U.S. economic history that Ron Paul wants every American to know: Pt. III

“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.” – Franklin Delano Roosevelt

One of the conditions when Britain took over Washington D.C. during its 1871 bankruptcy was that Britain would bail it out of its debt for a while, but not permanently. In 1909 this bailout ended and economic default again returned. America went back to Britain for an extension; and Britain agreed for a term of twenty years, in exchange for an agreement to three big conditions. One, that America creates another national bank, despite Andrew Jackson’s valid reasoning for discontinuing such in 1836. The second and third conditions were that Britain’s 16th and 17th Amendments were ratified.[1] The national bank was the Federal Reserve Bank, which was completed and fully operational by 1913. Also in 1913 came the 16th Amendment. This chapter discusses the little-known, complete nature and relevance of these two big changes to American law and their affect on the American people.

The Great Depression
When economic default loomed again in 1929, something different happened. J.P. Morgan and Kuhn and Loeb illegally sent advanced warning to their insiders of an economic collapse, who all pulled out of the stock market. The problem initiating the crash was created by Warburg’s Federal Reserve when it printed money at a 62% inflation rate and then raised interest rates to 6%. Congressman Louis T. McFadden claimed the crash was created by the international bankers who sought to become rulers of us all. In his famous 1932 Congressional address, he said:

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. The Federal Reserve Board, a Government board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and iniquities of the Federal Reserve Board has cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

Some people think the Federal Reserve banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves.

Not long after, McFadden died from food poisoning, following a heart attack, which occurred under suspicious circumstances.

Major stockholders, including America’s creditors and their affiliates, pulled out of the market simultaneously, lowering the value of stocks, which caused a nationwide panic. Most everyone decided to pull out, and most naturally did so too late to salvage their family’s earnings. This, just as any economic depression, creates a large gap between a pauper class and a dominant high class. The most important effect of the Great Depression for America’s creditors was that most of the money – cash, certificates, and other constitutionally lawful receipt money – that was backed by lawful coinage (gold and silver) was pulled out of peoples’ hands and moved to the banks. Additionally, many of those who still had cash put it into high-interest yielding Treasury Bonds, driven to a higher value because of their high demand. This also exchanged the lawful money for a different form.[2]

At this point, there was no way out for THE UNITED STATES without resorting to help, meaning accepting new bankruptcy conditions. Being the fiscal agent over the monetary policies of THE UNITED STATES, President Herbert Hoover asked the Federal Reserve for a resolution to the dilemma. The Federal Reserve Board responded: “Whereas, in the opinion of the Board of Directors of the Federal Bank of New York, the continued and increasing withdrawal of currency and gold from the banks of the country has now created a national emergency….”[3]

If it was what money was backed by anyway, why would people holding gold create a national emergency? The emergency came to be because most of the gold withdrawn went not in the hands of Americans, but outside of the U.S. economy: this lost gold actually left at the start of the Depression. “… [T]hat those spectaculars and insiders were right was plain enough later on. This first contract of the ‘moneychangers’ with the New Deal netted those who removed their money from a country a profit of up to 60 percent when the dollar was debased.”[4]

The banks were left without a sufficient amount of gold for their own protection, thus they denied the public its gold. The Federal Reserve Board’s proposal to Hoover was that he release an Executive Order, based on the 1917 Trading with the Enemy Act, which read as follows:

Whereas, it is provided in Section 5(b) if the Act of October 6, 1917, as amended, that “the President may investigate, regulate, or prohibit, under such rules and regulations as he may prescribe by means of licensure or otherwise, any transaction in foreign exchange and the export, hoarding, melting, or ear markings of gold or silver coin or bullion currency, ….”[5]

President Hoover declined to issue the Executive Order because of the negative impact it would have on the American people.

Soon after, a President that would play puppet for international interests was purposely sworn in: Franklin Delano Roosevelt. That day, Roosevelt asked Congress for emergency powers to deal with the crisis. The next day he issued Proclamation 2038, asking for a Special Session of Congress to deal with the situation. The first Act of the Special Session began with these words: “Be it enacted by the Senate and the House of Representatives of the United States of America in Congress Assembled, that the Congress hereby declares that a serious emergency exists and that it is imperatively necessary to speedily put into effect remedies of uniform national application.” The same day, Congress passed this statute:

During time of war or during any other period of national emergency declared by the President, the President may, through any agency that he may designate, or otherwise investigate, regulate, or prohibit under such rules and regulations as he may prescribe by means of licensure or otherwise, any transaction in foreign exchange, transactions of credit between or payments by banking institutions as defined by the President and export, hoarding, melting, or ear markings of gold or silver coin or bullion or currency, by any person within the United States or anyplace subject to the jurisdiction thereof.[6]

Whenever, in the judgement of the Secretary of the Treasury, such action is necessary to protect the currency system of the United States, the Secretary of the Treasury, in his discretion, may regulate any or all individuals, partnerships, associations and corporations to pay and deliver to the Treasurer of the United States any or all gold coin, gold bullion, and gold certificates owned by such individuals, partnerships, associations, and corporations. …Whoever shall not comply with the provisions of this act shall be fined not more than $10,000 or if a natural person, in addition to such fine may be imprisoned for a year, not exceeding ten years.[7]

These statutes led to the landmark “Resolution” that was the biggest theft inflicted on the American people ever.

House/Senate Joint Resolution 192[8]
On June 5, 1933, Congress passed House/Senate Joint Resolution (HJR 192). HJR 192 was passed to suspend the gold standard and abrogate the gold clause in the Constitution. As a result of the conditions set forth by HJR 192, no one in America has since been able to lawfully pay a debt. This resolution reads:

To assure uniform value to the coins and currencies of the United States,

Whereas the holding of or dealing in gold affect public interest, and are therefore subject to proper regulation and restriction; and Whereas the existing emergency has disclosed that provisions of obligations which purport to give the obligee a right to require payment in gold or a particular kind of coin or currency of the United States, or in an amount in money of the United States measured thereby, obstruct the power of the Congress to regulate the value of the money of the United States, and are inconsistent with the declared policy of the Congress to maintain at all times the equal power of every dollar, coined or issued by the United States, in the markets and in the payment of debts, Now, therefore, be it Resolved by the Senate and the House of Representatives of the United States of America in Congress assembled, that

(a) every provision contained in or made with respect to any obligation which purports to give the obligee a right to require payments in gold or a particular kind of coin or currency, or in an amount in money of the United States measured thereby, is declared to be against public policy; and no such provision shall be contained in or made with respect to any obligation hereafter incurred. Every obligation, heretofore or hereafter incurred, whether or not any such provision is contained therein or made with respect thereto, shall be discharged upon payment, dollar for dollar, in any coin or currency which at time of payment is legal tender for public and private debts. Any such provision contained in any law authorizing obligations to be issued by or under authority of the United States, is hereby repealed, but the repeal of any such provision shall not invalidate any other provision or authority contained in such law.

(b) As used in this resolution, the term 'obligation' means any obligation (including every obligation of and to the United States, excepting currency) payable in money of the United States; and the term 'coin or currency' means coin or currency of the United States, including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations.

Sec. 2: The last sentence of paragraph (1) of subsection (b) of section 43 of the Act entitled 'An Act to relieve the existing national economic emergency by increasing agricultural purchasing power, to raise revenue for extraordinary expenses incurred by reason of such emergency, to provide emergency relief with respect to agricultural indebtedness, to provide for the orderly liquidation of joint-stock land banks, and of other purposes;, approved May 12, 1933, is amended to read as follows:

"All coins and currencies of the United States (including Federal Reserve notes and circulating notes of the Federal Reserve banks and national banking associations) heretofore or hereafter coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, duties, and dues, except that gold coins, when below the standard weight and limit of tolerance provided by law for the single piece, shall be legal tender only at valuation in proportion to their actual weight.”[9]

An older Federal Reserve note, such as one from the 1950s, establishes the difference between a Federal Reserve note and true legal tender on its face. Where the modern notes read “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE,” the old notes additionally read, “AND IS REDEEMABLE IN LAWFUL MONEY AT THE UNITED STATES TREASURY, OR AT ANY FEDERAL RESERVE BANK.” The ability to redeem this lawful money, however, is illegal, as established by the terms of HJR 192, making this old offer a bluff. In reality, a Federal Reserve note is just an instrument of debt – an I.O.U. – and not a commodity of value. The only “value” in Federal Reserve notes is their perceived value, and the fact that people who carry this perception circulate them throughout America’s economy. If this fundamentally incorrect perception was to fade, people would perceive them to be what they truly are: just pieces of inked paper.

