UncleRock
Oct 3rd, 2006, 8:15 am
FEDERAL RESERVE FEARS HONEST CURRENCY
JUSTICE DEPARTMENT LOOKS TO STAMP OUT CONSTITUTIONAL
ALTERNATIVES TO THE FED
By Pat Shannan
Following the Justice Department’s recent announcement
that it is “lowering
the boom on alternative money,” the debate over what
constitutes real currency in the United States is back
in the national spotlight.
The federal government is claiming paying for goods
and services with “Liberty Dollars” is a crime.
However, NORFED, the producer of both redeemable
currency and 1-ounce silver rounds, called “Liberty
Dollars,” for the past eight years disputes this. NORFED has
recommended its system as “a boost for people who are
looking for an inflation-proof currency to protect
their purchasing power.”
U.S. Mint spokeswoman Becky Bailey said, “The [Liberty
Dollar] coins share some resemblances to real money,
such as the term ‘Trust in God’ instead of ‘In God We
Trust’ and the use of a torch in the design. . . [but]
we don’t want consumers to be fooled. Such
similarities may confuse people into thinking the money is real.”
Supporters of backing currency with gold and silver
say the federal government’s verbal attack is nothing
more than a hollow threat and but one more effort to
move Americans’ attention away from the collapsing paper
dollar.
So who is fooling whom? There is enough legal
precedent out there which says U.S. currency should be backed
by commodities.
Article One, Section 10, of the U. S. Constitution
says, “No State shall make any Thing but gold and silver
coin a tender in payment of debts.” It has never been
repealed.
The Coinage Act of 1792 defined the “dollar” as a
measurement of gold and silver—25.5 grains and 412.5
grains respectively, thereby setting the ratio of value at
16 to 1.
In addition, 12 USC 152 says, “The terms ‘lawful
money’ and ‘lawful money of the United States’ shall be
construed to mean gold and silver coin of the United
States.” This is a federal law still on the books.
Yet no coins from the U.S. Mint have contained any
silver since 1968. The production of gold coins ceased in
1933 with FDR’s confiscation statutes. The first
non-redeemable Federal Reserve Notes were issued in 1963
without the then-familiar clause in the upper left-hand
corner:
“This note is legal tender for all debts, public and
private, and is redeemable in lawful money at the
United States Treasury or any Federal Reserve Bank.” But
“lawful money” was defined in 12 USC 152 above. The old
redeemable notes circulated together with the new
“FRAUDs,” or Federal Reserve Accounting Unit Dollars—so
called by monetary realists and Rep. Ron Paul
(R-Texas)—for nearly five years until the banks refused to
redeem any paper notes for silver after June 24, 1968. Then
the bona fide notes were gradually collected by the
banks and taken out of circulation.
Silver currently sells for over 10 FRAUDS per ounce.
The new “notes,” now a deceptive misnomer, as a “note”
by legal definition must be payable in something,
claimed to be the entity rather than the receipt for the
entity, and the hoax was complete. Now the government
could fund itself and not have to depend upon the
constitutional “taxes by apportionment.”
After several re-printings and design changes, these
are still the same Federal Reserve Notes that Ms.
Bailey is proclaiming to be “real money” in 2006.
Can anyone other than a government bureaucrat make
such an outlandish statement with a straight face?
“Gasoline does not go up in price,” says NORFED
founder Bernard Von NotHaus. “The value of the modern
American dollar goes down as the marketplace is flooded with
new paper and credit, thereby requiring more for the
same hard goods.”
NotHaus added: “We have never issued a ‘coin’ per se,
and in no way have attempted to be in competition with
any government. Our goal from the beginning [1998] was
to replace the fiat currency with lawful money one
dollar at a time.”
Reporting on the Liberty Dollar in 2003, national news
commentator Paul Harvey wrote:
“What’s new? The Liberty Dollar! Fed Ex competes with
the Post Office. So now there’s the Liberty Dollar
competing with the greenbacks printed by your government.
The Liberty Dollar is backed by gold and silver. Yes,
there’s a competitive currency right here in the
United States. In five years it has become the second most
popular currency in America.”
Today, NORFED claims 10,000 trading associates,
(including AFP) with 80 redemption offices around the
nation, and 100,000 users of the silver and currency in
commerce.
After the silver rounds, as well as paper notes
redeemable in silver, had been in national circulation for
more than a year, a similar legal question arose in the
Seattle area when a newspaper accused the group of
fraud, claiming that there were no offices available to
redeem NORFED currency. It was quickly quashed.
“It’s not counterfeit money,” said Ron Legan of the
Seattle Secret Service office. Legan was speaking about
the redeemable notes in 2000 and pointing out that
there had been no evidence of “fraud” or even any
complaints against NORFED.
Having investigated the matter closely, Legan
concluded that the silver certificates were well within the
restrictive boundaries of the U.S. monetary guidelines.
“There is no law that says goods and services must be
paid for with Federal Reserve notes,” says Andrew
Williams, spokesman for the Federal Reserve. “Parties
entering into a transaction can establish any medium of
exchange that is agreed upon.”
