items or any Liberty Dollar products you submit for Hallmarking. As a means to raise funds for our legal defense, the cost is $10 per Hallmark.” He offered a cautionary note: “We could be raided again! You could lose whatever you send to Liberty Numismatics…but if you don't send anything…I regret that we will lose the Liberty Dollar and the ideals it represents.” Not surprisingly, he then stepped up the requests for support/donations: “Either change your money or lose it…The longer you wait the more you lose. This country, the world, is headed towards a major monetary crisis. Not since Rome fell has man faced such an immense event. This collapse will make the Great Depression look like a cakewalk. We are headed towards a global hyperinflationary depression. Soon most people will be millionaires in a soup line…if not in prison. Get out of the soup line! The sooner you change your money the more you will make or at least preserve. For your own protection, please take action right now!!! Buy Silver immediately. Support the Liberty Dollar model with a donation. We need a survivable monetary system. We need your help…When Rome fell, it was the world, as they knew it…” Von NotHaus later expanded this train of thought: “As the greenback sinks, metals will appreciate and give rise to a new value based currency…this will not happen by design but by simple need. Why did the US government become FedEx's largest customer after it did everything to kill it in the early 1970's? Because of need. Ditto with the Liberty Dollar — the ‘FedEx of Money’.” In spite of these warnings, “The last thing we want is the US dollar to collapse. This would be terrible, beyond words. That is the main reason the Liberty Dollar is designed to be a ‘private voluntary barter currency’ and functions on a dollar-to-dollar exchange basis with the US dollar. The Liberty Dollar provides a gradual, evolutionary monetary model to return our country to a value based currency.” A few months later (April 2, 2008), pondering whether the Feds would descend on Evansville a second time, he offered a slightly more optimistic message: “Scared about a second raid? Forget it!! The G-boys have never raided a place twice and even though we know the Liberty Dollar is special…it is just not their MO. The sequence is: Investigate, Affidavit, Raid, Intimate, Grand Jury, Indictment, Arrest, Trial…and in the case of the Liberty Dollar…Acquittal. All this takes about five years on the average.”
Over the next several months, von NotHaus was relentless in his efforts to drum up support for his organization. In many of his recurring Alerts, he continued preaching about the legal actions — these included the Class Action Lawsuit and/or Wrongful Seizure Lawsuit and the Rule 41(g) Motion (for recovery of property) — that were being undertaken in order to recover all the confiscated material from the wrongful search and seizure. On December 14th, he declared: “We plan to list everybody by name on the lawsuit [to recover the wrongfully seized property of the Warehouse Receipts and the digital Liberty Dollar holders]. We want the judge to see how many people the US government has injured. It is important for the judge to know that thousands of good people from all over the United States, who committed no crime, have been injured and need immediate restitution.” In order to inspire as much personal involvement from as many people as possible, he tried to convince them/us that it was THEIR/OUR responsibility to battle the government. “The property they seized at Sunshine backed the legal, signed Warehouse Receipts. That property was, and still is, owned by the bearers of the warehouse receipts and the digital Liberty Dollar holders. That is your property that they are trying to steal…The gold and silver seized from the issuing warehouse was not the property of the Liberty Services, Liberty Dollar, myself, or even the warehouse…it remains the property of the bearer warehouse receipt holders. It is YOUR property.” Therefore, in order to protest the government’s appropriation of all this valuable bullion (a few months later, on June 20th, he informs us that it was precisely “$3.5 million in gold and silver that was wrongfully seized”), it was incumbent upon every single one of US to sign up for the lawsuit. “Please don't let the government steal your money and drive the Liberty Dollar out of business.” He also announced that the “economic persecution” was getting worse. “I am shocked to inform you that we have learned that the FBI is moving aggressively to forfeit ‘their’ seizure for auction immediately!” Unfortunately, this type of “draconian raid/seizure/forfeiture by this government is SOP — Standard Operating Procedures…Once raided, the victim need not be arrested or even charged with a crime before his/her property can be forfeited and auctioned. This is so common that the police often refer to the seized property as ‘their’ property. After all, like any common thief, they stole it…its ‘theirs’! Or so they would have you think!” Six days later, he informed us that “A recent article in the Evansville Courier & Press headlines: ‘Business booming after raid’. And indeed it is.” He then proceeded to remind everyone that even though “business may be booming” it was necessary to “please donate” anyway (it is, after all, “costly to defend your right to use gold and silver and get your property back”). On July 1st, 2008, whilst the actions of the U.S. government were steadily moving “your gold and silver closer to auction and the outright theft of your legal property”, he again urged everyone to take action by adding their names to the lawsuit because he still wanted “to get ‘5,000 people involved’”. He asked: “Want to get your name in history?” He then assured his supporters that the attorney had “agreed to include everybody's name” in the suit. “That's right, we are going to list all the names in what might be the largest case in history…This is your opportunity to stand tall for your monetary values.” Each person to join the lawsuit would “be personally represented by the attorney” at no cost whatsoever (“except ten percent duty on all returned material”). By this time, the terminology von NotHaus was utilizing had become increasingly more confusing. It was difficult to keep track of which legal action he was referring to. At one point, he even had to advise his supporters: “Please be aware that our legal action has changed several times as the government tries to define its ill-conceived case against the Liberty Dollar and your property.”
