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« Liddy Dole at work | Main | Wray fray »

Apr 23, 2006

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Paul Elledge

Of course the Liberty Dollar has critics. There are a lot of crooked people who stand to lose millions, even billions of dollars should honest money ever return.

Of course it's not as liquid as fiat Federal Reserve Notes. Since banks operate on the fraudulent fractional reserve system, to accept honest money such as the LD would do them in. In turn, since the banks won't accept them, neither will most large corporations.
The critics are missing the point though. The point of LD, at least for now, is for it to circulate in local economies, which will increase the wealth of small businesses and individuals and protect them to a degree against inflation.

The criticism about LD not being backed by the face-value amount of silver is absurd. Think about it this way: how much is the paper in a 100-dollar Federal Reserve Note worth? A penny? That's probably stretching it. I have more use for a square of toilet paper.
The LD, on the other hand, contains one ounce of silver, which is currently priced at about $13, with a face value of $20. So one 20-dollar LD, in terms of the value of its physical composition, is worth 1,300 times the 100-dollar FRN.

"Since no one is required by law to accept the Liberty Dollar in any transaction, buyers and sellers might be left to haggle over every transaction."

That's the fault of the government's fiat money falling in value, not the fault of the LD. The haggling would be over the value of the silver in terms of FRNs; for example, whether its value today is $13 or $14. If honest money had always been around, however, everyone would know full well a precise value of one ounce of silver, which would remain virtually fixed. It would probably be worth about four gallons of gas or a meal for two at a fast-food joint or something of equivalent value.

"...NORFED is a multi-level marketing system."

Nope. There is a $100 reward for each new person you sign up to be an associate, but you get the full $100. You don't owe any of that to your "parent" associate.

"Furthermore, critics assert that by stamping a dollar amount on the Silver Liberty, NORFED defeats the purpose of measuring money in terms of weights of specie."

This is true, but in order to get people to accept hard money again, it needs to be made easy for them. Once hard money is widely accepted, LD may very well drop the FRN face value.

Why don't you give LD a chance, Ed? Why don't you get a couple of liberties from me? I'll sell them to you at a discount. Just allow yourself to hold one in your hand and feel its weight and behold its shininess. Experience the fun of dropping one into a cashier's hand and watching his or her eyes gleam upon seeing it. It's great!

Jon Lowder

Hey Ed,

You may recall that I made an offer to all Winston-Salem council members to host a blog for any or all of them for free. Vernon is the only one who took me up on it, and as you've noted before he hasn't really blogged much. But, relevant to this post, when I met with Vernon to discuss his blog we got together at a Starbucks by Hanes Mall. He used a Liberty Dollar to pay for his coffee and after we'd been talking a while the manager came over to say that he would honor that transaction but that in the future he wouldn't be able to because the banks won't accept them.

I personally have no problem with the whole concept but I just wouldn't have the energy to deal with the hassles of using them day in and day out. One thing I enjoy about the folks who are into the LDs is that they are at least taking the time to think about our monetary system and in turn when any of us non-LD people meet them they make us think about it. Still, I won't deal with the hassles myself...I'll just watch from the sideline.

Fred Gregory

deja vu

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