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Ron Paul Liberty Dollars Seized

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Question that Paul doesn’t need to be asked in a GOP debate: “Why did the Federal government raid a company selling currency with your face on it?”

What is his answer going to be? It’ll seem like he’s trying to undermine the monetary system, and even though he believes in the gold standard, you can’t just start it on your own. This is yet another reason why he’s going to have a nearly impossible time getting the GOP nomination, but it’s another reason why he should consider a 3rd party bid.

From Wash Post:

Federal agents on Thursday raided the Evansville, Ind., headquarters of the National Organization for the Repeal of the Federal Reserve Act and Internal Revenue Code (Norfed), an organization of “sound money” advocates that for the past decade has been selling a private currency it calls “Liberty Dollars.” The company says it has put into circulation more than $20 million in Liberty Dollars, coins and paper certificates it contends are backed by silver and gold stored in Idaho, are far more reliable than a U.S. dollar and are accepted for use by a nationwide underground economy.

Norfed officials said yesterday that the six-hour raid occurred just as its six employees were mailing out the first batch of 60,000 “Ron Paul Dollars,” copper coins sold for $1 to honor the candidate, who is a longtime advocate of abolishing the Federal Reserve. The group says it has shipped out about 10,000 silver Ron Paul Dollars that sold for $20 and about 3,500 of the copper $1 coins. But it said the agents seized more than 50,000 of the copper coins — more than two tons’ worth — plus smaller amounts of the silver coins and gold and platinum Ron Paul Dollars, which sell for $1,000 and $2,000.

Paul is big now because people have remixed his image on YouTube, MySpace and elsewhere so it’s more accessible. But there are some things you have to keep a tight leash on, and having somebody put your face on a piece of currency is a lot different than social networking aided politics.

And yes, he didn’t approve it…

A Paul campaign spokeswoman said yesterday that the campaign has “no affiliation” with the Ron Paul Dollars. But Paul’s supporters said the seizure of the coins is sure to further stoke support for the campaign.

And there’s the problem with trying to get the GOP nomination. Because if the campaign’s goal is truly that, they’re going to have to appeal to an entirely different group of voters at some point and they’re going to piss the extremely loyals supporters off by denouncing something they hold dear. You can feel it coming. I don’t know what it’ll be, but if they get big enough there’s gonna be trouble.

People, he’s polling at 8% as a 3rd party candidate nationally now. It’s time to face that fact that he’s not a mainstream candidate and run a campaign that embraces the outsiders of the political world, not the GOP base.

So why is this actually really good for Paul if he wants to mount a 3rd party bid? Well, it shines a spotlight on his argument that the dollar is worth nothing and position the government as paranoid enough to try and stop people who are fighting our monetary policy from within our won borders.

Seriously, doesn’t this read like a 3rd party candidate’s wet dream?

In the affidavit, an FBI special agent states that he is investigating Norfed for federal violations including “uttering coins of gold, silver, or other metal,” “making or possessing likeness of coins,” mail fraud, wire fraud, money laundering and conspiracy. “The goal of Norfed is to undermine the United States government’s financial systems by the issuance of a non-governmental competing currency for the purpose of repealing the Federal Reserve and Internal Revenue Code,” he states.

Most Paul supporters want to repeal the Fed and IRS. This will only embolden them. So the FBI gave Paul’s campaign a gift, but only if he embraces it.

Parting shot…

The seizure of the coins held an upside for those who have received their orders. On eBay, silver Ron Paul Dollars that were bought for $20 were selling for more than $300 last night.

You simply can’t buy that kind of loyalty and buzz. Let’s hope Paul doesn’t squander it.