Convertibility

Ultimately, it is in our best interest to have direct convertibility between the American Liberty Dollar (ALD) and the US dollar (USD) as close to par as possible. Unfortunately, the difference between the world's only physical, value backed currency and the world's largest fiat currency is as large as the difference between right and wrong. But as the ALD grows up and the USD falls, the two currencies will cross on the chart and the scales of time will become a bellwether of our success.

On January 2, 2007, "Convertibility" commences between the ALD back into the USD on a very very limited basis. The model outlined below is to start small, test the supply and demand in these troubled waters, and grow the amount of the "Convertibility" as a measure of our success until the currencies cross on the above mentioned chart.

Convertibility promises to be a huge event, and a huge undertaking for the Liberty Dollar organization. Unfortunately, there is no way of knowing how much pent-up demand exists to convert ALDs back into USDs. But as this has been sought after for some time, it is widely acknowledged that the pent-up demand could also be huge.

For that reason, convertibility will be very limited initially. After the initial market blow-off, the volume of Liberty Dollars exchanged to USD will be raised until there are no limits on the amount of Liberty Dollars that can be converted on a daily basis. Initially, a maximum of $200 ALDs or a total of five exchanges will be filled per workday. No exchanges will be accepted on weekends, holidays, or days the Fulfillment Office is closed. Convertibility will be increased as the market matures.

As the Liberty dollar is a "free market currency" the exchange rate must be a function of the silver spot price just as the currency was initially issued. The exchange rate will be the widest immediately after the Liberty Dollar Moves Up to a new Silver Base. Then as the spot price of silver approaches the next Move Up of the Liberty Dollar, the exchange rate will approach par with the US dollar. And as Liberty Dollars are distributed at a discount, that discount must be given up when the Liberty Dollar is exchanged back into USD: discount when issued and discount when exchanged. Plus for the exchange service to be successful it must also work at a slight profit to cover cost of overhead.

Exchanges of Liberty Dollar into US dollar will be available for all three forms: metal, paper and digital. Please send in your Silver Libertys and Silver Certificates to the Fulfillment Office in Evansville. Your ALDs will be exchanged at the rate on the day it is exchanged. That date may be on the day it arrives, the day after, or the first day that an exchange is possible due to previously backlog. If your exchange is not filled within 30 days, we will inform you via email. Likewise exchanges of eLD over the Internet will be filled in the order received. Initially, all exchanges will be limited to $200 per day. No exchanges will be accepted for over $200 and only one exchange per person per month, please. If more than $200 in any form is send in, only $200 will be exchanged and the balance will be returned at your expense. All exchanges will be filled by a company check in USDs and mailed to the address provided or on file.