With economy tanking, 'liberty' coins made of silver are paying off BY Matt Lysiak, DAILY NEWS WRITER, Tues, March 10th 2009, 1:16 AM:
Nicolas Leobald is fighting the federal government - one silver coin at a time.The 42-year-old East Village writer struck one of his mild-mannered political blows the other day at his favorite deli, where he bought some cold cuts and a roll, paying with a silver coin marked $10 and getting back three dollars in change.
That simple transaction could mean jail time for Leobald and the butcher. The coin, called a Liberty Dollar, is not legal tender and passing it is a federal crime. Libertarians, who are pushing the coins as an "inflation-proof" alternative to the greenback, call it a revolutionary act.
"It's about trying to take power away from the Federal Reserve and return it to private citizens," Leobald said. He says he spends his coins at Gray's Papaya, grocery stores, movie theaters and on taxis. "I use them all the time. People love Liberty Dollars," said Leobald, who has several hundred dollars' worth.
For years, those who obsessed about the Gold Standard and tried to pass so-called "private money" were considered fringe nutcases. With predictions of the dollar weakening and consumer fears of inflation strengthening, there is sudden new interest in alternative money - even in New York City. "I ask the merchants if they would rather be paid in green pieces of paper or real silver, and more often than not, they want the silver," said Karl Reile, 47, who says he spends Liberty Dollars on a daily basis at gas stations and restaurants. He said store owners almost always accept the pieces.
It looks like confidence in the dollar is waning right in the biggest city in the country. And without confidence, the Fed's confidence game can't go on very much longer. I don't know what's more earth-shattering, that this is happening in NYC or that the Daily News is reporting it!
