09. Short History of the Income Tax | Social Security & Taxation | Sovereign’s Handbook

January 19, 2025January 19, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

The Federal Reserve Bank (FRB) requires “withholding” from employee’s income as an economic mechanism to mitigate the damage from spiraling inflation, while concealing currency devaluation. In addition “withholding” keeps your hard-earned Federal Reserve Notes (FRNs) out of circulation so you cannot spend them as disposable income. The contemporary “income tax” system, as bizarre as it is, is an essential component of the Western debt-based central banking system.

By keeping Federal Reserve Notes (FRNs) out of circulation through “withholding”, economic controls are more effective. By maintaining employee net income as near to subsistence as possible, the Citizen is effectively prevented from engaging in meaningful political activity to threaten the global elite’s monopoly over the political, economic and legal systems.

First Income Tax for Federal Employees

During the American Civil War, the first version of an “income tax” was implemented for federal U.S. government employees only, and once again after the corporate income tax was repealed. The U.S. Congress have been taxing the incomes of federal U.S. government employees since 1861.

Second Income Tax for Corporations

The second version on the income tax was a corporate tax introduced concurrently with the Federal Reserve Act of 1913 to off-set the debt incurred by the federal U.S. government corporation to the Federal Reserve Bank (FRB). This was yet another attempt to impose a direct tax on wages.

The U.S. Congress authorized a “voluntary” income tax in 1913 for corporate “persons”, under the very popular guise of “soaking the rich for the sake of the poor”. The income tax for corporations was promulgated simultaneously with the alleged ratification of the 16th Amendment. It was repealed by the Internal Revenue Act (Nov. 23, 1921).

At this juncture, a surtax on individuals was implemented to offset the corporate income tax. These taxes, which became known as income taxes via the Public Salary Tax Act of 1939, were issued against the government returns for public officials.

Income Tax Goes Directly to the Federal Reserve Bank (FRB)

Before online banking and electronic fund transfers, we wrote paper checks to pay bills and our “income taxes”. If you noticed the stamp on the back of your cashed check from the IRS, you would have noticed that your check payment was endorsed by the Federal Reserve Bank (FRB), not the U.S. Treasury or the IRS.

As we stated previously, the Grace Commission Report on Government Waste (1984) concluded that not one dime of your hard-earned tax money goes to pay for government services. All “income tax” payments service the interest only on the federal/national “debt (Ø)”.

All “income tax” collected goes to service an un-payable federal/national “debt (Ø)”, and is the greatest fraud ever perpetrated upon the We the People.

Since we have already asserted that the International Monetary Fund (IMF) via the Federal Reserve Bank (FRB) is a primary principal/creditor of the federal U.S. government corporation, any “income tax” received would be directly routed to the principal-creditor – just like any other bankrupt entity. This is additional prima facie evidence of the bankruptcy of the federal U.S. government corporation.

“The greatest challenge our tax system faces in the 1990s is to ease the burden on taxpayers. Once people conclude that it is too difficult, too time consuming, too expensive to comply, many will stop complying.”
~ Fred Goldberg, IRS Commissioner

Apportionment as Rule of Law

The IRS has no lawful or delegated authority to assess and collect income taxes. The original U.S. Constitution strictly forbade the federal U.S. government from imposing any “direct” tax upon individuals.

The U.S. Congress could, however apportion direct taxes to a state, but not to the individuals within the state. A capitation means a “head tax”, “poll tax”, “per capita tax” or direct “income tax”, and is not permitted, unless equally apportioned to each state. This is the apportionment rule of law.

“No capitation, or other direct tax shall be laid, unless in proportion to the census
or enumeration herein before directed to be taken.”
~ U.S. Constitution [1:9:4]

“Representatives and direct taxes shall be
apportioned among the several States
which may be included within the Union
to their respective members…”
~ U.S. Constitution [1:2:3]

These original sections of the U.S. Constitution have never been repealed or lawfully amended, and the 16th Amendment, as passed, is invalid. The U.S. Constitution still today forbids direct taxation of individuals.

“Any direct tax that is not apportioned is unlawful.”
~ Commissioner v. Obear-Nester, 349 U.S.948 (1954)

Our Founders intentionally limited the taxing powers of the federal U.S. government so as to keep it small. “[the federal government] has no authority to raise either [men or money] by regulations extending to the individual [state] Citizens of America.”

Apportionment can be a protective shield against direct taxation for all sovereign “state” Citizens providing you are “domiciled” in one of the 48 sovereign states, and not a resident (or franchisee) of the federal United States.

16th Amendment Created No New Taxing Powers

The Internal Re-Venue Service (IRS) claims the 16th Amendment gives them the constitutional authority to impose and collect direct taxes, despite the fact that the U.S. Supreme Court ruled the 16th Amendment created no new power of taxation, thus, did not amend or change the constitutional limitations forbidding direct taxation on individuals.

Additionally, as can be shown, the 16th Amendment (1913) was never lawfully ratified by the sovereign “states” of the Union.

16th Amendment Improperly Ratified

According to The Law That Never Was, authors Red Beckman and Bill Benson traveled to all the State Capitols to obtain certified copies of the official voting records of the thirty-six states that allegedly ratified the 16th Amendment.

By careful accounting, thirty-two states had committed grievous departures from acceptable procedure during the ratification process. In the official canvas of the first nineteen (19) Amendments of the U.S. Constitution, the U.S. President’s signature is glaringly missing from the 16th Amendment. This is another story in a long history of frauds perpetrated upon We the People.

The real purpose for the 16th Amendment was to create a smoke screen, making it appear that constitutional restrictions on direct taxing had been abolished. But once the smoke had cleared, the Citizens would soon forget and the income tax would further encroach upon the assets and rights of the people who ever increasingly pay tribute to the Federal Reserve Bank (FRB) and their foreign principals-creditors.

“The Congress shall have the power to lay
and collect taxes on incomes,
from whatever source derived, without
apportionment among the several states,
and without regard to any
census or enumeration.”
~ 16th Amendment

Third Income Tax For Appointed and Elected Government Officials Engaged in Business

The current Subtitle A tax and Subtitle C Social Security and related taxes have never applied to anyone other than appointed and elected government officials engaged in United States trade or business (defined at IRC §7701(a)(26)).

Victory Taxes After WWII

The U.S. Congress did not make the income tax “mandatory” until World War II, when a “victory tax” was imposed on “wages” as an “National Emergency” measure to help pay for the war. In contrast, both before and after World War II, “wages” were not subject to federal income taxes.

The U.S. Congress morphed the “victory tax” into the modern version of the “income tax” a few years after WWII to finance the Cold War debt, the rising military-industrial complex, and foreign-aid corporate programs to other developing countries.

No Direct Tax, Wages Are Not Income

Because many of the “citizens of the United States” weren’t paying attention after World War II, as many are today, We the People did not realize that the federal U.S. government could not constitutionally impose any direct “income tax” on their wages or property. They assumed that “wages” were income; thus, they volunteered to be taxed. Once again, Citizens swallowed a fraud and a hoax, and were left confused and holding the bag.

Several federal courts have ruled that states are prohibited from imposing an indirect tax upon an unalienable right (no sales tax on food items). Your right to work is an unalienable right and many states have right to work laws whereby the government cannot license or tax your right to work in the profession of your choice.

According to the Internal Revenue Code (IRC), “wages” are not taxable because they are not defined as “income”.

What is Taxable Income or Gain?

A lawful tax liability is created from an increase or gain in the value of property, not from gross income, providing you are a person required to file and report.

Where income from private enterprise is defined as property, it is generally exempt from direct tax under fundamental law. “Wages”, salary and other returns from public service are deemed to be privileged, commercial enterprises due to government-granted benefits, thus, are considered to be taxable. In other words, the “income tax” is nothing more than an excise tax levied against privileges and benefits derived from federal government service.

Income is Defined in the IRC in the Same Light as a Schedule C, Standard Business Calculation

David Myrland’s Our Uncle, Our Problem demonstrates that IRC § 7701(e) (contract for lease of property) relative to IRC §83 calculations (of the fair market value) and IRC §1011, 1012, 1014 (adjusted basis of property transferred) confirms this.

GROSS INCOME (minus) EXPENSES = INCOME (PROFIT or GAIN)
or INCREASE OF VALUE

In calculating “gross income”, 26 USC §83 applies to all compensation for services. §1.83-4(b)(2) requires that the cost of compensation for services is to be figured by applying the provisions of §1012 and the regulations hereunder.

Regarding 26 USC §83 calculations, ask these questions. Where, under §1012, is the exclusion of intangible personal property, such as labor, from property that is to be treated as a cost?

Which specific provisions exclude my compensation from the provisions of §83? How am I to comply with the provisions and requirements of §83?

