Sunday, September 17, 2006


Funny Money

From the unbelievable files - Part 1. Canadian Tire take note.

The United States government recently 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, Indiana.-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.

Over sixty communities in the United States are currently issuing their own local currencies, creating self-reliance and freedom from the government's unprotected financial system. Ithaca NY, Tucson AZ and Berkeley CA are just some of the places that have their own currency. Only NORFED’s currency, however, is redeemable by the bearer on demand for the amount of silver stated on the certificate. It should be stated that most staff at these locations are unknowingly accepting the funny money.

The Silver Certificates fit in the cash register and function in the marketplace on a dollar-to-dollar basis with Federal Reserve Notes. Success in other localities has shown that local businesses will attract repeat and loyal customers who prefer to use a value-based currency.

NORFED gets Liberty Dollars into distribution through Redemption Centers (RCs). RCs may be your neighbour next door, the merchant at the shopping center, shopkeepers, factory and construction workers, managers, office workers, or your child's schoolteacher. RCs are designed to make money by exchanging fiat government money for gold and silver money.

It only takes $250 to become a Redemption Center. Out of the $250, a new RC gets back $100 Liberty Dollars, a sponsor gets $100 in FRNs for sponsoring a new RC and NORFED retains $50 for administration fees. A new RC is now upside-down for $150, but since an individual gets $100 for every RC they sponsor, sponsoring two friends and then you are up $50. Individuals profit by spreading the word about currency! Sponsor more people, make more money. The Amway of currency.

Redemption Centers can get 100 Silver Liberty’s for only $7.50 each. Every time an individual uses or exchanges a Silver Liberty at its Face Value of $10.00, they reclaim that discount of $2.50 and make 25% on the money. A shopkeeper or merchant can simply put some Silver Liberty’s in a cash register and use them in place of those dreaded $10 Federal Reserve Notes or offer them as change.

By creating a better currency than the Federal Reserve, NORFED is offering people a chance to show their preference for a currency that has independent legitimate value. The Liberty Dollar gives people a way to say they want superior money that is of, by and for the people. Money is a powerful force, and should always be owned by the people. That’s why NORFED’s slogan is “Help return America to value - one Liberty Dollar at a time.”

NORFED, is undeterred, it says will challenge the government, arguing it has never claimed Liberty Dollars were official money and that it has a right to offer an alternative.

"The designs and verbiage ... are original and are not copies of any U.S. Mint currency," NORFED Executive Director Michael Johnson said in a statement.

What is unclear is how many people or businesses are unknowingly holding Liberty Dollars, which cannot be exchanged for real money at banks. In a recent case in Buffalo, a man and his son are set to go on trial next month after they knowingly tried to buy beer at a Buffalo Sabres hockey game with Liberty Dollars.

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