This is the first of many articles necessary to explain how the federal government has been ripping off the citizens of the United States of America. I have endeavored to break this down as simply as possible into each major category of the ongoing fraud. Politicians continually speak of the National Debt as if it is necessary for the union of States to borrow money in order to meet government obligations. NOTHING COULD BE FURTHER FROM THE TRUTH!!

With that in mind, I decided the first item to understand is exactly the source of the National Debt. I don't expect a new reader to believe this so I ask that every item be checked, not with a local CPA or IRS representative but with the statutes, Supreme Court rulings, and multiple websites that have been checked and rechecked for accuracy.

CPA's and other tax preparers rely on the fraud for their incomes. Furthermore, most have never endeavored to understand the Code, USC 26, Subtitles A and C, with proper definitions and interpretations. Sites I have relied heavily on present a $10,000 Challenge to anyone who can prove them wrong.

I can't afford that as I don't make any money for trying to present the truth. I can, however, assure any reader I have done everything possible in presenting the truth, including hundreds of hours of study, learning how to read court decisions and the other associated material, and extensive corresondence with experts, including government officials. And, should I make a mistake, I want to be corrected and you will receive my most heartfelt thanks.

We are all in this together and with understanding will eventually come the Constitution of the United States of America being enforced and protected from corrupt leadership and financial giants who just can't seem to get enough.

This page will be considered the 'HOME' page for the issue of iincome tax and related topics for quick referencing purposes. The contents of this section will be listed at the end of the below article.





March 29, 2000

The Federal Reserve (National Debt) Fraud

There are times when people should be led gently into facts concerning 'knowledge' they have taken for granted for the majority of their lives. But, this, by God, is NOT one of them.

You know, we Americans are so darn gullible that we believe anything with 'federal’ in it is part of our government or that we must respond blindly (and dumbly, I might add) as in ‘federal law'.

Well, folks, it is time to open your eyes, your ears, and your minds to the facts, not the extreme crap spread over this once great nation by government and its media servants.

Then, again, maybe not “ears” since so many Americans are illiterate and only get their ‘knowledge’ from the spoken garbage of media personalities whose only goal is to satisfy the dictates of their government masters.

There are even people who believe a clod such as Reagan was a great president. He was not nor will he ever be. He was a conspirator with the Federal Reserve (and with the CIA in selling drugs in LA to Americans to obtain funds in the Iran-Contra affair but that’s another story) and he knew it.

In 1982, then President Reagan formed “The President’s Private Sector Survey On Cost Control", an independent panel of 160 of the country’s top business leaders headed by Peter Grace. This panel was known as “The Grace Commission” and was given the task of finding a means of cutting federal spending.

In the report of the commission which was submitted to Reagan on January 15, 1984, the panel stated the following (quoted directly from Page 12):

“Resistance to additional income taxes would be even more widespread if people were aware that one-third of all their taxes are consumed by waste and inefficiency in the Federal government as previously identified.

With two-thirds of everyone’s income taxes wasted or not collected, 100% of what is collected is absorbed solely by interest on the federal debt ... in other words, all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from government.” (Many thanks to Mr. Ed Akehurst, The Center for Citizen’s Rights for this quote.)

Get this and get it straight. What was reported by The Grace Commission to the great (yeah, right) President Ronald Reagan was that not one cent of the money people believe to be 'income tax' (also, illegal) needed for government services is applied as such. The money, instead, is used only to pay the illegal debt to the Federal Reserve.

But, what did this phony do with the report? He shelved it. The findings were not a primary story for the media since it was directly against the government’s operational scam of stealing money from the citizens of this nation.

Nearly everyone thinks The Federal Reserve is part of the government of this nation. But, here’s the clincher as to the depth the federal government will mislead people and commit fraud. The Federal Reserve is NOT a government entity, nor does it have anything to do with the United States of America other than being instrumental in the ripping off of trillions upon trillions of hard working people’s money.

If you care to check out the validity of the above statement, read the ruling in Lewis vs. U.S., 680 F.2d 1239, 124 (1982), which stated:

“The Federal Reserve Banks are privately owned, locally controlled corporations.”

Now the question is - just how is a debt, The National Debt, created to a corporation of banks? Read this from William H. Ferkler (Manager Public Affairs, Department of the Treasury, Bureau of Engraving and Printing, Washington, DC:

“As we have advised, the Federal Reserve is currently paying the Bureau approximately $23 for each 1,000 notes printed. This does include the cost of printing, paper, ink, labor, etc. Therefore, 10,000 notes of any denomination, including the $100 note would cost the Federal Reserve $230. In addition, the Federal Reserve must secure a pledge of collateral equal to the face value of the notes.”

