Liberty Dollar Seizure turns into battle cry for Ron Paul supporters

Anyone who owns so-called "Liberty Dollars" and "Ron Paul Dollars" should be prepared for a dramatic increase in their collectibility and value.

For about eight years, Liberty Dollars have been minted and sold by a group known as the National Organization for the Repeal of the Federal Reserve Act and Internal Revenue Code (NORFED) as a medium for "private voluntary barter" transactions. However, in 2006 the US Mint posted its determination that these coins constituted illegal currency.

NORFED's defense of its activities can be found here. And here is a copy of an amended complaint filed by NORFED seeking an injunction against the US Mint's interference with its business.

But anyone who has spit into the wind knows the results are none too favorable. Last Friday, just as NORFED was preparing to mail out thousands of "Ron Paul Dollars" to customers, the FBI executed this search warrant. According to the warrant, the NORFED's coins were illegal currency and its purpose was to "undermine the United States financial systems." As if.

But that isn't the end of the story. News of the raid spread across the blogosphere like wildfire and legions of Ron Paul supporters are livid. The Washington Post has this story and several posted comments from Paul supporters. Interesting reading.

So, don't count on seeing any more Liberty Dollars for a while. And pay close attention to any you may already have. They are likely to become highly treasured collector's items.