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John Birch Society November 2015
Next generation of children 'will not know what money is’
I submit to you, neither does the current generation or the prior generation!
Take away points• Citizens have two great Constitutional powers
1. The Power of the Purse
2. The Power of the Sword
• But normalcy bias has blinded us to those powers
• Allowing the 5 Myths of Keynesians economics to insidiously replace the Constitutional Free Market system.
The two great powers in the U.S. Constitution
Power of the purse
• Article I Sec. 8, Clause 5[The Congress shall have Power] To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures
• Article I Sec. 10, Clause 1No State shall … make any Thing but gold and silver coin a Tender in Payments of Debts.
Power of the sword
• Art. I Sec. 8, Cls. 15 & 16[The Congress shall have Power] To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;
• To provide for organizing, arming, and disciplining the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;
These powers are often misunderstood
• Within the power of the purse there is:1. The implicit power to provide for free coinage of silver and
gold. This is significant, as free coinage is key to the prevention of debasement and depreciation of all money; and
2. The guaranteed power to withhold payment of taxes for redress of grievances pursuant to First Amendment.
• Within the power of the sword there is:• The guaranteed power of the people to be armed and trained
as well as any standing army
• The founders’ understanding that the Only Thing We Have to Fear Is Tyrannical Government and not fear itself.”
Free Coinage is the conversion of bullion of any specified metal into lawful tender coins for any person who chooses to bring it to the mint
Resulting in a warped Normalcy Bias
• The U.S. Dollar can never failWithout exceptions, the history of irredeemable legal tender paper & electronic money is that its purchasing power always approaches its cost of production, which is: ZERO
• The U.S. Supreme Court is never wrongApplying these general principles, the Court has during the past 20 Terms overruled in whole or in part 33 of its previous constitutional decisions. Payne v. Tennessee, 501 U.S. 808 (1991)
• Keynesian Economics is a sound economic philosophyBy Keynes's own admission, his economic system works best under a totalitarian government. This is an admission of sorts that it is not sound economics but rather requires coercion to have the desired effect. Proper economics deals with the operation of markets, not force compelling transactions.
Normalcy Bias is a mental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster and its possible effects..
Keynesians’ FIVE Myths of Money1. The Dollar is anything Congress declares it to be!
2. The value of Money is anything the I.R.S. says it is!
3. There is not enough gold or silver to sustain a global economy!
4. Gold and silver are to heavy to transport in a global payment system!
5. Inflation benefits debtors and harms lenders!
Examining Myth 1Constitutional Units of Measure:
Unit of Measure
Times Stated Definition when the Constitution was Ratified
Year 33 One revolution of the earth around the sun’s axis
Day 21 One revolution of the earth around it’s own axis
Hour 1 15 degree rotation of the earth around it’s own axis
Mile 1 A unit of linear measure equal to 5,280 feet
Dollar 2 A coin containing 371.25 grains of silver
Eisner v. Macomber, 252 U.S. 189, 206 (1920)Congress cannot by legislation alter the Constitution, from which
alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised.
The Dollar of the ConstitutionArticle I Section 8, Clause 5[The Congress shall have Power] To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
Article I Section 9, Clause 1… a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person.
Article I Section 10, Clause 1No State shall … make any Thing but gold and silver coin a Tender in Payments of Debts.
Amendment VIIIn Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law.
What is One Dollar?
One Dollar is a standard unit of measurement
Weight: 16 Ounces = 1 Pound * 2000 = 1 Ton
Length: 1 Inch * 12 = 1 Foot * 3 = 1 Yard
Analogous
24 Hours = 1 Day * 7 = 1 WeekTime:
Money: 371 ¼ grains of Silver minted = $1.00
Dollars or Units – each to be of the value of a Spanish milled dollar as the same is now current and to contain three hundred and seventy-one grains and four sixteenth parts (371 ¼) of a grain of pure … silver
Does the Constitutional Dollar standard exist today?
• Yes! How do we know?
• The number $1.292929292.It is derived from the constitutional dollar unit.
Title 31 U.S.C. §5116(b)(2): The Secretary shall sell silver under conditions the Secretary considers appropriate for at least $1.292929292 a fine troy ounce.
