THE HISTORY OF MONEY

Reflect with me for a moment upon the nature of money, wealth and prosperity. And the more time you
take reflecting upon it, the more varied and abstract your thoughts concerning money, wealth and
prosperity will become. "Consider first money, and soon your mind will guide you to understand the true
nature of money. And you will know that the value of money is determined by you, with every transaction
that you enter. And that the value of money is determined by the number of zeros on the bill. And a zero is
nothing." What we call money is not money, and the only value it has is the value you and I give it. The
pieces of paper you and I pass around are Federal Reserve Notes. They look like money to us because we
have been told that they are money and because they spend like money, but they are not money. Money is
meant to be a medium of exchanging value for value.

To understand the problem, let me explain how paper began to circulate as money: Imagine that you are in
England around 1660, at a time when the only money is gold or silver coins. These are minted and put into
circulation by the king. When the king is short of gold or silver and in need of something, he adulterates the
money by diluting the gold with copper. The newly minted coins are the same size but with less gold. If the
subjects refuse to accept these adulterated coins, no matter, the king merely has his court rule that the
money is worth whatever he says it is worth. After all, he is the king. Imagine you have worked hard and
saved some money. Where will you put that money for safekeeping? In most communities there is a
goldsmith who has a large iron box where he keeps his gold and silver "safe". You ask him to keep your gold
and silver "safe", he agrees and you pay him a fee for his service. As proof that he has your gold and silver,
he issues you a receipt.

The next time you want to buy something, rather than first redeem your gold and then buy whatever you
want, you use your gold receipt. It is quicker and easier. As long as the seller can go to the goldsmith and
redeem the certificate for gold everything works out fine. This is probably how paper receipts began to
circulate as money. Now, place yourself in the position of the goldsmith. How long would it take you to
figure out that very few people ever come at the same time to redeem their gold certificates? Maybe one
day, like the king, you find yourself short of gold and silver. Could you say no to temptation, or would you
tell yourself, 'I'll issue a gold receipt without any gold to back it up because, after all, who is going to check
up on me. Besides, I'll have the gold in a few days to make it right'. You quickly learn that spending your
own gold receipts causes certain unsettling questions to be asked. You come up with a new plan that gives
you something for nothing but doesn't make it too noticeable: you loan gold receipts and collect interest. As
long as you don't get too greedy, you can get away with this something for nothing scheme. Soon you and
other goldsmith/bankers are lending four times as many paper receipts as you have in gold. This process of
the goldsmith/bankers got a boost when the king of England was in need of a great deal of money to fight a
war. The king turned to William Paterson.

Paterson and his friends pooled their resources and came up with £72,000 in gold and silver. But instead of
lending the gold and silver directly to the king, they formed a bank and printed paper receipts equal to 16-
2/3 more than their gold and silver reserves. They lent the king £1.2 million at 8-1/3 % interest per year.
Their yearly interest was £100,000. The king didn't care; he had a war to fight. After all, he would simply
raise the taxes on his subjects to pay the interest. Paterson and his friends were protected. He had the
foresight to lend his paper receipts to the government. Since these receipts were needed to fight a war, the
king couldn't allow them to fail. He declared them legal tender. These receipts were now regarded the same
as the gold for which they had stood. A new golden rule came into being: Them that have the gold ... rule!
Since paper money first began circulating, the situation has changed little. When the federal government
wants more money, it borrows it from and through the private banking system, the Federal Reserve. The
owners of the Federal Reserve are in no need of gold or silver to back up their loans to the government.

Their money is legal tender. Unlike Paterson's time, there is no gold or silver in the system. The bankers are
still receiving something for nothing. And you, as a subject, give the bankers 1/3 of your time when you pay
federal and social security taxes. Most everyone knows that, at one time, our government actually had gold
and silver backing our currency. Some people believe the gold and silver may still be there. Most people
don't have a clue that a few, very rich individuals are in control of this country through their ownership of
the privately owned Federal Reserve Banks.

To understand what is happening with our money today we need to refer to Article I, Section 8 of the U.S.
Constitution which says: "The Congress shall have Power to coin Money, regulate the Value thereof, and of
foreign Coin, and fix the Standard of Weights & Measures." It is important to understand that the "power to
coin money" is just that, coin, not print, because if you have the power to print money you end up with
paper money that is worthless - just as worthless as the goldsmith/bankers in England.To ensure that no
one but Congress had control of this country's money, the founding fathers also added Article I, Section 10
which reads: "No State shall coin Money; emit Bills of Credit; make any Thing but gold and silver coin a
Tender in Payment of Debts." With these two articles of our Constitution in place, the founding fathers felt
they had ensured the stability of the country's money supply.

In 1792 Congress passed the first Coinage Act which set the Standard Unit of Value and the ratio of gold to
silver. A dollar of gold was defined as 24-8/10 grains pure 9/10 fine, and a coin dollar of silver at 371.25
grains .999 fine or 412.5 grains Standard Silver. Several times in our country's history Congress has
enacted laws that have violated the Constitutional provision governing money. The last time Congress
unlawfully turned over their responsibility to manage the country's money supply was with the enactment of
the Federal Reserve Act in 1913. For a period of time, the Federal Reserve willingly exchanged gold and
silver for paper certificates on demand. But as the depression of 1929 deepened, Congress passed a law
making it unlawful to own gold, and the banks stopped redeeming paper money with gold in 1933. In 1968
all that was left supporting our money was silver, and that was removed by presidential order. Today, there
is no gold or silver backing up our money - only the full faith and credit of the United States government.
The federal government has pledged you and your ability to earn money as collateral to the international
bankers for over $4 trillion in loans. This is a great deal for the bankers. The bankers put up nothing, and
you, as a slave, turn over to the bankers 1/3 of your income to pay your "fair share" of the federal income
tax. Your income tax does not pay for the running of the federal government. It pays the interest on the
national debt - a debt that was created as a bookkeeping entry. The federal government is out of control. In
1992 it spent $1,448 trillion. That's $3,967,123,000 each day of the year. The cost to the average
household was $291 a week. As of 1995, every dollar the federal government collects in individual income
tax goes to pay the interest on the national debt.

LOCAL BANK FRAUD

The fraud of the bankers does not stop with the owners of the Federal Reserve. It continues through our
system and includes every bank, every savings & loan and every credit card company. The fraud reaches
into every banking transaction that you have ever been a party to. All of them, without exception, extend
the control of the bankers over our lives.

Consider this scenario. You want to buy a used car. You arrange with your bank (bank A) for a loan. The
banker gives you a check made out to the car dealer for $5,000. You give the check to the car dealer. The
dealer turns the car over to you and deposits the $5,000 check into his bank (bank B). It happens all the
time. Now, let's take a deeper look at the transaction. Did any money leave the bank? No. The money never
left the bank because the banker didn't give you any. He gave you bank credit. The courts have ruled that
"A check is not money" - School Dist v. U.S. Nat'l Bank, 211 P2d 723); "A check is an order on a bank to
pay money" - Young v. Hembree, 73 P2d 393. The courts have further ruled that "National banks may lend
their money but not their credit" - Horton Grocery Co. v. Peoples Nat'l Bank 1928, 144 S.E. 501, 151 Va.
195, because, unlike the Federal Reserve banks, local banks are not allowed by law to create money.
However, they do it all the time.

WHAT IS BANK CREDIT?

Bank credit is the biggest fraud going. It is the creation of bills of credit by private corporations for their
private gain. This is one of the most important issues we have to face today because 95% of the nation's
money supply consists of bank credit. Bank credit, unlike Federal Reserve Notes, is not something tangible
that you can see or hold. The closest you will ever get to seeing bank credit is to look at your checkbook or
credit card. Essentially, bank credit is nothing more than the creation of numbers which are added to your
checking account in a bank's bookkeeping department. When you write a check, numbers called dollars are
transferred from your checking account to someone else's checking account. The creation, transfer and use
of bookkeeping entries as money is what bank credit is all about. Bank credit is first created when a banker
hands you a check after you take out a loan. This check is not money, but a promise from the bank to pay
you money. The bank might have enough money to cash your check, as long as everyone doesn't bring their
checks in at the same time. The basis for the fraud charge is that the bank has written a check against
funds which do not exist. The banker gambles that you will use your checking account in place of cash. Most
of the time the banker is right, people usually deposit the check they receive in their checking account and
then spend it by writing other checks against the bookkeeping entries which have been added to their
account. Most people do not know that a check is not money, that bank credit is not lawful money, and that
the courts have consistently ruled against the banks for lending credit.

FRACTIONAL BANKING

When the car dealer deposits your check into his account, bank B then has access to $5,000 more that it
can make loans against. Modern banking regulations allow banks to loan up to 90% of all money deposited.
With sleight of hand and the blessing of modern bookkeeping entries, bank B can now lend an additional
$4,500. A different customer at bank B wants a loan. S/he borrows the $4,500 and deposits it in bank C.
Now bank C can loan 90% of the $4,500 ($4,050). All the banks (A,B & C) charge interest on each of the
loans. The process can go on indefinitely. The bank credit was created out of thin air. The Federal Reserve
Bank of New York offers The Story of Banks, an illustrated booklet that explores the creation of money,
credit, bank loans and more. For free copies, call 212-720-6134. Most of us have several of these bank
loans. Many of you have been forced into bankruptcy and forced to give up your homes because of this
fraudulent system.

SECURED CREDIT CARDS

Suppose for a moment that you have bad or limited credit and you apply for a credit card. Given these
circumstances, you would be required to put up some collateral. The bank would probably ask you to open a
certificate of deposit (CD) for 125% of the credit card's credit limit. (If the credit card had a limit of $1,000,
you would have to put up $1,250 in collateral). Note that the bank has nothing to risk when you use your
credit card. You have made the arrangements with the bank to lend you up to $1,000. You have promised to
pay them according to the terms and conditions of the note you signed. The question is: Where does the
bank get the money you borrowed? Some people think it comes from the money in your CD, but that is not
the case. The truth is that the PROMISSORY NOTE you signed is now an asset of the bank, and, based upon
this PROMISE to pay, the bank created bank credit, which it lent to you. The bank doesn't reduce the
amount of your CD as you make purchases or take out loans. As the bills come into the bank, it pays the
merchant for your purchases by electronically transferring numbers in its computer. If for any reason you do
not pay for your purchases, the bank has the authority to use the money in your CD to cover your credit
card debt.

A MORTGAGE NOTE

Suppose that you go to your bank to borrow money for a home. You fill out the application and the bank
runs a check on you. You pass with flying colors and, next, you sign all the papers. Of course, you will have
to make a deposit on your home, just like you did with the credit card. The bank will have you sign a
PROMISSORY NOTE, called a mortgage, as you did with the credit card. The bank takes the title to your
home as collateral, as it did with the CD. And if you default on your payments, the bank will foreclose on
your home and sell it, just as they would use your CD to cover your credit card debt. The same question
arises: Where did the bank get the money it lent you for your home? Answer: It didn't lend you any money
- it lent you its credit. Based on the asset of your signature on the PROMISSORY NOTE, the bank issued a
check from the magic money machine which was accepted as money. We know that a check is not money,
but a PROMISE to pay money. The bank lied to you. You thought you were borrowing money, and the bank
lent you credit instead. In good faith, you entered into what you thought was an honest transaction, but the
fact that the transaction was suspect was known only to the bank (and to the courts who have decided that
it is illegal for a bank to lend its credit). In legal terms, you have been defrauded because your PROMISE to
pay was backed by collateral (the title to your home), but their PROMISE to pay was backed by nothing
(neither gold nor silver). In effect, the bank which risked nothing by lending you credit that it created, now
has the title to your home.

STATE BORROWING

When your state is short of money, it also borrows from the banks. A state's PROMISE to pay is called a
bond. These PROMISES to pay are based upon the state's ability to get you to pay. The bank accepts the
bonds as an asset and does the same sleight of hand with the state that it did with you. It gives the state a
check from the magic money machine. The state deposits the check back into the bank and writes more
checks on the check. Again, ask yourself this: Did the bank lend your state any money in return for their
PROMISE to pay? No! Once again the bank wrote a check, which is not money. Much of the money that your
state collects from you in taxes goes toward paying the principal and interest on these fraudulent bank
loans. You and I and our ability to pay, along with our property, homes, cars, etc., are pledged as collateral
to the bankers for these loans. The bankers put up little of value. They use their magic money machine, and
you and I pay and pay and pay.

THE FEDERAL GOVERNMENT AND THE NATIONAL DEBT

It's the same story. The federal government issues a bond. The bond goes to the privately owned Federal
Reserve Bank. The bond is a PROMISE to pay based upon the government's ability to collect taxes from you
and me. Again, the bankers issue a check from the magic money machine. And again, you pay and pay and
pay.
 WHAT ... IS THIS MONEY?

The Constitution says that money is gold or silver, probably because they are rare, and also because they
require someone's labor to bring it to us in a form that we can use. This has never changed. The
Constitution also says that only Congress has the authority to coin or regulate the value of money. We got
into this mess because, for the third time in history in 1913, Congress committed treason to the Constitution
by illegally turning over to a group of bankers, its responsibility to coin and regulate the value of money.
Consider that these Federal Reserve Notes are made out of paper (and cotton) and cost only 2.6 cents per
note to produce, regardless of denomination. You know that whoever is producing these notes is making a
tremendous profit. Consider also that real money cannot be counterfeited. A pound of gold is a pound of
gold, regardless of whose profile is stamped in it. The only money that can be counterfeited is the other
counterfeit money (Federal Reserve Notes). The way out of this mess is for We the People to reinstate the
Constitution as the Supreme Law of the Land. Until and unless we act to do so, this fraudulent money,
banking and taxing system will continue to enslave us. Keep these two points in mind: first, usury, which is
the requirement to pay back both the principal and the interest on a loan, is in violation of Biblical law,
which demands "just weights and measures"; and second, there is always a price to be paid for dishonesty.
For most of the history of this country, we operated under an honest, Constitutional system. The system
could be honest again.

Gold and Economic Freedom

by Alan Greenspan

[Editor's note - It may surprise more than a few gold devotees to learn they have an ideological friend in none other than
Federal Reserve Board chairman Alan Greenspan. Starting in the 1950s, in fact, Greenspan was a stalwart member of Ayn
Rand's intellectual inner circle. A self-designated "objectivist", Rand preached a strongly libertarian view, applying it to
politics and economics, as well as to religion and popular culture. Under her influence, Greenspan wrote for the first issue
of what was to become the widely-circulated Objectivist Newsletter. When Gerald Ford appointed him to the Council of
Economic Advisors, Greenspan invited Rand to his swearing-in ceremony. He even attended her funeral in 1982.

