Thoughts On The Liberty Dollar Debacle

By Brandon Smith

I was in the midst of the Save America Convention in Tampa, Florida when I heard, first, that Libya was under bombardment by the UN (led by U.S. forces), and, that Bernard von NotHaus of Liberty Dollar had been convicted of “counterfeiting”. It was a stressful day, to say the least. For those not familiar with the Liberty Dollar incident, In November of 2007, federal officials raided the group’s headquarters nestled in a strip mall and seized all documents and the gold and silver that backed up the paper certificates and digital currency being distributed through the Liberty Services website. The Justice Department asserted that Von NotHaus was placing gold and silver coins, along with precious metals currency, into circulation with the purpose of mixing them “into the current money of the United States.”

To be clear, NotHaus made some serious mistakes, including pressing his coins to look semi-similar to standard federal currency, and also using language which could be interpreted to insinuate that his currency was “legal tender”. There are many barter networks in the U.S. that use gold and silver that do not have these kinds of problems with the government simply because they are careful not to make the same blunders.

However, it wasn’t the conviction itself that struck me, so much as the language of the prosecutor, U.S. Attorney Anne Tompkins, in her post trial statement. Let me reprint my favorite parts for you here:

“Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,”

“While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country,”

“We are determined to meet these threats through infiltration, disruption and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.”

Some in the Liberty Movement have interpreted this statement to be a warning to all of us that the Federal Government is declaring open season on alternative currencies. Others see it as a preliminary move towards the confiscation of all privately owned gold and silver. And yet others see the statement as dire prophecy, now cowering behind their 1040’s at the thought of the smallest barter transactions, as if the IRS is the all seeing eye of Sauron waiting to catch them in the act of trading apples for oranges and sending agents to crush them with their slimy orc-like fists of doom.

Perhaps I am the only one, but in contrast, I see the prosecutor’s statement as an expression of blatant fear. I’ll explain, but first, let’s dissect the nonsensical and irrational idiocy behind the saber rattling of Anne Tompkins.

First, U.S. prosecutors prevailed over NotHaus on a conviction of COUNTERFEITING! Unless I am confused, and he was using his silver currency to fashion a McGuyver-esque thermonuclear sound money bomb, it is more than just a stretch to try to equate his actions with domestic terrorism. In fact, the post trial statements of Tompkins are so insane it makes one question her level of paranoia, and perhaps her prescription drug habits. After finding no obvious hint of crazy eyed drool mouth in her photographs, I realized that perhaps she was not a zealot, but simply a messenger.

My feeling (and this is only an intuitive notion) is that Tompkins had little to do with the writing of those statements, or had much “coaching” from the Department of Homeland Security, which has been expanding its absurd definition of terrorism to include almost anyone who does not agree with the philosophies of establishment elites and corporate global banks. Even returning military veterans of Iraq and Afghanistan have been listed as possible domestic terrorist threats. Why not proponents of gold and silver?

What we see here is the not so subtle conditioning of average Americans towards categorizing certain innocuous behaviors as being related to possible criminal or terrorist motives. Owning guns is anti-social, and you are a naughty bad person for liking big boom boom stick. What’s that? A pocket Constitution!? Didn’t McVeigh or one of the 9/11 hijackers carry around something like that? You have a survival garden? Hmm, that sounds fishy. I better call the FDA and make sure everything you’re doing is on the up and up. You want to trade gold and silver? Privately?! That’s obviously “black market” barter, and you are the reason the economy is so unpleasant. I don’t get as many food stamps and free big brother goodies as I used to, and I blame you and your dastardly sense of self sufficiency! The IRS should have your head! And so it goes…

So, I promote private barter networking and precious metals to safeguard communities from impending inflationary crisis, and am therefore a “non-violent domestic terrorist which represents a clear and present danger to the economic stability of this country”? How does Tompkins or anyone else, with a straight face, declare alternative markets and sound money as a danger to economic stability, when the U.S. economy has already been annihilated by the derivatives bubble conjured by international banks and the private Federal Reserve? What about the constant fiat injections by our central bank which have created an atmosphere prime for dollar devaluation and hyperinflation? Why in the hell hasn’t the U.S. Attorneys Office or Anne Tompkins placed the terrorist label squarely on the doorstep of JP Morgan, Goldman Sachs, HSBC, or the Fed itself? I mean, if we are going to start equating the destabilization of the economy with white Al-Qaeda, then let’s be fair at least. Global banks have had far more to do with our financial downfall than gold or silver trade ever will.

What about the follow up chest beating proclamations of “infiltration and disruption” of any organization which seeks to “challenge the legitimacy of our democratic form of government”?

