"And if ye go to war in your land against the enemy that oppresseth you, then ye shall blow an alarm with the trumpets; and ye shall be remembered before the LORD your God, and ye shall be saved from your enemies." - Num. 10:9
BACKING OUT OF BABYLON
In This Issue:
THE FIRST U.S. PAPER DOLLARS
WHAT BECAME OF THE GOLD STORED IN THE TWIN TOWERS ?
WHY IS THE NUMBER 911 THE CHOICE OF EXTREMISTS ?
NEVADE vs. THE FEDERAL RESERVE
ALTERNATIVE MONEY HAS REDEEMING VALUE
THE POWER TO TAX IS THE POWER TO DESTROY
TOM DELAY CALLS FOR FAIR TAX TO REPLACE IRS
In our two previous newsletters, we explored the possibilities of exchanging the forms of slavery created by ‘contracts’ with the ‘State’ by returning to a Biblical view of man and his historical relationships with family and government.
If we do not cherish our birthright - if we do not understand who we are and recall our glorious heritage - we will not be able to escape the chains which have been forged for our slavery.
In this Issue, we will examine two vital areas, where we have been and still are being separated from our wealth through deception and brainwashing.
James Madison, one of our early Presidents, warned, "History records that the money-changers have used every form of abuse, intrigue, deceit, and violent plans possible to maintain their control over governments by controlling money, and its issuance."
THE FIRST U.S. PAPER DOLLARS
The very first U.S. paper dollars were voted into existence on June 22, 1775, to pay for the War for Independence.
The amount -- two million, pegged against Spanish milled dollars -- about a fifth of all the hard money in North America at the time. This paper currency was to be redeemed in stages.
Although victory would eventually bring the 13 colonies their independence, in those early years of paper money, the war still had no end in sight.
The allied colonies were confused as to ways and means. We had no flag or president. We were not
properly a nation. We faced the best army in the world. Gold and silver were hard to come by; it was the first time in history that a people had gone to war without the money to pay for it.!
Robert Morris patterned America's 1st privately owned Central Bank, The BANK of NORTH AMERICA, closely after the Bank of England and obtained a charter from Congress in 1781 to issue promises-to-pay in the amount of actual deposits.
The Bank produced inflated promises-to-pay that generated little interest, converted to a commercial banking facility and ceased central banking functions by 1783.
In 1791 Congress gave The First Bank of the United States, America's 2nd privately owned Central Bank, a 20-year charter to loan money into circulation.
Unnamed foreign investors, including the House of Rothschild, shaped the Bank's operating philosophy. The federal government borrowed into circulation $6.2 million the first five years of the Bank’s existence.
Wholesale prices rose 72% and inflation confiscated people’s wealth. The First Bank of the United States refused to redeem much of the money created by America's independent banks.
Jefferson-led Republicans opposed The First Bank's twenty-year tenure. In 1811 by a single vote Congress discontinued The First Bank.
However by 1812, The Second Bank of the United States, America's 3rd privately owned Central Bank, initiated operations and began to contract the economy in 1818 by curtailing the issue of new promises-to-pay and by calling in old promises-to-pay.
During the pre-Napoleonic era, 1730-1796, Britain effectively adhered to the gold standard but during the Napoleonic war period of 1797-1820, she abandoned the gold standard.
However, in the United States, gold and silver remained as the backing for our currency, especially during the classical gold standard period, 1821-1913. Then President Roosevelt audaciously seized as much of our gold, as could be found in safe-deposit boxes.
It was handed over to International Bankers and used to finance the Russian Revolution and much of World War I. Subsequently, it became illegal for Americans to own gold for a number of years! But thankfully, today, it is again legal to own gold but now we are faced with another question.
WHAT BECAME OF THE GOLD STORED IN THE TWIN TOWERS ?
Prior to September 11, 2001, there was a sizeable deposit of gold in the underground vaults of the Twin Towers, which formed part of the United States gold reserves.
Now, it is possible that the gold could have been removed to the Federal Reserve bank in New York, prior to the attack, which brought down the Twin Towers, but this scenario presupposes a prior knowledge on the part of Treasury officials, of the impending attack.
We all know that the debris of the Twin Towers was removed - clear down to ‘ground zero’. Was any gold discovered? I don’t think so. This would be a good question to put to your Congressmen and Senators.
Try as I might, I still haven’t been able to learn what happened to the gold.
And with the ‘reclassification’ of the gold supposedly held at Fort Knox, one begins to wonder.