In 1967, Rand published her non-fiction book, Capitalism, the Unknown Ideal. In it, she included Gold and
Economic Freedom, the essay by Alan Greenspan which appears below. Drawing heavily from Murray
Rothbard's much longer The Mystery of Banking, Greenspan argues persuasively in favor of a gold standard
and against the concept of a central bank. Can this be the same Alan Greenspan who today chairs the most
important central bank of them all? Again, you might be surprised. R.W. Bradford writes in Liberty magazine
that, as Fed chairman, "Greenspan (once) recommended to a Senate committee that all economic
regulations should have fixed life spans. Senator Paul Sarbanes (D-Md.) accused him of 'playing with fire, or
indeed throwing gasoline on the fire,' and asked him whether he favored a similar provision in the Fed's
authorization. Greenspan coolly answered that he did. Do you actually mean, demanded the Senator, that
the Fed 'should cease to function unless affirmatively continued?' 'That is correct, sir,' Greenspan
responded." Bradford continues, "The Senator could scarcely believe his ears. 'Now my next question is, is
it your intention that the report of this hearing should be that Greenspan recommends a return to the gold
standard?' Greenspan responded, 'I've been recommending that for years, there's nothing new about that.
It would probably mean there is only one vote in the Federal Open Market Committee for that, but it is
mine.'" -- Editor, The Gilded Opinion]

GOLD AND ECONOMIC FREEDOM

An almost hysterical antagonism toward the gold standard is one issue which unites statists of all
persuasions. They seem to sense-perhaps more clearly and subtly than many consistent defenders of
laissez-faire -- that gold and economic freedom are inseparable, that the gold standard is an instrument of
laissez-faire and that each implies and requires the other. In order to understand the source of their
antagonism, it is necessary first to understand the specific role of gold in a free society. Money is the
common denominator of all economic transactions. It is that commodity which serves as a medium of
exchange, is universally acceptable to all participants in an exchange economy as payment for their goods
or services, and can, therefore, be used as a standard of market value and as a store of value, i.e., as a
means of saving. The existence of such a commodity is a precondition of a division of labor economy. If men
did not have some commodity of objective value which was generally acceptable as money, they would have
to resort to primitive barter or be forced to live on self-sufficient farms and forgo the inestimable
advantages of specialization. If men had no means to store value, i.e., to save, neither long-range planning
nor exchange would be possible. What medium of exchange will be acceptable to all participants in an
economy is not determined arbitrarily. First, the medium of exchange should be durable. In a primitive
society of meager wealth, wheat might be sufficiently durable to serve as a medium, since all exchanges
would occur only during and immediately after the harvest, leaving no value-surplus to store. But where
store-of-value considerations are important, as they are in richer, more civilized societies, the medium of
exchange must be a durable commodity, usually a metal. A metal is generally chosen because it is
homogeneous and divisible: every unit is the same as every other and it can be blended or formed in any
quantity. Precious jewels, for example, are neither homogeneous nor divisible. More important, the
commodity chosen as a medium must be a luxury. Human desires for luxuries are unlimited and, therefore,
luxury goods are always in demand and will always be acceptable. Wheat is a luxury in underfed
civilizations, but not in a prosperous society. Cigarettes ordinarily would not serve as money, but they did in
post-World War II Europe where they were considered a luxury. The term "luxury good" implies scarcity and
high unit value. Having a high unit value, such a good is easily portable; for instance, an ounce of gold is
worth a half-ton of pig iron.

In the early stages of a developing money economy, several media of exchange might be used, since a wide
variety of commodities would fulfill the foregoing conditions. However, one of the commodities will
gradually displace all others, by being more widely acceptable. Preferences on what to hold as a store of
value will shift to the most widely acceptable commodity, which, in turn, will make it still more acceptable.
The shift is progressive until that commodity becomes the sole medium of exchange. The use of a single
medium is highly advantageous for the same reasons that a money economy is superior to a barter
economy: it makes exchanges possible on an incalculably wider scale. Whether the single medium is gold,
silver, seashells, cattle, or tobacco is optional, depending on the context and development of a given
economy. In fact, all have been employed, at various times, as media of exchange. Even in the present
century, two major commodities, gold and silver, have been used as international media of exchange, with
gold becoming the predominant one. Gold, having both artistic and functional uses and being relatively
scarce, has significant advantages over all other media of exchange. Since the beginning of World War I, it
has been virtually the sole international standard of exchange. If all goods and services were to be paid for
in gold, large payments would be difficult to execute and this would tend to limit the extent of a society's
divisions of labor and specialization. Thus a logical extension of the creation of a medium of exchange is the
development of a banking system and credit instruments (bank notes and deposits) which act as a
substitute for, but are convertible into, gold.

A free banking system based on gold is able to extend credit and thus to create bank notes (currency) and
deposits, according to the production requirements of the economy. Individual owners of gold are induced,
by payments of interest, to deposit their gold in a bank (against which they can draw checks). But since it is
rarely the case that all depositors want to withdraw all their gold at the same time, the banker need keep
only a fraction of his total deposits in gold as reserves. This enables the banker to loan out more than the
amount of his gold deposits (which means that he holds claims to gold rather than gold as security of his
deposits). But the amount of loans which he can afford to make is not arbitrary: he has to gauge it in
relation to his reserves and to the status of his investments. When banks loan money to finance productive
and profitable endeavors, the loans are paid off rapidly and bank credit continues to be generally available.
But when the business ventures financed by bank credit are less profitable and slow to pay off, bankers
soon find that their loans outstanding are excessive relative to their gold reserves, and they begin to curtail
new lending, usually by charging higher interest rates. This tends to restrict the financing of new ventures
and requires the existing borrowers to improve their profitability before they can obtain credit for further
expansion. Thus, under the gold standard, a free banking system stands as the protector of an economy's
stability and balanced growth.

When gold is accepted as the medium of exchange by most or all nations, an unhampered free international gold standard
serves to foster a world-wide division of labor and the broadest international trade. Even though the units of exchange (the
dollar, the pound, the franc, etc.) differ from country to country, when all are defined in terms of gold the economies of the
different countries act as one -- so long as there are no restraints on trade or on the movement of capital. Credit, interest
rates, and prices tend to follow similar patterns in all countries. For example, if banks in one country extend credit too
liberally, interest rates in that country will tend to fall, inducing depositors to shift their gold to higher-interest paying banks in
other countries. This will immediately cause a shortage of bank reserves in the "easy money" country, inducing tighter credit
standards and a return to competitively higher interest rates again. A fully free banking system and fully consistent gold
standard have not as yet been achieved. But prior to World War I, the banking system in the United States (and in most of
the world) was based on gold and even though governments intervened occasionally, banking was more free than
controlled. Periodically, as a result of overly rapid credit expansion, banks became loaned up to the limit of their gold
reserves, interest rates rose sharply, new credit was cut off, and the economy went into a sharp, but short-lived recession.
(Compared with the depressions of 1920 and 1932, the pre-World War I business declines were mild indeed.) It was limited
gold reserves that stopped the unbalanced expansions of business activity, before they could develop into the post-World
War I type of disaster. The readjustment periods were short and the economies quickly reestablished a sound basis to
resume expansion. But the process of cure was misdiagnosed as the disease: if shortage of bank reserves was causing a
business decline -argued economic interventionists -- why not find a way of supplying increased reserves to the banks so
they never need be short! If banks can continue to loan money indefinitely -- it was claimed -- there need never be any
slumps in business. And so the Federal Reserve System was organized in 1913. It consisted of twelve regional Federal
Reserve banks nominally owned by private bankers, but in fact government sponsored, controlled, and supported. Credit
extended by these banks is in practice (though not legally) backed by the taxing power of the federal government.
Technically, we remained on the gold standard; individuals were still free to own gold, and gold continued to be used as
bank reserves. But now, in addition to gold, credit extended by the Federal Reserve banks ("paper reserves") could serve as
legal tender to pay depositors. When business in the United States underwent a mild contraction in 1927, the Federal
Reserve created more paper reserves in the hope of forestalling any possible bank reserve shortage. More disastrous,
however, was the Federal Reserve's attempt to assist Great Britain who had been losing gold to us because the Bank of
England refused to allow interest rates to rise when market forces dictated (it was politically unpalatable). The reasoning of
the authorities involved was as follows: if the Federal Reserve pumped excessive paper reserves into American banks,
interest rates in the United States would fall to a level comparable with those in Great Britain; this would act to stop Britain's
gold loss and avoid the political embarrassment of having to raise interest rates.

The "Fed" succeeded; it stopped the gold loss, but it nearly destroyed the economies of the world in the process. The
excess credit which the Fed pumped into the economy spilled over into the stock market -- triggering a fantastic speculative
boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the
boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a
sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed.
Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold
standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of
bank failures. The world economies plunged into the Great Depression of the 1930's. With logic reminiscent of a generation
earlier, statists argued that the gold standard was largely to blame for the credit debacle which led to the Great Depression.
If the gold standard had not existed, they argued, Britain's abandonment of gold payments in 1931 would not have caused
the failure of banks all over the world. (The irony was that since 1913, we had been, not on a gold standard, but on what
may be termed "a mixed gold standard"; yet it is gold that took the blame.) But the opposition to the gold standard in any
form -- from a growing number of welfare-state advocates -- was prompted by a much subtler insight: the realization that the
gold standard is incompatible with chronic deficit spending (the hallmark of the welfare state). Stripped of its academic
jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive
members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is affected by
taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation
had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money, by issuing
government bonds, to finance welfare expenditures on a large scale.

Under a gold standard, the amount of credit that an economy can support is determined by the economy's tangible assets,
since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible
wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial
markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates.
Thus, government deficit spending under a gold standard is severely limited. The abandonment of the gold standard made it
possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have
created paper reserves in the form of government bonds which -- through a complex series of steps -- the banks accept in
place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of
gold. The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on
a real asset. But the fact is that there are now more claims outstanding than real assets. The law of supply and demand is
not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy,
prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods.
When the economy's books are finally balanced, one finds that this loss in value represents the goods purchased by the
government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit
expansion. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There
is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of
gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter
declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created
bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way
for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists' tirades against gold. Deficit
spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a
protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold
standard.

By Alan Greenspan 1967, Reprinted by USAGOLD with editorial content on July 6, 2001.

Money in
America
IS THERE ANY MONEY IN AMERICA?

The Federal Reserve Notes that we call dollar bills, and circulate among ourselves as, money, is not true
money. They are exactly what they say they are, "Notes" i.e. evidences of debt. The monetary system that
we have is one in which debt has been monetized. How did that come about? 95% of Americans today do
not know that their government effectually declared bankruptcy in 1933, in the passing of House Joint
Resolution 192 (a):

"every provision contained in or made with respect to any obligation which purports to give the obligee a right to require
payment in gold or in a particular kind of coin or currency, or in an amount in money of the United States measured
thereby, is declared to be against Public Policy; and no such provision shall be contained in or made with respect to any
obligation hereafter incurred. Every obligation, heretofore or hereafter incurred, whether or not any such provision is
contained therein or made with respect thereto, shall be discharged upon payment, dollar for dollar, in any such coin or
currency which at the time of payment is legal tender for public and private debts."

What this resolution meant was that from that point on no payments would be possible with constitutional
money, i.e. gold backed currency. Payment in gold was now declared to be against public policy. Effectually
this was bankruptcy. We were unable to pay our debts. From this point on payment of debt with substance
was replaced with discharge dollar for dollar in whatever coin or currency Congress declared to be legal
tender. What has Congress declared to be legal tender today? Federal Reserve Notes, which are evidences
of the government's debt to the Federal Reserve. As crazy as this may seem, we pay or discharge debt with
debt.

The Federal Reserve Creates Money Out Of Nothing By Monetizing Debt.

To understand how the money or the money supply is created, let us take for example the President's
recent request before Congress for $87 billion for reconstructing Iraq and fighting terrorism. Now we may be
oversimplifying this in order to make it easy to understand the principle behind money creation.

 Congress, as the trustees of the bankruptcy, agrees to allocate $87 billion. Now it seems like this
money is already in the Treasury. But it isn't. It has to come from somewhere.

 They then go to the Federal Reserve and ask Mr. Greenspan for a loan of $87 billion.

 Mr. Greenspan says, "sure, but give me $87 billion worth of Treasury Bills."

 The government prints up some nice looking T-Bill certificates. These are simply promissory notes to
pay back the Federal Reserve.

 Mr. Greenspan then takes out his pen and writes a check for $87 billion. Unlike your personal check
account, there is no money on deposit against which that check is written. This money is created out
of thin air with nothing more than a book entry. If you did that you would go straight to jail.

 The Fed sells the T-Bills, the proceeds of which cover the check for $87 billion.

 The U.S. Bureau of Engraving is then instructed to print $87 billion worth of Federal Reserve Notes.
These notes are merely IOU's.
  The government then puts those notes into circulation. It then pays its debts with promises to pay,
IOU's, to the Federal Reserve. Of course in our electronic digital age, the money supply is made up
largely of book entries, transferring digits from one account to another. Only 3% of the money
supply is in coin and paper currency.

 We then circulate these notes among ourselves as money. Really they are EVIDENCES OF THE
GOVERNMENT DEBT TO THE FEDERAL RESERVE. We pay our accounts with evidences of the
government's debt. The debt is not really paid. It is discharged from one person to another.

Even high ranking government officials agree that this is how the banking system works today.
Representative Wright Patman, former Chairman of the House Banking Committee said "The Federal
Reserve Banks create money out of thin air to buy Government bonds... The Federal Reserve Bank is a total
money making machine." Our money system therefore is one in which debt, starting with the government's
debt, and private debt, is monetized. It is amazing to think that if everyone paid back what they have
borrowed, there would be no money in circulation. All paper currency and coins would be returned to the
banks vaults, and there would not be one dollar in any one's checking accounts.

In 1941, then Federal Reserve Bank Chairman, Marriner Eccles was asked to give testimony before the
House Committee on Banking and Currency. The chairman of the committee, Congressman Wright Patman,
asked how the Fed got the money to purchase two billion dollars worth of government bonds in 1933:
Eccles: "We created it."
Patman: "Out of what?"
Eccles: "Out of the right to issue credit money."
Patman: "And there is nothing behind it, is there, except our government's credit?"
Eccles: "That is what our money system is. If there were no debts in our money system, there wouldn't be any
money."
For a more detailed presentation of the creation of the money supplies see, THE MANDRAKE MECHANISM.

ESSENTIALLY, WHAT THE GOVERNMENT DID WAS, FUND ITS OWN ALLEDGED LOAN. The government
provided the funds through its promissory note (T-Bill), which the Fed sold into the Bond Market. So it
wasn't actually a loan. It was an EXCHANGE! The government exchanged its T-Bill IOU for the Fed's check.
There never was a loan. In return for the Fed check, the government has to make a pledge of collateral
equal to the face value of the $87 billion of Federal Reserve Notes placed in circulation. The collateral, which
Congress pledges, is the total land, labor and assets of the American people. To pay the interest owed to the
Federal Reserve, the government raises taxes from the citizens. It's really crazy; why would the government
pay interest on paper that it has the power to print interest free, without the Federal Reserve, and not have
to raise taxes to pay the interest? Because it is has declared itself bankrupt - it has no choice. It is subject
to the control of its creditor. The worst thing is that we can never get out of bankruptcy, because under the
present system the only way to create money supply is by an ever increasing, escalation of debt. And it is
impossible to pay back the national debt, because the interest, usury, which is charged, is not being
created. At present the national debt is way more than $7 trillion. According to Federal Reserve CPA's, if
you factor in Social Security and Medicare, etc. it is over $43 trillion. The total value of all land in the United
States is valued at less than $43 trillion. In other words, our liabilities are more than our assets, and
increasing exponentially. We are a bankrupt nation. It is very obvious who controls the government and the
people of the United States; the one who controls the bankruptcy and the creation of money through debt,
the Federal Reserve. "The borrower is the slave of the lender." Proverbs

YOU FUNDED YOUR OWN LOAN WITH YOUR SIGNATURE... ON A PROMISSORY

NOTE
WHAT THE FEDERAL RESERVE AND THE GOVERNMENT ARE DOING AT THE NATIONAL LEVEL, LOCAL BANKS
ARE DOING WITH US AT THE LOCAL LEVEL. The only difference is that instead of printing new notes, the
banks are creating new checkbook money each time they make a loan.
Here's what happens when you go to the bank to get a loan for your vehicle:

 The bank has you sign a Promissory Note.

