Liberty Dollar

[Idioteque]

A few days ago, I was reading a topic at another forum that introduced me to the Liberty Dollar.

I would suggest looking that the web site, it's pretty interesting. Basicly Liberty Dollars are a form of private currency that are supposed to be protected from the inflation problems of federal reserve notes.

1 liberty dollar = $1 in federal reserve notes

The difference is that $10 in liberty dollars is backed by an ounce of silver.

Basically, it's a libertarian idea to protest the federal reserve and put an end to fiat. While I completely disagree with their premise and the gold standard, I can see the benefit of having money backed by gold and silver while everybody else is using fiat.

When the price of silver approcahes $10, the $10 base will be doubled. This means that an oz of silver will now be 20 liberty dollars and you will be able to exchange your money for twice the amount.

If you become a member, you can buy the currency at a discount and make a profit while circulating it.

I would encourage everybody to read the NORFED Website and this Wikipedia article . It's pretty interesting. I'd like to know what you guys think.

[wuushew]

1. Precious metals are too important to waste on coins and jewelry

Gold has many many uses in the electronics industry and large amounts of silver where melted down during WWII for use in the Manhattan Project enriching uranium.

It is possible to keep inflation at nil and still be based on fiat by the way.

[Andy_Stephenson]

2. Every single Fiat currency in history

has always failed. No exceptions.

[trotsky]

3. And every single currency based on a precious metal

yields an economy prone to massive depressions. No exceptions.

(Welcome back, Andy, BTW. :)

[MrMonk]

4. I'd be curious as to why they failed

and as to whether the same conditions that led to such failure are present today. Can you tell us any fiat currencies of modern, industrial states that failed and how that failure occured?

[MrMonk]

5. So, what they're offering is to "sell" you an ounce of silver

(present spot price about $7.50) for $10 in the expectation that others are more interested in trading these silver certificates than in holding, or speculating in, the silver. Or they can hold the certificates until the basis doubles (by agreement) then demand exchange for Federal Reserve dollars the next day. It seems that this monetary "architecture" is ripe for manipulation and insider deals.

[trotsky]

6. If you disagree with their premise AND the gold standard,

then just invest directly in gold (or silver). Then you won't be helping the wacko libertarians.