Considering that there hasn’t been an audit of our gold reserves for several years, one might even get a little nervous.
WHY IS THE NUMBER 911 THE CHOICE OF EXTREMISTS ?
Why is this number 9-11 the choice of extremists?
Most American have forgotten another terrorist attack made upon the White House at 2300 hrs on September 11, 1994 by Frank Eugene Corder who crashed his Cessna into the White House!
Coincidence? As I have devoted considerable space to this mystery in another article,
(See http//www.theseventhtrumpet.net/) Let’s return to original topic - DECEPTION. I believe the American people are waking up to our situation, thanks in part to the Internet.
Unfortunately, most people think we will always be able to use the internet to voice our concerns, but the fact is, many countries have closed down web sites, including England and Australia. Please print this stuff out, so you will have hard copies to work with, if need be.
NEVADA vs. THE FEDERAL RESERVE
By Kelly Patricia O Meara in Insight Magazine
There currently are 60 different forms of currency in circulation throughout the United States, and the reasons for issuing this alternative money are as numerous as the currencies themselves.
While many have begun using new forms of currency to keep the money within their community, there are others, such as Bernard von NotHaus, founder of the National Organization for the Repeal of the Federal Reserve, who are intent on using it to publicize the populist claim that the Federal Reserve is illegitimate.
Now it appears that even some states are beginning to question whether the Fed is constitutional.
A bill recently submitted to the Nevada Assembly Committee on Constitutional Amendments directs the issuance of Nevada silver coins.
The act, now under consideration, states in part that: the purported delegation by the Congress of the power to issue money to the Federal Reserve Bank, a privately owned corporation, is a violation of the terms of the U.S. Constitution;
the failure of the Congress to discharge its obligations to issue all the money pursuant to Section 8 of Article I of the Constitution absolves the state of Nevada from its constitutional obligation not to issue money;
the state of Nevada shall issue into circulation coins of the state of Nevada in the amount of $50 million.
The coins must contain 1 ounce of fine silver, must be alloyed to 90 percent fineness and must bear the Great Seal of the state of Nevada on one side and the
words, "Contains One Troy Ounce Fine Silver," "Twenty Dollars," "Nevada Legal Tender" and the year of issue on the other side. The coins so issued are legal tender for all debts, public and private, in Nevada.
If the Nevada Legislature determines that the U.S. Congress is fulfilling its constitutional obligation to issue money by requiring the Federal Reserve "to retire its circulating notes and causing the issuance of sufficient notes of the United States and other currency to meet the needs of the commerce of the United States and Nevada, the State Treasurer shall retire the coins authorized by this section as they are received into the State Treasury."
Nevada is the first of the 50 states to consider taking such steps against the Federal Reserve, and one has to wonder which, if any state, will be next.
At a minimum, it's not good news for a Federal Reserve that has made printing money and manipulating the amount of money and credit in circulation into an art form, especially on its 90th anniversary.
ALTERNATIVE MONEY HAS REDEEMING VALUE
More than $3 million worth of them are in circulation throughout the United States, with an estimated 30,000 people using them in place of the dollar at an unknown, yet apparently increasing, number of business establishments.
No, they aren't Disney Dollars, but the principles are similar to those of mouse money and, surprisingly, to Federal Reserve notes.
Those who use them claim that they are the "real" money, backed by something of value. They mean to make a statement about their lack of faith in the greenback, the world's premier currency.
Five years ago economist and retired mint master of the Royal Hawaiian Mint Bernard von NotHaus began the National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code (NORFED) and started providing an alternative to the Federal Reserve notes commonly called dollars.
"We have an obligation - a moral obligation - to tell people about the history and consequences of past fiat currencies and to draw an analogy of what is going on today in this country," von NotHaus tells Insight.
Von NotHaus contends that the Federal Reserve is not a "federal" agency at all but a cabal of private and international banks that does not answer to the U.S. government. He says it is "shadowed in deceptive origins and fraudulent policies."
According to NORFED literature: "Hundreds of authors and commentators have gathered an impressive body of facts and documentation to show how the Constitution of the United States was circumvented to allow the central bankers control over our money. ...
These students of the nation's monetary system aren't kooks - they're professors, political scientists, judges, senators and even presidents. It is only a matter of time before the truth
is revealed that the Federal Reserve is nothing more than a national scam that has ripped off the American people and enslaved them with perpetual debt."
