Money that isn't green??

[Dissipate]

I was surfing around on the Internet the other day and stumbled upon a site that I found quite shocking. Apparently there is a currency that is backed by gold and silver being issued by a private organization and circulated in the U.S. called American Liberty Dollars. This currency is strangely enough totally legal to spend (as long as the business accepts them), but banks do not take them. Here's a news article on it here. $3 million of this currency is in circulation and more businesses are accepting it. The official web site is www.norfed.org. What do you guys think? Bogus scheme or legitimate competition for Federal Reserve Notes?

 

[TheBoyBlunder]

Bogus scheme.

 

[Dissipate]

Why do you say bogus scheme?

 

[kami333]

Even if it's not bogus, not very likely to become widespread.

Wouldn't mind getting a few dollars worth and trying to use it though.

 

[DXM]

The article states all denominations are refundable for gold. So yes, it is a valid monetary system if enough people have faith in them.

 

[Dissipate]

Originally posted by: DXM
The article states all denominations are refundable for gold. So yes, it is a valid monetary system if enough people have faith in them.

No, actually only the $500 note is redeemable for gold. The rest is redeemable for silver. Here is the catch, the amount of silver/gold you get back for the note is worth less than what you pay for it. For instance for the $10 note you only get one ounce of silver back which is only worth about $6 on the silver market. There are however, supposedly redemption centers that will give you dollar for dollar FRNs for your Liberty Dollars.

 

[LSUfan]

I think you would be stupid to except paper money from them. With the liberal laws today they could just go bankrupt and all is gone. The feds have you locked with federal currency. Just my opinion though.

 

[DXM]

Originally posted by: Dissipate

Originally posted by: DXM
The article states all denominations are refundable for gold. So yes, it is a valid monetary system if enough people have faith in them.

No, actually only the $500 note is redeemable for gold. The rest is redeemable for silver. Here is the catch, the amount of silver/gold you get back for the note is worth less than what you pay for it. For instance for the $10 note you only get one ounce of silver back which is only worth about $6 on the silver market. There are however, supposedly redemption centers that will give you dollar for dollar FRNs for your Liberty Dollars.

Heh, I skimmed the article as I'm getting tired so I didn't catch the only for $500 note part. But even then, my point still stands that these so called Liberty Dollars do have value since they are redeemable for precious metals. Trading a $10 note for $6/oz silver wouldn't really speak of the value of the $10 note, but more of the market value of an ounce of silver. If I'm not making sense, sorry, it's been a long day. 😉

 

[Dissipate]

Originally posted by: LSUfan
I think you would be stupid to except paper money from them. With the liberal laws today they could just go bankrupt and all is gone. The feds have you locked with federal currency. Just my opinion though.

So if I just gave you a $500 Liberty Note you would just rip it up or throw it out?

 

[FoBoT]

what is the point?

 

[kenshorin]

Originally posted by: Dissipate

Originally posted by: LSUfan
I think you would be stupid to except paper money from them. With the liberal laws today they could just go bankrupt and all is gone. The feds have you locked with federal currency. Just my opinion though.

So if I just gave you a $500 Liberty Note you would just rip it up or throw it out?

If you gave me one, I would turn it back in for my gold!

That said, how do you get these notes? Give them a $10 Federal Reserve Note and get $10 of Liberty Bucks back? Wouldn't I just keep my Fed Note?

Also I notice at the top of these notes it says "Negotiable". I am pretty sure the Fed Notes say "Non-negotiable" (wallet is empty right now 🙁 ) so does that mean they can negotiate out of the face value on that bill?

 

[LSUfan]

Originally posted by: Dissipate

Originally posted by: LSUfan
I think you would be stupid to except paper money from them. With the liberal laws today they could just go bankrupt and all is gone. The feds have you locked with federal currency. Just my opinion though.

So if I just gave you a $500 Liberty Note you would just rip it up or throw it out?

Of course not. But I sure wouldnt hold on to it long.

 

[Dissipate]

Originally posted by: kenshorin

Originally posted by: Dissipate

Originally posted by: LSUfan
I think you would be stupid to except paper money from them. With the liberal laws today they could just go bankrupt and all is gone. The feds have you locked with federal currency. Just my opinion though.

So if I just gave you a $500 Liberty Note you would just rip it up or throw it out?

If you gave me one, I would turn it back in for my gold!

That said, how do you get these notes? Give them a $10 Federal Reserve Note and get $10 of Liberty Bucks back? Wouldn't I just keep my Fed Note?

Also I notice at the top of these notes it says "Negotiable". I am pretty sure the Fed Notes say "Non-negotiable" (wallet is empty right now 🙁 ) so does that mean they can negotiate out of the face value on that bill?

Yes, you can order them online, $10 in FRN for $10 ALDs + a small amount for S&H. No, FRNs do not say "non-negotiable", negotiable means that the bill can be given to someone else and they can cash it in or spend it.