Welcome new Readers, Associates, Merchants and RCOs!

WOW... Volume 9! Like gold and silver... the Liberty Dollar has staying power! In fact we are already a third of the way through our ninth year. Now, if you usually don’t read down to the Incident of the Month or the Letter to Editor, please read these... they are really good. Other big news includes the de-listing of all Liberty Associates from Liberty Dollar site and outstanding comments about gold by a leading banker. Just consider that there would be no wars... Iran , privacy, drugs, etc... and a lot less problems like the national debt, trade deficit, social security collapse, or even the homeless... if we had a value based monetary system and the government had to pay with real money - gold and silver. Now take a moment and just “imagine” the Liberty Dollar potential – a simple proven profitable solution for all our country’s ills. Please share the Liberty Dollar SOLUTION with someone you know today.

1. Liberty Associates Removed from Site
2. eBay Attacks Liberty Dollar... Again!
3. Conferences and Calls Abound
4. Gold and Silver Prices
5. New & Improved digital Liberty Dollar Site
6. Circulations Figures
7. 1998/1999 “Type 2” Silver Liberty
8. Letter / Article to the Editor
9. Success Story / Incident of the Month
10. Question of the Month
11. Liberty Associate of the Month
12. Quote of the Month

In response to our Associates’ requests for more privacy, all Liberty Associates have been de-listed from the Liberty Dollar site. The need to have Associates listed has outgrown the need to show that there are thousands of people using the Liberty Dollar. This is jus another sign that the Liberty Dollar is growing up.

Please go to http://www.libertydollar.org/ld/supporters  to sign up for the new free public List of Supporters. Everyone is encouraged to join this distinguished list.

On Wednesday, January 10, Dave Gillie, the RCO for Flint Michigan filed this report:

Below is a copy of a letter I just received from eBay. It is interesting to note that even though they say that links ARE permitted when "it gives more detailed info about the product," the Liberty Dollar website is prohibited from a description of a Liberty Dollar that is being auctioned!!!

eBay did not just ask me to edit out the website address, nor suspend it or just delete it, they went into my "My eBay" and totally deleted the listing’s descriptions that I had saved, so I had to totally redo the auction from scratch rather than just edit it.

Anyone still have any doubts that people are out to get us??

Dave Gillie

DaveGillie@aol.com

www.LibertyDollarMichigan.com

(http://www.gilliesconeyisland.com/)

[This is an exact quote that Dave received from eBay:]

Dear Dave Gillie,

You recently listed the following listing:

220068398930 - UNUSUAL USA 2004 Silver Liberty Ounce $20 Dollar norfed

220068393242 - VIRGINIA Silver Liberty Ounce $20 Face Dollar norfed VA

220069654066 - 3 piece SET Silver Liberty Ounces $20 Dollar norfed

220068391493 - INDIANA Silver Liberty Ounce $20 Face Dollar norfed

The listing was removed because it violated the eBay Inappropriate Links Policy. The violation occurred when you included the following information in your listing:

_www.LibertyDollar.org_ (http://www.LibertyDollar.org)

All fees related to this listing have been credited to your account. We also notified members who placed bids on the item that the listing has been cancelled.

Sellers can include some types of links in their listing if those links are intended to give potential buyers more detailed information about an item in their listings.

For more information on the eBay Inappropriate Links policy, please visit:

http://pages.ebay.com/help/policies/listing-links.html

Editor’s note: Thanks Dave. There you have it... the sincerest form of acknowledgement... denial. Unfortunately, this is not the first attack on the Liberty Dollar ... nor will it probably be the last. Of course, eBay owns PayPay that has their own currency, so I don’t think this is so sinister as just hard-ball competition at work. To find out how brutal eBay was and continues to be as a competitor, just read “PayPal Wars” available at Amazon.com.

From FFF to We The People to Free State Project to quarterly LDU and dozens of Conference Calls in support of Aaron Russo’s “America - Freedom to Fascism” movie, to regional events across our great country, activism is alive and well. Of course we would like the Liberty Dollar to be represented at all the events. So if you are aware of an event or participating at an event, please consider getting a table and call the Office for free collateral material, brochures, and support to make the Liberty Dollar known. I am sure you will find it is more fun to be a participant than just an attendee. Hope to hear from you soon. Call: 888.LIB.DOLLAR or 888.421.6181.

