Dear Ken,

I do have a working e-mail address for Charles Evans,
to which I'll send privately, later today (from
another machine elsewhere in the continuum), your request
for it.  I have it from JP May, and don't have instructions 
not to pass it along, but I treat it as the property of
Mr. Evans, and won't disclose it on a public forum.

> John Wayne Zidar has been indicted for mail fraud and 
> laundering the proceeds of a ponzi scheme.  

Interesting.  One of the peculiar difficulties of the 
USA feral gummint is that it fails to indict member
banks of the Feral Reserve banking cartel system for
their ongoing Ponzi scheme, or members of Congress
for the Ponzi scheme which is Socialist Security.
(I capitalize the word "Ponzi" because it is the name
of an innovative fraud artist.)

> The indictment alleges that Mr. Zidar invested
> $2.4 million of the stolen money into Gold and Silver 
> Reserve, parent company of e-gold.  

An interesting point, and one which certainly begs
further clarification from the folks at G&SR.  Perhaps
a public statement would be forthcoming.

> The indictment also states that Mr. Zidar invested
> $100,000 of the investors money into Norfed, 

I have read in private e-mail a vigorous denial of
this statement by an officer of NORFED.  It is not my
practice to copy private e-mails into public fora
without permission, but I feel confident that the
gist of the statement is public knowledge available
on the NORFED.org web site: NORFED is a private,
non-profit group, and does not accept investments.
It is not a shareholding outfit.  It does issue the
American Liberty silver-backed specie and paper
certificates, so conceivably Zidar owned 10% of the
now million dollars of American Liberty money in
circulation, either coins or paper certificates.

> which shares a common officer, Bernard Von Nothaus, 
> with 3PGold.  

I'd like to point out that sharing a common officer does
not "pierce the corporate veil."  As well, I think there
is some confusion on what is 3PGold.  I believe 3PGold
and 3PPay are services provided by 3PSecure, which is
a company emphasizing the three Ps of Privacy, Property,
and Profit, or something like that.  It is of further
interest that 3PSecure is domiciled in Dominica, and
uses offshore servers, I think based on Sealand.  That
makes it much more difficult for USA feral gummint types
to subpoena its records or infringe on its activities.

I should point out that there is a contrast here to the
e-gold and OmniPay services which involve, last I did
a look at the IP addresses involved, servers based in the
USA.  Given that y'all have account histories stored on
e-gold.com servers which are within the litigious and
prosecutor-favoring jurisdiction of the USA or one of its
several states, the matter is of some pitch and moment.

> Since the federal government has seized all of Zidar's 
> assets, 

I think that is a statement assuming facts not in evidence.
The feral gummint may well have ordered the seizure of
these assets.  It is less clear that they have taken
possession of these assets.  As many of the assets are
alleged to be offshore, that would seem to be a matter
of some difficulty.

> presumably they have seized his stock in G&SR, 

Perhaps.

> making the US Federal Government roughly 25% owner of G&SR.

That presents some interesting points of law.  Private
property may not be taken for public use without just
compensation, per the Fifth Article of the Bill of Rights.
A due process of law is necessary to convert these assets,
although the civil forfeiture statutes which are approved
of by the Supreme Court of the US (SCOTUS) do make it
easier than I think it should be for such assets to be
converted to government possession.

Since e-gold is now based out of Nevis, and is separate
in many regards from G&SR, as well as from OmniPay, it
is of some interest to ponder the relationships among
these entities.  In particular, I'm not sure how this
difficulty with 25% of the shares outstanding of G&SR
affects me as an e-gold user, and invite comments from
Messrs. Jackson, Ray, et al.

Eric Gaithman writes:
>     As a 25% shareholder,  

Again, I don't think the USA feral gummint is yet a
shareholder.  They certainly weren't at the time of
the raid on Parker.

> (Would the U.S. Government then favor E-gold, Ltd. 
> in that patent suit?)

The USA has gained significant notoriety in its behavior
toward private property.  It typically enforces patent
rights to encourage patent applications, a small source
of revenue for the beast.  However, it also uses the
ECHELON database to extort funds from major companies
by passing on trade secret information to competitors,
or selling the secrets gathered from competitors, to
USA firms.