As an independent contractor or employee, does §83 allow the taxation of the fair market value of services, received as a fee or wage?

Labor is Property, Not Taxable Income

If you are selling your labor to an employer, then labor is your property. Your labor is your property, therefore not taxable. If you are exchanging labor for a paycheck, then zero gain = zero tax. This is the same as if you are breaking even, not making a “profit”.

The same calculation applies for both cash or bartered exchanges. The entire income tax code has nothing to do whatsoever with “wages”, but “profit”, “gain” and “increase” in value.

NO INCOME = NO INCOME TAX
NO PROFIT = NO GAIN

As an “employee”, you are not even required to keep books and records.

“Compensation for labor (wages) cannot be regarded as profit within the meaning of the law. The word ‘profit’ …means the gain made upon any business or investment – a different thing altogether from mere
compensation for labor (wages).” ~ Oliver v. Halstead, 196 Va. 992 (1955)

“[The IRS] taxes only income ‘derived’ from many different [U.S.] sources; one does not ‘derive income’ by rendering services and charging for them.”
~ Edwards v. Keith, 231 F.110

References:

Wikipedia | Internal Revenue Act of 1921, §213, pp.237 and 238; IRC of 1954, §3401(c), people identified as “employees” amended in 1986].
Cornell Law | United States v. Constantine, 296 U.S. 233, 56 S.Ct. 223, 80 L.Ed 233 (1935).
GovInfo | U.S. Government Manual, p.794, 1995/96 edition.
Wikipedia | Grace Commission Report on Government Waste (1984); Free At Last by N.A. Scott, Ph.D., D.D., pp.2-5; Family Guardian | Confirms the allegation that the income tax revenues go 100% to pay the interest on the national debt and not a single nickel of it goes to the government; Citizens Against Government Waste
Wikipedia | Fred Goldberg, IRS Commissioner.
Wikipedia | U.S. Constitution [1:9:4]; Limits on Federal Power.
Wikipedia | U.S. Constitution [1:2:3]; House of Representatives.
Court Listener | Commissioner v. Obear-Nester, 217 F.2d 56 (7th Cir 1954).
Founders Archives | The Federalist Paper #15 by Alexander Hamilton, Modern Library.
Justia | Brushaber v. Union Pacific Railroad, 240 U.S. 1 (1916).
The Law That Never Was | The Law That Never Was by Red Beckman and Bill Benson; Amazon; Senate Document 240. Regarding the supposed ownership of the IRS; Pandora’s Box by Alexander Christopher, p.523 (IRS is owned by R.E. Harrington Insurance Company of England which had its roots in the original Virginia Company that colonized the southern part of the USA) www.archive.org/details/PandorasBoxAlexChristopher1993
Cornell Law | 16^th Amendment, U.S. Constitution.
Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992) (income tax is for public employees).
Congressional Record | Congressional Record for March 27, 1943, p.2580.
Citation Needed | Our Uncle, Our Problem by David Myrland. regarding IRC §7701(e) (contract for lease of property) relative to IRC §83 calculations (of the fair market value) and IRC §§1011, 1012, 1014 (adjusted basis of property transferred).
Ibid.
Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992) (wages are not taxable as income).
Justia | Oliver v. Halstead, 196 Va. 992 (1955); People ex rel. Thomas B. Needles, Auditor, 90 Ill. 166. “Reasonable compensation for labor or services rendered is not profit.” Laureldale Cemetery Association Matthews, 354 Pa. 239, 47 A.(2d) 277; The word “profit” is defined in Black’s Law Dictionary (3rd ed.) as “The advance in the price of goods sold beyond the cost of purchase. The gain made by the sale of produce or manufactures, after deducting the value of the labor, materials, rents, and all expenses, together with the interest of the capital employed.” There is a clear distinction between “profit” and “wages” or compensation for labor. “Compensation for labor can not be regarded as profit within the meaning of the law. The word ‘profit’, as ordinarily used, means the gain made upon any business or investment — a different thing altogether from mere compensation for labor.”
Case Law Vlex | Edwards v. Keith, 231 F.110 (2nd Cir 1916).

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.85 – 90

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09. Government Without Taxes and Tyranny | Social Security & Taxation | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

“Anyone may so arrange his affairs that his taxes shall be as low as possible;
He is not bound to choose that pattern which will best pay the treasury.
There is not even a patriotic duty to increase one’s taxes.

Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.”
~ U.S. Appellate Justice Learned Hand

When are We the People going to wake up and choose freedom? When will we decide to elect a representative government legislating what is best for all the people, instead of only an elite few?

How much longer will we work long and hard, then pay a huge share of our day-to-day productivity in taxes to a corrupt government that lies, robs, oppresses and abuses its own people? Can you even imagine a government without income taxes, without tyranny, and without threats to fund its necessarily limited operations?

Furthermore, we realize that it is for some reason taboo to talk about or question the origin and current legitimacy of the “income tax” and the authority of the Internal Re-Venue Service (IRS) as it applies to sovereign “state” Citizens. Thus, be aware, the following information may be hazardous to your preconceptions!

Cost of Government

According to the Cost of Government website in 2013 (now defunct), taxpaying “U.S. citizens” worked from January 1 – July 13, just to pay their “fair share” of various “taxes”. Compared to the size of the national economy, the cost of government makes up 53% of annual Gross Domestic Product (GDP). As if four seasons were not enough, there now exists a “tax season”.

Can you imagine giving yourself and your family an annual raise by de-taxing from the federal U.S. government corporation and its political subdivisions, the Internal Re-Venue Service (IRS) and the “tax-and-spend”politicians who are destroying this once great nation by continuously bankrupting us into economic slavery?

“…Those who wish to stake their claim to sovereignty, to make a personal record, under penalty of perjury under the laws of the united states of America, that they are not ‘taxpayers’ under the IRC and, as to property not emanating from an employment agreement within the U.S. government, declare that they are not ‘transferees’ under the IRC, thereby putting IRS employees on notice that no lawful authority exists to pursue [income taxes].” ~ Frank Kowalik, IRS Humbug

Duty and Moral Responsibility

American Nationals, sovereign “state” Citizens, U.S. citizens and private-sector employers have a duty and a moral obligation to not pay one dime of income taxes more than legally required.

If you understood how income tax money was spent, solely to pay interest on an un-payable national/federal debt, you might choose to simply refuse to pay “income tax” on the grounds of “social conscience” as many tax protestors have done in the past.

Settled law from a constitutional and historical perspective, if examined “Without Prejudice”, is solidly on the side of the American National or sovereign “state” Citizen with regards to the legality of the “income tax”, despite the perpetuation of this monumental fraud upon the people since its inception in 1913.

No Authority for a Direct Tax

In 1791, under the U.S. Constitution and “Common law” of the land, the federal U.S. government was forbidden to borrow money, or delegate the authority to create money, or impose a direct tax upon the Citizens of the states of the Union.

Prior to 1913, when the federal U.S. government needed money to finance a war or build a government project, it either had to sell U.S. Savings Bonds directly to the sovereign “state” Citizens, or get approval from the state legislatives to “apportion” a tax to raise the necessary funds. This kept the federal U.S. government accountable to both the people and the state legislatures which resulted in a balanced budget and fewer wars.

Today, with the advent of the Federal Reserve Bank (FRB), the Internal Re-Venue Service (IRS), and the alleged ratifications of the 16th Amendment and 17th Amendment to the U.S. Constitution, those original checks and balances were eliminated.

Upon closer examination you might discover, that even these constitutional amendments, legislative acts and court decisions did not lawfully expand federal authority to impose a direct tax.

Income Taxes are Unnecessary

Most of the income taxes we pay are unnecessary to sustain the basic, constitutional functions of the U.S. government. According to the Grace Commission Report on Government Waste (1984), not one dime of your income taxes pays for government services.

U.S. government services are primarily funded through federal excise taxes, imposed upon goods, services, manufacturing, and customs, etc. In fact, we could have quality government services and a balanced budget without an income tax, and without the usury and exploitation inherent in our current tax system.

We the People do not have to live in a socialist/communist government welfare state in order to be capable of providing for a wide range of necessary human needs while taking care of those who honestly cannot provide for themselves.

In the past, families either took care of their own, or private charitable trusts were established to take care of the elderly, orphans, the sick and indigent before the government welfare state existed. It is possible to organize society in a more self-reliant, less government-dependent fashion if only We the People have the will to do so.

Building the Capitol with a Lottery

When the “United States” was a fledgling nation, a country in formation, the first U.S. Capitol Building in Washington D.C. was built with money raised from a lottery, not from taxes.

