A week or two back, the Liberty Dollar architect, Bernard von NotHaus, published the following announcement. In essence, he is close to announcing that the paper issue of Liberty Dollars is to be recalled and replaced with notes being a number twice as large. This is because silver - the reserve of one ounce behind every $10 of Liberty Dollars - has gone up in price from $4 or so up to nearly $7.50.
Subject: [dgc.chat] Inflation Proof Currency Set to Double
Date: Thu, 8 Apr 2004 06:51:52 -0400
From: Bernard von NotHaus <firstname.lastname@example.org>
To: GoldMoney chat <email@example.com>
On Friday, March 19, silver crossed over $7.50 per ounce and the phones started ringing. "Silver is over $7.50!!! Have we crossed over to the $20 Silver Base? Have you DOUBLED the face value of the Liberty Dollar?" You could feel the excitement over the phone. So we asked Bernard von NotHaus, the monetary architect who designed and developed the new gold and based currency, and he confirmed that the "Crossover Point"* is without a doubt "the most exciting part of the Liberty Dollar currency".
Von NotHaus explained that just as gasoline has doubled, the price of silver has doubled from $4 to over $8 per ounce. Now the Liberty Dollar is also about to double. That means every Liberty Dollar you have - will double in face value when the Silver base crosses over from the $10 to $20 Silver Base. In other words, if you have a one-ounce $10 Silver Liberty or Certificate - you will able to exchange it for a new $20 Silver Liberty when the Crossover Point is reached.
Head turning? Maybe to some and to the new initiates into the world of emerging currencies. Welcome to the Liberty Dollar 'already the second most popular currency in America' that is distributed by NORFED - a national, nonprofit, educational, organization. It contends that the Liberty Dollar is not head turning, but an example of classical economics at it finest that has been turbocharged with the speed of the Internet and emboldened by massive government spending.
As the dollar continues to fall, and the price of silver rebounds from a half-century of manipulation and control, the Liberty Dollar is being driven by market forces to double the face value of the currency. Again as von NotHaus explained, "The Liberty Dollar is a 'free market currency' as described by Friedrich von Hayek, a Nobel Laureate economist. It is simply responding to the market. As silver doubles, the Liberty Dollar must double. thereby exemplifying a truly 'inflation proof currency' that is the essence of a free market currency. And the best part is that everybody can participate. Everybody can profit as Americans begin the arduous process to return our monetary system to value."
David Morgan, the 'Silver Guru' who publishes "Silver Investor" agrees with von NotHaus. "That is why I became a Liberty Associate with NORFED. I like the Liberty Dollar because it makes economic sense and using it is the right action for our country. We need a currency backed by real substance, backed by gold and silver. Real value for real American."
That feeling seems to parallel the NORFED position which professes not only to know the problems caused by the depreciating Federal Reserve Notes, it also proposes a simple positive solution that pays the participant to use the new currency. Again NORFED leads the edge of economic thought by putting classical economic principles into daily action. Fortunately, von NotHaus has proven to be an able manager during the Liberty Dollar's first five years and seems to reflect his 30 years in the trade.
Richard H. Timberlake, an octogenarian PhD in Economics from the University of Chicago, has keenly followed the emerging story of the Liberty Dollar for years. He said he has been fortunate to have von NotHaus' numerous overnight stops at his estate outside of Athens Georgia. And while Timberlake notes that his guest is often outspoken and intense, he defends the Liberty Dollar model as a functional substitute to the depreciating Federal Reserve Notes. He chides the Federal Reserve for its policy: "Its money has no connection to gold; its activities are unconstrained by any law or principle; its policies are at the discretion of men (and women) who bear no responsibility for the results of their actions; the Fed is as unconstitutional as any institution can get."
So while an increasing number of economists warn us about the economic war between the falling dollar and rising precious metal prices, and the monetary crisis to follow, the Liberty Dollar has become increasingly popular. Already there are over 100,000 people now using the $5 million Liberty Dollars in circulation. And that is about to double to $10 million dollars of purchasing power.
With double the price for gasoline, we may all need some extra purchasing power. Well the NORFED folks have just the answer, especially if you get the Liberty Dollar before it doubles. And even after it doubles, you can still continue to get the new silver based currency at a discount and use it at a profit. NORFED simply points out that as the US dollar has lost 40% of its value in the past two years in comparison to the euro, and silver has doubled just like gasoline, doesn't it make sense to use a currency that not only reflects the current market prices but one that you can use at a profit?
* The Crossover Point of the Liberty Dollar from the current $10 Silver Base (one Troy ounce of .999 fine silver backs $10 Liberty Dollars) to the new $20 Silver Base (one Troy ounce of .999 fine silver backs $20 Liberty Dollars) will occur when the thirty day moving average (30DMA) for silver stays over $7.50 for thirty consecutive calendar days.
As the Crossover Point is so important, NORFED uses an independent, third party source for its 30DMA so there are no doubts. Just like the monthly audits, there is total transparency for the econometric features that were designed into the Liberty Dollar model to guard it against being whipsawed by an erratic silver market. You can follow the 30 DMA and watch it develop by simply going to ScotiaMocotta at http://www.scotiamocatta.com/prec/pdfs/pm_daily.pdf. Scroll down the Gold & Silver Market Watch. The 30DMA is at the bottom of page two.
Von NotHaus urges everyone "To get as many Liberty Dollars as possible before the base doubles. Your family's financial life might depend on it! Either change your money or lose your value - that is the choice."
As of April 2. 2004 the 30DMA was $7.23
Bernard von NotHaus
Posted by iang at April 17, 2004 12:13 PM
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