Congress’ Responsibility to Regulate the Value of Coin
Key:
1 troy oz = 480 grains1 troy oz = 31.1034 grams1 troy oz = 1.09714 oz
1 Eagle (10 Dollar)(247.5 grains Gold)
1 Dollar(371.25 grains Silver)
X 10 =(3,712.5 grains
of Silver)
1 Cent(46.3 grainsof Copper)
X 100 =(4,630 grains
of Copper)
1 Dollar(371.25 grains Silver)
Congress has the responsibility to regulate the value of all minted coins to the fixed pure metal Dollar standard.
Supreme Court - Coin Money is a Constitutional Requirement
• United States v. Marigold, 50 U.S. (9 How.) 560, 567-568 (1850): “They [Congress] appertain rather to the execution of an important trust invested by the Constitution, and to the obligation to fulfill that trust on the part of the government, namely, the trust and the duty of creating and maintaining a uniform and pure metallic standard of value throughout the Union. The power of coining money and of regulating its value was delegated to Congress by the Constitution for the very purpose, as assigned by the framers of that instrument, of creating and preserving the uniformity and purity of such standard of value * * *
"If the medium which the government was authorized to create and establish could immediately be expelled, and substituted by one it had neither created, estimated, nor authorized one possessing no intrinsic value then the power conferred by the Constitution would be useless wholly fruitless of every end it was designed to accomplish. Whatever functions Congress are, by the Constitution, authorized to perform, they are, when the public good requires it, bound to perform; and on this principle, having emitted a circulating medium, a standard of value indispensable for the purposes of the community, and for the action of the government itself, they are accordingly authorized and bound in duty to prevent its debasement and expulsion, and the destruction of the general confidence and convenience …."
1792 Penny
Marigold was recently cited in: International Bancorp Llc v. Societe Des Bains De Mer et Du Cercle Des, 329 F. 3d 359, May 19, 2003, for a different reason but still stands affirming congressional responsibility to maintain a pure metallic monetary standard;
Myth 2: The value of Money is anything the I.R.S. says it is!
The IRS claims the following argument Frivolous:
• In a transaction using gold and silver coins, the value of the coins is the face value of the coins and not their fair market value for purposes of determining taxable income.
(Source 2007-14 I.R.B, pg. 885 April 2, 2007)
1. U.S. Monetary Law changed in 1985.
2. Constitutional money was reintroduced in 1986.
3. FOIA documents show that the only substance to the IRS’ position is the assertion itself.
Thompson v. Butler, 95 U.S. 694, 696 (1878)
A coin dollar is worth no more for the purposes of tender in payment of an ordinary debt than a note dollar. The law has not made the note a standard of value any more than coin. It is true that in the market, as an article of merchandise, one is of greater value than the other; but as money, that is to say, as a medium of exchange, the law knows no difference between them.
Thompson v. Butler was recently cited in: Crummey v. Klein Independent School District (Unpublished Opinion, U.S. Ct. App. for the 5th Circuit, No. 08-20133, 2 October 2008).
Federal Reserve Notes are NOT Dollar$ or Lawful Money
-CITE-
12 USC Sec. 411 01/03/05Sec. 411. Issuance to reserve banks; nature of obligation; redemption-STATUTE-
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
Federal reserve notes shall be redeemed in
lawful money on demand.
=
What is a Federal Reserve Note?
• It is a Private Bank Note • (It is a promise from the bank to pay real lawful money)
• It is [supposed to be] Redeemable for Lawful Money on Demand• (Pursuant to Title 12 U.S.C. § 411)
• It is NOT Constitutionally Authorized Money• The Constitution only authorizes gold or silver Coin as Tender in Payment
of Debts within the 50 states of the Union, per Article I Section 10, Clause 1
• They are an unconstitutional emission of “Bills of Credit”
[Fedarl Reserve] notes have no value for themselves, but for what they will buy. {Ask yourself: if 350 one dollar Federal Reserve notes exchanges for one currently minted Ten dollar ($10) gold coin, what is the market value of the transaction?}
Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral is chiefly gold certificates and United States securities. This provides backing for the note issue. The idea was that if the Congress dissolved the Federal Reserve System, the United States would take over the notes (liabilities). This would meet the requirements of Section 411, but the government would also take over the assets, which would be of equal value. Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.
