Monday, September 25, 2006

9/25/06 Richard Russell: The Evansville, Indiana-based National Organization for Repeal of the Federal Reserve Act and the Internal Revenue Code (known as NORFED) has been making Liberty Dollar coins for eight years. They claim $20 million of the coins are in circulation. The group states that the coins are a hedge against inflation because the coins are made almost entirely of silver and are backed by stocks of silver held in a vault in Idaho. The coins come in various denominations, and are used in trade by the group's 2,500 Liberty Associates in stores run by the group.A few week ago the US government warned consumers and businesses that it is illegal to use alternative money known as "Liberty Dollars," in competition with the almighty dollar. The coin's producers vow that they will fight the government's decision. The Justice Department has stated that using the group's money is "a crime" according to the US mint. Says the mint, "The United States Mint is the only entity that can produce coins." NORFED says that it will fight the government's stand.So the government is saying that you can't use alternative intrinsic money for transactions, you must use the fiat paper money that is produced by the Federal Reserve. In essence they are saying that privately-produced coins made of silver are illegal because they are not made by the US mint. On the other hand, fiat paper turned out the Federal Reserve (which is not strictly a division of the US government, but private) is legal tender. "money"

8 Comments:

Blogger Not Sure if Al Gore or Global Warming is a Bigger Joke said...

One thing I know right now if you exchange one Fed debt unit, aka USD, for any other form of currency in the world - CAD,AUD,Euros,Yen,Pound,Yuan,Gold, Silver, Liberty Dollars, or $1 of pennies - it will be worth more more in $1 at the next ASAP reunion.

9:25 PM  
Blogger MattKelly54 said...

Yet, you are buying bonds?

1:51 PM  
Blogger Fresh said...

Serious question here: why do you need silver to back your currency if your currency is composed almost entirely of silver? Does the coin represent more value in silver than can be reasonably coined?

3:27 PM  
Blogger Not Sure if Al Gore or Global Warming is a Bigger Joke said...

I have no idea what you are talking about doug; please explain. Coins aren't made of silver fyi.

11:02 PM  
Blogger Not Sure if Al Gore or Global Warming is a Bigger Joke said...

I am not buying bonds, i longing eurodollar future contracts. Its been a great play so far; that is a short term trade that is working well - 10yr is down to 4.55 and when I wrote that I think it was at like 4.75. In EDC07 the move was more dramatic and I made even more. But long term i am short the dollar big time.

11:07 PM  
Blogger Fresh said...

Ben, you have to read the article:

"The Evansville, Indiana-based National Organization for Repeal of the Federal Reserve Act and the Internal Revenue Code (known as NORFED) has been making Liberty Dollar coins for eight years. They claim $20 million of the coins are in circulation. The group states that the coins are a hedge against inflation because the coins are made almost entirely of silver and are backed by stocks of silver held in a vault in Idaho."

7:57 AM  
Blogger MattKelly54 said...

It was probably a good trade when the ten year was at 5.5%.

If you have enough calls sooner or later you will have to be right. You were pretty serious 4 months ago when you said that there was no end in sight to the Fed raising rates. You guys were so smugly short duration. Now just for a trade you are "long duration". Its funny to me, that is all.

Does the government lieing really accomplish anything? It surely does not make anyone richer or improve credit. Isn't that what really drives interest rates.

8:22 AM  
Blogger Not Sure if Al Gore or Global Warming is a Bigger Joke said...

Doug,

I apologize, I misunderstood your comment.

6:24 PM  

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