This is an interesting case.
RALEIGH, N.C. (AP) — Federal prosecutors on Monday tried to take a hoard of silver “Liberty Dollars” worth about $7 million that authorities say was invented by an Indiana man to compete with U.S. currency.
Bernard von NotHaus, 67, was convicted last month in federal court in Statesville on conspiracy and counterfeiting charges for making and selling the currency, which he promoted as inflation-proof competition for the U.S. dollar.
His Charlotte-based lawyer, Aaron Michel, is appealing that verdict. He wrote in a motion filed Thursday that von NotHaus did nothing wrong because he didn’t try to pass the Liberty Dollars off as U.S. dollars.
“The prosecutors successfully painted Mr. von NotHaus in a false light and now the U.S. Attorney responsible for the prosecution is painting the case in a false light, saying that it establishes that private voluntary barter currency is illegal,” Michel wrote.
The trial was scheduled to resume Monday in Statesville. The case involves more than five tons of Liberty Dollars and precious metals seized from a warehouse, which the government wants to take by forfeiture, according to federal prosecutors and Michel.
[…]
The concerns raised by von NotHaus and his group are finding resonance among some state lawmakers, too. About a dozen states have legislation that would allow them to produce their own currency backed by gold or silver in the event of hyperinflation striking the U.S. dollar. North and South Carolina are among those states.That’s partly why von NotHaus’ group has been followed for years by the Southern Poverty Law Center, a group that tracks political extremism. Long before the government began its investigation into von NotHaus, the group was raising concerns about the popularity of Liberty Dollars among fringe groups on the far right.
“He’s playing on a core idea of the radical right, that evil bankers in the Federal Reserve are ripping you off by controlling the money supply,” said Mark Potok, spokesman for the group. “He very much exists in the world of the anti-government patriot movement, whatever he may say. That’s who his customers are.”
Say what you want about alternative currencies and what not but… As for the idea that he’s is playing to fear of “evil bankers in the Federal Reserve are ripping you off by controlling the money supply.” Is this even arguable? Why can’t you play to people’s fear if they should be afraid. The Fed has spent the last 2 years monetizing our debt. This is evil, stupid, and guaranteed to devalue the currency, which is exactly von NotHaus’ point.
Don’t buy the coins, fine. But maybe you should be buying the precious metals.
April 4, 2011 at 7:29 pm
It's totally legal to use alternative currencies and a few specific neighborhoods/regions around the world do. I think one of the best known examples of this is BerkShares, which is used in western Massachusetts. From a pure gut reaction, though really, does the Federal Gov't have any right to tell us about it? It's not like they actually control our currency anyway.
April 4, 2011 at 7:48 pm
How is that different from selling plain ol' silver bars or krugerrands?
April 4, 2011 at 8:24 pm
How can you counterfeit if it isn't even a copy of the real thing? Since he makes it very clear it's not US currency (given it's sold because of a distrust of US currency) a charge of counterfeiting just doesn't make sense.
Maybe he was printing money on the side to make inflation happen faster? Hard to imagine he'd beat out the US Mint though…
April 4, 2011 at 9:12 pm
The government is just afraid that the Chinese will be asking for repayment in his currency instead of theirs.
What about a merchant who offered a discount in price if paid for in Kugerands, etc.? Or would that fall under the interstate commerce clause, too??
April 5, 2011 at 3:16 am
Well, someone had better tell amusement parks to stop using their tickets that buy ride privileges.
April 5, 2011 at 7:14 pm
From the BerkShares website,
"BerkShares will not, and are not intended to, replace federal currency. Their use will help strengthen the regional economy, favoring locally owned enterprises, local manufacturing, and local jobs, and reducing the region's dependence on an unpredictable global economy."
I wonder if von NotHaus intended to eliminate (not merely reduce) dependence on federal currency for those who used his alternative currency. If that's the case, maybe that's why the feds jumped on him for it.
April 5, 2011 at 11:50 pm
Tiffany in New York has used its own silver dollars for almost a century. Before gift cards became popular, Tiffany money was used. The silver coins marked by Tiffany could be trusted in exchange. Government said nothing to Tiffany. Why now? except to seize the tons of silver that belongs to a private citizen, and does not belong to government and will probably disappear. Remember once when a treasure hunter found a sunken galleon and recovered tons of silver and gold coins, the "government" tried to pass a law nationalizing the money, even though it was found in international waters. The treasure hunter had spent a fortune searching for the fortune. Then there is the EPA going around slapping $50,000 fines on homeowners for filling in the water culverts on their property in their driveway leading up to their private residence. I know a man who lost 40 acres of cranberry bogs because the EPA said it was wetlands(since he had to flood it to harvest the cranberries. I can't make this up. Government against the people is not one of the tenets of democracy.
April 6, 2011 at 12:03 am
Has von NotHaus cheated anyone? Giving a silver dollar's value is not cheating. Since when does the government have control and ownership of private property, even if it is silver and gold, my teeth fillings, too? Politicans franc their postage and anybody can franc their own money as long as it is not cheating. Counterfitting comes in when the coin is presented as gold and it is really salted with silver. Eureka, I have it.