“The original federal United States government had to build a whole new country
without the ability to tax its citizens.
They built roads, bridges, canals and schools funded to a great extent by lotteries.
In 1793, President George Washington built
Washington, D.C. by selling 50,000 tickets
at $7 each. The top prize
was a hotel worth $50,000.”

Federal / National Debt Proportional to Government Size

Throughout American history we can track the size of the federal U.S. government proportional to the amount of the national/federal debt. It is easy to see that the more debt was incurred, the larger the government became.

We can understand the inherent motivation for the U.S. Congress to approve the Federal Reserve Act of 1913 and the resulting income tax. The more money the government could borrow, the more power and reach they had over the lives of their Citizens. Thus, politicians have had their fingers in larger and larger shares of the pie for more than one-hundred and ten (110) years.

The federal U.S. government was virtually debt-free with a balanced budget from 1789 to 1860. There was a proportional three-fold increase in the size of both outlays and the government, and five-fold increase in debt between 1861 and 1865 during the American Civil War years.

The outlays and debt stabilized after the American Civil War, and the national/federal debt was paid off between 1866 and 1915. There was a five-fold increase in size of both outlays and government, and a two-fold increase in debt between 1916 and 1920, the beginning of World War I.

As is evident, wars were great excuses for an increase in spending, but also an increase in the size of the government. Private and public banking interests were always increasing their profit-margins and expanding their power during wars. This trend continues unabated to the present.

After the undeclared federal U.S. bankruptcy of 1933, larger outlays and debt increased by unprecedented, exponential magnitude through the present day. As you now understand the larger the federal U.S. government, the larger the debt burden for its Citizens. If we wish to reduce the national/federal debt and balance the budget, even if it were possible in a fiat money system, we must shrink both the size and outlays of the government. Any other approach is wishful thinking and foolishness.

Curiously, the amount of federal aid to state governments decreased by 80% from 1970 to 1990. Federal spending on aid to the states increased from $286 billion in fiscal 2000 to an estimated $449 billion in fiscal 2007. This is the third largest item in the federal budget after Social Security and National Defense. The number of different aid programs for the states soared from 463 in 1990, to 653 in 2000, then to 814 by 2006.

The state governments have grown accustomed to funding from federal aid programs. However, by doing so, they limit their state sovereignty and independence. Every federal aid program comes with terms and conditions which the states must abide by to receive the funding.

When government services and federal benefits are cut on the congressional budget floor, both the Citizens and the states are left holding the bag of all federal debt obligations to the central banks.

There are sound money alternatives to continuing large, centralized, big government “borrow and spend” policies that will inevitably bankrupt We the People and bind us with the chains of economic slavery. We the People must liberate ourselves from economic and political tyranny and apply the necessary intelligence to transform the government at all levels.

References:

Wikipedia | U.S. Appellate Court Justice Learned Hand.
FEE | The Hidden Cost of Government; Marotta on Money | How Much Does Government Cost?; Tax Foundation | Taxes: The Price We pay for Government.
Family Guardian | 1918 Gross Income First Defined from IRS Humbug: Weapons of Enslavement by Frank Kowalik; Amazon
Internal Re-Venue Service | The Agency, It’s Mission and Statutory Authority; Library Guides Louisiana Law | Tax Policy and Procedure: Hierarchy of Tax Authorities; Citation Needed | Show Me The Law.
Wikipedia | Grace Commission Report on Government Waste (1984); Free At Last by N.A. Scott, Ph.D., D.D., pp.2-5.
Wikipedia | Washington D.C.; Citizens for Sovereignty (defunct).
Wikipedia | History of Public Debt; World Almanac and Book of Facts, Phanos Books (1992) p. 139, 153 www.worldalmanac.com; Financial Management, US Department of Treasury; Cato Institute | Federal Aid to States.
World Population Review | Federal aid to states in 2022.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.68 – 71

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08. Building Economic Sovereignty | Bankruptcy | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

Building a Foundation

Building economic sovereignty can be a stumbling block for people who have lived their entire lives in “debt (Ø)”, never having been paid real “money ($)” in their entire lives, never having acquired tangible assets, investments, land, property or real estate sufficient for financial independence and freedom. May we be relatively independent from the rapidly emerging New World Order for our “right livelihood” and survival.

These obstacles must be overcome as all “seven aspects of sovereignty” must be reclaimed and restored to become completely free once again, namely, physical, mental, emotional, spiritual, economic, legal and political sovereignty.

Fear, victim mindsets, co-dependency, non-responsibility and entitlement programs are pervasive in the contemporary human psyche, while the attitudes behind these “victim” mindsets must be transformed into “sovereign” mindsets. Attitude is everything.

As Fredric Lehrman aptly taught in his audio course Prosperity Consciousness, if one feels unworthy of having wealth, and of having choice, then certainly one will not. If one does not believe that there is enough for everyone, then certainly there will be scarcity and struggle.

“The best way to help the poor is to not be one of them yourself.”

Finding Right Livelihood

Achieve economic sovereignty via “right livelihood”, an integral expression of your own talents and skills, what you love to do, both ethically and morally. Managing your own business instead of working for someone as an “employee”, is the preferred, realistic method for achieving financial independence, awareness and freedom. Obligation and debt are poor companions.

Assess your current financial and economic condition. Be honest. Inventory your debts, resources, talents, skills and dreams. What motivates you? What excites you enough to get out of bed in the morning and be self-motivated and self-disciplined? How can you be of greatest service to others?

Assess your ability to make a contribution, your capacity to generate a viable livelihood for yourself and for your family while providing goods and services that are needed and wanted in the local and regional economy.

Achieving these goals may not happen overnight. It takes time to break down old belief structures and mindsets that have limited ones potential. Be patient. However, stay focused and energized on your objective of being economically sovereign, free and financially responsible for your own business.

If you are an “employee” working a job consider starting your own business, at first part time or on the side. In the long run, you will have more options for success working your own business than working for someone else. Become an entrepreneur.

Become independent of“employee” status as soon as possible, or be prepared to educate your “employer” and exercise other tax-reduction strategies, if you choose.

Create, then extend a beautiful imagination of what is possible into the world around you, then provide quality goods or services. Create and commit to an action plan so as to manifest your objectives and goals. Commit to frugality while living as debt-free as possible. Create a community of family, friends and neighbors to support your mutual goals.

Deregulate or Abolish the Federal Reserve

May we either deregulate or abolish the Federal Reserve Bank (FRB) monopoly over “legal tender (Ø)”, and restore a constitutional “money ($)” system as required by the U.S. constitution. The U.S. Treasury could issue interest-free U.S. Notes, then spend those into circulation, perhaps backed by gold and/or silver, as well as an index of multiple commodities.

However, it is extremely unlikely to do so since the Federal Reserve Bank (FRB) is in control of the U.S. Treasury as well. U.S. President Donald J Trump quietly took control of Federal Reserve Bank (FRB) during his term in office in 2020 without any fanfare or massive media exposure.

In a cunning move, the U.S. President is in complete control by simply absorbing the FED into the U.S. Treasury Department. This may take some time to sink in. However, this may be a pivotal moment in the “United States”.

References:

Sourced from Bruce Cockburn’s Stealing Fire.
NIghtingale-Conant | Prosperity Consciousness by Fredric Lehrman (audios).
Quote by Johnny Liberty.
Liberty International Blog | Trump takes control of the Federal Reserve Bank under the U.S. Treasury with Michael Telling.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.65 – 66

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08. Alternative Bankruptcy Strategies | Bankruptcy | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

Foreclosures and Commercial Liens

Declaring personal or corporate bankruptcy is not for everyone. Bankruptcy is not desirable for American Nationals or sovereign “state” Citizens as it creates a “commercial lien” upon your legal fiction “strawman” as a “U.S. citizen”, on your assets and future productivity.

Instead of reclaiming “unalienable” (un-a-lien-able) rights as a sovereign “state” Citizen, you are requesting a “lien-able” bankruptcy from the government, instead of being “un-a-lien-able”. To declare bankruptcy is an admission that one is neither economically sovereign, nor capable of being financially responsible.

A U.S. bankruptcy court in Chapter 7, 11, 12 or 13 would make you a “ward of the court” and place your assets in “receivership”. Bankruptcy is not recommended for aspiring sovereigns. Here are a few alternatives to declaring bankruptcy.

DISCHARGING DEBT

Third-Party Accord and Satisfaction

Accord and Satisfaction is a commercial process for discharging debt. Sovereign “state” Citizens should not declare bankruptcy. Accord and Satisfaction may be an alternative for those who get over their head in “credit (Ø)” and cannot meet their debt obligations.

For example, a third party on behalf of the debtor will offer a creditor consideration as a conditional Accord and Satisfaction in exchange for a full and complete “discharge (Ø)” of the “debt (Ø)”. If the consideration is offered and clearly designated on the back of the negotiable instrument (check), then accepted by the creditor, the debt is legally discharged in full.

