C:\fakepath\everything that you never wanted to know

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by Ralphh Joseph Philippii

ii

TITLE PAGE

PUBLISHER:

PROSPERITY INTERNATIONAL CORPORATION, LIMITED

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610 NATHAN ROAD, KOWLOON, HONG KONG

PH.: +852 2132 9661 OR +86 898 6857 2551

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CONTACT: RALPH JOSEPH PHILIPPI, Director, and Author

TITLE: “EVERYTHING THAT YOU NEVER WANTED TO KNOW ABOUT THE INFAMOUS BANK DEBENTURE PRIVATE PLACEMENT TRADING PROGRAMS (PPP) AND MUCH MORE”

FIRST PUBLISHED: 26 July 2010

RELEASE DATE: 9 August 2010

ISBN 978-988-19313-1-3

All rights are reserved. No part of this Book can be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission from RALPH

JOSEPH PHILIPPI, the Author, except in the case of brief quotations embodied in critical articles and reviews.

Please refer all pertinent questions, or comments, to the Author. The Author is responsible for the contents of this Book.

PRINTED IN HONG KONG by, PROSPERITY INTERNATIONAL CORPORATION, LIMITED.

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THIS Book consists of 272 pages, as a HARD BOUND BOOK, IN ITS ORIGINAL FORM, BUT IT IS

ALSO BEING MADE AVAILABLE IN AN ELECTRONICALLY TRANSMITTABLE VERSION.

This Book IS “NOT INTENDED TO BE FOR SALE”.

THIS BOOK IS INTENDED TO “HELP PEOPLE”, and it will be given “FREE-OF-CHARGE” to anyone who desires to have an original of this Book in the electronically transmittable version only. Hard Bound Books are available, at our costs of printing, binding, and shipping.

The picture on the front cover is titled “The Wishing Lamp”, from STOCK.EXCHNG. Refer to the “Appreciation & Acknowledgement” Section of this Book for further information.

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vi

“Have patience with all things,

but chiefly have patience with yourself. Do not lose courage in considering your own imperfections

but instantly set about remedying them? Every day begin the task anew.”

-- Saint Francis de Sales --

vii

EDICATION

This Book is dedicated to all of you, whom have tried, and lost, and probably, a whole lot more than

mere money, over your quest of trying to win at the PPP Game.

I have known of many, some personally, whom have lost everything, including their business, family, home, and even their self-esteem, over their personal quest of attempting to win at the PPP Game.

It is said “Knowledge is Power”, which is what I certainly do hope that this Book will bring to all of you.

It is extremely difficult, if not impossible, to play a game that you do not know the rules to. This would be like me attempting to win at playing

Mahjong, a real impossibility. Therefore, I do not even attempt to play that game, not even for fun, as it is often said.

May your God, by whichever name you choose to call that Entity by, or any other Power of the Universe that you may believe in, be with each and every one of you, in all of your quests, especially in your quest of PPP.

Believe me, you are going to need all of the help that you can obtain, from everywhere and anywhere possible, if you are intent on playing the PPP Game. Good Luck to all of you, whom decide on taking the course, of

either, staying in, or entering, the PPP Game. The basic rules are in here.

May Peace, Prosperity, and the Powers of Enlightenment, be with all,

Ralph Joseph Philippi Author

D

viii

“All right Mister, let me tell you what winning

means? You're willing to go longer, work harder, and give more than anyone else.”

-- Vince Lombardi --

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x

ROAD LESS TRAVELED

Two roads diverged in a yellow wood

And sorry I could not travel both And be one traveler, long I stood

And looked down one as far as I could To where it bent in the undergrowth

Then took the other as just as fair

And having perhaps the better claim Because it was grassy and wanted wear

Through as for that, the passing there Had worn them really about the same

And both that morning equally lay In leaves, no step had trodden black Oh, I kept the first for another day!

Yet, knowing how way leads onto way I doubted if I should ever come back

I shall be telling this with a sigh Somewhere ages and ages hence Two roads diverged in a wood

And I took the one less traveled by And that has made all the difference

-- Robert Lee Frost --

xi

REFACE

As you begin to read through his Book, you will see that you are being given a whole lot of background information, based upon fact and history, which is boring to read, but important for you to understand, even if it is just for your general understanding and knowledge, for it will serve you well, in your everyday life, including those of you that are construction, factory, or officer, worker. This information will serve you well. In most of my other books, I have refrained from using as many big words, and words that are only familiar to the professionals, as I possibly can, because when you go past a word that you do not understand, that is where boredom enters, and your learning stops. Unfortunately, in this Book, I must use some these types of words that you may not be familiar with, therefore, I strongly suggest that you keep a dictionary beside you, as you go over the information inside of this Book. You, even, may want to look us some of the words, and phrases, used, on the internet, in a financial, or law, dictionary. This Book will not be an easy book for you to go through, and understand everything that you have read, your first time through, because I am assembling the parts of a puzzle for you, piece-by-piece. Therefore, you may have to go through this material several times, before you are able to see the entire picture, clearly. However, I can assure you that the entire picture is being presented in this Book, with just a few details being intentionally left out, which are the ones that do not concern you, because there are different levels to this Game, commonly referred to as the international and national financial systems. Many of which are not important for you to know, or understand, and, much better that you do not. I have not left out any of the important information, which you do need to assimilate (absorb) and understand, for you to gain a proper knowledge of this field. In addition, be ready for some big surprises, as you go through this information, and, some aspects that you are going to find very difficult to believe, also, but all of the information in the Book is based upon fact, not fiction. It is, as it is, and, you are going to come to know, exactly as it actually is. Much of the information within this Book is taken from my set of 8 books, entitled, “The National Prosperity Plan”, soon to be on line, the basics herein, are the same basic information as is presented in the first part of this Book, which is fully compatible with, and implemental within, the scope of System 2000, and, in compliance with all applicable, international rules, regulations, and laws.

P

xii

"The reason most people never reach their goals is that they don't define them, learn about them,

or even seriously consider them as believable or achievable. Winners can tell you where they are going,

what they plan to do along the way, and who will be sharing the adventure with them."

-- Denis Waitley --

xiii

NTRODUCTION

I would like to do some clarification to begin with, because as you start reading through this Book, you may get the initial impression that this Book is just too complicated and/or too complex for you to be able to understand and digest most of it. So, as I said before, keep your dictionary close at hand, and use it, on every word that you do not completely understand, please do look those up, every time that you come across one of these. Then, just take a few general notes, jotting down the page numbers of the notes that you take. Slowly, but surely, a clear picture will start to develop, of the complex system that this Book is explaining to you, in the simplest terms available. It is this basic information that will develop the foundation for the advanced information that will be developed towards the end. It is not necessary for you to remember all of the historical information given to you in the first Eight Chapters, and part of the Ninth Chapter, of this Book. You can always go back to that information, as you need to, or, when you have not gotten a clear picture of how the present system works, and why. You will need to understand the historical aspects of our present financial system, to be able to fully understand how it actually works, and why, because that is, where the benefit to you will come from. You will not only come to know and understand the rules of this Game, but the “how” and “why” they came in to existence, which will form your operational foundation. Specific rules may change from time to time, but the underlying principles will never change, until The System does, which will not be up to you or me to do, even though it will have to be changed some day, because what we presently have is not sustainable, but so be it, for now. It will have to be changed, when the time is right, not before. The emphasis of this Book is for you to be able to gain an understanding of what we presently have, and how to operate within its structure. Nothing more, and certainly nothing less, along with a certain perspective towards international law, is what will be presented to you in this Book.

Enjoy !!!

I

xiv

“Ever notice that people never say

‘It's only a Game’ when they're Winning?”

-- Ivern Ball --

xv

ABLE OF CONTENTS

TITLE PAGE ................................................................................................... ii

DISCLAIMER ................................................................................................. v

DEDICATION ................................................................................................ vii

APPRECIATION & ACKNOWLEDGEMENT ............................................................ ix

PREFACE ..................................................................................................... xi

INTRODUCTION ........................................................................................... xiii

TABLE OF CONTENTS ................................................................................... xv

CHAPTER 1 - THE HISTORY OF BANKING ........................................................... 1

EARLIEST BANKS ........................................................................................ 1

RELIGIOUS RESTRICTIONS ON INTEREST ...................................................... 2

DURING LATE ANTIQUITY AND MIDDLE AGES ................................................. 3

WESTERN BANKING HISTORY ....................................................................... 6

CAPITALISM ............................................................................................... 6

GLOBAL BANKING ....................................................................................... 6

MAJOR EVENTS IN BANKING HISTORY ........................................................... 8

OLDEST PRIVATE BANKS ............................................................................. 9

OLDEST NATIONAL BANKS ......................................................................... 10

UNITED STATES BANKING ......................................................................... 10

CHAPTER 2 - THE HISTORY OF MONEY ............................................................ 13

BARTER ................................................................................................... 13

COMMODITY MONEY ................................................................................. 13

REPRESENTATIVE MONEY .......................................................................... 14

WAREHOUSE RECEIPTS ............................................................................. 15

TALLIES .................................................................................................. 16

TRADE BILLS OF EXCHANGE ...................................................................... 17

T

xvi

GOLDSMITH BANKERS ............................................................................... 18

BANKNOTES ............................................................................................ 19

DEMAND DEPOSITS .................................................................................. 20

GOLD-BACKED BANKNOTES ....................................................................... 20

FIAT MONEY ............................................................................................ 21

CHAPTER 3 - THE HISTORY OF ACCOUNTING ................................................... 23

EARLY HISTORY ....................................................................................... 23

LUCA PACIOLI AND THE BIRTH OF MODERN ACCOUNTANCY ........................... 23

POST-PACIOLI .......................................................................................... 24

ACCOUNTANCY QUALIFICATIONS AND REGULATION ..................................... 25

THE "BIG FOUR" ACCOUNTANCY FIRMS ....................................................... 26

CHAPTER 4 - BASIC ACCOUNTING .................................................................. 29

CHAPTER 5 - DEBITS AND CREDITS ............................................................... 35

INTRODUCTION ........................................................................................ 35

ORIGIN OF THE TERMS DEBIT AND CREDIT .................................................. 37

PRINCIPLES OR RULES OF DEBIT AND CREDIT ............................................. 40

JOURNAL ENTRY ....................................................................................... 40

CHAPTER 6 - MONEY BASICS ......................................................................... 43

THE THREE TYPES OF MONEY ..................................................................... 43

FIAT MONEY AS A TAX CREDIT ................................................................... 44

BASE MONEY ........................................................................................... 44

BANK MONEY ........................................................................................... 44

CONTROLLING THE PRICE OF RESERVES ..................................................... 45

CENTRAL BANKS REACTIVE ROLE ............................................................... 45

LIMITING BANK LENDING .......................................................................... 46

LIMITING MONEY SUPPLY GROWTH ............................................................. 46

CHAPTER 7 - THE MODERN BANKING SYSTEM ................................................. 49

xvii

TYPE 1. MERCHANT BANKS ....................................................................... 49

TYPE 2. INVESTMENT BANKS ..................................................................... 50

TYPE 3. COMMERCIAL BANKS .................................................................... 50

TYPE 4. GIRO BANKS ............................................................................... 51

CENTRAL BANKS AND THE BANK FOR INTERNATIONAL SETTLEMENTS (BIS) ..... 51

FUNCTIONS OF CENTRAL BANKS ................................................................ 51

THE BANK FOR INTERNATIONAL SETTLEMENTS (BIS) .................................... 52

FRACTIONAL RESERVE BANKING ................................................................ 53

HOW BANKS MEET RESERVE REQUIREMENTS ............................................... 54

HOW THE FED MANAGES RESERVES ............................................................ 54

SIZE AND COMPOSITION OF THE MONETARY BASE ....................................... 54

LINKAGE BETWEEN RESERVES AND MONEY SUPPLY ...................................... 55

HOW IT ALL WORKS .................................................................................. 55

NOW, HERE IS WHERE THE REAL RUB COMES IN TO PLAY .............................. 56

ONLY ONE MORE DEBT ISSUE, TO ADDRESS ................................................ 59

A UNIQUE SUMMARY OF THE FRACTIONAL RESERVE BANKING SYSTEM ........... 61

CHAPTER 8 - THE IMF AND THE WORLD BANK ................................................. 71

INTERNATIONAL MONETARY FUND .............................................................. 71

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

(THE WORLD BANK) .................................................................................. 73

WORLD BANK GROUP ................................................................................ 74

WORLD BANK GROUP AGENCIES ................................................................ 76

MONEY SUPPLY - M0, M1, M2, M3, M4 ......................................................... 79

CHAPTER 9 – BANK DEBENTURE TRADING PROGRAMS ...................................... 83

AN INTRODUCTION TO BANK DEBENTURE TRADING PROGRAMS (PPP) ............. 83

HISTORY AND DEVELOPMENT OF BANK INSTRUMENTS .................................. 86

PRESENT TIME VALUE OF FUTURE MONEY, OR FUTURE DEBT. ......................... 93

xviii

THE CALCULATIONS .................................................................................. 93

TECHNICAL DETAILS .............................................................................. 94

RISK FREE CAPITAL ACCUMULATION ........................................................... 99

A WORD OF CAUTION ............................................................................. 115

CHAPTER 10 - PUTTING IT ALL TOGETHER .................................................... 117

FIRST THINGS FIRST .............................................................................. 117

WHAT YOU HAVE LEARNED ...................................................................... 117

YOUR ACTION PLAN ................................................................................ 127

CHAPTER 11 - AND MUCH MORE .................................................................. 145

OKAY, SO YOU WANT TO PLAY THE PPP GAME ............................................... 145

PRESENTMENTS ......................................................................................... 145

PRESENTMENTS INDEX ............................................................................ 146

PART I - BACKGROUND, CONTEXT, AND UNDERPINNINGS ............................ 146

WHENEVER YOU RECEIVE A PRESENTMENT OF ANY KIND ............................. 146

PART II - ATTITUDES AND ACTIONS .......................................................... 160

EVERY TIME YOU EVER MAIL ANYTHING, PUT POSTAGE STAMPS ON THE ENVELOPE 164

IN COURT ........................................................................................... 172

PART III - CIVIL AND CRIMINAL CHARGES ................................................. 184

PART IV - REDEMPTION IN COURT ............................................................ 205

PART V - COURT BOND ............................................................................ 217

PART VI - POSTAL POWER ........................................................................ 222

PART VII - ESOTERIC KNOWLEDGE ........................................................... 228

THE CONCLUSION ...................................................................................... 245

PROJECT FUNDING ................................................................................. 245

A SPECIAL REQUEST / EXCHANGE FACTOR .................................................... 247

HOW TO PRINT THIS BOOK ........................................................................ 251

~ LIGHT ~ A CHINESE PROVERB .................................................................... 252

xix

“Do your little bit of good where you are, it's those little bits of good put together

that overwhelm the world.”

-- Bishop Desmond Tutu --

xx

“All life is an experiment.

The more experiments you make the better.”

