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Posted by A. B. Dada on February 6th, 2006
Attorney James Ostrowski is representing two men who attempted to use the Liberty Dollar (100% silver reserved currency) to purchase beer. The men were arrested for using a currency which the federal government says is not counterfeit. The Liberty Dollar is a private mint that creates bills and coins backed entirely by gold and silver.
I am confused by the idea of counterfeiting. Our own federal government counterfeits every day and it is considered legal, yet the Constitution says otherwise. Article I, Section 8, Clause 2 says “[The Congress shall have Power] To borrow Money on the credit of the United States” and Article I, Section 10, Clause 1 says “No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;”
The U.S. government, per the Constitution, requires the government to borrow money on the credit of the United States (meaning it can borrow money from any private organization that creates it), and that any money that the government coins be in nothing but gold and silver. Our own government does not have anything backed by gold or silver — all paper money made by the federal reserve is counterfeit as it is backed by nothing.
The Constitution does not discriminate against private money, in fact all money before 1913 was privately created by individual private banks. In 1913 the individual private banks were “unionized” into a single cartel used to issue Federal Reserve Notes — partially backed by gold and silver. Over the next 58 years, the paper receipts were backed by less and less metal, and Nixon relieves the government entirely of the Constitutional mandate. Today, dollars are backed by nothing. Instead of the government borrowing on faith from the private market (if they are willing to even loan the government), it is the other way around — we borrow from the government and must have faith that they can back up the currency in the long run. It can’t.
If we look back at Article I, Section 10, Clause 1, it says “No State shall … emit Bills of Credit…” What is a Bill of Credit? It is an IOU — the equivalent of what paper currency is today. Does this mean that no individual State may create its own debt? Of course! It also means that our own federal government has no mandate (and is explicitly and implicitly forced not) to create fake fiat money backed by nothing.
So what exactly is happening? Ben Bernanke started his new position today as the Federal Reserve chairman — control of an organization that provides the government with limitless Bills of Credit in the form of U.S. dollars.
Why do we keep accepting these paper nothings?
I’l be dropping James Ostrowski a line and donating to the cause to support these two men in using real currency, while they are charged and indicted by a government that seeks to violate the Constitution time and time again.