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

ORDER YOUR LIBERTY BOOKS TODAY!

Sovereign’s Handbook by Johnny Liberty
(30th Anniversary Edition)
(3-Volume Printed, Bound Book or PDF)

A three-volume, 750+ page tome with an extensive update of the renowned underground classic ~ the Global Sovereign’s Handbook. Still after all these years, this is the most comprehensive book on sovereignty, economics, law, power structures and history ever written. Served as the primary research behind the best-selling Global One Audio Course.Available Now!

$99.95 ~ THREE-VOLUME PRINT SERIES
$33.33 ~ THREE-VOLUME EBOOK

Dawning of the Corona Age: Navigating the Pandemic by Johnny Freedom
(3rd Edition)
(Printed, Bound Book or PDF)

This comprehensive book, goes far beyond the immediate impact of the “pandemic”, but, along with the reader, imagines how our human world may be altered, both positively and negatively, long into an uncertain future. Available Now!

$25.00 ~ PRINT BOOK
$10.00 ~ EBOOK

07. Federal Reserve Banking System | Money | Sovereign’s Handbook

January 15, 2025January 20, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

The Federal Reserve Bank (FRB) was originally based on the Vatican’s Canon law, and the principles of sovereignty established by the Declaration of Independence and codified in the U.S. Constitution with the Bill of Rights.

Federal Reserve as Joint Stock Trust

In fact, the private international bankers used a “Canon Law Trust” as their model, adding private stock and renaming it as a Joint Stock Trust. Eric Madsen asserted that it was a type of corporation.

In 1873, the U.S. Congress had passed a law making it illegal for any legal “person”to create a Joint Stock Trust. The Federal Reserve was legislated post-facto to 1870, despite the fact that post-facto laws were strictly forbidden by the U.S. Constitution [1:9:3].

“This [Federal Reserve Act] establishes
the most gigantic trust on Earth.
When the President [Wilson] signs this bill
the invisible government of the Monetary Power will be legalized…
the worst legislative crime of the ages will be perpetrated by
this banking and currency bill.”
~ Congressman Charles A. Lindbergh, Sr. (1913)

To this day, the Federal Reserve Bank (FRB) remains a United States, European and Global Power structure separate and distinct from the federal U.S. government corporation operating entirely outside the bounds of the U.S. Constitution.

The Federal Reserve Bank (FRB) is a maritime lender and insurance underwriter to the federal U.S. government corporation, that operates exclusively under international “Admiralty/Maritime” law.

The maritime lender or insurance underwriter bears all the risks, and Admiralty/Maritime law compels specific performance by paying the annual interest due, or insurance premiums.

All the assets of the debtor nation state, such as the federal U.S. government corporation, can be “hypothecated”, in other words, pledged as security to pay the federal /national debt by the maritime lender or insurance underwriter. Alarmingly, all the assets of the people of the united states have been “hypothecated” against both present and future “debt (Ø)” that is to be paid one day whenever the note is called.

The Federal Reserve Act of 1913 stipulated that the interest on the federal/national debt was to be paid in gold not in “paper money substitutes (Ø)”. There was no stipulation in the Federal Reserve Act whatsoever for ever paying down the principle on the loan. Thus, an un-payable federal/national “debt (Ø)” was instituted from the inception of the Act. Indeed, this seems crazy, but it is true.

The Federal Reserve Act was never challenged in a U.S. court of competent jurisdiction which would be have been under “Admiralty/Maritime” law.

The Federal Reserve Bank (FRB) is a sovereign Joint Stock Trust fully independent of the federal U.S. government. It does not file a tax return or pay any “taxes”. It is not subject to Title 5, USC or to the scrutiny of the General Accounting Office (GAO). It had never filed statements of assets on any information form until recently kudos to former U.S. Congressmen Ron Paul (R-TX).

“Federal Reserve bonds, including the
capital stock and surplus therein
and the income there-from,
shall be exempt from federal, state and
local taxation, except taxes upon real estate.”
~ 12 USC 531

Not Federal and Nothing in Reserve

The name of the Federal Reserve Bank (FRB), in other words, the “FED”, is deceptive. There is nothing “federal” about the Federal Reserve Bank (FRB) because it is not part of the federal U.S. government. In the Washington D.C. phone directories of yore, the Federal Reserve Bank (FRB) was never listed under U.S. government offices.