In the case of Ford Motor Company, a third party sent consideration on behalf of the debtor to Ford Motor Company. Ford Motor accepted the conditional Accord and Satisfaction when they deposited the check.

When Ford Motor realized what had happened, they tried to send the check back to the issuer, which it could not do by law. The cost of litigation for Ford Motor was prohibitive against a pro se litigant, so Ford settled for a full “discharge (Ø)” of the debt, and provided title to the truck free and clear. Accord and Satisfaction is one alternative to declaring “bankruptcy (Ø)”.

Repudiating Credit Card and Mortgage Fraud

The Great Snow Job by Barrie Konicov advocated massive credit card repudiation and mortgage debt cancellation, on the basis that those unlawful debts are perpetrating the fraudulent nature of the nation’s money system; a fraud that is currently hurling the country toward imminent financial collapse.

Mr. Konikov’s methods are not for everyone, but for those faced with un-payable credit card debts, imminent foreclosure on a mortgage, or the prospects of bankruptcy. Perhaps this is a remedy, perhaps not.

Barry Konicov advocates fighting bank fraud and outright theft by canceling personal debts. The “money (Ø)”system, he points out, is sustained by lies, cheating and thievery. Big bankers, who are all ultimately linked to the Federal Reserve Bank (FRB), create “money (Ø)” out of thin air every time a person swipes a credit card or makes a deposit to a bank account.

In a lawful system, borrowers put up collateral (something tangible) in order to borrow real wealth that actually comes from real deposits or investments at the bank. In our fraudulent system, borrowers are still putting up collateral that was created by their actual labors. However, the banks are loaning “credit (Ø)”, which is created out of thin air by electronic computer entries.

As a result, bank customers become unwitting enablers of this systemic “bankster” fraud, and pay interest for the privilege. U.S. taxpayers, who have become accustomed to paying the U.S. government for the mere privilege of existing, have been hoodwinked into the same crooked system of paying back debt “money (Ø)” that never existed in the first place via federal and state income taxes. Furthermore, “citizens of the United States” are encouraged to be quiet, comply without thinking, and not dare to ask any questions regarding real purpose and legitimacy of the “income tax”.

SHOW US THE LAW, THE STATUTE and THE IMPLEMENTING REGULATION

The private, for-profit corporation called the Federal Reserve Bank (FRB), creates “fiat debt money (Ø)” out of nothing at the government’s request. Then the Internal Re-Venue System (IRS) as a collection agency for the Federal Reserve Bank (FRB) and the International Monetary Fund (IMF) extracts debt payments from We the People who incorrectly assume that they have no other choice but to sweat and pay their “income taxes”.

Don’t let the system fool you; all it wants to do is rule you.”
~ Bruce Cockburn, Stealing Fire

References:

Timothy Lee Richardson, Patriot Resource Center (defunct)
The Great Snow Job: The Story of Taxes and Money, Fraud and Slavery by Barrie Konicov; Amazon; Reviewed by Esther Holmes, North American News Service, Spring ‘96, p.73; Commentary by Johnny Liberty.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.16 – ?

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08. Borrowing Forever From the Future | Bankruptcy | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

Before a central bank and before the Federal Reserve Bank (FRB), the federal U.S. government corporation had to live within its means. And it did so for 126 years with few exceptions (1789 – 1915). Imagine that!

1789 – 1860 – The federal U.S. government was virtually debt-free with a balanced budget until the Civil War.

1861 – 1865 – There was a proportional three-fold increase in the size of both outlays and the government, and five-fold increase in federal U.S. debt during the Civil War years.

1866 – 1915 – The size of the outlays and federal U.S. debt stabilized after Civil War, and the debt was paid off

Direct Veto Power Over Government Spending

The Founders knew what they were talking about when they vehemently opposed a central bank at the beginning of the constitutional Republic. When the federal U.S. government needed to borrow to finance this project, or that, to declare war, it had to borrow directly from the people by selling government securities (i.e., U.S. savings bonds or U.S. war bonds). Thus, We the People had a direct veto power over the spending policies of the United States and their political subdivisions.

These checks and balances did not please the European central bankers, as it did not make them any substantial profits. They were accustomed to arranging wars as they pleased. So the Federal Reserve Act of 1913 was created and foisted on the American people with the worst of intentions.

The Federal Reserve Act of 1913 offered an unlimited credit line to the federal U.S. government corporation which bypassed the will of the people and their respective states. , Since then, the federal U.S. government corporation has borrowed directly from the Federal Reserve Bank (FRB), forcing the American people to indirectly lend them the funds without their knowledge or consent, but nonetheless obligating them to pay the federal/national debt through the imposition of an “income tax”.

This is the fundamental evil of “monetizing the public debt (Ø)”. It no longer mattered what the We the People wanted. The international central bankers were now in control of the American political machinery, and they have been ever since.

References:

Creature from Jekyll Island by Edward G. Griffin (American Media, 1994); Amazon
Critical Path by R. Buckminster Fuller, (St. Martins Press, New York, p. 81); Amazon

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.62. 63

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08. Balancing the Budget Fiasco | Bankruptcy | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

Anyone with basic arithmetic skills can understand that in a debt-based “fiat (Ø)” paper currency system, one can never balance the budget or pay the “debt (Ø)” . One can only expand the economy by expanding the debt, thus giving the appearance of prosperity and progress for all. So what is all the budget balancing fuss in the halls of U.S. Congress really about? A “balanced budget”amendment is an essential requirement if the “money ($)”system is ever to be restored under the U.S. constitution.

DEBT CAN NEVER BE PAID

Burdening the Public with Debt

The U.S. government’s practice of burdening the public with debt was astutely addressed by economist Henry George in 1904. People in debt are told that they are benefiting from their negative asset condition, but it is their children who suffer, he observed.

“The institution of public debts…rests upon the preposterous assumption that one generation may bind another generation.” George recognized that foisting debt upon the public is an exercise that would involve “a flagrant contempt for the natural and unalienable rights of humanity.”

George wrote that drawing on wealth that has not yet been created not only robs our progeny, but creates dangerously concentrated power in the hands of government and banks that is certain to be abused. The only ones who gain by such an arrangement are “those who get control of governments.”

These Power structures are able to amass massive sums clandestinely this way, because outright taxation to acquire the prodigious amounts that they want would immediately arouse indignation, resistance and revolution.

EXPONENTIAL DEBT CURVE

U.S. Federal / National Debt

The official tally of the Ø30.4 trillion U.S. federal debt (2022) is actually much closer to Ø168.9 trillion if you include unfunded liabilities and entitlement programs. During government budget crisis shutdowns, the debt ceiling is raised in yet another undeclared bankruptcy of the federal U.S. government. The U.S. Debt Clock provides current statistics online and what “fair share” of the federal/national debt is estimated to be yours. www.usdebtclock.org

The National Debt (federal deficit) grows exponentially every second, with interest compounded daily. Total U.S. Debt per Citizen is Ø91,319 dollars (2022) or Debt per Taxpayer is Ø242,500 dollars (2022) compared with merely $131 U.S. Debt per Citizen in 1930. Interest on the debt alone is Ø3.7 trillion (2022) while federal spending is Ø6.3 trillion (2022). Keep in mind that the federal/national U.S. Debt does not include personal or household debt accrued from banks and credit cards.

Dipping Into Social Security Trust Funds

Back in the 1990s, former U.S. Secretary of Treasury Robert Rubin admitted that borrowing funds from the Social Security Trust Fund keeps the government afloat; “a simple electronic entry”, he called it.

Unfortunately, there is no actual account to hold Social Security Trust funds safely out of reach of government officials. As money funnels into the U.S. Treasury, it lands in a general fund. When that U.S. Treasury fund is empty, anything borrowed from any source is just an electronic entry. Therefore, it is no surprise that so many funds have simply gone missing and unaccounted for.

Investment banker and chairman of the Council of Foreign Relations (CFR), Peter G. Peterson announced on CSPAN in 1994 that the U.S. government had borrowed trillions from the Social Security Trust Fund.

Off Budget Expenses

How many dollars have been raided from the government’s forty-seven (47) trust funds? These are hidden debts which the government cleverly terms as “off-budget” and “unfunded liability” items.

The federal/national debt also rises due to “black budget” expenditures which fund an array of the nation’s huge intelligence and national security apparatus. These enormous budget items are off limits to scrutiny for reasons of “national security”. Not even the U.S. Congress or the U.S. President are aware of these expenditures or where the funds go. Another contributing source of the federal/national debt are underfunded programs such as the federal U.S. government employee pension plan which has been shortchanged to the tune of several trillion dollars.

