From the June 2003 Idaho Observer:

The Liberty Dollar: Free Market Currency

A metal-backed medium of exchange owned by those who use it

As stated previously, money scholars seldom agree on how monetary policy should be set to provide a stable economic environment and minimize abuse. They do, however, agree on two key issues: The Federal Reserve Bank System has destroyed America and it's collection agency, the IRS, has bankrupted her people. At this time, there is a working alternative: Gold and silver-backed Liberty Dollars.

by Bernard von Nothaus

Throughout history precious metals have been controlled by the powers-to-be, the royalty or the government regardless of its name. Hence the saying, “He who owns the gold, makes the rules.” So while the government controlled the gold and silver prices it was a no-brainer to issue a currency against the metals.

Since the end of World War II, gold has led the way for the world's first free market in metals. Through a series of government steps, market demands and action by dedicated Americans like Jim Blanchard and his NCMR, the world now enjoys the freest precious metals market in history.

Unfortunately the zero-backed Federal Reserve Notes (FRNs) and its accompanying 'dirty float' against the other fiat currencies have created a global financial crisis. At a time when everyone is wondering what is wrong, it seems appropriate to focus on the economy's most basic unit, its currency. The simple fact is that the FRN has never had any competition since 1913 so it has been virtually impossible to detect its inferiority and the degree of damage it has done to what would appear to be a healthy economy.

The Liberty Dollar was designed to work in union with free market commodities, especially precious metals. In addition to being a legal instrument with ultra high security features, the Liberty Dollar was mandated: (1) to be backed by a free market commodity of universal appeal, (2) to function in a direct relationship with that commodity and (3) to be fully redeemable in that commodity.

The Liberty Dollar is the first example of a free market currency. And while it meets the original mandates for being market-sensitive, it also functions in parallel with the current FRNs. Furthermore the Liberty Dollar returns the ownership of the currency to the people because a warehouse receipt is your proof of ownership. That means, you (the bearer) own the silver. You own the currency. When the people own the money -- the people control the government. When the government owns the money -- the government controls the people.

Today's headlines catch our attention with such terms as, “ Global economic crisis, turbulent world financial markets, wild, frenzy trading, hyper, manic-depressive reactions, panic moves, markets gyrating wildly” and “record volatility.”

One may wish to consider that the solution might be as simple as: Return to value. Now might be the best time to evolve the economy's most basic unit, its currency, back to a value-backed system.

Inflation is theft

Inflation is a clear and present danger. It is theft by the government to make paupers of everyone who uses their money so that they can control us while they live like fat cats from the sweat of our brow. And then retire to a lifestyle that many of us were never able to achieve because we were ground between the twin evils of inflation and the unconstitutional “income” tax.

So, while the government propaganda machine tells us that all is fine, an increasing number of people are quietly returning their money to value. Without fanfare, they are learning about the true nature of money and understanding that the safest way to preserve their money from inflation is to privatize it in gold, silver, or the new Liberty Dollar before the whole system collapses.

Will it happen this year? I hope not. Will it happen in our lifetime? More than likely. It will happen after the current totalitarian government has exhausted every avenue of suppression - and destroyed as many economies by fabricated monetary crises as possible.

Gold and silver

As we have seen - throughout history gold and silver have always been the money of last resort, a symbol of wealth, and used to venerate God. Gold is unquestionably the ideal money because it can not be destroyed and has a much higher value-to-weight ratio than silver. But is gold the better of the two metals right now? No. Consider these three key points regarding silver:

#1: On an average, there is a new use for silver patented every day - over 350 new uses every year. More demand - means higher prices. In comparison, there are very few new uses patented for gold.

#2: During the big run up in precious metals in 1979/80, gold went from $400/ounce to $850/ounce. It doubled in value. If you had your money in gold, it doubled. In the same time frame, silver, “the poor man's gold,” went from $5/ounce to $50/ounce. Do you need a calculator? Of course not. Silver went up 10 times! So, which metal would you have preferred then? More importantly, which metal should you have your money in now? I'll give you a hint. It is NOT government paper money!

***

Note: The Idaho Observer has been trading in Liberty Currency for two years. All goods and services provided by The Idaho Observer can be purchased with Liberty Dollars. We have found that trading in real money with like-minded people is fun and rewarding on many levels.

1. Federal Reserve Accounting Unit Denominations (FRAUDs) are borrowed into circulation and, therefore, represent debt. By using them as a medium of exchange, we are literally passing debt, not value, back and forth between one another. With Liberty Currency, someone “owns” the money, then trades that ownership for a good or service. Where all parties lose in transactions using FRAUDs, they benefit from transactions using Liberty Dollars.

2. The most corrupt institution ever formed is the Federal Reserve Bank system. It is using it's FRAUDs to systematically destroy America and bankrupt her people. Using FRAUDs makes us an accessory to treason; every time you complete a transaction with Liberty Dollars, you are helping to save your country.

3. By trading in Liberty Dollars, we are conducting business with like-minded people and it's extremely rewarding to support businesses owned by real Americans. (DWH)