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Saturday, June 29, 2013

The Liberty Dollar



Bernard von NotHaus is the creator of the Liberty Dollar and co-founder of the Royal Hawaiian Mint Company. He created the Free Marijuana Church of Honolulu. Von NotHaus was labeled as a domestic terrorist by the United States Federal Bureau of Investigation in 2011.

Griffin's advocation of a free-market, private-money system superior to the Fed caused Bernard von NotHaus to deploy such a system in 1998. Griffin states that von NotHaus's private silver certificates, known as Liberty Dollarsare "real money".

According to the evidence introduced during his 2011 federal criminal trial in connection with his involvement with the Liberty Dollar, von NotHaus was the founder of an organization called the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code, commonly known as NORFED and also known as Liberty Services. The FBI claimed that NORFED’s purpose was to mix Liberty Dollars into the current money of the United States and that NORFED intended for the Liberty Dollar to be used as current money in order to limit reliance on, and to compete with, United States currency.


Federal Government Raid and Confiscation


  • In September 2006 U.S. Mint informed Liberty Dollar users that federal prosecutors had determined that the circulation of the medallions is a federal crime.

  • In 2007 about a dozen federal government agents seized nearly two tons of coins that featured the image of Ron Paul, a Texas congressman. They also took about 500 pounds of silver and 40 to 50 ounces of gold.

Arrest and conviction

In connection with the Liberty Dollar business, a federal grand jury brought an indictment against von NotHaus and three others in May 2009, and von NotHaus was arrested on June 6, 2009. VonNotHaus was charged with one count of conspiracy to possess and sell coins in resemblance and similitude of coins of a denomination higher than five cents, and silver coins in resemblance of genuine coins of the United States in denominations of five dollars and greater, in violation of 18 U.S.C. § 48518 U.S.C. § 486, and 18 U.S.C. § 371; one count of mail fraud in violation of 18 U.S.C. § 1341 and 18 U.S.C. § 2; one count of selling, and possessing with intent to defraud, coins of resemblance and similitude of United States coins in denominations of five cents and higher, in violation of 18 U.S.C. § 485 and 18 U.S.C. § 2; and one count of uttering, passing, and attempting to utter and pass, silver coins in resemblance of genuine U.S. coins in denominations of five dollars or greater, in violation of 18 U.S.C. § 486 and 18 U.S.C. § 2.


On July 28, 2009, von NotHaus entered a plea of not guilty.


On March 18, 2011, after a 90 minute jury deliberation, von NotHaus was found guilty on various counts, including the making of "counterfeit coins" (resembling legal tender coins). Attorney for the Western District of North Carolina, Anne M. Tompkins, described Bernard von NotHaus and the Liberty dollar as "a unique form of domestic terrorism” that is trying “to undermine the legitimate currency of this country.” The Justice Department press release quotes her as saying: “While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country".

Post-conviction

Although he was convicted in March 2011, the U.S. government has still not reached a sentencing decision for Von NotHaus. Since his trial, The New York Times has described Von Nothaus as "the Rosa Parks of the constitutional currency movement", for his creation of an alternative currency that is valued at "more than 60 million dollars." Von Nothaus presently resides in a Malibu mansion that was lent to him by a friend.


“This is the United States government,” he said in an interview. “It’s got all the guns, all the surveillance, all the tanks, it has nuclear weapons, and it’s worried about some ex-surfer guy making his own money? Give me a break!”....


At 68, Mr. von NotHaus faces more than 20 years in prison for his crimes, and this decisive chapter of his tale has come, coincidentally, at a moment when his obsessions of 40 years — monetary policy, dollar depreciation and the Federal Reserve Bank — have finally found their place in the national discourse.


Indeed they have, thanks to Rep. Ron Paul (R-Texas) who understands as von NotHaus does that metals have a better track record at maintaining longterm value than government fiat paper. 


