Greed

by D Thomas Jewett

  “Yep,” Dwayne mumbled with a full mouth. “President Bush has already nominated a new Fed Chairman.”

  “Who did he nominate?” Trish took a bite.

  “Ethan Cohan,” Dwayne replied, still with a full mouth.

  “Who?”

  “Ethan Cohan.”

  “Never heard of him,” she mumbled.

  “Me neither. Though I guess we’ll find out what he’s like.”

  The conversation paused.

  “What does that mean?” Trish asked.

  “It means that he’s inheriting an economy that’s going into recession.”

  “Why do you say that?”

  “Because Greenspan has spent the last couple of years raising interest rates and pulling money out of the economy.”

  “What’s that mean for gold?”

  “I’m not sure,” Dwayne said, wiping his chin with a napkin. “We’ve seen a pretty good run up on gold the last few years. I’m guessing that gold prices will continue to rise.”

  Just as Dwayne shoveled yet another spoonful of chili into his mouth, they both heard James’ boots shuffle into the house. “I'm home,” he shouted.

  Trish turned and called to him. “We're in here, having dinner.”

  James walked into the kitchen. “Any left for me?”

  “Chili,” Trish mumbled with her mouth full. “it's over in the pot.”

  “Awesome! I love chili.”

  James dished out some chili and sat down at the table.

  “Stuart's on the plane, I take it?” Dwayne asked.

  “Yep. He's on his way back to England. He flies to Minneapolis and then he picks up a non-stop for London. He'll be there by late morning tomorrow.”

  Now it was Dwayne talking with his mouth full. “Did he have a good visit?”

  “Yep.” James looked up from his dish. “He asked me to thank you two again.” And then James mimicked Stuart's accent. “I had a bloody mah-vah-las time.” James laughed as he said it.

  “Great!” Dwayne swallowed a spoonful. “Maybe he'll come over again sometime. If he does, I'd like to talk more about his sniping excursions.”

  * * * * *

  In June, 2006, the Fed Funds rate reached a plateau at 5.25%. The rising interest rates over the previous two years had caused a withdrawal of money and credit from circulation – which resulted in a slowing economy.

  Too, the subprime[29] mortgage securities market was now being squeezed. Higher interest rates found their way to home buyers who had purchased homes with variable rate loans; and as interest rates increased, the buyers’ ability to make mortgage payments became increasingly difficult. As a result, the investment banks who invested in these securities came under increasing stress.

  Cracks in the subprime Mortgage Backed Securities' (MBS)[30] market were beginning to appear. But so far, the cracks were not yet apparent in the economy at large ...

  Chapter 10

  Joe was in the den watching television; when he heard the front door open and close. “Is that you Jane?” he called.

  “It's me.” Joe heard a male voice reply.

  “Who's me?”

  “Len.” He heard the voice again.

  Len walked into the den. “Hi, Dad.”

  “Hey, how's it going?” Joe replied with a smile.

  “Fine, Dad. Just fine.”

  “While you’re up, can you get me a beer. And get one for yourself too.”

  Len went out to the kitchen and returned with two beers. He handed one to Joe.

  “So,” Joe looked at his son and smiled. “To what do I owe the honor of this visit?” He took a swallow.

  Len looked down at his beer and began peeling the label. “Mom asked me to come by.”

  “Yes?”

  “She told me that you lost your contract. And you've not been able to find anything else.”

  “That's true, son. What about it?”

  “She's hoping that you and I can talk.”

  Joe’s face took on an expression of curiosity. “Talk? Why would we not be able to talk?”

  “Why? Because it’s not something we normally talk about.”

  Joe paused, looking at Len. And then he said, “I'm sure we can talk, Len. What's on your mind?”

  “Dad. This economy we're in is not doing well. Since you're out of work, I'm sure you know that.”

  “Yep, I know it. But I also know that this ain't gonna last. It's gonna get better.” Joe took another swallow of beer.

