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Encyclopedia > Liberty Dollar
Liberty Dollar
American Liberty Dollars
American Liberty Dollars
ISO 4217 Code None
User(s) Individuals and businesses primarily in the United States and insular areas of the United States such as Puerto Rico.
Symbol $ or ALD (non-ISO 4217; used for multicurrency accounting)
Central bank Liberty Services. (A private corporation, not a bank)
Website www.libertydollar.org
Mint Sunshine Mint
Website www.sunshinemint.com

The Liberty Dollar is a private currency embodied in minted metal pieces and gold & silver certificates (ALD), and electronic currency (eLD). It is distributed by Liberty Services (formerly NORFED), based in Evansville, Indiana. The company that mints and warehouses Liberty Dollars is [1] in Coeur d'Alene, Idaho. The Liberty Dollar was created by Bernard von NotHaus, the co-founder of the Royal Hawaiian Mint Company.[2] Image File history File links Liberty_Dollar. ... An insular area is United States territory that is neither a part of one of the fifty states nor a part of the District of Columbia, the nations federal district. ... For other uses, see Corporation (disambiguation). ... A mint is a facility which manufactures coins for currency. ... A private currency is a currency issued by a private institution. ... Nickname: Location in the state of Indiana Country State County Vanderburgh Government  - Mayor Jonathan Weinzapfel (D) Area  - City 40. ...

Contents

Inflation Compensation

From its debut on October 1, 1998 to November 23, 2005, NORFED exchanged one troy ounce silver Liberties valued at ten Liberty Dollars for US$10. On November 24, 2005, the silver base was raised to US$20 because of the rising price of silver as measured in United States Dollars.. $10-base/tr.oz. rounds can be exchanged for a small fee. $10-base paper certificates can be exchanged for the new $20-base certificates at no cost. In January 2007, Liberty Services began an exchange service to convert Liberty Dollars into U.S. dollars. A partial list of merchants accepting Liberty Dollars can be found online [3]. However, it should be noted that according to the U.S. Department of Justice: "the use of these gold and silver NORFED "Liberty Dollar" medallions as circulating money is a Federal crime". [4] is the 274th day of the year (275th in leap years) in the Gregorian calendar. ... Year 1998 (MCMXCVIII) was a common year starting on Thursday (link will display full 1998 Gregorian calendar). ... is the 327th day of the year (328th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 328th day of the year (329th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... USD redirects here. ...


Differences from other "alternative currencies"

A number of alternative currencies exist in the United States, including the Liberty Dollar, Phoenix Dollars, Ithaca Hours, and digital gold currency. Unlike most other alternative currencies, both Liberty Dollars and Phoenix Dollars are denominated by weight and backed by a commodity. Phoenix Dollars are backed exclusively by silver, while there are both gold and silver backed Liberty Dollars. Liberty Dollars differ from other alternative currencies in that they carry a suggested US dollar face value. An Eighth Hour, part of the local currency system of Ithaca, NY. Ithaca Hours is a local currency in Ithaca, New York. ... e-gold is, according to their website, 100% backed by gold Digital gold currency (or DGC) is a form of electronic money denominated in gold weight. ...


Community currencies have trouble because there is little to stop the issuer from producing more currency.[5] The primary difference between the Liberty Dollar and Hours is that Liberty Dollars are backed by an objective measure -- a weight in metal.


Previous attempts at establishing an alternative currency in the United States focused on [6]: the value of the currency is tied to a specific unit of time; i.e 1 hour = 1 Time Dollar, so it depends on people in the future willing to swap their labor time, regardless of the market value of the labor provided. Community currencies like Ithaca Hours are distinctly different from and not to be confused with the Time-based currency developed by Edgar Cahn, in which members of a "Time Bank" exchange services with one another in increments of time. Performing one hour of service to another member earns the provider a Time Dollar, which can be banked and spent later on an hour of any kind of service from another member. There is no US$ value assigned to the unit of exchange, goods (unless they are quantifiable in terms of time) cannot be purchased with Time Dollars, and they are backed only by a moral obligation to reciprocate at some future time. The purpose of the Time Dollar system is to encourage and reward the co-production of common goods - like healthy families, community justice, or education - by the members of a community. Therefore (unlike Ithaca Hours and other community currencies), Time Dollars are tax-exempt and "inflation-proof," and are considered a complementary, rather than an alternative, currency. The Ithaca Hour is an example of time-based currency. ...