Wow. Isn’t that comment loaded with bile and stupidity. To begin with, if anyone, including Tompkins, can show me how our current form of government is legitimately “democratic” while both major parties are headed by globalists and corporatists who promote the same exact ideology and support the same exact legislation, while refusing to represent even a minority of Americans beyond the elite, then I welcome them to try. (By the way, Tompkins, I know they didn’t teach you this in public school, and probably not in college either, but America was founded as a REPUBLIC, not a democracy.)

If the IRS or anyone else wants to “infiltrate” barter markets or gold and silver organizations and attempt to record every chicken egg or gallon of milk traded, then I welcome them to try. Please, expend all your precious energies in a futile attempt to chill barter economies or sound money movements. We would like nothing better. Why? Because you cannot stop barter networks from forming. They are inevitable. Every culture in history which has seen a severe economic implosion has reverted to barter, trade, gold, and silver to counter the resulting poverty and lack of mainstream commerce. The need for survival will far outweigh the populace’s fear of government reprisal. That is simply the nature of man. The only difference in respect to the Liberty Movement is that we are working to preempt collapse with supporting networks of commodity trade and community barter. We are not working to “undermine” the current economy, we are simply preparing for its eventual fall, and allowing for the safety of cities and states across the country. Why is this considered devious behavior? Why would the government react with such vitriol, not towards Liberty Dollar, but to the very concept of alternative currencies and economies? Because it is something they cannot control…

Ultimately, what I see hidden in Tompkins statements are the wringing hands of bureaucracy, sweaty and shaking with a fear of the unknown. When people are desperate, and dominated by emotions, they become predictable, and this is exactly the kind of mindset governments like to insert into the collective unconscious. There are only two paths for any society in the midst of a full spectrum crisis; beg for more government and more dependency, even if that government created the crisis in the first place, or, move away from the ailing government, and towards independence. Today, in the face of possibly the greatest economic catastrophe in the history of the world, Americans are beginning to show an aptitude for independence. We are becoming unpredictable, and this frightens government. If our cities and states become fully sovereign, with our own insulated commerce, our own industries, our own food sources, our own defense, and, god forbid, our own currency, then we may then demand a government which actually represents us, and our Constitutional foundations, instead of global banks, for a change. They are moving to call us terrorists, because they truly are terrified of alternative market systems. They have tipped their hand. Which means, we must keep doing exactly what we are already doing.

We do not live in a country built upon the rule of law anymore. Corrupt leaders have no concern for law as a means of balance, only as a means of dominance. Laws therefore change upon the whims of tyrants to fit whatever goals they happen to hold at the edge of the moment. Unjust laws do not deserve the respect or the compliance of the masses. At bottom, we are human beings. Truth and conscience take precedence over all things. If a law does not follow the inherent auspices of freedom and integrity, if it does not serve the true best interests of the people, then it should not be followed. Period. This goes for any law, current or pending, which would force Americans to abandon their ability to personally protect themselves, their families, and their communities, from financial disaster. I leave you with my final statement given at the Save America Convention to drive the point home:

“Today, we stand at a bottleneck in the flow of history; a nexus of events which challenge our values, our resolve, and our better natures. Our deepest social and political beliefs will be called into question, our sacred principles of individuality and freedom will face an onslaught of malicious legislation and misguided cultural doubt. These principles always do in the face of global crisis.

To waver is not an option. To retreat is unimaginable. To compromise our core, in this kind of conflict, is to welcome defeat. At bottom, we live in an age of wills that only the strongest of hearts can endure.

As overwhelming as these kinds of struggle can be, as frightening as this kind of responsibility sounds, these are also days of truth and providence. Opportunities to right so many past wrongs in the single breath of an era are rare and precious. Men dream of living in the midst of such moments.

As a people, Americans have been challenged. The test is not only one of might, but one of honor and benevolence. How far are we willing to go to not only save ourselves, but to save each other? What are we really fighting for? Personal survival? The temporary stability and solace of the present? Or something more?

Do we intend to hide away, to merely eek out an existence at the dawn of economic and political catastrophe, or to stand steel faced and immovable in the very wake of the storm? To return to our foundations and hold fast. To not only subsist, but to prosper. To leave for the future something truly better than what we now have.

The most powerful position of defiance we can commit to as a movement is to teach average Americans to stand on their own. To become the purveyors of their own destinies. For me, what we call the Liberty Movement is not only a political entity but a vital philosophy driven by decentralized action and intensified by the growing uniqueness of its participants. It is the anti-thesis of globalization, which aspires only to diminish and dominate the individual, and replace sovereign thought with weak minds and absolute tyranny.

Ultimately, the greatest leaders do not actually seek to lead, but to teach. They do not seek power for themselves; they seek to empower the common man. This is an act of real survival, for a country of steadfast individuals is unconquerable. It is a place without fear.”