On August 5th, von NotHaus admitted that “There seems to be some confusion regarding the company name, which is understandable since the name and business entity has changed several times. The company is now incorporated in Nevada as ‘Liberty Dollar Inc.’ Please send as many checks as possible and make them all payable to ‘Liberty Dollar.’” But the opportunity to do so might not exist for much longer “as I regret to inform you that the Liberty Dollar may close. This is not hype or threat. It's simply hard reality. It's sad.” He expressed disappointment that he wasn’t receiving enough orders/donations/contributions to allow the company to stay in business. “Yes, the initial response after the raid, eight months ago, was tremendous and you put the Liberty Dollar back in business. Thank you! But the last three months have been terrible. Even with free rent and reduced rates from our attorney, zero income doesn't cover the phone bill, etc. The government wins because they play the attrition game. We lose without your support…Please don't ask, ‘Why did the Liberty Dollar close?’ PLEASE TAKE ACTION. You only get to keep what you are willing to fight for. If you are not taking part you will lose your property. So I hope you will continue to support the Liberty Dollar — with an order and a donation.”
In the Alert dated August 18th, the ever persistent von NotHaus once again tried to rally his supporters: “More than just trying to run the Liberty Dollar out of business this is about economic and political power. The government is clearly trying to destroy the Liberty Dollar business.” He’d become especially furious about the two tons of Ron Paul Dollars that had been seized during the FBI raid back in November of 2007. Not to mention the Peace Dollars that were on order at the time of the raid. “Unfortunately, the brazen audacity of the Federal Bureau of Investigation (FBI) to attack political organizations is nothing new. But to raid a large national political organization such as Liberty Dollar participating in a hotly debated presidential election is unheard of, and wreaks of political oppression. The title of a commentary by the Great Depression economist, Richard H. Timberlake, Jr., PhD, puts it right: ‘Gestapo raid on coin-producing enterprise.’ As authorized by the Search and Seizure Warrants, the FBI raided NORFED — National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code. Can there be any doubt that NORFED was a political organization? It was openly opposed to laws passed by US Congress, the non-Federal non-Reserve IOUs that pass as ‘legal tender’ fraud and an oppressive tax scheme that is universally despised by every ‘taxpayer’ and a growing body of non-taxpayers! Its name, sheer size and the booming success of its fund raising product, Liberty Dollar, obviously caught the attention of the federal authorities and they took the only action they trust — Attack! It's a given that every federal investigation begins with a wiretap. That is clear, simple and SOP. So there is every reason to accept as fact that the attack on the national Fulfillment Office of NORFED was specifically timed to confiscate the Ron Paul Dollars and the new Peace Dollars for maximum impact. There is no doubt that the FBI knew when the two-ton shipment of Ron Paul Dollars would arrive and they planned their attack for just two days after delivery to damage the Ron Paul campaign. This is wrong and grossly unconstitutional! This was clearly ‘political oppression’ of campaign material. Just imagine what 60,000 campaign buttons, T-shirts or anything means to a political campaign. But WOW, just think what $60,000 Ron Paul Dollars would have accomplished at that critical time in Congressman Paul's campaign. And this is no little campaign for dogcatcher. This was, and still is, a presidential campaign by a well-established, 30-year US Congressman for the President of the United States! This is the most important political election in the country! And the Federal Bureau of Investigation goons confiscated over $100,000 worth of presidential campaign materials!!! This was nothing short of a Nazi style attack to eliminate the competition. This is an assault on our right to political expression as guaranteed by the First Amendment…The attack on NORFED and Congressman Ron Paul's presidential campaign cannot be allowed to stand…we demand the immediate return of all Ron Paul Dollars, Peace Dollars and all my political materials that were seized…The FBI attack on NORFED was the same oppressive tactics they employed against the Peace Movement in the 1960s. Its code name then was COINTELPRO: ‘Counter Intelligence Program.’ It was used against John Lennon, Timothy Leary, Martin Luther King and thousands of other innocent people dedicated to a peaceful society.” He goes on to state that COINTELPRO “was a series of covert and clandestine projects/attacks conducted by the FBI aimed at investigating and disrupting dissident political organizations within the United States. The FBI used covert operations from its inception; however, the formal COINTELPRO operations took place between 1956 and 1971. The FBI motivation at the time was ‘protecting national security, preventing violence, and maintaining the existing social and political order.’ Sound familiar?! Targets included Groups suspected of being subversive, such as student political organizations; those in the non-violent civil rights movement, almost all groups protesting the Vietnam War; and even individual student demonstrators. The directives governing COINTELPRO were issued by FBI Director J. Edgar Hoover who ordered FBI agents to ‘expose, disrupt, misdirect, discredit, or otherwise neutralize’ the activities of these movements and their leaders. If you went to college in the 60s you were spied on. Guess what? The same FBI is still spying on you today! Recent news accounts have disclosed a burgeoning government (Pentagon, NSA, FBI, CIA, etc.) campaign for ‘detecting, identifying and engaging’ internal enemies that include a database of personal information. The FBI is using ‘national security letters’ to obtain secret access to your personal records and tens of thousands of Americans. And the National Security Agency's interception of telephone calls and e-mails from the United States — without notice to the federal court that has jurisdiction over domestic spying — had been going on since 1978. OK…so maybe you had some privacy from 1971 to 1978. But not NOW! In the same month that NORFED was attacked, The Washington Post disclosed an exponentially growing practice of domestic surveillance under the USA Patriot Act, using the FBI's ‘national security letters.’ Originally created in the 1970s for espionage and terrorism investigations, the letters enable the FBI to secretly review the private telephone and financial records of suspected foreign agents. But the hated Bush regime, referring to the Patriot Act, transformed the purpose of those letters to permit clandestine scrutiny of U.S. residents and visitors who are not alleged to be terrorists or spies! This series of revelations about domestic spying that have emerged in the past few months are always defended in the name of fighting ‘terrorism.’ This argument is a complete and utter lie. There is no doubt that these programs against NORFED, the Liberty Dollar, you and me have been enacted, enabled and deployed to stifle constitutionally protected domestic political dissents. The proverbial handwriting is on the wall. The US government is against the very People who created it. And to make matters worse for you, me, the economy, your children's education, etc., the government stands for war…war…and more war! Enough!” To von NotHaus, what the government was doing to the Liberty Dollar was a “crime”, and he was not reluctant to use an expletive or two to get his point across. Afterwards, he interjected: “Excuse me, but what the hell is the FBI doing spying on you and me? And why did they raid the Liberty Dollar? Why did the FBI confiscate the Peace Dollars and Ron Paul Dollars?! To kill political dissents. Clear and simple! When I did six years in the 60s at Kansas State University, the person who published the radical ‘student’ newspaper turned out to be an FBI agent! I now know he was part of the government COINTELPRO. The only difference between Kent State and Kansas State was that the government did not murder four students at K-State. The only difference between the FBI raid on NORFED and a raid on your home is that I have already been raided. If you want to protect your gold and silver, if you support a peaceful society, then please support the Liberty Dollar with a donation or at least an order. Love the country? Love your home? Have a vested interest in the economic system? Please take action”. According to a more calmly-worded press release issued on the same date as the Alert, the “Liberty Dollar Group…denounced the confiscation as political oppression of the Ron Paul presidential campaign and asserted that the seizure of the Ron Paul Dollars constitutes an attack on its First Amendment right of political expression. They point that in addition to the Ron Paul Dollar with a presidential candidate engraved on the front [plus the slogan VOTE FOR TRUTH], the Peace Dollar features the Statue of Liberty torch with STOP THE WAR — clearly an ‘expressive act’ with political intent protected by the Bill of Rights…Von NotHaus says he's ‘beyond outraged’ over the government's brutal oppressive behavior. ‘It was bad enough that the U.S. Mint branded us as criminals for exercising our right to freely exchange the private gold and silver currency,’ he said. ‘But interfering with Ron Paul's presidential campaign is clearly a Gestapo tactic.’” He explained “that the Ron Paul Dollar was created to give citizens the opportunity to own valuable metals, while providing important support for the Ron Paul campaign.” And of course, von NotHaus “intended to make a significant donation for every Ron Paul Dollar issued.” The “fiery monetary architect” pointed out that “The US dollar has lost over 50% of its value in the last ten years, while the Liberty Dollar has appreciated by 500%! Would you rather make five times your money or lose half of it? I think the government is trying to crush our inflation-proof currency plus Ron Paul's free market and peace campaign in a single stroke.”
