Von Nuthouse in the big house

[Demosthenes]

June 2010 email: (sent August 1, 2010) Bernard is Jailed - Part I Table of Contents: 1. Two Exciting Newscasts Regarding Money 2. Kevin the Beautiful 3. Liberty Dollar Site Is Closed Thank you for your inquiry… Bernard is Jailed - Part I First, please note the format changes to this email reply to your inquiry about the me and your property that was confiscated during the ongoing legal battles regarding the Liberty Dollar. It would appear that the once great First Amendment and the concept of innocent until proven guilty do not apply to anyone who is out on an Appearance Bond. Second, I apologize for this relayed email regarding June development and that now I can't write my usual monthly "Newsletter." While I have been late a few times with the chronicle of the Liberty Dollar since October 1998, I have never missed a month. I trust being in jail, defending the Liberty Dollar is a good reason. Third, I hereby confirm the rumors that I was jailed, but not re-arrested. I was incarcerated when I appeared to answer charges that I violated the terms of my Appearance Bond before Magistrate Judge Cayer, Federal District Count in Charlotte, North Carolina on Wednesday, July 14. There is much to disclose about that hearing and my next five plus days and five nights in Mecklenburg County and Catawba County Jails but I don't have the time right now. But stay tune. I promise to tell all in my next email for July. Contained in this email are links for two excellent video newscasts Part I and Part II that aired while I was in jail that features Dave Gillie and Jeff Kotchounian using a value based currency. Most importantly is the quote from the US Treasury website that merchants can use anything they want for money. And equally noteworthy is one of Kevin's letters that was recently posted on the mailfromjail.com site and forwarded to me. PLEASE read this letter and marvel at the exulted space that Kevin occupies while standing firm for the Liberty Dollar after 14 MONTHS behind bars. Like Kevin, we have an extremely strong, winnable case and the government is going to lose dearly for this shortsighted misadventure. Item #1: Two Exciting Newscasts Regarding Money These two video newscasts speak for themselves. I neither indorse nor support these two brave American patriot's efforts. I fact, I was surprised when the URLs were sent to me. But I was not surprised by the US Treasury site that proves 'a private business, a person or an organization…are free to develop their own policies...' for money. In part the government site says: "There is, however, no Federal statute mandating that a private business, a person or an organization must accept [US] currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise." The complete quote for the very first question on the US Treasury's FAQ site is found here: http://www.ustreas.gov/education/faq/cu ... nder.shtml Now watch these two newscasts and decide who is going to win this case: Part I: http://www.connectmidmichigan.com/news/ ... ?id=481793 Part II: http://www.connectmidmichigan.com/news/ ... ?id=482130. Item #2: Kevin the Beautiful I know you are busy and you may not even know Kevin but I hope you will take a moment to ravel in Kevin's amazing jailhouse consciousness and hopefully send him a note of support and/or a few dollars, as he can't eat the slop that passed as food in jail. And I know that all too well! From Kevin to a supporter - July 2010: I continue to consider my time here as an opportunity for some intense independent training so that I can be more effective at helping society when I get out, helps me redirect my thoughts. From all of the wonderful experiences I am missing out on by being here, back to the hear-and-now and my self-imposed tasks. "The Now" is truly all that I can experience "in Technicolor" - all else is just a hazy "black and white" dream. By being true to what I know to be right and honest I can more easily infuse the present with the enthusiasm and with the awareness that Gold is right here with me. Bliss, God and the Now are One. Standing firm in my convictions and my truth is fundamental to my evolving success, not only spiritually, but also in a worldly sense. In contrast, there is nowhere I can go for relief if I am in conflict with myself. Yes, this has already taken a very long time and I might only be part-way through it but thinking in terms of time only increases the suffering. When we are One with the timeless inner Self there is really nothing to fear. The more we can connect our light with that wonderful Light that is also in others, especially among those who remind us of this, like you and I, the more we can warm to each other's glowing. It is great to hear you are drawing loving people to you. How can they resist? Please write to Kevin: William K. Innes 2351 Morganton Blvd. SW Lenoir, NC 28645 Please send Money to Kevin: C/O Julia Gaunt 16 Norman Austin Dr. Asheville, NC 28804 Item #3: Liberty Dollar site is now closed due to court action. And last but not least, the Liberty Dollar site is now down. Hope you got a copy before all that great info was taken down or know how to find it. I will explain this regretful development in my email to you for July. Closing Remarks: That's it short and sweet. I promise to disclose all regarding my jail experiences and the latest on the Liberty Dollar Four in my next email for July. There are amazing develops with Liberty Dollar Four case, so please stay tune for all the details and an exciting trial! I remain convinced and dedicated to the ideals of the Liberty Dollar and that the only way for us to have a free society is by banding together and adopting a free and independent currency that provides us with "just weights and measures" to throw off the yoke of a manipulated monetary/tax system. Thank you for your inquiry and efforts to return America to value - one dollar at a time! Bernard von NotHaus Monetary Architect/Editor Editor@LibertyDollar.org