There is nothing held on “reserve” in the Federal Reserve Bank (FRB). They project the appearance of being a “system” of regional offices to shift the appearance of power away from Wall Street, but essentially the power is centralized in the Board of Governors. They are not a “bank” because they do not deal with real, constitutional “money ($)”, but only “fiat (Ø)” money.

The stated mission of the Federal Reserve Bank (FRB) was to stabilize banking, but if one analyzes their track record, it has not achieved the stated objectives. It was never the objective of the Federal Reserve Bank (FRB) in the first place. Instead it was a deceptive ploy to get the legislation passed and signed by the U.S. President with a minimum of resistance from the people.

The Federal Reserve Bank (FRB) did, however, achieve the cessation of private capital formation in the hands of We the People by eliminating both the gold (1934) and silver (1968) standards for domestic currency, thus centralizing the power of capital formation in the hands of private international banking cartels.

“The main purpose for establishing
a central banking system in the United States
of America was to ultimately confiscate
100% of the property and assets
of the American people.”
~ Johnny Liberty

Passing the Federal Reserve Act

The Federal Reserve Act of 1913 was passed over a Christmas vacation on December 22, 1913 with merely ten legislative members in session. This was hardly a legal quorum for passing legislation by any stretch of the imagination.

Most of the U.S. Congress was adjourned for the Christmas holidays. Furthermore, “U.S. citizens”, sovereign “state” Citizens, Congress and the President had been fooled by a well-orchestrated propaganda and media campaign into believing that the private international bankers and the Wall Street “money trust” were opposed to the legislation.

Through clever political manipulation, propaganda and a knee-jerk reaction by the press, many of our leaders walked into a well-designed trap to support the Federal Reserve Act of 1913 despite its lack of legal quorum. U.S. President Woodrow Wilson signed the Act under considerable pressure and later regretted his signing the Act by saying. “I am a most unhappy man, unwittingly I have ruined my country.”

“The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the currency…I do not like to think that any law can be passed that will make it possible to submerge the gold standard in a flood of irredeemable paper currency.” ~ Henry Cabot Lodge, Sr. (1913)

We the People Were Our Own Bankers

Before the Federal Reserve Act of 1913 was passed into law, many people owned their own land free and clear of any bank liens, encumbrances or mortgages. We retained sovereign“allodial” title to property with all rights therein.

Conventional mortgages, where one could borrow money to pay for a piece of land or property over the course of thirty years, did not exist. This turned out to be yet another not so subtle property confiscation scheme.

Prior to the Act, one simply acquired land by assignment from a previous owner with a Bill of Sale, paid for in gold or silver coin or notes, then updated the “land patent“and received the true, lawful “allodial” title,which is absolute title and ownership to the land. Back then, land was not registered or recorded via an “equitable deed”.

> HYPOTHECATE – To pledge something as a security without taking possession of it.

After the Federal Reserve Act of 1913, all land and property within the federal U.S.was “hypothecated” to the Board of Governors as “Trustees” of the Federal Reserve Banking System cartel. In any Trust, the “Trustees” hold legal title, and have control over the assets of the third party or the “Beneficiaries”.

> RE-VENUE – To shift jurisdiction from one “venue” or place to another; to shift the jurisdiction from the Republic of the united states of America to the Democracy of the federal United States corporation.

Venue and Citizenship

All that remained to seal the deal was to “re-venue” all sovereign “state” Citizens, along with their land, assets and property, then pursuant to the “Common law” jurisdiction of the united states of America, into the exclusive jurisdiction of the federal U.S. government corporation pursuant to the “Municipal law” of the District of Columbia (D.C.).

Today, the common meaning of “re-venue” is synonymous with “income”. The private international bankers, with the cooperation of the political establishment in Washington D.C., shifted the jurisdiction from one “venue” or place (united states of America) to another (District of Columbia).

After the bankers morphed the meaning of “venue”, they shifted the meaning of “citizens of the United States” from sovereign “state” Citizenship to U.S. citizenship. It was a clever, well-orchestrated slight-of-hand – a magician’s trick.

After the bankers shifted the meaning of citizenship, they made all the people believe that they were subject to paying the federal/national debt of the federal U.S. corporation pursuant to the 14th Amendment of the U.S. constitution, from that day forward, made payable to the Federal Reserve Bank (FRB) via the “income tax”.