Our Government admits that FRNs are unconstitutional!
From the Report of the Commission, established pursuant to Public Law 96-389 delivered to Congress by Donald T. Regan, Secretary of Treasury, March 31, 1982:
“In addition to the compelling economic case for the gold standard, a case buttressed by both historical and theoretical arguments, there is a compelling argument based upon the Constitution. The present monetary arrangements of the United States are unconstitutional --even anti-constitutional-- from top to bottom.” (vol. II, pg. 243)
Constitutional money guarantees citizens a known fixed standard of value
The constitutional Dollar – a minted Coin containing 371 ¼ grains of silver – guarantees value:
“It is significant that this power of coining money is mentioned in the same sentence in the Constitution as the power to "fix the standards of weights and measures,“ for the framers regarded money as a weight of metal and a measure of value. Roger Sherman, a delegate to the Constitutional Convention, wrote that “If what is used as a medium of exchange is fluctuating in its value, it is no better than unjust weights and measures…which are condemned by the Laws of God and man …".
1794 Silver Dollar America's First Silver Dollar Struck
Deut 25:13-1513 Thou shalt not have in thy bag divers weights, a great and a small. 14 Thou shalt not have in thine house divers measures, a great and a small.15 But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened in the land which the LORD thy God giveth thee.
Prov 20:1010 Divers weights, and divers measures, both of them are alike abomination to the LORD.
Myth 3: There is not enough gold or silver to sustain a global economy!• This assertion is the bankers myth.
Thomas Jefferson put it this way“I sincerely believe, with you, that banking
establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is
but swindling futurity on a large scale.”
The real question that should be asked is: Who benefits from a fiat monetary system?
Benefits of each type of Currency
Benefits of Fiat Currency• It’s cheap to make and cost-
efficient.
• It allows its creator to regulate prices.
• Its value isn’t subject to changing market needs. (e.g. silver for iPhones.)
• It allows its creator to transfer wealth from the productive to the unproductive.
• It can be, and is, used to foster a degree of social control.
Benefits of Gold/Silver• It has intrinsic value.
• It conveys a property title to the bearer.
• It gives saver the surety that they can buy items in the future at current prices.
• It does not require coercive laws to enforce its use as money.
• It’s a natural regulator of public or government debt.
What are the effects of using fiat-currency?1. An unrealized loss of capital and property;
2. A loss of real economic value;
3. The loss of the full economic impact of automation;
Property = # Lawful Money $
($)13,500
=1957
1,600 Sq. Ft. Home
= # Egg Cartons(Brown Eggs)
=
~37,700
# Legal Tender $
$13,500
=
U.S. Silver Certificate
No LawfulMoney Available
=
~37,700 “$85,400”
Fed. Res. Bank Note
1982
1,600 Sq. Ft. Home
=
($)13,500
=
~37,700
2007
1,600 Sq. Ft. Home“$175,000”
Fed. Res. Bank Note
=
Unrealized losses of capital and property
Buy1957
Sell2007
1,600 Sq. Ft. Home
No Cartons of Eggs Gain
No Gain No Tax Due
No Lawful Money Gain
No Gain No Tax Due
Federal Reserve Note“Gain” of $161,500
Alleged Tax Due ~FRN$55,000
After FRN Tax results in aLawful Money Property
Loss of ($)4,269
After FRN Tax results in aPhysical Egg Carton Loss of
11,922 Cartons of Eggs
Property
($)13,500
=
=
($)13,500
= # Lawful Money $
The purported Federal Reserve Note “Gain” is actually a “quiet theft” in thatit results in a physical property loss with the perception of an actual gain.
=
=
~37,700
~37,700
= # Egg Cartons(Brown Eggs)
1,600 Sq. Ft. Home
$13,500
$175,000
=
# Legal Tender $
U.S. Silver Certificate
Fed. Res. Bank Note
=
Quiet Theft!