I'm surprised the Times's reporter apparently got von NotHaus to use the word "coins" since whether or not these were meant to emulate U.S. coins was such a sticking point in his legal travails. He would always insist to me when we spoke that his Liberty Dollars were to be called "rounds," and were a “voluntary private barter currency,” a phrase that appeared on the rounds in later mintings.





Details on how vonNotHaus ended up in legal trouble, which shows that it was having anti-government attitudes and "links," not his alleged "crime," behind the prosecution/persecution:



Mr. von NotHaus placed a toll-free number and a URL address on the currency he produced. If people mistakenly got hold of it, they could mail it back to Evansville and receive its equivalent in actual dollar bills.


Now jump ahead to 2004. A detective in Asheville, N.C., learned one day that a client of a credit union had to tried to pass a “fake coin” at one its local branches. An investigation determined that some business acquaintances of Mr. von NotHaus were, court papers say, allied with the sovereign citizens’ movement, an antigovernment group.


Federal agents infiltrated the Liberty Dollar outfit as well as its educational arm, Liberty Dollar University.

In 2006, with millions of the coins in circulation in more than 80 cities, the United States Mint sent Mr. von NotHaus a letter advising that the use of his currency “as circulating money” was a federal crime.


He ignored this advice, and in 2007, federal agents raided the offices in Evansville, seizing, among other things, copper dollars embossed with the image of Mr. [Ron] Paul.


Two years later, Mr. von NotHaus was arrested on fraud and counterfeiting charges, accused of having used the Liberty Dollar’s parent corporation — Norfed, the National Organization for Repeal of the Federal Reserve — to mount a conspiracy against the United States.


Von NotHaus, still free awaiting sentencing, has a warning:



“The thing that fires me up the most,” he will say, “is this is what happens: When money goes bad, people go crazy. Do you know why? Because they can’t exist without value. Value is intrinsic in man.”


When the initial raid on von NotHaus' operations happened, in mid-November 2007, an ounce of silver was worth around $14.50 in "real" U.S. currency. Today, $32.14. Gold was worth around $790today, $1711.90.


The dollar of 2007, meanwhile, according to this inflation calculator, is worth just 93 cents now. Just sayin', as the kids just say.


Von NotHaus denied that he had broken any laws. He said the allegations are meant to deflect attention from a real problem: the dollar’s decline in purchasing power.


“Their currency is losing value and our currency is gaining in value,” von NotHaus said. “And they don’t like that.”

Liberty Gold International, Ltd; Patent Issued for Apparatus, System, and Method for an Asset-Backed Purchase Card

The patent's assignee for patent number 8296226 is Liberty Gold International, Ltd (Wellington, NZ).


News editors obtained the following quote from the background information supplied by the inventors: "This invention relates to credit/debit transactions and more particularly relates to asset backed purchase cards.


"A common way to purchase goods and services in the modern economy is the credit card. A credit card allows a credit provider to effectively lend the user money to cover the cost of a purchase. When a purchase is made, the credit card issuer pays the purchase price to the seller, often withholding a fee for the service. In addition, the credit card user agrees to pay the card issuer the price of the purchase. At regular intervals, the card user is issued a bill from the credit card issuer for payment of money to cover the cost of purchases and any associated fees. Charge cards operate under similar principles, but require the charge card user to pay the entire balance at a regular interval.


"Credit card users often face difficulties in paying the bills associated with their credit cards. Interest charges can be high, as can other fees associated with the use of the card. One justification for these high costs is the risk taken on by the credit card issuer associated with the loan in relation to inflation. The relative value of the loan may decrease under inflationary pressures, therefore, the lender must make a substantial return to hedge that risk.


"A similar purchase system is the debit card, which requires the card user to maintain an account funded with money. A debit card allows a debit provider to pay the seller the price of the transaction and debit the price against the funds in the card user's account. Debit cards shift the risk associated with devaluation of the currency funding the account to the debit card user, who must maintain a balance of money in order to use the debit card. Inflation reduces the purchasing power of the money in the account, and a debit card user may find that the value of the money tied up in the debit card account is dramatically lower than it was when deposited.