Amidst all of this turmoil, von NotHaus had already made up his mind that he would soon be hanging up his spurs. On June 20th, he reminded his supporters: “As I have mentioned several times, I agreed to give the Liberty Dollar my time and money for ten years. I have decided to keep to that schedule and will retire on October 1. Of course I remain responsible to resolve all the legality issues”. On August 5, he reiterated that he viewed these legal matters “as the golden opportunity to vindicate the Liberty Dollar as a legal currency.” Six days later, he commented: “I have never stopped working to have your property returned which will certainly continue after I retire. Trust me your property is extremely important to the Liberty Dollar and me. We have redoubled our efforts to demand your wrongfully seized property be returned. This will not happen overnight. In fact, this will take some time, but it will happen so keep those Warehouse Receipts as I look forward to redeeming them!” Finally, on September 27th, he officially announced his successor: “I am very pleased to introduce you to Daniel Priest, the CEO for the new entity, Liberty Dollar Inc. Dan is a former Microsoft executive and is well prepared to deal with the rough and tumble environment of the Liberty Dollar. He became involved with the Liberty Dollar about five years ago as a Liberty Associate and advanced to RCO about two years ago. He has consistently showed his resolve for the ideals exemplified by the Liberty Dollar and a strong desire to really bring about a peaceful change to the current monetary system...And while Dan takes the helm of Liberty Dollar, he is not responsible for any of the legal issues that the former entity faces. I remain solely responsible for all legal problems and will contribute Legal Updates to the Newsletters and Alerts. I remain dedicated to resolving the legal issues surrounding the Liberty Dollar and vindicating the currency in court…Our attorneys and I have no doubts that we will recover all the property as the government trips over their ill-conceived raids. But the government is big and slow…very big and very slow…and resolution will take time…most likely years.” On October 1, 2008 — exactly ten years after the Liberty Dollar was introduced — von NotHaus stepped down as the head of the organization he built (“I have turned over the reins of the Liberty Dollar to a new team and I feel very confident about the longevity of the ideals it represents”). In his final Alert, he wrote: “When a hearty group of concerned Americans, led by Jim Thomas of Media Bypass magazine and I [Thomas was National Coordinator for the introduction of the Liberty Dollar], launched the Liberty Dollar, we thought the ‘patriot’ community would jump at a currency that exemplified Constitutional values. Instead, most were too suspicious even of their own shadow, and the Liberty Dollar almost failed. For many years, most people could not get past the question: ‘Why should I pay twice the price for silver?’ I hope that by now you know that the Liberty Dollar is a ‘currency’ and not a substitute for silver. Those early, brave souls who understood and supported the Liberty Dollar have been richly rewarded…Unfortunately, throughout most of its 10 years, the Liberty Dollar has been shunned.” Even today, “there is still a lot of misunderstanding on the part of mainstream Americans regarding money if not the whole CFR [Council on Foreign Relations?] controlled monetary/political system”. There were, however, some positive stretches: “The middle years were punctuated by many bright times and important issues.” He then resorted to fear-mongering once again, warning his supporters of the economic “apocalypse” that was in store for all of us. “But now we face Fear vs. Fear. Fear of the FBI (aka Fumbling Bunch of Idiots) vs. Fear of Inflation. There is no doubt that the raid scared off a lot of LD associates and businesses whose ongoing support is critical to fight the bellybuttons (my euphemism for the excretory orifice) who are trying their best to drive the Liberty Dollar out of business while we strive to return America to a value based currency ala the Liberty Dollar model. As Dictator Roosevelt said, ‘The only thing we have to fear is fear itself.’ And while that may be one of the only truthful things he said, the coming economic collapse is something to prepare for, if not fear, for it will be the worst event in our lives. It will be much worse than the Great Depression and may last much longer. And while you hear the word ‘collapse’ often today, rarely is there any real definition as to what happens in a collapse. Well, to paraphrase my presentation at the Silver Summit, the coming Economic Collapse will be a global monetary apocalypse that will mirror the Fall of Rome and include the following: National currency controls…Nationalization of major industries…layoffs…strikes…domestic strife…food shortages…massive unemployment…bankruptcies…greatly reduced standard of living…road blocks…marshal law…military troops at major intersections…passport and travel restrictions…a total lockdown of the country…until the masses cry out…‘Give me anybody…Anybody who will bring sanity back to the monetary system…’ rise of a dictator…and a totalitarian government. Just look at these historical experiences: France and the rise of Napoleon in the1800's, Germany and the rise of Hitler in the 1930's and China and the rise of Mao in the 1940's. We are all going to be millionaires…in the same soup line during the coming hyperinflationary depression.” And of course, the controversial/historic $700 billion financial bailout plan/bill (it would be signed into law by President Bush on October 3, 2008) was simply “the government's way to gain more control.” He continued: “Now I am not usually a doom-and-gloom guy. I developed the Liberty Dollar to bring a real solution to the currency situation that I realized in 1974…some 34 years ago! And for all these years I have strived to bring about a proven, positive, peaceful and profitable solution to our country's controlled fiat monetary system.” He then listed the main reasons why the Liberty Dollar was created: “To put a powerful proactive symbol in the hands of the people that builds consensus every time the currency changes hands”; “To popularize and educate more people about the Federal Reserve fraud and focus attention on the Internal Revenue Service lie”; “To provide an honest medium to facilitate exchange and provide better communications between all groups of concerned Americans”; “To bring about the repeal of the Federal Reserve and the end of fractional reserve banking through education and mass popular support”; and “To help the American people preserve their purchasing power and alleviate some of the pain and suffering from the imminent government planned national crisis.” Throughout the past decade, “We stated very clearly that it was our intent to achieve these goals slowly and that our success would be a gradual, evolutionary process rather than a costly and destructive revolutionary process. That evolution begins with education, as one person reveals the truth to another — that the Federal Reserve is neither federal, nor does it have any reserves. And that the government uses its debt based monetary system to manipulate our money and our lives. We have done much of what we intended. But as America is still addicted to fiat money and big government, there is much to be done. We still need to Change the money to Change the country…I think it is ludicrous that the government would even try to make people think that they can't use their own gold and silver in any manner they wish. To articulate that point, I penned Bernard's Second Law of Money: Any law that purports to prohibit an American citizen from using a piece of gold or silver (or, for that matter, anything) in a voluntary transaction between consulting adults is preposterous, antagonistic to a free market, and totally without legal merit. And in case you missed Bernard's First Law of Money: When the people own the money, they control the government. When the government owns the money, it controls the people. We choose, therefore we are free. Every day we see a lot more control of the monetary system. The ‘news’ is confusing and will get increasingly confusing. Don't get confused. Stay with the truth. We are witnessing a global revaluation of money and everything denominated by it. Remember the three stages of truth: First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. The Liberty Dollar is following that similar path. Stick with the truth, hold silver and please support the Liberty Dollar…Now it is time for me to turn over the reigns to Dan Priest…I gave Liberty Dollar my best. I ask you to do the same. I look forward to resolving the legal issues and seeing the Liberty Dollar fulfill its potential…Thanks again for ten years of support. You made the Liberty Dollar the largest private value based currency in history. Now valued at well over $60 million at the new $50 silver base with over 200,000 supporters!”
A melancholy/wrathful von NotHaus emerged once again in the March 2009 Newsletter: “It is with mixed emotions that I report that Dan Priest is gone.” In a controversial turn of events (I won’t go into any details) the new CEO’s tenure as “national currency director” only lasted a handful of months.