-- Ralph Waldo Emerson --

HAPTER 1 - THE HISTORY OF BANKING

Earliest Banks The first banks were probably the religious temples of the ancient world, and were probably established sometime during the third millennium B.C. Banks in effect, predated the invention of money. Deposits initially consisted of grain and later other goods to include cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy to carry compressed plates. Temples and palaces were the safest places to store gold as they were constantly attended, maintained, and well built. As sacred places, temples presented an extra deterrent to would-be thieves. There are to be in existence records of loans from the 18th century BC in Babylon that were made by temple priests/monks to merchants. By the time of Hammurabi's Code, banking was well enough developed to justify the promulgation of laws governing banking operations.[1] Ancient Greece holds further evidence of banking. Greek temples, as well as private and civic entities, conducted financial transactions such as loans, deposits, currency exchange, and validation of coinage. There is evidence as well of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could "cash" the note in another city, saving the client the danger of carting coinage with him on his journey. Pythius, who operated as a merchant banker throughout Asia Minor at the beginning of the 5th century B.C., is the first individual banker of whom we have records. Many of the early bankers in Greek city-states were “metics” or foreign residents. Around 371 B.C., Pasion, a slave, became the wealthiest and most famous Greek banker, gaining his freedom and Athenian citizenship in the process. The fourth century B.C. saw an increased use of credit-based banking in the Mediterranean world. In Egypt, from early times, grain had been used as a form of money in addition to precious metals, and state granaries functioned as banks. When Egypt fell under the rule of a Greek dynasty, the Ptolemies (330-323 B.C.), the numerous scattered

C

2

government granaries were transformed into a network of grain banks, centralized in Alexandria where the main accounts from all the state granary banks were recorded. This banking network functioned as a trade credit system in which payments were affected by transfer from one account to another without money passing between individuals. In the late third century B.C., the barren Aegean island of Delos, known for its magnificent harbor and famous temple of Apollo, became a prominent banking center. As in Egypt, cash transactions were replaced by real credit receipts and payments were made based on simple instructions with accounts kept for each client. With the defeat of its main rivals, Carthage and Corinth, by the Romans, the importance of Delos increased. Consequently, it was natural that the bank of Delos should become the model most closely imitated by the banks of Rome. Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive. The development of Roman banks was limited, however, by the Roman preference for cash transactions. During the reign of the Roman emperor Gallienus (260-268 CE), there was a temporary breakdown of the Roman banking system after the banks rejected the flakes of copper produced by his mints. With the ascent of Christianity, banking became subject to additional restrictions, as the charging of interest was seen as immoral. After the fall of Rome, banking was abandoned in Western Europe, and did not revive until the time of the crusades. Religious restrictions on interest Most early religious systems in the ancient Near East, and the secular codes arising from them, did not forbid usury. These societies regarded inanimate matter as alive, like plants, animals and people, and capable of reproducing itself. Hence if you lent 'food money', or monetary tokens of any kind, it was legitimate to charge interest.[2] Food money in the shape of olives, dates, seeds or animals was lent out as early as 5000 BC, if not earlier. Among the Mesopotamians, Hittites, Phoenicians and Egyptians, interest was legal and often fixed by the state. However, the Jews took a different view of the matter.[3]

3

The Torah and later sections of the Hebrew Bible criticize interest taking, but interpretations of the Biblical prohibition vary. One common understanding is that Jews are forbidden to charge interest upon loans made to other Jews, but allowed to charge interest on transactions with non-Jews, or Gentiles. However, the Hebrew Bible itself gives numerous examples where this provision was evaded.[4] Johnson holds that the Hebrew Bible treats the lending as philanthropy in a poor community whose aim was collective survival, but which is not obliged to be charitable towards outsiders. During Late Antiquity and Middle Ages Jews were ostracized from most professions by local rulers, the Church and the guilds included so they were pushed into marginal occupations considered socially inferior, such as tax and rent collecting or money lending, while the provision of financial services was increasingly being demanded by the expansion of European trade and commerce. Medieval trade fairs, such as the one in Hamburg, contributed to the growth of banking in a curious way: moneychangers issued documents redeemable at other fairs, in exchange for hard currency. These documents could be cashed at another fair in a different country or at a future fair in the same location. If redeemable at a future date, they would often be discounted by an amount comparable to a rate of interest. Eventually, these documents evolved into bills of exchange, which could be redeemed at any office of the issuing banker. These bills made it possible to transfer large sums of money without the complications of hauling large chests of gold and hiring armed guards to protect the gold from thieves. Beginning around 1100, the need to transfer large sums of money to finance the Crusades stimulated the reemergence of banking in Western Europe. In 1156, in Genoa, occurred the earliest known foreign exchange contract. Two brothers borrowed 115 Genoese pounds and agreed to reimburse the bank's agents in Constantinople the sum of 460 bezants one month after their arrival in that city. In the following century, the use of such contracts grew rapidly, particularly since profits from time differences were seen as not infringing canon laws against usury. In 1162,

4

Henry II levied a tax to support the crusades, the first of a series of taxes levied by Henry over the years with the same objective. The Templars, and Hospitallers, acted as Henry's bankers in the Holy Land. The Templars' wide flung, large land holdings across Europe also emerged in the 1100 - 1300 time frame as the beginning of Europe’s-wide banking, as their practice was to take in local currency, for which a demand note would be given that would be good at any of their castles across Europe, allowing movement of money without the usual risk of robbery while traveling. By 1200, there was a large and growing volume of long-distance and international trade in a number of agricultural commodities and manufactured goods in Western Europe, to include corn, wool, finished cloth, wine, salt, wax and tallow, leather and leather goods, weapons and armor. Individual trading concerns and intermix blends often specialized in one or more of these, as did individual producers, because a large amount of capital was required to establish, e.g., a cloth manufacturing business, only the largest firms could diversify. As a result, businesses, and clusters of businesses, tended to market narrow product lines. Big firms like the Medici bank could and did specialize, the Medici’s manufacturing division had a number of manufacturing facilities producing many different types of cloth. Perhaps the best example of product policy comes from the Cistercian monastic order, where individual monasteries and granges tended to specialize in particular agricultural products or types of industrial production, usually with an eye to meeting particular local or regional market needs. Ironically, the Papal bankers were the most successful of the Western world, though often goods taken in pawn were substituted for interest in the institution termed the Monte di Pietà. When Pope John XXII (born Jacques d'Euse (1249 - 1334) was crowned in Lyon in 1316, he set up residency in Avignon. Civil war in Florence between the rival Guelph and Ghibelline factions resulted in victory for a group of Guelph merchant families in the city. They took over papal banking monopolies from rivals in nearby Siena and became tax collectors for the Pope throughout Europe. In 1306, Philip IV expelled Jews from France. In 1307 Philips had the Knights Templar arrested and had gotten hold of their wealth, which had come to serve as the unofficial treasury of France. In 1311, he

5

expelled Italian bankers and collected their outstanding credit. In 1327, Avignon had 43 branches of Italian banking houses. In 1347, Edward III of England defaulted on loans. Later there was the bankruptcy of the Peruzzi (1374) and Bardi (1353). The accompanying growth of Italian banking in France was the start of the Lombard moneychangers in Europe, who moved from city to city along the busy pilgrim routes important for trade. Key cities in this period were Cahors, the birthplace of Pope John XXII, and Figeac. Perhaps it was because of these origins that the term Lombard is synonymous with Cahorsin in medieval Europe, and means 'pawnbroker'. Banca Monte dei Paschi di Siena SPA (MPS) Italy is the oldest surviving bank in the world. After 1400, political forces turned against the methods of the Italian free enterprise bankers. In 1401, King Martin I of Aragon expelled them. In 1403, Henry IV of England prohibited them from taking profits in any way or means in his kingdom. In 1409, Flanders imprisoned and then expelled Genoese bankers. In 1410, all Italian merchants were expelled from Paris. In 1401, the Bank of Barcelona was founded. In 1407, the Bank of St George was founded in Genoa. This bank dominated business in the Mediterranean. In 1403, charging interest on loans was ruled legal in Florence despite the traditional Christian prohibition of usury. Italian banks such as the Lombards, who had agents in the main economic centers of Europe, had been making charges for loans. The lawyer and theologian Lorenzo di Antonio Ridolfi won a case that legalized interest payments by the Florentine government. In 1413, Giovanni di Bicci de’Medici was appointed banker to the pope. In 1440, Gutenberg invents the modern printing press although Europe already knew of the use of paper money in China. The printing press design was subsequently modified, by Leonardo da Vinci among others, for use in minting coins nearly two centuries before printed banknotes were produced in the West. By the late 1390’s silver was short all over Europe, except in Venice. The silver mines at Kutná Hora had begun to decline in the 1370s, and finally closed down after being sacked by King Sigismund in 1422. By 1450, almost all of the mints of northwest Europe had closed down for lack of silver. The last moneychanger in the major French port of Dieppe went out of business in 1446. In 1455, the Turks overran the Serbian silver mines, and in 1460 controlled the last Bosnian mine. The last Venetian silver grosso was minted in 1462. Several Venetian banks failed, as well

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as, the Strozzi bank of Florence, the second largest in the city. Even the smallest of small change became scarce. Western Banking History Modern Western economic and financial history is usually traced back to the coffee houses of London. The London Royal Exchange was established in 1565. At that time, moneychangers were already called bankers, though the term "bank" usually referred to their offices, and did not carry the meaning it does today. There was also a hierarchical order among professionals, at the top were the bankers who did business with heads of state, next were the city exchanges, and at the bottom were the pawnshops or "Lombards”. Some European cities today have a Lombard street where the pawnshop was located. It was after the siege of Antwerp that trade moved to Amsterdam. In 1609 the Amsterdamsche Wisselbank (Amsterdam Exchange Bank) was founded which made Amsterdam the financial centre of the world until the Industrial Revolution. Banking offices were usually located near centers of trade, and in the late 17th century, the largest centers for commerce were the ports of Amsterdam, London, and Hamburg. Individuals could participate in the lucrative East India trade by purchasing bills of credit from these banks, but the price they received for commodities was dependent on the ships returning (which often didn't happen on time) and on the cargo they carried (which often wasn't according to plan). The commodities market was very volatile for this reason, and because of the many wars that led to cargo seizures and loss of ships. Capitalism Around the time of Adam Smith (1776), there was a massive growth in the banking industry. Within the new system of ownership and investment, the State's intervention in economic affairs was reduced and barriers to competition were removed. Global Banking In the 1970s, a number of smaller crashes tied to the policies put in place following the depression, resulted in deregulation and privatization of

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government-owned enterprises in the 1980s, indicating that governments of industrial countries around the world found private-sector solutions to problems of economic growth and development preferable to state-operated, semi-socialist programs. This spurred a trend that was already prevalent in the business sector, large companies becoming global and dealing with customers, suppliers, manufacturing, and information centers all over the world. Global banking and capital market services proliferated during the 1980s and 1990s as a result of a great increase in demand from companies, governments, and financial institutions, but also because financial market conditions were buoyant and, on the whole, bullish. Interest rates in the United States declined from about 15% for a two-year U.S. Treasury note to about 5% during that 20-year period, and financial assets grew then at a rate approximately twice the rate of the world economy. Such a growth rate would have been lower, in the last twenty years, were it not for the profound effects of the internationalization of financial markets especially U.S. Foreign investments, particularly from Japan, who not only provided the funds to corporations in the U.S., but also helped finance the federal government, thus, transforming the U.S. stock market by far into the largest in the world. Nevertheless, in recent years, the dominance of the U.S. financial markets has been disappearing and there has been an increase interest in foreign stocks. The extraordinary growth of the foreign financial markets results from both large increases in the savings category in foreign countries, such as Japan, and, especially, the deregulation of foreign financial markets, which has enabled them to expand their activities. Thus, American corporations and banks have started seeking investment opportunities abroad, prompting the development in the U.S. of mutual funds specializing in the trading in foreign stock markets. Such growing internationalization and opportunity in financial services has entirely changed the competitive landscape, as now many banks have demonstrated a preference for the “universal banking” model so prevalent in Europe. Universal banks are free to engage in all forms of financial services, make investments in client companies, and function as much as possible as a “one-stop” supplier of both retail and wholesale financial

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services. Many such possible alignments could be accomplished only by large acquisitions, and there were many of them. By the end of 2000, a year in which a record level of financial service transactions occurred with a market value of $10.5 trillion, the top ten banks commanded a market share of more than 80% and the top 5, 55%. Of the top ten banks ranked by market share, seven were large universal-type banks (three American and four European), and the remaining three were large U.S. investment banks among them accounted for a 33% market share. This growth and opportunity, led to an unexpected outcome, entrance into the market of other financial intermediaries: non-banks. Large corporate players were beginning to find their way into the financial service community, offering competition to established banks. The main services offered included insurances, pension, mutual, money market and hedge funds, loans and credits and securities. By the end of 2001, the market capitalization of the world’s 15 largest financial service providers included four non-banks. In recent years, the process of financial innovation has advanced enormously, increasing the importance and profitability of non-bank finance. Such profitability, previously, had been restricted to the non-banking industry, which has prompted the Office of the Comptroller of the Currency (OCC), to encourage banks to explore other financial instruments, by diversifying a banks' business, as well as, in general improving the economic health of the bank. Hence, as the distinction of financial instruments are being explored and adopted by the banking and non-banking industries, the distinction between different financial institutions is gradually vanishing. Major events in banking history Florentine banking — The Medicis and Pittis among others. Knights Templar- The earliest Euro wide /Mideast banking system during 1100-1300. Banknotes — Introduction of paper money

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1602 - First joint-stock company, the Dutch East India Company founded. 1720 - The South Sea Bubble and John Law's Mississippi Scheme, which caused a European financial crisis and forced many bankers out of business. 1781 - The Bank of North America was found by the Continental Congress. 1800 - Rothschild family founds Euro wide banking. 1803 - The Louisiana Purchase was the largest land deal in history. 1929 - Stock market crash, which triggered the Great Depression. 1989 - Junk bond scandal and charges against Michael Milken resulted in new legislation for investment banks. 2001 - Enron bankruptcy, causing new legislation for annual reporting. 2007 - The International Financial Crisis, triggered by the meltdown in Sub-Prime Special Investment Vehicles (SIVs), or, so we were told. Oldest Private Banks Monte dei Paschi di Siena 1472 – At present is the oldest surviving bank in the world. Founded in 1472 by the Magistrate of the city and state of Siena, Italy. C. Hoare & Co founded 1672. Barclays, which was founded by John Freame and Thomas Gould in 1690[5] and renamed to Barclays by Freame's son-in-law, James Barclay, in 1736. Rothschild family 1700 - present. Hope & Co., founded in 1762. For French banking history, read the History of banks in France (in English

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or in French) on the FBF website. Oldest National Banks Bank of Sweden - the rise of the national banks, began operations in 1668. Bank of England - the evolution of modern central banking policies, established in 1694. The Pennsylvania Land Bank was founded in 1723 and by receiving the support of Benjamin Franklin, who wrote, "Modest Enquiry into the Nature and Necessity of a Paper Currency" in 1729. Imperial Bank of Persia (Iran) - History of banking in the Middle East. United States Banking Bank of America - The invention of centralized check and payment processing technology References [1] The word "bank" reflects the origins of banking in temples. According to the famous passage from the New Testament, when Christ drove the moneychangers out of the temple in Jerusalem, he overturned their tables. Matthew 21.12. In Greece, bankers were known as trapezitai, a name derived from the tables where they sat. Similarly, the English word bank comes from the Italian banca, for bench or counter. [2] Johnson cites Fritz E. Heichelcheim: An Ancient Economic History, 2 vols. (Trans. Leiden 1965), i.104-566 [3] Johnson, Paul: A History of the Jews (New York: HarperCollins Publishers, 1987) ISBN 0-06-091533-1. Pgs.172-173 [4] I Samuel 22:2, II Kings 4:1, Isaiah 50:1, Ezekiel 22:12, Nehemiah 5:7 and 12:13 [5] "Barclays - Our Beginnings". Retrieved on 2007-09-21.

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“Some of us will do our jobs well

and some will not, but we will all be judged by only one thing –

the result.”


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“The act of taking the first step

is what separates the winners from the losers”

-- Brian Tracy --

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HAPTER 2 - THE HISTORY OF MONEY

Money is an invention of the human mind. The creation of money is made possible because human beings have the capacity to accord value to symbols. Money is a symbol that represents the value of goods and services. The acceptance of any object as money – be it wampum, a gold coin, a paper currency note or a digital bank account balance – involves the consent of both the individual user and the community. Thus, all money has a psychological and a social, as well as, economic dimension. As human consciousness has evolved, the nature and function of money has evolved also. While a history of money may trace the origin and usage of different forms of money at different times and in different parts of the world, an evolutionary perspective on money traces the social and psychological changes in human attitude and collective behavior that made possible this historical development. Barter Before the invention of money, barter was the primary medium of exchange. An individual possessing a material object of value, such as a measure of grain, could directly exchange that object for another object perceived to have equivalent value, such as a small animal, a clay pot or a tool. The capacity to carry out transactions was severely limited since it depended on a coincidence of wants. The seller of food grain had to find a buyer who wanted to buy grain and who could offer in return something the seller wanted to buy. There was no common medium of exchange, into which both seller and buyer could convert their tradable commodities. There was no standard, which could be applied to measure the relative value of various goods and services. Commodity Money The first stage in the evolution of money was the acceptance of certain inherently valuable objects, such as metals, cows, goats, or food grains, as a common standard of measure and unit of exchange. It was relatively easy for people to accept any of these as money because each had

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inherent use value for every individual and, therefore, their wide acceptance by other people was assured. All metals were accepted because they could be readily converted into precious tools and weapons, such as knives, axes, spears, and spades. Gold and silver had secondary advantages, as they, were also easy to identify and visually attractive. Gold, silver, copper, including other usable materials, or desired objects, such as salt and peppercorns are categorized as commodity money, since they combine the attributes as both a usable commodity and a symbol. People accepted foods and metals as money because they were sure of their intrinsic value to themselves and others. The introduction of metal coins marked a step or bridge in the evolution from usable commodities to symbolic forms of money. Although metal had a use value of its own, coins were accepted in trade for their symbolic value as a medium and standard of measure for exchanging other goods and services to establish value rather than for the utilization of the metal they contained. The term commodity money is also applied to other objects of less obvious utility such as shells, beads and stones, whose utilitarian value was only decorative. This classification tends to blur an important distinction between money consisting of usable commodities and pure symbolic money. Representative Money Representative money was the next stage in the evolution of money involved a further transition from money as an object with inherent usefulness and value to money as a pure symbol of value. Representative money is symbolic money that is based on useful commodities. This category includes the warehouse receipts issued by the ancient Egyptian grain banks, the goldsmith receipts issued by England’s goldsmith bankers, bills of exchange based on tradable goods, and more recent forms of paper currency that were backed by and redeemable for gold or silver. The adoption of representative money represented a significant evolution in human consciousness.