"In the U.S., credit, debit, and charge cards use the U.S. dollar to pay for purchases, calculate finance charges, and determine the amount owed. Card users in other countries typically use their local currency to track the amounts in debit or credit accounts. Regardless of the local currency used, inflation poses a risk to the users of the cards, either as increased costs and fees or as a direct risk to a deposit account backing a debit card."


As a supplement to the background information on this patent, VerticalNews correspondents also obtained the inventors' summary  information for this patent: "From the foregoing discussion, it should be apparent that a need exists for an apparatus, system, and method for a purchase card that protects the credit user from the risk of inflation. Beneficially, such an apparatus, system, and method would allow the user to conveniently purchase goods and services without paying the costs associated with the risk of currency inflation or carrying that risk.


"The present invention has been developed in response to the present state of the art, and in particular, in response to the problems and needs in the art that have not yet been fully solved by currently available credit and debit cards. Accordingly, the present invention has been developed to provide an apparatus, system, and method for an asset-backed purchase card that overcome many or all of the above-discussed shortcomings in the art.


"The apparatus to process a transaction for an asset-backed purchase card is provided with a plurality of modules configured to functionally execute the necessary steps of processing a transaction for an asset-backed purchase card. These modules in the described embodiments include a house account module, an asset exchange module, and a debit module. The house account module, in one embodiment, maintains a house account, the house account comprising one or more assets, each of the one or more assets having a substantially continually updated spot purchase price.


"In certain embodiments, the asset exchange module receives funds from a consumer in exchange for a portion of the one or more assets from the house account. A quantity of the asset exchanged for the funds is based on an internal spot price of the asset at the time the funds are received. The quantity of the asset purchased by the consumer increases a balance in a purchase account of the consumer"Click Here For Additional Information.



Von NotHaus, who calls himself the monetary architect of the Liberty Dollar, said his coins are not counterfeits. For one, the design on Liberty Dollars is different from anything on U.S. currency. And the Liberty Dollar is larger than the silver dollar.




Most importantly, von NotHaus said, the Liberty Dollar is made out of materials that hold their value: silver and gold. Recognizing that, a number of merchants have elected to accept the Liberty Dollar in return for goods or services, he said.


Von NotHaus didn’t know how many businesses were now using his “private voluntary currency.” A list of them was seized during a federal raid on the Liberty Dollar’s properties, conducted in November 2007.


“It’s like a club,” von NotHaus said. “You can join the club and use the currency or you don’t have to. There is nothing compulsory here.”


There hasn’t been a cease-and-desist order issued to prohibit the production of Liberty Dollars, von NotHaus said. He speculated that federal officials have avoided taking that step because they lack the legal grounds.


At least the Liberty dollars were backed by precious metal, unlike US currency which is backed by no more than a promise from a government that has become increasingly adept at breaking promises. How brazen of Liberty Dollar to notice that the emperor has no clothes?


I've never owned a Liberty Dollar, and know no one involved, but I  did look into them once online. At that time, they bore no resemblance to US coinage except for being flat and round (it *is* after all a coin), and the site was clear that the Libery Dollars were meant as a means of exchange among like-minded individuals who recognized the relative worthlessness of Federal Reserve Notes. Maybe their dealings grew shady at some point later on, or maybe this is just the government extinguishing an ember before it becomes a wildfire.

GoldenPhoenix writes:

I never even heard of "Liberty Dollar". I just looked at their website, http://www.libertydollar.org/ , and it seems very clear that it's "private voluntary barter currency (PVBC)" and not U.S. Federal Reserve Notes or U.S. coins. I guess I'm must be missing something.




SilverMoney writes:

in response to simpleman:


Think about the deal. You give him $20. He gives you a coin. He goes and buys silver to back up your coin. At some point in time he gets all the silver he wants and takes off to Switzerland. Sorry, but I have more faith in the Feds.