That is, of course, one view going back to the scrap between Alexander Hamilton and Andrew Jackson, and it is a minority opinion. But it is one around which hard-money advocates have been circling their wagons for nearly two centuries.
Now and then someone such as von NotHaus will come along and go so far as to produce his own private money.
Von NotHaus isn't alone in his contempt for the Federal Reserve, nor is his currency the first of its kind.
Currently there are approximately 60 different forms of private currency in circulation throughout the United States, most notably the "Ithaca HOURS."
Ithaca HOURS are issued by a local community organization and are as valid as Fed notes for payment or settling debts among consenting parties.
Five denominations of Ithaca HOURS have been issued, one Ithaca HOUR being regarded as equal to one hour of basic labor, or $10. The lowest denomination is one-eighth of an Ithaca HOUR, which is equal to one-eighth of an hour of basic labor, or $1.25. Nearly $85,000 worth of Ithaca HOURS have been issued, with an estimated transaction value of several million dollars added and kept within the local community.
Unlike the Ithaca HOURS, which are used within a specific community, or the Disney Dollar, which must be used exclusively within Disney facilities, the von NotHaus currency is accepted by businesses nationally and internationally and is exchanged in denominations that are one-to-one with Federal Reserve notes.
Von NotHaus' currency comes in units of $1, $5 and $10 silver, and a $500 gold note, all redeemable in precious metal.
Everything about NORFED's American Liberty Currency (ALC) is perfectly legal and is explained on the organization's Website www.libertydollar.org.
Claudia Dickens, a spokeswoman for the U.S. Bureau of Engraving and Printing, tells Insight: "Any merchant who wants to accept [the ALC] can do so as long as the people circulating it do not indicate that it is backed by the federal government. Where private currency is made for use, and businesses accept it knowing this, it is perfectly legal."
What sets the ALC apart from other alternative currencies, says von NotHaus, is that "it is 100 percent backed and redeemable in gold and silver," which is what this nation's founders constitutionally mandated for the official currency.
"We don't sell currency," explains von NotHaus, "we exchange it. We have the $10 silver base, which means that while silver is under $10 an ounce, every liberty dollar is backed up by one-tenth of an ounce of silver. That ounce of silver is in the warehouse before the certificate is issued. NORFED doesn't issue the
certificate; we distribute the currency. The warehouse receipt, which is a legal binding contract as defined by the Uniform Commercial Code, actually is issued by the warehouseman whose signature is on the back of every certificate.
"With the Liberty Dollars what people do is currency exchanges - they aren't purchasing money.
There is no sales tax on currency exchanges, and this currency is designed specifically to function on a one-to-one basis with Federal Reserve notes, regardless of where the price of silver may go.
That's why we call this 'America's inflation-proof currency.' It protects from the inflation of the Federal Reserve notes."
So how does the ALC work? According to von NotHaus: "More likely than not, a merchant will accept the currency from you and do the exact same thing they do with Federal Reserve notes - they would exchange it with another customer.
If the customer doesn't want the ALC then the merchant makes change in Federal Reserve notes." Von NotHaus continues: "If the people or merchants who have accepted the ALC don't want it, they can turn it in for silver and they will get exactly what is specified in the terms on the back of the certificate, or they can get Federal Reserve notes.
That there are some who may not want the currency isn't surprising. After all, not every merchant accepts American Express. The fact remains that this currency has real value because it is redeemable in silver or gold and the Federal Reserve notes are not."
While all of this sounds like utopia to advocates of hard money, not everyone is convinced of its practicality.
Richard Rahn, a senior fellow of the Seattle-based Discovery Institute, an adjunct scholar of the Washington-based Cato Institute and author of ‘The End of Money and the Struggle for Financial Privacy’, tells Insight’: "There are people out there experimenting with alternative forms of money, and they all hope that people will start using this money.
Back during the Carter administration when inflation was very high you could make the case for alternative or gold money, but for the last 20 years or so inflation has been about 2 or 3 percent.
Over time, the value of the dollar erodes, but if you put your dollars into say CDs [certificates of deposit] or Treasury bills, you can earn at least a little interest."
The problem with these schemes, continues Rahn, "is that the transaction costs going into and out of them are pretty substantial and there are holding costs as well.
They [alternative money and private currencies] may make sense in places where you have high rates of inflation. For example, Argentina would have been better off in gold money.
There are certain advantages in the international arena, but nobody has really worked the thing to get the transaction costs down far enough to be really useful.
And the reality is that for the last 30 years the prices of both silver and gold have steadily fallen." [Not true today. J.B.]