In other words, when the Federal Reserve buys the notes, a debt is essentially automatically created since this is source the federal government draws its money from (borrows). In example, let’s assume 10,000 notes are purchased for $230 by the Reserve. The debt is $1,000,000 since the collateral is equal to the face value of the notes.

Did you get this? This private banking conglomerate buys notes, not at face value, but for 2.3 cents per note whether it is a dollar, five dollar, ten dollar, twenty dollar, fifty dollar, or 100 dollar bill. Thus, for $100 dollars of spendable cash, the Federal Reserve pays only 2.3 cents. Thus, 10,000 notes of $100 denomination, or one million dollars of face value, costs the Reserve only $230. WHAT A DEAL FOR THESE BANKERS WHO OWN THE FEDERAL GOVERNMENT.

Since the government ‘borrows’ from the Reserve and does not tap into resources created legally by the Constitution, a debt is created of $1,000,000 minus $230, assuming, of course, someone in the Reserve actually paid the $230. With the way this government works, though, it would just become part of the debt and the People would be told they owe $1,000,230 to the Reserve.

That, Folks, is the national debt. A man with only a second grade education who became world renown in spite of his education and extremely wealthy through his own hard work, imagination, and creativity, Mr. Henry Ford, Founder of the Ford Motor Company, understood as he had this to say:

“It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” (Many thanks to the site Tax-Freedom.com for the quote and helping to clarify the Federal Reserve/Government rip-off scheme for me.)

Understand this. Every program now supposedly financed by the government is NOT done through the money paid in what you mistakenly believe to be income taxes. These programs are paid through means established in the Constitution which are meant to support the day-to-day operations of the federal government. Article 1, Section 8, Clause 1 states:

“The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; (My emphasis)

And, Clause 2., which states: “To borrow Money on the credit of the United States;”

If the money gained through Clause 1 is enough to handle every program (in addition to doing what is it designed to do, which is to provide financing for day-to-day operations of government), then why in the hell is the government selling notes so cheap to the Federal Reserve Bank and creating a debt where none is needed?

The answer to that is elementary, my dear fellow citizens. It is to control the masses by controlling the money while making the wealthy wealthier. If every state refused federal aid, enlightened every employer and citizen to the facts concerning the Federal Reserve and so-called income tax, and refused to allow the terrorist group known as the IRS (actually a foreign entity to the 50 States) to invade its boundaries and terrify citizens, the federal government would lose its control.

So, when you listen to your party and other Washington politicians spout all this crap about ‘lowering taxes’, take them to the carpet and ask them for the truth. No, DEMAND the truth. Do NOT settle for less than the truth.

For your edification - Not one citizen of any state making up this nation has any tax liability if earnings are domestically earned. Your money illegally goes to pay a debt created by the feds through fraudulent means (exactly how fraudulent will be the topic of my next article presuming some brave source publishes this article), the so-called "National Debt”, a debt no citizen of this nation is liable for.

Just in case this isn’t quite clear, the National Debt may be cleared by simply forcing Congress to force the Bureau of Engraving and Printing to stop SELLING notes to the Federal Reserve Bank, then ‘borrowing’ the notes back at face value.

By the way, why hasn’t the government filing a anti-trust suit? If The Federal Reserve Bank isn’t a monopoly, what is? Certainly not a company such as Microsoft. Again, the answer is simple - the Government conspired to create the scam and won't involve itself by bringing this to the light of day and out of the back alleys of Washington, DC.

Just as was done with the Census Bureau, we must stand up to government. The Bureau back-tracked quickly when it found millions of people were not going to give private information out on the questionnaire dreamt up to fill in data bases on citizens of this country. The same can occur with the greatest hoax ever, the enemy of the Constitution and the people’s well-being, tax on our property, including our incomes.

The attack against the Census Bureau also clearly shows changes may be accomplished through peaceful means rather than the terrorist actions used by the Feds to coerce compliance by citizens. Controlling the feds peacefully must be the goal since the last confrontation between the feds and the states cost more lives (600,000) than all the other wars put together.

People, NOT bowing to government tyranny because of fear, but standing up for your rights in spite of it, is The American Way. That is the quality our forefathers had - it is the quality we must now have.

Have courage. We are much larger and stronger than the Feds and it is time to force them to recognize it while protecting and obeying the Constitution of the United States of America.

Is this a case of money laundering on a grand scale?

That, Ladies and Gentlemen, will be the topic of a future article. In order to proceed directly to the next tax scam related article, click:





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