  Len nodded. “Well, Mom told me that's what you've been sayin'.”

  “So,” Joe replied. “Isn't that true?”

  Len looked into Joe's eyes. “No Dad. The economy's not gonna get better.”

  “Bullshit,” Joe's voice quivered. “These things pass. It always gets better.”

  “Not this time, Dad.”

  “Why? Why are you sayin' this?”

  “Because, I work with a guy. Yeah, Dad, another guy who's a nurse.” Len chuckled. “Anyway, he received a minor in economics. And he says all the fundamentals are pointing to the worst depression in history.”

  “He sounds like a wacko doomsayer to me,” Joe's voice quivered even more.

  Len waited until Joe calmed down. “Dad. You need to make plans. You need to sell this house before you and Mom lose even more money in it.”

  “Aw – c'mon, son. This is California! You know that real estate always recovers. It'll always go up. Hell, everything will get better.”

  Len looked into his eyes. “Dad. Not this time,” he whispered.

  Joe paused, frowning. And then he asked, “did your friend say why he thinks things are gonna get so bad?”

  “Yeah – there's two reasons he gave me. The first is that the enormous world-wide debt will consume the world and cause the dollar to collapse.”

  “Hmmm,” Joe paused, absorbing Len’s statement. “And the second reason?”

  “He said that when the dollar collapses, it will destroy the entire world economy.”

  “And you believe him?”

  “Yeah, Dad. I believe him.”

  Chapter 11

  “You are soooo talented,” Brandy said for the third time since dinner.

  Bill smiled. Earlier, Bill produced their latest balance sheet and income statement showing big growth in their business. They tabulated two lines of business – custom minting and Freedom Dollars – and they were both doing extremely well.

  “I’d say a lot of the credit goes to you, Brandy,” Bill replied. “Hell, you’re the one who came up with our ‘marketing through dealer’ program.”

  “I’ll drink to that,” Brandy raised her glass in a toast, and they clinked their glasses together.”

  “Hell,” Brandy smiled and continued, “I talked with a couple of dealers who told me they’re seeing people using Freedom Dollars as a barter currency. I tell ya, Bill, we are on the road to something big here!”

  Bill smiled. “I think the barter currency is the biggest thing of all; because a competing currency is the only way to break the hold on the Fed’s monopoly.” Bill’s smile widened still more. “I notice that the Liberty Dollar and the Phoenix Dollar are also doing well.”

  “I wonder,” Brandy’s voice dripped of sarcasm, “how the Feds will respond to competition against their oh-so precious Federal Reserve Notes?”

  “Hell,” Bill replied, “everything we’re doing is perfectly legal. What can they possibly do to us?”

  Brandy turned and looked at him. “Besides shutting down our business and putting us in jail? – Not much.”

  * * * * *

  Liberty Dollars Not Legal Tender, United States Mint Warns Consumers - - - Justice Determines Use of Liberty Dollar Medallions as Money is a Crime

  Washington, D.C. (September 14, 2006) — The United States Mint urges consumers considering the purchase or use of “Liberty Dollar” medallions, marketed by the National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code (NORFED), to be aware t
hat they are not genuine United States Mint bullion coins, and not legal tender. These medallions are privately produced products that are neither backed by, nor affiliated with, the United States Government. Prosecutors with the Department of Justice have determined that the use of these gold and silver NORFED “Liberty Dollar” medallions as circulating money is a Federal crime.

  NORFED is headquartered in Evansville, Indiana, and the medallions reportedly are produced by a private mint in Coeur d’Alene, Idaho. NORFED claims that more than $20 million dollars worth of Liberty Dollar coins and notes are in circulation.

  Consumers may find advertisements for these medallions confusing and should take note of several issues related to them. The advertisements refer to the product as “real money” and “currency.” These medallions might look like real money because they:

  · Bear the inscriptions, “Liberty,” “Dollars,” “Trust in God” (similar to “In God We Trust”), and “USA” (similar to “United States of America”), and an inscription purporting to denote the year of production.

