As of January 1, 2007, NORFED was dissolved and the Liberty Dollar is now distributed without any political agenda.
Liberty Dollar Disclaimer (2006)
The Liberty Dollar and other precious-metal mintings distributed by NORFED, Inc., dba the Liberty Dollar, never have claimed to be, do not claim to be, are not, and do not purport to be, legal tender, or a coin.
The noun currency has many dictionary definitions - for example, without limitation, "that which is current as a medium of exchange[,]" "circulation as a medium of exchange[,]" "a common article for bartering[.]" In the sense that currency may be used to refer to the coinage of a government the Liberty Dollar never has claimed to be, does not claim to be, is not, and does not purport to be, currency.
The noun money also has many dictionary definitions - for example, again without limitation, "something generally accepted as a medium of exchange[,]" "a measure of value[,]" "a means of payment[.]" In the sense that money may be used to refer to the coinage of a government the Liberty Dollar never has claimed to be, does not claim to be, is not, and does not purport to be, money.
The phrase legal tender is more specifically defined and does not meaningfully vary from the authoritative BLACK'S LAW DICTIONARY definition, "The money (bills and coins) approved in a country for the payment of debts, the purchase of goods, and other exchanges of value." In other words, legal tender is what a government authoritatively designates as the medium that the government will accept in payment of taxes. The Liberty Dollar never has claimed to be, does not claim to be, is not, and does not purport to be, legal tender. The Liberty Dollar repeatedly has emphasized that it is not legal tender. Legal tender and barter are mutually exclusive. The Liberty Dollar is a numismatic piece or medallion which may be used voluntarily as barter.
The noun coin invariably is defined as "a round piece of metal issued by governmental authority as money" or an equivalent phrase. The Liberty Dollar never has claimed to be, does not claim to be, is not, and does not purport to be, a coin. Any claim of the forgoing would be contrary to the purpose and function of the Liberty Dollar, which, in addition to its being a numismatic item, is a means of voluntary barter.The Liberty Dollar will refer all inquiries to counsel in Washington, D.C.
September 19, 2006
The US Mint News Story in Perspective
The recent United States Mint warning regarding NORFED and the Liberty Dollar offers a rare opportunity. Let's face it, it had to happen... with the growth and prevalence of the Liberty Dollar over the last eight years, the Government had to respond.
They went public and cleared the air in many ways. First, they stated that the gold and silver Liberty Dollar 'medallions' are not US Mint bullion coins, nor are they legal tender... just as NORFED always advertised. Secondly, they stated that the Liberty Dollars are privately produced, and not backed, nor affiliated with, the United States Government... of course not, they're backed by gold and silver, again, just as NORFED has always advertised. Here it is in plain sight... the Liberty Dollar is not a coin, not legal tender, and backed with inflation proof gold and silver!
So what has happened? Goliath just introduced David to millions of Americans as a nationally recognized underdog. Just as Pepsi went up against Coke with their "take the Pepsi Challenge" campaign, the Liberty Dollar will take it to the people to decide which currency they should use. Welcome to "Just try the Liberty Dollar" campaign. So keep doing "the drop" and spreading the word. We are within our rights to offer Liberty Dollars for goods and services to whoever will voluntarily accept them.
Since the Liberty Dollar has hit mainstream media via USA Today, AOL, Reuters, etc visits to our website have soared to almost 10 times normal traffic. Online orders have skyrocketed as well! Everything from bumper stickers to Liberty Dollars are being ordered plus new Liberty Associates are signing up... America is mad as hell and isn't going to take it anymore. The people are speaking and they want the Liberty Dollar! Comments like "The US Mint can bite me" and "I'm exercising my right to choose" have been included with many of the orders received.
Critical-thinking free individuals, groups and associations are stepping up offering assistance and support to the Liberty Dollar. Let's keep the momentum going, get your orders in now while silver is at its lowest in months... whether Silver Certificates or Silver Libertys, the beautiful new five ounce Eighth Anniversary $100 commemorative or the very spendable $5 "Quarter Lib"... all are right... right now. Buy now and demonstrate your commitment to the value-backed, inflation-proof Liberty Dollar... practice your right to a free-market currency.