 The back of the note is then stamped, "pay to order of" or similar words.

 The note is then deposited into a transaction account in your name. Now this was not disclosed to
you before you signed the note and you did not give them the authority to open a transaction
account on your name.

 The bank then writes a check from your transaction account deposit that you had no knowledge of,
either to you or transfers the amount to those who should be receiving it.

 The bank then sells the note to Federal Reserve or into the securities market. The proceeds of
which, are used to fund the alleged loan.

Through the bank selling your note, YOU PAID FOR YOUR PURCHASE WITH THE PROMISSORY NOTE. Your
note was treated by the bank as an asset that could be exchanged for cash. Anything that you can exchange
for cash is an asset. What 95 % of America does not realize is that within our monetary system a
Promissory Note is an asset. The moment you signed that note it became money to the bank. There was no
money in existence until you signed the note. Once the bank stamped it "pay to the order of" it became a
negotiable instrument. To the bank, it had Present Value, because they were able to sell it for cash. To you
it only had Future Value. What's wrong with this loan scenario? You always suspected that there was
something not right when you went for a loan from the bank. Now you know what it is. Let me give you a
simple illustration that will help you to understand this.

Imagine if you came to me needing a loan.

You: "Can you give me a loan for $10,000."
Me: "sure I'll loan you $10,000, but you have to give me an asset worth $10,000."
You: "All I've got is this diamond ring worth $10,000."
Me: "That will do." I then take the ring and sell it for $10,000, and come back to
You with a check for $10,000.
Me: "Here's your $10,000 loan at 10% interest, and the payments are $200 a
month for x number of years."
You: "xxxxxxx!" We won't even print what you would tell me to do with that loan.
In fact if you called the police I would go to jail for fraud, loan sharking, racketeering etc. BUT THIS IS
EXACTLY WHAT THE BANKS ARE DOING EVERY SINGLE DAY.

Now what is wrong with this loan? EVERYTHING!

 It's not a loan. It's an exchange. We simply exchanged your diamond for a $10,000 check.

 It never cost me anything to make the loan. I brought nothing to the table. My assets did not
decrease by $10,000, as would be the case in a true, honest loan. Therefore I had no risk.

 You provided the asset (the diamond ring). I merely sold it and gave you back your money, and
then had the unmitigated gall to charge you interest on nothing.

In the same way, YOUR PROMISSORY NOTE BECAME THE FUNDING INSTRUMENT OF YOUR BANK LOAN.
The bank received it as an asset, as legal tender, i.e. in the form of money and deposited in an account.
According to the Uniform Commercial Code, a promissory note is a negotiable instrument, and is therefore
legal tender. As such it is the funding instrument. Therefore there was no loan. It was an exchange. Your
note which, could be monetized by the bank, was exchanged for the bank's check. And the bank lied and
called it a loan. Banks and lending institutions only appear to lend money.

The "lending" techniques that are used are beyond brilliant. It took some very, very smart people to figure
out how to appear to be lending money, but in actuality have the value supplied by the person wanting a
loan. And that is what is happening.
"THIS IS TOO INCREDIBLE TO BELIEVE, SHOW ME PROOF." If you are finding this rather difficult to believe,
let's look at some Federal Reserve Bank publications, which actually admit that this is how bank loans work.
"Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to
making book entries crediting deposits of borrowers, which the borrowers in turn could "spend" by
writing checks, thereby "printing" their own money."

Modern Money Mechanics, page 3, Federal Reserve Bank of Chicago.

"Of course they do not really pay out loans from the money they receive as deposits. If they did
this, no additional money would be created. What they do when they make loans is to accept
promissory notes in exchange for credits to the borrowers' transaction accounts. Loans (assets)
and deposits (liabilities) both rise by $9,000. Reserves are unchanged by the loan transactions. But the
deposit credits constitute new additions to the total deposits of the banking system."

Modern Money Mechanics, page 6, Federal Reserve Bank of Chicago.

According to the Fed, it is not their policy to make loans from other depositor's money. Neither do they
make loans from their own assets. They make loans by accepting promissory notes in exchange for credits
to the borrower's transaction account. They even admit that it's an exchange. IF IT'S AN EXCHANGE HOW
CAN IT BE A LOAN?

"In exchange for the note or security, the lending institution credits the depositor's account or gives a
check that can be deposited at yet another depository institution."

Two Faces of Debt, page 19 Federal Reserve Bank of Chicago.

You want more proof: THE BANK'S OWN BOOKKEEPING ENTRIES ARE PROOF. Let's say the bank
receives a $1,000.00 check deposit. It is recorded as an asset to the bank. But in order to balance their
books, on the other side of the ledger they have to record a $1,000.00 liability. The bank has an asset for
$1,000.00, but it also has a liability of $1,000.00 to you, the depositor. The bank owes you $1,000.00. You
have a right to draw on that $1,000.00 whenever you choose. Now when you purchased your vehicle
instead of a check you gave the bank a signed promissory note. The bank deposited it, just like a check or
cash, in a transaction account in your name. Now remember that all deposits are received as assets to the
bank. However, they also have a corresponding liability to the face value of your promissory note.
Therefore, in reality you don't owe the bank anything. You simply exchanged your promissory note for their
check, which paid for the vehicle. The account is a wash. SO WHY ARE WE PAYING MONTHLY PAYMENTS
AND INTEREST FOR SOMETHING THAT, WITHIN OUR MONETARY SYSTEM, HAS ALREADY BEEN PAID FOR?

Actually the bank owes you! They still do not own your promissory note. They made an exchange - your promissory note
(asset to the bank) was exchanged for the face value of the note. They deposited your note and then sold it remember.
Therefore, on their books they still have a liability to you. If you still do not believe all of this, then we challenge you to print
out this affidavit, take it to your local bank and have the bank President sign it and have it notarized. The banker will never
sign it because he knows we are telling you the truth.

What is the
FED?
The FED is a private central bank. Central banks are supposed to implement a country's fiscal policies.
They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain
solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with
other central banks. In theory, a central bank should be good for a country, and they might be if it wasn't
for the fact that they are not owned or controlled by the government of the country they are serving. Private
central banks, including our FED, operate not in the interest of the public good but for profit. There have
been three central banks in our nation's history. The first two, while deceptive and fraudulent, pale in
comparison to the scope and size of the fraud being perpetrated by our current FED. What they all have in
common is an insidious practice known as "fractional banking." Fractional banking or fractional lending is the
ability to create money from nothing, lend it to the government or someone else and charge interest to
boot. The practice evolved before banks existed. Goldsmiths rented out space in their vaults to individuals
and merchants for storage of their gold or silver. The goldsmiths gave these "depositors" a certificate that
showed the amount of gold stored. These certificates were then used to conduct business. In time the
goldsmiths noticed that the gold in their vaults was rarely withdrawn. Small amounts would move in and out
but the large majority never moved. Sensing a profit opportunity, the goldsmiths issued double receipts for
the gold, in effect creating money (certificates) from nothing and then lending those certificates (creating
debt) to depositors and charging them interest as well. Since the certificates represented more gold than
actually existed, the certificates were "fractionally" backed by gold. Eventually some of these vault
operations were transformed into banks and the practice of fractional banking continued.Keep that fractional
banking concept in mind as we examine our first central bank, the First Bank of the United States (BUS). It
was created, after bitter dissent in the Congress, in 1791 and chartered for 20 years. A scam not unlike the
current FED, the BUS used its control of the currency to defraud the public and establish a legal form of
usury.

This bank practiced fractional lending at a 10:1 rate, ten dollars of loans for each dollar they had on deposit.
This misuse and abuse of their public charter continued for the entire 20 years of their existence. Public
outrage over these abuses was such that the charter was not renewed and the bank ceased to exist in 1811.
The war of 1812 left the country in economic chaos, seen by bankers as another opportunity for easy
profits. They influenced Congress to charter the second central bank, the Second Bank of the United States
(SBUS), in 1816. The SBUS was more expansive than the BUS. The SBUS sold franchises and literally
doubled the number of banks in a short period. The country began to boom and move westward, which
required money. Using fractional lending at the 10:1 rate, the central bank and their franchisees created the
debt/money for the expansion.

Things boomed for a while, and then the banks decided to shut off the debt/money, citing the need to
control inflation. This action on the part of the SBUS caused bankruptcies and foreclosures. The banks then
took control of the assets that were used as security against the loans. Closely examine how the SBUS
engineered this cycle of prosperity and depression. The central bank caused inflation by creating
debt/money for loans and credit and making these funds readily available. The economy boomed. Then they
used the inflation, which they created as an excuse to shut off the loans/credit/money. The resulting
shortage of cash caused the economy to falter or slow dramatically and large numbers of business and
personal bankruptcies resulted. The central bank then seized the assets used as security for the loans. The
wealth created by the borrowers during the boom was then transferred to the central bank during the bust.
Now, who do you think is responsible for all of the ups and downs in our economy over the last 85 years?
Think about the depression of the late '20s and all through the '30s. The FED could have pumped lots of
debt/money into the market to stimulate the economy and get the country back on track, but did they? No;
in fact, they restricted the money supply quite severely. We all know the results that occurred from that
action, don't we?

Why would the FED do this? During that period, asset values and stocks were at rock bottom prices. Who do
you think was buying everything at 10 cents on the dollar? I believe that it is referred to as consolidating
the wealth. How many times have they already done this in the last 85 years? Do you think they will do it
again? Just as an aside at this point, look at today's economy. Things are booming. Why? Because the FED
has been very liberal with its debt/credit/money. The market is hyper-inflated. Who creates inflation? The
FED. How does the FED deal with inflation? They restrict the debt/credit/money. What happens when they
do that? The market collapses. Several months back, after certain central banks said they would be selling
large quantities of gold, the price of gold fell to a 25-year low of about $260 per ounce. The central banks
then bought gold. After buying at the bottom, a group of 15 central banks announced that they would be
restricting the amount of gold released into the market for the next five years. The price of gold went up
$75.00 per ounce in just a few days. How many hundreds of billions of dollars did the central banks make
with those two press releases? Gold is generally considered a hedge against more severe economic
conditions. Do you think that the private banking families that own the FED are buying or selling equities at
this time? (Remember: buy low, sell high.) How much more money do you think these FED owners will
make when they restrict the money supply at the top of this current cycle?

Alan Greenspan has said publicly on several occasions that he thinks the market is overvalued, or words to
that effect. Just a hint that he will raise interest rates (restrict the money supply), and equity markets have
a negative reaction. Governments and politicians do not rule central banks; central banks rule governments
and politicians. President Andrew Jackson won the presidency in 1828 with the promise to end the national
debt and eliminate the SBUS. During his second term, President Jackson withdrew all government funds
from the bank and on January 8, 1835, paid off the national debt. He is the only president in history to have
this distinction. The charter of the SBUS expired in 1836. Without a central bank to manipulate the supply of
money, the United States experienced unprecedented growth for 60 or 70 years, and the resulting wealth
was too much for bankers to endure. They had to get back into the game. So, in 1910 Senator Nelson
Aldrich, then Chairman of the National Monetary Commission, in collusion with representatives of the
European central banks, devised a plan to pressure and deceive Congress into enacting legislation that
would covertly establish a private central bank. This bank would assume control over the American economy
by controlling the issuance of its money. After a huge public relations campaign, engineered by the foreign
central banks, the Federal Reserve Act of 1913 was slipped through Congress during the Christmas recess,
with many members of the Congress absent. President Woodrow Wilson, pressured by his political and
financial backers, signed it on December 23, 1913.
The act created the Federal Reserve System, a name carefully selected and designed to deceive. "Federal"
would lead one to believe that this is a government organization. "Reserve" would lead one to believe that
the currency is being backed by gold and silver. "System" was used in lieu of the word "bank" so that one
would not conclude that a new central bank had been created. In reality, the act created a private, for
profit, central banking corporation owned by a cartel of private banks. Who owns the FED? The Rothschilds
of London and Berlin; Lazard Brothers of Paris; Israel Moses Seif of Italy; Kuhn, Loeb and Warburg of
Germany; and the Lehman Brothers, Goldman, Sachs and the Rockefeller families of New York. Did you
know that the FED is the only for-profit corporation in America that is exempt from both federal
and state taxes? The FED takes in about one trillion dollars per year tax-free! The banking families that
created and own the FED get all that money.

Almost everyone thinks that the money they pay in taxes goes to the US Treasury to pay for the expenses
of the government. Do you want to know where your tax dollars really go? If you look at the back of any
check made payable to the IRS you will see that it has been endorsed as "Pay Any F.R.B. Branch or Gen.
Depository for Credit U.S. Treas. This is in Payment of U.S. Oblig." Yes, that is right, every dime you pay in
income taxes is given to those private banking families, commonly known as the FED, tax free. Like many of
you, I had some difficulty with the concept of creating money from nothing. You may have heard the term
"monetizing the debt," which is kind of the same thing. As an example, if the US Government wants to
borrow $1 million, and the government does borrow every dollar it spends, they go to the FED to borrow the
money. The FED calls the Treasury and says print 10,000 Federal Reserve Notes in units of one hundred
dollars. The Treasury charges the FED 2.3 cents for each note, for a total of $230 for the 10,000 Federal
Reserve Notes. The FED then lends the $1 million to the government at face value plus interest. To add
insult to injury, the government has to create a bond for $1 million as security for the loan. That's just an
example, because in reality the FED does not even print the money; it's just a computer entry in their
accounting system.

To put this on a more personal level, let's use another example: Today's banks are members of the Federal
Reserve Banking System. This membership makes it legal for them to create money from nothing and lend
it to you. Today's banks, like the goldsmiths of old, realize that only a small fraction of the money deposited
in their banks is ever actually withdrawn in the form of cash. Only about 4 percent of all the money that
exists is in the form of currency. The rest of it is simply a computer entry.Let's say you're approved to
borrow $10,000 to do some home improvements. You know that the bank didn't actually take $10,000 from
its pile of cash and put it into your pile? They simply went to their computer and input an entry of $10,000
into your account. They created, from thin air, a debt which you have to secure with an asset and repay
with interest. The bank is allowed to create and lend as much debt as they want as long as they do not
exceed the 10:1 ratio imposed by the FED.

