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

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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tax” was implemented for federal U.S. government employees only, and once again after the corporate income tax was repealed.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 It was repealed by the Internal Revenue Act (Nov. 23, 1921).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:

  1. Wikipedia | Internal Revenue Act of 1921, §213, pp.237 and 238; IRC of 1954, §3401(c), people identified as “employees” amended in 1986].
  2. Cornell Law | United States v. Constantine, 296 U.S. 233, 56 S.Ct. 223, 80 L.Ed 233 (1935).
  3. GovInfo | U.S. Government Manual, p.794, 1995/96 edition.
  4. 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
  5. Wikipedia | Fred Goldberg, IRS Commissioner.
  6. Wikipedia | U.S. Constitution [1:9:4]; Limits on Federal Power.
  7. Wikipedia | U.S. Constitution [1:2:3]; House of Representatives.
  8. Court Listener | Commissioner v. Obear-Nester, 217 F.2d 56 (7th Cir 1954).
  9. Founders Archives | The Federalist Paper #15 by Alexander Hamilton, Modern Library.
  10. Justia | Brushaber v. Union Pacific Railroad, 240 U.S. 1 (1916).
  11. 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
  12. Cornell Law | 16th Amendment, U.S. Constitution.
  13. Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992) (income tax is for public employees).
  14. Congressional Record | Congressional Record for March 27, 1943, p.2580.
  15. 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).
  16. Ibid.
  17. Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992) (wages are not taxable as income).
  18. 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.”
  19. 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. Social Insecurity | Social Security & Taxation | Sovereign’s Handbook

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By Johnny Liberty

Most U.S. citizens believe that applying for and getting a Social Security Number (SSN) is mandatory. Thus, they routinely applied for them. In the beginning, an SSN was not assigned at birth, but applied for before being hired for your first job as a teenager.  Recently, SSNs are assigned either through“enumeration-at-birth” programs at the hospitals. Hospitals get paid for each newborn franchisee or “U.S. citizen” of the corporate “State”.

In fact getting a Social Security Number (SSN) is voluntary for American Nationals and/or sovereign “state” Citizens, unless they intend on receiving a federal or state government benefit, or pay income taxes. There exists no legal requirement to have a SSN. However, government officials and corporations make it very difficult to function in society without one.

There is a standing debate as to whether Social Security is another form of income tax, or whether or not it is an insurance and retirement program. This author asserts Social Security is a type of income tax with no mandatory gratuity. There is no individual social security trust account with funds waiting for you when you need it; however, the government accounts for your contributions as if it were so. 

Social Security as a Tax Program

In my opinion, Social Security is not an insurance or retirement program. They have no obligation to pay you one dime of the social security tax it collects. When Social Security inevitably goes bankrupt, or the funds are designated elsewhere, there will no longer be an account with your name on it. 

Applying and receiving a SSN qualifies the applicant for federal and state benefit programs, although there is no guarantee you will ever receive any. Despite court decisions, there is no particular clause in the U.S. Constitution sufficient to sustain the power to compel every “Citizen of the United States” to participate in a “compulsory” retirement or government benefits plan. The same legal principle should also be applied to Obamacare and any compulsory program to receive health insurance as well. 

“There is no Social Security law requiring that one have a number,
but the IRS Tax Code, 
Section 6109 subsection A, stipulates that taxpayers shall utilize their Social Security numbers when filing tax returns. Therefore, if one pays taxes,
one must have a Social Security number.”
~ Lloyd Bentson, U.S. Senator from Texas

When the U.S. Congress adopted the Social Security Act of 1938, the U.S. Supreme Court, held in Railroad Retirement Board, that the U.S. Congress had no authority to establish a retirement scheme through its most formidable power. 

The U.S. Congress had imposed excise taxes upon employers and the U.S. Supreme Court found nothing constitutionally objectionable to the Act. But neither did they address the issue of whether there was a requirement to receive Social Security.

Courts have ruled that there is no obligation to have a Social Security Number (SSN) unless: 

  1. You are obligated to pay taxes.
  2. You receive public assistance.
  3. You obtain and use a driver’s license, operate or register a motor vehicle. 

SSN = TRUST I.D. #

Social Security as a Trust Account

The de jure (lawful)governor of Colorado state, Eric Madsen, theorized that nowhere in the Social Security Act of 1938 does the SSN attach to a natural-born individual. Instead, Madsen asserted, that the SSN is an account number for a trust established in the trustee’s birth NAME in ALL CAPITAL LETTERS (Birth Registration is distinct from the Certificate of Live Birth). Social Security may very well be a constructive trust with the U.S. Congress as the Creators/Grantors.  