The occasion of von NotHaus’ “retirement” seems like a good place to end this listing, though I may later write a brief “postscript” in order to convey the outcome of all the legal issues. I apologize for the length of this listing. Bernard von NotHaus has some interesting views, and he has a unique way of expressing them. That is why I quoted so many of his words. In my opinion, the Liberty Dollar coins may have started out as an alternative currency, but over the years they became nothing more than glorified collectibles. A money-making juggernaut. In his earliest post-raid Alerts, when he began to seek donations from supporters, he began to show increasing excitement over “raging eBay prices”: “have you seen the prices of the Ron Paul Gold, Silver and Coppers Dollars. One day the copper is a buck and the next day $65 or more on eBay! Silver is in the $250 to $450 range! Just crazy! And that is not even for the special numbered or hallmarked editions.” (11/27/2007); “Seems like with all the added publicity from the Raid and sharply higher silver prices, the market is hot for Liberty Dollars. Of course, I never wished for the Raid, but we are certainly making lemonade out of that lemon! And you should too. In fact, many people are making a lot more than lemons or peanuts on eBay with the Liberty Dollar…So what is a regular Brilliant Uncirculated 2008 Silver Liberty Dollar worth? Would you believe $41.00?! Just ask Dave Gillie because that is what he got on eBay! The Liberty Dollar is now trading over face value!” (1/30/2008); the “one ounce 1998 Silver Libertys are now selling for up to $700 on eBay!” (3/17/2008); “Past issues have sold for much more than issue price. So this is a great way to support the Liberty Dollar at its time of need and if you need the money, eBay is a great way to profit. For example, just last week a 1999 Type 2 one ounce Silver Liberty brought $735 on eBay!!! That is more than a 100 times over the $6.50 initial issue rate!” (4/8/2008); he marveled at “the eBay prices of $200 for a $20 Silver Ron Paul Dollar or even $20 for the $1 Copper Ron Paul” (8/5/2008); “the hotly auctioned half ounce silver $10 Peace Dollar continues to move on eBay at $150 to $250 each!!!” (8/11/2008); “recently a Type II Silver Liberty issued in 1999 at $7.50 went for a cool $1,000 on eBay!” (9/30/2008). Von NotHaus quickly jumped on this bandwagon, and attempted to capitalize (strictly for the sake of the legal case, one would hope) on the willingness of collectors to part with their hard-earned greenbacks. Back on December 5th, 2007 he informed his supporters that “Our current business model is to auction the donated Liberty Dollars on eBay…as we continue to fight for your right to use gold and silver any way you chose and keep the ideals that the Liberty Dollar exemplifies alive…Old Liberty Dollars in any form are greatly appreciated…we need material for eBay.” Nine days later, he continued: “While we accept digital Liberty Dollar for donation, it is those damn non-Federal non-Reserve IOU Notes that are needed for the legal defense. Physical Liberty Dollars in paper and digital form that we can auction on eBay for more depreciating FRNs would be greatly appreciated too.” And, on January 1st, 2008: “Liberty Dollar has launched its own eBay auction to liquidate the Liberty Dollars that have been donated.” He also included a link to that specific page. And, on August 5th, 2008: “We really need your support or Liberty Dollar will close. Send a donation…everything is acceptable. If we can't bank it…we will auction it on eBay. Please show your support for the Liberty Dollar.”
