Liberty Dollar Update

[Gregg]

It actually sounds like a reverse pawn shop when you put it like that.

[tracer]

For my money (pun intended), the Liberty Dollar scheme seemed semi-legitimate as a potential hedge against inflation (although it would have been cheaper to just buy silver bullion directly in the form of truly legitimate silver rounds and bars). ...

... UNTIL some years ago, when the Liberty Dollar folks announced that the exchange rate would be changed from 10 Liberty Dollars for one ounce of silver, to 20 Liberty Dollars for one ounce of silver, and that existing liberty dollar bills already in circulation would be subject to this same new rate of exchange. In other words, if you'd previously paid US$10 to the Liberty Dollar company for a piece of paper marked "L$10" that was redeemable for 1 ounce of silver, in the hope that you'd be able to exchange that piece of paper for 1 ounce of silver at any time in the future (which was supposed to be the whole point of his "backed by precious metals" claim), after the change in the exchange rate that piece of paper could now only be exchanged for HALF an ounce of silver.

If his scheme had any credibility before this point, it lost it at that moment.

[Number Six]

Even the libertarians at Lew Rockwell were not buying into the Liberty Dollar scam:

http://www.lewrockwell.com/rounds/rounds34.1.html

I saw one sales presentation of the "Liberty Dollar" at the "Porcupine Festival" in New Hampshire. I don't know whether it was Bernard himself or an associate, but they recommended the "drop test" with a Liberty Dollar into the palm of a customer: "Feel that heavy piece of real coin in your hand, fellah. Want one? See our beautiful currency?" I don't know if there were many takers, because in buying his coins and paper "warehouse receipts", you would basically be doing charity for those behind this scam, compared to the alternatives. The "porcupines" are a pretty cynical group by now, they have seen it all in the "live free or die" state.

[Lambkin]

Even the libertarians at Lew Rockwell were not buying into the Liberty Dollar scam:

http://www.lewrockwell.com/rounds/rounds34.1.html

Following the link to the author's blog turns up another:

http://www.howtovanish.com/2011/04/libe ... nt-of-law/

[The Operative]

It appears some Liberty Dollar supporters decided to write a parody of a news article...
FBI raids Chuck E. Cheese for Undermining U.S. Currency

Excuse me while I smash some apples in an attempt to make orange juice.

[Pottapaug1938]

It appears some Liberty Dollar supporters decided to write a parody of a news article...
FBI raids Chuck E. Cheese for Undermining U.S. Currency

Excuse me while I smash some apples in an attempt to make orange juice.

I'm sure that the Liberty Dollar daisy chain is rolling on floors laughing at the ...um, humor of this piece.

[tracer]

The counterfeiting charge DOES feel a bit unsettling to me.

The fraud charge may be spot-on, but how does making and distributing ones own silver barter tokens constitute counterfeiting? It's not like he said they were U.S. dollars. It's true some folks were attempting to pass them off as genuine American currency, rather than as an alternative barter currency -- but that's like the case of the woman who was arrested for handing one of those novelty Million Dollar Bills to a clerk in a Wal*Mart. She was charged with counterfeiting, but nobody accused the company who printed the Million Dollar Bills of counterfeiting; so how was the Liberty Dollar guy guilty of counterfeiting?

[Nikki]

Early on in his Liberty Dollar / NORFED career, Bernard (in print on his web site) encouraged people to use the coins to pay for things.

"Do the drop," he urged. He wanted his customers to drop one of his coins into a merchant's hand to demonstrate how heavy and solid it felt -- and to encourage the merchant to accept it as payment.

Bernard was explicitly encouraging people to use his coins as currency and to pass them off as the equivalent for US coins.

[notorial dissent]

tracer, the reason Bernie got nailed with the counterfeiting charge was because his slugs look almost exactly like historical US coins, and that is a big NO NO. If he had left the US, the dollar, and the dollar sign off of the coins he would probably have been fine, but he intentionally didn't, and thereby left himself open and rightly so to the counterfeiting charge.