Do the math, add all these numbers up in a calculator, toss in a hundred trillion or so for waste, theft and corruption and the total federal debt is in excess of $300 trillion or more.

References:

Wikipedia | Henry George www.henrygeorge.org/LIFEofHG; Understanding Economics: www.henrygeorge.org; AntiShyster, Volume 6, No.3, p.26 https://archive.org/details/antishyster and https://famguardian.org/PublishedAuthors/Media/Antishyster/Antishyster.htm Reviewed by Estar Holmes, North American News Service, Fall ‘96, p.69.
National Debt Clock www.usdebtclock.org; The Wall Street Journal, Tuesday January 31, 1995, page A-18, A Boon for the Constitutional Bar by Mr. Tofel; From Balancing the Budget…the Facts by John William Kurowski.
Wikipedia | Social Security Trust Fund
Government Employees Pension Fund: www.gepf.gov.za; Media Bypass Magazine, April 1996.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.60 – 62

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08. Bankruptcy & American Law | Bankruptcy | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

Numerous federal U.S. bankruptcies are directly linked to profound shifts in the united states of America system of law. Without “substance (Ø) ” and without real “money ($)”, there can be no “Common law” actions, recourses or remedies.

MERGED COMMON LAW WITH EQUITY JURISDICTION

U.S. Bankruptcy Merged Law with Equity

When the federal United States government corporation borrowed from the Federal Reserve Bank (FRB) in excess of their ability to pay in substantive, real “money ($)”, and the private international banks demanded to be paid in gold, the sovereign state republics and their respective “state” Citizens effectively lost their sovereignty because they no longer resided in a solvent sovereign nation such as the “United States”.

Under the political prompting of the Royal Institute for International Affairs (RIIA), the British Accreditation Registry (BAR), the American Bar Association (ABA), and other international organizations, the federal U.S. government corporation accommodated the bankruptcy dilemma by merging “Common Law” with “Equity” law in such a way as to not alarm the “U.S. citizens” of their newly acquired “subject” status under “United States” and international bankruptcy laws.

From that day forward, there could no longer be an authentic “Common law” court, or distinct jurisdictions (Law, Equity, Admiralty/Maritime) as authorized by the U.S. Constitution. Henceforth, all “law” would be under “color of law” or commercial in nature. All “law” would be practiced as legislative, “statutory”, or commercial proceedings under the rules and procedures of “Equity”law or “Admiralty/Maritime”, not the “Common law”.

As every BAR-licensed attorney knows, the rules of “Equity” law are quite different from the rules of “Common law”. Equity law compels performance upon the letter of a contract obligation, or in the interest of the principal-creditor in case of financial default, but “Equity” allows a jury trial for controversies exceeding $20.00 in real “money ($)” not “fiat (Ø)” paper currency. “Equity” also outlawed debtor’s prisons.

Furthermore, American Nationals, “state” Citizens, and U.S. citizens are held accountable to the U.S. bankruptcy because of the 14th Amendment to the U.S. Constitution which we will address later in this book.

THREE DISTINCT JURISDICTIONS

U.S. Bankruptcy Tried in Admiralty Court

However, the proper jurisdiction for an international default on debt due to the U.S. bankruptcy in “Equity” law must be brought to trial in an “Admiralty/Maritime” court, which do not recognize any of the constitutional protections of the “Equity” law or “Common law” courts.

Unlike “Common law” and “Equity” jurisdictions, a jury in an “Admiralty/Maritime”court is purely advisory to the judge who may rule contrary to a jury verdict if the judge so decides “Admiralty/Maritime” courts can impose criminal penalties on those who fail to perform to the letter of the contract.

In a courtroom, you can easily recognize “Admiralty/Maritime” jurisdiction by the distinct gold-fringed flag. But the judge, the prosecutor and defense attorney will never admit the truth or fully disclose, the whole truth and nothing but the truth.

ADMIRALTY JURISDICTION FOR U.S. BANKRUPTCY PROCEEDINGS

References:

Analysis by Johnny Liberty.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.16 – ?

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08. Sedition and Treason Against the United States of America | Bankruptcy | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

Bretton Woods Agreement and the International Monetary Fund (IMF)

Sixteen nations declared bankruptcy after World War I at the first Bretton Woods Agreement (1930). The Geneva Convention Treaty of 1930 declared that all international bankruptcy treaties were supreme over federal law, and the U.S. Constitution. No treaty with a foreign country or legal entity can supersede the U.S. Constitution, except in cases of bankruptcy.

The International Monetary Fund (IMF) and the World Bank (WB) were outgrowths of the Bretton Woods Conference (July 22,1944), aka The Final Act of the United Nations Monetary and Financial Conference. This was the same year that the United Nations (UN) was founded.

Over 100 nations declared bankruptcy in 1947 and formed a new “fiat (Ø)” paper currency system under the leadership of the federal U.S. government, the Federal Reserve Bank (FRB), and private international central bankers. The entire monetary system of the “United States” was subverted and usurped by agents of foreign principals/creditors.

Secretary of Treasury as Receiver in Bankruptcy

The Secretary of Treasury, as the Chief Financial Officer (CFO) of the federal United States corporation, is the “receiver (Ø)” in bankruptcy (Reorganization Plan #26, 5 USC 905, Public Law 94-564).

The federal U.S. government corporation is a front office for the principals-creditors, the Federal Reserve Bank (FRB) (see Foreign Agents Registration Act of 1938; 22 USC 286 et seq., 263(a), 285(g), 267(j), 611(c)(ii) and (iii); Rabinowitz v. Kennedy, 376 U.S. 605; 11 L Ed 2d 940; 18 USC 219, 951; Treasury Delegation Order #91). This means that the Federal Reserve Bank (FRB) is also bankrupt under receivership of the International Monetary Fund (IMF).

The Secretary of Treasury and U.S. Department of the Treasury no longer exists, except in name only. The current Secretary of Treasury is not the same office as the Treasurer of the united states of America. Search for an appointment in the public record including the Congressional Record and the United States Code (USC). You will not find one for the Secretary of the Treasury. Upon careful examination, you will find an appointment for the Secretary of the Treasury as an alien, corporate Governor of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank), among other international appointments.

For example, U.S. Secretary of the Treasury Robert Rubin’s predecessor, former Senator Lloyd Bentsen of Texas, is listed in the Weekly Compilation of Presidential Documents on January 28, 1993 under Nominations Submitted to the Senate as follows: “Lloyd Bentsen of Texas, to be U.S. Governor of the International Monetary Fund for a term of five years; U.S. Governor of the International Bank for Reconstruction and Development for a term of five years; U.S. Governor of the Inter-American Development Bank for a term of five years; U.S. Governor of the Asian Development Bank; U.S. Governor of the African Development Bank; and U.S. Governor of the European Bank for Reconstruction and Development.”

Governors of the International Monetary Fund (IMF)

The Governor of the International Monetary Fund (IMF) is the current and only Secretary of the Treasury. State Governors are also regional Governors of the International Monetary Fund (IMF). These are front men for the foreign principals/creditors of the federal U.S. government corporation. They are agents of a foreign principal pursuant to 22 USC §611, 612. They are directed, controlled, financed and subsidized by a foreign power that has nothing whatsoever to do with the united states of America.

5 USC §3331. Oath of Office

So how can a State Governor serve both the financial interests of the International Monetary Fund (IMF), and make an oath of allegiance to the U.S. Constitution? They cannot. This is profound contradiction.

Under 5 USC §3331, each individual elected or appointed to an office of honor or profit in the civil service or uniformed services, must take an oath to uphold the U.S. Constitution against all enemies foreign and domestic. Nobody can serve two masters. Acceptance and holding of any government office or employment must not violate 5 USC §7311.

5 USC §7311. Loyalty and striking

An individual may not accept or hold a position in the Government of the United States or the government of the District of Columbia (D.C.) if he:

Advocates the overthrow of the constitutional “Republic” of the united states of America.
Is a member of an organization that he knows advocates the overthrow of the constitutional “Republic” of the united states of America.

However, under federal law, the Secretary of the Treasury, appointed by the U.S. President, cannot be employed by the federal U.S. government corporation. Neither does the Secretary of the Treasury receive any salary from the federal U.S. government corporation.

In fact, the Secretary of the Treasury is paid directly by the International Monetary Fund (IMF). The IMF also pays the salaries of federal judges, U.S. Attorneys and U.S. Marshals. Why are these purported government appointees being paid by a foreign entity? To whom do they have allegiance? Government officials cannot serve two masters.

22 USC §283(a). Appointment of officers; term of office; salary

The U.S. President, by and with the advice and consent of the U.S. Senate, shall appoint a Governor of the Federal Reserve Bank (FRB) and an alternate for the Governor. The term of office for the Governor and the alternate Governor shall be five years, but each shall remain in office until a successor has been appointed.

