For_England

talk about dismissive! And he's wrong about the fundamental issue? what Iraq? Is that what he meant? The audacity of a 'conservative' making such a statement and then cutting the guy off!

C_steam

Big community.

Isn't that exactly the same as the other 'money'?

The blokes just introduced a new currency, that's all, when you take away the self-righteous fluff. It's no different to any other monetary system as far as i can see.

__________________
--------------------------------------------------

Users on ignore list: None. I've got to have people to laugh at.
Cowardly Posters* list: BobFM, Bellatrix.*People who post personal insults then refuse to reply

.

Smidgey

No, its vastly different. It is backed by precious metal - gold, silver, platinum and copper.

So the price of the dollar is set by the world market and not by a central bank. It makes the Liberty Dollar free from the threat of inflation and it therefore doesn't lose value over time.

For example, if you buy a Liberty Dollar worth $10 of federal reserve notes in 2000 and then you redeem it in 2010, assuming that the price of Gold has remained the same (the price of gold is roughly the same now as it was in Roman times) and assuming that there has been roughly a 5% inflation rate during these ten years, you will get much more back (I'm not so great at maths but I think it would be around 15 dollars). This means that your Liberty Dollar has had its price remain constant. Something that cost 10 dollars in a shop in 2000 will now cost 15 dollars, whereas the same product will be exactly the same price if a liberty dollar is used.

__________________
How vain is man, who boasts in fight the valour of gigantic might!

-Georg Friedrich Händel

Francis

That's a bit over simplified really, and ignores a lot of factors, for example you're paying $7 (approx) over the spot price for silver, so it doesn't take into account that if the LD fails you actually lose a fair slice of your money.

A lot of people get confused over the liberty dollar, and what it really is, what you're actually buying is a piece of paper that says you own a certain amount of silver, so what you are really doing is investing in silver, which like any other commodity can, and does, go both up, and down in value.

Yes, the average value of precious metals does remain somewhat constant and therefore is a good think to link your money too, but that is in the long term, in the short term it's value can fluctuate wildly, and swing from being worth twice as much, to half as much.

Right now, for example, with the economic situation in America (and for other reasons of course) the price of silver is high, it's doubled in recent years, because people see it as a safe place to invest capital whilst the housing market, and the stock market crash, now obviously when those markets recover, and people start removing their money from precious metals, and start returning it to property, and stocks and shares, or other commodities, the value of silver will fall.

The LD is linked to a weight of silver, so if the price of silver falls, as it will do eventually (we're closer to the top of it's value than the bottom), then the value of the LD will fall.

So right now, for example, the LD would make a bad investment. You'd be buying $13 of silver for $20, with every chance the price of silver will follow in a year or twos time, and so if you ever wanted to cash out of the scheme your initial $20 investment could be worth anything from $13 to as low as $5 or $6.

I guess that's not so bad if you've only invested $20, but for anyone (and there are a few out there) who have invested thousands it could translate to a significant loss.

At the end of the day, with the LD, you have to forget the 'money' thing, and look at it in real terms, what you are doing is not buying money, what you are doing is investing in a commodity, and in the case of the LD investing at well over the odds.

That's the real reason why so many places, the vast, vast, vast majority, won't accept the LD, it has nothing to do with legality, or morality, it's a simple knowledge that if you're holding the LD's, when the market crashes, and you want to cash out, you're going to lose a lot of money.

Of course you can get a reduction on the price you pay for your LD's, providing you're willing to become an agent, and sell to others, and you can offer them a reduction, if your customers agree to sell on to yet more people, which is one of the reasons the price is so high to start with, as it's really setting up what could be described as an MLM (multi-level marketing) scheme (or should that be scam?).

If you want to buy a pretty silver backed dollar you can always go for a Silver Eagle ($2 over spot price, as opposed to the LD's $7) but if you are not a numismatist your best bet is to go and buy real silver, at it's proper price, rather than giving someone a huge profit for a pretty piece of paper.