How do you feel about the whole "Loan Approval" process now? How about those loan committees that
scrutinize you with a microscope before approving the loan they created from thin air. Give me a
break! They make it complex for a reason. They don't want you to understand what they are doing. People
fear what they do not understand. You are easier to delude and control when you are ignorant and afraid.
Now to put the frosting on this cake. When was the income tax created? If you guessed 1913, the same
year that the FED was created, you get a gold star. Coincidence? What are the odds? If you are going to use
the FED to create debt, who is going to repay that debt? The income tax was created to complete the
illusion that real money had been lent and therefore real money had to be repaid. Article 1, Section 8 of the
US Constitution specifically says that Congress is the only body that can "coin money and regulate the value
thereof." The US Constitution has never been amended to allow anyone other than Congress to coin and
regulate currency. Thomas Jefferson said, "If the America people ever allow private banks to control
the issuance of their currencies, first by inflation and then by deflation, the banks and
corporations that will grow up around them will deprive the people of all their prosperity until
their children will wake up homeless on the continent their fathers conquered."

BANKER’S MANIFESTO OF 1892

Revealed by US Congressman Charles A. Lindbergh, SR from Minnesota before the US Congress sometime
during his term of office between the years of 1907 and 1917 to warn the citizens.
"We (bankers) must proceed with caution and guard every move made, for the lower order of people are
already showing signs of restless commotion. Prudence will therefore show a policy of apparently yielding to
the popular will until our plans are so far consummated that we can declare our designs without fear of any
organized resistance. The Farmers Alliance and Knights of Labor organizations in the United States should
be carefully watched by our trusted men, and we must take immediate steps to control these organizations
in our interest or disrupt them. At the coming Omaha Convention to be held July 4th (1892), our men must
attend and direct its movement, or else there will be set on foot such antagonism to our designs as may
require force to overcome. This at the present time would be premature. We are not yet ready for such a
crisis. Capital must protect itself in every possible manner through combination (conspiracy) and legislation.
The courts must be called to our aid, debts must be collected, bonds and mortgages foreclosed as rapidly as
possible. When through the process of the law, the common people have lost their homes, they will be more
tractable and easily governed through the influence of the strong arm of the government applied to a central
power of imperial wealth under the control of the leading financiers. People without homes will not quarrel
with their leaders. History repeats itself in regular cycles. This truth is well known among our principal men
who are engaged in forming an imperialism of the world. While they are doing this, the people must be kept
in a state of political antagonism. The question of tariff reform must be urged through the organization
known as the Democratic Party, and the question of protection with the reciprocity must be forced to view
through the Republican Party.By thus dividing voters, we can get them to expand their energies in fighting
over questions of no importance to us, except as teachers to the common herd. Thus, by discrete action, we
can secure all that has been so generously planned and successfully accomplished

THE MONEY MYTH EXPLODED

by Louis Even

1. Shipwreck survivors

An explosion had blown their ship apart. Each one grasped the first bit of wreckage that came to hand, And when it was over there were five
left, five huddled on a raft which the waves carried along at their will, As for the other victims of the disaster, there was no sign of them. Hour
after long hour their eyes searched the horizon. Would some passing ship sight them? Would their makeshift raft find its way to some
friendly shore? Suddenly a cry rang out: "Land! Look! Over there in the direction the waves are carrying us!" And as the vague silhouette
proved itself to be, in fact, the outline of a shore, the figures on the raft danced with joy. They were five Canadians. There was Frank, the
carpenter, big and energetic, It was he who had first cried, "Land!" Then Paul, a farmer. You can see him on his knees, one hand against the
floor, the other gripping the mast of the raft. Next Jim, an animal breeder; he's the one in the striped pants, kneeling and gazing in the
direction of land. Then there is Harry, an agriculturist, a little on the stout side, seated on a trunk salvaged from the wreck. And finally Tom, a
prospector and a mineralogist; he is the merry fellow standing in the rear with his hand on the carpenter's shoulder .

2. A Providential island

To our five men, setting foot on land was like returning to life from the grave. When they had dried and warmed themselves
their first impulse was to explore this little island on to which they had been cast, far from civilization. A quick survey was
sufficient to raise their spirit. The island was not a barren rock. True enough, they were the only men on it at the moment.
But judging from the herds of semi domesticated animals they encountered, there must have been men here at some time
before them. Jim, the animal breeder, was sure he could completely domesticate them and put them to good service. Paul
found the island's soil, for the most part, to be quite suitable for cultivation. Harry discovered some fruit trees which, if
properly tended, would give good harvests. Most important were the large stands of timber embracing many types of wood.
Frank, without too much difficulty, would be able to build houses for the little community. As Tom, the prospector, well, the
rock formations of the island showed signs of rich mineral deposits, Lacking the tools, Tom still felt his ingenuity and initiative
could produce metals from the ores. So each could serve the common good with his special talent. All agreed to call the
place Salvation Island. All gave thanks to Providence for the reasonably happy ending to what could have been stark
tragedy.

3. True wealth

Here are the men at work.The carpenter builds houses and makes furniture. At first they find their food where they can. But soon
the fields are tilled and seeded, and the farmer has his crops. As season followed season this island, this heritage of the five men,
Salvation Island, became richer and richer. Its wealth was not that of gold or of paper bank notes, but one of true value; a wealth
of food and clothing and shelter, of all the things to meet human needs. Each man worked at his own trade. Whatever surpluses he
might have of his own produce, he exchanged for the surplus products of the others. Life wasn't always as smooth and complete
as they could have wished it to be. They lacked many of the things to which they had been accustomed in civilization. But their lot
could have been a great deal worse .Besides, all had experienced the depression in Canada. They still remembered the empty
bellies side by side with stores crammed with food. At least, on Salvation Island, they weren't forced to see the things they needed
rot before their eyes. Taxes were unknown here. Nor did they go in constant fear for seizure by the bailiff. They worked hard but at
least they could enjoy the fruits of their toil. So they developed the island, thanking God and hoping for the day of reunion with
their families still in possession of life and health, those two greatest of blessings.

4. A serious inconvenience
Our men often got together to talk over their affairs. Under the simple economic system which had developed, one thing
was beginning to bother them more and more; they had no form of money. Barter, the direct exchange of goods for
goods, had its drawbacks. The products to be exchanged were not always at hand when a trade was discussed. For
example, wood delivered to the farmer in winter could not be paid for in potatoes until six months later. Sometimes one
man might have an article of considerable size which he wished to exchange for a number of smaller articles produced by
different men at different times. All this complicated business and laid a heavy burden on the memory. With a monetary
system, however, each one could sell his products to the others for money. With this money he could buy from the others
the things he wanted, when he wished and when they were available. It was agreed that a system of money would indeed
be very convenient. But none of them knew how to set up such a system. They knew how to produce true wealth - goods.
But how to produce money. the symbol of this wealth, was something quite beyond them. They were ignorant of the
origin of money, and needing it they didn't know how to produce it. Certainly, many men of education would have been in
the same boat; all our governments were in that predicament during the ten years prior to the war. The only thing the
country lacked at that time was money, and the governments apparently didn't know what to do to get it.

5. Arrival of a refugee

One evening when our boys were sitting on the beach going over their problem for the hundredth time, they suddenly saw
approaching, a small boat with a solitary man at the oars. They learned that he was the only survivor of a wreck. His name,
Olivier. Delighted to have a new companion they provided him with the best they had and took him on an inspection tour of
the colony. "Even though we're lost and cut off from the rest of the world," they told him, "we haven't too much to complain
about. The earth and the forest are good to us. We lack only one think - money. That would make it easier for us to
exchange our products." "Well, you can thank Providence," replied Olivier, "because I am a banker and in no time at all I'll
set up a system of money guaranteed to satisfy you. Then you'll have everything that people in civilization have." A
banker!... A BANKER!... An angel coming down out of the clouds couldn't have inspired more reverence and respect in our
men. For, after all, are we not accustomed, we people in civilization, to genuflect before bankers, those men who control the
life-blood of finance?

6. Civilization's god
"Mr. Oliver, as our banker, your only occupation on this island will be to look after our money; no manual labor."
"I shall, like every other banker, carry out to complete satisfaction my task of forging the community's prosperity."
"Mr. Oliver, we're going to build you a house that will be in keeping with your dignity as a banker. But in the
meantime, do you mind if we lodge you in the building we use for our get-togethers?
"That will suit me, my friends. But first of all, unload the boat. There's paper, and a printing press, complete with ink
and type; and there's a little barrel which I exhort you to treat with the greatest care."
They unloaded everything. The small barrel aroused intense curiosity in our good fellows.
"This barrel," Oliver announced, "contains treasure beyond dreams. It is full of... gold!"
Full of gold! The five all but swooned. The god of civilization here on Salvation Island! The yellow god, always
hidden, yet terrible in its power; whose presence or absence or slightest caprice could decide the very fate of all the
civilized nations!
"Gold! Mr. Oliver, you are indeed a great banker!"
"Oh august majesty! oh honorable Oliver! great high priest of the god, gold! accept our humble homage and receive
our oaths of fealty!"
"Yes, my friends, gold enough for a continent. But gold is not for circulation. Gold must be hidden. Gold is the soul
of healthy money, and the soul is always invisible. But I'll explain all that when you receive your first supply of
money."
7. The secret burial
Before they went their separate ways for the night, Oliver asked them one last question. "How much money will
you need to begin with in order to facilitate trading?"
They looked at one another then deferentially towards the banker. After a bit of calculation and with the advice
of the kindly financier, they decided that $200 each would do. The men parted, exchanging enthusiastic
comments. And in spite of the late hour, they spent most of the night lying awake, their imaginations excited by
the picture of gold. It was morning before they slept. As for Oliver, he wasted not a moment. Fatigue was
forgotten in the interests of his future as a banker. By dawn's first light he dug a pit into which he rolled the
barrel. He then filled it in, transplanting a small shrub to the spot about which he carefully arranged sod. It was
well hidden. Then he went to work with his little press to turn out a thousand $1 bills. Watching the clean new
banknotes come from his press, the refugee turned banker, thought to himself: "My! how simple it is to make
money. All its value comes from the products it will buy. Without produce these bills are worthless. My five naive
customers don't realize that. They actually think that this new money derives its value from gold! Their very
ignorance makes me their master." And as evening drew on, the five came to Oliver -- on the run.
8. Who owns the new money?
Five bundles of new banknotes were sitting on the table.
"Before distributing the money," said the banker, "I would like your attention.
"Now, the basis of all money is gold. And the gold stored away in the vault of my bank is my gold. Consequently, the
money is my money. Oh! don't look so discouraged. I'm going to use it as you see fit. However, you'll have to pay
interest. Considering that money is scarce here, I don't think 8% is unreasonable."
"Oh, that's quite reasonable, Mr. Oliver."
"One last point, my friends. Business is business, even between pals. Before you get the money, each of you is going
to sign a paper. By it you will bind yourselves to pay both interest and capital under penalty of confiscation of
property by me. Oh! this is a mere formality. Your property is of no interest to me. I'm satisfied with money. And I
feel sure I'll get my money and that you'll keep your property."
"That makes sense, Mr. Oliver. We're going to work harder than ever in order to pay you back."
"That's the spirit. And any time you have a problem, come and see me. Your banker is your best friend. Now, here's
two hundred dollars for each of you."
And our five brave fellows went away, their hands full of dollar bills, their heads swimming with the ecstasy of
having money.
9. A problem in arithmetic
And so Oliver's money went into circulation on the island. Trade, simplified by money, doubled. Everybody was happy. And
the banker was always greeted with unfailing respect and gratitude.
But now, let's see... Why does Tom, the prospector, look so grave as he sits busily figuring with a pencil and paper? It is
because Tom, like the others, has signed an agreement to repay Oliver, in one year's time, the $200 plus $16 interest. But
Tom has only a few dollars in his pocket and the date of payment is near. For a long time he wrestled with the problem from
his own personal point of view, without success. Finally he looked at it from the angle of the little community as a whole.
"Taking into consideration everyone on the island, as a whole, he missed, "are we capable of meeting our obligations?
Oliver turned out a total of $1000. He's asking in return $1080. But even if we bring him every dollar bill on the island we'll
still be $80 short. Nobody made the extra $80. We turn out produce, not dollar bills. So Oliver can take over the entire island
since all the inhabitants together can't pay him back the total amount of capital and interest.
"Even if a few, without any thought for the others, were able to do so, those others would fall. And the turn of the first spared
would come eventually. The banker will have everything. We'd better hold a meeting right away and decide what to do about
it." Tom with his figures in his hand, had no difficulty in proving the situation. All agreed they had been duped by the kindly
banker. They decided upon a meeting at Oliver's.
10. The benevolent banker
Oliver guessed what was on their minds but put up his best front. While he listened, the impetuous Frank stated the case for
the group.
"How can we pay you $1080 when there is only $1000 on the entire island?"
"That's the interest, my friends. Hasn't your rate of production increased?"
"Sure, but the money hasn't. And it's money you're asking for, nor our products. You are the only one who can make
money. You've made only $1000 and yet you ask $1080. That's an impossibility!"
"Now listen, fellows. Bankers, for the greater good of the community, always adapt themselves to the conditions of the
times. I'm going to require only the interest. Only $80. You will go on holding the capital."
"Bless you, Mr. Oliver! Are you going to cancel the $200 each of us owes you?"
"Oh no! I'm sorry, but a banker never cancels a debt. You still owe me all the money you borrowed. But you'll pay me, each
year, only the interest. If you meet the interest payments faithfully each year I won't push you for the capital. Maybe some
won't be able to repay even the interest because of the money changing hands among you. Well, organize yourselves like a
nation. Set up a system of money contributions, what we call taxes. Those who have more money will be taxed more: the
poor will pay less. See to it that you bring me in one lump sum, the total of the amount of interest and I'll be satisfied. And
your little nation will thrive." So our boys left, somewhat pacified but still dubious.
11. Oliver exults
Oliver is alone. He is deep in reflection. His thoughts run thus:
"Business is good. These boys are good workers, but stupid. Their ignorance an naivety is my strength. They ask for money
and I give them the chains of bondage. They give me orchids and I pick their pockets.
"True enough, they could mutiny and throw me into the sea. But pshaw! I have their signatures. They're honest,
hardworking people were put into this world to serve the financiers.
"Oh great Mammon! I feel your banking genius coursing through my entire being! Oh, illustrious master! how right you
were when you said: "Give me control of a nation's money and I won't mind who makes its laws." I am the master of
Salvation Island because I control its money.
"My souls is drunk with enthusiasm and ambition. I feel I could rule the universe. What I, Oliver, have done here, I can do
throughout the entire world. Oh! if only I could get off this island! I know how I could govern the world without wearing a
crown.
"My supreme delight would be to install my philosophy in the minds of those who lead society: bankers, industrialists,
politicians, reformers, teachers, journalists, -- all would be my servants. The masses are content to live in slavery when the
elite from among them are constituted their overseers."
12. The cost of living unbearable

Meanwhile things went from bad to worse on Salvation Island. Production was up, bartering had dropped to a minimum. Oliver
collected his interest regularly. The others had to think of setting money aside for him. Thus, money tended to clot instead of
circulating freely. Those who paid the most in taxes complained against those who paid less. They raised the prices of their
goods to compensate for this loss. The unfortunate poor who paid no taxes lamented the high cost of living and bought less.
Morale was low. The joy went out of living. No one took an interest in his work. Why should he? Produce sold poorly. When
they made a sale they had to pay taxes to Oliver. They went without things. It was a real crisis. And they accused one another
of wanting in charity and of being the cause of the high cost of living. One day, Harry, sitting in his orchard, pondered over the
situation. He finally arrived at the conclusion that this "progress", born of a refugee's monetary system, had spoiled everything
on the island. Unquestionably all five had their faults; but Oliver's system seemed to have been specifically designed to bring
out the worst in human nature. Harry decided to demonstrate this to his friends and to unite them for action. He started with
Jim, who was not hard to convince. "I'm no genius", he said, "but for a long time now there's been a bad smell about this
banker's system." One by one they came to the same conclusion and ended by deciding upon another conference with Oliver.