The New Deal
HJR 192 was the sacrifice for the New Deal. Most believe that Roosevelt – grandson of opium smuggler Warren Delano Junior – was one of the best Presidents ever because he invested lots in jobs, national parks, more roads, etc., and that these investments in due time made the economy boom, as schoolbooks teach. This is a result of what happened, but what changed as a result of the New Deal for the common American “citizen” is avoided in schoolbooks. Deals were being made with the international bankers. The bankers invested in America once again, under new conditions. The first of which was the passing of House/Senate Joint Resolution 192, which further emphasized the country’s necessity for a new national bank – the Federal Reserve. This Resolution commanded people to turn in all of their lawful gold and silver currencies in exchange for Federal Reserve notes. The lawful, gold and silver currencies all went to the bankers, and the Federal Reserve notes[10] acted as debts, merely IOUs in a new, debt-based economic system, completely changing American economics.

Under the new law the money is issued to the banks in return for Government obligations, bills of exchanges, drafts, notes, trade acceptances, and bankers’ acceptances. The money will be worth 100 cents on the dollar, because it is backed by the credit of the nation. It will represent a mortgage on all the homes and other property of all the people in the nation. The money so issued will not have one penny of gold coverage behind it, because it is really not needed.[11]

The biggest effect of the New Deal on the people was that it changed who was to pick up the tab of the national debt. Instead of the United States being the debtor to America’s national debt, the new system’s goal is to make all of the American citizens individually the debtors, foisting the economic responsibility off of the government and on to its people. Sound atrocious? This plan, however, can’t legally be carried out without the American people agreeing to their “share” of the debt. No one in their right mind would voluntarily agree to a share of a debt that they themselves didn’t incur, so the U.S. government had to trick its citizens into becoming debt-slaves to foreign creditors.

To do this, Franklin Delano Roosevelt invoked his Emergency War Powers under Public Law 1. The enemy of his war was defined as “any person within the United States or any place subject to the jurisdiction thereof.”[12] The war was an economic war, and the government gave everyone a nom de guerre – a war name – for the purpose of tracking and regulating its enemies (of the State) in order to “ensure elevated national security.” This war name is also called a straw man: a personal account that the government creates for the purpose of continuing an economic transaction when one party doesn’t necessarily agree to contracting.[13] This is the name found on your driver’s license, social security card, I.R.S. forms, etc. These straw man accounts have the same name as everyone’s legal names, but they are purposely capitalized. John Doe’s straw man account would be called JOHN DOE. These accounts are capitalized because the accounts are considered to be corporations[14] by law. These corporations are also, in law, called persons.[15] By agreeing that your straw man represents you, the sovereign, you are agreeing to be a person and a UNITED STATES citizen, and are contracting with the UNITED STATES to be within the jurisdiction of its private laws.

In 1921 the government started issuing birth certificates, something the UK had been doing since the mid-Nineteenth Century. These certificates confirmed that a child is officially a U.S. citizen. People had no good reason to start obtaining these birth certificates, so the government had to entice them to do so. Expecting mothers were encouraged to sign them on behalf of their babies in return for paid pregnancy leave. Not understanding the contractual implications of the birth certificate, these mothers jumped at the chance for free money with no obvious strings attached.[16] Another condition of the bankers’ New Deal was that everyone was to deliver their birth registries – the documentation used before birth certificates were introduced – to the government. These were exchanged for Certificates of Live Birth (birth certificates), which were then filed by the U.S. Department of Commerce into one of its subdivisions, known as the Bureau of Vital Statistics. These titles to people’s bodies – their property and future labor – were pledged to the international bankers as security (collateral) for the debt of the United States Corporation.[17]

Later, forms of adhesion contracts arose, making the knot that ties the sovereign people to their straw men corporation names even stronger. Adhesion contracts – contracts that favor one party much more than the other, typically entered unknowingly – are found throughout the government’s interactions with its citizens. Registering to vote formally declares one a citizen. After 1935, Social Security benefits enticed people to contract again and receive a social security number. Nowadays, all businesses that blindly follow THE UNITED STATES’ economic laws[18] make one virtually unemployable without a number.[19] Driver’s licenses are another example of an adhesion contract. Look at your name on your driver’s license. You won’t actually find it; instead, you’ll find your straw name, which you agreed was you when you registered for your license. Legally, only one of these contracts is sufficient to bind the sovereign to the corporate UNITED STATES’ laws.