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Psychologically, the individual had to transfer the sense of value from a usable material object to an abstract symbol. Socially, groups of people had to agree on the common usage of the same symbol. Warehouse Receipts Warehouse receipts became a very successful form of representative money in ancient Egypt during the reign of the Ptolemies around 330 BC. Farmers deposited their surplus food grains for safekeeping in royal or private warehouses and received in exchange written receipts for specific quantities of grain. The receipts were backed and redeemable for a usable commodity. Being much easier to carry, store and exchange than bags of grain, they were accepted in trade as a secure and more convenient form of payment, acting as a symbolic substitute for the quantities of food grain they represented. The warehouse receipt itself had no inherent value. It was only a symbol for something of value. The invention of representative money had a profound effect on the evolution of both money and society. It directly led to the creation of a new social organization, banking. The network of royal and private banks that were created during the reign of the Ptolemies constituted a national grain or giro-banking system. Grains were deposited in ‘banks’ for safekeeping. Warehouse receipts were accepted as form of symbolic money because they were fully ‘backed’ by the grains in the warehouse. More important but less obvious, the introduction of banking by the pharaohs made possible the creation of money. Until then new money could be grown as a crop, raised as an animal or discovered as metal in the earth. Now it could simply be created by writing a warehouse receipt. At first, these receipts were issued only when additional grain was deposited and cancelled whenever the grain was withdrawn from the warehouse. However, it required only a small step in imagination for the bankers to realize that they could also create new grain receipts on other occasions. If someone applied to the bank for financial assistance, the bank need not provide it in the form of grain. It could simply create and give to the borrower a new warehouse receipt that was indistinguishable from those issued when grain was deposited. Although the new receipts

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were not backed by addition deposits of grain, they were still backed by the total value of grain on deposit at the warehouse and, therefore, readily accepted in the market as a medium of exchange, so long as the public had trust and confidence in the overall financial strength of the grain bank. This stage marks a crucial transition from money as a thing to money as a symbol of trust. In the case of commodity money, trust was placed in the inherent value of the metal or grain, which constituted the form of payment. In the case of the warehouse receipt, trust was extended from the commodity to the social organization that held the grain and issued the receipts. This shift required a psychological willingness on the part of the individual to accept a symbol in place of a physical object and a social willingness on the part of the collective to evolve organizations and systems of account that could gain and hold the public trust. The invention of a new social organization was based on emergence of a new consciousness in society. These ancient giro banks went even further. They introduced standardized accounting methods and bank accounts for their depositors. Deposits could be recorded as numerical entries in their books of account. Large transfers of money from one account holder to another could be done without even exchanging warehouse receipts, simply by changing the account balances in the bank’s record books. The number in the record book became a symbolic form of representative money, an ancient forerunner of modern electronic forms of money. Tallies The acceptance of symbolic forms of money opened up vast new realms for human creativity. A symbol could be used to represent something of value that was available in physical storage somewhere else in ’’space’’, such as grain in the warehouse. It could also be used to represent something of value that would be available later in ‘’time’’, such as a promissory note or bill of exchange, a document ordering someone to pay a certain sum of money to another on a specific date or when certain conditions have been fulfilled. In the 12th Century, the English monarchy introduced an early version of the bill of exchange in the form of a notched piece of wood known as a tally stick. Tallies originally came into

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use at a time when paper was rare and costly, but their use persisted until the early 19th Century, even after paper forms of money had become prevalent. The notches were used to denote various amounts of taxes payable to the crown. Initially tallies were simply used as a form of receipt to the taxpayer at the time of rendering his dues. As the revenue department became more efficient, they began issuing tallies to denote a promise of the tax assessee, to make future tax payments at specified times during the year. Each tally consisted of a matching pair – one stick was given to the assessee at the time of assessment representing the amount of taxes to be paid later and the other held by the Treasury representing the amount of taxes be collected at a future date. The Treasury discovered that these tallies could also be used to create money. When the crown had exhausted its current resources, it could use the tally receipts representing future tax payments due to the crown as a form of payment to its own creditors, who in turn could either collect the tax revenue directly from those assessed or use the same tally to pay their own taxes to the government. The tallies could also be sold to other parties in exchange for gold or silver coin at a discount reflecting the length of time remaining until the taxes was due for payment. Thus, the tallies became an accepted medium of exchange for some types of transactions and an accepted medium for store of value. Like the giro banks before it, the Treasury soon realized that it could also issue tallies that were not ‘backed’ by any specific assessment of taxes. By doing so, the Treasury created new money that was backed by public trust and confidence in the monarchy rather than by specific revenue receipts. Trade Bills of Exchange Bills of Exchange became prevalent with the expansion of European trade toward the end of the Middle Ages. A flourishing Italian wholesale trade in cloth, woolen clothing, wine, tin, and other commodities was heavily dependent on credit for its rapid expansion. Goods were supplied to a buyer against a bill of exchange, which constituted the buyer’s promise to make payment at some specified future date. If the buyer was reputable or the bill was endorsed by a credible guarantor, the seller could then present the bill to a merchant banker and redeem it in money at a discounted value before it actually became due. These bills could also be used as a form of payment by the seller to make additional purchases

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from his own suppliers. Thus, the bills (an early form of credit) became both a medium of exchange and a medium for storage of value. Like the loans made by the Egyptian grain banks, this trade credit became a significant source for the creation of new money. In England, bills of exchange became an important form of credit and money during last quarter of the 18th century and the first quarter of the 19th century before banknotes, checks and cash credit lines were widely available. Goldsmith Bankers The highly successful ancient grain bank also served as a model for the emergence of the goldsmith bankers in 17th Century England. These were the early days of the mercantile revolution before the rise of the British Empire when merchant ships began plying the coastal seas laden with silks and spices from the orient and shrewd traders amassed huge hoards of gold in the bargain. Since no banks existed in England at the time, these entrepreneurs entrusted their wealth with the leading goldsmith of London, who already possessed stores of gold and private vaults within which to store it safely, and paid a fee for that service. In exchange for each deposit of precious metal, the goldsmiths issued paper receipts certifying the quantity and purity of the metal they held on deposit. Like the grain receipts, tallies and bills of exchange, the goldsmith receipts soon began to circulate as a safe and convenient form of money backed by gold and silver in the goldsmiths’ vaults. Knowing that goldsmiths were laden with gold, it was only natural that other traders in need of capital might approach them for loans, which the goldsmiths made to trustworthy parties out of their gold hoards in exchange for interest. Like the grain bankers, goldsmiths began issuing loans by creating additional paper gold receipts that were generally accepted in trade and were indistinguishable from the receipts issued to parties that deposited gold. Both represented a promise to redeem the receipt in exchange for a certain amount of metal. Since no one other than the goldsmith knew how much gold he held in store and how much was the value of his receipts held by the public, he was able to issue receipts for greater value than the gold he held. Gold deposits were relatively stable, often remaining with the goldsmith for years on end, so there was little risk of default so long as public trust in the goldsmith’s integrity and financial soundness was maintained.

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Thusly, the goldsmiths of London became the forerunners of British banking and prominent creators of new money. They created money based on public trust. Banknotes The history of money and banking are inseparably interlinked. The multiplication of money really took off when banks got into the business. Inspired by the success of the London goldsmiths, some of which became the forerunners of great English banks, banks began issuing paper notes quite properly termed ‘banknotes’ which circulated in the same way that government issued currency circulates today. In England, this practice continued up to 1694. Scottish banks continued issuing notes until 1850. In the USA, this practice continued through the 19th Century, where at one time there were more than 5000 different types of bank notes issued by various commercial banks in America. Only the notes issued by the largest, most creditworthy banks were widely accepted. The script of smaller, lesser-known institutions circulated locally. Farther from home, it was only accepted at a discounted rate, if it was accepted at all. The proliferation of types of money went hand in hand with a multiplication in the number of financial institutions. These banknotes were a form of representative money, which could be converted into gold or silver by application at the bank. Since banks issued notes far in excess of the gold and silver they kept on deposit, sudden loss of public confidence in a bank could precipitate mass redemption of banknotes and result in ‘’bankruptcy’’. The use of bank notes issued by private commercial banks as legal tender has gradually been replaced by the issuance of bank notes authorized and controlled by national governments. The Bank of England was granted sole rights for the issuance of banknotes in England after 1694. In the USA, the Federal Reserve Bank was granted similar rights after its establishment in 1913. Until recently, these government-authorized currencies were forms of representative money, since they were partially backed by gold or silver and convertible into metal under certain circumstances.

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Demand Deposits The primary business of the grain and goldsmith bankers was safe storage of savings. The primary business of the early merchant banks was promotion of trade. The new class of commercial banks made accepting deposits and issuing loans their principal activity. They lent the money they received on deposit. They created additional money in the form of new bank notes. They also created additional money in the form of demand deposits simply by making numerical entries in the ledgers of their account holders. The money they created was partially backed by gold, silver, or other assets and partially backed only by public trust in the institutions that created it. Gold-Backed Banknotes For most of us, the term gold standard is erroneously thought to refer to a time when currency notes were fully backed by and redeemable in an equivalent amount of gold. The British pound was the strongest, most stable currency of the 19th Century and often considered the closest equivalent to pure gold, yet at the height of the gold standard, there was only sufficient gold in the British treasury to redeem a small fraction of the currency then in circulation. In 1880, the US government’s gold stock was equivalent in value to only 16% of currency and demand deposits in commercial banks. By 1970, it was about 0.5%. The gold standard was only a system for exchange of value between national currencies, never an agreement to redeem all paper notes for gold. The classic gold standard prevailed during the period 1880 and 1913 when a core of leading trading nations agreed to adhere to a fixed gold price and continuous convertibility for their currencies. Gold was used to settle accounts between these nations. With the outbreak of World War I, Britain was forced to abandon the gold standard even for their international transactions. Other nations quickly followed suit. After a brief attempt to revive the gold standard during the 1920s, it was finally abandoned by Britain and other leading nations during the Great Depression. Prior to the abolition of the gold standard, the following words were printed on the face of every US dollar: “I promise to pay the bearer on

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demand, the sum of one dollar”, followed by the signature of the US Secretary of the Treasury. Other denominations carried similar pledges proportionate to the face value of each note. The currencies of other nations bore similar promises too. In earlier times, this promise signified that a bearer could redeem currency notes for their equivalent value in gold or silver. The US adopted a silver standard in 1785, meaning that the value of the US dollar represented a certain equivalent weight in silver, and could be redeemed in silver coins. However, even at its inception, the US Government was not required to maintain silver reserves sufficient to redeem all the notes that it issued. Through much of the 20th Century until 1971, the US dollar was ‘backed’ by gold, but from 1934, only foreign holders of the notes could exchange them for metal. Fiat Money Since 1971, the US dollar is not backed by anything. It is pure fiat money. The promise was quietly withdrawn and currency notes no longer carry that pledge. The same is true of all major currencies in the world today. This marks the final stage in the evolution of pure fiat money, which is backed neither, by a commodity, nor convertible into a commodity. Fiat money has become the standard form of national currency since abandonment of the gold standard. Banknotes issued by private banks were backed by the total deposits of the banks that issued them, however inadequate those deposits might be to reimburse all depositors. Notes issued by the US Federal Reserve or other central banks are backed only by the perception of public confidence in the stability of government and the productive capacity of the country that issues them. The transition from bank notes to government-guaranteed currency marks the evolution from trust in a financial institution to trust in the economic capacity and future prosperity of the nation. The greater a country’s production and productivity, the more the goods and services it offers in exchange for legal tender, and therefore the greater the confidence and trust in that currency. That is a major reason why the value of the euro has risen as the European Union had expanded to include more countries with greater productive capacity.

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“The Doors of Wisdom are never shut.”

-- Benjamin Franklin --

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HAPTER 3 - THE HISTORY OF ACCOUNTING

Early History Accountancy's infancy dates back to the earliest days of human agriculture and civilization (the Sumerians in Mesopotamia, and the Egyptian Old Kingdom). Ancient economic thought of the Near East facilitated the creation of accurate records of the quantities and relative values of agricultural products, methods that were formalized in trading and monetary systems by 2000 BC. Simple accounting is mentioned in the Christian Bible (New Testament) in the Book of Matthew, in the Parable of the Talents. The Islamic Quran also mentions simple accounting for trade and credit arrangements. Twelfth-century A.D. Arab writer Ibn Taymiyyah mentioned in his book Hisba (literally, "verification" or "calculation") detailed accounting systems used by Muslims as early as in the mid-seventh century A.D. These accounting practices were influenced by the Roman and the Persian civilizations, which Muslims interacted with. The most detailed example Ibn Taymiyyah provides a complex governmental accounting system is the Divan of Umar, the second Caliph of Islam, in which all revenues and disbursements were recorded. The Divan of Umar has been described in detail by various Islamic historians and was used by Muslim rulers in the Middle East with modifications and enhancements until the fall of the Ottoman Empire. Luca Pacioli and the Birth of Modern Accountancy Luca Pacioli (1445 - 1517), also known as Friar Luca dal Borgo, is credited for the "birth" of accounting. His Summa de arithmetica, geometrica, proportioni et proportionalita (Summa on arithmetic, geometry, proportions and proportionality, Venice 1494), was a textbook used in the abbaco schools of northern Italy, where the sons of merchants, and artisans, were educated. It was a compendium of the mathematical knowledge of his time, and includes the first printed description of the method of keeping accounts that Venetian merchants used at that time, known as the double-entry accounting system. Although Pacioli codified rather than invented this system, he is widely regarded as the "Father of Accounting". The system he published included most of the accounting

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cycle, as we know it today. He described the use of journals and ledgers, and warned that a person should not go to sleep at night until the debits equaled the credits! His ledger had accounts for assets (including receivables and inventories), liabilities, capital, income, and expenses - the account categories that are reported on an organization's balance sheet and income statement, respectively. He demonstrated year-end closing entries and proposed that a trial balance be used to prove a balanced ledger. His treatise also touches on a wide range of related topics from accounting ethics to cost accounting. Post-Pacioli The first known book in the English language on accounting was published in London, England by John Gouge (or Gough) in 1543. It is described as A Profitable Treatise called the Instrument, or Book, to learn to know the good order of the keeping of the famous reckoning, called in Latin, Dare, and Habere, and, in English, debtor and Creditor. A short book of instructions was also published in 1588 by John Mellis of Southwark, England, in which he says, "I am but the renuer and reviver of an ancient old copies printed here in London on the 14 of August 1543: collected, published, made, and set forth by one Hugh Oldcastle, Schoolmaster, who, as reappeared by his treatise, then taught Arithmetic, and this book in Saint Ollaves parish in Marko Lane.” Mellis refers to the fact that the principle of accounts he explains (which is a simple system of double entry) is "after the former of Venice". A book described as The Merchants Mirror, or directions for the perfect ordering and keeping of his accounts formed by way of Debtor and Creditor, after the (so termed) Italian manner, by Richard Dafforne, accountant, published in 1635, contains many references to early books on the science of accountancy. In a chapter in this book, headed "Opinion of Book-keeping's Antiquity," the author states, on the authority of another writer, that the form of book-keeping referred to had then been in use in Italy about two hundred years, "but that the same, or one in many parts very like this, was used in the time of Julius Caesar, and in Rome long before.” He gives quotations of Latin bookkeeping terms in use in ancient times, and refers to "ex Oratione Ciceronis pro Roscio Comaedo", and he adds:

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That the one side of their book was used for Debtor, the other for Creditor, is manifest in a certain place, Naturalis Historiae Plinii, lib. 2, cap. 7, where he, speaking of Fortune, saith thus: Huic Omnia Expensa. Huic Omnia Feruntur accepta et in tota Ratione mortalium sola. Utramque Paginam facit. An early Dutch writer appears to have suggested that double entry bookkeeping was even in existence among the Greeks, pointing to scientific accountancy having been invented in remote times. There were several editions of Richard Dafforne's book - the second edition in 1636, the third in 1656, and another in 1684. The book is a very complete treatise on scientific accountancy, beautifully prepared and containing elaborate explanations. The numerous editions tend to prove that the science was highly appreciated in the 17th century. From this time on, there has been a continuous supply of literature on the subject, many of the authors styling themselves accountants and teachers of the art, and thus proving that the professional accountant was then known and employed. Accountancy Qualifications and Regulation The expectations for qualification in the profession of accounting vary between different jurisdictions and countries. Accountants may be certified by a variety of organizations or bodies, such as the Association of Accounting Technicians (AAT),[6] British qualified accountancy bodies including the Chartered Institute of Management Accountants (CIMA), Association of Chartered Certified Accountants (ACCA), Association of International Accountants (AIA) and Institute of Chartered Accountants, and are recognized by titles such as Chartered Management Accountant (ACMA or FCMA) Chartered Certified Accountant (ACCA or FCCA), International Accountant (AAIA or FAIA) and Chartered Accountant (UK, Australia, New Zealand, Canada, India, Pakistan, South Africa, Ghana), Certified Public Accountant (Ireland, Japan, US, Singapore,

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Hong Kong, the Philippines), Certified Management Accountant (Canada, U.S.), Certified General Accountant (Canada, Caribbean, China, Hong Kong, Bermuda), or Certified Practicing Accountant (Australia). Some Commonwealth countries (Australia and Canada) often recognize both the certified and chartered accounting bodies. The majority of "public" accountants in New Zealand and Canada are Chartered Accountants, however, Certified General Accountants are also authorized by legislation to practice public accounting and auditing in all Canadian provinces, except Ontario and Quebec, as of 2005. There is, however, no legal requirement for an accountant to be a paid-up member of one of the many Institutes. The "Big Four" Accountancy Firms The "Big Four auditors" are the largest multinational accountancy firms. PricewaterhouseCoopers Deloitte Touche Tohmatsu KPMG Ernst & Young These firms are associations of the partnerships in each country rather than having the classical structure of a holding company and subsidiaries, but each has an international 'umbrella' organization for coordination (technically known as a Swiss Verein). Before the Enron and other accounting scandals in the United States, there were five large firms and were called the Big Five: Arthur Andersen, PricewaterhouseCoopers, KPMG, Deloitte Touche Tohmatsu, and Ernst & Young. On June 15, 2002, Arthur Andersen was convicted (later overturned) of obstruction of justice for shredding documents related to its audit of Enron. Nancy Temple (Andersen Legal Dept.) and David Duncan (Lead Partner for the Enron account) were cited as the responsible managers in this scandal as they had given the order to shred relevant documents.

