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Join GATA in supporting appeal of Liberty Dollar founder

Section: Daily Dispatches

12:08a ET Thursday, May 26, 2011

Dear Friend of GATA and Gold:

Bernard von NotHaus, creator of the Liberty Dollar, was convicted in March in federal court in North Carolina of three federal felonies related to his issuance of a private currency in gold and silver. The prosecutor claimed that the U.S. Constitution gives the U.S. government exclusive power to mint any type of coin or paper to be used as money. And though the Liberty Dollar coins were not imitations of U.S. coins, von NotHaus also was charged with counterfeiting and conspiracy.

After his conviction, von NotHaus was denounced by the U.S. attorney as a terrorist. (See

Now von NotHaus is seeking acquittal or a new trial, based on insufficiency of the evidence, claiming that the charges against him were based on an unconstitutional reading of federal law.

The post-conviction press release of the prosecutor, U.S. Attorney Anne M. Tompkins, delivered a warning to all advocates of sound money and free markets: "Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism," Tompkins said. "While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country. We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government."

That is, the government's unredeemable paper currency and base metal coinage are real but von NotHaus's gold and silver coins and gold- and silver-backed receipts were counterfeit. And if you complain that the government's money is being debased and try to compete with it in a free market, the government will get you.

The government's trial strategy appeared designed to confuse the Liberty Dollar operation with counterfeiting, and it raised a serious constitutional question. That is, while the Constitution grants Congress the power to coin money, is that power exclusive? The Constitution does not say that it is exclusive, and, indeed, there have been many private currencies in the United States over the years. (See Seth Lipsky's commentary on the Liberty Dollar case in The Wall Street Journal here:

Since the right to individual choice and free markets in currencies, including the monetary metals, is central to GATA's work, last week GATA asked U.S. District Court Judge Richard Voorhees for permission to file a friend-of-the-court brief in support of von NotHaus' acquittal or retrial. Though the government opposed GATA's motion, Judge Voorhees granted it, and GATA has been authorized to file a brief addressing the issue of constitutional money.

GATA is again represented in this case by the Vienna, Virginia, law firm of William J. Olson P.C. (, which in February won our freedom-of-information lawsuit against the Federal Reserve System for refusing to disclosed gold-related records. Assisting Olson is lawyer Thomas J. Ashcraft of Charlotte, North Carolina, a former aide to U.S. Sen. Jesse Helms of North Carolina and the former U.S. attorney for the Western District of North Carolina. Working as co-counsel in von NotHaus' appeal is the U.S. Justice Foundation (, a conservative civil rights organization based in Ramona, California.

If you believe in the right to constitutional money and are concerned by the conviction of von NotHaus, who could be sentenced to prison, please consider making a financial contribution to his defense.

The U.S. Justice Foundation has established a special fund for von NotHaus' appeal. Contributions to the foundation are federally tax-deductible. To help, please visit:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


Prophecy Resource Spins Off Platinum/Palladium Venture:
World-Class PGM Deposit in Yukon

Company Press Release, January 18, 2011

VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy.

PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding.

Following the transaction:

-- Prophecy will own approximately 90 percent of PCNC.

-- PCNC will consolidate its share capital on a 10 old for one new basis.

-- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp.

-- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings.

Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000.

For the complete announcement, please visit:

Join GATA here:

World Resource Investment Conference
Sunday-Monday, June 5-6, 2011
Vancouver Convention Centre East
Vancouver, British Columbia, Canada

Gold Rush 2011
GATA's London Conference
Thursday-Saturday, August 4-6, 2011
Savoy Hotel, London, England

Support GATA by purchasing gold and silver commemorative coins:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

Help keep GATA going

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To contribute to GATA, please visit:


Lewis E. Lehrman on How to Solve the U.S. Debt Problem

Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.

Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.

Lehrman says: "Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy.

"We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals and working people, 0 percent at the bank, you are not going to encourage them
to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."

To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: