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.

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."

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More From The Washington Post

News of a federal raid last week on a "sound money" outfit that is selling "Ron Paul Dollars," reported in Saturday's Post, is generating no end of quips in the blogosphere about what this development says about the Paul campaign's eye-popping recent fundraising success. Wags ask: How much of that record $4.2 million one-day haul that Paul collected earlier this month actually came in the form of dubloons imprinted with Paul's face, not U.S. legal tender?

But these jokes may be missing the point entirely. In fact, the lack of confidence that many Paul supporters have in U.S. currency may well be one reason why they are sending so many of their greenbacks to Paul's campaign, and thereby making his outsider libertarian bid for the Republican presidential nomination a force to be reckoned with. For sound-money supporters who fear a coming collapse in the value of the dollar, it makes eminent sense to send a few hundred dollars to the one candidate who is arguing for a monetary revolution, instead of simply watching that money rapidly crumble in value.

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USA Today Reports

Federal agents have reportedly seized illegal "Liberty Dollars" and other currency, including two tons of copper coins bearing the likeness of GOP presidential candidate Ron Paul.

The raid took place yesterday in Evansville, Ind., at the headquarters of the National Organization for the Repeal of the Federal Reserve Act & Internal Revenue Code, a group that the government accuses of producing and distributing illegal currency.

A spokesman for Paul says the GOP lawmaker has nothing to do with the group or its currency.

"We have no connection with that," Jesse Benton tells AP. "He was using Ron as a marketing technique. We didn't have anything to do with that or sanction it or give permission in any way."

Bernard von NotHaus is identified by the Evansville Courier Press as "the group’s monetary architect." NotHaus says he expects to be indicted on charges of money laundering and wire fraud.

“I see this as a golden opportunity to go into court and vindicate the Liberty Dollar as being legal and being the solution to our great country’s monetary problems,” von NotHaus said. “This is going to be a big trial. We’re going to be putting Evansville on the map. Because money is going to be on trial right there in Evansville.”

Read more here.

Commentary From FreeRepublic.com

Posted on 11/15/2007 7:50:21 AM PST by Attention Surplus Disorder

Frontal Assault on Freedom: FBI Raids Liberty Dollar Posted by BJT on Nov 15, 2007 Read this email closely. I just got it this morning. Those of you who consider the gold standard a quaint anachronism, pay extra close attention. If Ron Paul supporters, gold standard advocates and the Liberty Dollar were nothing but harmless kooks, why would the FBI raid their offices when no crime was ever committed? This is a currency competing with the USD, yes, but they never, but never make the claim that it is legal tender or anything other than what it is: private currency. And private currencies are numerous in the USA.

No. This raid happened because the Liberty Dollar, the second most popular currency in the country, threatens to usurp the entrenched power of the Fed’s Almighty Dollar. People can see the buying power of the greenback eroding, and they will choose something else if it is available, and the Liberty Dollar is ready and waiting. And that’s why the government must resort to force in order to protect its stranglehold on the economy. Read more.

Liberty Dollar Raids

I hope these raids against the Liberty Dollar people give us a sense of realism about we’re up against. These coins have been around for years and no enforcement action was taken against them until a certain candidate started rising in the polls, proving all their prior smears had failed or backfired.

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