[LPC]

The transcript of the 7/14 bond revocation hearing won't be available on PACER for another 90 days, but the following detention order, entered 7/15, tells the story:

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
STATESVILLE DIVISION
CRIMINAL NO. 5:09CR27-01-RLV-DSC
UNITED STATES OF AMERICA
v.
BERNARD VON NOTHAUS,
Defendant.

ORDER OF DETENTION

THIS MATTER comes before the Court upon a “Notification of Bond Violation” (document #72) filed on June 23, 2010 requesting a summons be issued for Defendant to appear before the Court to address the listed violations. U.S. Magistrate Judge David C. Keesler issued a summons for Defendant to appear on July 14, 2010 before the undersigned for a bond revocation hearing.

On July 6, 2009, the undersigned set conditions of release which included a condition that “Defendant shall not circulate or aid in the circulation of any coins or currency in relation to the Liberty Dollar Operation.” Thereafter on September 22, 2009, Defendant filed a Motion (document #49) seeking clarification of the Release Order as to whether it prohibited Defendant from fulfilling orders for the Tea Party Dollar. On October 16, 2009, the undersigned entered an Order (document #50) amending the conditions of release to “prohibit Defendant from minting or producing any coinage or currency and from circulating any coinage or currency that has not been produced by the United States Mint.” Thereafter on November 12, 2009, Defendant appealed that Order to the District Judge (document #54). On December 7, 2009, U.S. District Judge Richard L. Voorhees denied the appeal. On March 22, 2010, U.S. Magistrate Judge David C. Keesler granted Defendant’s Motion to Modify Conditions of Release and allowed Defendant’s supervision to be transferred to Hawaii (document #60). On June 23, 2010, U.S. Probation Officer Gerald Patton filed the violation report.

In the present violation report, the Probation Officer reports that Defendant continues to operate an internet website at http://www.hawaiidala.com where the Hawaii Dala 50th Anniversary coin is offered for distribution and sale. This website contains a biography and photograph of the Defendant. The biography states that “[c]urrently he is the Monetary Architect for the Liberty Dollar” and refers to him as “one of the world’s foremost experts on private currencies.” This website also promotes a currency called the “Hawaii Dala”, which is described as a “new private voluntary barter currency (kala) that is 100% backed and 100% redeemable in pure gold and silver.” This page contains a photograph of paper currency bearing the words “Negotiable”, “$1 Silver Certificate”, and the Defendant’s signature where the signature of the Treasury Secretary would appear on lawful United States currency. This page refers to the Hawaii Dala as “local currency designed to support and grow the local business community” and predicts shoppers will “make a conscious choice to use Hawaii Dalas wherever and whenever possible.” The Hawaii Dala is called “just another form of money.” Under a section titled “How It Works-For You”, the website states the Hawaii Dala is “just as easy to use as the US dollar.” The Hawaiian Dala is available for purchase on the website of Silver Liberty Marketing. This same website also offers the Tea Party Dollar for sale. Defendant’s conditions of release prohibited his involvement with the Tea Party Dollar. The justification Defendant offers for the Hawaiian Dala is nearly identical to the one he continues to advertise for the Liberty Dollar. The current Liberty Dollar website contains a letter from Defendant bearing today’s date, with language identical to that on the Hawaii Dala website. On this website, Defendant says “…Hawaii is a wonderful place but raising a family in the highpriced Islands was tough…that’s why I created the Liberty Dollar.” The Liberty Dollar website includes the headline “The Liberty Dollar is Legitimate!” Defendant’s conditions of release prohibited his involvement with the Liberty Dollar. On March 22, 2010, U.S. Magistrate Judge David C. Keesler entered an Order transferring Defendant’s pre-trial supervision to the District of Hawaii. Thus, Defendant continues to promote circulation of the Liberty Dollar since his relocation to Hawaii on pre-trial release.

