The Constitutional Nature Of A Private Currency

Liberty-Dollars-coin value

“Trust us.  It’s for your benefit.  We’re from the government and we possess the concurrent power to restrain.”

If you TradeWithDave, then you probably know at least a little bit about the story of Bernard Von Nothaus.  He’s the man who was convicted in North Carolina for making his own private currency. 

Here’s a link to some of the backstory: 

From the prosecutor and Ron Paul:  http://tradewithdave.com/?p=6013

How sound money impacts your Disney Dollars: http://tradewithdave.com/?p=6008 

Mickey Mouse as a Domestic Terrorist:  http://tradewithdave.com/?p=5883

GATA is the Gold Anti-Trust Action Committee.  It’s a committed group led by Adrian Douglas and they try to chase the U.S. Governments Commodity Futures Trading Commission around the integrity and enforcement swimming pool like a greased watermelon at a 4th of July picnic.  They usually don’t get very far, but the keep trying and with Ron Paul now chairing a key subcommittee they seem to be making progress in some areas. 

Was Mr. Von Nothaus guilty of making silver coins that could be confused with U.S. currency such as silver dollars?  Possibly.  Is the United States government’s current arrangement with the Federal Reserve and our legal tender laws unconstitutional?  Definitely.  Does the average person on the street understand the nuances?  Absolutely not.  Will the viral spread of Bitcoin along with $5,000 per oz. gold and $250 per oz. silver bring all this to the public’s attention?  Probably so.

The irony of the Von Nothaus threat to the general public was that if you were fooled into buying a Liberty Dollar for the stated price, then you would be fooled into quadrupling the value of your investment.  I’m not sure that’s a crime.  Then again, the value of silver could drop back to below $10 per ounce.  In that case if you were tricked into swapping Federal Reserve Notes for Liberty Dollars you would lose.  For that to happen however, the United States Government would most likely have to return to a monetary system that wasn’t in violation of the United States Constitution.  Dave doesn’t see that happening.  So who exactly should be sent up to the big house?  Probably not Von Nothaus. 

GATA submitted an amicus brief in the case of the conviction in a North Carolina court of Bernard Von Nothaus.  Here’s a link to June 1 article from the New York Sun Newspaper:

http://www.nysun.com/editorials/von-nothaus-appeal/87371/ 

Here’s a link to the GATA brief:

http://www.gata.org/files/GATAAmicusBriefLibertyDollar-06-01-2011.pdf

Here’s a link to the original indictment:

http://www.howtovanish.com/images/VonNothausIndictment.pdf

Here’s a copy of the jury verdict form:

http://www.howtovanish.com/images/VerdictForm.pdf

Here’s a link to the consumer warning issued by the United States Mint:

http://www.usmint.gov/pressroom/index.cfm?action=press_release&id=710

Here’s a link to a recent piece from the Cato Institute on Ron Paul and Chris Wallace discussing Article 1, Section 8 of the U.S. Constitution which outlines how the government’s business of money is to be handled. 

http://www.cato-at-liberty.org/ron-paul-on-the-general-welfare-clause/

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