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Gary northIn his February 1, 2012 article, Ben Bernanke: The Official Counterfeiter, Gary North says of U.S. Notes:

They were taken out of circulation in 1971, the year that Nixon took the country off the gold exchange standard. Today, we still see these words on Federal Reserve Notes: “This note is legal tender for all debts, public and private.”

The Federal Reserve’s Notes looked very much like the Treasury’s greenbacks until the U.S. Notes were taken out of circulation.

And they still do look like the Treasury’s greenbacks, since United States Notes are still valid legal tender, despite being taken out of circulation by the government (but not all private individuals) in 1971.

Here, he is giving the false impression that U.S. Notes are as irrelevant as currency in the United States since 1971 as a Roman coin with Caesar on it.

The U.S. Treasury Department states, as of April 29, 2012:

Both United States Notes and Federal Reserve Notes are parts of our national currency and both are legal tender.

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Gary northIn his February 1, 2012 article, Ben Bernanke: The Official Counterfeiter, Gary North states:

There used to be a legal competitor issued by the U.S. Treasury. We read on Wikipedia:

A United States Note, also known as a Legal Tender Note, is a type of paper money that was issued from 1862 to 1971 in the U.S. Having been current for over 100 years, they were issued for longer than any other form of U.S. paper money. They were known popularly as “greenbacks” in their heyday, a name inherited from the Demand Notes that they replaced in 1862. Often called Legal Tender Notes, they were called United States Notes by the First Legal Tender Act, which authorized them as a form of fiat currency. On the back, they give notice that:

This Note is Legal Tender for All Debts Public and Private Except Duties On Imports And Interest On The Public Debt; And Is Redeemable In Payment Of All Loans Made To The United States.

North has been known to derisively refer to supporters of the interest-free paper money as “Greenbackers,” showing how out of touch he is in calling Ellen Brown a Greenbacker, considering she says the issuance of paper money at the federal level is unconstitutional.

Notice how he later focuses his readers’ attention on an insignificant difference between the two notes:

The Federal Reserve’s Notes looked very much like the Treasury’s greenbacks until the U.S. Notes were taken out of circulation.

As if the look of the two notes is at all significant compared to the fact that U.S. Notes are interest-free, and no interest was due — or ever will be due — on them.

For more on interest-free United States Notes, see my article, The Federal Reserve lies about United States Notes (Lincoln Greenbacks).

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April 30: George Washington becomes the first ...

Loyola professor and senior Mises Institute fellow, Thomas DiLorenzo, likes to attack President Abraham Lincoln for his policies of questionable constitutional authority.

What DiLorenzo won’t do, however, is attack with the same zeal, the same alleged violation of the Constitution by the first, and generally highly regarded President of the United States, George Washington.

During his presidency, Washington signed the Coinage Act of 1792 into law, which stated:

SEC. 16. And be it further enacted, That all the gold and silver coins which shall have been struck at, and issued from the said mint, shall be a lawful tender in all payments whatsoever

The term lawful connotes even stronger authority than legal, since lawful represents adherence to the spirit of the law, as well as the letter.

While prominent hard money advocates such as DiLorenzo take exception with Lincoln’s issuance of interest-free legal tender United States Notes, I have yet to see a single one of them point out with the same contempt, that George Washington was acting just as unconstitutionally, according to their own standards, as they allege Lincoln was in making United States Notes legal tender.

The issue of whether the federal government has the power to issue paper currency is separate from whether it has the power to make any currency legal tender.

As to where Washington may have believed he was acting constitutionally in signing the 1792 Coinage Act into law, and taking the view of his Treasury Secretary, Alexander Hamilton, over that of Thomas Jefferson, see my article The “necessary and proper” clause: it’s not meaningless.

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Flag of the United States Federal Reserve Bank

On February 6, 2011, The Daily Bell featured the interview, “Richard Maybury on the Collapse of the Anglo-American Empire and What It Means for You.

In it, I noticed an attempt to discredit interest-free United States Notes, which, as  I have previously documented, the privately owned Federal Reserve banking cartel lies about.

At first glance, it indeed seems like strange bedfellows for a privately owned central banking cartel and a self-described “free-market” site to both be discrediting a particular form of currency, which the Federal Reserve lies in claiming to “serve no function that is not already served by Federal Reserve notes.

However, once you “follow the money,” the picture becomes more clear.

Posted by FauxCapitalist on 2/7/2011 12:33:56 PM
Mr. Wile,

It says on your bio that you are a staunch advocate of free banking, yet I also see that you worked for ScotiaMcLeod, the investment division of one of Canada’s Big Five government-enforced oligopolistic banks. Their investment company, ScotiaMocatta, Canada’s largest precious metals bank, is Chair of the London Fix, which fixes the price of gold and silver every day.

Since you asked Richard Mayberry, “What do you think of the Brownian green backer movement? Is US Intel actively promoting it?”, my question for you is, is the Greenbacker movement being actively demoted by the very “large international banks” your own bio says you continue to consult for?

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