In Paul We Trust: Do The New Liberty Dollars, Bearing Candidate Ron Paul's Image, Constitute Illegal Currency?

By ANITA RAMASASTRY

Monday, Dec. 03, 2007

On Wednesday, November 14, federal agents raided the Indiana headquarters of the organization NORFED, and seized precious-metal coins bearing the likeness of Texas Congressman and Republican Presidential candidate Dr. Ron Paul. The federal government claims that the makers of the "Ron Paul dollar" are selling an illegal currency.

In this column, I consider that claim; conclude that, at present, it is unclear whether the Ron Paul dollar constitutes illegal currency; and suggest that purchasers' wisest course is to refrain from using the coins to purchase goods or services, while feeling free to trade them, until the situation is clarified.

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NewsWithViews.com Reports

By Jon Christian Ryter

November 17, 2007 - NewsWithViews.com

A dozen FBI agents staged a raid on the Liberty Dollar's Evansville, Indiana office at 8 a.m. on Wednesday. Nov. 14 and confiscated all of its property and equipment—including about two tons of commemorative Ron Paul coins. Liberty Dollar, founded by money architect Bernard von NotHaus in 1998, was created as an alternate "private, voluntary barter currency" to the US dollar. Liberty Dollar was headquartered in a strip mall at 225 N. Stockwell Road in Evansville. The future for Liberty Dollar—and its founder—who came under investigation by the US Treasury last fall, appears bleak. Read more.

NH: Liberty Dollar fever spreads after Fed confiscation

Produced by Dave Ridley of TheRidleyReport

Mother Jones Reports

A Ron Paul Supporter Explains the "Liberty Dollar"Ed. Note: Earlier this month, the people behind something called the "Liberty Dollar" saw their offices raided by the FBI. The Liberty Dollar bills itself as a "private voluntary barter currency," which I assumed was code for a libertarian scheme designed to bring about the downfall of the Federal Reserve, in the spirit of the fiercely anti-Fed libertarian demigod Ron Paul. (The Liberty Dollar folks have a coin with Ron Paul on it.) I reached out to a libertarian friend who writes the blog The Agnoptimists to get some hard answers. His thoughts are below. —JS

As a libertarian, I like to argue with opponents of my free market views by focusing on outcomes: simply put, the central question is whether centralized government programs are really more attractive than market outcomes.

Anyone who seeks the best solutions to society's dilemmas should embrace experiments that allow direct comparison between government projects and private enterprise. The U.S. Post Office is constantly improving its service due to competition from companies like FedEx and UPS, for example. Read more.

A comment from a concerned American

This message was received 5 days ago on 11/15:

I have spent the evening listening to the radio about people's concerns about what is going on with the liberty dollar. I have seen the email delivered to liberty dollar associates by Bernard Von Nothaus. This is the outrage of outrages. It is equivalent to the government confiscating all the gold held by people in 1933. How can we be certain that this gold, silver and platinum will be kept safe and that all will be returned when the time comes for the silliness to end? We cannot. These precious metals were stolen, per and simple. Those in charge of this raid AND those who took part in it should all be held accountable. More worrisome, however, is what this is the precursor of? Glen Beck has publicly accused Ron Paul supporters of being home grown terrorists. Will I have to worry about being arrested as a terrorist, thrown in jail, not allowed any phone calls, not allowed to tell my family where I am, not be allowed a trial for years, and maybe even be tortured simply because I have a Ron Paul sticker in the rear window of my car? Will something happen, a false flag attack, an action of war against Iran, the beginning of something bigger, that will cause the elections to be canceled and Marshall Law declared? This action against the people of the United States is ominous. Those in power will not go quietly, even if they are voted out.

Let's all pray for peace and justice.

CBS News Reports

Feds Seize Fake Coins Featuring Ron Paul

Raid Of Fake Currency HQ In Indiana Nets Coins Featuring GOP Presidential Candidate

EVANSVILLE, Ind., Nov. 16, 2007

(AP) Federal agents raided the headquarters of a group that produces illegal currency and puts it in circulation, seizing gold, silver and two tons of copper coins featuring Republican presidential candidate Ron Paul.

Agents also took records, computers and froze the bank accounts at the "Liberty Dollar" headquarters during the Thursday raid, Bernard von NotHaus, founder of the National Organization for the Repeal of the Federal Reserve Act & Internal Revenue Code, said in an interview.

The organization, which is critical of the Federal Reserve, has repeatedly clashed with the federal government, which contends that the gold, silver and copper coins it produces are illegal. NORFED claims its Liberty Dollars are inflation free and can restore stability to financial markets by allowing commerce based on a currency that does not fluctuate in value like the U.S. dollar. Read more.

Ron Paul Comments About The Liberty Dollar Raid During His Visit To Iowa City 11/17

Excerpt:

You also hear about different issues at a Ron Paul event, like this week's "Liberty Dollar" controversy where a company making a private, silver and gold backed currency was shut down by the federal government. "We ought to adhere to the Constitution and get rid of the Federal Reserve System," Paul said to applause. "The constitution is rather clear, the Founders knew something about inflation." (Paul also mentions the Founding Fathers more than any candidate since Pat Buchanan.) "It says only gold and silver can be legal tender. Today, instead of protecting the value of our money, this very week we have our government arresting people who want to use gold and silver money."

Read more.