Major differences exist between how the different currencies are intended to be used. Trust-backed currencies are naturally limited to small areas and are intended to function only as local currencies, to be used in a specific city or region, with the possible exception of the Time Dollar, which (given new technology) can be exchanged over large geographic areas, while commodity-backed currencies are intended for use on a much larger scale. Liberty Dollars are marketed as an alternative national currency in the United States. Phoenix Dollars are intended more for use as investments in silver than as an alternative currency, and are marketed for worldwide use.


Liberty Dollars differ from digital gold currency in that online gold currency can be redeemed for dollars, euros or other national currencies through various online services at the actual spot price of the metal. eLiberty Dollars can be redeemed for silver Liberty rounds or for paper Liberty Dollars at par—currently one troy ounce silver Liberty round for twenty eLiberty Dollars.


Liberty Dollar Base Values, "MoveUps", and the "Discount" & "Commission"

Liberty Dollar is based on the Liberty Dollar "Base Value" created by Bernard von NotHaus. Currently the Base Value of Liberty Dollar is $20 Liberty Dollars to one ounce of silver. One ounce Liberty Dollar gold pieces are now denominated $1,000 with a maximum charge of 10% over spot price with membership. The previous Base Values were $10 silver ounce and $500 gold ounce. Non-members pay full face value for all currency except for certain Special and Numismatic items. Members' discounts range from 0% to 50%+ (actually, for short periods during crossovers it is possible that even members cannot buy Liberty Dollars at cost or less).


Liberty Dollar Associates and Merchants used to exchange for Liberty Dollars "at a discount", so they could "make money when [they] spend money." To further distinguish how Liberty Dollar works, von NotHaus transitioned to a commission structure in June 2007 where Associates and Merchants receive a commission in the form of extra Liberty Dollars when they place their orders. Regional Currency Officers have always received larger discounts, since they are the regional distributors and official representatives of Liberty Services.


The Liberty Dollar Associate and Merchant discounts can range from 0.0%-50%+ (zero to more than fifty percent) depending on where the price is of silver is, relative to the Liberty Dollar Base Value, the Liberty Dollar Base Value Crossover Points, and the time periods the price has stayed above varying moving-day averages over 30, 60 or 90 days in a fluctuating market, based on Liberty Dollar formulas worked out by von NotHaus.[7][8][9][10]


Federal Government response

Numerous individuals within the US Government have been interviewed regarding the Liberty Dollar. One Secret Service agent stated "It's not counterfeit money" while remaining "skeptical" of NORFED. Another agent warned that the Liberty Dollar "appears to be in violation of Title 18, Section 514 of the United States Code."[11] Because of both the secrecy of secret services and the controversial nature of the issues involved, there is some difficulty in separating the definitions of secret service, secret police, intelligence agency etc. ...


Claudia Dickens, spokeswoman for the U.S. Treasury Department's Bureau of Engraving and Printing, had previously said American Liberty Currency is legitimate. "There's nothing illegal about this," Dickens said after the Treasury Department's legal team reviewed the currency. "As long as it doesn't say 'legal tender' there's nothing wrong with it."[12]


In 2006 the U.S. Mint issued a press release stating that prosecutors at the Justice Department had determined that using Liberty Dollars as circulating money is a federal crime. The press release also intonated that the “Liberty Dollars” are meant to compete with the circulating coinage (currency) of the United States and such competition consequently is a criminal act. [13][14] The Robert F. Kennedy Department of Justice Building in Washington, D.C. “Justice Department” redirects here. ... Competition is the act of striving against others for the purpose of achieving gain, such as income, pride, amusement, or dominance. ...


