US Mint Claims NORFED Are Federal Criminals

Discussion in 'Politics & Religion' started by Rick_Michael, Sep 16, 2006.

  1. #1
    http://intlib.blogspot.com/2006/09/us-mint-v-norfed-legal-case.html


    In a stunning development in the private currency movement, the US Mint today announced that, along with clarifications about the private collectible medallions of other private mints not being US Mint issued, was the headline story that the Mint claims the Justice Department has declared that the National Organization for Repeal of the FEDeral Reserve Act (NORFED), its widely known Liberty Dollars, and anyone who uses Liberty Dollars in commercial transactions, is in violation of federal law.

    Despite comments over the years from Treasury, Secret Service, and Federal Reserve officials that there was nothing illegal or wrong about the Liberty Dollar, the Mint claimed today that,

    "Under 18 U.S.C. § 486, it is a Federal crime to pass, or attempt to pass, any coins of gold or silver intended for use as current money except as authorized by law. According to the NORFED website, "Liberty merchants" are encouraged to accept NORFED "Liberty Dollar" medallions and offer them as change in sales transactions of merchandise or services."



    The Mint press release links to a warning of this and other federal laws being violated, which goes on to say that,

    "Second, the advertisements confusingly refer to NORFED "Liberty Dollar" medallions as "legal" and "constitutional." However, under the Constitution ( Article I, section 8, clause 5 ), Congress has the exclusive power to coin money of the United States and to regulate its value. By statute ( 31 U.S.C. § 5112(a) ), Congress specifies the coins that the Secretary of the Treasury is authorized to mint and issue and requires the Secretary to carry out these duties at the United States Mint (31 U.S.C. § 5131). Accordingly, the United States Mint is the only entity in the United States with the lawful authority to mint and issue legal tender United States coins."

    Note the reference to the Constitution. What is obvious to scholars is that the Mint incorrectly quotes the Constitution (which does not say "exclusive), which does NOT give congress any exclusivity in its power to coin money, it only says they are empowered to do so, not that anyone else can't. Here are the actual words,

    "The Congress shall have Power To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;."
    - US Constitution, Article I, section 8, clause 5

    This open interpretation has been upheld by Treasury and Secret Service officials for many years.

    This challenge by the Mint is obviously a threat to private minters. The Mint has recently taken up a campaign to "warn" the public about the fact that many privately minted medallions are not US Mint issue. This is rather obviously a ploy to drive down the collectible value of these private coins and drive up the value of official US Mint specie coins.

    A possible second consideration may be that the Liberty Dollar is a talisman of the libertarian, anti-tax "Patriots", anti-Federal Reserve, and other populist movements. That there are other private currencies in wide circulation in four states is not mentioned by the Mint.

    NORFED shot back with its own press release, taking the chance to correct several errors of the Mint in its own press release, and challenging the Mint to a legal battle. NORFED states that:

    "We privately mint currency that is backed by gold and silver, not the United States Government. The designs and verbiage on our specie and certificate are original and are not copies of any US Mint currency.

    The Liberty Dollar began in 1998 and has been in circulation throughout the US for eight years. We have over 2500 Liberty Associates, 75 Regional Currency Offices, and thousands of Liberty Merchants accepting the Liberty Dollar. We have never been notified nor had suit brought by the US Department of Justice."

    NORFED Executive Director Michael Johnson goes on to quote several Treasury and Federal Reserve officials, as seen here:

    Claudia Dickens, spokeswoman for the U.S. Treasury Department's Bureau of Engraving and Printing, said American Liberty Currency is legitimate. "There's nothing illegal about this," Dickens said after the Treasury Department's legal team reviewed the currency. "As long as it doesn't say legal tender there's nothing wrong with it."

    Andrew Williams, a spokesman for the Federal Reserve in Washington, D.C.: "There is no law that says goods and services must be paid for with Federal Reserve notes. Parties entering into a transaction can establish any medium of exchange that is agreed upon."

    In addition, Art Rolnick, Director of Research for the Federal Reserve Bank of Minneapolis, in a January 2000 interview, stated "If these (NORFED) people want to issue their own money, so be it."

    Also, throughout the years associates have been in contact with the Secret Service if someone called in to question the legitimacy of the Liberty Dollar. The Secret Service has never had a problem with us.

    Johnson likened his organizations legal struggle to the epic battle between Federal Express and the United States Postal Service, and predicts similar results: most priority and long distance USPS mail today is shipped by FedEx aircraft.

    This should be an interesting fight. With $20 million in private currency in circulation, NORFED is a small private currency today. Whether it can afford the legal costs of this David and Goliath fight remains to be seen.

    NOTE: Those who wish to help support NORFEDs coming legal fight can make donations here at IntLib via any of the widgets found in the right hand column (Paypal, NORFED eALD, or ChipIn). Please include a note that this money is intended for NORFEDs legal costs.
     
    Rick_Michael, Sep 16, 2006 IP
  2. math20

    math20 Peon

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    #2
    Yet another example of how the U.S. government is trying to gain control over everything by misinterpreting the constitution or blatantly rejecting it.

    If I was rich, I'd expatriate.
     
    math20, Sep 16, 2006 IP
  3. Rick_Michael

    Rick_Michael Peon

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    #3
    It's undermining their power of currency. It's not the popular now, but once you put something in that has obvious staying power (like gold or silver), it's competition is not that steady.
     
    Rick_Michael, Sep 16, 2006 IP
  4. GTech

    GTech Rob Jones for President!

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    #4
    My local car wash dispenses liberty dollars to use in the coin ops. So this means they are in violation of federal law? I never gave much thought to it, really, but it's a lot more convenient to get five liberty dollars than 20 quarters.
     
    GTech, Sep 16, 2006 IP
  5. math20

    math20 Peon

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    #5
    What? I did not understand what you just said. The U.S.A. should not have absolute curreny control, or even partial. People should be able to print all the money they want as long as it is not the united states's currency.
     
    math20, Sep 16, 2006 IP
  6. lorien1973

    lorien1973 Notable Member

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    #6
    I just pay with canadian quarters. Can't really tell the difference between ours and theirs and I only pay like 78 cents on the dollar or something. Who needs a sale? :p
     
    lorien1973, Sep 16, 2006 IP