22 USC § 283(c). Compensation

No person shall be entitled to receive any salary or other compensation from the “United States” for services as a Governor, alternate Governor or executive director.

5 USC §782, now repealed, explains why these appointees are not being paid by the federal U.S. government corporation directly. Acceptance of funds or a salary would be sufficient evidence and cause for indictment for treason.

Of course, there still is the element of fraud. Did anybody ever tell you that they are working for a foreign principal-creditor? Do you still wonder why many appointees in government appear to be acting in another’s best interest, other than yours? Now, we would be curious as to who actually pays the salaries of the U.S. Congress? Follow the money, and the truth shall be revealed.

“The giving, loaning, or promising of support
or money or any other thing of value
for any purpose to any organization
shall be conclusively presumed to
constitute affiliation therewith.”
~ 5 USC §782

WHO IS CENTRAL AUTHORITY?

United States Participation in INTERPOL

The federal U.S. government corporation began participation in the International Criminal Police Organization (INTERPOL) in 1938, designating the U.S. Attorney General as the official representative to the organization.

The Massacre of the Branch Davidians in Waco, Texas was in part an INTERPOL operation spearheaded by U.S. Attorney General, Janet Reno. Having an international organization involved in a domestic dispute should enlarge the bigger picture of what is actually going on behind the scenes.

The U.S. Attorney General officially designated the Secretary of the Treasury as the U.S. representative to INTERPOL in 1958. The U.S. Attorney General is the “permanent member” to the Secretariat of the Interpol Operation, and the Secretary of Treasury the “alternate permanent member”.

Representatives to INTERPOL must, pursuant to Article 30 of the Constitution and General Regulation of Interpol (22 USC §263 (a)), renounce their allegiance to their respective countries and expatriate.

Therefore, the U.S. Attorney General and the Secretary of the Treasury have renounced their allegiance to the united states of America. One cannot serve two masters. The International Monetary Fund and World Bank are agents for the principals-creditors of the federal U.S. government corporation, therefore are not subject to the limitations of the U.S. constitution.

> TREASON – Offense of attempting by overt acts to overthrow the government of the state to which the offender owes allegiance; or of betraying the state into the hands of a foreign power (international bankers).

> SEDITION – Knowingly becoming a member of any organization that advocates the overthrow or reformation of the existing form of government of this state by violence or unlawful means.

Consequently and conclusively, all federal U.S. government officials, congressmen, senators, politicians, judges, attorneys, law enforcement personnel, the corporate “States”, and their various agencies, are all express agents of the foreign principals-creditors who have bankrupted and stolen the united states of America through “fiat (Ø)” paper money currency banking, fraud and treason. Ask yourself if you dare, “Is this treason?”

“I know no safe depository of the
ultimate powers of the society
but the people themselves
and if we think them not enlightened
enough to exercise their control
with a wholesome discretion,
the remedy is not to take it from them,
but to inform them.”

NONE DARE CALL THIS TREASON

References:

Wikipedia | Bretton Woods Conference of 1944.
Cornell Law | Reorganization Plan #26, 5 USC §905; Public law 94-564 www.gpo.gov/fdsys/pkg/STATUTE-90/pdf/STATUTE-90-Pg2660.pdf
U.S. Congressional Record, Weds., March 17, 1993, Vol. #33, p.H1303 (bankruptcy of the federal United States documented); Foreign Agents Registration Act of 1938, 22 USC §286 et seq., 263(a), 285(g), 267(j), 611(c) (ii) and (iii); Rabinowitz v. Kennedy, 376 US 605; 11 L Ed 2d 940; 18 USC §§219, 951; Treasury Delegation Order #91; See also Article IX §3 of the Articles of Agreement of the IMF which has been made effective in the United States by the Bretton Woods Agreements, 22 USC §§286(h) et seq; Wikipedia
Ibid.
John Prukop; Reorganization Plan #26, 5 USC §905, Public Law 94-564. Weekly Compilation of Presidential Documents www.archives.gov/federal-register/publications/presidential-compilation.html
Cornell Law | 22 USC §611, 612.
Cornell Law | 5 USC §3331.
Cornell Law | 5 USC §7311.
Patriot Primer #2 by Jeff Ganaposki, Living Word, p.79.
Legislative Maine | 5 USC §782 Definition of affirmative action.
GovInfo | U.S. Government Manual, 1993/1994 edition, p.390.
U.S. Congressional Record, March 17, 1993, Vol. #33, p. H1303 (bankruptcy of the federal United States documented); Government’s Liberty…Brings Death To Freedom, p.43, 137; Article 30 of the Constitution and General Regulation of Interpol; 22 USC §263(a) (US Attorney General and Secretary of the Treasury have pledged allegiance to foreign principles); Jeff Ganaposki, Patriot Primer #2, (Living Word, pp.77-87).

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.55. 58

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08. Reorganization of the Federal United States, Inc. | Bankruptcy | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

Federal Reserve Banking System Operates Under Emergency Powers

Federal law (12 USC §95) forbids member banks of the Federal Reserve Banking System to transact banking business, “except under regulations of the Secretary of the Treasury during an ‘National Emergency’ proclaimed by the U.S. President”. If or when the Emergency and War Powers Acts are lifted all Federal Reserve Banks (FRB) will cease to operate.

The Code of Federal Regulations (CFR), the Parallel Index of Rules and Authorities, which begins on page 751 of the 1995 Index shows that the Federal Reserve Bank (FRB) is an agency of geographical United States, and that it has never had legitimate authority applicable to the state republics and the people of the united states of America.

The only published regulation which supports 12 USC §95a, section 5(b), of the Trading With the Enemy Act of 1917 pertains to customs. The other under Title 31, is held in reserve. There exists no regulatory application for Congress’s approval of “National Emergency” powers granted to the Executive via 12 USC §95(b).

Likewise, there are no regulations applicable to the state republics or to the people of the united states of America for the statute which authorizes federally chartered financial institutions to monetize public and private assets with ledger-book creation of debt. There is no regulation extending the Federal Reserve Note (FRN) as legal tender for payment of debt to the state republics (12 USC §§411 and 412).

This is further verified by regulations pertaining to federal tax and loan depositaries at 31 CFR §202 et seq. “United States” chartered financial institutions traffic exclusively in “public money (Ø)”, which is treated extensively in Chapter 10 of Title 31, United States Code.

By definition, fiat money (Ø) and paper currency are obligations of the United States which can legally be in the custody of agencies of the United States and officers, agents and employees of United States agencies. This definition supports the theory that any use of Federal Reserve Notes (FRN’s) implies an adhesion contract that binds a U.S. citizen to the federal U.S. system.

BANKING UNDER EMERGENCY POWERS

Federal Reserve Notes Not Redeemable

Public Law 90-269, issued March 18, 1968, declared that Federal Reserve Notes (FRNs) are not redeemable. Public Law 95-147, 91 Stat. 1227, issued October 28, 1977, declared that all “United States” banking institutions, including State banks, were under the control and direction of the Governor of the International Monetary Fund (IMF).

Furthermore, as declared in section 10(a) of the Gold Reserve Act of 1934 is amended by striking out the phrase “stabilizing the exchange value of the dollar”. The Act states that the Joint Resolution to assure uniform value to the coins and currencies of the United States shall not apply to obligations of the United States issued after the date of enactment.

International organizations, corporations and associations who had refused to pay their debts determined they could pass the loss of their non-redeemable, non-current notes, bonds and other evidences of debt to others, and therefore crown the fraud of the “money trust” with complete success.

United States Banking in Receivership

Several federal U.S. District court decisions have placed the entire U.S. banking system into “receivership” which is prima facie evidence of the U.S. bankruptcy of 1933. During the New Deal era, when banks were first federalized, they did not register with the Secretary of State of each sovereign Union state.

In conclusion, every U.S. commercial bank has been operating illegally since 1933. All loans, interest and foreclosures since then have also been illegal contracts (e.g. National Banking Association, Farm Credit System).

The Federal Reserve Bank (FRB) was being absorbed into an entity called the Federal Banking Commission (FBC) though no supporting documentation can be found. The Federal Banking Commission (FDC) is comprised of Seven Governors including the Secretary of the Treasury, the Chairman of the Federal Reserve Bank (FRB), and the chairman of the Federal Deposit Insurance Corporation (FDIC).

This Federal Banking Commission (FDC) will abolish seven systems, including the Federal Reserve Bank (FRB), the National Banking Association, Thrift Associations and the Federal Deposit Insurance Corporation (FDIC), though the names might be retained for awhile. U.S. Congressman Henry Gonzalez (D-TX) had addressed the U.S. Congress and told them about the reorganization plan.