Bernie was, and is, an egotistical idiot, and got exactly what he had coming. His suckers, probably not so much.

[fortinbras]

If he had left the American images, the "USA", the dollar sign, off his slugs it would have been fairly obvious to everyone that they were buying something other than currency, depending on a shifty stranger's word for its weight and purity, and hoping that whomever they tried to pass these slugs to would also take that shifty stranger's word.

[Pottapaug1938]

I'm also reminded of the legendary "Sprinkle dollars" which were circulating in Kentucky around 200 years ago. Back then, U.S. coinage was still very scarce (long story); and Jacob and Nancy Sprinkle, who knew of a secret silver lode, used the silver to create well-made coins that actually contained more silver than a U.S. silver dollar. They became so popular that locals would insist in receiving a "Sprinkle dollar" in change if one was available; and an attempted prosecution of the Sprinkles fell flat because the jury deadlocked, a new trial was not ordered and the Sprinkles stopped minting their coins.

One key difference between Sprinkle and Liberty dollars is that the Sprinkle dollars were never intended to be confused with real coins since they bore no resemblance to them (sadly, none appear to have survived). Another key difference is that the Sprinkle dollars were similar, in composition, to genuine U.S. Mint issues; and they also circulated when the real issues were scarce. Von Nuthouse knew exactly what he was doing when he began issuing Liberty Dollars; and he got what he deserved in the end.

[Demosthenes]

LIBERTY DOLLAR NEWS:
May 2011 Vol. 13 No. 05

Kevin is OUT!

Dear Liberty Dollar Supporters!

Table of Contents:
1. Kevin is OUT!
2. Liberty Dollar Didn't Move Up
3. Gold Monetary Schedule
4. Central Banks Buying Gold
5. Anatomy of a Silver Manipulation
6. Warning: Porter Stansberry Predictions
7. Letter of Support by David H.
8. Collecting Liberty Dollars
9. Gov Theft of Your Liberty Dollars
10. CBS News features Liberty Dollar

Dear Liberty Dollar Supporters!

1. Kevin is OUT!
Kevin is really out. Praise the Lord and all of you who have supported Kevin while he was incarcerated! I am very pleased to report that after almost two years in stinking county jail, Kevin Innes, my male co-defendant in the Liberty Dollar case, was released at 4:PM on Aloha Friday, May 6, 2011! He is currently living with his wife, Julia, who stood by her man and was the biggest moving force to get him released. Kevin is currently working on becoming an American citizen and assisting Julia in her dove business of releasing trained white doves at weddings, funerals and other important life events. Please send a quick email to Kevin via: worldmusician@gmail.com. Julia can be reached via: aspiritswings@yahoo.com. Her website is: www.aspiritswings.com.

2. Liberty Dollar Didn't Move Up to $100 Silver Base
Last month I discussed the econometrics and mythology I used in the design and development of the Liberty Dollar. I asked, "With silver over $41.50 per ounce, the question is how long will it be before the 30 day moving average (30DMA) is over $41.50 and the Liberty Dollar model currency Moves Up to the $100 Silver Base?!

Well, we didn't have long to wait. On May 2, 2011, the 30DMA for silver was $41.61 and marked Day One of the 60 consecutive calendar days for the Liberty Dollar to Move Up to the $100 Silver Base. Just as the first time the Liberty Dollar was to Move Up from the $10 Base to the $20 base in March 2004, this Move Up to $100 base was not to be. On the eleventh day, May 13, 2011, the 30DMA for silver dropped below Move Up point of $41.50 and closed at $41.46,. The Liberty Dollar will Move Up when the conditions are met as defined by the model currency econometrics and mythology.

Sooner or later the ritual will begin again. With gov spending and only BS coming out of Washington, it is only a matter of time before the 30DMA for silver is over $41.50 for 60 consecutive calendar days and the Liberty Dollar Moves Up to the $100 Silver Base.

