LIBERTY DOLLAR NEWS: February 2003 Vol. 5 No. 2 ACTION ITEM: Send out the new Press Release to your list. Take it to your local newspaper. Most articles have come about due to RC action. Remember, the more money circulates – the more it multiples. Circulate the Liberty Dollar and prosper while returning our great country to value – one dollar at a time. TABLE OF CONTENTS:

1. NEW Press Release: CBS Investigates Liberty Dollar
2. Wanna Make More Money?
3. Steve Spends The Liberty Dollar!
4. GOLD Libertys Now at Quantity Discounted Prices
5. NEW Merchant Display “Ask for Your Change in Silver”
6. NEW Liberty Merchant Label
7. Update on the Liberty Festival
8. Article – “Greenback to Slide”
9. Instance of the Month
10. Question of the month
11. Redemption Center of the Month
12. Quote of the Month
13. NEW Press Release: CBS Investigates Liberty Dollar PRESS RELEASE - 18 February 2003 - For Immediate Release CBS AFFILIATE INVESTIGATES LIBERTY DOLLAR KEYE TV, the CBS News Affiliate in Austin Texas, aired their special investigative video report on Thursday, 6 February 2003 . The video is now available by web-accessible archive. To test the acceptance of The Liberty Dollar, KEYE chose three businesses at random. An Austin area Redemption Center was asked to offer the new currency at each business while being video taped. All three businesses accepted, even though they had not heard of The Liberty Dollar. Later, one merchant claimed he wanted to exchange his Liberty Dollars for Federal Reserve Notes, but he has never responded to offers to do so. The score stands: three for three. The month long investigation also revealed that:

• The Liberty Dollar is legal, just as the US Treasury, Secret Service, and the Federal Reserve have acknowledged.
• The $10 Silver Liberty is worth $10 in commerce as promoted by the non-profit, educational organization that distributes the new gold and silver currency.
• Many people, even if they have never seen or heard of The Liberty Dollar, readily accept it in payment for their goods and services, even though banks still won't take them. Their attitude? "Who cares? I got silver!" The three minute video Special went on to explain that The Liberty Dollar is supported by 1500 Redemption Centers nationwide and can be redeemed at most of the 26 Redemption Centers in Austin. There is now over $3 million Liberty Dollars in circulation. KEYE TV placed the news video in their web site archives. To view it, go to: http://keyetv.com/news/investigates/index.shtml and then select the report "$10 Liberty Coin." The video special also provided the web site for the Liberty Dollar www.LibertyDollar.org, which explains why many people are supporting the use of gold and silver as money, just like our Founding Fathers specified in the US Constitution. More information for the press is available at www.LibertyDollar.org/press/ Contact: Michelle Jones, [email protected]. 888.421.6181. Evansville . IN.

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2. Wanna Make More Money? How many times have we heard this question? Usually, when I mention to someone that they can make money with The Liberty Dollar, they want to know how? Please take a moment and re-read this quick story. You can copy and paste or you will find it in the Liberty Dollar Story on the golden rod paper. Either way, it has important information before we sink into the future: How To Make 40% On Your Money? On a recent trip Bernard was visiting with John, a RC in a remote area. And it wasn’t long until Bernard asked John if he would like to ‘make more money’ than the 5% on the paper currency. “ Make more money?” John asked as his eyes widened and he took off his baseball cap. "How do I do that?” John inquired? “Well John, when you became a Redemption Center did you get some examples of the one-ounce Silver Libertys that back up the paper currency? And did you know that you can get them at a discount?” Bernard asked.