> Wouldn't it be cool if you could then go into ANY 
> U.S. Government office to buy e-gold?

Well, no.  Given the tight relationship between the
feral gummint and the Feral Reserve System, I doubt
that e-gold would soon displace FRNs.

>  *grin*

Indeed. <grin>

Snow Dog comments:
> After the trial, the assets will probably be either 
> returned to the owner, or sold at auction.

Keeping possession of assets seized in a criminal case is
not easy, even if the criminal charges are found to be
without merit.  Typically, the owner must respond to a
civil asset forfeiture proceeding against his assets,
often being required to post a bond of the same value as
the assets.  Since civil asset forfeitures are "civil"
proceedings against assets, rather than criminal 
proceedings against a person, and since assets don't 
have constitutionally guaranteed "rights," the private
owner is at a serious disadvantage in court.

However, it is true that the assets thus seized may
be returned to the owner based on a court order 
dismissing the criminal charges, if that ever happens.
It is also true that the federal seizure of assets
does not operate as a change of ownership and control
of the shares of stock, and G&SR may have bylaws in
place which prevent the voting of stock which is in
a peculiar situation such as the Zidar shares. (G&SR
might adopt such bylaws promptly.)

Joyce Marie asks:
>So what exactly does this mean to us?

I think the correct answer is: e-gold has come to the
attention of powerful persons.  That can't be good for
any of us in the long run.

Dmitry Salnikov asks for opinions on his related idea
that any thing of value may be used to back a digital
currency.  Very true.

For example, in the 1870s, Lysander Spooner (whose
Republic Post competed successfully with the USA
Postal Disservice, reducing the cost of a first class
postage stamp by more than half, until it was shut
down by SCOTUS) proposed a banking system based on
land as the underlying item of intrinsic value.

In some ways, Feral Reserve Notes are based on labor
as the underlying item of intrinsic value, since they
are backed by "the full faith and credit" of the USA,
which has the power to coerce taxes from the laboring
populace of these united States.  I use this example
in a deliberately specious fashion.

Cambist Exchange Service is very interested in adding
other items of exchange to our automated exchange service.
This Russian link exchange system is an interesting
candidate.

>and why it does not need gold
>when it has simple product.
>
>Any opinions?

Respectfully, the poet is mistaken.  Gold has market 
preference.  Just take a look at all the competing metals
that e-gold offers: silver, platinum, palladium, and gold.
Of these, gold is by far the preferred store of value.

Gold has, for centuries if not millennia, been the
preferred store of value.  In ancient Europe, Celtic
tribes were headed by chieftains who wore golden torcs
as a symbol of their power, and as a tangible sign
of their wealth.  In modern Thailand, people buy
24k gold chains, each link of known weight, and use
these links in trade.

Gold is only one possible item of intrinsic value
which may be used in exchange.  The power of the
computer age is that we can establish systems to
convert from one unit of exchange to another very
quickly.

There is an analogous situation in calendars.  I've
created a Texas calendar, which I sometimes use for
fun.  The Islamic calendar is in widespread use, and
so is the Jewish calendar.  However, worldwide, the
calendar with primacy is the one developed by Pope
Gregory some centuries ago, known as the Gregorian
calendar.  Scientists use a Julian calendar which has
a starting date many centuries before the birth of
Jesus (whose Gregorian birthdate has been established
by archeologists as 4 B.C., a rather droll commentary
on calendar reform).  Any calendar may be used by 
anyone, and conversion to the aforementioned widely
used calendar systems made possible by simple programs,
many of which are open source and readily available.
So, you could have your own personal calendar system,
and I mine, and we would communicate dates to each
other in a fashion that allowed for conversion among
the various systems.

The promise for individual liberty is vast, indeed,
since conformity is no longer essential to commerce.
Standardizing calendars, standard time zones, and
standards like "Daylight Savings Time" operate as
conditioning systems, tending to normalize ideas about
time, dates, and other items.  So, too, do nationalist
currencies.  Computer technology, or, more generally,
information technology, allows for individual variance
to the point of absurdity without encumbering anyone
with chaos.

And that's enough from me, for now.

Regards,

Jim
 http://www.GoldBarter.com/ --> c'mon! sell something!


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