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Thursday, August 12, 2010

Liberty Dollar Website Shut Down

The Liberty Dollar website was shut down. Bernard von Nothaus was the owner of the Liberty Dollar and Liberty Dollar website. He was arrested/kidnapped/tortured. He is being prosecuted for currency fraud.

As terms of his bail, he was ordered to cease operating the Liberty Dollar and not discuss the trial. A judge ruled that he violated his bail conditions. I didn't see a description of which specific bail condition was violated. Nothaus was kidnapped/arrested/tortured, and State thugs seized his website.

This violates the "no excessive bail" clause of the Constitution. Originally, "bail" meant that you place a monetary deposit so you appear at trial. Now, "bail" also includes other restrictions. Those additional restrictions are immoral/Unconstitutional. Unfortunately, that's not the way State thugs think.

Bernard von Nothaus was deprived of his property, even though he was not convicted of a crime (yet). He was barred from operating his business until his trial is over (if acquitted). State thugs seized his website. State thugs seized the gold and silver that backed paper/electronic Liberty Dollars.

This is an aspect of State law I never understood. If accused of a crime, you're barred from publicly discussing it until the trial is over. That is unfair when the mainstream media loudly pronounces your guilt. The mainstream media isn't covering the Liberty Dollar at all.

Bernard von Nothaus is the victim of State economic aggression. However, I don't like the Liberty Dollar. The Liberty Dollar is inferior to using generic silver rounds and valuing them based on the spot price of silver.

State thugs print "$100" on $0.03 of paper. That works for them, because there's a huge criminal conspiracy backing the money. The difference of $99.97 is seignorage profit for the financial industry and Federal government.

The Liberty Dollar printed "$20" on (at the time) $10 of silver. The difference of $10 is seignorage profit for the Liberty Dollar business.

Bernard von Nothaus says "With Federal Reserve Notes, if there's 200% inflation, your $100 is only worth $33.33. With the Liberty Dollar, if there's 200% inflation, your '$20' one ounce silver Liberty Dollar is now worth $30. Therefore, the Liberty Dollar is better than Federal Reserve Notes."

After the price of silver goes over $20/oz, the "$20" one ounce Liberty Dollar becomes a "$50" Liberty Dollar. However, you must pay a reminting fee if you own any Liberty Dollars.

Instead of buying one "$20" Liberty Dollar for $20(FRN), you should have bought two 1 ounce silver rounds. Then, after 200% inflation, you would have 2 ounces of silver (worth $60) instead of 1 Libery Dollar (worth $30 melt value or $50 face amount).

The Liberty Dollar is inferior to using generic silver rounds. It is loss-oriented thinking, when your alternate monetary system is based on slave points. Printing "$20" on your alternate money is wrong, because that's still referring to State money.

Instead of thinking "This costs $20!", a free person thinks "This costs one ounce of silver!" It's very easy to convert from FRN-denominated prices to real money. Just divide by the spot price.

If my only monetary choices were FRNs and Liberty Dollars, I would prefer Liberty Dollars. If generic silver/gold rounds are also a choice, I'd prefer to use metal coins valued at the spot price.

The Liberty Dollar was set up as a multi-level marketing scam. The silver costs $10/oz. The Liberty Dollars were sold to agents for $18/oz. The agents sold them to the general public for $20/oz. However, that is not illegal. That isn't what Nothaus is formally charged with.

Bernard von Nothaus made a tactical mistake, when choosing the design for the Liberty Dollar. He made it sort of look like State-issued money. He minted "$20" on the coin. He minted "Trust in God", similar to "In God We Trust".

If Bernard von Nothaus had minted "THIS IS NOT LEGAL TENDER!" on the Liberty Dollar, then he might not have been prosecuted. However, State thugs always find something else. If you threaten the State extortion racket, then you must be punished.

Bernard von Nothaus is charged with minting coins that look like State-issued money. Some stupid people confused Liberty Dollars for State-issued money. This led to confusion, when some stupid people tried depositing them in a State bank.

