I’ve been watching the Liberty Dollar for a couple of years now, but have only mentioned them here in passing because I never quite “got” it. If you don’t know what it is, I’m not really in a very good position to explain it to you other then it’s an alternative currency that is (supposedly) 100% backed by actual precious metal (silver and gold). Well, their offices were raided earlier this week and all of the coins, silver and gold was confiscated along with all of their business records. They are now suggesting that anyone with an outstanding order join a class action lawsuit against the federal government because the government stole the coins. Um… what?!? Allow me to reframe this argument, removing the confusing spectre of an alternative currency….
I sell you a car via the internet. The car is here in Morgan Hill, CA and you are wherever you are. You mail or PayPal me the money for the car, and arrange for a third party that you’ve hired to come pick up the car tomorrow. When your driver arrives I inform him that the car was impounded over night because the police think I might be a drug dealer (even though I’m not a drug dealer). So, if you want your car, you need to file a lawsuit against the police department. What? You want a refund? Sorry I can’t do that. You’ll need to sue the police.
Does that make any sense to you? Because it doesn’t to me. But that’s what they’re saying. The problem here is that they entered into a contract with their customers. A third party violating their rights has no bearing on that contract. They are still 100% responsible for upholding their end of the contract even if that third party is the government. The fact that they were so quick to put out this whole class action concept seems, to me, to be further proof that the whole thing was a scam from day one.