TRUST NAME = JOHNNY LIBERTY
TRUSTEE = Johnny Liberty

Therefore, IRS Form 1041 may be the appropriate tax form for “U.S. citizens” who volunteer as federal taxpayers, not the IRS Form 1040 as we have been told. This is a very interesting theory.

This theory is curiously similar to Roger Elvick’s popular “strawman” theory and the Redemption Movement which replaced your birth name in upper and lower case letters with ALL CAPITAL LETTERS. This created a “strawman” (legal fiction) as a commercial “person” pursuant to “commercial law” and the Uniform Commercial Code (UCC).

NATURAL MAN = Johnny Liberty
STRAWMAN = JOHNNY LIBERTY

How to Apply for a USA Passport Without an SSN?

A Social Security Number (SSN) is not mandatory for applying for or receiving a passport for the united states of America. A USA passport is still a valid function of the national government. I highly recommend all American Nationals and/or sovereign “state” Citizens apply for a USA passport preferably without a SSN, if that is still possible.  

Notice on the first page of the application, the instructions distinctly say that, “U.S. passports are issued only to U.S. citizens or Nationals”.

Additionally, when you receive a USA Passport, inside the front cover it reads, “The Secretary of State of the United States of America hereby requests all whom it may concern to permit the citizen/national of the United States named herein to pass without delay or hindrance and in case of need to give all lawful aid and protection.”

Sovereign Citizens Have No SSN

In our well-researched opinion, an American National OR sovereign “state” Citizen does not require a Social Security Number (SSN), because they are not “persons” required to file, report or pay a federal income tax. Sovereign Citizens are not eligible to receive government benefit programs either. 

If you are a Sovereign Citizen, having a SSN and receiving benefits is a legal disability. If you or your parents did not get a SSN when you were a child, or you have properly rescinded the SSN or challenged the signature on the one issued, then you can reclaim your Sovereign Citizen status by Verified Affidavit and Constructive Legal Notice. 

In any circumstance where a SSN is requested, substitute 999-99-9999, or any other 999 prefix in lieu of a SSN, EIN or TIN. Otherwise leave it blank on the form.

SSN is Voluntary

Regulations stated on the SS-5 application for a SSN simply say that you can obtain an SSN if you need or request it. There is no legal compulsion by law to apply or receive a SSN. Neither can a state require something which is voluntary under federal law mandatory under state law. 

Furthermore, should any right be denied when you decline to provide your SSN, you may file an action in the federal court under the Privacy Act of 1974 with penalties paid by the individual, business, or government agency who wronged you. 

Be certain to have a witness present when you assert these remedies. “It shall be unlawful for any federal, State or local government agency “[including businesses within the federal United States] to deny to any individual any right, benefit, or privilege provided by law because of that individual’s refusal to disclose his-her Social Security Account Number.”

Prior to the Social Security Act of 1938, each state government had its own social welfare system and paid various benefits. The Social Security Administration was federalized in 1939 with national standards of benefit compensation. The SSN (or TIN) was incorporated into the Internal Re-Venue Service (IRS) as an ID number for income tax purposes as well as for receiving social security. 

SSN as National ID Card

Since the introduction of the SSN, there have been many attempts to make the SSN a mandatory federal/national ID card. Unfortunately, the illegal practice of using the SSN as a personal identifier has broadened over time well beyond the original intent or scope of the law.

The most recent attempts have been mandatory Supplemental Nutrition Assistance Program (SNAP) ID cards for welfare recipients, food stamps and for legal immigrants.

SSN is an Adhesion Contract

Applying for and receiving a SSN is an unrevealed commercial agreement and adhesion contract that:

  1. Assigns your Power of Attorney to the federal U.S. government to act on your behalf.
  2. Impairs your inherent sovereign “state” Citizenship through involuntary naturalization as a 14th (or 15th) Amendment, U.S. citizen of the District of Columbia (D.C.).
  3. Creates a juristic “person” in your NAME in ALL CAPITAL LETTERS subject to the laws and jurisdiction of the federal U.S. government corporation.

According to the Social Security Administration’s internal regulations, which are extremely difficult to find, you may terminate your agreement to participate in the Social Security benefit program. 

