My email box has been abuzz recently with reports coming from various sources about the recent federal government raid on the Liberty Dollar.
There are charges of money laundering, mail fraud and wire fraud, the validity of which cannot be assessed until evidence is presented. However, it seems the main issue here is the legality or illegality of a private entity issuing gold and silver coins and certificates that are redeemable for gold or silver (effectively, warehouse receipts). As to that issue there seems to be little question that it is perfectly legal. This raid seems to be linked to the earlier warning by the U.S. Mint saying that “the Liberty Dollar violated the Constitution and warned consumers against using them unsuspectingly.”
It seems clear to me that the Constitution does not prohibit private minting of precious metal bullion “coins.” The only question about the legality of their circulation is whether or not the person trying to spend them misrepresents their nature to the prospective acceptor.
In any case, the opening paragraph of the AP article is telling. The author, by calling the currency “illegal” has already tried the case and found it to be so. Is this a case of prejudicing the public mind before any evidence has been presented? Judge for yourself. – t.h.g.
Feds Raid ‘Liberty Dollar’ HQ in Indiana
Here is an Associated Press story By RYAN LENZ. Read the entire story: http://ap.google.com/article/ALeqM5jZHepUhX3cYLnSqZV2tm_byrun3AD8SV1B5O2
EVANSVILLE, Ind. (AP) – Federal agents raided the headquarters of a group that produces illegal currency and puts it in circulation, seizing gold, silver and two tons of copper coins featuring Republican presidential candidate Ron Paul.
Tom, i was of the understanding that Article 1 section 8 of the U.S. Constitution limited the power ‘To coin Money’ to the U.S. Congress only. It is true that there is no qualifier of limitation or exclusivity in the section. Is this the reason that you believe it Constitutional for a private citizens “To coin Money” both individually and collectively?
Article 1 section 10 makes it clear that the several States may not coin money nor issue bills of credit (paper currency). Because the U.S. Constitution is silent on who may issue bills of credit, it is my understanding that only the States are barred from issuing paper money,whereas citizens, both individually and collectively, may rightfully issue paper money that would be Constitutional and lawful.