The most important point to note is that the Liberty Dollar currency model provides a disciplined structure to evolve the current failing fiat system to a new value based monetary system. Next month I will detail how the State Monetary Initiative could be converted into a national model and provide the brain dead idiots in Washington a method to actually save the US monetary system at a profit for the US gov! But of course, this is all just monetary ideological babble, because idiots, like so many Catos, don't really do anything.

3. Gold Monetary Schedule
In 2000 Liberty Dollar issued its first one ounce Gold Liberty with a $500 MSRP when the average price of gold was $279 per ounce. Then in 2006, with the average price of gold at $462 per ounce, Liberty Dollar issued its second one ounce Gold Liberty with a MSRP of $1000. Now with gold well over the Gold Liberty Move Up point of $900 for 30 consecutive calendar days, I hereby publicize the Gold Monetary Schedule that links the free market gold currency to the fiat gov currency utilizing the 30 day moving average (30DMA) for gold. Please note when the Liberty Dollar is vindicated as a legal currency that the current MSRP for one ounce Gold Liberty will be $2,500. Please click HERE for the complete Gold Monetary Schedule up to the $100,000 Gold Base.

Think we should have a Gold Standard? Think again and click HERE for my Organic Gold Standard, a new value based monetary standard based on a gold free market.

4. Central Banks Buying Gold
This article should be titled The Tail that Wags the Dog! How long is the precious metals market going to be bullied by the petty central banks that only hold 18% of the worlds gold when the other 82% is in private hands?

First Quarter issue of Gold Investment Digest by the World Gold Council www.gold.org in England stated:
1. The gold price rose by 2.4% during Q1 to US$1,439.00/oz by 31 March 2011, on the London PM fix, a more modest rise relative to average gains of 6.2% per quarter over the past two years.
2. By the end of Q1, ETFs held a total of 2,110.3 tons of gold worth US$97.6 billion, compared with the high of 2,167.4 tons at 31 December 2010, or US$97 billion - a modest net outflow in the quarter.
3. Central banks continued to be net buyers of gold in Q1 2011 with emerging market countries, including Russia and Bolivia, being among the key net buyers. As a group, the official sector holds 18% of all above ground stocks of gold. (Editor note: Mexico, Russia and Thailand added gold now valued at about $6 billion to their reserves at record gold prices.)
More info from the World Gold Council at: Gold Demand Trends first quarter 2011

The bottom line is that the US Mint has record sales. "Gold-coin sales reaching one-year high signal no end to rally" by Nicholas Larkin and Pham-Duy Nguyen with Bloomberg News gets it right. People are getting out of BS fiat currency - regardless of price.

IMHO While national central bank's gold purchases support higher metal prices, it is utterly ridiculous that a disjoined group of central banksters with only 18% should yield such power over the gold market. It is even more ridiculous when you consider that the only way the !@#$#@! central banksters can get any additional influence… is for them to buy it from the free market and at free market rate! In this regard, the free market rules!! But the height of ridiculousness is that the basis of their control is that the central banksters make fiat money out of thin air and use it to purchase real gold and silver money! Personally, I think the outdated and corrupt central banks should go to hell when they belong!

Central banks, just like the corrupt governments they support, have proven their ridiculous disregard for value on many occasions. Just consider one of their past bright moves. In April of 2007 the Bank of England sold 400 tons of gold at the very nadir of the market that has since become known in UK financial circles as Brown's Bottom. Over those 17 auctions, England sold HALF of their gold reserves at an average price of $275 per ounce. The rock-bottom price cost every British taxpayer £100!

Of course England is the same brain dead country that pissed off "their" America colonies, lost India, practically everything else and would have lost World War II had it not been for Churchill conspiring with Roosevelt to get American into WWII. It is now known and acknowledged by the US government that Roosevelt knew about the attack on Pearl Harbor before it happened. Please visit these two articles for the complete truth regarding only one of many Presidential Betrayals: Pearl Harbor: Hawaii Was Surprised; FDR Was Not. And Betrayal at Pearl Harbor.

The whole relationship between government, central banks, war and gold is misguided at best and criminal at least! If the gov had to pay for arms with gold, there would be less arms and less war!

