Feds seek $7M in privately made 'Liberty Dollars'

And so the confiscation begins.

http://finance.yahoo.com/news/Feds-seek-7M-in-privately-apf-641808269.html?x=0&.v=1

"Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism," U.S. Attorney Anne Tompkins said in a statement after von NotHaus was convicted.

Von NotHaus has argued it's not illegal to create currency to privately trade goods and services. He also has said his organization took pains to say the Liberty Dollars shouldn't be called "coins" and shouldn't be presented as government-minted cash. Among other benefits, Michel's motion argues, the Liberty Dollars were a means to help keep currency in local communities by creating networks of merchants and consumers who used the money.

Numerous cities and regions around the country have experimented with local currency, but laws restrict them from resembling U.S. bills or from being passed off as money printed by the federal government.

The concerns raised by von NotHaus and his group are finding resonance among some state lawmakers, too. About a dozen states have legislation that would allow them to produce their own currency backed by gold or silver in the event of hyperinflation striking the U.S. dollar. North and South Carolina are among those states.

That's partly why von NotHaus' group has been followed for years by the Southern Poverty Law Center, a group that tracks political extremism. Long before the government began its investigation into von NotHaus, the group was raising concerns about the popularity of Liberty Dollars among fringe groups on the far right.

"He's playing on a core idea of the radical right, that evil bankers in the Federal Reserve are ripping you off by controlling the money supply," said Mark Potok, spokesman for the group. "He very much exists in the world of the anti-government patriot movement, whatever he may say. That's who his customers are."

Maybe Potok should watch the film "Inside Job" to determine who the real domestic terrorists are.