U.S. Government Received Unlimited Credit Line

Under the terms of the Federal Reserve Act, the Federal Reserve Bank (FRB) agreed to extend the federal U.S. government an “unlimited credit line” (paper money substitute (Ø)). The “United States” would be loaned all the funds needed by the Federal Reserve Bank (FRB) to expand the power and reach of the federal “United States” empire indefinitely.

Like any other debtor borrowing money from a creditor, the federal U.S. government had to assign collateral and security to their creditors as a condition of the loan. So what did it do?

Since the federal U.S. government did not have any significant assets in 1913, except a small modicum of public property, the government “hypothecated” all the private land and property of their “economic slaves” (U.S. citizens), as collateral (security) against the perpetually, un-payable federal/national debt.

The federal U.S. government, along with their principals/creditors, needed a legal contractual nexus to lure more U.S. citizens and sovereign “state” Citizens into their venue under their jurisdiction, in order to expand the pool of land and property that they could hypothecate, attach and lien. So how did they accomplish this?

By manufacturing wars (WWI, WWII and WWIII), recessions and depressions such as the Great Depression, and then luring people into the Social Security Act of 1938. This not so subtle “conspiracy” created the “welfare state”, accomplished the objectives in less than three generations.

In addition to land and property, the federal U.S. government “hypothecated” and pledged the assets of unincorporated federal territories, national parks and forests (clear-cutting forests is a environmental policy for federal debt reduction), birth certificates (each baby child is registered as property under the U.S. Department of Commerce), as well as all for-profit and non-profit corporations (all equity is owned by the Internal Re-Venue Service), as collateral to the Federal Reserve Bank (FRB)x.

Lastly, but not finally, these “co-conspirators” legislated a 1% federal income tax on corporations and U.S. persons (U.S. citizens and federal U.S. employees) to pay the “interest-only” on this expanding federal/national “debt (Ø)”. In 1913, less than 1% of the people and corporations paid any federal income taxes. This original income tax was effectively repealed by the Internal Revenue Act of November 23, 1921.

“The regional Federal Reserve Banks
are not government agencies.
…but are independent, privately owned and
locally controlled corporations.”
~ Lewis v. United States, 680 F.2d 1239 (9th Cir. 1982)

The Federal Reserve Bank (FRB) is a very private, foreign entity controlled by a cartel of private international bankers. The Federal Reserve Bank (FRB) can sue and be sued in their name, unlike actual government agencies. Each of the regional Federal Reserve Banks (FRB) carries its own liability insurance.

Each conducts its daily activities without any direction from the federal U.S. government. Each pays local property taxes and postage, which is even more evidence of private ownership. Each had listings in telephone directories, but never under U.S. government listings.

The actual “joint stock holders” of the Federal Reserve Bank (FRB) are held by domestic, foreign, and international central banks. According to archival sources, the following list does not reflect the actual ownership.

The Rothschild’s of London and Berlin.
The Lazard Brothers of Paris.
Israel Moses Seif of Italy.
Warburg Bank of Hamburg, Germany and Amsterdam.
Kuhn, Loeb and Co. of Germany and New York.
Lehman Brothers of New York.
Goldman Sachs of New York.
Chase Manhattan Bank of New York
The Rockefeller Brothers of New York.

Formal Charges Against Federal Reserve

On May 23, 1933, U.S. Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank (FRB), the U.S. Comptroller of the Currency, and the Secretary of the U.S. Treasury for numerous criminal acts, including but not limited to, conspiracy, fraud, unlawful conversion, and treason. The following is a quote from McFadden’s famous address to the U.S. Congress in 1934.

“Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED.

The FED has cheated the Government of these United States and the people of the United States out of much more than enough money to pay the Nation’s debt. The depredations and iniquities of the FED has cost enough money to pay the National debt several times over.

This evil institution has impoverished and ruined the people of these United States. The FED has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the mis-application of that law by the Fed and through the corrupt practices of the moneyed vultures who control it. Some people think that the Federal Reserve Banks are United States Government institutions.

[To the contrary] they are private monopolies which prey upon the people of these United States for the benefit of themselves and foreign customers; foreign and domestic speculators and swindlers; plus rich and predatory money lenders.

In that dark crew of financial pirates, there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain international propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.”

