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U.S. Government Financial Bail-Out
September 24, 2008

How Deep into Debt Should We Go?

Another note on Bush's proposed bail-out plan for the largest financial institutions regards the mindset that a debt of that magnitude could break the American taxpayer, bankrupt the government and force the U.S. Dollar down a path towards fiat currency status. Some goldbugs contend that once the U.S. went off the gold standard, leaving currency to be backed only by the word of the government and bouyed by peoples faith in that word, we were already there.

While there is something to be said for that line of thought, I would have to say that fault lies more with our federal governments break of faith with it's populace than in it's break with a method of currency backing. It has taken a long time for the world to loose faith in the U.S. government, through many presidents of both parties, a do nothing pork-bellied congress and through a magnificent build up and useless expansion of bureaucracy. That scenario, more than any other pocket of factors, is most resposible for the decilne of the U.S. Dollar.

ronpaul.jpgBut of course, we in numismatics are most concerned about coinage and in particular, gold and silver coins of value. I noticed a reference to the Bernard Von Nothaus NORFED silver coins in a blog commentary today. Most of these coins are listed on our NumisMaster website and in the KP Book of Unusual World Coins. This got me thinking about the FBI raid on the Liberty Dollar facility and wondering how Bernard's case was progressing. The Fed's siezed a hoard of coins and will probably try to hold them indefinitely until the Liberty folks can force a judge to free these assets.

One of the last Liberty Dollars struck in 2007 before the raid featured then presidential candidate Ron Paul and carried a reverse legend of "Vote for Truth". Well,as I was reading through the evening news, I came across an interesting article expressing Ron Paul's thoughts on the Bush financial bail-out proposal. Paul has always been a big proponent of smaller government, so you can certainly predict his take on this matter, but I'd suggest you take a few moments and read his comments. It's worth taking the time to develop a balanced point of view before jumping at a giant debt.

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Recent Comments
On September 26, 2008 Mark Herpel said
Bernard's case is very unusual. For all of his great work, public discussion and the massive amount of information he has provided people over the last decade...the LD company is now in a very bad legal position. Besides Dr. Paul, Bernard has had a wide impact on many people (myself included) and opened our 'regular joe' eyes to problems with the Federal Reserve. He has convinced me and others the US needs precious metal backing the currency.

It's a wonderful message he has shared and he deserves big credit.  At the same time it's unfortunate his organization is barely limping along headed into steep legal actions. In year's to come, we might all see the fine work he has done and should give him much more credit than he has received.

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About the Author
Tom Michael has been Krause Publications primary market analyst on more than 80 world and United States coin catalogs produced over the last 20 years. He came to KP in 1987 with a bachelor of arts degree in history, a master of arts degree in economics and a history of coin collecting stretching back to the 1960s. He began collecting world coins as a child by asking friends and relatives to bring coins back from overseas trips, visiting flea markets and having his mother watch for foreign coins in her register at the local grocery store. Today he works with a dedicated base of over 200 contributors to provide accurate market values for the five-volume Standard Catalog of World Coins series, as well as many specialty catalogs, including Coins & Currency of the Middle East and the fifth edition of Unusual World Coins.

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