Using a currency as "circulating money" means treating and presenting it as legal tender.[citation needed] The Liberty Dollar organization responded to the Mint's press release by stating that "[t]he Liberty Dollar never has claimed to be, does not claim to be, is not, and does not purport to be, legal tender. The Liberty Dollar repeatedly has emphasized that it is not legal tender. Legal tender and barter are mutually exclusive. The Liberty Dollar is a numismatic piece or medallion which may be used voluntarily as barter."[original emphasis][15] Legal tender or forced tender is payment that cannot be refused in settlement of a debt denominated in the same currency by virtue of law. ... Barter is a type of trade in which goods or services are exchanged for other goods and/or services; no money is involved in the transaction. ...


Lawsuit: von NotHaus vs the U.S. Mint

On March 20, 2007, Liberty Services owner Bernard von NotHaus filed suit in the District Court for the Southern District of Indiana against the U.S. Mint's claims regarding the Liberty Dollar. Defendants include Henry M. Paulson, Secretary of the Treasury, Alberto R. Gonzales, Attorney General of the United States, and Edmond C. Moy, Director of the Mint.[citation needed] The suit seeks a declaratory judgment that circulating Liberty Dollars as a voluntary barter currency is not a federal crime and an injunction barring the Defendants from publicly or privately declaring the Liberty Dollar an illegal currency and to remove any such declarations from the U.S. Mint's website. [16] is the 79th day of the year (80th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... Henry Paulson Henry M. (Hank) Paulson, Jr. ... The United States Secretary of the Treasury is the finance minister of the Federal Government of the United States. ... Alberto R. Gonzales (born August 4, 1955 in San Antonio, Texas, USA) is the current United States. ... The United States Attorney General is the head of the United States Department of Justice concerned with legal affairs and is the chief law enforcement officer of the United States government. ...


Purported FBI raid

Participants in the Liberty Dollar received an email[17] on the morning of November 15, 2007, purporting to be from Bernard von NotHaus, the owner of Liberty Services. The message included a claim that agents of the Federal Bureau of Investigation (FBI) raided the Liberty Dollar offices in Evansville, Indiana, and confiscated all precious metals and other critical materials including 2 tons of newly minted "Ron Paul Dollars". Image File history File links Gnome_globe_current_event. ... F.B.I. and FBI redirect here. ... Ronald Ernest Paul (born August 20, 1935) is a 10th-term United States congressman from Lake Jackson, Texas, a member of the Republican Party, a pro-life physician, and a candidate for the Republican nomination in the 2008 presidential election. ...


That email linked to a sign up page for a class action lawsuit to recover the precious metals. At the same time, all other forms on the web site relating to purchases of Liberty Dollars became nonfunctional. Copies of the warrant documents have been posted to the web site.[18]


A local paper, the Evansville Courier Press, has reported the email, but has stated: "FBI Agent Wendy Osborne, a spokeswoman for the FBI's Indianapolis office, directed all questions on the raid to the Western District of North Carolina U.S. Attorney's Office. A spokeswoman there said she had no information on the investigation. Bernard von NotHaus, the group's monetary architect and the author of the e-mail, did not immediately respond to a message seeking comment."[19]


A proposed explanation for the FBI action is fraudulent pricing. One source claims that "...the minted gold, silver, and bronze coins were being sold at markups of between 25% and 400% on the actual value of the precious metals contained therein."[2]


Criticism

Because of inflation, Liberty Dollars cannot be bound to a specific valuation in United States dollars over time; Liberty Services maintains the parity of one Liberty Dollar to one US$1 by re-basing Liberty Dollars as the purchasing power of the US Dollar (Federal Reserve Note) falls, leading to the circulation of two different versions during re-basing transition periods. [20] Liberty Services has plans for further re-basing as the dollar continues to fall. [21] Note that this only deals with newly-created Liberty Dollars; regardless of US$ inflation, Liberty Dollars already in circulation are not re-based unless shipped back to Liberty Services for that purpose. The United States dollar is the official currency of the United States. ... Various Federal Reserve Notes - note that they are missing serial number imprints A Federal Reserve Note (FRNs or ferns) is a type of banknote issued by the Federal Reserve System and is the main type of paper currency in the United States. ...