Even if Bernard von Nothaus had picked a less confusing Liberty Dollar design, he might still be prosecuted. It is a high priority for State thugs to kidnap and torture people who threaten their extortion scam.

Most high-profile critics of the Federal Reserve and IRS wind up in jail. That doesn't prove they're wrong; that proves the efficiency of the State extortion racket and "justice" racket. Once you realize that the State is a scam, you have a patriotic obligation to avoid paying taxes and to stop supporting organized crime.

The Liberty Dollar is immoral, because Nothaus stamped "$20" on $10 of silver. Only a fool would prefer Liberty Dollars to generic rounds. Only a fool would prefer FRNs to real money, although State violence forces the slaves to use paper money.

There was an amusing quote on the Liberty Dollar ex-website. Bernard von Nothaus complained that his State-appointed defense lawyer was really an assistant prosecutor. His lawyer was trying to coerce him into accepting a plea bargain, rather than going to trial and getting convicted. The lawyer thinks "Bernard von Nothaus is going to be convicted. I have a professional obligation to talk him into accepting a plea bargain, so he doesn't go to jail for as long."

This is a problem with State-licensed lawyers. "Negotiate a favorable plea bargain!" is a higher priority that getting the client acquitted. A State-appointed attorney will be barred from arguing "The Federal Reserve is Unconstitutional".

The Liberty Dollar is immoral, but should not be illegal. A corrupt State judge disagrees. I predict that Bernard von Nothaus will be convicted in a sham trial. That doesn't invalidate his criticism of the Federal Reserve.


Anonymous said...

The legal system is scam to the extent that regardless of the outcome, the lawyers always get paid very high fees. It is more profitable to be a lawyer that to produce real, valuable goods.

Witness small 2 man companies that get set up. They might register a few patents but PRODUCE NOTHING TANGIBLE. They then go out suing companies producing real goods. Lawyers are TOO STUPID (or pretend of be stupid) to see the OBVIOUS SCAM. Companies that produce real goods used by thousands to millions of people are successfully sued by 2 man companies DOING NOTHING REAL OTHER THAN BEING TROLLS EXPLOITING THE LEGAL SYSTEM.

If you run a business for a number of years, the clowns will come knocking on your door with a bogus lawsuit. Maybe you used the colour red and the clowns say it is copyrighted. Well their bogus claims will be a bit more sophisticated than that, but no much.

Your lawyer will not help you. He will scheme with the other side and try to work out how much both lawyers can extract from both sides before the case collapses into nothing.

Note the first thing your clown lawyer will ask you is how much money you have. If you tell him you have nothing, the case will go away. If you tell him how much savings you have and both lawyers want your money, suddenly a bogus case will start flying again. Your lawyer will immediately phone the other side with details of how much money you have.


These people are not honest.

Scott said...

Yeah, the Liberty dollar was honest in advertising "not quite as big a scam as government money" but it didn't made much sense to me compared to attempting to take delivery on real coins. Because he was honest in representation and delivered what you bought there was no fraud and his arrest is a scam.

Speaking of which, under Obamacare you now have to register all gold purchases and sales of half an ounce or more per year with the feds using 1099 forms. Hm, can't see how that could possibly be abused, just a simple little list of all the houses with physical gold and how much they have? It's all really quite innocent.

FSK said...

I already wrote about 1099 reporting and healthcare reform.

The evil is not just "State thugs keep track of whoever owns physical gold." The evil also is "Sellers must pay capital gains taxes."

How do you know that the IRS won't leak a list of who owns physical gold, so that someone can rob them?

Scott said...

That's a good point. After all it *is* a public record! "Why shouldn't it be released? The government must have complete transparency..." of the private records it has coerced under force of law.

There have been a couple states that have published lists of the names and addresses of everyone in the state with a concealed carry permit. After this was done, there was a spike in robberies of gun owner's houses in which only the guns were stolen. It's reasonable to assume the guns were stolen with the intent to use them to commit other crimes.

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