The amazing, full array of Liberty Dollars can be viewed at the Web-site of Mr. Ron Goodger. This excellent resource offers a complete Liberty Dollar Encyclopedia:
http://sites.google.com/a/dishmail.net/liberty-dollar-encyclopedia/
Images of the Liberty Dollars can also be viewed at Mr. David Gillie’s site:
http://www.davegillie.com/id6.html and http://www.davegillie.com/id7.html
SILVER LIBERTY: This company — based in Breidenbach, Germany — produced coins that were specifically patterned after Bernard von NotHaus’ Liberty Dollar. According to their Web-site (http://www.silverliberty.de/silberliberty.html), there was an earnest desire for “Die Silberliberty” (The Silver Liberty) to be connected to the ongoing developments surrounding the Liberty Dollar — at the time, the silver-backed alternative currency had only recently been introduced. Upon being inspired by NORFED’s “complete private money system”, a man named Reinhard Deutsch (he authored the books Die Geldfalle and Das Silberkomplott) developed a similar venture as a way to introduce a “homogeneous system” — also based on gold and silver — to his homeland. He, along with his business associates, envisioned that the Silberliberty would evolve as a regional currency. All the silver (one ounce) coins would have a shared obverse (featuring a NORFED-like Lady Liberty, accompanied by the motto “TRUST YOURSELF” instead of NORFED's “TRUST IN GOD”), but the reverse would bear the logos of local entrepreneurs/businessmen (remarkably similar to von NotHaus’ “private label” initiative, which would not exist until 2007). Although Deutsch was a firm believer in “the advantages of parallel precious metal currencies”, his thinking went beyond the physical use/trade of bullion as “a regional money system”. Deutsch believed that “the future of money does not necessarily lie in the return to precious metal coins. At best, the model can be a didactical intermediate step, in order to advance society again to the monetary use of precious metals.” Deutsch speculated that the ideal means of exchange (and international payments) might well be Digital Gold Currencies (DGC), perhaps something similar to e-gold (a digital gold currency founded in 1996 by Dr. Douglas Jackson and Barry K. Downey; it is a system which allows the instant transfer of gold ownership between users). Deutsch had initially planned to mint all of his coins with a “10” (Euro) denomination (the only such piece he actually produced is the “10 WERT” Tauschmünze [Bartercoin] piece featuring a pretzel). NORFED, however, was going to halt production of its silver (one ounce) “$10” Liberty Dollar — replacing it with the (one ounce) “$20” Liberty Dollar — once the price of silver reached $7.50 for 30 consecutive calendar days (the changeover, as described above in greater detail, did indeed take place circa 2005-2006). “In anticipation of this development”, Deutsch decided in 2002 to produce a “small edition” of medallions with the “20” denomination (two “20 Wert-Value” Bartercoin/Tauschmünze pieces: one features a rendition of the Statue of Liberty — why not a German landmark instead? — and the other features a hot-air balloon). Unfortunately, the value of silver did not rise as quickly as expected, and the launching of the Silberliberty was delayed for practically 3 years because the “20” pieces were not saleable for the high price of 20 Euros. Deutsch concluded that imposing a denomination on the coins would impose too much rigidity into his project. It was completely unnecessary. “The number is actually just a concession to the habit of people to use money with an imprinted declared value.” So Deutsch resolved that future coins would not bear any type of pre-determined denomination, citing the Phoenix Dollar (please refer to my separate listing for this coin-issuing entity) as an example. In spite of this, no more Silverlibertys were actually minted. Deutsch, hoping that other motivated individuals would take his concept to the next level, decided to sell the existing supply as collectibles: “The Silverliberty is nevertheless the first feeble attempt to again introduce private silver money into Germany after over 100 years.” Reinhard Deutsch, sadly, passed away in 2007. It is worth mentioning that Mrs. Frauke Deutsch, the daughter of Reinhard Deutsch, has taken over her father’s Liberty Dollar Web-site (where she also maintains a link to her main Web-site: a gallery where the BullionArt/Silberkunst sculptures — miniatures which are made out of fine silver — of several artists are offered for sale). “My father produced this coin, together with two friends of him. He was faszinated of Bernard von Nothaus who is the founder of the American Liberty Dollar, and he belived that only silver and gold is real money and that the whole fiat-money system will breake down sooner or later…” From Mr. Mike Mokry, I purchased a Statue of Liberty piece. He stated that it is rare to find these on the market nowadays because, unfortunately, the person who made them “died one year ago. So the project did, it’s not possible to get more of these coins…” From Mrs. Frauke Deutsch, I purchased the “balloon” piece (the man who commissioned it owns Head Haarcosmetic GmbH, a haarstudio in Eschenburg. Not only that, he has a hot-air balloon of his own. “So you could change the coin either for a balloon ride [that is his hobby] or products from his hairdresser-shop.” The small text to the right of the balloon actually informs the bearer that the coin is exchangeable at the hair stylist’s salon; the address is provided) and the “pretzel” piece (the man who commissioned it owns the Bäckerei Orlemann. The text above the pretzel also informs the bearer that he/she can redeem the coin at all of the bakery’s branches. “The funny thing was: people bought the coin but nobody changed it back. They all kept it at home…”). All 3 coins are dated 2002.Return to the Main Index