I also want to extend my sincerest thanks and appreciation to every Regional Currency Officer, Liberty Associate, and Liberty Merchant for their past support. Looking to the future our greatest opportunities and challenges are yet to come. Success takes many forms, but the satisfaction of accomplishment, of doing what you set out to do, can offer the greatest reward especially if that reward is returning America to Value - One Liberty Dollar at a time.
Please review our official Disclaimer and Press Release that specifically address the allegations made by the US Mint on Thursday, September 14.Mike Johnson
LIBERTY DOLLAR PRESS RELEASE
The United States Mint inadvertently may have done THE LIBERTY DOLLAR, an acclaimed private, non-government currency and favorite numismatic item distributed by NORFED, Inc., a favor by posting a "Warning" on its website on September 14 entitled "Liberty Dollars Not Legal Tender, United States Mint Warns Consumers." The last thing NORFED, Inc., known for the Liberty Dollar, wants is for someone to be confused that the gold and silver based Liberty Dollar has some connection with the Federal Government's fiat money, which is based upon nothing more than popular acceptance for lack of an alternative.
Since the introduction in 1998 of the Liberty Dollar every effort has been made to promote and market the Liberty Dollar with educational tools by clearly and repeatedly pointing out that the Liberty Dollar is not United States Mint fiat money, is not legal tender, is not a coin, is not currency in the sense of governmental coinage, and is not money in the sense of governmental coinage. (Currency and money have varied dictionary definitions. In its own interest the Liberty Dollar has every incentive to clarify that the Liberty Dollar has no connection with the Feds - and that's what has been done, and continues to be done, over and over.)
Any claim of the forgoing would be contrary to the purpose and function of the Liberty Dollar, which, in addition to its being a numismatic item is a means of voluntary barter.
The US Mint Warning has apparently been responsible for a gigantic increase in media and citizen attention to, clarification of, and evidently purchase of a lot more Liberty Dollars. Mike Johnson, Executive Director for the Liberty Dollar notes that, "There never has been such a volume of response - and incredibly favorable response - to the Liberty Dollar."
However, the US Mint Warning makes a big and wholly unjustified mistake. At the end of the opening paragraph it says: "Prosecutors within the Department of Justice have determined that the use of these gold and silver NORFED 'Liberty Dollar' medallions as circulating money is a Federal crime."
After some introductory misstatements, erroneously relying upon 18 USC § 486, the last sentence claims that ". . . prosecutors with [sic] the United States Department of Justice have concluded that the use of NORFED's 'Liberty Dollar' medallions violates 18 USC § 486, and is a crime."
Leaving aside the fact that the United States Mint has no criminal jurisdiction and no authority to interpret, much less enforce, the Criminal Code, the fact is that nobody in the Federal Government has ever contacted the Liberty Dollar or anybody responsibly connected with it, to investigate, much less to claim, that there is something unlawful about the Liberty Dollar.
Just the opposite. Over and again people have enquired of responsible personnel in the United States Secret Service, in the Department of the Treasury Bureau of Engraving and Printing, in the United States Federal Reserve and so on. Just a few of the responses: An Engraving and Printing spokeswoman said, "There's nothing illegal about this. As long as it doesn't say legal tender there's nothing wrong with it." A Washington, D. C. Federal Reserve System spokesman said, "There is no law that says goods and services must be paid for with Federal Reserve notes. Parties entering into a transaction can establish any medium of exchange that is agreed upon." A Federal Reserve Bank of Minneapolis official said, "If these [NORFED] people want to issue their own money, so be it."
The Liberty Dollar exists, and does so very well, with an estimated $20 million worth of gold and silver Liberty Dollars and Silver Certificates in voluntary circulation as barter, and growing, because the Liberty Dollar is not legal tender, is not connected with any governmental agency and, unlike United States coins and Federal Reserve notes, it is not debt based fiat money, or what some might say, "funny" money.