Stock = # Lawful Money $
$1,942.00
=
= # Egg Cartons(Brown Eggs)
=
~5,424
# Legal Tender $
$1,942.00
=U.S. Silver Certificate
No LawfulMoney Available
=
~4,266 “$4,884”
Fed. Res. Bank Note
=
$2,338.56
=
~6,571 “$30,501.00”
Fed. Res. Bank Note
=
What is the effect of using unconstitutional legal tender?
1962
4 Shares IBM Stock
1982
75 Shares IBM Stock after splits
2007
300 Shares IBM Stock after splits
IBM Stock Splits: 1964-05-18 [5:4], 1966-05-18 [3:2], 1968-04-23 [2:1], May 29, 1973 [5:4], Jun 1, 1979 [4:1], May 28, 1997 [2:1], May 27, 1999 [2:1]
Buy1962
Sell2007
IBM Stock
17% Gain in Eggs Cartons
Tax Due ~172 Egg Cartons
17% Lawful Money Gain
Tax Due $59.48
Federal Reserve Note“94% Gain” of $28,559
Alleged Tax Due (15%) ~FRN$4283.85
FRN Inflation results in a83% tax rate or $328.45 of the $396.56 of the purported gain
After FRN Tax results in aPhysical Egg Carton Loss of
923 Cartons of Eggs
Stock
$1,942.00
=
=
$2,338.56
= # Lawful Money $
The purported Federal Reserve Note “Gain” is actually a “quiet theft” in thatit results in an 83% tax rate with the perception of 15% tax rate.
=
=
~5,424
~6,571
= # Egg Cartons(Brown Eggs)
IBM Stock
$1,942.00
“$30,501.00”
=
# Legal Tender $
U.S. Silver Certificate
Fed. Res. Bank Note
=
Quiet Theft!
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 610
2
4
6
8
10
12
Inflation adj 3.2%cost/unit
The loss of the full economic impact of automation.
Automation lowers the cost of production.
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 610
2
4
6
8
10
12
Inflation adj 3.2%cost/unit
Inflation however ensures the appearance of increased revenue while providing bankers unearned profits (red)
However, lower cost of production often results in lower revenue. Thus, to increase revenue a manufacture either has to increase sales or add more features to maintain revenue.
■ Sale price ■ Inflated Sale price
Example – Ford Mustang
1965 Features
• Convertible
• 170 CID /101 HP 6 cylinder engine
• Drum brakes
• Bucket Seats with lap belt restraint
• No air conditioner
• AM Radio
$2,557
Example – Ford Mustang
2007 Features
• Convertible
• 4.0 L /210 HP 6 cylinder engine SOHC
• Ventilated disc brakes
• Bucket Seats with Air Bags
• Air conditioner
• 120W Stereo / iPod input
$31,700
The Lawful Money Cost of a Ford Mustang has Remained Constant
1965 =
U.S. Silver Certificate
($) 2,557
$31,700
Fed. Res. Bank Note
=
($) 2,557
=
($)2,557
=2007
It’s only inflation that has given the appearance that the sales price and Ford’s revenues have been increasing.
Myth 4: Gold and silver are to heavy to transport in a global payment system • If this were true then:
• Kodak and Fuji should have had their factories located closer to silver mines in Mexico and Peru.
• iPhone would be made in Mexico or Peru.• There would be no need for net-30 terms when using
electronic fiat-currencies.
• The reality is gold and silver are transported all over the world for uses is medical, automotive and consumer electronic devices without a problem or complaint about being to heavy to transport.
Myth 5: Inflation benefits debtors and harms lenders
• The reality is:• Inflation benefits lenders (the fiat
currency creators), • Always hurts depositors; and• Often hurts debtors (borrowers).
Where does this leave us?• IN AN ECONOMIC AND CONSTITUTIONAL
MESS
History shows us the solution!
