Friend, you need to get your facts straight.
The people who ordered these certificates were clearly told, on the face of the certificate and elsewhere, that they are “warehouse receipts,” and they were not told that it was “legal tender.” In fact, for the better part of a decade the Liberty Dollar producers have repeatedly said that it is NOT legal tender, current money, coin, etc.
You’re sitting here pontificating, throwing out junk that’s completely contrary to ten years of demonstrated reality.
For example, here’s the links to the annual and monthly independent audit reports: http://www.libertydollar.org/ld/information/audits.htm
The audits were conducted, most recently, by Clark, Anderson McNelis CPA: http://www.camcpa.com/
Clark, Anderson, McNelis & Co., P.A.
Certified Public Accountants
560 West Canfield Avenue
Suite 100
Coeur d’Alene, ID 83815
Phone: (208) 772-6460
Fax: (208) 772-8272
Email: info@camcpa.com
Their Idaho State Board of Accountancy firm number is FR-0323, and their license expires September 30, 2008.
http://www.isba.idaho.gov/htm/firmsearch.cfm
If you’re prepared to call this licensed accounting firm liars, then you can certainly stand by your claim that “there was no control over the relationship between the amount of silver actually in a warehouse and the total amount of silver represented by all the certificates.”
Accounting firms rely primarily on the representations of management. Read the introductory letter from the accounting firm on any set of audited financials. They have no clue how many certificates this guy has mailed out, or will mail out in the future without adding a corresponding amount of silver to the warehouse, and no way of having any clue.
The article says that the same e-mail which complains about the raid “repeatedly defends the Liberty Dollar as a legal tender”. I haven’t seen the text of the entire e-mail, but in one of the excerpts given in the article, the author refers to the “real money” his group issues, versus “fake government money”. Whether this e-mail uses the exact term “legal tender” I don’t know, but I seriously doubt any of the purchasers could explain the difference between “real money” and “legal tender”. Since the e-mail says that the gold and silver backing the certificates has been confiscated, and is thus no longer accessible to the people who purchased the certificates, it pretty much proves the point: the certificates are completely worthless, and were always at huge risk of becoming completely worthless, and I seriously doubt that the issuing group’s marketing materials ever pointed that out to potential investors.