13. Interview with the unshackle

A veritable tempest burst about the ears of the banker.
"Money's scarce on the island, fellow, because you take it away from us! We pay you and pay you and still owe you as much
as at the beginning. We work our heads off! We've the finest land possible and yet we're worse off than before the day of
your arrival. Debts! Debts! up to our necks in debts!"
"Oh! now boys, be reasonable! Your affairs are booming and it's thanks to me. A good banking system is a country's best
asset. But if it is to work beneficially you must have faith in the banker. Come to me as you would to a father... is it more
money you want? Very well. My barrel of gold is good for many thousands of dollars more. See, I'm going to mortgage your
latest acquisitions and lend you another thousand dollars right now."
"So! Now our debt goes up to $2000! We are going to have twice as much interest to pay for the rest of our lives!"
"Well, yes -- but I'll lend you more whenever the value of your property increases. And you'll never pay anything but the
interest. You'll lump all your debts into one -- what we call a consolidated debt. And you can add to the debt year after year."
"And raise the taxes year after year?"
"Obviously. But your revenues also increase every year."
"So then, the more the country develops each year because of our labor, the more the public debt increases!"
"Why, of course! Just as in your Canada -- or in any other part of the civilized world for that matter. The degree of a country's
civilization is always gauged by the size of its debt to the bankers".

14. The wolf devours the lambs

"And that's a healthy monetary system, Mr. Oliver?"
"Gentlemen, all sound money is based on gold and it comes from the banks in the form of debts. The national debt is a
good thing. It keeps men from becoming too satisfied. It subjugates governments to the supreme and ultimate wisdom, that
which is incarnate in bankers. As a banker, I am the torch of civilization here on your little island. I will dictate your
politics and regulate your standard of living."
"Mr. Oliver, we're simple uneducated folks, but we don't want that kind of civilization here. We'll not borrow another cent
off you. Sound money or not, we don't want any further transactions with you."
"Gentlemen, I deeply regret this very ill-advised decision of yours. But if you break with me, remember, I have your
signatures. Repay me everything at once -- capital and interest."
"But that's impossible, sir. Even if we give you all the money on the island we still won't be square with you."
"I can't help that. Did you or did you not sign? Yes? Very well. By virtue of the sanctity of contracts I hereby seize your
mortgaged property which was what you agreed to at the time you were so happy to have my help. If you don't want to
serve willingly the supreme authority of money then you'll obey by force. You'll continue to exploit the island, but in my
interests and under my conditions. Now, get out! You'll get your orders from me tomorrow."
15. Control of the press
Oliver knew that whoever controlled the nation's money, controlled the nation. But he knew also that to maintain that
control it was necessary to keep the people in a state of ignorance and to distract them by a variety of means.
Oliver had observed that of the five islanders, two were conservatives and three were liberals. That much had evolved from
their evening conversations, especially after they had fallen into slavery. And between the conservatives and those who
were liberals, there was constant friction.
On occasions, Harry, the most neutral of the five, considering that all had the same needs and aspirations, had suggested the
union of the people to put pressure on the authorities. Such a union, Oliver could not tolerate; it would mean the end of his
rule. No dictator, financial or otherwise, could stand before a people united and educated.
Consequently, Oliver set himself to foment, as much as possible, political strife between them.
The refugee put his press to work turning out two weekly newspapers, "The Sun" for the liberals and "The Star" for the
conservatives. The general tenor of "The Sun" was: "If you are no longer master, it is because of those traitorous
conservatives who have sold out to big business". That of "The Star": "The ruinous state of business and the national debt
can be traced directly to the political responsibility of those unmentionable liberals". And the two factions wrangled
ferociously, forgetting the one who had forged their chains, that money master, the banker Oliver.
16. A priceless bit of flotsam
One day, Tom, the prospector on a small beach hidden by tall grass at one end of the island, a lifeboat, empty except for a
trunk in good condition lying in the bottom of it.
He opened the trunk. Among the articles within, a sort of album caught his eye: "The First Year of Social Credit". Between
the covers he found the first volume of a Social Credit publication from Canada.
Curious, Tom sat down and began to read the volume. His interest grew; his face lit up.
"Well just look at this!" he cried out loud. "This is something we should have known a long time ago."
"Money gets its value, not from gold, but from the products which that money buys.
"Simply put, money should be a sort of accountancy, credits passing from one account to another according to purchases
and sales. The sum total of production.
"Each time production increases there is a corresponding increase in the amount of money. Never at any time should
interest be paid on new money. Progress is marked, not by an increase in the public debt, but by the issuance of an equal
dividend to each individual... Prices are adjusted to the general purchasing power by a coefficient of prices. Social Credit..."
But Tom could no longer contain himself. He got up and set off at a run, the book in his hands, to share this glorious
discovery with his four comrades.
17. Money-- elementary accounting
So Tom became the teacher. He taught the others what he had learned from that God-sent Social Credit publication.
"This", he said, "is what we can do without waiting for a banker and his keg of gold or without underwriting a debt.
"I open an account in the name of each of you. In the right hand column are the credits which increase your account; to the
left are the debits which subtract from your account.
"Each wants $200 to begin with. Very well. We write $200 to the credit of each. Each immediately has $200.
"Frank buys some goods from Paul for $10. I deduct $10 from Frank leaving him $190. I add $10 to Paul and he now has
$210. "Jim buys from Paul to the amount of $8. I deduct from Jim $8 leaving him $192. Paul now has $218.
"Paul buys wood from Frank for $15. I deduct $15 from Paul leaving $203. I add $15 to Frank's account and it goes back to
$205. And so we continue; from one account to another in the same fashion as paper banknotes go from one man's pocket
to another's. "If someone needs money to expand production, we issue him the necessary amount of new credit. Once he
has sold his products he repays the sum to the credit fund. The same with public works; paid for by new credits.
"Likewise, each one's account is periodically increased but without taking credits from anyone, in order that all may benefit
from the progress society makes. That's the national dividend. In this fashion money becomes an instrument of service."
18. The banker's despair
Everyone understood. The members of this little community became Social Creditors. The following day, Oliver, the
banker, received a letter signed by the five:
"Dear sir' without the slightest necessity you have plunged us into debt and exploited us. We don't need you anymore to run
our money system. From now on we'll have all the money we need without gold, debts or thieves. We are establishing, at
once, the system of Social Credit on the island. The national dividend is going to replace the national debt.
"If you insist on being repaid, we can repay you all the money you gave us. But not a cent more. You cannot lay claim to
that which you have not made."
Oliver was in despair. His empire was crumbling. His dreams shattered. What could he do? Arguments would be futile. The
five were now Social Creditors: money and credit were now not more mysterious to them than they were to Oliver.
"Oh!", said Oliver, "these men have been won to Social Credit. Their doctrine will spread far more quickly than mine.
Should I beg forgiveness? become one of them? I, a financier and a banker? Never! Rather, I shall try and put as much
distance between them and me as I can!"
19. Fraud unmasked
To protect themselves against any future claim by Oliver, our five men decided to make him sign a document
attesting that he again possessed all he had when he first arrived on the island. An inventory was taken; the boat, the
oars, the little press and the famous barrel of gold. Oliver had to reveal where he had hidden the gold. Our boys
hoisted it from the hole with considerably less respect than the day they had unloaded it from the boat. Social Credit
had taught them to despise gold. The prospector, who was helping to lift the barrel, found it surprisingly light for
gold. If the barrel was full, he told the others, there was something in it besides gold.
The impetuous Frank didn't waste a moment; a blow of the axe and the contents of the barrel were exposed.
Gold? Not so much as a grain of it! Just rocks -- plain, worthless rocks!
Our men couldn't get over the shock.
"Don't tell us he could bamboozle us to this extent!"
"Were we such muttonheads as to go into raptures over the mere mention of gold?"
"Did we mortgage all our possessions for a few pieces of paper based on a few pounds of rocks? It's robbery
compounded by lies!"
"To think that we sulked and almost hated one another all because of such a fraud! That devil!"
Furious, Frank raised his axe. But already the banker had taken to his legs in full flight towards the forest.
20. Farewell to Salvation Island

After the opening of the barrel and the revelation of his duplicity, nothing further was heard of Oliver. Shortly after, a ship, cruising off the
normal navigation rout, noticed signs of life on this uncharted island and cast anchor a short distance offshore. The men learned that the
ship was en route to America. So they decided to take with them what they could carry and return to Canada. Above all, they made sure
to take back with them the album "The First Year of Social Credit" which had proven to be their salvation from the hands of the financier,
Oliver, and which had illumined their minds with an inextinguishable light. All five solemnly engaged themselves to get in touch with the
management of this paper, once back in Canada, and to become devoted and zealous apostles of the cause of Social Credit in Canada.

Who Is Running
America

There is no doubt but what the law is that a National Bank cannot lend its credit or become an
accommodation endorser." National Bank of Commerce v. Atkinson 55F
but they do it anyhow, because.....

Under the doctrine of Parens Patriae, "Government As Parent", as a result of the manipulated bankruptcy of the United
States of America, ALL the assets of the American people, their person, and of our country itself are held by the Depository
Trust Corporation at 55 Water Street, NY, NY, secured by UCC Commercial Liens, which are then monetized as "debt
money" by the Federal Reserve. It may interest you to know that under the umbrella of the Depository Trust Corporation lies
the CEDE Corporation, the Federal Reserve Corporation and the American Bar Association, the legal arm of the banking
interests.

The U.S. had sold out its government to private and international ownership, which under the term of
the "Freemason" Roosevelt had secretly but officially declared Bankruptcy in 1933. The terms for this debt had
underhandedly robbed the American people of all freedoms. A government of which claim is for the people, is by such
consequence, working against them. Indeed, what Roosevelt had thrown to the wolves was not his, nor the government's to
give. When our entire treasury department is owned by private corporations, they therefore are the Big Shareholders: they
in turn can now make the laws, control the status of society, and collect their debts from those pawns who made no such
agreement.
The Federal Reserve System is owned by:
Rothschild Bank of London
Rothschild Bank of Berlin
Warburg Bank of Hamburg
Warburg Bank of Amsterdam
Lazard Brothers of Paris
Israel Moses Seif Banks of Italy
Chase Manhattan Bank of New York
Goldman, Sachs of New York
Lehman Brothers of New York
Kuhn Loeb Bank of New York
The lawyers, bankers, foreign and domestic, the U.N., the wealthy all control the laws, money, the education system, taxes,
and essentially all three branches of government, including state government, and their functions. There is furthermore no
mystery behind lobbying as to why and how it exists. Now this power of Corporate U.S. is not new. The system of
government has more or less always only served to protect against tyranny imposed by the federal corporations. Under the
leadership of Roosevelt, however, the U.S. government had fully sold itself out to its Creditors. The entire nation and its
citizens had become the Debtors. Such was a grand step in New World Order in which the goal is to ignore the citizen, the
race, and the nation, but to gradually evolve into a one world government. Such a Debt therefore will never be paid down. It
is a contract that, in the broad scale, entitles enslavement for life, but for all generations to come. Since this state of
servitude under the sellout was never defined by government law but by international treaty, which included several
countries under its belt, this enslavement is, by consequence, so far above the law that it can never be fought against by
legal means, but by brute force, or international revolution. A nation must not merely overthrow its current government, its
agencies, and its Creditors, but also break off all ties from the International Bankers/Rulers, etc.

www.barefootsworld.net/usfraud.html
www.maxexchange.com/ybj/chapter_1.htm "As We Slept"

If the American people ever allow private banks to control the issue of their
currency, first by inflation, then by deflation, the banks...will deprive the people of all
property until their children wake-up homeless on the continent their fathers
conquered.... The issuing power should be taken from the banks and restored to the
people, to whom it properly belongs. -Thomas Jefferson

History records that the money changers have used every form of abuse, intrigue,
deceit, and violent means possible to maintain their control over governments by
controlling money and its issuance. -James Madison

If congress has the right under the Constitution to issue paper money, it was given
them to use themselves, not to be delegated to individuals or corporations. -Andrew
Jackson

The Government should create, issue, and circulate all the currency and credits
needed to satisfy the spending power of the Government and the buying power of
consumers. By the adoption of these principles, the taxpayers will be saved
immense sums of interest. Money will cease to be master and become the servant of
humanity. -Abraham Lincoln

Despite these warnings, Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he
wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial
nation is controlled by its system of credit. Our system of credit is concentrated. The growth of
the nation, therefore, and all our activities are in the hands of a few men. We have come to be
one of the worst ruled, one of the most completely controlled and dominated Governments in
the civilized world no longer a Government by free opinion, no longer a Government by
conviction and the vote of the majority, but a Government by the opinion and duress of a small
group of dominant men. -Woodrow Wilson
www.themoneymasters.com www.wizardsofmoney.org/episodes.html
 JURISDICTION

The Constitution of the United States mentions three areas of jurisdiction in which the courts may operate:

Common Law

Common Law is based on God's Law. Anytime someone is charged under the Common Law, there must be a "damaged
party". You are free under the Common Law to do anything you please, as long as you do not infringe on the life, liberty or
property of someone else. You have a right to make a "fool" of yourself provided you do not infringe on the life, liberty or
property of someone else. The Common Law does not allow for any government action which prevents a man from making
a fool of himself. For instance, when you cross over state lines in most states, you will see a sign which says, "BUCKLE
YOUR SEAT BELTS - IT'S THE LAW." This cannot be Common Law, because who would you injure if you did not buckle
up? Nobody. This would be compelled performance. But Common Law cannot compel performance. Any violation of
Common Law is a CRIMINAL ACT, and is punishable.

Equity Law

Equity Law is law which "compels performance". It compels you to perform to the exact letter of any contract that you are
under. So, if you have compelled performance, there must be a contract somewhere, and you are being compelled to
perform under the obligation of the contract. Now this can only be a civil action, not criminal. In Equity Jurisdiction, you
cannot be tried criminally, but you can be compelled to perform to the letter of the contract. If you then refuse to perform as
directed by the court, you can be charged with a criminal action. Are our seat belts Equity laws? No. They are not, because
you cannot be penalized or punished for not keeping to the letter of the contract.