No doubt about it. As we all know gold and silver was up in 2006. In fact from January 2, 2006 to December 29, 2006: Gold was up 22.7%, closing at $634.10 and silver was up exactly double to 45.5%, closing at $12.82. So what do you think it will do in 2007? Who knows? But it is a given, the US dollar will go down and value will go up. And although there is the usual bit of fear mongering, I firmly believe that the long heralded collapse of the US dollar is a long way off. Both because of the volume and history of currency collapse. They simply take a long time and then the end happens quickly, but we are not there yet. In fact, we are not even close. Plenty of time to make a bunch of money and save our great country... if more people simply start using the solution instead of the problem. It all seems so simple: Which would you rather have: a currency that appreciates or one that constantly depreciates? But alas, monetary patterns change slowly, hence my opinion that there is plenty of time to profit before the pain and suffering arrives.

Looking at the big picture, I have noticed for well over 20 years that the central bankers and big bankers say some of the most amazing things. Sometimes they even complain that their money does not maintain its value! Recently a notable banker made some startling comments that were published by GATA.org. Here are some brief comments by a leading Canadian banker who actually recommends gold and denounces the fiat monetary system. At the recent 2007 Vancouver Resource Investment Conference, Anthony S. Fell, chairman of RBC Capital Markets and former president of Royal Bank of Canada, said:

I would not want to close off the evening without tabling one opportunity for all of us to make money, safeguard our wealth, and protect ourselves from the ravages of inflation over the next many years -- and that is gold bullion.

Is gold a currency, a commodity, or a store of value? The answer is all three, but gold bullion is primarily a currency and a store of value and is a hedge against fiat paper money and inflation.

As an economic consultant in 1966 Alan Greenspan wrote: "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. Gold stands in the way of this insidious process."

It was Alan Greenspan again who said in a 1999 testimony before the U.S. House Banking Committee that "gold represents the ultimate form of payment in the world."

Gold bullion is the only currency worldwide which is freely tradable and which is unencumbered by vast quantities of sovereign debt and prior obligations.

Gold bullion is the one investment and long-term store of value which cannot be adversely impacted by corrupt corporate management or incompetent politicians -- each of which are in ample supply on a global basis.

At the current level of about $625 per ounce, gold has risen about 250 percent over the last five years. Nevertheless, I believe gold bullion is now in the very early stages of a long-term secular bull market, which will carry it to much higher levels over the coming decade.

I don't think there's any point in speculating how high the price of gold might go in the course of this cycle because no one can be that precise. Suffice to say I anticipate a material increase.

History doesn't repeat but it's well to remember that from 1970 to 1980 gold rose 2,300 percent so it shows what can happen.

Reflecting on the long-term outlook for gold, it is important to fully appreciate that we now live in a world of fiat paper money.

Just as a reminder, fiat paper money, according to the Oxford Dictionary, is inconvertible paper money made legal tender by government decree.

The real question over the long term is: How much confidence do you have in politicians and central bankers to maintain the purchasing power of their currencies?

Since the U.S. moved to fiat paper money in 1971, the dollar has lost 80 percent of its purchasing power.

Since the Federal Reserve was established 93 years ago, the dollar has lost 98 percent of its purchasing power.

The new fiat U.S. dollar system has been in place for only 35 years -- not long when you consider the sad and sorry record of fiat paper money around the globe throughout the past century or two.

I would say the jury is very much out on this new system.

To some extent, I regret to say, all paper currencies are becoming somewhat suspect, and accordingly it is my view that gold bullion, rather than being the barbarous relic described by John Maynard Keynes, may well become the asset of choice for many investors over the coming decade.

Notwithstanding the modest rise in gold prices over the past few years (250% over the past five years), that is where gold bullion is today, and it represents a great opportunity.

For more info and to sign up for one of the best sources of info about gold, silver, and what is happening in the world of money, please go to www.GATA.org.

Recently a friend of mine mentioned that he didn’t understand the digital Liberty Dollar. So I took a look at the site and was amazed to find that little had been done since it was launched five years ago. In fact, some of the things that were there were missing since we moved to a new server. And to make matters worse, there were even some broken links. But the worst part was that there was no clear explanation of what a digital currency was and how it worked. So I am pleased to tell you that we have revamped the digital Liberty Dollar site and I invite you to check out the “new and improved” site. And even though it may look similar, the content, explanations, and FAQ are up to speed. Please visit the digital Liberty Dollar at: http://www.elibertydollar.com/login.php?isssl=1.