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Since the U.S. Securities and Exchange Commission do not allow convicted felons to audit public companies, the firm agreed to surrender its licenses and its right to practice before the SEC on August 31, 2002. A plurality of Arthur Andersen joined KPMG in the US and Deloitte & Touche outside of the US. Historically, there had also been groupings referred to as the "Big Six" (Arthur Andersen, plus Coopers & Lybrand before its merger with Price Waterhouse) and the "Big Eight" (Ernst and Young prior to their merger were Ernst & Whinney, and Arthur Young and Deloitte & Touche was formed by the merger of Deloitte, Haskins and Sells with the firm Touche Ross). The accounting scandals at Enron, WorldCom, and other high profile companies in the USA and Europe have had, and continue to have, far reaching consequences for the accounting industry. Application of International Accounting Standards originating in International Accounting Standards Board headquartered in London and bearing more resemblance to UK than current US practices is often advocated by those who note the relative stability of the UK accounting system (which reformed itself after scandals in the late 1980s and early 1990s).

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“Whatever you do, you need courage. Whatever course you decide upon,

there is always someone to tell you that you are wrong. There are always difficulties arising that tempt you

to believe your critics are right. To map out a course of action and follow it to an end

requires some of the same courage that a soldier needs. Peace has its victories,

but it takes brave men and women to win them.”


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HAPTER 4 - BASIC ACCOUNTING

Double entry bookkeeping stretches back centuries perhaps even as early as the 12th century and is now accepted worldwide as the accounting standard to be employed by all companies in recording the financial accounting records. The first written explanation of the accounting system was reportedly by a Venetian mathematician Luca Pacioli towards the end of the 15th century. The accounting industry has grown somewhat since then and today contains many technical words known but largely ignored by non-accountants. The understanding and desire to understand accounting terms is further confused by the banking industry while adopting double entry bookkeeping as standard use what appears to be diametrically opposed terms in the presentation of information to their customers. In accounting terms, an asset such as money in the bank is a debit balance while bank customers are told if they have money in the bank, it is a credit balance. This arises because what the bank is really saying is when a customer has money in the bank that the balance represents a creditor to the bank, as it owes the customer money and is a creditor in the bank’s books. Hence, the bank describes the balance as a credit balance. The simplest way to understand double entry bookkeeping is the understanding that every financial transaction has a double effect. One effect is to change the profit and loss of the business with sales income increasing the financial profit and purchases reducing the financial profit. While the double entry is that every profit and loss transactions also has a balance sheet effect in either increasing assets or increasing liabilities. In more complex accounting areas such as journal entries or bank transactions both sides of a transaction may have no impact on the profit and loss account as both sides of the double entry effect the value of

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balances in the balance sheet. For example, when a creditor is paid the bank balance reduces, and the amount owed by the business reduces by the same amount. The greatest value of double entry bookkeeping to a business is its ability to show in numerical terms the profitability of the business to generate improved financial performance and management while also producing a statement of assets and liabilities. These factors are important to accountants too although the greatest benefit to an accountant is that because every transaction has an equal and opposite entry a mathematical check can be produced to ensure all financial transactions have been recorded accurately. This mathematical balance is when all the financial accounts into which the financial transactions have been entered are listed and added up and if all transactions have been entered correctly, the total is zero. This is called the trial balance. The function of account clerks and bookkeepers is to record the prime documents such as sales invoices and purchase invoices into the financial ledgers. Cash and bank records must also be entered. In addition, for every entry made, there must be the opposite entry into the business financial ledgers, such as, the sales ledger, and purchase ledger. Accounting software is basically, a database of these financial transactions that automates the double entry, enabling a single transaction to be entered once by the user, but create the second entry in the company financial accounts. Using accounting software which all but the smallest companies adopt as a standard business tool ensures greater accuracy and usually produces a self balancing trial balance since the accounting software always produces a second equal entry to the one being input to the financial system. The task of an accountant is first to ensure the prime documents are entered accurately and then interpret the results produced by the trial balance into financial statements and reports in a format that aids the financial management of the business and ensure those financial figures also represent a true and fair view of the financial position.

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Double entry bookkeeping is governed by the accounting equation. If revenue equals expenses, the following (basic) equation must be true: assets = liabilities + equity At any point in time, revenue may not equal expenses. If so, the equation can be further expanded, so that the (extended) equation becomes: assets = liabilities + equity + (revenue − expenses) or assets = liabilities + (capital − drawings) + (revenue − expenses) A = L + C − D + R − E Finally, the equation may be rearranged algebraically as follows: A + E + D = L + R + C This equation must be true, for any time period. If it is, then the accounts are said to be in balance. If the accounts are not in balance, an error has occurred. For the accounts to remain in balance, a change in one account must be matched with a change in another account. These changes are made by debits and credits to the accounts. Note that the usage of these terms in accounting is not identical to their everyday usage. Whether one uses a debit or credit to increase or decrease, an account depends on the normal balance of the account. Assets, Expenses, and Drawings accounts (on the left side of the equation) have a normal balance of debit. Liability, Revenue, and Capital accounts (on the right side of the equation) have a normal balance of credit. On a general ledger, debits are recorded on the left side and credits on the right side for each account. Since the accounts must always balance, for each transaction there will be a debit

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made to one or several accounts and a credit made to one or several accounts. The sum of all debits made in any transaction, must equal, the sum of all credits made. After a series of transactions, therefore, the sum of all the accounts with a debit balance, will equal, the sum of all the accounts with a credit balance.

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“Winning isn't everything,

but the will to win is everything.”


34

“Without ambition one starts nothing. Without work, one finishes nothing.

The prize will not be sent to you. You have to win it. The man who knows how, will always have a job.

The man who also knows why, will always be his boss. As to methods, there may be a million and then some,

but principles are few. The man who grasps principles

can successfully select his own methods. The man who tries methods, ignoring principles,

is sure to have trouble.”


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HAPTER 5 - DEBITS AND CREDITS

Introduction Debits and Credits are the most fundamental concepts in accounting. In accounting theory, the financial aspects of an entity, stated in terms of units of currency, are calculated using the accounting equation which is that Capital (or Equity or Net Worth) equals the value of your Assets (things you own) less the value of your Liabilities (things you owe), this is more often rearranged as: Assets equal Liabilities plus Capital. Each Asset, Liability, and Capital account contains debit and credit transactions that allow for the calculation of values for these accounts. Debits and credits are a system of notation used in accounting to keep track of money movements (transactions) into and out of an account: money paid into an account is a debit, money taken out of an account is a credit. Traditionally, an account's transactions are recorded in two columns of numbers: debits in the left hand column, credits in the right. Keeping the debits and credits in separate columns allows each to be added up independently so that the total debits and credits can be calculated, the smaller of the two totals is then subtracted from the larger to get the account balance. If an account has a debit balance then it owes money (to someone) because more money has been paid into it than has been drawn out, if it has a credit balance then it is owed money. Some accounts would normally have a credit balance because money usually only ever comes out of them (a salary account for instance), some normally a debit balance (a weekly shopping expense account, car fuel account). What is often confusing is that the notion of debit and credit will depend on the perspective of the person preparing the accounts, even though they may be essentially the same account. Take your bank account for example. In your accounts when you pay money into your bank account it is recorded as a debit, your bank account is in debt to you - the bank owes you money. The bank's perspective is different however, their job is to keep track of where all the money in their 'vault' has come from and where it goes. To do this, they create an account for each customer so

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when you pay money into the bank, from their perspective, it has come out of your account (a credit) into their vault: your account is in credit - your account is owed money. When you receive a statement from your bank, it will give the state of your account from the bank's point of view, which is why people are used to term 'your account is in credit' to mean that they have money in that account, when technically it means the opposite. The two-column system was developed in the days when accounts were done manually, and it is simpler and less error prone to add all the numbers in a column and then take the difference between the two results, but that is not the only reason it is used. In the double entry bookkeeping system, transactions never occur in isolation, money always moves from one account (credit) to another (debit): from your salary account to your bank account, from your bank account to your mortgage account, from your credit card account to your car fuel account, etc. This means that each credit transaction must have a balancing debit transaction and that the sum of all credits in the accounts must equal the sum of all debits, if not, an error has been made, keeping separate debit and credit columns makes it much easier to check this. It is also very useful to analyze the cash flow of an account (where money came from and where it went), and again, the two column system makes it much easier to see this. Computer account systems, normally use the double entry bookkeeping system, and, often present the accounts in the same two-column system, or a bank statement type of format, to do cash flow analysis, etc. Internally though, they would not usually use a two column system for an account but positive and negative numbers instead. Indeed, that is a convention (debits are positive, credits are negative) that goes back to the computer programming language COBOL. The accounts are collectively referred to as the ledger. A journal is a place where entries (debits and credits) are written before they are written in the ledger. Modern computer systems generally have you make entries directly to the ledger and then produce printouts that are designed to look as if they were journals, which they may not be in reality. Of course, the computer software you are using will have a built-in

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feature to make sure your debits equal your credits, which is one of the chief benefits of old-fashioned journals anyway. For each transaction, one or more accounts are debited, and one or more accounts are credited. The total value of the debits must equal the total value of the credits. A debit journal increases the balance on a debit value account and reduces the balance on a credit value account. A credit journal increases the balance on a credit value account and reduces the balance on a debit value account. In an asset account, a debit entry signifies the receipt of new assets, and thus represents an increase in assets. In a liability account, a debit entry represents a sum to be applied toward the satisfaction of the liability, and therefore decreases the liability. There are different types of accounts and these accounts are expected to hold either a debit balance or a credit balance. Asset accounts, and expense accounts, are always expected to have a debit balance. Gain, Income, and Liability Accounts, are always expected to have a credit balance. Origin of the terms debit and credit The terms Debit and Credit have Latin roots. Debit comes from debere, which means, "to owe". The Latin debitum means "debt". Credit comes from the Latin word credere, which means "to believe" or "to entrust". It is more common to use the plural terms "Debits" and "Credits". Historically the Debit side of an account is the left hand side of a general ledger account, while the Credit side of an account refers to the right hand side. The concepts of 'positive' and 'negative' are different from those of 'credit' and 'debit'. While it is true that an asset account having a debit balance is in receipt of more credits than it has issued and has positive value to the entity being tracked, and a liability account having a credit balance has extended more credit than has been repaid and has a negative value to the entity being tracked, not all accounts carrying a credit balance are liabilities nor are all accounts carrying a debit balance assets. For example, revenue accounts usually extend credit to asset accounts, but

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these credits do not have to be repaid, so they are not liabilities. As another example, expense accounts, having received credits from other asset accounts to pay expenses, carry a debit balance, but are not considered assets. The distinction between "real" accounts and "nominal" accounts is that "nominal" accounts are accounts in which to record changes in the equity or net worth. These are the revenue and expense accounts and should be thought of as a variety of equity accounts (recording how much the "entity" owes, in a sense, to the owner(s)). Computers have no concept of "left" and "right", so instead, computer accounting systems use negative numbers to represent credits, and positive numbers to represent debits. This makes sense because a debit entry represents an inflow into an account and a credit entry represents an outlay from an account, but can seem counterintuitive until one recognizes that the receiving account is the nominal debtor and the distributing account is the nominal creditor. For example, a credit (negative value) is recorded in sales account in order for the receipt of the sale amount to be recorded as a debit (positive number) in an asset account. If the value of the debits is greater than the value of the credits, then the balance on the account is a debit balance and should not be described as a positive value balance, but should be described as an account with a debit balance. Debit can be abbreviated as Dr., while credit can be abbreviated as Cr. Debits and Credits are recorded in a “T” account as shown below:

Debits Credits

Debit entries are made on the left side of the vertical line and credit entries are made on the right side of the vertical line.

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Debits and credits are neither positive nor negative values. The balance on an account is a debit or a credit, not a positive or a negative value. Dividend, Expense, Asset and Losses (abbreviated as "D-E-A-L") accounts increase in value when debited and decrease when credited, whereas Gains, Income, Revenues, Liability and Stockholder's (Owner's) equity (abbreviated as "G-I-R-L-S") accounts decrease in value when debited and increase when credited. This distinction is somewhat counterintuitive, until the nature of those accounts is more closely scrutinized. For example, revenue is coded as a credit. After recording a day's sales invoices, the company will have credited a certain amount in revenue, but the customer's ledger will hold a debit balance being the amount of the unpaid invoices. For instance, the journal entry for paying the telephone bill might look like this:

Description Debits Credits

Phone expense $200

Cash $200

The telephone company would record the exact same transaction (from their side) like this:

Description Debits Credits

Cash $200

Revenue $200

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Confusion also arises where the term ‘debit’ is also informally referred to as a "charge", as in a charge card, or a debit card, and that credit is a limit set, or an amount granted by a company, to its customers as in a credit limit. They are used in a different context, in these two cases. It is often assumed that a debit decreases a balance, and a credit increases it, because this is how the terms are shown on bank statements and using a debit card decreases the balance in one's bank account. However, this is because bank statements are traditionally written from the bank's perspective, where the customer's account is a liability. By withdrawing money, the customer is decreasing the bank's liability. Since liability accounts normally have a credit balance, the withdrawal of cash from a banking account is reflected on the bank's balance sheet as a debit. Principles or Rules of Debit and Credit All the account headings used in Accounting systems are classified under two types of Accounts, i.e., Real Account and Nominal Account. Real Account: Debit what comes in, and Credit what goes out. Nominal Account: Debit all expenses / losses, and Credit all incomes / gains. Therefore, Whenever cash is received, the Cash account is debited (and another account is credited). Whenever cash is paid out, the Cash account is credited (and another account is debited). Journal Entry In more complex accounting areas, such as journal entries, or bank transactions, where both sides of a transaction, may have no impact on the profit and loss account, as both sides of the double entry, affect the value of balances in the balance sheet. For example when a creditor is paid, the bank balance reduces, and, the amount owed by the business, reduces by the same amount.

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Have patience, this will all come together, by the time that you finish this Book. Then, and only then, will you be able to comprehend and understand -

The Solution. The importance of thoroughly understanding the difference between “Debits” and “Credits” cannot be overly emphasized, because the general assumption is that, Debits are what leaves, and Credits are what comes in. When in fact, it is the exact opposite, which is true. Debit - what comes in, and Credit - what goes out. This Principle is the basis upon which any Nation can help their Citizens into true Prosperity, without any type of debt burden being added to that nation. That is correct, without any nation having to borrow one penny from any other nation, or international entity. Sounds impossible? Well, this is true. This can be achieved by using legal, internationally acceptable, accounting practices. I have written a set of eight books on this very subject, in great detail, proving how this can be accomplished, all perfectly legal, within any nation, and all, in full compliance with every international rule, regulation, and law, entitled “The National Prosperity Program”. The Second Edition, of which, will be out very soon. Moreover, of course, Free-of-Charge, also. You will also want to pay close attention to the Section entitled “HOW IT ALL

WORKS” in the upcoming Chapter 7, because a major “entry” is missing in all of your credit card debt, and all of your bank loans, and, they know it.