5. Anatomy of a Silver Manipulation
Here is an outstanding anatomy of the recent silver manipulation by Avery Goodman for Seeking Alpha posted on Monday, May 9, 2011, right after silver's meltdown from our good friends at GATA.org, who do a terrific job of keeping the industry informed while building consensus. Please click HERE for an Anatomy of a Silver Manipulation.

6. Porter Stansberry Predictions
As the WARNING states: "What you are about to see is controversial, and may be offensive to some audiences. Viewer discretion is advised." Well before I refer you to Porter Stansberry's site I have my own warning because I don't know Stansberry but there certainly are a lot of people who have accused him of fraud including a federal conviction for fraud. Of course, I have my own guilty verdict so maybe you should not even read this Newsletter:). Regardless, Stansberry does present a very interesting ballsy expose' regarding America, money and your future. So visit www.endofamerica.com for what its worth to you and guard your money well even if it is for only $49.

7. Letter of Support by David H.
Hello Bernard,

I've never written to you directly, though I've been a supporter of the Liberty Dollar since the early days.

I have to say you're one of the bravest bastards I've ever encountered. You continue to fight - even when it is clear that your cause has been slated to be crushed by 'the status quo'. I just want you to know that whatever happens in the future, there ARE people watching you. People who recognize your sacrifice - and who recognize that you have been unjustly penalized.

Bernard - I would like to be clear - I don't agree with all of your ideas, but I still believe that you were RIGHT to directly confront the constitutionality of the Federal Reserve System. I firmly believe that God Blesses you, and that history will ultimately label you as a true Patriot. May God Bless America and the principles upon which it was founded.

Wishing you the best.

David H.

Editor Note: Thanks David for your support. I wish I had time to reply to all the letters and emails I get. I trust everyone knows how much I appreciate your support during these difficult times to return America to a value based monetary system.

8. Collecting Liberty Dollars
As I reported last month, the DOJ has confirmed that collectors and owners of Liberty Dollar will not be arrested or harassed by the government provided their Liberty Dollars are not used as "current money." Luckily, the Liberty Dollar numismatic community is blessed by many supporters, collectors and dealers like Dave Gillie, Jeff Kotchounian and Ron Goodger. As witnessed by the auction on eBay, there are countless many more people who deal in Liberty Dollar collectibles, but I personally know these three dealers and can speak most highly of them. For newbies to collecting the Liberty Dollar, you may wish to visit Ron Goodger's independent website for the Liberty Dollar at: http://sites.google.com/site/libertydollarencyclopedia/. Please note that Ron's unofficial site is totally separate from Liberty Dollar and my convictions.

9. Gov Theft of Your Liberty Dollars
Thank you for your reply and identifying yourself as a holder of Liberty Dollar certificates and an "interested party." There are now well over 500 people who have refused to let the government steal their property via the forfeiture hearing that is now pending. Unfortunately for our patience, the forfeiture hearing(s) is a very long and drawn out process. So please be patient as your property will eventually be addressed by the court. Trust me, you will be kept informed via this Newsletter as it is my obligation to get your property returned ASAP.

Meanwhile, if you are new to this info and have not yet informed me that you are holding either the paper or digital warehouse receipts aka Liberty Dollar or NORFED Certificates, please take action so I can protect your property. If you don't register as an "interested party" you may not get your property back.

PLEASE EMAIL THE STATEMENT BELOW to Thomas R. Ascik <thomas.ascik@usdoj.gov>, the government attorney who is trying to steal your property. And send a CC to me <Bernard@LibertyDollar.org> so I can forward your name to the attorney who will represent you as an "interested party" after you sign an attorney/client agreement. Be sure to include your name and address below:
I hereby certify that I am the bearer of Liberty Dollar warehouse receipt(s) and an interested party in any forfeiture action regarding my property. I demand the return of my property or its fair market value in a timely manner and to be informed with sufficient time to reply to any and all actions until my property is returned.
YOUR NAME AND ADDRESS MUST BE INCLUDED

10. CBS News features Liberty Dollar
I am pleased that the long lost CBS Newscast of the Liberty Dollar of Chambersburg Pennsylvania has been found and posted on YouTube. My congratulations and thanks to legendary RCO Pete Hallock for his innovative Liberty Dollar dispenser, his book Duped on the Federal Reserve and this video. Click HERE for the newscast.