The Court concludes that Defendant has knowingly and repeatedly violated the terms and conditions of his release. Despite being ordered not to circulate any currency or coin not produced by the U.S. Mint, he has continued to promote the use of both the Liberty Dollar and the Tea Party Dollar over the internet. Now he has embarked on a new venture involving the Hawaiian Dala, by offering it in the same manner as he has the Liberty Dollar and Tea Party Dollar. The website for the Hawaiian currency even contains a link for the purchase of the Tea Party Dollar.

Pursuant to 18 U.S.C Section 3148(b), the Court finds by clear and convincing evidence that Defendant has violated his conditions of release and that he is unlikely to abide by any condition or combination of conditions of release. It is therefore ORDERED that Defendant’s bond be revoked and that he be remanded to the custody of the United States Marshal.

Defense counsel has noted an appeal of the undersigned’s decision to revoke Defendant’s bond and requested a stay pending a ruling on the appeal. The motion to stay is DENIED because Defendant is a Hawaii resident, he has no ties to the local community and he has repeatedly violated his conditions of release.

SO ORDERED.

Signed: July 15, 2010

David S. Cayer
United States Magistrate Judge

[.]

An idiot thought he could get away with flagrant violations of the conditions of his bond. What a surprise.

After he's convicted and incarcerated for a good long time, perhaps he'll appreciate the benefits of being beyond the immediate reach of the people he screwed over, running from small-time suckers to money-launderers, some of whom might not be enamored of the results of his "monetary architecture."

[silversopp]

What did he get busted for originally?

I can't imagine that it's illegal to print your own currency, since so many businesses print up gift-certificates, coupons, and use bonus-point structures that serve as a form of currency. Some of those points you earn are accepted by a number of different businesses.

Was he busted for cheating out his clients by giving them coins that contained less precious metal than advertised? Or did they bust him on counterfeiting because his dollars looked too similiar to FRNs? Or was it both?

On a different note...what is the reasoning for that little statement on coupons that say "this coupon is worth 1/100 of one cent"?

[LPC]

What did he get busted for originally?

I can't imagine that it's illegal to print your own currency,

Yes, it is, and that's why he was busted.

since so many businesses print up gift-certificates, coupons, and use bonus-point structures that serve as a form of currency. Some of those points you earn are accepted by a number of different businesses.

Gift certificates aren't anything like "currency" because a gift certificate from Sears can't be used at Starbucks, or vice versa.

Bonus-point systems are agreements among merchants and you know which merchants participate going in.

Nuthouse claimed that his coins were "just like money," and that's a crime.

[LPC]

An idiot thought he could get away with flagrant violations of the conditions of his bond.

Like a lot of tax protester nonsense, this is beyond idiocy and into the realm of self-destructive martyr complex.

I don't think he was going to be happy until he was behind bars. Well, now he's got his wish.

[silversopp]

Gift certificates aren't anything like "currency" because a gift certificate from Sears can't be used at Starbucks, or vice versa.

Gift certificates are currency at the store that issues them. What is the difference between a $10 FRN and a $10 Sears gift certificate when I'm at Sears?

Bonus-point systems are agreements among merchants and you know which merchants participate going in.

I know what bonus point systems are. I mentioned them because they can be used between multiple stores unlike gift certificates. How are they not considered a form of currency?

Nuthouse claimed that his coins were "just like money," and that's a crime.

What is the fine line between legal things such as points and gift certificates, and his coins? Did he mention "legal tender" or is it the use of the dollar sign?

It just seems to me that he should have been able to copy existing bonus points plans and make his business legal. Get a number of merchants to sign up, publish those merchants, and then sell gold coins for use at those merchants.

[The Operative]

Gift certificates aren't anything like "currency" because a gift certificate from Sears can't be used at Starbucks, or vice versa.

Gift certificates are currency at the store that issues them. What is the difference between a $10 FRN and a $10 Sears gift certificate when I'm at Sears?

Nothing, while you are at Sears. However, if you go to Walgreens and attempt to use the Sears gift certificate, you will not be using it for its intended purpose. The stated purpose behind Liberty Dollars was to use them anywhere. That may seem like a subtle distinction, but it is a distinction nonetheless.

Another distinction involves coupons or merchant discounts. One merchant may offer a coupon or discount on their products. Another merchant may offer to match the first merchant's discount or accept their coupons. The difference there is the second merchant is making the offer. The customer is not attempting to pass off the coupon as a circulating currency.