Liberty Dollar Disclaimer (2004)
"Gold and Silver Libertys are neither "legal tender", "coin", nor "current money"; they do not resemble nor appear to be coinage minted, issued, authorized, or approved by any government agency; and do not relate to taxation or avoidance of taxation. They are privately minted one-ounce gold and silver examples of the goods on deposit for the warehouse receipts distributed by NORFED."
Henceforth, all Gold and Silver Libertys will be provided with the clear understanding that it is NORFED's intent that all Gold and Silver Libetys are provided as examples of the goods on deposit for the warehouse receipts distributed by NORFED. Of course, what you and thousands of other freedom loving, consenting adults choose to do in response to the government's fiat money is beyond NORFED's ability or duty to police.
Furthermore, all new Gold and Silver Libertys will carry the web site address and phone number to further brand them as advertising specialty items and examples only.
Please note that in keeping with our defensive position, NORFED does not disclose any of our legal research nor Legal Opinion Letters. Of course, you are welcome to do your own research, and we would welcome a copy of your findings relative towards our common goal. For an example of such private research, please click HERE for a 42 page report on the Research on the Legislative Intent and Case Law of 18 USC 486 by David Rostcheck, an early supporter of the Liberty Dollar.
Liberty Dollar Disclaimer (2002)
In the fall of 2002, USC Title 18, Section 486 came under close scrutiny and review by the Liberty Dollar community and its attorneys. The outcome was a public DISCLAIMER, that acknowledged that the one ounce Gold and Silver Libertys were not in violation of federal law and particularly Section 486. So, I hope by this time that everybody knows the Gold and Silver Libertys are not "legal tender". Nor are they "coins", as a "coin" is something issued by a government and we are not they, nor do we ever want to be. The fact that the "Libertys" cannot be described in these terms has been enshrined in the United States Code, so it is not just numismatic, it is the law. And as the government also defines "money" and "current money", the Gold and Silver Libertys are neither of these.
There are three key points to keep in mind when researching this page: First when 486 was passed on June 8, 1864, the United States was embroiled in Civil War, legal tender was instituted, specie as payment was all but suspended, the new Greenbacks were not convertible to gold and silver. So the intent of the law was primarily a counterfeit statue. The key point is that it only deals with metals. It does not include paper currency nor digital currency. That is why the Disclaimer below mentions ONLY the one ounce Gold and Silver Libertys by name. And third the government has redefined money and current money and now specifically excludes gold and silver as money. And finally, even if the circumstances, legitimate intent, or metals were not enough, we publicly disclaim any intent to misrepresent the Gold and Silver to be anything but examples of the goods stored in the warehouse as required by law.
Drawing upon our ongoing legal and monetary research, USC Title 18, Section 486, dates from the time of the War between the States. Section 486 was originally known as the Act of June 8, 1864, which came about shortly after the first legal tender laws were passed, when Lincoln ushered in the country's first fiat "greenback" currency and drove all specie out of circulation. The Act was revised in 1873, 1909 and 1948. The current statute states:
Section 486: Uttering coins of gold, silver or other metal Whoever, except as authorized by law, makes or utters or passes, or attempts to utter or pass, any coins of gold or silver or other metal, or alloys of metals intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, shall be fined not more than $3,000 or imprisoned not more than five years, or both. June 25, 1948, c. 645, 62 Stat. 709.
Upon careful review of all cases pertinent to Section 486, it is the opinion of our Chief Counsel that the Gold and Silver Libertys distributed by NORFED are not in conflict because they are not "coins", nor are we circulating them as "money" as defined by the government. Please continue to refrain from referring to Gold and Silver Libertys as "coins", "money" or "current money". We can continue to refer to The Liberty Dollar as "real money" and/or "currency" because Section 486 only applies to metal; it does not apply to paper warehouse receipts, nor digital currencies. In fact, Section 486 actually reinforces our original position on these two items.
Based on independent legal research and the Legal Opinion Letter by our Chief Counsel, Section 486 is largely based on "intent". So upon advice of counsel, NORFED hereby issues this disclaimer to officially state that it is not the intent of the Gold and Silver Libertys to be in conflict with federal law. Please note this Disclaimer is posted on every page of the Liberty Dollar web site.