I continue to believe that it is only by adopting a free and independent currency that provides us with "just weights and measures" that we will be able to throw off the yoke of a manipulated monetary/tax system and generate a peaceful and prosperous society.

Thank you for all your efforts to return America to value - one dollar at a time!

Bernard von NotHaus
Monetary Architect/Editor
Editor@LibertyDollar.org

[Demosthenes]

1. Kevin is OUT!
Kevin is really out. Praise the Lord and all of you who have supported Kevin while he was incarcerated! I am very pleased to report that after almost two years in stinking county jail, Kevin Innes, my male co-defendant in the Liberty Dollar case, was released at 4:PM on Aloha Friday, May 6, 2011! He is currently living with his wife, Julia, who stood by her man and was the biggest moving force to get him released. Kevin is currently working on becoming an American citizen and assisting Julia in her dove business of releasing trained white doves at weddings, funerals and other important life events. Please send a quick email to Kevin via: worldmusician@gmail.com. Julia can be reached via: aspiritswings@yahoo.com. Her website is: http://www.aspiritswings.com.

Bernard didn't mention that Kevin took a guilty plea in a separate case???

UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF NORTH CAROLINA
STATESVILLE DIVISION
UNITED STATES OF AMERICA
vs.
WILLIAM KEVIN INNES

MOTION TO DISMISS
DOCKET NO. 5:09CR27-2

Pursuant to Rule 48(a) of the Federal Rules of Criminal Procedure, and by leave of this
Court endorsed on the attached Order for Dismissal, the United States Attorney for the Western
District of North Carolina hereby dismisses the above-captioned Bill of Indictment (as it relates
to this Defendant only) in the above captioned case with prejudice. The defendant entered a plea of guilty to related offenses in 5:11 po 0001-DLK.

[Demosthenes]

Kevin's other case:

United States District Court
For The Western District of North Carolina
UNITED STATES OF AMERICA JUDGMENT IN A CRIMINAL CASE
(Petty / Misdemeanor Offenses)
V.
Case Number: 5:11po00001
William Kevin Innes
Claire Rauscher and Erin Taylor
Defendant’s Attorney
THE DEFENDANT:
X pleaded guilty to count(s) 1
Pleaded guilty to violation(s)
Pleaded not guilty to count(s)
Pleaded not guilty to violation(s)
Title and Section Nature of Offense
Date Of
Offense Counts
18:489 Make or possess likeness of coins April 2009 1
Counts(s) (is)(are) dismissed on the motion of the United States.

Violation Notice(s) (is)(are) dismissed on the motion of the United States.

Found not guilty as to:

IMPOSITION OF SENTENCE: That the defendant pay a fine in the amount of $300 and a $5 assessment . All monies due within 60 days of defendant’s release .
Date

[Harvester]

Thanks for the update Demo. If anyone has any Liberty/ NORFED silver/gold they wish to unload, I'm buying. Of course, payment will be in Bitcoin, silver, or lawful money.

[AFTP]

I have a few of the dime size 1/10 oz $1 coins.
Wonder if I should melt them for scrap or sell them as a novelty.
The silver is worth something.

[Harvester]

AFTP, for 3 of them I'll give you one Bitcoin; or twenty bucks.

[AFTP]

AFTP, for 3 of them I'll give you one Bitcoin; or twenty bucks.

[Burzmali]

Ah bitcoins, the antithesis of gold, favorite of the pot heads and pirates the world over. Watch out with those less you get plundered by the lulzboat!

[Lambkin]

Hello, FDIC...?

http://www.pcworld.com/article/230377/w ... 00000.html