The monetary implications of the New Deal extended all over the globe. Economies all around the world plummeted into depressions; but history books generally don’t disclose much about this fact because it raises obvious questions about the purported cause that the common holders in the U.S. stock market were the prime culprit. Rough worldwide conditions allowed for the propagation of repressive political parties, like Hitler’s Nazi Party, a modernized Democratic Party and a modernized Republican Party, all of which support diminished rights for the people and the interests of those abroad.

“Since March 9, 1933, the United States has been in a state of declared national emergency.”[20] One result of this national emergency was the introduction of the so-called “alphabet agencies” – i.e. the FBI, the CIA, the DEA, etc. – implemented for the purpose of protecting the government from foreign terrorists, which – because the entity in control of the laws is Britain – is usually considered the American people.

In 1944, the states also lost the remainder of their sovereignty through the Buck Act.[21] This Act improperly gave the States the title of 14th Amendment citizens, putting them under U.S. jurisdiction, which, according to the British private laws, eliminated the possibility that they could usurp the authority of the UNITED STATES OF AMERICA.[22] The Act was originally passed as an extension of the Public Salary Tax of 1939, which is a municipal law of the District of Columbia allowing it to especially tax all Federal and State governmental employees and those who live in any Federal area. The problem was that the Act wasn’t pervasive enough to apply to the States, being sovereign entities themselves. The Buck Act was an attempt to lower their status as sovereign states to allow the money-grubbing governmental hands of taxation to loot the rest of the country, making state governments even less distinguishable from the Federal government. The Public Salary Tax Act was subsequently renamed the Internal Revenue Code of 1939 and was used to fraudulently apply federal income tax to all federal citizens.

Twenty years later, all of the states adopted the Uniform Commercial Code, which organized all of the economic transactions of every state and the feds. This Code also gave the U.S. the ability to use the copyrighted names of every state. Since all the laws of bankrupt America are rooted in economic principles, the UCC became the supreme law of the land, which was supposedly ruled, under the Buck Act, by THE UNITED STATES OF AMERICA. And thus the current shadow government, of which people unwittingly believe dominates all law-making and national authority, was formed.

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[1] The 17th Amendment deals with the ability of the executive power of a State to fill in a Senate seat in the event where one opens up. This limits the power of the people to choose who gets in the Senate, under the disguise that it helps Congress run more smoothly. A situation like this was recently seen when Rob Blagojevich chose Roland Burris to replace the seat made vacant by Barack Obama’s transition to presidency. This Amendment allows those who already have power and lots of money to handpick Senators for private interests without the people’s consent.
[2] The economic depression was not only felt by America in this time. World War I created towering debts in several European nations, as well as the United States. In 1930 the international bankers declared these nations, and once again America, bankrupt.
[3] From private papers of Herbert Hoover, March 3, 1933
[4] Hoover Policy Paper, written by the Secretary of Interior and Secretary of Agriculture
[5] Herbert Hoover private papers of March 3, 1993
[6] Title 1, Sec. 2, 48 Statute 1, March 9, 1933
[7] Stat. 48, Section 1, Title 1, Subsection N, March 9, 1933
[8] It’s not of upmost importance that the details in this subchapter need to be closely read or understood in order to continue. Don’t bother taking a long time with it unless it’s your prerogative to do so.
[9] House Joint Resolution 192, 73d Congress, Sess. I, Ch. 48, June 5, 1933 (Public Law No. 10; U.S.C.A. 462, 463)
[10] In legal terms, a “note” is a debt. [Black’s Law Dictionary 1088 (8th ed. 2004)]
[11] House 73rd Congress, Session I, Chapter I, p. 83; Also see Senate Report 93-549 and Executive Orders 6072, 6102, and 6246
[12] 73rd Congress, Sess. 1, Ch 1, Title 1(b)
[13] Black’s Law Dictionary 1461 (8th ed. 2004)
[14] Black’s Law Dictionary 365 8th ed., 2004
[15] Black’s Law Dictionary 1178 8th ed., 2004
[16] Birth Certificates originated as a result of the 1921 Sheppart-Towner Maternity Act.
[17] Title 28 U.S.C. 3002(15)(A)
[18] Which in reality only apply to THE UNITED STATES itself and its subsidiary corporations, along with the ten mile square that is Washington D.C.
[19] This number itself being virtually no different than a brand on a cow
[20] Senate Report 93-549
[21] Title 4, U.S.C. 104-116
[22] For example, the sovereign State of Michigan became THE STATE OF MICHIGAN, and its abbreviation changed from “Mich.” to “MI,” denoting the Federal corporation.