JUSTICE DEPARTMENT LOOKS TO STAMP OUT CONSTITUTIONAL
ALTERNATIVES TO THE FED
By Pat Shannan
Following the Justice Department’s recent announcement
that it is “lowering
the boom on alternative money,” the debate over what
constitutes real currency in the United States is back
in the national spotlight.
The federal government is claiming paying for goods
and services with “Liberty Dollars” is a crime.
However, NORFED, the producer of both redeemable
currency and 1-ounce silver rounds, called “Liberty
Dollars,” for the past eight years disputes this. NORFED has
recommended its system as “a boost for people who are
looking for an inflation-proof currency to protect
their purchasing power.”
U.S. Mint spokeswoman Becky Bailey said, “The [Liberty
Dollar] coins share some resemblances to real money,
such as the term ‘Trust in God’ instead of ‘In God We
Trust’ and the use of a torch in the design. . . [but]
we don’t want consumers to be fooled. Such
similarities may confuse people into thinking the money is real.”
Supporters of backing currency with gold and silver
say the federal government’s verbal attack is nothing
more than a hollow threat and but one more effort to
move Americans’ attention away from the collapsing paper
dollar.
So who is fooling whom? There is enough legal
precedent out there which says U.S. currency should be backed
by commodities.
Article One, Section 10, of the U. S. Constitution
says, “No State shall make any Thing but gold and silver
coin a tender in payment of debts.” It has never been
repealed.
The Coinage Act of 1792 defined the “dollar” as a
measurement of gold and silver—25.5 grains and 412.5
grains respectively, thereby setting the ratio of value at
16 to 1.
In addition, 12 USC 152 says, “The terms ‘lawful
money’ and ‘lawful money of the United States’ shall be
construed to mean gold and silver coin of the United
States.” This is a federal law still on the books.
Yet no coins from the U.S. Mint have contained any
silver since 1968. The production of gold coins ceased in
1933 with FDR’s confiscation statutes. The first
non-redeemable Federal Reserve Notes were issued in 1963
without the then-familiar clause in the upper left-hand
corner:
“This note is legal tender for all debts, public and
private, and is redeemable in lawful money at the
United States Treasury or any Federal Reserve Bank.” But
“lawful money” was defined in 12 USC 152 above. The old
redeemable notes circulated together with the new
“FRAUDs,” or Federal Reserve Accounting Unit Dollars—so
called by monetary realists and Rep. Ron Paul
(R-Texas)—for nearly five years until the banks refused to
redeem any paper notes for silver after June 24, 1968. Then
the bona fide notes were gradually collected by the
banks and taken out of circulation.
Silver currently sells for over 10 FRAUDS per ounce.
The new “notes,” now a deceptive misnomer, as a “note”
by legal definition must be payable in something,
claimed to be the entity rather than the receipt for the
entity, and the hoax was complete. Now the government
could fund itself and not have to depend upon the
constitutional “taxes by apportionment.”
After several re-printings and design changes, these
are still the same Federal Reserve Notes that Ms.
Bailey is proclaiming to be “real money” in 2006.
Can anyone other than a government bureaucrat make
such an outlandish statement with a straight face?
“Gasoline does not go up in price,” says NORFED
founder Bernard Von NotHaus. “The value of the modern
American dollar goes down as the marketplace is flooded with
new paper and credit, thereby requiring more for the
same hard goods.”
NotHaus added: “We have never issued a ‘coin’ per se,
and in no way have attempted to be in competition with
any government. Our goal from the beginning [1998] was
to replace the fiat currency with lawful money one
dollar at a time.”
Reporting on the Liberty Dollar in 2003, national news
commentator Paul Harvey wrote:
“What’s new? The Liberty Dollar! Fed Ex competes with
the Post Office. So now there’s the Liberty Dollar
competing with the greenbacks printed by your government.
The Liberty Dollar is backed by gold and silver. Yes,
there’s a competitive currency right here in the
United States. In five years it has become the second most
popular currency in America.”
Today, NORFED claims 10,000 trading associates,
(including AFP) with 80 redemption offices around the
nation, and 100,000 users of the silver and currency in
commerce.
After the silver rounds, as well as paper notes
redeemable in silver, had been in national circulation for
more than a year, a similar legal question arose in the
Seattle area when a newspaper accused the group of
fraud, claiming that there were no offices available to
redeem NORFED currency. It was quickly quashed.
“It’s not counterfeit money,” said Ron Legan of the
Seattle Secret Service office. Legan was speaking about
the redeemable notes in 2000 and pointing out that
there had been no evidence of “fraud” or even any
complaints against NORFED.
Having investigated the matter closely, Legan
concluded that the silver certificates were well within the
restrictive boundaries of the U.S. monetary guidelines.
“There is no law that says goods and services must be
paid for with Federal Reserve notes,” says Andrew
Williams, spokesman for the Federal Reserve. “Parties
entering into a transaction can establish any medium of
exchange that is agreed upon.”