Bonus-point systems are agreements among merchants and you know which merchants participate going in.

I know what bonus point systems are. I mentioned them because they can be used between multiple stores unlike gift certificates. How are they not considered a form of currency?

Because they are only designed to be used within the subset of merchants and not to be used everywhere. Again, that is the distinction between bonus points, gift cards, etc. and Liberty Dollars.

Nuthouse claimed that his coins were "just like money," and that's a crime.

What is the fine line between legal things such as points and gift certificates, and his coins? Did he mention "legal tender" or is it the use of the dollar sign?

See above.

It just seems to me that he should have been able to copy existing bonus points plans and make his business legal. Get a number of merchants to sign up, publish those merchants, and then sell gold coins for use at those merchants.

But then he wouldn't have been able to market to as many suc....I mean, customers as he did.

[.]

VonNutball is in for a lot longer than 5 days, he's in for the duration. No more bond at any point. Conviction and many years in prison coming soon.

The audience for his obtuse gibberish will approach zero, like Schiff and Hendrickson and countless other jail-bird "gurus." Even if he finally figures out the value of paragraphs, which is unlikely.

We, here, of course, will continue to slog through his crap and make fun of him no matter what, as losers of this caliber are getting progressively harder to come by with every conviction.

[Brandybuck]

There are legal private currencies, such as the scrips and chits that some communiites use. And as far as I know, they all claim to be "as good as money". Where NutHaus got in trouble was 1) claiming they were actual money, and 2) making some of them resemble real US coins.

I am one who is all in favor of a gold standard, but this dude did it in entirely the wrong way. He overcharged for his goods, misrepresented them, and never delivered; and then gave the finger to the Feds and the gubment. I don't think the latter should be punishable, but the former makes me unsympathetic to this plight.

[bmielke]

There are legal private currencies, such as the scrips and chits that some communiites use. And as far as I know, they all claim to be "as good as money". Where NutHaus got in trouble was 1) claiming they were actual money, and 2) making some of them resemble real US coins.

The only one I have any knowledge about is Great Barrington, Massachusetts. They started doing this in 2008 or 2009. IIRC Their currency was printed by the US Buerau of Printing and Engraving. I saw it in a news story at the time.

I don't know, but I would not be surprised if it was required that coins be minted by the Mint and paper be printed by the Buerau of Printing and Engraving.

[Arthur Rubin]

There are legal private currencies, such as the scrips and chits that some communiites use. And as far as I know, they all claim to be "as good as money". Where NutHaus got in trouble was 1) claiming they were actual money, and 2) making some of them resemble real US coins.

Actually, those are separate violations of law.

[silversopp]

I clearly need to look deeper into this Liberty Dollar thing. You're telling me that this guy actually told people that they could his coins ANYWHERE? I was under the impression that these were used primarily between businesses and individuals in the Patriot movement (likely in an attempt to skirt the tax laws). I couldn't think of any problem between consenting businesses/individuals using such coins (provided they paid taxes accordingly).

So this guy could have avoided his legal problems by simply saying "They aren't accepted everywhere, only at partner businesses. Look for the Liberty Dollar sticker on the cash register. If you don't see one, encourage them to sign up by having them call this number"

What a doofus

[The Operative]

I clearly need to look deeper into this Liberty Dollar thing. You're telling me that this guy actually told people that they could his coins ANYWHERE?

Here is an archive of a page where he explains how to spend liberty dollars. I interpret the page to mean that he wants people to use the liberty dollar anywhere.

http://web.archive.org/web/200805010936 ... ospend.htm

[Pottapaug1938]

So this guy could have avoided his legal problems by simply saying "They aren't accepted everywhere, only at partner businesses. Look for the Liberty Dollar sticker on the cash register. If you don't see one, encourage them to sign up by having them call this number"

What a doofus

The problem is that von Nuthouse didn't want to do things that way. He had this fantasy of issuing his bullion slugs and have them circulate as a second (and eventually, the dominant) form of money.

[Thule]

So this guy could have avoided his legal problems by simply saying "They aren't accepted everywhere, only at partner businesses. Look for the Liberty Dollar sticker on the cash register. If you don't see one, encourage them to sign up by having them call this number"

Then he would run into another problem. He presents his Libbies as pegged to the US$; "Yes, one ounce of silver PRIVATE currency valued at 20 dollars."