The Federal Deposit Insurance Corporation (FDIC) no longer protects United States commercial banks. National banks have recently de-federalized, returning to their state charters. Banks without state charters will close. Deposits are no longer guaranteed by the bankrupt FDIC.

Astronomical Amounts of Missing Money

The Federal Reserve Bank (FRB) and their member banks are using U.S. government funds as are corporate contractors that run the payment systems. Wall Street firms are selling U.S. government securities without full disclosure, according to Mark Skidwell.

Catherine Austin Fitts warned the people of the united states of America and global investors about mortgage fraud at the US Department of Housing and Development (HUD), the engineering of the housing bubble that led to trillions more dollars in bailouts and trillions of U.S. dollars missing and unaccounted for from US government agencies beginning in fiscal 1998.

References:

Cornell Law | 12 USC §95; Archives | Emergency Powers Statutes, Senate Report 93-549.
GovInfo | CFR, Parallel Index of Rules and Authorities, page 751 (1995); Code of Federal Regulations (CFR)
Wikipedia | Trading with the Enemy Act of 1917, 40 Stat. 411, enacted 6 October 1917, codified at 12 U.S.C. §§ 95a–95b and 50 U.S.C. App. §§ 1—44.
Findlaw | 12 USC §411 and 412.
Cornell Law | 31 CFR §202 et seq.
GovInfo | Public Law 90-268 (March 18, 1968) Public Law 95-147, 91 Stat. 1227 (October 28, 1977)(all American banking institutions were under the control and direction of the IMF) s; Jeff Ganaposki, Patriot Primer #2, (Living Word, p.99).
Ibid.
John Prukop; No specific court cases known.
National Banking Association www.nationalbankers.org; Farm Credit System www.farmcreditnetwork.com
Federal Banking Commission; No documentation can be found.
C-SPAN (June 8, 1992 at 2:30 pm) www.c-span.org
Federal Deposit Insurance Corporation (FDIC) www.fdic.gov; Friendly Fire at the Fed, Business Week (Dec. 13, 1993) www.businessweek.com/stories/1993-12-12/friendly-fire-at-the-fed (now Bloomberg)
Solari | $21 Trillion dollars is missing from the US government. That is $65,000 per person – as much as the national debt; The Financial Coup (video) with Mark Skidwell.
Wikipedia | U.S. Constitution [1:9:7]. No money shall be drawn…

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.52. 54

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08. Federal U.S. Government Corporation is Bankrupt | Bankruptcy | Sovereign’s Handbook

January 17, 2025January 18, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

“Mister Speaker. We are here now in Chapter 11. Members of Congress are official trustees presiding over the greatest reorganization of any bankrupt entity in world history, the U.S. government.”
~ James Traficant, Jr. (D-Ohio) addressing the House on Wednesday, March 17, 1993, U.S. Congressional Record, Volume #33, page H1303

Shifting from Statesmen to Politicians

Since the passage of the Federal Reserve Act of 1913, the federal U.S. government corporation has continued to this day to borrow and spend without limit or accountability. Trillions of “dollars (Ø)” are missing and are unaccounted for by the General Accounting Office (GAO). Executive Departments and U.S. government agencies have embezzled funds and refused to track where the “money (Ø)” authorized by the U.S. Congress was spent.

Historically speaking, power hungry, money-crazed, “elected representatives” in the U.S. Congress, the supposed guardians of the constitutional Republic, took only 20 years (1913 – 1933) to bankrupt the federal U.S. government corporation the first time. Then they “sold out” the united states of America to its foreign principals-creditors. This was the day when statesmen/stateswomen, who loved this country more than their own self-interest, became corrupt politicians instead.

In 1933, the federal U.S. government corporation declared bankruptcy for the first time by Presidential Proclamation (PP) #2039, issued March 6, 1933, and Presidential Proclamation (PP) #2040, issued March 9, 1933, which temporarily suspended all banking transactions by member banks of the Federal Reserve Bank (FRB). Normal banking functions were resumed on March 13, 1933 subject thereafter to new restrictions.

These Presidential Proclamations (PPs) took effect after U.S. President Franklin D. Roosevelt declared a “National Emergency” pursuant to Executive Orders (EOs) # 6073, 6102, 6111, and 6260 (see Senate Report 93-549, pp. 187, 594; 5 USCA§903) under Trading with the Enemy Act of 1917, codified 12 USC 95a; HJR 192 of June 5, 1933; confirmed in Perry v. U.S. (1933), 294 U.S. 330-381 and 31 USC 5112, 5119.

THE FIRST OF MANY UNDECLARED U.S. BANKRUPTCIES

Foreclosure of U.S. Government Corporation

Without advance notice, the Federal Reserve Bank (FRB) effectively foreclosed on the U.S. Department of the Treasury in 1933 and demanded gold ($) to satisfy the interest payment on the debt obligations incurred since 1913. On June 5, 1933, the U.S. Congress enacted House Joint Resolution (HJR) 192 to suspend the gold standard indefinitely.

“Whereas the holding or dealing in gold affects the public interest, and are therefore subject to proper regulation and restriction; and whereas the existing ‘national emergency’ has disclosed that provisions of obligations which purport to give the obligee (Federal Reserve Bank) a right to require payment in gold.”~ House Joint Resolution (HJR) 192

Suspension of Gold Standard and Confiscation

In 1933, the Department of the U.S. Treasury (U.S. Treasury Department today) was emptied of its gold, including all its gold in the legendary Fort Knox. The gold was immediately deposited in the Federal Reserve Bank (FRB). Every state in the Union went bankrupt as well by pledging their good faith and credit (future productivity) to aid the federal U.S. government corporation.

The Federal Reserve Bank (FRB) directed U.S. President Franklin D. Roosevelt to declare a “National Emergency” and prohibit the private ownership of gold ($) within the federal United States for U.S. citizens. U.S. citizens subjected to federal jurisdiction were ordered to deliver their gold immediately to the nearest Federal Reserve Bank (FRB) by Executive Order (EO). #6102

Although, by law, Executive Order (EO) #6102 applied only to U.S. citizens and federal government employees, other American National or sovereign “state” citizens complied (as they didn’t know any better) and handed over their real money ($) in exchange for a paper money substitute (Ø).

If you wonder why you do not have any real “money ($)”, it is because you are being robbed in broad daylight by the international “banksters” and the principals-creditors of the U.S. government corporation. Most people hardly even noticed back then until it was too late, and fewer still realize it is happening again today.

Incapable of Ever Paying Debt

Since House Joint Resolution (HJR) 192, the American people have not been capable of lawfully paying a debt. We can only exchange and transfer debt from one party to another which is what we do when we buy or sell real estate, products or services with Federal Reserve Notes (FRNs).

No debt personal or federal can ever be fully paid back. The federal/national debt and obligation to its creditors is perpetual, growing exponentially and lasting in perpetuity (until bankruptcy do us part and the federal U.S. government closes its doors forever).

“If we do not change our direction, we are likely to end up where we’re headed.” ~ Chinese Proverb

UN-PAYABLE DEBT

Profound Shift from Substantive Common Law

The indefinite suspension of the gold standard and prohibition against the payment of debts due to the fiat (fictitious) nature of the money supply, also altered the legal concept of “substance ($)” from the “Common law” jurisdiction. The profound impact of this is rarely considered. This shift from a “gold ($)” standard to a fiat “money (Ø)” supply shifted the very foundation of the entire American legal system.

Political, economic and legal systems are all interconnected and linked together. A shift in one, must then shift the context of the others with considerable effort and remarkably vast, stealthy, systemic coordination.

Under the “Common law” jurisdiction “money ($)”, for example, “gold ($)” or “silver ($)”, is lawful “substance ($)”or consideration, which was necessary for sealing a legal contract and transferring absolute “allodial” title to land. Each “Common law” contract was backed by lawful “substance (Ø)”which sealed any “Common law” contract with a minimum of $21.00 of silver, or lawful consideration.

After the first U.S. bankruptcy was declared in 1933, and the gold standard suspended indefinitely, this long standing foundation of “Common law” contracts was undermined and eventually replaced with
“statutory” contracts that were and are outside the bounds of the U.S. constitution.

Lawful “money ($)” was replaced with a National Public Credit System where debt money or Federal Reserve Notes (FRNs)(Ø) would be defined as “legal tender (Ø)” to “discharge (Ø)” debts instead of real “money ($)”, once again, “gold ($)” or “silver ($)”. By implication, “Common law” was also suspended along with the gold standard indefinitely, as there was no real “money ($)” left in circulation to execute any action in law. Thus, this first U.S. bankruptcy resulted in a coup d’etat of the political, economic and legal systems.