A one troy ounce Liberty Dollar is intended to be spent at its ALD20 monetary value, for a premium over its intrinsic value.[22] Liberty Dollars are currently sold or exchanged for about US$7 over the spot price of silver (as of July 15, 2007). A de-monetized one troy ounce American Silver Eagle (US$1 monetary value) is currently sold for US$22 by the U.S. Mint, yet can be bought for about US$2 over the spot price of silver [23]. Liberty Dollar distributors are given a large discount when exchanging US Dollars for Liberty Dollars [24]. U.S. Mint distributors are given a large discount when exchanging US Dollars for American Silver Eagles. These discounts are used for transportation, marketing and storage costs.


Liberty Dollars are purchased at par for US$1 each, yet conversion from ALD to US$ is at discount based on commodity spot price.[25] As the US$ decreases in purchasing power, the intrinsic value of the ALD remains relatively constant. But the ability of a holder of ALDs to barter based on their intrinsic value is inefficient because of the lack of a highly liquid exchange process. U.S. national banks are economically and politically unable to directly lend in Liberty Dollars.


Critics of the Liberty Dollar include Carl Watner, who publishes the voluntaryist newsletter The Voluntaryist,[26] and Las Vegas libertarian writer Vin Suprynowicz, who refers to Liberty Services as a multi-level marketing system.[27] Carl Watner (1948-) is an American author and historian of libertarian studies, and a voluntaryist. ... Voluntaryism is a form of anarcho-capitalism advocated by Auberon Herbert, stressing voluntary taxation and the boycott of electoral politics. ... Vin Suprynowicz is a libertarian columnist who lives in Las Vegas and writes for the Las Vegas Review-Journal. ... Multi-level marketing (MLM) is a business model that combines direct marketing with franchising. ...


Some critics, including Watner, agree with the concept of hard money but disagree with Liberty Services' implementation, saying the "silver base" is extremely rigid compared to the spot price of silver, and recommend instead the use of generic silver rounds as currency. Furthermore, critics assert that stamping a dollar amount on the Silver Liberty defeats the purpose of measuring money in terms of weights of specie, and that the design of the piece may confuse some people into thinking that the Liberty Dollar is legal tender (forced tender) rather than a voluntary private currency.[citation needed] Hard money policies are those which are opposed to fiat money and thus usually in support of a gold standard or similar. ... Silver coins are possibly the oldest form of money. ...


Relative intrinsic value of Copper Liberty Dollar

The Copper Dollar (sold for 1 U.S. Dollar) as with all rounds issued by Liberty Services is promoted as hard money, however based on London Metal Exchange prices of Copper and Zinc (at $7,980 and $2,958.50 per tonne on 2007-10-17 respectively), it can be calculated that the actual value of one avoirdupois ounce of copper in a Liberty Copper Dollar round is worth just over 22 cents, whereas after separation, the copper and zinc content of 100 U.S. pennies is worth over 74 cents. The United States dollar is the official currency of the United States. ... The London Metal Exchange or LME is the futures exchange with the worlds largest market in options and futures contracts on base and other metals. ... Copper has played a significant part in the history of mankind, which has used the easily accessible uncompounded metal for nearly 10,000 years. ... General Name, symbol, number zinc, Zn, 30 Chemical series transition metals Group, period, block 12, 4, d Appearance bluish pale gray Standard atomic weight 65. ... ¢ c A United States cent, or 1¢ or a penny In currency, the cent is a monetary unit that equals 1/100 of various countries basic monetary units. ...