I am pleased to inform you that 2006 was a terrific year for the Liberty Dollar even though the figures did no measure up to our projections. Nearly all the new Liberty Dollars were issued in the first months of the year that were followed by the seasonally slow summer months... then the US Mint issued its warning on September 13 and that dampened business considerably. The total number of Liberty Dollars in circulation as of December 31, 2006 was $20,864,015.00. Thank you for your support and efforts to grow the Liberty Dollar into the proven profitable solution for all our country’s monetary ills.

If you are still troubled about “paying twice the price for silver,” you need not read this article. But if you are a bit of a collector or have some of the very first Silver Libertys and treasure them, you may be interested to know that the second Silver Liberty, Type 2, is much rarer and almost impossible to find. Trust me. I have tried and it appears to be the rarest Silver Liberty produced. Currently, Type 1 of the first year of issue one ounce Brilliant Uncirculated (BU) 1998 Silver Liberty is available on the shopping cart for $200. But no Type 2s are offered. Why? Simple. There have not been any to sell. But recently I received four Type 2s. Two were immediately snapped up for $250 each! I still have two. If you are interested in one or both, please reply to this email with your bid and highest bidder over $250 wins.

The Type 2 variety was the second Silver Liberty minted and is unusual as it contains the 1998 dated original obverse die and the 1999 dated reverse die with the central Torch design and the legend: “FOR THE REPEAL OF THE FEDERAL RESERVE AND THE INTERNAL REVENUE CODE” which was the last time the FXRX is mentioned on our issues.

BTW, counting the 25 special private labeled State Monetary Initiative with the state’s name issued in 2006, over 50 different Silver Libertys have been issued to date. Simply amazing! Thank you for all your support.

I few years ago I was told I was ripped off. You see back in 2003, I bought this silver round shiny thing (not to be confused with a coin) from this group called Liberty Dollar. You see they contracted out to another company to have a troy ounce/31.1 grams of silver minted into a "round shiny thing" and label it "$10." Anyway, back in 2003 an ounce of silver sold for about $5, if you bought 1000 Libertys, and this Liberty Dollar group would exchange Federal Reserve Notes for these round things for about $7.50 each. Now I thought to myself: one, I cannot afford one of these 1000 oz bars; two, even if I could buy the silver bar, I still have to get someone to make it into a round shiny thing for me. In other words I would have to pay someone else for their labor and materials to make my bar into round shiny things (too many people, forget TANSTAAFL). So I figured that $7.50 was a fair price. Now granted the US Mint had a coin that was also one ounce of silver for about a dollar less but the Liberty Dollar one did look nice. Now people said that I was ripped off, I bought this round shiny thing that weighed 31.1 grams for something that was only "worth" $5 (no one I could find could comment on how the US Mint would not have ripped me off if I had bought a silver ounce coin from them for about the same price).

Years go by and now we are at the end of 2006. I still have my round shiny thing that I overpaid for (or so I was told) for $7.50 but now I am told that it is worth $15.00. How can that be? If it is now $15 when before it was $5 that would mean that it has increased by 300% and that would mean that my round shiny thing should weight 93.3 grams. I found a postage scale that would do weights in grams, carefully made sure it was calibrated to 0 and placed the shiny thing on the scale. The numbers counted up to 31.1 and then stopped. I thought well something is wrong with the scale so I found another.

Carefully weighting it I got 31.1 again. So, in 2003, it weighed 31.1 grams and in 2006 it still weighs 31.1 grams. Nothing has changed in the three years, the round shiny thing of 31.1 grams of silver is still a round shiny thing of 31.1 grams of silver. Its mass did not

increase, yet some how some people believe I have "profited" by 100% in the pass three years. Yet to "profit" does not the object in question, my round shiny thing, have to increase?

So now I have a question: Did the rules of physics change or could it be that the measuring tool of others, those who claim I made a profit, changed? 31.1 grams / 31.1 grams = 1, $7.5 / $15 = .5, if these numbers are true then I was not the one "ripped off" nor did I profit, nothing about my round shiny thing has changed, however it would seem

that those holding the FRN dollars have changed their base value in half. Maybe they should have saved pennies instead.

Thought for the day:

ALD in 2003 about $7.50

750 US one cent in 2003 (produced by the US Mint) $7.50

ALD in 2006 about $15.00

750 US one cent 2003 = $8.25

What's changed here is the effective value of the dollar, and this story is a good indication of how the Liberty Dollar as an alternative currency allows one to preserve purchasing power.