  · Depict images that are similar to United States coins, such as the torch on the reverses of the current dime coin, 1986 Statue of Liberty Commemorative Silver Dollar and 1993 Bill of Rights Commemorative Half-Dollar, and the Liberty Head designs on the obverses of United States gold coins from the mid-1800s to the early 1900s.

  However, despite their misleading appearance, NORFED “Liberty Dollar” medallions are not genuine United States Mint coins, and they are not legal tender.

  The advertisements confusingly refer to NORFED “Liberty Dollar” medallions as “legal” and “constitutional.” However, under the Constitution (Article I, section 8, clause 5), Congress has the exclusive power to coin money of the United States and to regulate its value. The United States Mint is the only entity in the United States with the lawful authority to mint and issue legal tender United States coins.

  Under 18 U.S.C. § 486, it is a Federal crime to pass, or attempt to pass, any coins of gold or silver intended for use as current money except as authorized by law. According to the NORFED website, “Liberty merchants” are encouraged to accept NORFED “Liberty Dollar” medallions and offer them as change in sales transactions of merchandise or services.

  NORFED tells “Liberty associates” that they can earn money by obtaining NORFED “Liberty Dollar” medallions at a discount and then can “spend [them] into circulation.”

  NORFED’s “Liberty Dollar” medallions are specifically marketed to be used as current money in order to limit reliance on, and to compete with the circulating coinage of the United States. Consequently, prosecutors with the United States Department of Justice have concluded that the use of NORFED’s “Liberty Dollar” medallions violates 18 U.S.C. § 486, and is a crime.

  When contacted, a spokesman for the Federal Reserve in Washington, D.C., said, “There is no law that says goods and services must be paid for with Federal Reserve notes. Parties entering into a transaction can establish any medium of exchange that is agreed upon.”

  Interlude

  The smoke billowed from the tip of the cigar and into the air. Traveling across the room, the smoke cast its wavy silhouette throughout the chamber, even as it melded with the shadows cast from the fire. Despite the warmth of the fire, the room felt cold, dark and emotionless, as though an evil spirit had drained all that was good and right from the room.

  Five leather-upholstered chairs were arranged in a semi-circle; all facing toward the fireplace. Each chair was occupied by a man, and each man was obscured in the shadows cast by the fire.

  With purposeful strides, a tall, dark, slender man walked into the room. The man walked to the center of the five chairs and remained standing, even as he slightly bowed his head. “You wish to see me, my Lord?”

  “Yes, Daniel.” Lord Basil was especially business-like. “It has come to our attention that some few people in the U.S. are minting coins and are attempting to promote these coins as money, or currency, if you will. We have reports indicating they are doing this with both gold and silver. We also have reports indicating some of these people keep gold and silver bullion in storage, and issue receipts that give a receipt-holder a claim to a stated quantity of gold or silver.”

  “Yes, my Lord. This is all true.”

  “Well,” Lord Basil continued, “We, The Council, have decided that these operations must be shut down immediately. And as much gold and silver as possible must be confiscated.”

  Daniel was taken aback by Lord Basil’s intensity. “Yes, my Lord. I will attend to it right away.”

  Then Lord Basil’s manner softened. “Remember, it is our control of money that allows us to control everyone and everything. We must never allow anyone to control their own money.”

  “Yes, my Lord.”

  Chapter 12 – Circa 2007

  Bill was not big into shopping; but every so often he drove south into Sandpoint. One of his favorite places was a local hardware store known as Winers. It was a town fixture, and had been thus for several generations – repeatedly passed down within one family. He stopped into the store whenever he came to town. He liked to chew the fat with some of the locals as he was checking out their new guns or tools.

  After his Winers stop, he usually dropped by his favorite coffee shop and sipped cappuccino while reading the newspaper. Bill did not take a newspaper at home because the carrier would only deliver it to their mailbox. But their mailbox was a half-mile from their home, and much too difficult a walk on a winter’s morning.