References:

Wikipedia | History of the Federal Reserve; | Federal Reserve | Who owns the Federal Reserve? “The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress.” Federal Reserve SF | Is the Federal Reserve a privately owned corporation? ; Facts Are Facts | The Federal Reserve is privately owned. Citation Needed | Federal Reserve is a Joint Stock Company Trust; Wikipedia | Canon Law; Canon Law Trust.
Citation Needed | Joint Stock Trust Illegal in 1863; Constitution Congress | U.S. Constitution [1:9:3]; No Bill of Attainder or ex post facto Law shall be passed.
Wikipedia | Charles A. Lindbergh, Sr.
Wikipedia | Admiralty/Maritime Law (federal courts derive their exclusive jurisdiction over this field from the Judiciary Act of 1789 and from Article III, § 2 of the U.S. Constitution; Congress regulates admiralty partially through the Commerce Clause.
Wikipedia | Federal Reserve Act of 1913 (text) www.federalreserve.gov/generalinfo/fract/ (text laid out in USC) www.law.cornell.edu/uscode/html/uscode12/usc_sup_01_12_10_3.html; Banking Act of 1933 and Federal Open Market Committee purpose to “promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates” (12 USC §225a).
“Federal reserve banks,…shall be exempt from Federal, State, and local taxation, except taxes upon real estate.” (12 USC §531).
Brainy Quote | U.S. President Woodrow Wilson.
Brainy Quote | Henry Cabot Lodge, Sr.
Legal Dictionary | Definition of hypothecation.
New definition of “re-venue” by this author.
Wikipedia | Revenue Act of 1913; Statutes at Large for 1921, p.227 www.constitution.org/uslaw/sal/042_itax.pdf
Wikiquote | “Federal Reserve Bank is not a federal agency…Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region”; Lewis v. United States, 680 F.2 1239 (9^th Cir. 1982) www.leadershipbygeorge.blogspot.com/2011/11/federal-reserve-is-private-corporation.html
Ownership of the Federal Reserve Bank. Kuhn Loeb and Co. got its start by exploiting Indians and setting up trading posts for the pioneers; anecdote about Kuhn and Loeb sourced from Free At Last by N.A. Scott, Ph.D., D.D., pp.4-39 (federal reserve is not part of the federal government) www.rainbowwarrior2005.wordpress.com/2008/09/29/federal-reserve-owners-and-history/
The House of Rothschid by Nial Ferguson: Amazon
Speech on Federal Reserve from Louis T. McFadden in the U.S. Congress www.scribd.com/doc/16502353/Congressional-Record-June-10-1932-Louis-T-McFadden

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.30 – 35

ORDER YOUR LIBERTY BOOKS TODAY!

$99.95 ~ THREE-VOLUME PRINT SERIES
$33.33 ~ THREE-VOLUME EBOOK

$25.00 ~ PRINT BOOK
$10.00 ~ EBOOK

07. Paper Money Substitute and Federal Reserve Notes (FRNs) | Money | Sovereign’s Handbook

January 12, 2025January 20, 2025 / Chief Visionary Officer & Founder / Leave a comment

By Johnny Liberty

Since gold and silver coinage were heavy and inconvenient for large transactions, and dangerous to transport, the money was stored in safes in warehouse banks. A warehouse receipt or certificate was issued as a money substitute to represent the gold or silver on deposit.

People could trade warehouse receipts as money, or “paper currency (Ø)”. They were similar to redeemable gold and silver certificates issued by modern banks.

Paper Money Substitutes Are Not Money

Today, “paper currency (Ø)” is not actually “money ($)”, but instead a “paper money substitute (Ø)”, because redeemable warehouse receipts, gold or silver certificates must promise to pay a real “dollar ($)” equivalent in gold or silver money.

Federal Reserve Notes (FRNs) make no such promise, and are not “money (Ø)” by any stretch of the constitutional imagination, or as the U.S. Congress may lead us to believe. Paper currencies are legally defined as “corporation notes of undetermined value”, as a private bankers “scrip”.

A Federal Reserve Note (FRN) is a debt obligation of the federal U.S. government, a promissory note, a promise to “pay (Ø)” to the Federal Reserve Bank (FRB), a tangible asset such as gold and silver at an undisclosed time in the future. FRNs are not “money (Ø)”.

FRNs are not lawful, constitutional money ($), but a “fiat paper currency (Ø)”, as “legal tender (Ø)” or as a “paper money substitute (Ø)”. The ($) and (Ø) symbols will henceforth signify the distinction between the two types.

PAPER MONEY SUBSTITUTE = FRNs = Ø

Although the Federal Reserve Note (FRN)(Ø), henceforth, referred to as (Ø) is the keystone of the unsustainable, debt-based and corporate “United States” economy, few people understand how the system actually works.