“Yeah, I think I did. Something like, if you get 10, you can get them at $9.00 each?” “That’s right. Redemption Centers can get Silver Libertys at a discount and use them at a profit. And if you ordered 100, they are only $7.50 each.” “$7.50? What’ll I do with 100 Silver Libertys?” “Well, do people ever come in to your store and buy a six pack of beer and give you a $20 bill?” “Yeah, all the time! It seems like I’m changing $20s all day long.” “That means you are sitting on a gold mine! If you got a 100 Silver Libertys and put some of them in your cash register, you could offer them in change. That means that you would make $2.50 every time it was accepted, which is 25…” Bernard didn’t even get to finish “25 % on your money”. When John jumped up and yelled, “25%!? That’s more than I get on the beer!” “That’s right, John. And when people walk out with a six-pack in one hand and a Silver Currency in the other, which one do you think they’ll be talking about? Here’s a clue: It ain’t the beer.” “That Silver Currency sure is a conversation piece!” “Well, John, it is a lot more than just a conversation piece – it is good for your business and good for America ! Pretty soon word will get around that you give out Silver Currency as change, and that word- of-mouth will drive more traffic to your store. That's why it is called a traffic builder.” Rumor has it that John ordered 1000 Silver Libertys even before Bernard could get to his car at only $1.50 over the current silver price of $4.50 per ounce. He got them at $6.00 each and started exchanging them immediately at $10.00, for a 40% profit! Then a few months later, when John called the NORFED office to order some Silver Certificates, the office ladies thought he made a mistake and asked him if he meant Silver Libertys. No, that wasn’t the case. As John explained, “People have got so much silver around here, now they want the convenience of the Silver Certificates!” And when John called in another order, he explained what a traffic builder the Silver Currency had become. As John commented, “Do you know that people are coming all the way from Charlotte to visit

my store! That’s over 50 miles away! All because I’ve got the only Silver Currency around!” EDITOR NOTE: You don’t have to have a business to use The Liberty Dollar at a profit. If you are using those dreaded non-Federal, non-Reserve Notes, you can be profiting from The Liberty Dollar today! 3. Steve Spends The Liberty Dollar! Last month, when Steve Coerper was the Redemption Center of the Month, his list of uses of the Liberty Dollar was included. Unfortunately, it seems that not many readers made it to that article, so here it is again. It is important, that we develop the complete Liberty Economic Model. The Liberty Dollar was NOT designed to be bought and held. It was specifically designed to be used (at a profit). Remember, the more money circulates – the more it multiples. Circulate the Liberty Dollar and prosper while returning our great country to value – one dollar at a time. List of Steve Coerper's expenditures in January using The Liberty Dollar in Raleigh , North Carolina . Please notice how many places ask for more! Sitar India Restaurant - "Can you bring me ten more?" Citgo Service Station - $10 for gas on two occasions. Kerr Drugs - Will accept all the Libertys I care to spend there. Quik Gas - Gladly took first Liberty , then complained that "my bank won't take them." I offered to take the Liberty back for FRN, but he declined my offer. Kanki Japanese Restaurant - Lady wanted one or two for her son's collection. Then told me later that she had contacted the Secret Service and learned they are not "legal tender" or "lawful money." Wrote a letter of clarification but haven't done any other follow-up yet. Snack bar at Courthouse - "Wow!" Hardee's Restaurant - $10 for breakfast Wendy's - "Sorry, can't take it. But can I buy it from you for $10?" Lowe's Home Improvement - "Can you bring me three more?" Fallons Flowers - "Can you bring me five more?" Chinese Restaurant - $20 for dinner Shoe Repair - $10 for labor. "Can you bring me more?" Parking ramp - $10, two different ramps on two occasions. Red Lobster - $50 for dinner Hospital cafeteria - $10 for lunch School lunch - daughter spends one every week. Wal-Mart - acceptance approved by office Sam's Club - acceptance approved by office Food Lion Grocery store - accepted whenever I shop there. Golden Corral restaurant - $10 Quail Corner Dry Cleaners - $10 on at least two occasions Buffalo Bowling - for bowling and also at snack bar. Office Max - whenever I shop there. Probably 5 occasions so far. Paper City party supplies - daughter bought Homecoming materials there. $10 TGI Friday - $50 for family dinner. Subsequent visit they said, "No” Haven’t followed up yet. Gave

waitress a silver Liberty for a tip, and she's a friend for life. Kroger Foods - $10 for groceries with management approval. Victory Baptist Church offering - placed silver in envelope with letter of explanation. Never heard back, which really surprised me. Hands and Heart Medical - took $10 co-pay then requested FRN "our bank won't take them." Chiropractic Partners - $10 co-pay, $20 for food supplement. They are happy to accept them, and clearly understand what they are. Great Clips - $10 for a haircut. PetsMart - $10 on several occasions for cockatiel supplies. (I have 5 – they are great pets!) Dominos Pizza - $10 on each of two occasions. Right on Steve! 4. GOLD Libertys Now at Quantity Discounted Prices If you have ordered Gold Libertys recently, then you were probably pleasantly surprised at the price. While gold has been going up, we have dropped the price! That’s right. Now you can get Gold Libertys at quantity discounts – just like the Silver Libertys! Check out these new low, low premiums for Gold Libertys: 1 – 4 at Spot + 10% 5 – 9 at Spot + 9% 10 – 24 at Spot + 8% 25 – 49 at Spot + 7% 50 – 99 at Spot + 6% 100+ at Spot + 5% Although I am still a BIG believer in silver, I know gold is still a favorite. 5. NEW Merchant Display “Ask for Your Change in Silver” Have we got a treat for you and your business! The new Merchant Display is now ready! The new display, which holds brochure simply directs your customers to “Ask for their change in Silver”. It is designed to make it easier for businesses to introduce and profit by using more Liberty Dollars. Please go to http://www.libertydollar.org/Merchant%20Display.htm and check out the photo for yourself. Then call NORFED (888.421.6181) for the special introductory special price – during March only. 6. NEW Liberty Merchant Label And to go along with the new Merchant Display is a “new” Merchant Label. OK, so it is not real new. In fact it is exactly like the “new” static cling 2-1/2 inch by 4-inch label which we brought out last month. But this one is the “peel and stick” kind. And it just happens to be the same size as the static

cling label so it fits on the back, so when the label is put in the window, it can be read from both inside and outside…just like Visa and MasterCard! It is also the same label on the new Merchant Display, so it all works together for more usage, profits and fun! Please call NORFED (888.421.6181) for a free sample or to place your order today. 7. Update on the Liberty Festival Congratulations NORFED!!! Last month I requested $50,000 in loans to self-finance the Liberty Festival. So I am very happy to say that we did it! Congratulation! As those who choose to step forward found out, there were distinct advantages in addition to the 10% interest (or finders fee for those who don’t support usury). We are now into the difficult stage of the final negotiations with hopes we can wrap it up shortly and announce all the details very shortly. Please stay tuned as the Liberty Festival promises to be quite an event!!! My sincere thanks to all those who inquired and stepped forward with loans to make the Liberty Festival a reality. 8. Article – Greenback to Slide Greenback to slide as US abandons 'strong dollar' The United States is set to weaken its seven-year commitment to the 'strong dollar policy' this week and accept the greenback's slide on the world markets. This tacit devaluation will come as figures out next week show that the US economy hit a wall in the last quarter. Senate confirmation hearings for Treasury Secretary nominee John Snow on Tuesday are likely to reveal a new 'neutral' stance on the dollar. 'The strong dollar policy is now a liability rather than an asset for the US economy,' said Stephen Jen, currency economist at Morgan Stanley. 'I am looking for a new definition of dollar policy that would be an implicit endorsement of the on-going correction of the dollar.' The Senate finance committee has been lobbied fiercely by industrialists and politicians who believe that an overvalued currency has suffocated US manufacturing. The lobbyists hope to pin down Snow, a railway executive, and persuade him to move out of the shadow of Robert Rubin's strong dollar mantra, first aired in 1995. In the past month the dollar has been falling of its own accord. The slide began in December after the sackings of Paul O'Neill, the previous Treasury Secretary, and Larry Lindsey, the White House chief economist. The dollar quickly slumped by 3 per cent against the Euro. Since then it has been pummeled by market uncertainty over international splits on invading Iraq . 'The theme is "flee the dollar" on the Iraq scenario and the likelihood the US is going to launch a unilateral attack against world opinion,' said Mike King, a trader at Commerzbank.