  On this particular day, Bill was browsing through the editorial page when a casually-dressed man abruptly sat down at his table. He looked across the table at Bill.

  Bill was startled as he quickly looked up. With a condescending tone, Bill asked, “May I help you?”

  “No.” The man’s lips replied through his manicured goatee. “But I may be able to help you.”

  “Oh really?” Bill’s gaze was steady as he looked into the man’s cold blue eyes.

  The man flashed a badge. “I’m Kehoe, with Treasury.”

  Bill’s gaze remained steady, even as his voice was firm. “What do you want?”

  “Your coin business, Mr. Ford.” The man replied. “We want you to cease and desist your minting operations.”

  Sometimes, a smile is not just a smile. Sometimes a smile is a pause. And sometimes a smile is angry, or worse. On hearing the man’s words, Bill smiled. It was the kind of smile that could kill. Kehoe knew that kind of smile. And knowing this, he unconsciously leaned away from the table; away from Bill.

  Bill focused on the man even as he remained under control. “Mr. Kehoe, you have thirty seconds to state your piece.”

  Kehoe’s lips and goatee again moved. “Your coins are being used in commerce. Even though the usage is small, we see it increasing.” Kehoe's voice took on a venomous tone. “Mark my words, Mr. Ford, we will not allow any gold or silver coin to compete as legal tender in commerce. Shut down your production, or we will destroy you.”

  With that, the man stood up from the table. He turned and walked out of the shop.

  For some time, Bill sat with his coffee. Shit! Who are these damn people!

  He finally paid his bill and walked out of the shop. He stood at the entrance and scanned the street, the sidewalks, and the nearby buildings; looking for any sign that he was being watched. But there was no sign.

  Time to dust off the bug sweepers, he thought.

  He went back to his car and headed north to his home. And as he was driving, he wondered how he and Brandy would handle this.

  * * *

  Almost immediately after the episode with Kehoe, he made a point of bug sweeping their home, office, cars, and anywhere else they frequented. He also spent considerable time searching for recording-type bugs; and he examined their home and office to find out if anyone had entered undetected. Curiously, he found no sign.

  Then he ran a test of their cell phones. He turned off their phones, and then the
two of them talked about something innocuous – a dinner date. Nothing. They detected no RF emissions and no sign that their cell phones were bugged, at least while they were turned off.

  * * * * *

  Autumn in Montana is beautiful. The big Montana sky, the mountains, the crystal clear streams, the leaves changing – all combine to create the rugged beauty and energy of the Bitterroot mountain range of western Montana. And with a pristine setting, the Golden Mint fits in perfectly with Montana’s rugged wilderness – standing out like a picture-perfect postcard.

  It was early afternoon when Bill and Brandy drove onto the Mint’s grounds. They parked in a visitor’s space and walked into the lobby.

  The receptionist’s smile broadened as they came in. “Hi, Bill. Hi, Brandy. How are you folks today?”

  “Doing well,” Brandy replied. “And you? Are you doing okay?”

  “Absolutely,” Marlece smiled. “The world is my oyster!”

  “Is Murray available?” Brandy asked.

  “I think so. Let me give him a ring.”

  The receptionist punched some buttons on her telephone, waited, and then said. “Mr. Ford and Ms. West are here to see you.” She paused. “I will let them know.”

  The receptionist nodded to them. “He will be right out.”

  Murray soon came out and greeted them. Bill and Brandy signed in and he led them back to his office.

  When they arrived in Murray’s office, Bill said, “Thanks for taking some time to talk about the new coin design.” Bill handed Murray a piece of paper, and gestured at Murray to look at it.

  Murray opened the paper. It read:

  Turn off your cell phone.

  He looked up just as Brandy had placed her finger up to her lips. “Shhhh,” she whispered.

  Bill continued talking even as he swept the area for listening devices. When he was certain they could not be overheard, he breathed a sigh of relief and turned to Murray.

  “Murray, we need your help.”