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“I would rather lose in a cause that will some day win,

than win in a cause that will some day lose.”

-- Woodrow T. Wilson --

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HAPTER 6 - MONEY BASICS

Money plays a central role in our lives, yet no one can be free of misconceptions about it. This Chapter deals with only a few basic ideas, but it should help to gain an overall understanding of what money is and how it works. The Three types of Money It is generally accepted that there are three basic types of money in the world: Type 1: Real Wealth, which is usually measured in gold and silver. Type 2: Normally, Pieces of Paper, which claim to represent real wealth (i.e., bullion-backed paper money, such as gold & silver certificates, etc.). Type 3: Pieces of Paper or Plastic, which represent nothing at all (called "fiat" money). ALL of these, are widely considered to be “legal tender”, which means that they must be accepted as legal payment of debt, both, public and private. In actuality, Money is a token that is widely accepted as a medium of exchange. The token can be tangible, as a coin or note, or, intangible, as a bank deposit. If the token is convertible, upon demand, into a valuable commodity, as gold, then the token is known as commodity money. The exchange value of commodity money varies, but is normally greater than its value as a commodity. A precious metal coin is simply a token, potentially convertible into the bullion that comprises it. If the tokens are intrinsically worthless and inconvertible, the government must endow them with a special status, to make them viable as money. Such tokens are known as “fiat” money. Except for collector’s items, all government-issued tokens today, are fiat money. One must therefore avoid thinking in terms of commodity money, to be able to understand modern money.

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In the era of commodity money, the issuer was constrained by the need to hold a sufficient supply of the underlying commodity. There is no such constraint in the case of “fiat” money. The value of fiat money, therefore depends on the policies and actions of the issuer, normally the central bank of a nation. Fiat Money is what is commonly used in most nations of the world, today. Fiat Money as a Tax Credit The general acceptance of the government’s fiat money is derived from its status as legal tender, and, from the fact, it is required in payment of governmental taxes. It can be noted that this is also true for those who have no tax liability, yet have reason to acquire fiat money, because it is of value to those who do. Thusly, fiat money can be viewed as a tax credit, which will be used as a mechanism of exchange as long as the government widely enforces tax collection. Base Money Fiat money held by the private sector is known as the monetary base, which we will refer to as base money. (This will be discussed in more detail, later on in this book, under the heading of “M0, M1, M2, M3, and M4”.) The Central Bank issues base money when it buys securities, from the public, for its own portfolio, mainly debt. It pays, by simply creating a deposit at the Central Bank, for the seller’s own bank. This is known as monetizing the debt. Bank Money Banks create deposits, known as bank money, when they issue loans by simply crediting the borrower’s account with a new deposit. The total amount of bank money increases when a bank issues a loan. When a loan is paid off, that amount of bank, money vanishes. The value of bank money is based on the promise that it can be converted on demand, into base money at par. Current rules require a bank, to hold reserves of base money, equal to at least 10% of its transaction deposits, in most nations. Reserves can be held in any combination of, vault cash

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and deposit at the Central Bank. There is normally no required reserve for other bank liabilities, such as savings accounts or certificates of deposit. Controlling the Price of Reserves Even if there were no reserve requirement, a bank would have to hold enough reserves at the Central Bank to cover its depositors' checks, and, enough vault cash, to meet the demand for withdrawals by depositors, normally, this does not exceed three working days being held, at any one time. The need for reserves, thusly creates an active interbank market, in which banks lend, or borrow reserves, between themselves. The interest rate on these short-term transactions is normally referred to as Central Bank funds rate. The Central Bank steers the Central Bank funds rate, toward its target, through its open market operations. These involve buying or selling securities, in the open market, to add to, or drain, system reserves as needed to balance the supply and demand at its target for the Central Bank funds rate. Any bank in good standing, and with adequate collateral, can borrow on a short-term basis, at the Central Bank’s discount window. The interest rate the Central Bank charges is 100 basis points above its target rate for Central Bank funds. With that large spread, the discount window is used by banks to cover temporary liquidity problems, rather than as a source of reserves, by which to back further lending. Central Banks Reactive Role Why do Central Banks control the price of reserves, rather than the quantity? The answer is that targeting the quantity, risks endangering the liquidity of the banking system. For example, an increase in cash holdings by the public, drains vault cash from the banking system. Unless the Central Bank responded by injecting reserves, one or more banks, might be unable to meet, either, their reserve requirements, or their withdrawal demands of its depositors. Targeting the price of reserves is also more effective in controlling the volatility in the Central Bank funds rate, and, thusly, the interest rate

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banks must charge on their loans. Firms cannot plan efficiently, when the price of credit is subject to large and unpredictable variations. Because of the Central Bank’s focus on price, the bank money supply will vary with demand. It expands or contracts according to whatever factors influence private sector borrowing. Thus, the Central Bank plays an essentially reactive role, by adding to, or draining, reserves, as needed for bank liquidity, and to hold the Central Bank funds rate on target. Limiting Bank Lending Since the reserve ratio requirement does not really impede bank lending, what prevents a bank from responding to any and all loan demands? The answer is that every bank must also comply with an equity capital requirement. This is a complex formula, which rates a bank’s assets by risk, and requires that its capital exceed a certain fraction of its risk-weighted assets. A bank can get into trouble by creating too many assets through lending. A bank with insufficient capital, relative to its assets, will be placed under supervision of a regulator, who may then demand to approve any new lending. Limiting Money Supply Growth Another important question is, what limits the bank money supply from growing excessively? Banks are in the business of selling credit. If a creditworthy borrower is willing to pay the bank’s rate, the bank will normally make the loan, even if it must borrow the required reserves, after the fact. The only defense against the creation of an excessive supply of bank money is for the Central Bank to increase the price of reserves, to the point that it slows net demand. The Central Bank’s basic monetary policy challenge, is to keep the supply of bank money in reasonable balance with the needs of producers, and the availability of goods and services. This calls for a great deal of knowledge about the economy, as well as, skill in interpreting the data. Mismanagement, of the price of reserves, can readily drive the economy off track, towards inflation or recession. This is a difficult task,

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and Central Banks have made their share of mistakes, over the years, which are usually obvious, only in retrospect. Hence, true stability can only be achieved by attributing a real, viable, long term, value, upon the currency that any nation issues, such as in, a truly “asset backed” currency, then, incorporating, sound monetary policy.

“Real success comes in small portions day by day.

You need to take pleasure in life's daily little treasures. It is the most important thing in measuring success.”

-- Denis Waitley --

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“Six essential qualities are the key to success: sincerity,

personal integrity, humility, courtesy, wisdom, charity.”

-- William Menninger --

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HAPTER 7 - THE MODERN BANKING SYSTEM

Banking is a particularly arcane (difficult or impossible to understand) part, of the economic system, mainly, because, the words "bank“, and “banking”, covers many different activities, with very different implications. At present, there are no distinct lines between them, and their activities. Yet, there are, basically, four types of banks, and banking activities, not including Central Banks, and Bank of International Settlements (BIS), the Central Bank of Central Banks, which we will discuss at the end of this Chapter. Type 1. Merchant Banks. Type 2. Investment Banks. Type 3. Commercial Banks. Type 4. Giro Banks. TYPE 1. MERCHANT BANKS During the Renaissance era, the Medicis in Italy, and the Fuggers in Germany, were "bankers", their banking, however, was not only private, and began, initially at least, as a legitimate, non-inflationary, and highly productive and prosperous activity. Essentially, these were "merchant bankers”, who started as prominent merchants. In the course of their trade, the merchants began to extend credit to their customers, and in the case of these great banking families, the credit, or "banking“, part of their operations, eventually overshadowed their mercantile activities. These firms lent money out of their own profits and savings, and earned interest from the loans.

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Therefore, they became a conduit towards the problem for the productive investment of their own savings. TYPE 2. INVESTMENT BANKS The "investment banking" houses, which developed as industrial capitalism flowered in the nineteenth century. Investment bankers would take their own capital or capital invested, or money lent to them by others, to underwrite corporations, gathering capital by selling securities to stockholders and creditors. The problem with the investment bankers is that one of their major fields of investment was the underwriting of government bonds, which plunged them neck-deep into politics, giving them a powerful incentive for pressuring and manipulating governments, so that taxes would be levied to pay off their and their clients‘, government bonds. Therefore, the powerful and baleful (appearing to be threatening, or seeming to threaten) political influence of investment bankers in the nineteenth and twentieth centuries, in particular, the Rothschilds in Western Europe, then Jay Cooke and the House of Morgan in the United States became evident. TYPE 3. COMMERCIAL BANKS By the late nineteenth century, the Morgans took the lead in trying to pressure the U.S. government in to cartelizing industries that they were interested in. First railroads, and then manufacturing, to protect these industries from the winds of free competition, and to use the power of the government to enable these industries to restrict production and raise prices, which is also known as, “protectionism” of goods and services. In particular, the investment bankers acted as the instigating and coordinating group, to work for the cartelization of commercial banks. To some extent, commercial bankers lend out their own capital, and, deposits of money, along with other assets acquired, by means of loans, and the collateral that is acquired, to back the loans that are granted.

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Commercial banking is "deposit banking“, or more correctly, appears to be deposit banking, because, the money is not there. TYPE 4. GIRO BANKS Giro Banks are deposit-banking facilities, with “100% Reserves”. Beginning in the seventeenth century, Giro direct deposit banks began, as the Banks of Amsterdam and Hamburg, and acted as true deposit warehouses for their customers’ deposits, and are fully backed by all of their receipts, from the assets that are deposited, such as gold and silver. At present, Giro Banks are mainly Post Banks. They handle the deposits made, and transfers on a 100% Reserve Capital basis, only charging small operational fees for their services. Which is the main reason that most, present day, Giro Banks are owned and operated by governments. They, normally, are not very profitable. CENTRAL BANKS AND THE BANK FOR INTERNATIONAL SETTLEMENTS (BIS) Central Banks are bankers to the government and to the commercial banks, of the nations in which they serve. Central Banks manage public debt, control the money supply, and regulate the monetary and credit system of the nation. Central Banks are best described, by the functions they perform. Their Functions are outlined, as follows:

FUNCTIONS OF CENTRAL BANKS 1. Sole Right of Note Issuance The Central Bank in every nation, presently, has the sole, and exclusive, right of note issuance. The issuance of notes is governed by certain regulations, which are enforced by the state. 2. Banker to the State A Central Bank acts as a banker to the government. It holds cash balances of the government free of interest.

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3. Banker’s Bank The central bank acts as a banker to the commercial banks. 4. Bankers’ Clearing House The Central Bank acts as a clearinghouse for the settlement of mutual obligations of different commercial banks. If a difference exists, it is paid by a check drawn on the banks accounts entrusted at the Central Bank. 5. Lender of Last Resort The Central Bank helps the member banks in times of crisis. 6. Financial Agent The Central Banks act as financial agents for the government. It is an agent for the government in purchasing and selling of gold and foreign exchange. 7. Effective monetary policy The aim of the government is to create employment in the country, resist undue inflation, and achieve a favorable balance of payment. 8. External functions The Central Bank also performs a number of external functions. THE BANK FOR INTERNATIONAL SETTLEMENTS (BIS) The BIS was formed in 1930 under the Young Plan, which was the arrangement for settling German reparation debts, following World War I. The Young Plan directed the BIS to administer the payments imposed on Germany. The Central Banks of six nations, Belgium, France, Germany, Italy, Japan, and the United States, are the ones that funded the BIS, and selected Basel, Switzerland as its location. These Nations chose Switzerland because of its neutrality and minimal exposure to undue influence from nations with significant economic power. The city of Basel was chosen because of its excellent railway connections in all directions, particularly important, since most international travel was by train.

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The BIS remains headquartered in Basel, and maintain representative offices in Asia and the Americas. When the central banks established the BIS, it had three original functions. The first function, as dictated under the Young Plan, was to collect, administer, and distribute the annuities payable as reparations after World War I. The second function was to act as a trustee for the Dawes and Young Loans, which were international loans issued to finance Germany’s reparations. The third function was to promote central bank cooperation in general. When the reparations issue concluded, the BIS was able to devote all of its time’ to this third function as its focus shifted to ensuring cooperation among central banks and other agencies in order to foster monetary and financial stability. FRACTIONAL RESERVE BANKING

RESERVE REQUIREMENTS All depository institutions, commercial banks and thrifts, in the United States, are subject to reserve requirements on customer deposits. (We will use these, as examples, because they are excellent examples of exactly how the Fractional Banking System really works.) The required reserve ratio depends on the amount of checkable deposits a bank holds. No reserves are required on the first $7.0 million. Between $7.0 million and $48.3 million, deposits are subject to a 3% reserve. Above $48.3 million, they are subject to a 10% reserve. These breakpoints were effective year-end 2005, and are adjusted annually in accordance with money supply growth. No reserves are normally required against time deposits or savings accounts.

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Reserves are figured as the average held over a 14-day period, ending every second Wednesday. On any single day, a bank needs only enough to cover its customer's withdrawals. A bank may hold its reserves in any combination of vault cash and deposits at the Fed. As profit-seeking enterprises, banks try to keep their reserves close to the required minimum, since they earn no interest. HOW BANKS MEET RESERVE REQUIREMENTS A bank loses reserves whenever it pays out cash or transfers funds by wire for its customers. Customer checks to pay out of town bills funnel back through the Fed and are charged against its reserves. A bank may also lose reserves when it advances loans, like a home equity, and line of credit etc. or buys securities. Conversely, a bank gains reserves when it receives new deposits. A bank facing a reserve deficiency has several options. It can try to borrow reserves for a time period of one or more days from another bank, sell marketable assets, such as government securities, bid for funds in the money market, such as large CDs or Eurodollars, or as a last resort, it can pledge collateral and borrow at the Fed’s discount window. An active market in reserves acts to redistribute reserves to those banks that need them. However, banks cannot create reserves themselves. If the aggregate demand exceeds the existing supply of non-borrowed reserves, the banking system as a whole has no alternative, but to borrow more reserves, from the Fed. HOW THE FED MANAGES RESERVES The Fed adjusts aggregate banking system reserves, through short-term transactions with security dealers, primarily repurchase agreements involving Treasury debt. Occasionally, the Fed purchases Treasury debt outright, which then becomes a permanent addition to the monetary base. If necessary the Fed could sell Treasury debt from its portfolio, but that seldom happens in a growing economy. SIZE AND COMPOSITION OF THE MONETARY BASE As of July 2006, the monetary base created by the Fed, totaled $812 billion, of that total, $767 billion consisted of Federal Reserve notes and

55

coins held by the public. The Fed estimates that more than half of the currency is overseas, and is mostly owned by foreigners. Federal Reserve notes are prized as a store of value and used as a medium of exchange in those countries where the local currency is not trusted. The remainder of the monetary base comprises the reserves of depository institutions (commercial banks and thrifts). Those reserves, support a multiple of bank money, created through the act of lending. LINKAGE BETWEEN RESERVES AND MONEY SUPPLY In practice, reserves bear almost no relation to the size of the money supply. Indeed, in the 10-year period from July 1996 to July 2006, while the M2 money aggregate increased by 83%, the total banking system reserves decreased by 17%. The explanation for this anomaly is due in part to innovative banking. Using overnight sweep accounts, banks can move substantial amounts of deposits out of the reserve category, without affecting customer access to their checkable funds. While this seems to violate the intent of the Fed’s reserve requirements, it does not materially affect the implementation of monetary policy. Banks must still attend to their reserve ratios, and hold adequate clearing balances at the Fed. That creates an active money market in Fed funds, whose price the Fed can control through its open market operations. In other words, a completely “Closed Looped” system exist between such entities. HOW IT ALL WORKS You go to a bank to borrow “money”. On the other hand, you think you do. In fact, the “money” is merely figures typed into your computer account. It does not exist, except as figures in a computer program, remember the