He is persuasive. I had to deal with the guy (Not by choice). He tried to pay my company in Liberty Dollars and we laughed in his face.


On a personal note. He's a jerk....





SilverMoney writes:

in response to simpleman:

I'm thinking about it.


I give Bernard a piece of paper with no real value that says "dollar" on it but isn't an actual "dollar" - a Federal Reserve NOTE. In return I get a physical commodity - silver, which happens to be CONSTITUTIONAL money.

Look, THE GOVERNMENT HAS NO EXCLUSIVE RIGHT TO COIN MONEY!!! I will give 100,000oz of silver to the first one on this board to explain where in the Constitution the government is given an EXCLUSIVE, MONOPOLY right over the issuance of currency. They are given the power to "coin" money- no where is the word "exclusive". This is a BS argument that deserves a kick in the balls out of its sheer ignorance of the facts.


As far as what Bernard is doing with the Fed Notes he gets? Wrong  again, Bernard never touches em. They pay their Fed Notes to the Mint, that then pays Bernard in extra silver. The Mint hands the Fed Notes off to the mines. Ask the silver mines why they take Fed Notes.


Obviously, as a private currency you can't take it to the bank. The banks are part of the Federal Reserve System. So what? So I can't trade a stereo for a TV cause I can't deposit a stereo at the bank? What's your point here?


Yes, you can barter goods without a unit of exchange, but it's a lot harder to find someone who has what you want and needs what you have at the same time. That is why money exists, to facilitate trade. The problem comes in when the unit of exchange has no real value in and of itself -like the Federal Reserve NOTE, which is only an IOU.


Gold and silver always make for fair trades, that's the the gov hates it. It makes their con game impossible.




So why don't you have faith in this? You would rather trade in your  time and energy for piles of paper that lose value. Please, I want to  understand you, why would you rather have dirty pieces of paper rather than silver? Why do you believe the government has monopoly powers over the monetary system? Can you show me where the Constitution authorizes this? Please explain...





Poll: We Should Get Rid of The Federal Reserve And Central Banks Because: Click Here


Additional Resources And Solutions:

Monetary Reform Act

Majority Of U.S. States Join Sovereignty Movement, Assert 10th Amendment Rights (Video)


* Abolish Fractional Reserve Banking

Bernard@libertydollar.org (Liberty DollarSubscribe To His Newsletter To Stay On Top Of This Case As It Develops You Can Sign Up Here.


BookRon Paul's Revolution

What is BitCoin and How Does It Work?






Feel free to send this letter to the White House (Fax: 202-456-2461), your congressman and/or senator, etc.

(Edit where necessary)
To Barack Obama,

On top of everything else you have to contend with.. I think It's high-time we address the issue of "monetary reform" it seems that the banking system "cartel" have their own agenda (world domination?) in terms of what they (the Federal Reserve and the Central Bankers, etc.) want to see happen to the U.S and the world's monetary system vs what the American people actually expect from these same institutions. 

We (you, the Whitehouse and I) need to urgently communicate the message that there is a major problem with these institutions and how they operate (fiat currency, fractional reserve banking, debt-issuance, engineered boom and bust cycles, etc.).

You already should and will achieve legendary status because of what you've accomplished with healthcare reform, capturing Osama Bin Ladin, etc. 

However, to take on the banking cartel with the help of the eager youth of today, the Internet, virtual currencies, etc. You will rival Thomas Jefferson and Andrew  Jackson, for they knew and admitted publicly what central banking meant for democracy.  

We are in a prime position to actually prepare the USA and lead the world into the 21st century by reforming the monetary system even if it means abolishing the Federal Reserve.

What do I need to do to help out in this effort and how can we (you, the Whitehouse) and the American people do to finally fix this last and critical area of economic manipulation.

Please Advise,

Monty Henry, Owner
DPL-Surveillance-Equipment.com LLC

(818) 298-3292
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