• 1786 – Paper Money(Art. of Confederation period)
Blood running in the streets. Mobs of rioters and demonstrators threatening banks and legislators. Looting of shop and home. Credit ruined. Strikes and unemployment. Trade and distribution paralyzed. Shortages of food. Bankruptcies everywhere. Court dockets overloaded. Kidnappings for heavy ransom. Sexual perversion, drunkenness, lawlessness rampant.America, 1786: George Washington to James Madison
• 1791 – Coin Money(Constitutional Law reigns)
Tranquility reigns among the people with that disposition towards the general government which is likely to preserve it. Our public credit [with its foundation on solid money] stands on high ground which three years ago it would have been considered as a species of madness to have foretold.July 20, 1791, George Washington to David Humphreys
“If anyone had predicted that our economic and social ills could have been solved by simply making nothing but gold and silver coin our money, he would have been call crazy” paraphrase George Washington taken from MOMS 7th Edition pg. 60
Get rid of P
aper Money
What should you do?
1. Don’t Panic!• Prepare yourselves
• Educate yourself & others
• Practice discipline
2. Buy a farm• Buy 90-days worth of food
• Buy livestock (Chickens, goats, lambs and/or cows)
• Buy a generator and fuel
3. Hold money wisely• Only keep 30-days worth of
cash in banks
• Keep 90-days worth of cash at home
• Buy gold and silver coins with the remainder
4. Know your neighbors• Know their strengths &
weaknesses• Help them when they need
help and don’t be bashful to ask for help
5. Arm yourselves• Get training not just a CHL• Practice often• Buy ammunition
6. Take a First Aid Class• Learn First-aid & CPR• Practice, practice, practice
What should we [collectively] do?1. Get our State to exercise its Sovereign duty
under Art. I, Sec. 10 of the U.S. Constitution • Make Gold and Silver Coin a tender in payment of debts.• Enact fully enforceable gold clause contracts laws that will bar
the judiciary from substituting a paper-tender as fulfillment.
2. Implement a dual monetary system• Price goods and services throughout the state in both Federal
Reserve note (FRN)$ and Lawful Money $.• Use the European model to transition all prices, taxes, fines and
other debts to Lawful Money $ units over 24 – 36 months.
3. Implement Lawful Money State Banks• All deposits and interest are paid in Lawful Money silver or gold.
• Bank owners are personally liable for their bank’s failure
Article I Section 10, Clause 1No State shall … make any Thing but gold and silver coin a Tender in Payments of Debts.
More Information
• Presentations & supporting docs• www.npn.net• www.usbor.org
• Firearms and field medical training• www.criticaldefensegroup.com
• Acquire Gold or Silver• www.dillongage.com
• First aid & CPR• www.redcross.org
The End
The Lifecycle of Civilizations• 1. From bondage to spiritual faith;
• 2. From spiritual faith to great courage;
• 3. From courage to liberty;
• 4. From liberty to abundance;
• 5. From abundance to complacency;
• 6. From complacency to apathy;
• 7. From apathy to dependence;
• 8. From dependence back into bondage
We are here!
Company Symbol LT debt LT debt/cap. Total debt/EBITDAActavis ACT $42.7 36.9 9.4Apple AAPL $40.1 23.2 0.6AT&T T $92.2 49.2 3.4Comcast CMCSA $42.95 42.6 2Duke Energy DUK $37.2 43.8 5General Electric GE $190.4 50.7 14.9Int’l Bus. Machines IBM $34.3 67.1 1.7Kinder Morgan KMI $41.8 51.9 6.9Medtronic MDT $33.8 37.7 6.2Oracle ORCL $30.3 37.5 1.9Verizon VZ $109.3 87.8 3.1Wal-Mart WMT $38.9 33 1.4
S&P 500 companies with the most long-term debt
Source http://www.cnbc.com/2015/06/04/12-big-companies-heap-on-the-most-debt.html
Key:LT: Long TermEBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization
Source: http://americasmarkets.usatoday.com/2015/03/23/10-companies-buy-up-their-own-stock/
Bottom Line: The Stock Markets are manipulated
• Market Manipulation Still Ignored by Mainstream Media by the Curmudgeon and Victor Sperandeo http://www.fiendbear.com/Curmudgeon62.htm
• Feds loan money at near zero interest to Fortune 500 to by their own stock to prop up markets. Victor Sperandeo, July 13, 2015
What happens when Constitutional monetary standards are forsaken?1. Citizens are unknowingly defrauded.
2. Government becomes tyrannical.
3. A massive redistribution of wealth occurs.
