From the December 2004 Idaho Observer:
While paper dollars edge toward worthlessness, real silver money is positioned to double in value
Every indicator, including words from the mouth of Federal Reserve Chairman Alan Greenspan, shows that the dollar is in a decline. Global confidence and respect for the U.S. is at an all-time low while our nation’s domestic indebtedness is at an all time high. A myriad of social and political issues threaten to tear America to pieces. It does not require a crystal ball or an advanced degree in economics to see that a crashing dollar may never regain its former glory. Since governments and their fiat come and go while people will always be exchanging goods and services, Americans would do well to look beyond their green pieces of government fiat paper to see those shining silver rounds for what they are—real money.
EVANSVILLE, Indiana, Dec. 7— On Monday, December 6, the economic formula that controls the doubling of the Liberty Dollar crossed over $7.50 and, due to higher silver prices, the Liberty Dollar has entered the 30-day-long slot to double, NORFED announced.
According to NORFED founder and Monetary Architect Bernard von NotHaus: "This is the second most exciting development in the Liberty Dollar’s history—the first being its introduction over six years ago. Now people are going to have a real comparison between the depreciating, debt-based U.S. dollar and the appreciating value-based Liberty Dollar."
Von NotHaus explained that, just as gasoline has increased in value relative to U.S. dollars, now the Liberty Dollar is also set to respond to a higher silver market. That means every Liberty Dollar an individual or business has will double in face value when the Silver Base doubles.
In other words, for every Liberty Dollar you have at the $10 Silver Base before it doubles, you will able to exchange it for a Liberty Dollar at the new $20 Silver Base when the Crossover Point is reached.
The Crossover Point of the Liberty Dollar from the current $10 Silver Base (one Troy ounce of .999 fine silver backs 10 Liberty Dollars) to the new $20 Silver Base (one Troy ounce of .999 fine silver backs 20 Liberty Dollars) is clearly defined as the day when the 30-day moving average (30DMA) for silver has been over $7.50 for thirty consecutive calendar days.
As the Crossover Point is very important, NORFED uses an independent, third party source for its 30DMA so that the definitive point is readily available and easily verifiable by everyone. Just like the entire Liberty Dollar system, there is total transparency for the econometric stability-inducing features designed into the Liberty Dollar to protect it from the erratic actions of a free silver market. The silver 30DMA is posted by market analysts ScotiaMocotta at http://www.scotiamocatta.com/prec/pdfs/pm_daily.pdf.
Doubling in value
How is this possible? Certainly, as a unique feature of the Liberty Dollar, it does turn some heads. To new initiates into the world of emerging currencies, this seems odd, but not to the supporters of the Liberty Dollar, who have made it the second most popular currency in America.
As the dollar continues to fall, and the price of silver rebounds from a half-century of manipulation and control, the face value of the Liberty Dollar is simply being driven by free market forces to double.
Von NotHaus asks, "As a free market currency, doesn’t it just make sense that if the underlying commodity increases in value - shouldn’t the purchasing power of the currency increase in value? Yes! And isn’t that the essence of an inflation proof currency? Yes! Doesn’t it just make sense that we should use the best currency available? Yes! That’s why the Founding Fathers wanted their new country to have the best money because they knew the importance of good money and that it would make America morally and politically strong. That is why the U.S. Constitution mandates that only gold and silver is money."
Von NotHaus pushes his point for good money even further, "Doesn’t it seem like any government that fosters anything other than a strong disciplined currency like gold and silver may have ulterior motives? And isn’t that exactly what has happened since Congress formed that unholy alliance with international bankers and passed the Federal Reserve Act?
"So it would appear. And so you should choose before it is too late for your money and our country. A value-backed, free market currency offers the fairest monetary system, the least taxes and the least amount of government intrusion into the people’s lives."
But wait, there is still a chance that Liberty Dollar may not double. Last April, 2004, the 30DMA crossed over $7.50 and the Liberty Dollar entered the slot to double. After eight days, the 30DMA dropped below $7.50 and the Liberty Dollar failed to move to the new $20 Silver Base.