56

“credits” and “debits”, and how they have to be balanced. Banks are allowed to “lend” (actually create new money) at least ten times, the amount that they have on deposit. However, these “deposits”, too, are only figures on a screen. There is no real “money” involved in this whole scenario. But in return for “borrowing” this, legally created “money”, you must sign over your property, land or business, and give the lender a promissory note, which is then owned by the bank until you have paid back your loan, plus interest. Moreover, if you do not pay them back, the bank can legally take possession of your property, land or business, and any other assets, which you may have pledged to them, as collateral. In addition, even while you are paying back the “loan”, all of your pledged assets, are considered an asset of the bank, and, they can “lend” ten times its value, to anyone else, who wants a loan. Now, this is real banking business !!! UNBELIEVABLE, BUT, TRUE !!! Some people have serious reservations, about the correctness of this information. If you are one of those people, just ask yourself, “why” is it, when the Fed needs to increase the monetary supply, they lower the interest rates, instead of raising them, to attract new money. After all, people look for the highest interest rates possible, for their deposits. Do they not? Therefore, the truth of this matter is that money is created from debt. Therefore, the Fed, by reducing the interest rates, is actually encouraging people to borrow. NOW, HERE IS WHERE THE REAL RUB COMES IN TO PLAY -

(from “Hamlet” by William Shakespeare: Act 3. Scene I)

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Remember the “debits” and “credits”, which we have discussed before? Well, let us do some balancing of the books on our own, now. When you sign the loan documents at the bank, or filled out and signed that new credit card application, here is how it actually works: On your Bank, or Credit Card Co., Accounting Books –

Debits Credits

Your Written Promise to Pay –

Principal and Interest

The Money that they legally type

in to your account on their

computer system

$10,000-USD plus Interest

$10,000-USD

On Your Accounting Books, with your Bank or Credit Card Co. -

Debits Credits

The money that they put in to your account

What you owe to your lending

bank or credit card company

$10,000-USD $10,000-USD plus interest

Both sets of Accounting Books are not balanced. Why? let us see:

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This is what Your Accounting Books, with your Bank or Credit Card Co. should look like -

Debits Credits

The Money that they legally type

in to your account on their

computer system, but, didn’t add the

PLUS

the Interest that you promised to

pay

Your Written Promise to Pay –

Principal and Interest

$10,000-USD plus interest

$10,000-USD plus interest

Now, the Accounting Books are perfectly balanced,

on both side of the equation, and, they equal “zero” in the middle,

just as they should. So, What is Missing? They did not type in your Promise to Pay, the Principal, plus Interest, on either side of the equation. Moreover, They knew it, when they did it. Now, if you do not believe that this is true, just read the following:

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The Federal Reserve Bank of Chicago in their publication “Modern Money Mechanics”, had this to say, on Page 6, Second Paragraph, of the Right Hand Column (You can download a complete copy of that workbook at: http://www.bibliotecapleyades.net/archivos_pdf/money_mechanics.pdf) It states, “Of course, they (the banks, credit card companies, and other financial institutions) do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrower’s transaction accounts.” Therefore, your bank, and/or credit card company, created new money from your promise to pay, and didn’t credit your promise to pay, plus the interest, in to your account, along with the debit that they did give to you, from the money that they created by that same Promise to Pay, which is actually against the law to do, in most states and nations. An intentional Accounting Error on their part, and, they knew it, when they did it. Check with a good attorney, a specialist on these types of cases, if you decide that you want to challenge this type of accounting error, because you do not owe that money, or the interest. This type of accounting error constitutes an illegal transaction, to begin with, within most nations, because you were never given your just “credit”. In addition, if this is what you decided to do, be very careful if you have pledged anything else as the collateral for the loan, or credit card credit line, because they will try to repossess that also. ONLY ONE MORE DEBT ISSUE, TO ADDRESS Yes, less than 5% of the world’s monetary supply is “fiat” money, or currency, which has been legally printed. Therefore, more than 95% of the world’s monetary supply, today, is debt, written as “virtual money” in computers, but still, perfectly legal tender. Thusly, THAT is the whole key, to The Solution, also.

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However, this, adds an additional problem, because, when the money, from debt, is created, it is only equal to, the money, which has been loaned. This new money does not include money to pay for the interest payments, therefore the accounting books are out of balance to begin with, which is the real problem with the infamous Sub-Prime Special Investment Vehicles (SIVs) scandal. There was no interest provision made, nor could have been made, during their creation, thusly, no real assurance that those newly created financial instruments would be able to pay the interest stream, which had been promised. Nevertheless, there is a truly workable solution. To the extent that banks lend their own savings, or the savings of others, their activities are productive, and exactly that is what is generally expected of banking facilities. Even in our current commercial banking system, if I buy a $10,000 CD ("Certificate of Deposit") redeemable in six months, earning a certain fixed interest of return, I am taking my savings and lending it to a bank, which in turn lends it out at a higher interest rate, the differential being the bank's earnings, for the function of channeling savings into the hands of credit-worthy and productive borrowers. There is no problem with this process, at all, because it is what is expected. Furthermore, the banking and financial facilities make a good profit in the process. Keep the accounting books balanced, is my best advice.

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63

• A walks to his goldsmith, tenders his receipt and draws the coins necessary to

settle for the horse. • Returning to the meeting point, A delivers the coins to B and takes possession

of the horse. The transaction is thus completed within an hour, requiring no arduous trek to the National Treasury, and at diminished risk to A, who only had to carry his gold coin from the premises of the goldsmith to the meeting point with B. As the concept of depositing coin with the goldsmiths increased, the goldsmiths became, in effect, the equivalent of the modern depository. Depositors were charged a small fee, and so the goldsmith had additional income to support his business. Not all goldsmiths were honest, and there were several who chose to steal the assets of those who deposited with them, but they were few, and such were the times, in which the dishonest were rapidly discovered and dispatched in crude reprisal by those who were cheated. In the area of Hammersmith on the periphery of what is now Greater London, was a goldsmith named William Patterson, who, through highly ethical practice of his craft had acquired a fine reputation as a sound depository for coin, and so his business grew until he was the premier goldsmith of his area. Since his reputation was so widely acknowledged, it became standard practice to exchange his depository receipts in lieu of gold coin when making any purchase, because the acceptor of the receipt could rely upon William to produce appropriate coins once that receipt was presented at his counters. As a result, commerce was further facilitated by the convenience of not having to go to the depository to recover coin, but to simply exchange an acceptable receipt, as good and proper value. Now William Patterson was a keen observer, and in analysis of his business operations, noted that only one in ten of his depositors ever elected to withdraw the whole of his deposit. As a goldsmith and money-lender, William began to perceive that perhaps there was a means by which he might increase revenue of his business without additional capital.

64

As his analysis and observations of his business operations progressed, William discerned that there was definitely additional profit to be made. His reasoning was that since his receipts were never questioned, and since there was always sufficient upon deposit to meet any withdrawal, it would be possible to lend money by issue of far more receipts than were supported by deposits, or even supported at all, and thus make a tidy profit for himself, with nobody the wiser as to how he managed to earn such an excellent income. The proviso was that he should contain the extracurricular lending to not more than three times the amount of deposits, so that there was always a reserve to meet any unforeseen eventuality. William began to lend what was not his to lend, and found to his delight that his perception was completely correct, in that nobody questioned his receipts, and only one in ten persons ever withdrew the total of his deposit, thus demonstrating that his perceived formula had substance..

Inspired by this new-found profit opportunity, William expanded operations by progressively increasing the ratio from three times deposits, to five times deposits, to nine times deposits, and was thrilled to notice that each increment brought new wealth to his door without repercussion.

Around this time the King made it known that he sought to borrow One million pounds to finance a military expedition, and William, emboldened by his successful business, went to the King and offered to provide One million pounds in receipts in lieu of the gold coin sought by the King. He was able to convince the King that his gold receipts were the equivalent of gold coin in that they would serve to purchase armour, horses, and all things that the King would require to mount a successful expeditionary force. A deal was struck, with the King as borrower, and William Patterson as Lender, for the sum of One Million Pounds. Now such a loan was big news in the realm, and word of that engagement spread rapidly. Other goldsmiths, intrigued by the wealth acquired by William began to suspect that he had engaged the money of his depositors, and began a whispering campaign, warning depositors, and potential depositors, that William did not have

65

enough gold coin in his vaults to meet demands of the receipts upon presentation. That whispering campaign triggered a march upon the premises of William Patterson by depositors anxious to withdraw their gold coin just in case there was some substance to the whispering campaign. William’s response to what was in reality a first “run on a bank”, paid all depositors who tendered a valid receipt, until such time as his supply of coin was exhausted. With no further coin available to meet withdrawal demands, those who had yet to recover their deposits became angry and as their numbers swelled, soon became a mob intent on mischief. William addressed the mob, and informed them that his goldsmith vaults were empty because the King had not repaid a loan of one million pounds. The mob then turned its attention upon the King, and demanded to know when his loan would be repaid. The King informed them that he would repay the loan from proceeds of booty during his intended military expedition, and the mob was left with no remedy to hand, other than a promise that they would have their money when the King’s loan was repaid. Following the King’s confrontation with the mob, William was summoned to meet the King. The ensuing conversation can be paraphrased as follows :- King Well, William, we have a problem. William NO, Your Majesty, WE do not have a problem, YOU have a problem

because you owe me One million pounds. King Since I cannot pay until completion of my military adventure, what can

be done to alleviate this situation ? William You Majesty, I have observed that the depositors are content as long

as they consider that my business is sound. All that is necessary is to show that there is confidence in my business, and the depositors will return the monies they withdrew, and I will not have to demand immediate repayment of your loan.

King Well, William, How can that be achieved ?

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William Your Majesty, I am of the opinion that if you deposited the crown jewels

in my vaults, then the people will quickly realise that you have great confidence in me, and so they will return all withdrawn coins, and the crisis will pass.

King William, that is a brilliant idea, and to make it even more realistic, I now

rename your business the Bank of England. The year was 1694, and so the crisis did pass, for the Bank of England was incorporated, remaining in private hands for the next three hundred odd years, until nationalised by the then government in 1946. If we review the activities of William Patterson we will note :- (a) The first use of cheques in the form of the depository receipts. (b) The first run on a “bank”. (c) The first “bail out” of a bank by the national government. (d) The endorsement of usury in the form of charging interest on something, which

did not exist. (e) The conversion of NOTHING (in the form of unsupported depository receipts)

into value and substance, (in the form of gold coin of the realm) when the “loan” was repaid by the borrower.

(f). And several other aspects which have become enshrined in modern banking

practice. So there we have the birth of Fractional Reserve Banking. It was born in sin, because it was a breach of fiduciary duty, theft, treachery, and failure to maintain an acceptable ethical standard. In essence, Fractional Reserve Banking is based upon the lending of NOTHING tangible, but demands repayment in value and substance. In every form of its application there is NO capital, yet the borrower is engaged to make repayments, which benefit the lender to the extent of that nonexistent capital plus interest.

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Since inception, Fractional Reserve Banking has matured into the scourge of the world, through being adopted by EVERY bank on earth. In modern times, its most notable practitioners are the original Bank of England, and that institution to which Bank of England provided expertise and material assistance in establishing its presence, the United States Federal Reserve. The scourge is perpetuated because it promotes a new elite who adopt the title of banker. Those persons assuming the mantle of banker announce to all that they have elected a career in which they will continue to promote and operate a mechanism which is fundamentally fraudulent, in order to promote their personal wealth. Worse still, In the intervening three hundred plus years since William Patterson essentially “invented” fractional reserve banking, those who succeed him by adopting the calling of banker, have proven conclusively that they will hone and improve the underlying fraud for their own enrichment by creating increasingly complex instruments of debt, unmindful of the lack of integrity and acceptable ethical standard which attends their modification of the fraud. It is equally reprehensible that law makers have permitted such condition to continue, and that they have materially aided and abetted the fraud by establishing laws which make fractional reserve banking the norm, as opposed to imposing strict standards of conduct in the business operations of banking. Today the banker is accepted as a respected member of society, and prefers not to notice, or to be reminded, that the model upon which his business is based is fundamentally fraudulent. Why has this magnificent fraud not been recognised and abolished during the three hundred plus years since William Patterson ? There is an analogy in the relationship between the shepherd and the sheep. The sheep are grateful to the shepherd because he keeps the wolves away, and prefer not to notice that he is leading them ever closer to the butcher’s shop. It was lack of vigilance by those being preyed upon which allowed Fractional Reserve Banking to become the monster that it is today, and only a massive up-welling of public concern will set correction in motion.

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If the entire story of the current ills of the global financial system is ever revealed, that massive up-welling of concern just might occur.

Vidimus Thank you very much, Sir, for a truly unique and informative summation.

“Some people dream of success...

while others wake up, and work hard at it.”

-- Author unknown --

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“There is one quality that one must possess to win,

and that is definiteness of purpose, the knowledge of what one wants, and a burning desire to possess it.”

-- Napoleon Hill --

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“A winner never quits

and a quitter never wins.”

-- Vernon Law --

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HAPTER 8 - THE IMF AND THE WORLD BANK

INTERNATIONAL MONETARY FUND (IMF) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (THE WORLD BANK) INTERNATIONAL MONETARY FUND The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular, those with an impact on exchange rates and the balance of payments. It also offers financial and technical assistance to its members, making it an international lender of last resort. Its headquarters are located in Washington, D.C., USA. Organization and purpose The International Monetary Fund was created in 1944, with a goal to stabilize exchange rates and supervise the reconstruction of the world's international payment system. Countries contributed to a pool, which could be borrowed from, on a temporary basis, by countries with payment imbalances. (Condon, 2007) The IMF describes itself as "an organization of 185 countries (Montenegro being the 185th, as of January 18, 2007), working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty". With the exception of North Korea, Cuba, Andorra, Monaco, Liechtenstein, Tuvalu, and Nauru, all UN member states, participate directly in the IMF. Most are represented by other member states on a 24-member Executive Board but all member countries belong to the IMF's Board of Governors. History The International Monetary Fund was formally created in July 1944 during the United Nations Monetary and Financial Conference. The

C

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representatives of 45 governments met in the Mount Washington Hotel in the area of Bretton Woods, New Hampshire, United States of America, with the delegates to the conference agreeing on a framework for international economic cooperation.[3] The IMF was formally organized on December 27, 1945, when the first 29 countries signed its Articles of Agreement. The statutory purposes of the IMF today are the same as when they were formulated in 1944. Today From the end of World War II until the late-1970s, the capitalist world experienced unprecedented growth in real incomes. (Since then, the integration of China and Eastern and Central Europe into the capitalist system has added substantially to the growth of the system.) Within the capitalist system, the benefits of growth have not flowed equally to all (either within or among nations) but overall there has been an increase in accessible material wealth that contrasts with the conditions within capitalist countries during the interwar period. In the decades since World War II, apart from rising material prosperity, the world economy and monetary system have undergone other major changes that have increased the importance and relevance of the purposes served by the IMF, but that has also required the IMF to adapt and reform. Rapid advances in technology and communications have contributed to the increasing international integration of markets and to closer linkages among national economies. As a result, financial crises, when they erupt, now tend to spread more rapidly among countries. The IMF's influence in the global economy steadily increased as it accumulated more members. The number of IMF member countries has more than quadrupled from the 44 states involved in its establishment, reflecting in particular the attainment of political independence by many developing countries and more recently the collapse of the Soviet bloc. The expansion of the IMF’s membership, together with the changes in the world economy, has required the IMF to adapt in a variety of ways to continue serving its purposes effectively. In an apparent move to curb the sudden rise of gold prices, and to shore

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up the falling value of the US Dollar, The International Monetary Fund's executive board approved a broad financial overhaul plan that could lead to the eventual sale of a little over 400 tons of its substantial gold supplies. IMF Managing Director Dominique Strauss-Kahn welcomed the board's decision of April 7, 2008 to propose a new framework for the fund, designed to close a projected $400 million budget deficit over the next few years. The budget proposal includes sharp spending cuts of $100 million until 2011 that will include up to 380 staff dismissals. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (THE WORLD BANK) The International Bank for Reconstruction and Development (IBRD) is one of five institutions that comprise the World Bank Group. The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II. Now, its mission has expanded to fight poverty by means of financing states. Its operation is maintained through payments as regulated by member states. It came into existence on December 27, 1945 following international ratification of the agreements reached at the United Nations Monetary and Financial Conference of July 1 to July 22, 1944 in Bretton Woods, New Hampshire. The IBRD provides loans to governments, and public enterprises, always with a government (or "sovereign") guarantee of repayment subject to general conditions (pdf). The funds for this lending come primarily from the issuing of World Bank bonds on the global capital markets—typically $12–15 billion per year. These bonds are rated AAA (the highest possible) because they are backed by member states' share capital, as well as by borrowers' sovereign guarantees. (In addition, loans that are repaid are recycled, or relent.) Because of the IBRD' credit rating, it is able to borrow at relatively low interest rates. As most developing countries have considerably lower credit ratings, the IBRD can lend to countries at interest rates that are usually quite attractive to them, even after adding a small margin (about 1%) to cover administrative overheads. History Commencing operations on June 25, 1946, it approved its first loan on May 9, 1947 ($250m to France for postwar reconstruction, in real terms the largest loan issued by the Bank to date).