 

You can contact Brandon Smith at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

If you would like to contribute to the Alternative Market Project, or our efforts to start trade and skills workshops across the country, please visit our donate page here:   http://neithercorp.us/npress/donate/

 

 

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0
New definition of 'terrorist'...
written by Josh , March 24, 2011

"Any noun."
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Starship
...
written by Starship , March 25, 2011

awesome, I was hoping somebody could give me perspective on the Liberty Dollar issue. Just from what I saw when I looked up the Liberty Dollar, it certainly did look like NotHaus's game plan was doomed, and it look like he was taking some rediculous actions, but I have no idea how much of what I read was baised or downright false.

I wish I could have been at the convention but a trip from CA to Florida was not in my budget. Is there a site where I can see your whole speech and see more of what happened at the convention?

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DocJ
Hear! Hear!
written by DocJ , March 25, 2011

Bravo, Brandon. Well said, as always.
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ogden
New definition of "terrorist"
written by ogden , March 25, 2011

"Any noun."
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0
Here is an alternative, optomistic take
written by Porter , March 25, 2011

Even though I never hear it stated so plainly, the US is clearly in the process of going back on a gold and silver standard.

After all, what does it mean that the Treasury is exchanging gold and silver Eagles, denominated as US Dollars, for Federal Reserve Notes? Aren't they already in the process of putting the new currency into circulation?

The recent persecution of the Liberty Dollar guy for counterfeiting US currency just underlines the fact.


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LIBERTY DOLLAR LIVES
written by David Gillie , March 25, 2011

I STILL trade with Liberty Dollars! buy & sell ETC
AND with the many MANY alternatives replacing it, that can be seen at www.aocsmint.com

Come and get us,
I AM SPARTACUS and JOHN GALT
and there are many more of us,
US with spines as the sheep sleep & hide

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Scout
Brandon Smith : Thomas Paine
written by Scout , March 25, 2011

Equals in the art of the written word to stir the soul!

"These are the times that try men's souls..."

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Revolutionist
Counterfeit?
written by Revolutionist , March 25, 2011

counterfeit, vb. (l4c) To unlawfully forge, copy, or
imitate an item, esp. money or a negotiable instrument
(such as a security or promissory note) or other
officially issued item of value (such as a postage stamp
or a food stamp), or to possess such an item without
authorization and with the intent to deceive or defraud
by presenting the item as genuine.• Counterfeiting
includes producing or selling an item that displays a reproduction of a genuine trademark, usu. to deceive
buyers into thinking they are purchasing genuine merchandise.
See 18 USCA §§ 470 et seq. [Cases: Counterfeiting
Trademarks ~1432.] - counterfeiting,
n. - counterfeit, n. - counterfeit, adj.

To me it does not sound like he intended it to look like a specific U.S. coin, and had no intent of presenting it as genuine, and therefor should not have been convicted of counterfeit. I personally would not have used some of the words on it that he did, but I still think the conviction was unreasonable.

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David G.
Great article, and Congrats on Being Published on ZH!
written by David G. , March 25, 2011

Excellent post, Brandon. Self-reliance is truly the most pure and potent resistance. Here's to honest living and honest money!
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0
Excellent Article!
written by PhiCrappaZappa , March 26, 2011

The FBI confiscated all of the stored gold, silver, etc.. Von NotHaus would have been found guilty of raping nuns if necessary. Guilty means they don't have to give it back.
Next....

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Revolution
written by RedFox , March 26, 2011

Yes, Brandon did well with his arguments here. I think the USG is fearful that coining alternative money is just another step to bringing revolution to America. If this was allowed then what would be next? That is the thoughts on the USG's mind.
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comical wordsmith lawlessyer charges
written by richardl , March 26, 2011

The Federal Reserve and it's supporters since 1913 are the Oath Mocking Lawyers, such as the above! The "legitimate currency" and a man following his Constitutional mandate "only gold and silver", no" Bills of Credit" has been unconstitutionally "indicted?" by an admitted "terrorist" from the ruling federal reserve "USURPERS(since 1913)" saimese-twin parties; commidemocrat-republicomms , fed boyz-lap-dogs! Of course Ron Paul is trying to expose the fed-boyz's theft of all of the GOLD from Fort Knox under our 1913-2011 regimes! Publius II
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the real domestic terrorist is
written by Janet N. , March 26, 2011

not the guy who is following some of the earliest laws ithe land such as the 1795 coinage act and believes in non-debt based currency. but U.S. Attorney Anne Tompkins. She is a prime example of how blatantly fascist our country has become. She has no moral conviction for what she does, and is no better than a bum who will go rip off socks for the next piece of bread to feed his stomach. The patriot act created hitlers gestopo ie: homeland security. fascism is not cool because people like U.S. Attorney Anne Tompkins don't care who they hurt, even if its an honest citizen who isn't a real criminal.
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Tratiors to the USA
written by Fuck you all , March 26, 2011

You all are tratiors, domestic terrorist at the least.
May you all be tracked down, tried, and executed .