Von NotHaus was relieved because he said it proved the soundness of his monetary design. He explained that, "The Crossover Point was specifically designed to be difficult to attain, because the silver market is a study in volatility. The Crossover feature addresses one of the main problems I encountered in designing the free market Liberty Dollar: How to accommodate for silver’s very free-market behavior."
In the monthly electronic newsletter, Liberty Dollar News, von NotHaus called it a "shot across the bow."
Will it crossover this time? Time will tell, but it would seem with the ballooning national debt, the U.S. Dollar will lose more value, silver will rise, and so will the Liberty Dollar—just like it was designed to do.
Von NotHaus hastens to point out that not only has the U.S. Dollar lost over 40 percent of its purchasing power in comparison to the euro in the last two years, it has lost a lot more in the United States since Congress turned over the monetary powers to the Federal Reserve. And all because the Federal Reserve Note is totally based on debt.
To hear von NotHaus explain the speed of the depreciation makes the situation sound most alarming.
Just consider that from 1913 to 2001, the country’s national debt increased to $6 trillion, the U.S. Dollar lost 96 percent, and the purchasing power was four cents. In the next three years—2001 to 2004—the Federal Reserve indebted the country another trillion dollars and the US Dollar lost another 50 percent of it purchasing power as it dropped to only two percent of its 1913 value.
And, in 2004 alone, U.S. debt was increased almost another trillion dollars.
So what is its value today? Nobody knows. But this is low enough for most informed people around the world to be concerned about the fate of the U.S. paper dollar.
Crisis in confidence
Of course we all know that you can’t buy anything today at the same price as when we were kids. But such a rapid depreciation of our money has caused even the usual strand of economists to wonder about the future of the country’s money, and whether it is headed towards a monetary meltdown. Many other people are growing concerned about the country itself.
Enter the Liberty Dollar, a legal alternative that returns the ownership of the money to the people, from the Federal Reserve. Initially it was introduced on October 1, 1998, to increase awareness about the value of money by providing a competitive comparison to the debt based Federal Reserve Notes. As von NotHaus has explained, "The Liberty Dollar brings competition to our nation’s money much like FedEx brings competition to the U.S. Postal Service."
Regardless of how many think it unlikely that the behemoth Federal Reserve will ever change, von NotHaus insists that it will change when enough people simply stop using its fiat money.
Is doubling a scam?
But still the new 100 percent gold and silver currency is misunderstood. Some people have called the new doubling a scam. Von NotHaus counters, "The Crossover from the $10 Silver Base to the new $20 Silver base is nothing new. This feature was designed into the Liberty Dollar even before the currency was introduced to address the question ‘What happens to the Liberty Dollar when silver raises over $10?’
This is such a key point in understanding the currency that it has its own page at www.LibertyDollar.org.
The Liberty Dollar is not a scam. In fact, the Liberty Dollar is the first currency in 5,000 years of monetary history to be independently issued, warehoused, and audited from day one.
The problem is natural, free market adjustments inherent with commodity-based coinage. When the value of the commodity, plus minting and operational costs of the issuing organization exceed the face value of the coinage, there must be an adjustment. The U.S. government faced this problem in 1964 with silver and again in 1981 when the value of copper in one penny exceeded one cent.
To prevent "mining" banks for copper, the U.S. Mint began producing copper-plated pennies which made the adjustment by devaluing the commodity content of the coinage. NORFED chooses, instead, to maintain the integrity of the commodity content of its coinage by adjusting the face value according to a market-driven formula.
Von NotHaus is not alone in his enthusiasm for the gold and silver currency. To celebrate the 5th Anniversary of the Liberty Dollar he and sixteen contributing authors published a 500-page treatise, "The Liberty Dollar Solution," on their new currency.
David Morgan, the ‘Silver Guru’ who publishes "Silver Investor" at www.silver-investor.com was one of the contributors and agrees with von NotHaus. "That is why I became a Liberty Associate," Morgan remarked. "I like the Liberty Dollar because it makes economic sense and using it is the right action for our country. We need a currency backed by real substance, backed by gold and silver. Real value for real Americans."
