no third solution

Blogging about liberty, anarchy, economics and politics

The Government Hates Competition

November 16th, 2007

If it relies upon the confiscation of a few million dollars worth of privately minted (and legal) specie-backed currency, what does this say about the viability and legitimacy of fractional-reserve banking, in general?

[At] about 8:00 this morning a dozen FBI and Secret Service agents raided the Liberty Dollar office in Evansville.

For approximately six hours they took all the gold, all the silver, all the platinum and almost two tons of Ron Paul Dollars that where (sic) just delivered last Friday. They also took all the files, all the computers and froze our bank accounts.

It is important to consider that the Liberty Dollar is not legal tender, which means that anyone who doesn’t want to accept it in exchange is not obligated to do so. The Federal Reserve notes are still the only form of money which must be accepted “for all debts, public and private even when voluntary contracts stipulate otherwise.

If you don’t have a problem with the idea of fractional-reserve banking, what do you think about such confiscations, and how can they be justified?

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More thoughts from Cap’n Arbyte.

no third solution

Blogging about liberty, anarchy, economics and politics