Admiralty/Maritime Law

This is "civil" jurisdiction of Compelled Performance which also has Criminal Penalties for not adhering to the letter of the
contract, but this only applies to International Contracts. Now we can see what jurisdiction the seat belt laws (and all traffic
laws, building codes, ordinances, tax codes, etc.) are under. Whenever there is a penalty for failure to perform (such as
willful failure to file) that is Admiralty/Maritime Law and there must be a valid international contract in force. However, the
courts don't want to admit that they are operating under Admiralty/Maritime [hereafter noted by A/M] Jurisdiction, so they
took the international law or Law Merchant and adopted it into our codes. This is what the SC decided in the Erie vs.
Tomkins - that the decisions will be based on commercial law or business law and that it will have criminal penalties
associated with it. Since they were instructed not to call it A/M Jurisdiction, they call it Statutory Jurisdiction.

On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the
authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal
Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal
Reserve Bank would soon be out of business. The Christian Law Fellowship has exhaustively researched this
matter through the Federal Register and Library of Congress. We can now safely conclude that this Executive
Order has never been repealed, amended, or superceded by any subsequent Executive Order. In simple terms,
it is still valid. When President John Fitzgerald Kennedy - the author of Profiles in Courage -signed this Order, it
returned to the federal government, specifically the Treasury Department, the Constitutional power to create
and issue currency -money - without going through the privately owned Federal Reserve Bank. President
Kennedy's Executive Order 11110 [the full text is displayed further below] gave the Treasury Department the
explicit authority: "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the
Treasury." This means that for every ounce of silver in the U.S. Treasury's vault, the government could introduce
new money into circulation based on the silver bullion physically held there. As a result, more than $4 billion in
United States Notes were brought into circulation in $2 and $5 denominations. $10 and $20 United States
Notes were never circulated but were being printed by the Treasury Department when Kennedy was
assassinated. It appears obvious that President Kennedy knew the Federal Reserve Notes being used as the
purported legal currency were contrary to the Constitution of the United States of America. "United States
Notes" were issued as an interest-free and debt-free currency backed by silver reserves in the U.S. Treasury.
We compared a "Federal Reserve Note" issued from the private central bank of the United States (the Federal
Reserve Bank a/k/a Federal Reserve System), with a "United States Note" from the U.S. Treasury issued by
President Kennedy's Executive Order. They almost look alike, except one says "Federal Reserve Note" on the
top while the other says "United States Note". Also, the Federal Reserve Note has a green seal and serial
number while the United States Note has a red seal and serial number. President Kennedy was assassinated
on November 22, 1963 and the United States Notes he had issued were immediately taken out of circulation.
Federal Reserve Notes continued to serve as the legal currency of the nation. According to the United States
Secret Service, 99% of all U.S. paper "currency" circulating in 1999 are Federal Reserve Notes. Kennedy knew
that if the silver-backed United States Notes were widely circulated, they would have eliminated the demand for
Federal Reserve Notes. This is a very simple matter of economics. The USN was backed by silver and the FRN
was not backed by anything of intrinsic value. Executive Order 11110 should have prevented the national debt
from reaching its current level (virtually all of the nearly $9 trillion in federal debt has been created since 1963) if
LBJ or any subsequent President were to enforce it. It would have almost immediately given the U.S.
Government the ability to repay its debt without going to the private Federal Reserve Banks and being charged
interest to create new "money". Executive Order 11110 gave the U.S.A. the ability to, once again, create its own
money backed by silver and realm value worth something. Again, according to our own research, just five
months after Kennedy was assassinated, no more of the Series 1958 "Silver Certificates" were issued either,
and they were subsequently removed from circulation. Perhaps the assassination of JFK was a warning to all
future presidents not to interfere with the private Federal Reserve's control over the creation of money. It seems
very apparent that President Kennedy challenged the "powers that exist behind U.S. and world finance". With
true patriotic courage, JFK boldly faced the two most successful vehicles that have ever been used to drive up
debt:
1) war (Viet Nam); and,
2) the creation of money by a privately owned central bank. His efforts to have all U.S. troops out of Vietnam by
1965 combined with Executive Order 11110 would have destroyed the profits and control of the private Federal
Reserve Bank.

Executive Order 11110

AMENDMENT OF EXECUTIVE ORDER NO. 10289 AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS
AFFECTING THE DEPARTMENT OF THE TREASURY. By virtue of the authority vested in me by section 301 of title 3 of the United States
Code, it is ordered as follows:
SECTION 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended - (a) By adding at the end of
paragraph 1 thereof the following subparagraph (j): "(j) The authority vested in the President by paragraph (b) of section 43 of the Act of
May 12, 1933, as amended (31 U.S.C. 821 (b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the
Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to
coin standard silver dollars and subsidiary silver currency for their redemption," and (b) By revoking subparagraphs (b) and (c) of paragraph
2 thereof. SECTION 2. The amendment made by this Order shall not affect any act done, or any right accruing or accrued or any suit or
proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be
enforced as if said amendments had not been made. JOHN F. KENNEDY THE WHITE HOUSE, June 4, 1963

Once again, Executive Order 11110 is still valid. According to Title 3, United States Code, Section 301 dated January 26, 1998:
Executive Order (EO) 10289 dated Sept. 17, 1951, 16 F.R. 9499, was as amended by:
EO 10583, dated December 18, 1954, 19 F.R. 8725;
EO 10882 dated July 18, 1960, 25 F.R. 6869;
EO 11110 dated June 4, 1963, 28 F.R. 5605;
EO 11825 dated December 31, 1974, 40 F.R. 1003;
EO 12608 dated September 9, 1987, 52 F.R. 34617
The 1974 and 1987 amendments, added after Kennedy's 1963 amendment, did not change or alter any part of Kennedy's EO 11110. A
search of Clinton's 1998 and 1999 EO's and Presidential Directives has also shown no reference to any alterations, suspensions, or
changes to EO 11110.

The Federal Reserve Bank, a.k.a Federal Reserve System, is a Private Corporation. Black's Law Dictionary defines
the "Federal Reserve System" as: "Network of twelve central banks to which most national banks belong and to
which state chartered banks may belong. Membership rules require investment of stock and minimum reserves."
Privately-owned banks own the stock of the FED. This was explained in more detail in the case of Lewis v. United
States, Federal Reporter, 2nd Series, Vol. 680, Pages 1239, 1241 (1982), where the court said: "Each Federal Reserve
Bank is a separate corporation owned by commercial banks in its region. The stock-holding commercial banks elect
two thirds of each Bank's nine member board of directors". The Federal Reserve Banks are locally controlled by their
member banks. Once again, according to Black's Law Dictionary, we find that these privately owned banks actually
issue money: "Federal Reserve Act. Law which created Federal Reserve banks which act as agents in maintaining
money reserves, issuing money in the form of bank notes, lending money to banks, and supervising banks.
Administered by Federal Reserve Board". The privately owned Federal Reserve (FED) banks actually issue (create)
the "money" we use. In 1964, the House Committee on Banking and Currency, Subcommittee on Domestic Finance,
at the second session of the 88th Congress, put out a study entitled Money Facts which contains a good description of
what the FED is: "The Federal Reserve is a total money-making machine. It can issue money or checks. And it never
has a problem of making its checks good because it can obtain the $5 and $10 bills necessary to cover its check
simply by asking the Treasury Department's Bureau of Engraving to print them". Any one person or any closely knit
group who has a lot of money has a lot of power. Now imagine a group of people who have the power to create
money. Imagine the power these people would have. This is exactly what the privately owned FED is!
No man did more to expose the power of the FED than Louis T. McFadden, who was the Chairman of the House Banking
Committee back in the 1930s. In describing the FED, he remarked in the Congressional Record, House pages 1295 and
1296 on June 10, 1932:

"Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever
known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve
Board, a Government Board, has cheated the Government of the United States and he people of
the United States out of enough money to pay the national debt. The depredations and the
iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost
this country enough money to pay the national debt several times over. This evil institution has
impoverished and ruined the people of the United States; has bankrupted itself, and has
practically bankrupted our Government. It has done this through the maladministration of that law
by which the Federal Reserve Board, and through the corrupt practices of the moneyed vultures
who control it".

Some people think the Federal Reserve Banks are United States Government institutions. They are not
Government institutions, departments, or agencies. They are private credit monopolies which prey upon the
people of the United States for the benefit of themselves and their foreign customers. Those 12 private credit
monopolies were deceitfully placed upon this country by bankers who came here from Europe and who repaid
us for our hospitality by undermining our American institutions. The FED basically works like this: The
government granted its power to create money to the FED banks. They create money, then loan it back to the
government charging interest. The government levies income taxes to pay the interest on the debt. On this
point, it's interesting to note that the Federal Reserve Act and the sixteenth amendment, which gave congress
the power to collect income taxes, were both passed in 1913. The incredible power of the FED over the
economy is universally admitted. Some people, especially in the banking and academic communities, even
support it. On the other hand, there are those, such as President John Fitzgerald Kennedy, that have spoken
out against it. His efforts were spoken about in Jim Marrs' 1990 book Crossfire:"

Another overlooked aspect of Kennedy's attempt to reform American society involves money. Kennedy
apparently reasoned that by returning to the constitution, which states that only Congress shall coin and
regulate money, the soaring national debt could be reduced by not paying interest to the bankers of the Federal
Reserve System, who print paper money then loan it to the government at interest. He moved in this area on
June 4, 1963, by signing Executive Order 11110 which called for the issuance of $4,292,893,815 in United
States Notes through the U.S. Treasury rather than the traditional Federal Reserve System. That same day,
Kennedy signed a bill changing the backing of one and two dollar bills from silver to gold, adding strength to the
weakened U.S. currency. Kennedy's comptroller of the currency, James J. Saxon, had been at odds with the
powerful Federal Reserve Board for some time, encouraging broader investment and lending powers for banks
that were not part of the Federal Reserve system. Saxon also had decided that non-Reserve banks could
underwrite state and local general obligation bonds, again weakening the dominant Federal Reserve banks".
In a comment made to a Columbia University class on Nov. 12, 1963, Ten days before his assassination,
President John Fitzgerald Kennedy allegedly said: "The high office of the President has been used to foment a
plot to destroy the American's freedom and before I leave office, I must inform the citizen of this plight."
In this matter, John Fitzgerald Kennedy appears to be the subject of his own book... a true Profile of Courage.
This research report was compiled for Lawgiver. Org. by Anthony Wayne.

Banking
Cartel
 Banking Cartel is the Cause of Humanity's Woes

By Henry Makow Ph.D.

June 26, 2002

"The Secrets of the Federal Reserve" by Eustace Mullins

"I believe that banking institutions are more dangerous to our liberties than standing armies." ---Thomas Jefferson
In November 1949, Eustace Mullins, 25, was a researcher in Washington DC when friends invited him to visit the famous
American poet Ezra Pound, who was confined at St. Elizabeth's Mental Hospital and listed as a "political prisoner." A
leading figure in Modern English literature, Pound was the editor and critic who introduced the world to James Joyce, W.B.
Yeats and T.S. Eliot. During the Second World War, he was charged with treason for broadcasts on Rome Radio that
questioned the motives behind America's involvement. Pound commissioned Mullins to examine the influence of the
banking establishment on U.S. policy. Mullins spent every morning for two years in the Library of Congress and met with
Pound every afternoon. The resulting manuscript, "The Secrets of the Federal Reserve" proved too hot for any American
publisher to handle. Nineteen rejected it. One said, "you'll never get this published in New York." When it finally appeared in
Germany in 1955, the U.S. Military Government confiscated all 10,000 copies and burned them.

Thanks to the American Patriot Friends Network, this book is freely available on line. (I recommend you save it on your
desktop, as I did.) Why is it so (excuse the pun) inflammatory? Essentially it paints a picture of the world, and the role of the
United States, which is radically different from the one we are given in school or in the media.

"Notwithstanding the war of independence against England," writes Mullins, "we remained an economic and financial colony
of Great Britain." Between 1865 and 1913, he says London bankers led by the Rothschilds used agents such as J.P. Morgan
and J.D. Rockefeller to gain control of American industry and organize it into cartels. Where did these bankers get the
money? For over 200 years, European bankers have been able to draw on the credit of their host countries to print it! In the
Seventeenth Century, the moneylenders and the aristocracy made a pact. If the king would make paper currency a liability
of the state, the moneylenders would print as much as he liked! Thus the Banks of England, France and the Reichsbank
came into being but they were all private corporations and remain so today. According to this nefarious pact, the
moneylenders got to charge interest on assets they created out of thin air. The aristocracy all took shares in the central
banks plus they got to finance a burgeoning government and to wage costly wars.

This piece of chicanery is at the heart what plagues humanity. The bankers have a vested interest in the state (i.e. the
people) incurring as much debt as possible. They are behind the Marxist, socialist and liberal movements which call for big
government and social spending. They are behind the catastrophic wars of the last century. The Warburgs financed the
Bolshevik Revolution. The Bank of England financed the rise of Hitler. Prescott Bush (W's grandfather) was head of Brown
Brothers Harriman, which financed the construction of the Nazi war machine. Naturally if you can create money out of thin
air, your first instinct is to buy tangible assets with it. There is a powerful impulse to use debt to control nations and take over
their real assets. This is the essence of the so-called Third World Debt crisis. Dedicated to owning all wealth and enslaving
humanity, an irresistible vampire has been unleashed upon the world Much of Mullins book is devoted to the subterfuge by
which the United States was drawn into its lethal embrace. In 1913, the Owen-Glass Bill gave mostly foreign-controlled
banks (posing as "the Federal Reserve") the right to create currency based on the credit of the United States government
and to charge it interest for doing it! To accomplish this, the bankers had to rig the election of 1913 in order to get Woodrow
Wilson elected. Then their stooges in Congress passed the legislation on December 22 after their opponents had gone
home for Christmas.

"This act establishes the most gigantic trust [cartel] on earth," Congressman Charles Lindbergh said at the time. "When the
President signs this bill; the invisible government by the Monetary Power will be legalized. The people may not know it
immediately but the day of reckoning is only a few years removed." Mullins explains that the legislation passed just in time
for the American people to finance World War One. After maintaining standing armies for 50 years, European powers no
longer could afford the luxury of another war. But the U.S. was relatively debt free and made the whole thing possible. What
would WWI have been without Germany? Apparently Germany was not self-sufficient in food and would have had to sit out
this war. In the nick of time, the bankers organized something called "The Belgium Relief Committee" which channeled
billions of dollars worth of U.S. meat and potatoes not to Belgium but to Germany. When Edith Cavell, an American working
in a Belgium hospital pointed this out, British intelligence had the Germans arrest and execute her. Mullins makes a
convincing case that every U.S. President since Wilson has been a lackey of the bankers. J.F. Kennedy was assassinated
because he started to print his own U.S. government-backed currency. This is also the transgression that led to the murders
of Presidents Abraham Lincoln and James Garfield.