References

  1. ^ http://www.sunshinemint.com/ Sunshine Mint
  2. ^ http://www.libertydollar.org/news-stories/pdfs/1166043540.pdf
  3. ^ http://www.libertydollar.org/ld/spend-liberty-dollars/index.htm
  4. ^ http://www.usmint.gov/consumer/index.cfm?flash=yes&action=HotItems
  5. ^ http://www.transaction.net/money/glossary.html Transaction Net "Important Terms and Concepts" (glossary)
  6. ^ http://www.timebanks.org Time Dollars
  7. ^ http://www.libertydollar.org/ld/faqs/crossover-twenty.htm
  8. ^ http://www.libertydollar.org/ld/about/liberty-dollar-doubles.htm
  9. ^ http://www.libertydollar.org/ld/faqs/silver-over-ten.htm
  10. ^ http://www.libertydollar.org/ld/faqs/why-pay-twice.htm
  11. ^ http://www.norfed.org/news-stories/pdfs/libertybucks.pdf
  12. ^ http://www.norfed.org/news-stories/pdfs/y2klooming.pdf
  13. ^ http://www.usmint.gov/pressroom/index.cfm?flash=yes&action=press_release&id=710 Justice Determines Use of Liberty Dollar Medallions as Money is a Crime
  14. ^ http://www.usmint.gov/consumer/index.cfm?action=HotItems U.S. Mint: NORFED’s Liberty Dollars
  15. ^ http://www.libertydollar.org/ld/press-kit/usmint-allegations.htm
  16. ^ http://www.libertydollar.org/ld/legal/legalissues.htm
  17. ^ http://www.rabidquill.com/?p=17
  18. ^ http://www.libertydollar.org/ld/legal/raid.htm
  19. ^ Gavin Lesnick, "Liberty Dollar office raided," Evansville Courier Press, Nov. 15, 2007, as of 2:55 p.m. CST at [1]
  20. ^ http://www.libertydollar.org/ld/about/liberty-dollar-doubles.htm
  21. ^ http://www.libertydollar.org/ld/rco/rate-formulas.htm
  22. ^ http://www.libertydollar.org/ld/spend-liberty-dollars/howtospend.htm
  23. ^ http://apmex.com/Category/160/Uncirculated_Silver_American_Eagles_.aspx
  24. ^ http://www.libertydollar.org/
  25. ^ http://www.libertydollar.org/ld/faqs/convertibility.htm
  26. ^ Watner, Carl. Fed up with the Federal Reserve. Retrieved on 2006-09-02.
  27. ^ Vin Suprynowicz (March 2003). Letters to the Editor. Retrieved on 2006-09-02.

Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 245th day of the year (246th in leap years) in the Gregorian calendar. ... Vin Suprynowicz is a libertarian columnist who lives in Las Vegas and writes for the Las Vegas Review-Journal. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 245th day of the year (246th in leap years) in the Gregorian calendar. ...

See also

e-gold is, according to their website, 100% backed by gold Digital gold currency (or DGC) is a form of electronic money denominated in gold weight. ... Community currencies that have been used in the United States: Time Dollar Hero dollar Minneapolis, Minnesota Ithaca Hours Ithaca, New York Amesbury Hours Amesbury, Massachusetts Anacostia Hours [1] Mount Rainier, Maryland Area Bucks Palo Alto, California Atlanta Hours Atlanta, Georgia Bainbridge Island Bucks Bainbridge Island, Washington Baltimore Hours [2] Baltimore... The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. ... A 500 gram silver bullion bar Silver, like other precious metals, may be used as an investment. ...

External links


  Results from FactBites:
 
The Liberty Dollar IS Liberty (2940 words)
Liberty Dollar can change that frustration into success because we are striking at the root of evil instead of hacking at the branches as Thoreau put it.
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Liberty Dollars are specially-minted.999 pure silver rounds and.9999 pure gold rounds, as well as silver certificates and gold certificates sold as "warehouse receipts," which can be redeemed for gold and silver Liberty rounds.
Liberty Dollars are officially accepted in a handful of merchant locations around the country.
According to NORFED, its Liberty Dollar currency was submitted to the Bureau of Engraving and Printing for review, which verified that the Liberty Dollar is not an attempt to counterfeit under 18 USC 3056.
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