So say I .

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Sabre Rattling
written by Dan Maloney , March 26, 2011

It appears our elected officials are threatening to infiltrate, disrupt and dismantle themselves. This could be interesting to watch.
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PDXBishop
Excellent post
written by PDXBishop , March 26, 2011

From my understanding of the case, the entire prosecution was devoted to NORFED and using coins that looked like US money, that is passing them off as current money. This is not the same as using a later issue Liberty Dollar that says Private Volunteer Barter Currency PVBC. The original silver pieces put out by NORFED, I have some, don't say PVBC it was only after Bernard became aware of the FBI investigation that he closed NORFED and opened the most recent version of the LD and put that on the coins. Further in the investigation they had him in a store telling the checkout girl that these were the new coins from the mint or some such stupid language. He was not saying this is a local barter currency issued by some private folks. So we must take into account that the investigation and the prosecution were based on events and the company that was in operation many years ago, 1998-2003 time frame. To say that the US Att. is after all forms of alternative currency is ridiculous and Heather, who online is saying the LDs are a barter currency yada yada....is not taking into consideration the time frame and the original coins, not the later versions. It's a confusing time and I don't know anyone who expected Bernard to be 'vindicated', especially with the federal version of a public defender. As Brandon so clearly articulates above, our shock is not so much from the case but the carefully scripted statement made in the FBI press release calling Bernard a domestic terrorist. That is amazing, but in truth as B states, it just shows the gov is scared, that is 100% fear. Very good article, I wish more people had such a clear understanding as you.
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Revolutionist
Maybe guilty, but not of counterfeit!
written by Revolutionist , March 26, 2011

I have not heard what he specifically said to the cashier, so I cannot say either way, but what I do know is that unless he specifically said, "These are U.S. mint legal tender," he cannot be considered guilty. Even if he did say that, he cannot be charged with counterfeit, because he was not posing them as any type of coin that is currently produced by the mint, but rather as a new type of coin. There are other crimes that he may be reasonably charged for, if he did in fact make previously mentioned statements, but not counterfeit, since it does not fall under the correct definition.
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Von NotHaus' coins are tradeable commodities
written by Tom Hough , March 27, 2011

The reason this was not economic terrorism is because the value of the coin is intrinsic where as with junk coins the value is dependent on the faith and credit of the government. The government monopoly on coining should be restricted to token coins. Gold and silver coins should be redefined as tradeable commodities.
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...
written by Dean Carder , March 28, 2011

Fear and greed ran this conviction. Bernard will be fined 250,000 for one conviction and another 250,000 for the second. Plus the Feds pplan on confiscating all fo the gold and silver reserves NOFED and Bernard had, to the tune of 6 million dollars.
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Republic not a democracy!
written by American Patriot , March 28, 2011

I am so glad to finally hear somebody say the word Republic as I have been trying to tell people it is not a democracy and I repeat not a Democracy it is a Republic, Republic, Republic damn it! People need to understand what a Republic is and what a Republic means. Please look in you dictionary so you can better understand the difference if you dont already know and a copy of the Constitution after that and then decide what kind of government we should have and it is our government. We keep hearing about all the middle east wars breaking out and how they would so love a democracy hmmmm!
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...
written by michael g. , March 29, 2011

Great job Mr. Smith, i am pleased to know that your message is spreading beyond the limits of the internet network, which in turn amplifies the very network itself into something more. God bless
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Thoughts about 'Money' versus gold and silver Coin
written by Robin W. Tong , March 31, 2011

Brandon,

Excellent article.

I written a counter article exploring a few thoughts about the differences between ‘Money’ and gold and silver coin. Due to its length, I’ve posted it in the comments section on the Oath Keepers site where this article was reprinted. http://oathkeepers.org/oath/20...r-debacle/

Excepting a minority of states and communities that have retained a proper understanding of gold and silver coin and ‘Money’ versus Fiat Currency, given that the whole of our society has for generations known nothing but Federal Reserve Notes as Legal Tender, our jurisprudence has been swayed to convict those engaging in Constitutional Tender and refusing to participate in the corruptions of Fiat Currencies.

You are astute and most certainly correct in your assessment of “the wringing hands of bureaucracy, sweaty and shaking with a fear of the unknown” in their blatant attempt to corrupt and criminalize the constitutional tender of gold and silver coin as domestic terrorism. Our Union, the States, and the People can not be Sovereign and Free nor can they protect Wealth and Liberty unless we abandon the Fiat Currency and the private corporate interest that have enslaved our governance and our society.

It was a privilege to have the opportunity to meet you during the Save America Convention.

United in Liberty,
Robin W. Tong

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End the Fed and bring back B.V.N.
written by Sean in San Diego , April 22, 2011

So did FBI finally arrest Ben Bernanke and shut down the Fed Reserve for undermining the once legitimate currency of this country...
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