Should Gold And Silver Be "Illegal" Tender?

Years ago, if you wanted to buy something youany local retailers to say they would accept them.
paid in coins minted from, or at least backed by,Second is that the value of the coin is not backed
precious metals. United States currency, forby its actual value in precious metal. For example,
example, was backed by gold held by thefrom the Liberty Dollar website, "When the price
government - hence the term "gold standard".of silver rises near $10 per ounce, a new $20
Your dollar was backed by a dollars worth of goldWarehouse Receipt series will be issued. All new
which in theory you should have been able to getCertificates will be identified with "$20 Silver Base.
by simply turning in your dollar.The new $20 denomination certificate will be
Since that time however a lot has changed. Thebacked by one ounce of .999 silver". Note that
dollar is no longer primarily backed by the tangible,that "one ounce" however is only worth "near
but rather the intangible. It is basically backed by$10". I didn't think it was a good idea to invest
itself on the condition of the stability of the Unitedsomething that wasn't worth nearly its weight in
States government, the productivity of thegold ... um ... I mean silver if you know what I
citizens of the United States and the willingness ofmean.
foreign countries to use it as a guarantee of theirI liked the idea, but hey, those are the breaks.
own currency.Currency doesn't do you any good if no one
This, of course, is problematic because of avalues it at the value you assign to it.
pesky little thing called the United StatesSo, back to the FBI raid on Liberty Dollar. It was
Constitution which states, "No State shall ... makebecause the government claimed that the
any Thing but gold and silver Coin a Tender incompany's money was too "similar" to "official"
Payment of Debts ". So if no State can do this,U.S. currency even though the "official" U.S.
then how can they allow a currency issued by thecurrency isn't based on the Constitutional provision
federal government to be used by their citizens?of being gold and silver backed. To which I ask
A quick scan of all the amendments made tothe obligatory question of, "So what?" Is there
date shows no repeal of that clause was evernow some monopoly that the federal
made. Which means that it is still valid and "thegovernment should have over how we conduct
law".our business?
To me, at least, it seems we have a bit of aNot according to the Constitution. The Constitution
problem even though to me it doesn't reallydoesn't give the federal government the exclusive
matter what the dollar is backed by. Althoughright to be the sole source of "money". It only
there are many that are indignant at anythinggives the government the power to issue money
other than what they want used as a basis forstating, "The Congress shall have Power ... To coin
value being used. My opinion is that as long asMoney, regulate the Value thereof, and of foreign
whatever backs the dollar is valued, it doesn'tCoin, and fix the Standard of Weights and
matter what that something is.Measures". Being the strict constructionalist that I
Everything that could be proposed to back theam, I have to call it as I see it.
dollar has periods of highs and lows. I don't careThere are also other charges that appear to be
what you come up with. Even the value of goldheaded to court to be sorted out. Issues such
fluctuates with supplies, new sources being mined,"counterfeiting", a bogus charge because Liberty
old sources drying up and even plain old demandDollar was not creating copies of the federal
just as the value of the perceived stability of thecurrency, and others such as whether or not the
American government and its promises to backendeavor was a sort of ponzi scheme where the
its own currency do.coins were sold at more than the value of the
So to me it has always been a moot point. Basegold, silver, etc that backed them.
the value of the dollar on whatever you want.You see the potential problem here. The money is
Just make sure that that "whatever you want" isinflated in value as I previously discussed. But you
valuable and be careful. As the old story goes,can't really make the money and pay for the
leaves make great currency until you discover acosts of turning the raw metals into coins without
forest. Then you have to worry about inflation.charging more than it is worth right? After all, it
But I do believe that we should abide by thetakes many times the value of an "official" U.S.
Constitution. Or at least be willing to change it bydollar bill to keep it in circulation than the value of
amendment if we no longer think that thethe dollar bill in the first place. So the same
standard set forth in it is no longer valid orproblem exists with federal money.
attainable.As long as people agree to accept the currency
So fast forward with me if you will to theas payment shouldn't we let them? If people are
modern day. Arrive with me at just this pastwilling to accept the coin and Liberty Dollar makes
month when FBI agents raided and seized thegood on its pledge to redeem the currency for
precious metals and coins owned, minted andthe precious metals that back it as promised
circulated by Liberty Dollar. The company iswhen asked, what really is the problem here?
owned by Bernard von NotHaus and has beenShould gold and silver not be legal currency?
minting its own coins for a decade which some,Should people not be allowed to barter and trade
and I emphasize some, companies and individualsin any form they desire for goods and services
have chosen to accept as legal tender forbarring the infringement of someone's rights in the
exchange of goods and services. All told, ittransaction? Or should the government be allowed
appears that over the years millions worth ofto dictate what we can and cannot use as
"Liberty Dollars" have been placed into circulation"currency" for private transactions?
and all are backed by precious metals and aAnd if gold and silver are not to be legal currency,
guarantee by Liberty Dollar.then wouldn't every coin dealer in America be just
Disclaimer time so bear with me. I supported theas guilty as those that created the Liberty Dollar
concept of the Liberty Dollar until Mr. von NotHauseach time they bought or sold a coin? What
decided to make his enterprise a political operationabout the local pawn shop that buys and sells
instead of simply an exercise in Constitutionaljewelry made of gold and silver? Shouldn't we be
adherence. By producing coins with a politicalable, as free people, to trade something for
messages such as the anti-war "Peace Dollar" hesomething else of our own free will?
thoroughly ceased ingratiating himself in my mindThese are serious questions that need to be
and became someone that doesn't understandanswered. Because in a time not too far removed
the dangers facing American and individual liberty.from modern day, we as Americans, used to
And when the "Ron Paul for President" coinconduct our business in things other than the
became available, well, he became a basically apaper money and coins of modern day America.
fund raiser and promoter for that candidate.We offered gold and silver and even cows and
Personally I believe that he ruined a good ideachickens as payment for our debts and to acquire
even if it had yet to really catch on. If I had beenservices. Heck, at one point in America,
him I would have kept the politics out of it."wampum" was a currency for God's sake!
I think it is only right to also disclose that I haveWampum, for your information, being polished
never used any of the products by Liberty Dollarshells plentiful in the ocean to anyone that had the
for two reasons. First, because I could not getdrive to fetch them.