The US Mint issued a press release warning consumers that the Liberty Dollar medallions, marketed by the National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code (NORFED) “are not genuine United States Mint bullion coins, and not legal tender.” Consumers are warned that the Justice Department has determined that the use of these “medallions as circulating money is a Federal crime.”
NORFED is marketing these medallions as “Real Money” and that the associated notes are “America’s Inflation Proof Currency™.” Their web site even has links to reproduced articles that says the government claims that it is legal. Aside from not being able to verify the source of the articles from on-line resources, both articles say that these items are NOT legal tender and are legal.
As the Mint points out, these are medallions that are made to look like genuine US coins and currency. Devices like “USA” instead of spelling out “United States of America” and “Trust In God” rather than the legally required “In God We Trust” can make this confusing to an ordinary citizen.
NORFED is yet another scheme to capitalize on the “our money is not real money” because it lacks precious metals and that the US Constitution defines money in those terms. The fallacy of the arguement is that when the constitution was written, the price of precious metals were fixed by governments and varied based on a number of other economic factors. Today, the prices fluctuate based on market conditions. Therefore, when silver jumped to $15 per ounce, the $10 silver medallion would have 33-percent less buying power than $15 United States dollars. This is the consequence of a market-based economy.
A point made on the site is that private transaction can be bartered using anything of value to both parties. While this is true, if a business wants to do any business within the United States, the Uniform Commercial Code requires all negotiable instruments (represtatives of money) to be backed by legal tender. In other words, it is not legal to write a check or other promisory note using Liberty Dollars as its backing.
NORFED is a commercial (for-profit) venture started by Bernard von NotHaus who was the superintendent of the Royal Hawaiian Mint, a private mint located in Honolulu (the mint has no connection with the Hawaiian government). NORFED makes no guarantee that their Liberty Dollars would be widely accepted or be converted into United States currency. To further the illusion of hypocracy, it is reported that von NotHaus submited the design of the Liberty Dollar to the US Mint as a design for the Golden Dollar coin. This reminds me of the Flat Earth Society an organization formed in the sixtheenth century that continues to try to convince us that the world is flat.