The problem is that silver rarely have tipped $20, for the last years it has been bouncing around 17-18. So the Libbies are a bad deal right from the start. I don't think many businesses would agree to accept Libbies if they were presented with the true terms up front. Especially since they would have problem with using them for their own needs. For instance, I doubt any bank would accept deposits of Libbies, in the same way that they won't accept deposits of Sears Gift Certificates.

And there's more; LD offer (AFAIK) no verification of the silver content. If they debase the silver, the gap between actual value and stated value increases, thus increasing the buyer's loss.

Selling them as prettier than usual gift certificates would probably shield him from prosecution, but who would have bought them then? His scam would never have gotten off ground.

[Demosthenes]

You're telling me that this guy actually told people that they could his coins ANYWHERE?

Nothaus' "Do the drop" instructions will likely be his smoking gun.

How to use the Liberty Dollar

Are you having fun with the Liberty Dollar? Thousands of people just like you have discovered the solution to understanding money and are using the Liberty Dollar. And you can to! Here are a few tips to help you use the new currency successfully.

1. Read the Success Stories about how other Americans are using the new currency.

2. Education is an important part of using the Liberty Dollar. Please read all materials included in the kit you received as well as review all content on our website. Most people do not understand how money works. The merchant you are about to use the Liberty Dollar with must know that the Liberty Dollar is private, non-government currency; so it cannot be deposited in a bank. It is not 'legal tender', a 'coin', or United states government money like Federal Reserve Notes (FRNs).

3. Although prudence would seem to indicate that people would refuse a currency they've never seen, this is simply not the case. After thousands of transactions, the Liberty Dollar is readily accepted most of the time. It is meant to be circulated voluntarily as barter, accumulated and collected.

4. Simply offer The Liberty Dollar with the confidence that it will be accepted. After all, why wouldn't it? When you offer the American Express Card, if it is not accepted, they tell you. Likewise, if the store does not accept Liberty Dollars, the cashier will tell you and you can simply pay another way.

5. "Do the Drop!" The best way to introduce the Liberty Dollar is to drop the Silver Liberty in someone's hand. Do not hand it to the cashier, Drop it! Hold a one-ounce Silver Liberty a couple inches above the outreached palm and drop it so it lands flat in the person's palm.

6. Now the hardest part - don't say anything! Just wait. Let the person marvel at its beauty, weight, and discover it says TWENTY DOLLARS. When asked "Is it real?" Answer: "Yes, one ounce of silver PRIVATE currency valued at 20 dollars." Do not rush. Just stand there and wait, patiently. No need to smile. Just wait.

7. After 30 seconds, say, "I have US government legal tender money too [show the cashier FRN cash], but would prefer to pay with silver." If the cashier hands it back immediately, you may ask her to show the currency to the manager, or just pay some other way. 8. Never use a Silver Liberty alone unless the sale is greater than $10 and less than $20. If the total is greater than $20, include the Silver Libertys with FRNs.

9. The Federal Reserve does not require anyone to understand the monetary system to use their currency. In fact, they thrive on the people's ignorance about money. The Liberty Dollar is all about knowing what money is and simply brings choice to the marketplace.

10. Be sure to read lots of Success Stories online that tell how the Liberty Dollar has been actually used in commerce by people, just like you.

11. Email your own Success Story when you have an outstanding experience using the Liberty Dollar. We want to hear from you!

12. REMEMBER: The Liberty Dollar is a PRIVATE inflation proof currency and is NOT United States government currency, 'legal tender' or a 'coin'. Using the Liberty Dollar as barter for products and services at businesses across the country is voluntary.

Now, give the Liberty Dollar a try. Discover the fun for yourself! Make money, do good, and have fun while protecting our purchasing power - one dollar at a time.

[Harvester]

thanks alot guys - this is useful info.

[.]

thanks alot guys - this is useful info.

Got a new scam in mind, eh?

How's your demi-god Pete doing in federal prison? Have you built your shrine yet?

[notorial dissent]

Von Nutball was running a two way scam, he was selling his slugs for twice the going price of the metal and convincing his suckers they were getting a bargain on them. So he was defrauding his buyers from the start, and then he was telling them that they could use them to pass as legitimate currency by attempting to pass them at purchase. What really got him in trouble was the fact that for all intents and purposes they look like legitimate US coinage, and that is a really really big no no.

The fact that he was stupid enough to keep on doing it after having been bonded out just shows either his on going contempt for the law or maybe just his general stupidity, personally I’d bet on both.