Last year alone, the American people paid $360 billion in interest to the bankers. To maintain this massive fraud, the
bankers enforce an iron grip on the political and cultural organs of the nation. According to Mullins, "The New York Times" is
owned by the Kuhn Loeb while "The Washington Post" is owned by Lazard Freres. In Europe the Rothschilds own Reuters
as well as the French and German news services. I presume US publishers, TV networks and movie producers are similarly
beholden. Rockefellers, Carnegies and the Fords endow the nations' libraries and universities. Journalists and professors
dutifully parrot fantasies about democracy and freedom. Mind control laboratories run by the CIA and the British army
(TheTavistock Institute) dream up ways to manipulate and undermine the population. The psychological sterilization of the
human female ("feminism") is an example. The "War on Terror" is part of the banking cabal's plan to consolidate its grip on
humanity in a friendly (or not so friendly) fascist "New World Order." They want to secure their political, economic and social
grip on the obstreperous Muslim world, as well as build up a security apparatus in case the docile populations of the West
become restive. Well, at least the cosmic battle between Good and Evil is out in the open at last!

Henry Makow, is the inventor of the board game Scruples, and the author of A Long Way to go for a Date. He received his Ph.D. in English
Literature from the University of Toronto. He welcomes your feedback and ideas at henry@savethemales.ca.

DEFICIT SPENDING
Here is the latest stunning news: Last month, the U.S. trade deficit widened to a new record - $60.3 billion. "Imports soar,"
says CNN. What a disappointment. The falling dollar was supposed to reverse the trade deficit; it was supposed to
rebalance the global economy. Just yesterday we printed a comment from Arthur Laffer, which appeared in the Wall Street
Journal. The celebrated dreamer thought the dollar decline was over. It had done its job, he thought - setting the world's
books straight. Alas...not quite...or not yet...or not at all! We have been saying that Americans spend ALMOST $2 billion
more per day than they earn. Now, we can save a word. Every day that goes by makes us $2 billion poorer. Poorer? "Does
not the money come back to us?" asks Arthur Laffer. Andy Kessler wants to know, "Does not it boost up the values of our
houses, our bonds, and our stocks? Isn't the whole world eager to place its money in America - because our economy is so
dynamic, so free, so fetching in every way?" We simpletons at The Daily Reckoning can only understand the situation by
reducing it to its essentials: One town sells meat. Another sells bread. Trading with each other, the meat eaters in one town
buy more meat than they sell bread to the other town. The meat eaters (bread makers) run a trade deficit. The meat
producers run a surplus. In order to continue eating as much meat as they want, the meat eaters borrow money from the
meat producers. The meat eaters mortgage their houses and bread ovens in order to continue consuming meat. Each day
that goes by, the meat sellers gain a larger claim on the bread makers' property. It seems simple enough - the meat
producers get richer; the meat consumers get poorer. But wait, what if the meat eaters' houses go up in price? What if their
shrewd central bankers lower the price of credit in order to keep them buying...and triggers a property boom? What if the
free-spending ways of the meat eaters make their economy seem irresistibly dynamic? What if the meat producers can
hardly wait to invest in it? How do these additional circumstances change things? Not at all! They just make the essential
nature of the transaction harder to see: one group spends more than it makes. The other takes the money and buys up
productive assets. The bread makers are made no richer when foreigners buy their ovens! They are no richer when
foreigners own their houses. Nor are they made richer when the nominal value of their houses goes up; the house itself still
gives exactly the same service. The bread makers may think they are getting richer. But they, like millions of Americans and
a few popular economists, are hallucinating.

A Daily Reckoning reader writes: "The next time you are in Caesar's Palace, notice the small sign by the door. Like a pack of cigarettes,
there is a warning. Gambling can be addictive; if you think you have a problem, call the number below to contact Gamblers Anonymous.

"That is the extent of the Alan Greenspan's warning: Credit can be addictive; if you think you have a problem, quit drinking
our punch." Our reader would lay the blame on the poor bread makers. If they have mortgaged their houses to buy meat - is
it not their own fault? They should have had more sense, our correspondent would say.

Well, yes. But our tired, cynical eyes turn towards our own central banker - Alan Greenspan, the world's most famous public
servant since Pontius Pilot. Is the maestro of American casino finance completely innocent? We don't think so. He did
something that no casino would dare to do - he rigged the games to make the players think they were winning! No wonder
they can't pull themselves away from the slots. Every time they put in a quarter, out come two more. For more than two
years, he has lent money at interest rates below the inflation rate. Who can blame the poor schmucks for taking it? All they
had to do was to "take out" a little loan from the Bank of Ever-Rising Housing Equity...and they could buy more meat! And
weren't the meat producers happy! It gave them more cash to buy up assets.

Notes of Debt are not Income

http://www.wealth4freedom.com/money/nod.htm
Recently, Levi Philos, whom I had asked about the e-mail below, did some searching of his own, and came up with the
article by The Informer that follows below the e-mail. I think you'll find all of this to be very interesting AND useful! Levi
Philos wrote:
Now I understand the full meaning of this message posted to yahoo group tips_and_tricks (archives limited to members)
where "brokenwrench" posted on Feb 10, 05: ( http://groups.yahoo.com/group/tips_and_tricks/message/7411 )
"The IRS has never tried to collect, it has been over 25 years since I was audited, and then I got a refund. I have a stamp
that prints [DEPOSITED FOR CREDIT ON ACCOUNT OR EXCHANGED FOR NON-NEGOTIABLE FEDERAL RESERVE
NOTES OF FACE VALUE]
when I was audited, I produced the front and back copies of my paychecks to the irs man. He took a break and came back
and told me that those checks endorsed that way were not taxable income. I got in a hurry and open signed 3 of my checks,
those were the only ones I had that they said they could tax that is the last I heard from them."
 Making checks a non-taxable event
This is all based upon what is lawful money of value and HJR-192 (House Joint Resolution-192, June 5, 1933) , that none is
in circulation for private use by the public. There are no lawful dollars out there only credit and debt ledger entrees, and no
one gets paid for anything with anything of valuable substance. The IRS can't tax credit, debt, or barter. The Congress
licensed the use of FRNs to be used as money, as a medium or exchange for discharge of public and private debt into the
US bankruptcy. At that point FRNs became contraband and that gives the BATF and the IRS jurisdiction over its use and
transfer. Just like trafficking in alcohol, guns, drugs, or tobacoo , or other substances subject to excise taxes. There are
many types of commercial paper that properly prepared can discharge debt other than FRNs but few know how to use them.
Using FRNs is licensed money laundering, plain and simple. When I get a check, it says "dollars" on the front. If I endorse it
openly, I just testified I received dollars of valuable substance, even though there are none. When I stamp or write:
DEPOSITED FOR CREDIT ON ACCOUNT OR EXCHANGED FOR NON-REDEEMABLE FEDERAL RESERVE NOTES
I just corrected the error on the front and converted the check into a bill of exchange. In other words: a barter transaction of
two different kinds of things being traded even-up for equal value are not taxable, there was no sale or financial gain just a
private trade. So, brokenwrench has cut a Gordion Knot with a pen, instead of a sword. If you wish to use such a sharp pen,
you would do well to read the article below, and if that doesn't lead you to study further then you don't understand enough
about the honing and care of a good blade...start over with a study of the life of The Master who told his disciples to sell their
cloaks to buy a sword and intervened when Peter used his: Exhaust administrative remedy, first! Ignorance is curable.
-Fred
========================= ====================================
Re: Notes of Debt are not Income
( http://www.atgpress.com/inform/tx064.htm is printed out below.) WHAT TO PRESENT ADMINISTRATIVELY TO SHOW
THAT YOU HAVE NO INCOME.
By: The Informer
(Fred's note: Any words in bold-face parentheses are my addition, and any bold-face type in the text is my added emphasis. The author has
placed his notes/insertions in [squarebrackets]. I will make them bold-blue Italic. All of author's words are in blue Italic type. The author also
specified red type in certain quoted text, and I left it that way.)
Here is a observation that no one realizes, or even knows it exists. Here is a problem that may be brought before a court it you are drug
into one. But it is better used administratively. Just a hypotheses. Could it work? Who knows?
(1) You work for a company.
(2) You receive a negotiable instrument for your work (a check).
(3) You have to cash it at a bank.
(4) You are given federal reserve notes in exchange.
(5) You have not been paid anything but worthless securities.
So now let's put on your thinking caps and do some digging starting with:
TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter B > PART VI > §
§ 165. Losses
Release date: 2003-05-15
(a) General rule
There shall be allowed as a deduction any loss sustained during the taxable year and not compensated for by insurance or otherwise.
(b) Amount of deduction
For purposes of subsection (a), the basis for determining the amount of the deduction for any loss shall be the adjusted basis provided in section 1011 for
determining the loss from the sale or other disposition of property (think: your labor).
(c) Limitation on losses of individuals
In the case of an individual, the deduction under subsection (a) shall be limited to------?
(1) losses incurred in a trade or business;
(2) losses incurred in any transaction entered into for profit, though not connected with a trade or business; and
(3) except as provided in subsection (h), losses of property not connected with a trade or business or a transaction entered into for profit, if such losses
arise from fire, storm, shipwreck, or other casualty, or from theft.
(d) Wagering losses
Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions.
(e) Theft losses
For purposes of subsection (a), any loss arising from theft shall be treated as sustained during the taxable year in which the taxpayer discovers such loss.
(f) Capital losses
Losses from sales or exchanges of capital assets shall be allowed only to the extent allowed in sections 1211 and 1212.
(g) Worthless securities
(1) General rule
If any security which is a capital asset becomes worthless during the taxable year, the loss resulting therefrom shall, for purposes of this subtitle, be
treated as a loss from the sale or exchange, on the last day of the taxable year, of a capital asset.
(2) Security defined
For purposes of this subsection, the term "security" means?
(A) a share of stock in a corporation;
(B) a right to subscribe for, or to receive, a share of stock in a corporation; or
(C) a bond, debenture, note, or certificate, or other evidence of indebtedness, issued by a corporation or by a government or political subdivision
thereof, with interest coupons or in registered form.
Ok so now you have been given "evidences of debt" for your work. You have never made "income" but received evidences of debt. The US Treasury admits
to (g) above in its website (and you really must visit this website!):
http://www.ustreas.gov/education/faq/currency/legal-tender.shtml
wherein the website states:
"Federal Reserve notes are legal tender currency notes. The twelve Federal Reserve Banks issue them into circulation pursuant to the Federal Reserve Act
of 1913. A commercial bank belonging to the Federal Reserve System can obtain Federal Reserve notes from the Federal Reserve Bank in its district
whenever it wishes. It must pay for them in full, dollar for dollar, by drawing down its account with its district Federal Reserve Bank.
Federal Reserve Banks obtain the notes from our Bureau of Engraving and Printing (BEP). It pays the BEP for the cost of producing the notes, which then
become liabilities of the Federal Reserve Banks, and obligations of the United States Government.
Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral
is chiefly gold certificates and United States securities. This provides backing for the note issue. The idea was that if the Congress dissolved the Federal
Reserve System, the United States would take over the notes (liabilities). This would meet the requirements of Section 411, but the government would
also take over the assets, which would be of equal value. Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on
the collateral specifically held against them.
Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933.
The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed"
by all the goods and services in the economy."
(The underlined sentence above, deserves attention because a man once wrote (I believe to Alfred Adask, publisher of AntiShyster magazine) that he had
robbed a bank, was caught, and with the aid of counsel, was prepared to argue in court that since he had taken only Federal Reserve Notes, he had taken
nothing of "value" and therefore could not be guilty of the criminal code section he was accused of violating. Apparently the prosecutor decided to drop
the case, rather than have his argument go on the public record. This was probably more than 10 years ago. Having read what follows, I can assure you
that our author will suggest no such course of action! And, of course, neither do I! I won't even make this note in the boldface type.)
Now they, not you, have established that their confidence game, what you received in exchange for the company draft (check) was absolutely nothing.
They are valueless so you exchanged your labor for valueless paper that has a lien on it already. They are identified in two statutes (Code) and they are
Title 18 Section 8 wherein it states:
TITLE 18 > PART I > CHAPTER 1 > § 8 Release date: 2004-08-06
§ 8. Obligation or other security of the United States defined
The term "obligation or other security of the United States" includes all bonds, certificates of indebtedness, national bank currency, Federal Reserve
notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of
deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of
whatever denomination, issued under any Act of Congress, and canceled United States stamps.
And the second statute (Code) is:
CITE-
12 USC SUBCHAPTER XII - FEDERAL RESERVE NOTES 01/23/00
-EXPCITE-
TITLE 12 - BANKS AND BANKING
CHAPTER 3 - FEDERAL RESERVE SYSTEM
SUBCHAPTER XII - FEDERAL RESERVE NOTES
-HEAD-
SUBCHAPTER XII - FEDERAL RESERVE NOTES
-CITE
12 USC Sec. 411 01/23/00
-EXPCITE-
TITLE 12 - BANKS AND BANKING
CHAPTER 3 - FEDERAL RESERVE SYSTEM
SUBCHAPTER XII - FEDERAL RESERVE NOTES
-HEAD-
Sec. 411. Issuance to reserve banks; nature of obligation redemption
-STATUTE-
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to
Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be
obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other
public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington,
District of Columbia, or at any Federal Reserve bank.
-SOURCE-
(Dec. 23, 1913, ch. 6, Sec. 16 (par.), 38 Stat. 265; Jan. 30, 1934, ch. 6, Sec. 2(b)(1), 48 Stat. 337; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat.
704.)
-REFTEXT-
REFERENCES IN TEXT
Phrase ''hereinafter set forth'' is from section 16 of the Federal Reserve Act, act Dec. 23, 1913. Reference probably means as set forth in sections 17 et seq.
of the Federal Reserve Act. For classification of these sections to the Code, see Tables.
-COD-
CODIFICATION
Section is comprised of first par. of section 16 of act Dec. 23, 1913. Pars. 2 to 4, 5, and 6, 7, 8 to 11, 13 and 14 of section 16, and pars. 15 to 18 of section
16 as added June 21, 1917, ch. 32, Sec. 8, 40 Stat. 238, are classified to sections 412 to 414, 415, 416, 418 to 421, 360, 248-1, and 467, respectively, of
this title. Par. 12 of section 16, formerly classified to section 422 of this title, was repealed by act June 26, 1934, ch. 756, Sec. 1, 48 Stat. 1225.
-MISC3-
AMENDMENTS
1934 - Act Jan. 30, 1934, struck out from last sentence provision permitting redemption in gold.
-CHANGE-
CHANGE OF NAME
Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.
-CROSS-
CROSS REFERENCES
Gold coinage discontinued, see section 5112 of Title 31, Money and Finance.

Since there is no more real "money" to be redeemed then, as the Treasury Web Site stated, they are worthless in conformity
with 26 USC 165 (g). Ergo: you cannot go into a bank and demand gold or silver coin for a federal reserve note. So the
question is, Have I received any income that is reportable for filing a tax form? Have I objected openly that I do not accept
federal reserve notes as "payment" for my labor? See the Padleford case 14 Ga. 438 wherein they stated:

"Supposing this not to be taxed for inspection purposes, has Congress consented to it being laid? It is certain that Congress
has not expressly consented. But is express consent necessary? There is nothing in the Constitution which says so. There
is nothing in the practice of men, or in the Municipal Law of men, or in the practice of nations, or the Law of nations that says
so. Silence gives consent, is the rule of business life. A tender of bills is as good as one of coin, unless the bills are
objected to. To stand by, in silence, and see another sell your property, binds you. [Ok people how many times has your
property (labor included) been stolen and turned over to the tax man in your silence? Did you file a refusal for good
cause shown?] These are mere instances of the use of the maxim in the Municipal Law. In the Law of nations, it is equally
potent. Silent acquiescence in the breach of a treaty binds a nation.(Vattel, ch. 16, sec.199, book 1. See book 2, sec. 142 et
seq. as to usucaption and prescription, and sec. 208 as to ratification). Express consent, then, not being necessary, is there
anything from which consent may be applied? There is--length of time."