All Federal Reserve Notes “(FRNs)(Ø)” placed into circulation burdens the entire economy with an ever growing mountain of public and private debt. Every “(FRN)(Ø)” borrowed by the federal U.S. government must be repaid, yet can never be repaid to the Federal Reserve Bank (FRB) and its foreign principals-creditors.

A FRN (Ø) is “unlawful” money under both the state (no foreign bills of exchange) and federal (only gold and silver coin are money) constitutions. Federal Reserve Notes “(FRNs)(Ø)” create not only “debt (Ø)”, but interest and usury that results in perpetual economic slavery for most “U.S. citizens”.

Federal Reserve Notes Are Neither Federal, Nor a Note

Federal Reserve Notes (FRNs), are in actuality, neither federal, nor a note, and not held in reserve. FRNs are not “federal” because the Federal Reserve Bank (FRB) is, in truth, a privately owned corporation, not part of the U.S. government.

Furthermore, there is no gold or silver money, not even paper currency, held in “reserve” in the Federal Reserve Bank (FRB). FRNs are not a “note” because they cannot fulfill an unconditional promise to “pay (Ø)” real money to the holder. By law, a “note” must contain the unconditional promise to “pay-to-the-bearer-on-demand”.

> NOTE– An instrument containing an express and absolute promise of signer to pay to a specified person or order, or bearer, a definite sum of money at a specified time; an instrument that is a promise to pay other than a certificate of deposit.

In truth, a Federal Reserve Note (FRN) is a “Fraud Reserve Note”, a “commercial lien” of a private corporation on the federal U.S. government. In other words an FRN is commercial paper, a negotiable instrument, a counterfeit security of the Federal Reserve Banking (FRB) system. FRNs are unsigned checks written on a closed account of the federal U.S. government corporation which has been closed since the first federal bankruptcy of 1933.

Distinction Between Real Money and Paper

We the People must comprehend this important distinction between real“money ($)” as tangible substance and real wealth, and a“paper money substitute (Ø)” which represents a debt that can never be paid off.

As an individual, one cannot become economically or financially sovereign by accumulating paper money substitutes, or borrowing without restraint, anymore than one can get rich accumulating monopoly money in the game by the Parker Brothers. The same notion applies to a nation state that borrows from its principals-creditors and encumbers its U.S. citizens to pay it back in the not so distant future. Using debt-based paper currency can only result in getting deeper into debt, and then declaring bankruptcy, especially, if a nation’s people cannot comprehend this important distinction.

The same notion applies to a nation state without financial restraint, as the government borrows more and more debt-based paper currency and goes deeper and deeper into debt. That continues until all of its tangible assets, and those of its people, are collateralized and transferred to the principals-creditors who loaned the “paper money substitute” in the first place, namely, the Federal Reserve Bank (FRB).

As an individual one can acquire debt-based paper currency and quickly convert these instruments into tangible assets of actual substance, actual money, property and productive capacity, providing one can establish legal sovereignty and the proper structures to protect these tangible assets.

Additionally, if one acquires property with Federal Reserve Notes (FRNs) instead of constitutional money such as gold or silver, then one has not actually acquired the rights and absolute “allodial” title. One may acquire an equitable title, but not the “allodial” title and the rights inherent therein. Thus, one does not purchase absolute “allodial” title to property as one could under the constitutional Common law system.

If you have not acquired “allodial” title, it is not actually your property. Thus, you have no rights inherent in your property. By implication, the actual “allodial” title remains within the jurisdiction of the federal U.S. government corporation, and to those it assigns or hypothecates the title. Finally, if you have no “allodial” title, the property can be taken at will at any time and you will have no recourse or remedy under the Common law.

There is No Actual Money System

We the People do not have any real “money ($)”, nor are we buying or exchanging goods and services with real “money ($)”, nor are we accumulating wealth or assets as we have been led to believe. In fact, not only is there no real “money ($)”, there is no money system whatsoever. It has been a fraud relentlessly perpetrated for generations upon the people of the united states of America and the world.

Those who have deposited Federal Reserve Notes (FRNs) in their bank accounts have simply accumulated temporary control over a certain amount of bank-created debt which has been substituted for real money.

Your assets are entirely at risk if you do not understand the nature of money and who really owns and controls your property. Wake up to your own economic, financial and legal sovereignty to restore prosperity for all, including a “sound monetary system”.