Rohn continues, "While private money is available, it is not a growing trend. People started talking about it in the 1970s because there was very high inflation.
There were a lot of private currencies and coinages then and there were many legislative changes making it legal, but there hasn't yet been a truly successful alternative currency. Maybe at
some point people will figure out how to do it effectively. But if such monies ever became a competitive threat to the dollar, the government would probably react the way it normally does and make it illegal."
Von NotHaus argues that using the ALC isn't about investing in commodities. "Remember," he says, "the spot price of silver in New York is for a 5,000-ounce ingot. One-ounce silver pieces [U.S. Mint] are sold for spot plus $2 to $4. So at $5 silver, one-ounce pieces run $7 to $9, which is about the same as the $10 certificate.
The price of the certificates includes not only the market value of the underlying silver, but also the minting, storage, insurance, printing and distribution. Paying $10 or less for $5 in silver is very reasonable given the costs involved in producing the currency, and don't forget that it's far better than the Federal Reserve notes [dollars] whose raw materials [ink and paper] are worth about 3.5 cents."
There is no telling how successful the ALC will become, but few who are watching it doubt that its popularity is based on the faith of the people using it, very much like Federal Reserve notes.
To understand the premise behind the desire of von NotHaus and others to go to silver- and gold-backed currencies, one need only compare an ALC certificate with a Federal Reserve note. One is redeemable in silver, and the other is not redeemable.
Kelly Patricia O'Meara is an investigative reporter for Insight magazine.
THE POWER TO TAX IS THE POWER TO DESTROY
In 1999, the average American family spent more per capita on taxes ($10,298) than on food ($2,693), clothing ($1,404), and shelter ($5,833) combined. Where did this money go?
In this series of articles, we have been examining the various ‘contracts’ that bind us to the ‘State’.
Today, we are seeing our hard-earned money being taken from us by tax agents in various level of government. One does not need to be a rocket scientist to realize that much of this money is going to various political and educational organizations, ethnic groups, large corporations, etc. in the form of welfare.
Perhaps we need to begin withholding out taxes, until politicians come to realize whose money they are spending.
The current U.S. military budget is $396 billion, and it's expanding rapidly. That's roughly $5000 for every household in the U.S. But what's more relevant is how it stacks up relative to other countries.
The fact is, it's significantly more than the combined budgets of every other country in the world, which is even more bizarre when you consider that the U.S. has only 4% of the world's population.
For your reference, here are the next largest military budgets:
Russia $60 billion;
China $42 billion;
Japan $40.4 billion;
United Kingdom $34 billion;
Saudi Arabia $27.2;
France $25.3 billion;
Germany $21 billion;
Brazil $17.9 billion;
India $15.6 billion;
Italy $15.5 billion;
South Korea $11.8 billion;
Iran $9 billion; Israel $9 billion;
Taiwan $8.2 billion.
Israel, which is actually surrounded by enemy states while simultaneously fighting a guerrilla war within its borders, only spends $9 billion.
France and Britain, which have close historical connections to scores of ex-colonies who are a constant tribulation (e.g., the Ivory Coast), together only spend a fraction of the US budget.
Where does the money go?
I don't think anybody has actually figured it out. But 75% of it would be totally unnecessary if the U.S. government recalled the troops from well over 100 countries around the world where they're antagonizing the natives.
The U.S. is, in effect, in an arms race against itself. And the problem of having a powerful military is similar to that of having a big hammer: pretty soon, everything starts looking like a nail.
Of course, not all U.S. military spending goes directly to the U.S. military.
The U.S. gave $1 billion in aid to Somalia before its disastrous "peace-keeping" mission in 1991 - including $154 million in weapons.
It's estimated that the U.S. Government gave the Taliban and other Afghan rebels about $3 billion in military aid to fight the Soviets. And you certainly won't hear Bush admitting that in 2001 alone, before the 911 attacks made the Afghans the Devil of the Month, the U.S. government gave the Afghan regime $125 million in aid.
I haven't seen the numbers for the amount of support to Saddam while Iraq fought the Iranians during the 80s. But the Iranians were armed almost exclusively with American weapons left over from the Shah's regime. It might be called "the boomerang effect.
In 1977, the Dept. of Energy budget $19 billion, which has never produced a barrel of oil.
Frank Chodorov stated: "If the State has a prior right to the products of one’s labor, his right to existence is qualified."
Once income taxes were imposed on the citizen, the level of earnings he was allowed to keep became dependent on the goodwill of the government; and how much he was allowed to keep varied with the size of the government jackboot."