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The IBRD was established mainly as a vehicle for reconstruction of Europe and Japan after World War II, with an additional mandate to foster economic growth in developing countries in Africa, Asia, and Latin America. Originally, the bank focused mainly on large-scale infrastructure projects, building highways, airports, and power plants. As Japan and its European client countries "graduated" (achieved certain levels of income per capita), the IBRD became focused entirely on developing countries. Since the early 1990s, the IBRD has also provided financing to the post-Socialist states of Eastern Europe and the former Soviet Union. WORLD BANK GROUP The World Bank Group (WBG) is a family of five international organizations responsible for providing finance and advice to countries for the purposes of economic development and eliminating poverty. The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements, which emerged from the United Nations Monetary and Financial Conference (1 July – 22 July 1944). It also provided the foundation of the Osiander Committee in 1951, responsible for the preparation and evaluation of the World Development Report. Its five agencies are: International Bank for Reconstruction and Development (IBRD) International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Centre for Settlement of Investment Disputes (ICSID) The term "World Bank" generally refers to the IBRD and IDA, whereas the World Bank Group is used to refer to the institutions collectively. The World Bank's (i.e. the IBRD and IDA) activities are focused on

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developing countries, in fields such as human development (e.g. education, health), agriculture and rural development (e.g. irrigation, rural services), environmental protection (e.g. pollution reduction, establishing and enforcing regulations), infrastructure (e.g. roads, urban regeneration, electricity), and governance (e.g. anti-corruption, legal institutions development). The IBRD and IDA provide loans at preferential rates to member countries, as well as grants to the poorest countries. Loans or grants for specific projects are often linked to wider policy changes in that sector or the economy. For example, a loan to improve and provide management to coastal areas may be linked to development of new environmental institutions at national and local levels along with the implementation of new regulations to limit pollution. The activities of the IFC and MIGA include investment in the private sector and providing assurance respectively. The World Bank Institute is the branch that facilitates development for the World Bank, providing learning and other capacity-building programs to member countries. Two countries, Venezuela and Ecuador, have recently withdrawn from the World Bank. Organizational Structure Together with four affiliated agencies created between 1956 and 1988, the IBRD is part of the World Bank Group. The Group's headquarters are in Washington, D.C. It is an international organization owned by member governments, although it makes profits, these profits are used to support continued efforts in poverty reduction. Technically the World Bank is part of the United Nations system, but its governed structure is different: each institution in the World Bank Group is owned by its member governments, which subscribe to its basic share capital, with votes proportional to shareholding. Membership gives certain voting rights that are the same for all countries but there are also additional votes, which depend on financial contributions to the organization. The President of the World Bank is nominated by the President of the United States and elected by the Bank's Board of Governors. As of November 1, 2006, the United States held 16.4% of total votes, Japan 7.9%, Germany 4.5%, and France and the United

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Kingdom each held 4.3%. As changes to the Bank's Charter require an 85% super-majority, the US can block any major change in the Bank's governing structure. World Bank Group agencies The World Bank Group consists of: The International Bank for Reconstruction and Development (IBRD), established in 1945, which provides debt financing on the basis of sovereign guarantees, The International Finance Corporation (IFC), established in 1956, which provides various forms of financing without sovereign guarantees, primarily to the private sector, The International Development Association (IDA), established in 1960, which provides concessional financing (interest-free loans or grants), usually with sovereign guarantees, The Multilateral Investment Guarantee Agency (MIGA), established in 1988, which provides insurance against certain types of risk, including political risk, for primarily the private sector. The International Centre for Settlement of Investment Disputes (ICSID), established in 1966, which works with governments to reduce investment risk. The IBRD has 185 member governments, and the other institutions have between 140 and 176 members. The institutions of the World Bank Group are all run by a Board of Governors meeting once a year. Each member country appoints a governor, generally its Minister of Finance. On a daily basis, the World Bank Group is run by a Board of 24 Executive Directors to whom the governors have delegated certain powers. Each Director represents either one country (for the largest countries), or a group of countries. Executive Directors are appointed by their respective governments or the

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constituencies. The agencies of the World Bank are each governed by their Articles of Agreement that serve as the legal and institutional foundation for all of their work. The Bank also serves as one of several Implementing Agencies for the United Nations Global Environment Facility (GEF), as per provision, the world bank donates a loan at higher rate. Social and Environmental Concerns Throughout the period from 1972 to 1989, the Bank did not conduct its own environmental assessments and did not require assessments for every project that was proposed. Assessments were required only for a varying, small percentage of projects, with the environmental staff, in the early 1970s, sending check-off forms to the borrowers and, in the latter part of the period, sending more detailed documentation and suggestions for analysis. During this same period, the Bank’s failure to adequately consider social environmental factors, was most evident in the 1976 Indonesian Transmigration program (Transmigration V). This project was funded after the establishment of the Bank’s OESA (environmental) office in 1971. According to the Bank critic Le Prestre, Transmigration V was the “largest resettlement program ever attempted... designed ultimately to transfer, over a period of twenty years, 65 million of the nation’s 165 million inhabitants from the overcrowded islands of Java, Bali, Madura, and Lombok...” The objectives were: relief of the economic and social problems of the inner islands, reduction of unemployment on Java, relocation of manpower to the outer islands, the “strengthening of national unity through ethnic integration, and improvement of the living standard of the poor” (Le Prestre 175). Putting aside the political aspects of such a project, it otherwise failed as the new settlements went out of control, local populations fought with the migrants and the tropical forest was devastated (destroying the lives of indigenous peoples). In the fact that, “some settlements were established in inhospitable sites, and failures became common, “these concerns were noted by the Bank's environmental unit whose recommendations (to Bank management) and their analyses were ignored (Le Prestre, 176). Funding continued through 1987, despite the problems

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noted, and despite the Bank’s published stipulations (1982) concerning the treatment of groups to be resettled. Authors that are more recent have pointed out that the World Bank learned from the mistakes of projects such as Transmigration V and greatly improved its social and environmental controls, especially during the 1990s. It has established a set of "Safeguard Policies" that specify a wide range of basic criteria that projects must meet to be acceptable. The policies are demanding, and as Mallaby (reference below) observes: "Because of the combined pressures from Northern NGOs and shareholders, the Bank's project managers labor under "safeguard" rules covering ten sensitive issues... no other development lender is hamstrung in this way" (page 389). The ten policies cover: Environmental Assessment, Natural Habitats, Forests, Pest Management, Cultural Property, Involuntary Resettlement, Indigenous Peoples, Safety of Dams, Disputed Areas, and International Waterways. The Independent Evaluation Group The Independent Evaluation Group (IEG) (formerly known as the Operations Evaluation Department (OED)) plays an important check and balance role in the World Bank. Similar in its role to the US Government's Government Accountability Office (GAO), it is an independent unit of the World Bank that reports evaluation findings directly to the Bank's Board of Executive Directors. IMF, WBI and U.S. Treasury Department, Lead Economists, Fatafehi Tupoumalohi, Dr. Vinod Thomas, and Lin Chen, are three of the Independent Evaluation Group's 5 Director-Generals whose evaluations provide an objective basis for assessing the results of the Bank's work, and ensuring accountability of World Bank management to the member countries (through the World Bank Board) in the achievement of its objectives. Extractive Industries Review After longstanding criticisms from learned society of the Bank's involvement in the oil, gas, and mining sectors, the World Bank in July 2001 launched an independent review called the Extractive Industries Review (EIR – not to be confused with Environmental Impact Report). The review was headed by an "Eminent Person", Dr. Emil Salim (former

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Environment Minister of Indonesia). Dr. Salim held consultations with a wide range of stakeholders in 2002 and 2003. The EIR recommendations were published in January 2004 in a final report entitled "Striking a Better Balance". The report concluded that fossil fuel and mining projects do not alleviate poverty, and recommended that World Bank involvement with these sectors be phased out by 2008, to be replaced by investment in renewable energy and clean energy. The World Bank published its Management Response to the EIR in September 2004, following extensive discussions with the Board of Directors. The Management Response did not accept many of the EIR report's conclusions. However, the EIR served to alter the World Bank's policies on oil, gas, and mining in important ways, as has been documented by the World Bank in a recent follow-up report. One area of particular controversy concerned the rights of indigenous peoples. Critics point out that the Management Response weakened a key recommendation that indigenous peoples and affected communities should have to provide 'consent' for projects to proceed, instead, there would be 'consultation'. Following the EIR process, the World Bank issued a revised Policy on Indigenous Peoples. Impact Evaluations In recent years, there has been an increased focus on measuring results of World Bank development assistance through impact evaluations. An impact evaluation assesses the changes in the well-being of individuals that can be attributed to a particular project, program, or policy. Impact evaluations demand a substantial amount of information, time, and resources. Therefore, it is important to select carefully the public actions that will be evaluated. One of the important considerations that could govern the selection of interventions (whether they be projects, programs, or policies) for impact evaluation is the potential of evaluation results for learning. In general, it is best to evaluate interventions that maximize the possibility of learning from current poverty reduction efforts and provide insights for midcourse correction, as necessary. Money Supply - M0, M1, M2, M3, M4 [M0] - is Cash in circulation. Only used by the UK. [M1] - is Cash in circulation, plus demand deposits at commercial

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banks. It should be noted here that there are variations between the precise definitions used by national financial authorities.

[M2] - Includes demand deposits, time deposits, and money market

mutual funds, excluding large Certificates of Deposit. [M3] - In the UK it is M1, plus public and private sector, time deposits

and sight deposits, held by the public sector. [M4] - In the US it is M2, plus negotiable Certificates of Deposit.

“When you win, say nothing.

When you lose, say less.”

-- Paul Brown --

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“You will never win, if you never begin.”

-- Helen Rowland --

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“Wisdom begins in wonder.”

-- Socrates --

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HAPTER 9 – BANK DEBENTURE TRADING PROGRAMS

AN INTRODUCTION TO BANK DEBENTURE TRADING PROGRAMS (PPP) WHAT IS A BANK DEBENTURE TRADING PROGRAM? Also referred to as a secured asset management program, this is an investment vehicle commonly used by the very wealthy where the principal investment is fully secured by a Bank Endorsed Guarantee. The principal is managed and invested to give a guaranteed high returns to the investor on a periodic basis. There is no risk of losing the investor's principal investment. This investment opportunity involves the purchase and sale of Bank Debentures within the International Market in a controlled trading program. The program allows the investor to place his funds through an established Program Management firm working directly with a major Trading Bank. A Bank-Endorsed Guarantee secures the investment funds by the Banking institution at the time the funds are deposited. The Investor is designated as the Beneficiary of the Guarantee unless otherwise instructed by the Investor. The guarantee is issued to secure the Investor's principal for the contract period. This guarantee will be Bank Endorsed with the Bank Seal, two authorized senior Officers' signatures, and will guarantee that the funds will be on deposit in the Bank during the contract period and will be returned fully to the Investor at the end of the contract term. The Investor is also guaranteed by the program Directors, by contract, that they will receive what is in effect a percentage of each trade made by the Trade Bank. This can be in the form of a guaranteed profit/yield paid on a periodic basis, upon terms as set forth in the contract. The Instruments to be transacted under the Buy/Sell Program are fully negotiable Bank Instruments delivered unencumbered, free, and clear of any liens, claims, or restrictions. The Instruments are debt obligations of the Top One Hundred (100) World Banks in the form of Medium Term

C

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Bank Debentures of 10 years in length, normally offering 7 1/2% interest, or, "Standby Letters of Credit" of one year in length with no interest but at a discount from face value. These Bank Instruments conform in all respects with the Uniform Customs and Practice for Documentary Credits as set forth by the International Chamber of Commerce, Paris, France (ICC) in the latest edition of the ICC Publication 500 (1995 Revision), or the latest revision thereof. WHAT IS THE INVESTORS RISK IN THIS PROGRAM? As stated, the Investment funds principal is fully secured by a BANK ENDORSED GUARANTEE (or, safekeeping receipt), which is issued by the Trading Bank at the time the funds are deposited. The Investor is designated as the Beneficiary of the Guarantee that is issued to secure the principal for the contract period and all elements of risk have been addressed. It must be stressed that, before an instrument is purchased, a contract is already in place for the resale of the Bank Debenture Instrument. Consequently, the Investors' funds are never put at risk. The trust account will always contain either funds or Bank Instruments of equal or greater value. After each transaction period, the profits are distributed according to the agreement and the process repeats for the duration of the contract. HOW OFTEN DOES THE PROGRAM DO TRANSACTIONS? Operations will take place approximately Forty (40) International Banking Weeks per year, with specific transactions taking place approximately one or more times per week depending on circumstances. Although there are 52 weeks in a year, there are only 40 international banking weeks, during which transactions take place. An International Banking week is a full week, which does not include an officially recognized holiday. However, this does not preclude that transactions may occur on short weeks that have a holiday. WHY ARE THESE "HIGH RETURNS WITH SAFETY" PROGRAMS NOT GENERALLY PUBLICIZED? The answer is that these programs have been available, though not widely known for years. However, because of the extremely high minimum requirements to enter them, only a few could qualify. The

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minimums have been 10 to 100 million dollars previously. Only recently have the smaller minimums been available, so that more can qualify, and yet have the opportunity to earn exceptionally high and safe profit yields. However, the Investor must be "invited in", to participate in these very limited enrollment programs. Individual programs can quickly become filled, and are then closed to further Investor participation. LEVERAGED TRADING PROGRAMS By leasing assets, usually in the form of United Sates government Treasury Bills, for a fraction of their face value, the ability to purchase and subsequently resell bank instrument in large quantities is possible. This is the principal on which leveraged trading-programs revolve. The leased assets provide the collateral against which the instrument are purchased and resold, with the entire process taking only one or two days to accomplish. The large profits produced by trading programs are created by the difference between the purchase cost and resale price of the instrument. Even with a net profit of four per cent per transaction, the process of buying and selling can be performed several times each week, providing for profits, which make the return on other investments pale by comparison. A four per cent profit produced just once weekly, for forty weeks, would total 160%. Most of these types of programs, produce more. By leasing assets, the profit is generated on a much larger amount of instrument, greatly increasing the total dollar profit. For example, if a four percent profit were generated on $100 million, the net profit would be $4 million. Leasing assets typically requires the payment of three percent of the face amount per month, in advance: to lease $100 million in assets would require the payment of $3 million. However, by using the leased assets, profits can be generated on $100 million worth of instruments ($4 million), not just $3 million ($120,000). Even if just one transaction occurred during the month, the profit created would exceed the cost of leasing the assets.