Frank C cimrhanzel@yahoo.com

Thu Dec 21, 2006 8:16 am (PST)

If you wish to have your thoughts or words published, please email them to me.

“Redeeming Liberty” Incident was filed by Marshall Goldsmith on December 29:

I just wanted to tell you about an experience that I had with using Liberty Dollars.

My brother gave me ten $20 Liberty Dollars as a gift. He knew that I liked to collect coins and thought that these would be a unique addition to my collection. I went to your website to get more info about your coins. I saw where people had some interesting stories about using the Dollars. Well I went to the Lake County Courthouse in Illinois to pay a fine and decided to use the dollars to that. When I handed the 5 coins to the clerk she had no idea what they were. She asked a supervisor what to do. The supervisor brought in the head honcho who asked if I truly intended to pay with the coins. When I said that I did they asked for me to wait. A few minutes later police were arresting me for trying to pass counterfeit currency. Being in a courthouse there were several lawyers within earshot that wanted to see what was happening. One of the lawyers knew that a Secret Service agent was in one of the courtrooms so he was called in to look at the situation. His words were for them to let me go. I did not counterfeit any currency and therefore I have not broken any laws. When they refuted what he said, they said the wrong words that I made them eat. They stated that I can pay with a commodity and therefore since the coins are not US currency I am trying to pass counterfeit currency for real. I told them that US dollars are a commodity that is openly traded just like wheat, corn, silver and gold. They had no idea what to say except that they needed US Currency to pay the fine. At that point the lawyer that helped me handed a $100 bill to the clerk to pay the fine. Then handed me $150 for the five coins and said that if someone wants to try to arrest him he will be glad to take them on. My family thinks that what I did was courageous. But I knew that I was doing nothing illegal. Basically I was bartering and that is what the monetary system is.

Marshall Goldsmith mcleod1376@yahoo.com

QUESTION: Why is the Liberty Dollar in "Dollars"?
ANSWER: First, "dollar" is the world's most popular name for a currency. More world currencies are named “dollar” than any other. In addition to the US dollar, there is the Australian dollar, Canadian dollar, Hong Kong dollar, Singapore dollar, Taiwan dollar, among others.

Second, when a new currency is born it needs a name. Just like you have a name, our currency needs a name. We chose “Liberty Dollar.” Just as you are not like every “Bill,” “Jack” or “Bernard,” the Liberty Dollar is not like any other “dollar.” It is in fact the world's first private currency that is 100% backed and 100% redeemable in all three forms: metal, paper and digital. The new gold and silver inflation proof currency is named Liberty Dollar because it is a currency and because we hope it will liberate our great country and the world from the tyranny of inflationary fiat money.

I am pleased to report that the Liberty Dollar continues to attract very quality orientated people who want to change the country’s monetary system. And consistently, more and more of the people who are becoming Liberty Associates also open a Regional Currency Office, as they are interested in developing the Liberty Dollar from a business perspective. Of course, the Liberty Dollar has changed and will continue to change. A lot of the changes are because of the new blood that comes to the organization. Well, our Liberty Associate of the Month is an example of this new business blood. He is not only a RCO and operates a mortar and brick business in a shopping center, he also converted his father, a former banker, and mother to become involved and they are now a RCO too! So it is my pleasure to acknowledge Matt Pitagora and his parents, Richard and Lynne Pitagora of San Jose, California, as the outstanding Liberty Associates of the Month. Congratulations Matt, Richard and Lynne for your business and patriotic support of the Liberty Dollar. Wishing you and your efforts all the best in 2007. Thanks again for your support.

"Success isn't built on success; it's built on failure, frustration and sometimes catastrophe." - Sumner Redstone

Please click HERE (link to http://www.libertydollar.org/ld/supporters) and add your name to the list of distinguished Americans who support the Liberty Dollar. Call the office and tell us about an event where we can present the Liberty Dollar SOLUTION. I am sure there are some amazing things to come and I expect to have had a lot of fun being there!

Many thanks for your continued support. For it is only by banding together and adopting a free and independent currency which provides us with “just weights and measures” will we be able to throw off the yoke of a manipulated monetary system and generate a peaceful and prosperous society.

Thank you again for all your efforts to return America to value – one dollar at a time!

Bernard von NotHaus
Monetary Architect/Editor
Editor@LibertyDollar.org
www.LibertyDollar.org
888.LIB.DOLLAR
888.421.6181