Dealers say that the market is reluctant to hold dollars ahead of tomorrow's United Nations inspectors' report and President Bush's state of the union address on Tuesday. Since December the dollar has slumped against the Euro, reaching a three-year low of 92.5 cents to the Euro (1.08 Euros to the dollar) at Friday's close. 'We are on the verge of a possible dollar crisis given this unusual period where investors don't like any US assets - bonds, equities, or the currency. But it's also clear that the US economy needs all the help it can get,' says Avinash Persaud, managing director of research at State Street Bank. Economists at Lehman Brothers believe that the US economy is 'dead in the water'. Thursday's fourth quarter GDP growth figures will show US growth slumping to zero, says Lehman. http://www.observer.co.uk/business/story/0,6903,882092,00.html [Editor note: This news is really a bit old. Between Thanksgiving and Christmas, the US Dollar lost 20% against the Euro! And in January/03 alone inflation was up 1.6%, that is equal to 20% annualized! At that rate the government could steal all your money in five years! Plus the January/03 trade deficit was up 10% in a month!! If this is not cause for concern, and an urgent need for a value backed currency, you are asleep! Please safe guard your money, family, community with the value and purchasing power of The Liberty Dollar immediately.] 9. Instance of the Month After two months in a row of “instances” involving police officials and the use of the Liberty Dollar, I am very happy to report that the number of “instances” for February is ZERO! This is very good news for our “Free Money Movement” and brings a bit of relief to the national organization. As you may recall, we ask you to report every instance to NORFED. Please continue to bring any and ALL “instances” to NORFED’s attention as soon as it happens so we can get the facts straight and assist you in any way we can. SO BE CAREFUL: If a merchant has “Acceptance Remorse” and asks you to pay in FRN or exchange ALD back into FRN, please do so as soon as possible. But be aware, never make such an exchange UNTIL the Silver Liberty is returned to you as you run the risk of never getting your Silver Liberty back. Please be aware, such an exchange of FRN to ALD or ALD for FRN must happen at the same time, or you may lose your property. 10. Question of the month QUESTION: Why can’t I use the same passcode for my Online Liberty Dollar account as I have on my Redemption Center ? And why don’t you combine them into one login? ANSWER: Of course, as a sovereign individual, you can use the same passcode, but it certainly would not be prudent. The software which you login to access your Redemption Center info also provides links for the Affiliate Program and other services. The software for the digital Liberty Dollar Online is totally different and is much more secure because it must protect your money! By using the same passcode (which only you control) you open yourself to someone cracking the lower level RC passcode and using it to access your Liberty Dollar Online account. It is for that reason, we urge you most

strongly, DON’T use the same passcode on both logins. Please note the Terms of Service which you agreed to when you opened your Online Liberty Dollar account, as you are the responsibility party, not NORFED. And as it is impossible to combine these two different programs, two different logins are required to provide the best level of security to you. 11. Redemption Center of the Month The television star of the recent investigative report by KEYE is this month’s Redemption Center of the Month…non other than Chris Athanas! Although NORFED is blessed with many outstanding RCs, I have had the good fortune to stay at Chris’ house many times while visiting Austin and learn first hand how good he is. These visits have given me a unique opportunity to find Chris be a truly amazing individual with very similar interests in many fields. But Chris is not the RC of the MO because of his hospitality, but because of his outgoing support of The Liberty Dollar. One of the first RC ever, Chris has showed that he supports NORFED goals 100%. I am honored to have someone with Chris’ determination, skill and efforts out there circulating the new currency like few do. Congratulations Chris and thank you! 12. Quote of the Month "Every individual necessarily labors to render the annual revenue of society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is, in this, as in many other cases, led by an invisible hand to promote an end which was not part of his intention." Adam Smith, Wealth of Nations My sincere thanks to all the Redemption Centers and Supporters who are making The Liberty Dollar work in the all-important market place. Bernard von NotHaus Monetary Architect / Editor