new "Liberty Dollar" threatens US paper money

[Charles Anthony]

Invest in NORFED now! If (when?) the US dollar crashes, what will Americans do with worthless paper?

Feds lower boom on alternative money

September 15th, 2006

by Barbara Hagenbaugh, USA TODAY

WASHINGTON — The government Thursday warned consumers and businesses that it is illegal to use alternative money known as "Liberty Dollar" coins, which organizers promote as a competitor to the almighty dollar.

"We don't want consumers to be fooled," U.S. Mint spokeswoman Becky Bailey says, noting U.S. Attorneys offices across the USA have noticed a marked increase in inquiries about the coins.

The coins' producers vowed to fight the government's decision.

Evansville, Ind.-based National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code, otherwise known as NORFED, has been making the Liberty Dollar coins for eight years and claims $20 million is in circulation. The group says the money, unlike official U.S. cash, has a hedge against inflation because it is made almost entirely of silver and is backed by stocks of silver and gold in a vault in Idaho.

http://www.usatoday.com/money/2006-09-14-liberty-usat_x.htm

Sure, merchants may mistakenly accept the piece of silver (real silver!) thinking it is a US Mint coin (worthless metal!) but hey! they could also get a bounced cheque, too. When the dust clears, I would rather be left standing with a valuable metal in my pocket.

Anything wrong with doing trade with Canadian Tire money outside of Canadian Tire?

Eliminating the state's ability to monopolize the issuance of currency is a step towards commercial freedom and a step away from state control.

[theloniusfleabag]

Dear Charles Anthony,

Eliminating the state's ability to monopolize the issuance of currency is a step towards commercial freedom and a step away from state control.

Well, if the 'chocolate loonie' becomes worth $1, could you use it as currency? That becomes basically the barter system. I don't see anything wrong with individuals bartering amongst themselves, but gov't issued scrip means (a reasonable amount of) stability. There are too many things in the anarchist system that would lead to total chaos, and I think that this is one of them.

[Riverwind]

Anything wrong with doing trade with Canadian Tire money outside of Canadian Tire?

Absolutely nothing because no one would confuse Canadian Tire money with real money.

Eliminating the state's ability to monopolize the issuance of currency is a step towards commercial freedom and a step away from state control.

I believe the issue here is the potential for confusion between the 'Liberty' dollar and real dollars. The gov't would have no problem with these coins they called the coin the Liberty 'Argent' and stamped 20 'argents' on the back instead of 20 dollars.

[Charles Anthony]

Well, if the 'chocolate loonie' becomes worth $1, could you use it as currency?

Yes! but only until its expiry date or until it melts.

That is why precious metals are used as currency: they do not degrade readily.

That becomes basically the barter system. I don't see anything wrong with individuals bartering amongst themselves,

No, it is not barter. It is more efficient than barter because it allows you to avoid stock-piling things you will need in the future. I do not see anything wrong with barter either.

but gov't issued scrip means (a reasonable amount of) stability.

Yeah, until the government abuses the public's trust. How long do you think the US government has before that happens?

There are too many things in the anarchist system that would lead to total chaos, and I think that this is one of them.

When the American paper-faith crashes, this "anarchist system" may lay the foundation for its stability if not become a saving grace. What exactly do you fear?

Absolutely nothing because no one would confuse Canadian Tire money with real money.

If Canadian Tire money rivalled legal tender as a counter-currency, I think we would see our government shutting it down. Trading in a counter-currency is a way to avoid the tax-man.

I believe the issue here is the potential for confusion between the 'Liberty' dollar and real dollars. The gov't would have no problem with these coins they called the coin the Liberty 'Argent' and stamped 20 'argents' on the back instead of 20 dollars.

It is more than that. The US government can not monkey with its supply.