“Except in matters governed by the federal Constitution or by Acts of Congress,
the law to be applied in any case is the law of the state…there is no general federal Common law.”
~ Erie R.R. v. Thompkins, 304 US 64 (1938)

The idea of an “un-payable” debt, a “debt (Ø)” in perpetuity which can never be paid off, exists exclusively in the “Admiralty/Maritime”jurisdiction. This implies an international contract that compels specific performance.

The “principal/creditor” in the fashioning of this “federalized Common law” is the “Admiral”, a “Sovereign Power” enlarging their powers and jurisdiction over the constitutional Republic as a result of public policy declared in HJR 192. The limited liability for payment of perpetual debt falls under the “federal law merchant” and the law of Admiralty/Maritime because of the subject matter, and the nature of the cause of the action.

Thus, both the state and federal constitutions, and Common “law of the land”yielded to the “Admiralty/Maritime”, the “law of the sea”. The federal U.S. government corporation chose another “Sovereign Power” as their “Master”. Since that ill-fated day in 1933, the “Sovereign Power” has no longer been the people of the united states of America as was intended by the Founders.

The Admiral is King of the United States

The “Admiral”, and whoever or whatever entity they personify, is the new “King/Queen of the United States”. The national sovereignty of the “United States” has been effectively and invisibly transferred to the foreign principals/creditors of the federal U.S. government.

There have never been any constitutional provisions for this occurring. Nonetheless, this is exactly what has happened and is happening today. This is treason of the highest order, yet none of our leaders or “elected representatives” would dare to call it that (treason).

When the courageous U.S. Congressman Louis T. McFadden (R-PA) stood up to the mighty bankers and legislators in the 1930s, and brought impeachment charges against them, the indictments were buried in Committee and never came to the House floor for debate or consideration.

Later, McFadden was believed to have been poisoned for daring to tell the truth. Few of our “elected representatives” in Washington D.C. have dared tell the truth about the implications of the first U.S. bankruptcy of 1933.

In recent times, the outrageous, brave and courageous U.S. Congressman James Traficant, Jr. (D-Ohio) was indicted and imprisoned under false ethics charges for daring to address the U.S. Congress about the first U.S. bankruptcy in 1933, and numerous other bankruptcies since that fateful day.

The federal U.S. government corporation is perpetually “bankrupt (Ø)”. Our children will inherit this un-payable “debt (Ø)”, along with the tyranny to enforce it. Take an honest look around and tell me if this is not happening today.

CHALLENGE THE FEDERAL RESERVE BANK UNDER ADMIRALTY JURISDICTION

International Banksters

Many people not only lost their “gold ($)” in 1933, but were then paid only Ø.59 on the U.S. Dollar in worthless paper currency (Ø) when it was exchanged at the Federal Reserve Bank (FRB).

The U.S. Supreme Court upheld FDR’s radical policies due to his persistent threats to reorganize the judicial branch despite the Roosevelt Administration’s obvious unconstitutional acts. Under the Emergency Powers Act and Executive Authority of the U.S. President, the U.S. Constitution and the Common law were swept away with the stroke of a presidential pen. The “money trust” of the international bankers were firmly in charge.

The Banking Act of 1935 established the Federal Deposit Insurance Corporation (FDIC), booted out the U.S. Secretary of the Treasury and U.S. Comptroller of the Currency, then decreed that all profits of the Federal Reserve Bank (FRB) would be retained exclusively by the bankers.

If you did not realize this beforehand, you now know that the federal U.S. government corporation has been “bankrupt(Ø)”, financially, legally, judicially and morally ever since that fateful day.

Instead of making a necessary course correction of this grave constitutional error by repealing or amending the Federal Reserve Act of 1913 or challenging its constitutionality under the “Admiralty/Maritime” jurisdiction, despite a few courageous efforts to do so by U.S. Congressmen Ron Paul, the U.S. Congress has cowardly continued to allow this pyramid scheme, grand theft and property confiscation to occur without question or challenge.

Property confiscation has been accomplished through many methods including via excise and income taxes, social security taxes, probate and inheritance taxes; plus, inflationary monetary policies, devaluation of the paper currency, seizures, forfeitures, condemnations, malicious prosecutions and millions of bankruptcy proceedings.

Today, like in times past, the U.S. Congress continues to borrow, spend and squeeze until the people of the united states of American cry “Uncle”. Then, there is talk about “tightening the federal budget”, “balancing the budget”or “taxing the rich”, but then they go ahead, borrowing more and more.

Twice a year, the U.S. Congress must raise the debt ceiling and get permission from the Federal Reserve Bank (FRB) to do so. They must bow to their “Master”, the “Admiral”, to beg, borrow and spend more taxpayer “money (Ø)”. Every time they accomplish this, more land, property, real estate, assets, industrial capacity, and freedom are handed over to the foreign principals-creditors.

Both political parties, Republicans and Democrats, have perpetrated this travesty to this very day with little or no opposition.

LOSS OF NATIONAL SOVEREIGNTY

The True Cost is National Sovereignty

The true cost of funding the federal U.S. government corporation shopping spree for the exclusive profits of the private international banking cartel, all at public expense, has ultimately been the loss of national sovereignty for the “United States”, our lawful sovereign “state” Citizenship, the integrity of our political, economic and judicial systems and the complete loss of the U.S. Constitution with the Bill of Rights.

“I have never seen more senators express discontent with their jobs…I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to this
wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected.” ~ John Danforth (R-MO)

As a principle of law, whenever the federal U.S. government, or any corporation or government, or any legal “person” declares bankruptcy, its sovereignty is effectively transferred to its principals-creditors who then determine how to distribute the assets.

By implication, the U.S. bankruptcy is nothing less than an abrogation of national sovereignty. As a “bankrupt (Ø)” entity, the federal U.S. government corporation no longer has any lawful authority to initiate civil or criminal actions. No “bankrupt(Ø)” entity can issue credit or make loans. All U.S. government loans, benefits and grants are frauds on their face.

Thus, after the first U.S. bankruptcy the constitutional court system was suspended along with the constitutional money system, and replaced with military tribunals operating under “Admiralty/Maritime” law. These proceedings are disguised as “statutory” law in courtrooms under the occupation of the “gold-fringe” military flag of the United States.

Consequently, the power and authority of the federal U.S. government corporation resides in the sovereignty of its principals-creditors, aka Central Authority, the Federal Reserve Bank (FRB) and its principals-creditors the International Monetary Fund (IMF) and the World Bank (WB).

All courts, federal, state and county, are effectively convened in “bankruptcy proceedings (Ø)” against United States “persons” and “citizens of the United States”. These proceedings are suing via the Uniform Commercial Code (UCC) in an “Admiralty/Maritime” jurisdiction.

References:

Wikipedia | James Traficant, Jr. (D-OH) addressing the House on Wednesday, March 17, 1993; United States Congressional Record, Volume #33, page H1303 and www.fourwinds10.net/siterun_data/peace_freedom/patriots_and_protesters/news.php?q=1240607530
Wikipedia and Cornell Law | Senate Report 93-459, pp. 187, 594 under Trading with the Enemy Act of 1917, codified 12 USC §95a; House Joint Resolution 192 of June 5, 1933 suspended the gold standard; confirmed in Perry v. United States (1933), 294 US 330-381 and 31 USC §§5112, 5119; Velma Griggs; Freedom School The Original 13th Amendment, Inyawe Trust Company p.48 (Treasury of the US and every State went bankrupt); California Assembly and Senate adopted Joint Resolution Number 26.
Ibid.
Ibid.
Wikipedia | FDR Executive Order (EO). #6102.
An ancient Chinese Proverb.
Cornell Law | Erie RR. V. Thompkins, 304 US 64, changed American law from Common law to Negotiable Instruments Law.
Wikipedia | Limitation of Liability Act, 46 USC §183 (March 3, 1851).
Wikipedia | Louis T. McFadden; Americans Bulletin, Sep ’94 p.11 www.americansbulletin.com
Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992, pp.4/3-4/11).
Wikipedia | Banking Act of 1933, P.L. 73-66, 48 Stat. 162; Wikipedia | Gold Reserve Act of 1934.
Quote by John Danforth (R-MO) sourced from The Arizona Republic, interview on April 22, 1992.
Open Jurist | S. Central Authority, 42 USC §11606 www.hcch.net/index_en.php?act=authorities.detailsandaid=279; ABC Legal www.abclegal.com/international-service-of-process; Hague Service www.hagueservice.net/forms/Official_Hague_Circular_Notice.pdf; International Monetary Fund www.imf.org/external/index.htm; World Bank www.worldbank.org
Government’s Liberty…Brings Death To Freedom, p.43 (Federal Reserve creditors are the sovereign powers).