As a parent, you can object to an SSN being issued in the hospital through the Enumeration at Birth Program, or have it rescinded if the SSN was issued under threat, duress and coercion (TDC) by Verified Affidavit and Constructive Legal Notice. 

Some have theorized that you can apply for a refund of any social security paid after you have become fully vested in the program for ten years or 40 quarters, but this author has yet to see evidence of this. Do not hold your breath waiting for a rebate. 

Never expect honest disclosure from the Social Security Administration when you rescind or revoke your SSN by Verified Affidavit and Constructive Legal Notice. Do not expect government bureaucrats to make it easy. 

If you do engage them, be polite, respectful and courteous so as to not be perceived as a threat or a “domestic terrorist”, which is often the case when exercising your 4th Amendment due process rights since 911. 

When asked, the Social Security Administration bureaucrats will insist that you cannot terminate your SSN, or get a rebate if asked. But as a sovereign “state” Citizen, you do not ask their permission to rescind, revoke or withdraw from the system. Be prepared though to surrender government benefits, to be financially self-sufficient and independent.

References:

  1. Cornell Law | 26 CFR 301.6109-1(d)(1) (getting a SSN is voluntary).
  2. Lowell H. Becraft, Jr., Attorney at Law;  42 USC, Sections 301-433; Public Agencies Opposed to Social Security Entrapment (POSSE) v. Heckler, 613 F. Supp. 558 (E.D. Cal., 1985), rev., 477 U.S. 41, 106 S.Ct. 2390 (1986);  Social Security: Partners In Crime by Richard Neff Hubbard, Perceptions Magazine, May/June 1995, p.21.
  3. Wikipedia | Lloyd Bentson; Quote sourced from a letter from Senator Lloyd Bentson (D-TX) (December 16, 1981);  IRC §6109(a); famous Taco Bell (no longer requires a SSN for employment) or other success stories including Smith Food Drug, Ford Motor Company in southern California, a bank and hospital in Washington.
  4. Findlaw | Railroad Retirement Board (1935).
  5. Team Law | From audio series by Eric Madsen.
  6. Wikipedia | Redemption Movement and Strawman; Wikipedia | Sovereign Citizen Movement. The “strawman” is legal fiction created in your birth name in all capital letters. It is not “you”, but a legal fiction created to replace you.
  7. USA Passport Application DS-11
  8. Sourced from USA Passport inside front cover.
  9. An essay by Lowell H. Becraft, Jr., Attorney at Law; Findlaw | Railroad Retirement Board (1935);  IRC §3401.c; Social Security Administration has not issued any 999 prefix SSN’s.
  10. Social Security Numbers are Voluntary www.ssa.gov/pubs/EN-05-10023.pdf
  11. National I.D. and REAL ID Card www.epic.org/privacy/id_cards; Social Security Mini-Pak by John Quade.
  12. 20 CFR §404.1905 (termination of agreement and/or participation in Social Security) www.gpo.gov/fdsys/pkg/CFR-2004-title20-vol2/pdf/CFR-2004-title20-vol2-sec404-1905.pdf; Wikipedia | Paperwork Reduction Act of 1980 (Pub. L. No. 96-511, 94 Stat. 2812, codified at 44 U.S.C. § 3501-3521 and www.gpo.gov/fdsys/granule/STATUTE-94/STATUTE-94-Pg2812/content-detail.html 

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.71 – 75

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

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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:

  1. 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
  2. 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.
  3. Ibid.
  4. Ibid.
  5. Wikipedia | FDR Executive Order (EO). #6102.
  6. An ancient Chinese Proverb.
  7. Cornell Law | Erie RR. V. Thompkins, 304 US 64, changed American law from Common law to Negotiable Instruments Law.
  8. Wikipedia | Limitation of Liability Act, 46 USC §183 (March 3, 1851).
  9. Wikipedia | Louis T. McFadden;  Americans Bulletin, Sep ’94 p.11 www.americansbulletin.com 
  10. Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992, pp.4/3-4/11).
  11. Wikipedia | Banking Act of 1933, P.L. 73-66, 48 Stat. 162; Wikipedia | Gold Reserve Act of 1934.
  12. Quote by John Danforth (R-MO) sourced from The Arizona Republic, interview on April 22, 1992.
  13. 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
  14. Government’s Liberty…Brings Death To Freedom, p.43 (Federal Reserve creditors are the sovereign powers).

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.47 – 52

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