The famous French economist and pamphleteer Frederic Bastiat (1801–1850) wrote of the French Government saying: "If you make of the law the palladium of the freedom and the property rights of all citizens, and if it is nothing but the organization of their individual rights to legitimate self-defense, you will establish on a just foundation a rational, simple, economical government, understood by all, loved by all, useful to all, supported by all, entrusted with a perfectly definite and very limited responsibility, and endowed with an unshakable solidarity.
If, on the contrary, you make of the law an instrument of plunder for the benefit of particular individuals or classes, first everyone will try to make the law; then everyone will try to make it for his own profit."
- Selected Essays on Political Economy by Frederic Bastiat, pages 238 and 239.
"The founding fathers, in an act of the Continental Congress in 1774, said, 'If money is wanted by rulers who have in any manner oppressed the people, [the people] may retain [their money] until their grievances are redressed, and thus peaceably procure relief, without trusting to despised petitions or disturbing the public tranquility,'" Schulz said in a speech Nov. 14 at the National Mall in Washington, D.C.
"This very American right of redress of grievances before taxes is deeply embedded in our law," he said. "The founding fathers could hardly have used words more clear when they declared, 'The people … may retain [their money] until their grievances are [remedied].' "
TOM DELAY CALLS FOR FAIR TAX TO REPLACE IRS
Wes Vernon, NewsMax.com
Wednesday, April 16, 2003
WASHINGTON – House Majority Leader Tom DeLay wants to get the IRS off the backs of American taxpayers.
By signing on to the Fair Tax Bill, H.R. 25, the Texan has signaled to his troops that abolishing the IRS once and for all is the best way of dealing with oppressive taxation, a confusing convoluted tax code, and an oppressive bureaucracy that enforces the care and feeding of the federal bureaucracy.
The House leader reinforces his determination to get some relief for overtaxed Americans by backing the Fair Tax movement. This is a tax that would be paid on what you consume.
Here’s what the legislation would do:
1. Individuals would not file. Businesses would need to deal only with sales tax returns.
2. Millions of Americans who hire tax accountants to navigate the 4,000-plus pages of the tax code each year would be spared the expense.
3. No more taxes on wages, savings and investments. That alone would increase productivity and result in significant economic growth.
4. As a consumption tax, the amount you pay in taxes would depend on your lifestyle. The more you spend the more you pay, and vice versa. All taxes would be rebated up to the poverty level.
5. Foreign companies would be forced to deal on even terms with American companies for the first time in 80 years. Under the current code, U.S. exports bear an unfair burden, with no adjustment to account for the tax advantages of imports.
"You’re going to have more honest management," and less reliance on tax shelters, Fair Tax activist George Gettemuller told NewsMax.com. Management "is going to have to be honest, and they’re going to have to be long-term in their projections. And you’re going to see that our manufacturing will come back home."
That would be "Europe’s worst nightmare" because, according to Gettemuller, we will be "so damned efficient." We’ll sell our goods on the market at considerably less than the competing products of high-tax double-digit economies in Europe, "and they’re going to
have to up the tax on" their own products.
It would help resolve our problematic balance of payments.
"Our balance of payments stinks," observed the retired stockbroker, who lives in Florida.
"And what’s going to happen is your stock market will go up. Everybody will feel a lot better. I mean this will make the stock market go and make real value," in his opinion.
Full employment and an end to Enron or Global Crossing-style scandals are among the other benefits envisioned by supporters of Fair Tax.
This movement is not something that was hatched in Washington. Very seldom is the seat of power the birthplace of ideas that provide the average taxpayer with a level playing field.
The idea comes from the grassroots, with Americans for Fair Taxation (AFT) as the guiding force. This Houston-based organization began primarily as a research group that sought to determine what the American people wanted in a tax system and what Americans believed was the best way to collect revenue.
AFT says extensive focus group studies led to the Fair Tax as its choice as "the most reasonable and viable plan possible."
While Capitol Hill putters around the edges, arguing over whether President Bush’s tax-cut stimulus plan should be cut in half or merely by one-quarter, these citizens are going right to the core of the problem: The IRS, whose job it is to enforce a convoluted income tax code rooted in envy and class hatred.
The worst thing that can happen to radical Marxists is for a rising tide to "lift all boats," as Ronald Reagan long advocated. If they can’t foment the class struggle, the hard leftists are out of business. They become the proverbial emperor with no clothes.
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