According to Fortune 500, Jeff Bezos, Elon Musk and Bill Gates may be several of the “richest” men in the United States. However, they are rich in Federal Reserve Notes (FRNs) or “corporation notes of undetermined value”. They are rich in the market value of their corporate company stock. Even billionaires may be unaware of the central bank fraud and their participation in it.

This author would venture to guess that most millionaires do not know that their wealth is entirely contrived by the United States and European Power structures. Without true sovereignty, even the billionaire’s riches and wealth are worthless tokens of what could be possible for humanity and the world.

U.S. citizens Not Paid Real Money

U.S. citizens have not been paid any real money ($) in their entire lives. Consider this seriously. if you have not been paid any real money, then how can you ever “pay (Ø)” your debts? The fact is, you cannot ever pay your debts and neither can any one else.

Now, you can understand why you might feel broke even with so-called “money (Ø)” in the bank? Indeed, you are poor, broke and starving for truth and wanting freedom from the “money masters (Ø)”. Now, do you understand why you are actually “bankrupt (Ø)”, along with much of the rest of the country and world? You cannot “pay (Ø)”debt with a debt-based paper currency, not now, not ever. This truth has been hidden from the people for generations.

We the People can only “discharge (Ø)” a debt which only delays the inevitable “bankruptcy (Ø)” that awaits us all. Instead, would you like to become economically sovereign and financially independent?

“Neither paper currency nor deposits have value as commodities.
Intrinsically, a ‘dollar (Ø)’ bill is just a piece of paper (Ø).
Deposits are merely book entries.”
~ Modern Money Mechanics Workbook,
Federal Reserve Bank of Chicago (1975)

Creating a Sound Monetary System

The constitutional authority to create real “money ($)”,not paper money substitutes, has been reserved to We the People as intended by the Founders, not any central banking system.

Central bankers have learned how to monopolize their congressional privilege to create “paper money substitutes(Ø)” out of thin air in partnership with greedy, power-hungry governments who have willfully and knowingly plunged U.S. citizens into perpetual debt and bankruptcy.

Unfortunately, the federal U.S. government has prosecuted courageous “citizens of the United States”, for example, Bernard Von NotHaus, for creating a“sound money substitute”, such as American Liberty Currency, backed by gold and silver, as an alternative to the central banking cartel. The American Liberty Currency clearly had no similarity to the U.S. Dollar (USD), and NotHaus was by no means “counterfeiting”. Instead, he was making a strong point that the U.S. Constitution required a “sound monetary system” backed by gold and silver. If anyone is engaged in “counterfeiting” it is clearly the U.S. Congress and the Federal Reserve Bank (FRB).

Perhaps one day a constitutional, “sound monetary system”, backed by gold and silver, will be restored in the united states of America.

“To provide for the punishment
of counterfeiting the Securities and
current Coin of the United States.”
~ U.S. Constitution [1:8:6]

We the People still have the “unalienable right” to work, the right to contract, and the right to create our own money substitutes, if necessary, in lieu of adequate supplies of gold or silver.

A few examples of alternative money substitutes are local scrips such as Ithaca HOURS, Cascadia HOURS, time-dollars, barter/trade, and gift economies. and/or restore a gold and silver backed currency.

“By a continuing process of inflation,
government can confiscate,
secretly and unobserved, an important
part of the wealth of their citizens…
~ John Maynard Keynes

Inflation and Devaluation

Whenever there is an increase in the supply of a “paper money substitute (Ø)” in the economy without a corresponding increase in gold or silver “money ($)” reserve, inflation and devaluation occur simultaneously. Inflation and devaluation are mostly invisible forms of “taxation” (grand theft) that even the most enlightened governments inflict on their people.

Federal Reserve Notes (FRNs) are designed to create perpetual debt resulting in both inflation and devaluation of the currency. Inflation and devaluation destroys purchasing power while consumer prices rise at the same rate as inflation.

Inflation, devaluation of the currency and an ever increasing and un-payable debt deliberately transfers control, power and property to the United States and European Power structures that have no interest whatsoever in sharing the wealth or hoarding “paper money substitutes (Ø)”. The actual objectives of the American and European Power structures are to accumulate tangible assets, gold and silver, property, land, industrial and productive capability, and “real estate” which represents true wealth in the economy.