Has the company caused a theft when issuing you a draft that only will result in you receiving evidences of debt that are no
longer "at Par" with a face value US Silver Eagle dollar denominated coin? This is what the court stated on this type money
issue,

Westfall vs. Braley, 10 Ohio 188, 75 Am. Dec. 509:

"Bank notes are the representative of money, and circulate as such, only by the general consent and usage of the
community. But this consent and usage are based upon the convertibility of such notes into coin, at the pleasure of the
holder, upon their presentation to the bank for redemption. This is the vital principle which sustains their character as money.
So long as they are in fact what they purport to be, payable on demand, common consent gives them the ordinary attributes
of money. But upon failure of the bank by which they are issued, when its doors are closed, and its inability to redeem its
bills is openly avowed [See Letter, Oct. 26, 1989, Dept. of Treasury, Russell Munk, Asst. Gen. Council, (International Affairs)
as recorded in the Office of the Clerk & Recorder, Bacca County, Colorado, admitting the notes are worthless and not
redeemable at par.], they instantly lose the character of money, their circulation as currency ceases with the usage and
consent upon which it rested, and the notes become the mere dishonored and depreciated evidences of debt . . . It is only
upon this idea that they can honestly be tendered as money, and when accepted as such, under the same supposition, the
mutual mistake of facts should no more be permitted to benefit one party, or prejudice the other, than if the notes had been
spurious, or payment had been made in base or adulterated coin."

Again the question begs of any court what the last sentence says, in that you have never received any income in "money",
but evidences of a debt issued with a lien already on it, thereby taking them out of the realm of money, as they are a debt
obligation, or in reality, an I.O. U. issued by a private banking system, that are trademarked as such. Want more statutes
and code on the matter for you to decide? Here is more info that is incontrovertible. So with your question in mind as to what
statutes say in regard to federal reserve notes, read all of this:
TITLE 31 > SUBTITLE IV > CHAPTER 51 > SUBCHAPTER II > Sec. 5119.
Sec. 5119. - Redemption and cancellation of currency
(a) Except to the extent authorized in regulations the Secretary of the Treasury prescribes with the approval of the President, the Secretary may not redeem United States
currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) in gold. However, the Secretary shall redeem gold certificates
owned by the Federal reserve banks at times and in amounts the Secretary decides are necessary to maintain the equal purchasing power of each kind of United States
currency. When redemption in gold is authorized, the redemption may be made only in gold bullion bearing the stamp of a United States mint or assay office in an amount
equal at the time of redemption to the currency presented fo redemption.
[COMMENT. As stated in the CODE, in red above, it can be taken as not being U.S currency like you say, until you read all the statutes and the words "IN KIND". Then the
worthless note IS taken as currency by the government. True, it is not a pay to, but only a legal offer (tender). That's all they care about: a legal offer. You can decline a legal
offer even if in federal reserve notes as stated on the US Treasury web site. Go back and read all of it if you have to.]
(b) (1) Except as provided in subsection (c)(1) of this section, the following are public debts bearing no interest:
(A) gold certificates issued before January 30, 1934.
(B) silver certificates.
(C) notes issued under the Act of July 14, 1890 (ch. 708, 26 Stat. 289).
(D) Federal Reserve notes for which payment was made under section 4 of the Old Series Currency Adjustment Act.
(E) United States currency notes, including those issued under section 1 of the Act of February 25, 1862 (ch. 33, 12 Stat. 345), the Act of July 11, 1862 (ch. 142, 12 Stat. 532),
the resolution of January 17, 1863 (P.R. 9; 12 Stat. 822), section 2 of the Act of March 3, 1863 (ch. 73, 12 Stat. 710), or section 5115 of this title.
(2) Redemption, cancellation, and destruction of currency. -
The Secretary shall -
(A) redeem any currency described in paragraph (1) from the general fund of the Treasury upon presentment to the Secretary; and (B) cancel and destroy such currency upon
redemption.
The Secretary shall not be required to reissue United States currency notes upon redemption.
(c) (1) The Secretary may determine the amount of the following United States currency that will not be presented for redemption because the currency has been destroyed or
irretrievably lost:
(A) circulating notes of Federal reserve banks and national banks issued before July 1, 1929, for which the United States Government has assumed liability.
[COMMENT. Does this mean that the notes are no longer assumed by the United States? Kinda presumes they are assumed by the IMF/fed. Res. that issues them as first liens
on the U.S., huh?]
(B) outstanding currency referred to in subsection (b)(1) of this section.
(2) When the Secretary makes a determination under this subsection, the Secretary shall reduce the amount of that currency outstanding by the amount the Secretary determines
will not be redeemed and credit the appropriate receipt account.
(d) To provide a historical collection of United States currency, the Secretary may withhold from cancellation and destruction and transfer to a special account one piece of each
design, issue, or series of each denomination of each kind of currency (including circulating notes of Federal reserve banks and national banks) after redemption. The
Secretary may make appropriate entries in Treasury accounts because of the transfers.
Here are the actual statutes on the above that you wanted:
Notes on Sec. 5119.
SOURCE
Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 985 Pub. L. 102-390, title II, Sec. 226(b), Oct. 6, 1992, 106 Stat. 1630 Pub. L. 103-325, title VI, Sec. 602(g)(14), Sept. 23, 1994, 108
Stat. 2294.
Historical and Revision Notes Revised Section
Source (U.S. Code) Source (Statutes at Large)
5119(a) 31:408a (less last proviso). 31:444 (1st sentence words between 2d and 3d semicolons). 31:822b. Jan. 30, 1934, ch. 6, Sec. 6 (less last proviso), 11, 15(1st sentence
words between 2d and 3d semicolons), 48 Stat. 340, 342, 344. 5119(b)(1) 31:405a-3. 31:911. 31:915(a), (b). June 24, 1967, Pub. L. 90-29, Sec. 1, 2, 81 Stat. 77. June 30, 1961,
Pub. L. 87-66, Sec. 2, 5, 6, 9, 10, 75 Stat. 146, 147. 5119(b)(2) 31:404. 31:420. 31:914. 31:916. May 31, 1878, ch. 146, 20 Stat. 87; June 30, 1961, Pub. L. 87-66, Sec. 7, 75
Stat. 47. R.S. Sec. 3580.
5119(c)(1) 31:915(c) (words before last comma).
5119(c)(2) 31:405a-2. 31:915(c) (words after last comma).
5119(d) 31:917. In subsection (a), the words ''Secretary may not redeem'' are substituted for ''no . . . shall be redeemed'' in 31:408a (less last proviso) because of the source
provisions restated in section 321 of the revised title. The words ''United States currency (including Federal reserve notes and circulating notes of Federal reserve banks
and national banks)'' are substituted for ''currency of the United States'' and the text of 31:444(1st sentence words between 2d and 3d semicolons) for consistency with
section 5103 of this title and to eliminate unnecessary words.
[COMMENT. Can't be any plainer than this, right?
In subsection (b)(1), before clause (A), the words ''upon completion of the transfers and credits authorized and directed by section 912 of this title'' in 31:915 and ''and the
amount of the payment credited as a public debt receipt in accordance with such section'' are omitted as executed. In clause (B), the text of 31:405a-3(last sentence) and
31:915(a)(4) is consolidated. The text of 31:405a-3(1st sentence) is omitted as executed. In clauses (C) and (E), the citations in parentheses are included only for information
purposes.]
In subsection (b)(2), the words ''cancel and destroy'' are substituted for 'retired'' in 31:914 for consistency in the revised section. The words ''paragraph (1) of this subsection'' are
substituted for ''Any currency the funds for the redemption or security of which have been transferred pursuant to the provisions of section 912 of this title, and any Federal
Reserve notes as to which payment has been made under section 913 of this title'' because of the restatement. The words ''presented to the Secretary'' are substituted for
''presentation at the Treasury'' because of the source provisions restated in section 321(c) of the revised title. The text of 31:916 is omitted as unnecessary because of the
restatement. The text of 31:404 and 31:420 is omitted as superseded by the source provisions restated in this subsection and subsection (c). The words ''All acts and parts of
acts in conflict herewith are hereby repealed'' in the Act of May 31, 1878 (ch. 146, 20 Stat. 87), are omitted as executed.
In subsection (c)(2), the words ''When the Secretary makes a determination under this subsection'' are added because of the restatement. The words ''on the books of the
Treasury'' are omitted as surplus. The text of 31:405(e)(2)(1st sentence) is omitted as superseded by the source provisions restated in subsection (b).
In subsection (d), the word ''paper'' is omitted as surplus. The words ''(including circulating notes of Federal Reserve banks and national banks)'' are substituted for
''including bank notes'' for consistency in the section. The words ''heretofore or hereafter issued'' are omitted as surplus.
REFERENCES IN TEXT
Act of July 14, 1890, ch. 708, 26 Stat. 289, referred to in subsec. (b)(1)(C), which was known as the Sherman Purchase of Silver Act of July 14, 1890, was classified to sections
408, 410, 412, and 453 of former Title 31, and sections 122 and 145 of Title 12, Banks and Banking, and was repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat.
1069.
Section 4 of the Old Series Currency Adjustment Act, referred to in subsec. (b)(1)(D), is section 4 of Pub. L. 87-66, June 30, 1961, 75 Stat. 146, which was classified to section
913 of former Title 31, and was repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1079.
Acts February 25, 1862, July 11, 1862, and March 3, 1863, and resolution January 17, 1863, referred to in subsec. (b)(1)(E), are acts Feb. 25, 1862, ch. 33, 12 Stat. 345, July 11,
1862, ch. 142, 12 Stat. 532, and Mar. 3, 1863, ch. 73, 12 Stat. 709, and resolution Jan. 17, 1863, 12 Stat. 822, respectively, which are not classified to the Code.
AMENDMENTS
1994 - Subsec. (b)(2). Pub. L. 103-325 inserted concluding provisions. 1992 - Subsec. (b)(2). Pub. L. 102-390 amended par. (2) generally. Prior to amendment, par. (2) read as
follows: ''The Secretary shall redeem from the general fund of the Treasury and cancel and destroy currency referred to in paragraph (1) of this subsection when the currency is
presented to the Secretary.''
Now let's go here:
TITLE 31 > SUBTITLE IV > CHAPTER 51 > SUBCHAPTER I > Sec. 5103.
Sec. 5103. - Legal tender
United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public
charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.
Now here is something people do not know in the notes which I will put in bold-face blue:
TITLE 31 > SUBTITLE IV > CHAPTER 51 > SUBCHAPTER I > Sec. 5103.
Notes on Sec. 5103.
SOURCE
Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 980
Pub. L. 97-452, Sec. 1(19), Jan. 12, 1983, 96 Stat. 2477.
Historical and Revision Notes 1982 Act
Revised Section Source (U.S. Code) Source (Statutes at Large) 5103 31:392. 31:456. July 23, 1965, Pub. L. 89-81, Sec. 102, 79 Stat. 255. R.S. Sec. 3584.
The words ''All . . . regardless of when coined or issued'' are omitted as unnecessary because of the restatement. The word ''debts'' is substituted for ''debts, public and private''
to eliminate unnecessary words. The words ''public charges, taxes, duties, and dues'' are omitted as included in ''debts''.
1983 ACT
This restores to 31:5103 the reference to public charges, taxes, and dues because they are not considered to be debts. See, Hagar v. Reclamation District No. 108, 111 U.S.
701, 706 (1884).
AMENDMENTS
1983 - Pub. L. 97-452 inserted '', public charges, taxes, and dues'' after ''all debts''.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment effective Sept. 13, 1982, see section 2(i) of Pub. L. 97452, set out as a note under section 3331 of this title
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5112, 5132 of this title.
Now as to taxation of these "notes" and coin read this:
TITLE 31 > SUBTITLE IV > CHAPTER 51 > SUBCHAPTER V > Sec. 5154.
Sec. 5154. - State taxation
A State or a territory or possession of the United States may tax United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve
banks and national banks) as money on hand or on deposit in the same way and at the same rate that the State, territory, or possession taxes other forms of money. This section
does not affect a law taxing national banks.
Here are the statutes for the above and are you ready for this? Read on:
TITLE 31 > SUBTITLE IV > CHAPTER 51 > SUBCHAPTER V > Sec. 5154.
Notes on Sec. 5154.
SOURCE
Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 992
Pub. L. 97-452, Sec. 1(22), Jan. 12, 1983, 96 Stat. 2477.
Historical and Revision Notes 1982 Act
Revised Section Source (U.S. Code) Source (Statutes at Large)
5154 31:425, 426. Aug. 13, 1894, ch. 281, 28 Stat. 278.
The words ''United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks)'' are substituted for
''Circulating notes of national banking associations and United States legal tender notes and other notes and certificates of the United States payable on demand and
circulating or intended to circulate as currency and gold, silver, or other coin'' in 31:425 to eliminate unnecessary words and for consistency with section 5103 of the revised
title.
1983 ACT
This restates 31:5154 to clarify the intent of the section. See: 26 Cong. Rec. 7152, 7170 (1894).
AMENDMENTS
1983 - Pub. L. 97-452 substituted ''other forms of money'' for ''United States coins and currency circulating within its jurisdiction''.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment effective Sept. 13, 1982, see section 2(i) of Pub. L. 97452, set out as a note under section 3331 of this title.

So I think you have enough statutes you wanted to show that federal reserve notes, although worthless, ARE considered to be legal tender
(offer) as currency of the United States. The key in all the above relies on that "restatement" of law. Best to get it and read what they
had to say about currency and the worthless note.

Now, were you ever "paid" in "money" or evidences of debt? Is that reportable and income when there is no worth attached as stated in
Title 26 USC 165 (g) and in the U.S. Treasury Web site quoted above plus all the other sources including the court cases? Would it not be
feasible to bring this argument in the administrative forum rather than wait for your butt to be dragged into their court where you will never
be allowed to present this as evidence? Better to get it on the administrative record as NOT your argument, but their proofs you have no
income with which requires you to file any IRS form whatsoever. Says so, right on your master file, in a code that is theirs, not yours. After
all you are hitting them with their own admissions. Never put -0- income on any 1040 or you will have defeated this plain proof that you
have no reportable income.. Now you know why the IRS considers your labor value as -0- and anything above that is pure profit to you.
Never thought of it that way did you? Well, when is the onslaught gonna happen? Don't take my word for this, read it for yourself and draw
your own conclusions from the very statutes I gave you here. This ought to really put the binders on them for a long time once you people
see the truth they place before you every day.

Peace be with you

The Informer

2-05-05