The guys who bought these coins, which they really do intend to be an alternate currency, are the same guys who would have been in the militia movement in the 90s.
In the affidavit, an FBI special agent states that he is investigating Norfed for federal violations including "uttering coins of gold, silver, or other metal," "making or possessing likeness of coins," mail fraud, wire fraud, money laundering and conspiracy. "The goal of Norfed is to undermine the United States government's financial systems by the issuance of a non-governmental competing currency for the purpose of repealing the Federal Reserve and Internal Revenue Code," he states.
The agent states that the investigation started two years ago. A year ago, the U.S. Mint issued a warning against using the Liberty Dollar, prompting a lawsuit by Norfed. But that has not kept Liberty Dollar fans from speculating online that the raid was prompted by Paul's strong campaign or by the precipitous recent decline in the value of the dollar.
In Paul They Trust (The Feds May Differ)
By Alec MacGillis
Washington Post Staff Writer
Saturday, November 17, 2007; A01
The ardent supporters of Rep. Ron Paul, the iconoclastic Texas libertarian whose campaign for the presidency is threatening to upend the battle for the Republican nomination, got word yesterday of a new source of outrage and motivation: reports of a federal raid on a company that was selling thousands of coins marked with the craggy visage of their hero.
Federal agents on Thursday raided the Evansville, Ind., headquarters of the National Organization for the Repeal of the Federal Reserve Act and Internal Revenue Code (Norfed), an organization of "sound money" advocates that for the past decade has been selling a private currency it calls "Liberty Dollars." The company says it has put into circulation more than $20 million in Liberty Dollars, coins and paper certificates it contends are backed by silver and gold stored in Idaho, are far more reliable than a U.S. dollar and are accepted for use by a nationwide underground economy.