INFLATION = INVISIBLE TAXATION

Two-thirds of the total productivity of the united states of America are invisibly taxed through inflation and devaluation which is inflicted at every level of the system. This is a cozy arrangement between private central bankers and national governments to ultimately confiscate both the wealth and the productivity of the people to suit their globalist agendas.

“Every congressman, every senator, knows precisely what causes inflation,
but can’t [won’t] support the drastic reforms to stop it
[repeal of the Federal Reserve Act of 1913]
because it could cost him his job.”
~ Robert A. Heinlein, Expanded Universe

No Authority to Issue Paper Money Substitutes

The corporate U.S. government and the U.S. Congress were not authorized by the U.S. Constitution to issue paper currency of any kind, but only the authority to coin lawful “money ($)” of substance — gold or silver for the sovereign states and their respective “state” Citizens. Except for former U.S. Congressmen Ron Paul (R-TX) and a few courageous elected officials, the U.S. Congress has been deaf to this alarming prohibition.

“Congress had no authority to grant
a private consortium of banks the monopoly
privilege to create the nation’s currency.”
~ Boston T. Party

Powers not specifically granted by the U.S. Constitution are strictly forbidden and automatically denied. Today, the Federal Reserve Bank (FRB) and the international central bankers have a monopoly over “legal tender (Ø)”, the issuance of paper money substitutes in lieu of gold and silver.

In truth, the international central bankers run the most extensive counterfeiting operation the world has ever known, “legally” protected by a rogue U.S. Congress which has bankrupted the federal U.S. government corporation. Paper money substitutes have essentially changed the mass of humanity into becoming economic slaves of the powers-that-be.

Since the inception of private banking in Europe centuries ago, international central bankers have created wars (e.g., WWI, WWII, WWIII) and conflict for profit and control of the fates of dozens of nations.

Even if we are unaware of it, and it is difficult for most of us to imagine, our political leaders lust for more and more power over our lives. The governments of the world already controls much of the world’s gold and silver reserves except for the gold and silver in private hands.

References:

Wikipedia | Federal Reserve Notes; “Corporation notes of undetermined value.” Wikipedia: and www.investopedia.com/terms/f/federal-reserve-note.asp and http://definitions.uslegal.com/f/federal-reserve-note
Cornell Law | Title 12 USCS §411 (federal reserve notes are debt obligations of the federal United States, not lawful money).
Cornell Law | UCC 3-104(2)(d) (a federal reserve note is a negotiable instrument, a promise to pay other than a certificate of deposit).
Wikipedia | Federal Reserve Bank www.federalreserve.gov
Truth Set Us Free | Modern Money Mechanics Workbook of the Federal Reserve Bank of Chicago, 1975;Javelin Press | Javelin Press | Goodbye April 15th by Boston T. Party, (Javelin Press, Austin, Texas, 1992, p.3/7).
In March 2022, Russia decided to back their currency with gold during the Russia-Ukraine police action. This resulted in a rise of the ruble against the U.S. Dollar and the EURO.
Wikipedia | U.S. Constitution [1:8:6]. Powers delegated to the legislature.
Ibid, p.3/11),
Wikipedia | John Maynard Keynes
Javelin Press | Goodbye April 15^th by Boston T. Party (Javelin Press, Austin, Texas, 1992, p.3/9).
Wikipedia | Expanded Universe by Robert A. Heinlein; Amazon
Javelin Press | Goodbye April 15^th by Boston T. Party (Javelin Press, Austin, Texas, 1992, p.3/2).
Javelin Press | Goodbye April 15^th by Boston T. Party (Javelin Press, Austin, Texas, 1992, pp.4/3-4/11). In 2021, there were 132 million households in America with an average of 1 troy ounce in gold jewelry and gold coins in private hands. That equals $132 million ounces of gold with a mint value of $35/per coin ($4,620,000,000), or a market value of $1,900/ounce ($250,800,000,000); Gold Bulllion Suppliers | Indian households have the largest amount of gold in the world – roughly 24,000 metric tons. Most of it is in the form of jewelry which is used for Diwali festival and weddings. These oil-rich families had vaults of gold – now in the hundreds of tonnes – well before they began making deals with the West. One can only imagine how much gold they have accrued since the 1920s.

Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p.16 – 21

ORDER YOUR LIBERTY BOOKS TODAY!

$99.95 ~ THREE-VOLUME PRINT SERIES
$33.33 ~ THREE-VOLUME EBOOK

$25.00 ~ PRINT BOOK
$10.00 ~ EBOOK