JUSTICE DEPARTMENT LOOKS TO STAMP OUT CONSTITUTIONAL ALTERNATIVES TO THE FED
"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.
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
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
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 It has never been repealed.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
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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
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
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.
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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
“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
“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.”
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Source: americanfreepress.net
The Federal Reserve creates inflation when it issues US dollars backed by government debt. Since 1913, when the Federal Reserve was created by Congress, your money has lost 96% of its purchasing power due to inflation. The more "money" the Federal Reserve creates - the less your Federal Reserve "money" will buy.