Dr. Richard H. Timberlake, an octogenarian economist from the University of Chicago and a fellow contributor, has keenly followed the emerging Liberty Dollar for years. He said he has been fortunate to have von NotHaus’ over for numerous overnight stops at his estate outside of Athens, Georgia. And while he notes that his guest is often very outspoken, Timberlake defends the Liberty Dollar model as a functional substitute to the depreciating Federal Reserve Notes. Dr. Timberlake also chides the Federal Reserve for its policy, "Its money has no connection to gold; its activities are unconstrained by any law or principle; its policies are at the discretion of men (and women) who bear no responsibility for the results of their actions; the Fed is as unconstitutional as any institution can get."
Silver "scientist" Ted Butler also contributed to the "Solution." Butler’s research is highly regarded as one of the most enthusiastic and well-founded works available on silver.
To ascertain the enormous profit potential that silver holds for you personally and as a medium of exchange that could preempt the country’s looming monetary crisis, visit Butler’s archives at http://www.butlerresearch.com/archive_free.html.
Suspicious of change
NORFED remains on guard for old naysayers to resurface when the currency crosses over to the $20 Silver Base.
When the Liberty Dollar was introduced six years ago with silver at $5 doubters asked ‘why should we pay twice the price for silver?’
NORFED quickly replied that, not only is the Liberty Dollar not a substitute to investing in silver, it is not an investment at all. It is a currency. You can’t buy a loaf of bread for the 8 cents worth of wheat, nor can you get a currency at a bulk material cost.
Investors should seek out the cheapest way to invest in silver. But if you are interested in supporting the largest peacetime effort to solve the country’s monetary problem, while still protecting your money at a profit—then the Liberty Dollar can be used to attain that end.
Can 100,000 happy Liberty traders be wrong?
So if the Liberty Dollar is not an investment, why have over 100,000 concerned Americans been drawn to using almost $10 million of the new dollars in only six short years?
Jason Pratt, who operates NORFED’s Regional Currency Office (RCO) in Austin, Texas, explains why Liberty Dollars have done so well: "Simply because an increasing population is becoming informed and concerned about their money. From the government’s own statistics it is obvious that something must be done about the sudden depreciation of the country’s money and the consequences that are due to follow. People are waking up to the fact that the government cannot protect them because it’s the government’s money that is the problem. People are now protecting themselves as they must."
So while politicians pretend to understand the economic needs of Americans while driving their country deeper and deeper into debt, the Liberty Dollar provides a proven solution for almost everyone who has taken the time to investigate it.
"Simply by providing a free market currency that is 100 percent backed and redeemable in gold and silver from an independent warehouse that is independently audited, the Liberty Dollar has become the proven model currency that manifests what so many people have only theorized," von NotHaus said.
Von NotHaus cautions Americans to wake up to the free market forces mounting against an undisciplined monetary system that is being manipulated against them; he urges his fellow Americans to learn from the poor pre-Nazi Germans who saw nothing wrong with the rise of the police state or the need to protect their money.
History is clear on this point: Inflation is theft and destroys the basic fabric of life, liberty and our pursuit of happiness. Don’t let it impact you. When would you rather get your Liberty Dollars, before or after it doubles? Take action today to protect your money and lifestyle tomorrow. Get ready to double your money with the Liberty Dollar, which could happen in the next month.
We chose – therefore we are free.
For additional information on the Liberty Dollar please contact the National Fulfillment Office at (888) 421-6181, Truth@LibertyDollar.org or visit the Liberty Dollar online at www.LibertyDollar.org.
Note: The IO has been with NORFED for four years. We love it: No taxes, no fees, just two parties trading goods and services. If you decide to get involved and mention that you heard it here, it will even help The IO to stay in print.
The U.S. dollar has been the world’s reserve currency since WWII based upon its faith in the U.S. The world is losing faith in the U.S. and its dollar. What remains of the dollar’s value is tied to the world’s waning faith in its viability.
It’s time to take action on that knowledge. (DWH)
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