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HISTORY AND DEVELOPMENT OF BANK INSTRUMENTS Picture the world at war in 1944. All of Europe, except for Switzerland, is pounding its infrastructure, manufacturing base and population into rubble and death. Asia is locked into a monumental struggle, which is destroying Japan, China, and the Pacific Rim countries. North Africa, the Baltics, and the Mediterranean countries are clutched in a life and death struggle in the fight to throw off the yoke of occupation. A world gone mad! Economic destruction, mad, human misery, and dislocation exist on a scale never before experienced in human history. What went wrong? How could the world rebuild and recover from such devastation? How could another war be avoided? KEYNES, HARRY WHITE, AND BRETTON WOODS This was the world as it existed in July 1944, when a relatively small group of 130 of the western world's most accomplished economic, social, and political minds met in upstate New Hampshire at a small vacation town called Bretton Woods. John Maynard Keynes, the man who had predicted the current catastrophe in his book, The Economic Consequences of the Peace, written in 1920, was about to become the principal architect of the post-World War II reconstruction. Keynes presented a rather radical plan to rebuild the world's economy, and hopefully, to avoid a third world war. This time the world listened, for Keynes and his supporters were the only ones who had a plan that in any way seemed grand enough in foresight and scope to have a chance at being successful. Yet Keynes had to fight hard to convince those rooted in conventional economic theories and partisan political doctrines to adopt his proposals. In the end, Keynes was able to sell about two-thirds of his proposals through sheer force of will and the support of the United States Secretary of the Treasury, Harry Dexter White. At the heart of Keynes' proposals were two basic principles: first the Allies must rebuild the Axis Countries, not exploit them as had been done after WW I, second, a new international monetary system must be established, headed by a strong international banking system and a common world currency not tied to a gold standard. Keynes went on to reason that Europe and Asia were in complete economic devastation with their means of production seriously crippled,

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their trade economies destroyed and their treasuries in deep dept. If the world economy was to emerge from its current state, it obviously needed to expand. This expansion would be limited if paper currency were still anchored to gold. The United States, Canada, Switzerland, and Australia were the only industrialized western countries to have their economies, banking systems and treasuries intact and fully operational. The enormous issue at the Bretton Woods Convention in 1944 was, how to completely rebuild the European and Asian economies on a sufficiently solid basis to foster the establishment of stable, prosperous, pro-democratic, governments. At the time, the majority of the world's gold supply, hence its wealth was concentrated in the hands of the United States, Switzerland, and Canada. A system had to be established to democratize trade and wealth, and redistribute, or recycle, currency from strong trade surplus countries back into countries with weak or negative trade surpluses. Otherwise, the majority of the world's wealth would remain concentrated in the hands of a few nations while the rest of the world would remain in poverty. Keynes and White proposed that the United States supported by Canada and Switzerland would become the banker to the world, and the U.S. Dollar would replace the pound sterling as the medium of international trade. He also suggested that the dollar's value be tied to the good faith and credit of the U.S. Government, not to gold or silver, as had traditionally been the support for a nation's currency. Keynes concept of how to accomplish all of this was radical for its time, but was based upon the centuries old framework of import/export finance. This form of finance was used to support certain sectors of international commerce, which did not use gold as collateral, but rather their own good faith and credit, backed by letters of credit, avals, or guarantees. Keynes reasoned that even if his plans to rebuild the world's economy were adopted at the Bretton Woods Convention, remaining on a Gold standard would seriously restrict the flexibility of governments to increase the money supply. The rate of increase of currency would not be sufficient to insure the continued successful expansion of international

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commerce over the long term. This condition could lead to a severe economic crisis, which, in turn, could even lead to another world war. However, the economic ministers and politicians present at the convention-feared loss of control over their own national economies, as well as, run-away inflation, unless a "hard currency" standard were adopted. The Convention accepted Keynes' basic economic plan, but opted for a gold-backed currency as a standard of exchange. The "official" price of gold was set at its pre-WW II level of $ 35.00 per ounce. One U.S. Dollar would purchase 1/35 of an ounce of gold. The U.S. dollar would become the standard world currency, and the value of all other currencies in the western, non-communist world would be tied to the U.S. dollar as the medium of exchange. MARSHALL PLAN, INTERNATIONAL MONETARY FUND, WORLD BANK, AND BANK OF INTERNATIONAL SETTLEMENTS The Bretton Woods Convention produced the Marshall Plan, the Bank for Reconstruction and Development, known as the World Bank, the International Monetary Fund (IMF), and the Bank of International Settlements (BIS). These four would re-establish and revitalize the economies of the western nations. The World Bank would borrow from rich nations and lend to poorer nations. The IMF working closely with the World Bank, with a pool of funds, controlled by a board of governors, would initiate currency adjustments and maintain the exchange rates among national currencies within defined limits. The Bank of International Settlements would then function as a "central bank" to the world. The International Monetary Fund was to be a lender to the central bank of countries, which were experiencing a deficit in the balance of payments. By lending money to that country's central bank, the IMF provided currency, allowing the underdeveloped country to continue in business while building up its export base until it achieved a positive balance of payments. Then, that nation's central bank could repay the money borrowed from the lMF, with a small amount of interest and continue on its own as an economically viable nation. If the country experienced an economic contraction, the IMF would be standing ready to make another

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loan, to carry it through. BANK OF INTERNATIONAL SETTLEMENTS The Bank of International Settlements (BIS) was created as a new "central bank" to the central banks of each nation. It was organized along the lines of the U.S. Federal Reserve System and it is principally responsible for the orderly settlement of transactions among the central banks of individual countries. In addition, it sets standards for capital adequacy among the central banks and coordinates the orderly distribution of a sufficient supply of currency in circulation necessary to support international trade and commerce. The Bank of International Settlements is controlled by the Basel Committee, which, in turn, is comprised of ministers sent from each of the G-10 nations' central banks. It has been traditional for the individual ministers appointed to the Basel Committee to be the equivalent of the New York "Fed's" chairperson controlling the open market desk. WORLD BANK The World Bank, organized along more traditional commercial banking lines was formed to be "lender to the world" initially to rebuild the infrastructure, manufacturing and service sectors of the European and Asian Economies, and ultimately to support the development of Third World nations and their economies. The depositors to the World Bank are nations rather than individuals. However, the Bank's economic "ripple system" uses the same general banking principles that have proven effective over centuries. THE TIE THAT BINDS THE BANK OF INTERNATIONAL SETTLEMENTS AND THE WORLD BANK The directors of both banks are controlled by the ministers from each of the G-10 countries: Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and Luxembourg. BRETTON WOODS UNDER PRESSURE By 1961, the plans adopted at the Bretton Woods convention of 1947 were succeeding beyond anyone's expectation, proving that Keynes was

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right. Unfortunately, Keynes was also right in his prediction of a world monetary crisis. It was brought on by a lack of sufficient currency (U.S. dollars) in world circulation to support rapidly expanding international commerce. The solution to this crisis lay in the hands of the Kennedy Administration, the U.S. Federal Reserve Bank, and the Bank of International Settlements. The world needed more U.S. Dollars to facilitate trade. The U.S. was faced with a dwindling gold supply to back such additional dollars. Printing more dollars would violate the gold standard established by the Bretton Woods agreements. To break the treaty would potentially destroy the stable core at the center of the world's economy, leading to international discord, trade wars, lack of trust and possibly to outright war. The crises was further aggravated by the belief that the majority of the dollars then in circulation was not concentrated in the coffers of sovereign governments, but rather in the vaults or treasuries of private banks, multinational corporations, private businesses and individual personal bank accounts. A mere agreement or directive issued by governments among themselves would not prevent the looming crisis. Some mechanism was needed to encourage the private sector to, willingly exchange their U.S. Dollar currency holdings for some other form of money. The problem was solved, by using the framework of a forfait finance, a method used to underwrite certain import/export transactions, which relies upon the guarantee, or aval, (a form of guarantee under Napoleonic law) issued by a major bank, in the form of either documentary, or standby letters of credit, or bills of exchange, which are then used to assure an exporter of future payment for the goods or services provided to an importer. The system was well established and understood by private banks, government, and the business community, worldwide. The documents used in such financing were standardized and controlled by international accord, administered by the members of the International Chamber of Commerce (ICC) headquartered in Paris. There would be no need to create another world agency to monitor the system if already approved and readily available documentation, laws, and procedure provided by the ICC were adopted. The International Chamber of Commerce is a private, non-governmental, worldwide organization, that has evolved over time into a well recognized organized, respected and, most of all, trusted association. Its members include the world’s major

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banks, importers, exporters, merchants, and retailers who subscribe to well-defined conventions, bylaws, and codes of conduct. Over time, the ICC has hammered out pre-approved documentation and procedures to promote and settle international commercial transactions. In the ICC and forfeit systems lay the seeds of a resolution to the looming crisis. Recycling the current number of dollars back into world commerce would solve the problem by avoiding the printing of more U.S. dollars and would leave the Bretton Woods Agreement intact. If currency, dollars, could be drawn back into circulation through the private international banking system and redistributed through the well known "bank ripple effect", no new dollars would need to be printed, and the world would have an adequate currency supply. The private international banking system required an investment vehicle, which could be used to access dollar accounts, thereby recycling substantial dollar deposits. This vehicle would have to be viewed by the private market to be so secure and safe that it would be comparable with U.S. Treasuries, which had a reputation for instant liquidity and safety. Given the "newness" of whatever instrument might be created, the private sector would prefer to exchange their dollars for a "proven" instrument (United States Treasuries) but selling new Treasury issues to the world would not solve the problem. In fact, it would exacerbate the looming crisis by taking more dollars out of circulation. The World needed more dollars in circulation. The answer was to encourage the most respected and creditworthy of the world's private banks to issue a financial instrument guaranteed by the full faith and credit of the issuing bank, with the support from the central banks, lMF, and Bank of International Settlements. The world's private investment and business sector would view new investments issued in this manner as "safe". To encourage their purchase over Treasuries, the investor yield on the new issues would have to be superior to the yield on Treasuries. If the instruments could be viewed as both safe and providing superior yields over Treasuries, the private sector would purchase these instruments without hesitation. The crisis was prevented by encouraging the international private banking sector to issue letters of credit and bank guarantees, in large denominations, at yields superior to U.S. Treasuries. To offset the

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increased "cash cows" to the issuing banks, due to the higher yields accompanying these bank instruments, banking regulations within the countries involved were modified in such a way as to encourage and or allow the following: 1. Reduced reserve requirements, via offshore transactions. 2. Support of the program by the central banks, World Bank, IMF, and

Bank of International Settlements. 3. Off-balance sheet accounting by the banks involved. 4. Instruments to be legally ranked "para passu" (on the same level)

with depositors’ funds. 5. The banks obtaining these depositor funds, would be allowed to

leverage these funds with the applicable central bank of the country of domicile, in such a way as to obtain the equivalent of federal funds at a much lower cost. When these "leveraged funds'" are blended with all other accessed funds, the overall blended rate cost of funds to the issuing bank is substantially diminished, thus offsetting the high yield given to attract the investor with substantial funds to deposit.

The bank instruments offered to investors were sold in large denominations, often $100 million, through a well established and very efficient market mechanism, substantially reducing the cost of accessing the funds, The reduced costs offset the higher yields paid by the issuing banks. MULTI-USE INSTRUMENTS Major commercial banks soon came to realize that these instruments could serve as more than a "funds recycling and redistribution tool", as originally envisioned. For the issuing bank, they could provide the means of resolving two of the bankers' major problems: interest rate risks over the term of the loan, and disintermediation of depositor funds. Bankers, now for the first time, had available a reliable method of accessing large amounts of money in a very cost efficient manner. These funds could be held as deposits at a predetermined cost over a specific period of time.

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96

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97

INSUFFICIENT GOLD SUPPLY Another significant change of the Bretton Woods Agreement came in 1971, when the volume of world trade using U.S. dollars as the medium of exchange, finally exceeded the ability of the United States to support its currency with gold. The restraints of the gold standard at $35 per ounce established under the Bretton Woods Agreements placed the United States in a very precarious position. As Keynes had predicted, there was not enough gold in the U.S. Treasury to back the actual number of U.S. dollars then in circulation. In fact, the treasury was not really sure how many paper dollars actually were in circulation. What they did know, however, was that there was not enough gold in Fort Knox to back them. The problem was that the U.S. Treasury was not the only institution aware of this fact. All G-10 countries were aware of this. If demand were placed upon the U.S. Treasury at any one time to exchange all the Eurodollars for gold, the U S. Treasury would have had to default, thereby effectively bankrupting the United States government France, the United Kingdom, Germany, and Japan were concerned about their substantial holdings in U.S. dollars. When just one of these countries demanded gold for dollars, then a meeting between ambassadors to the U.S. and the enquiring nation took place with Connelly, who was then Secretary of the U.S. Treasury, and Undersecretary of the Treasury, Paul Volker. Connelly listened to the ambassador and said, "I will answer you tomorrow". Nixon, Connolly, and Volker, in an ultra-secret weekend meeting with the brightest of the nation's bankers and economists gathered to ponder "tomorrow's" answer. Honoring the demand meant certain death to the U.S. as an economic super power. Not meeting the demand would have catastrophic results. Was there a way out? What if the U.S. unilaterally abandoned the gold standard and let its currency float in the market? Nixon and his advisors viewed the dilemma in terms of two mutually exclusive alternatives: increasing the value of U.S. gold reserves and maintaining a gold-backed economy, or considering the repercussions to the world's economies if the U.S. dollar were no longer backed by gold. To resolve the crisis, the U.S. needed to unilaterally abandon efforts to

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maintain the official price of gold at an artificial level of $35 per ounce, the same price that existed in 1933. Gold in 1971 had a market value of approximately $350 to $400 per ounce in the commercial world market, or about 10 times the official price. By letting gold seek its market price, the U.S. Treasury's gold would automatically become worth approximately 10 times its value at the official price. Under these circumstances, any government bank or private investor would have to exchange $350 to $400 U.S. dollars for an ounce of gold at the market price rather than one U.S. dollar to acquire 1/35th of an ounce of gold at the old official price. An ounce of gold would raise in exchange value by a factor of ten, and the U.S. Treasury's gold supply would increase correspondingly. In addition, once the gold standard established at Bretton Woods at $35 per ounce was abandoned, why reestablish it at $350 an ounce? The same problem would eventually arise again, and Keynes would be right again. Why not adopt Keynes' original idea of a currency, being backed by the good faith and credit of its government, its people, the national resources, and its production capacity? The United States needed to let its currency "float" in value against all other world currencies and not tie it to gold. Market forces would set the dollar's value through its exchange rate with other foreign currencies. Nixon and his advisors also realized that business worldwide had long ceased conducting international trade through gold and silver exchanges. Therefore, taking the dollar off the gold standard and allowing its value to float in relation to other world currencies would create currency risks for international trade transactions, but it would not preclude or stall international commerce. The world of international business had, in practice, already abandoned the gold standard years before, considering it cumbersome and unworkable. Moreover, the other Western nations had neither the economic nor military power to force the U.S. to honor its commitment to the gold standard and, therefore, could not prevent it from abandoning the standard. Based upon a clear understanding of these two interrelated realities, Nixon and his advisors determined to abandon the gold standard and allow the U.S. dollar to "float" in relation to other nations' currency. The

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exchange rate would no longer be determined by an artificially maintained gold standard, but rather by the value placed on each currency in the foreign exchange market NIXON AND KENNEDY The system for controlling currency supply, established by the Kennedy Administration, became an indispensable tool to the Nixon administration. The IMF and the Bank of International Settlements insured that the U.S. dollar would hold its value in the international market and was recycled from countries with a positive balance of payments back into the world economy. The illusion of U.S. dollar backed by gold was gone. The preceding information explains the use of bank instruments, as an alternative investment vehicle to United States government notes, and how and why the process of issuing bank instruments used in trading programs, began and continues to this day. RISK FREE CAPITAL ACCUMULATION by the means of participation in a BANK DEBENTURE FORFAITING PROGRAMS or PROFIT FUNDING (DEPOSIT) LOAN TRANSACTIONS In the United States of America the supply of money or credit regulated by the Federal Reserve, an independent body, which came in to existence by an act of congress in 1913 and in part by means of the recognition and authorization, granted by de International Chamber of Commerce and certain key International Money Center Banks. Money Center Banks comprise the top 250 banks worldwide, as ranked by net assets, long-term stability, and sound management. The Money Center Banks are also referred to as, the top 100 or fewer (as for example the Fortune 500 or Fortune 100), and are authorized to issue blocks (aggregate amounts) of Bank Debenture instruments such as, Bank Purchase Orders (BPO's),

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Medium Term Debentures (MTDs), Promissory Bank Notes (PBNs), Zero Coupon Bonds (Zero's), Documentary Letters of Credit (DLCs), Stand By Letters of Credit (SLC's) or Bank Debenture Instruments (BDI's), issued under the International Chamber Of Commerce (not to be confused with your local Chamber Of Commerce). The Money Center Banks are the worldwide regulatory body for the International banking community, and set the policies, which govern the activities and procedures of all banks conducting business at international levels. CAPITAL ACCUMULATION BY BANKS OF BANK DEBENTURE TRADING (FORFAITING) PROGRAMS (Reference ICC No. 600 revised 2006) Authority to issue a given allotment of the above-described banking instruments: over and above those regularly employed as an accommodation to customers regularly engaged in international trade: is issued quarterly for each issuing bank, according to the Federal Reserve's, or Central Bank's, review of each bank's portfolio. The prices of these instruments are quoted as a percentage of the face amount of the instrument, with the initial market price being established when first issued. Thereafter, as they are resold to other banks they are sold at escalating higher prices, thus realizing a profit on each transaction, which can take as little as one day to complete. As these instruments are bought and sold within the banking community the trading cycles generally move to the higher level banks to the lower (smaller) banks. Often they move through as many as seven or eight trading cycles, until they are eventually sold to a previously contracted retail customer or "Exit Buyer" such as a pension fund, trust fund, foundation, insurance company, etc., that is seeking a conservative, reasonable yield instrument in which they "park" or invest, for a certain period of time, the larger sums of cash they regularly hold. By the time, these instruments ultimately reach the "retail" or secondary market level they are of course selling at substantially higher prices than when originally issued. For example, while the original issuing bank might sell a "Zero" at 82 1/2% of its face value, by the time the "Zero" finally reaches the "Retail/exit" buyer it can sell for 93% of its face value. Since these transactions are intended for use by large financial

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institutions, they are denominated in face amounts commonly ranging from US $10 million, and up. For currencies other than US Dollars, usually Swiss Francs or German Marks, the Central Bank or other regulatory authority corresponding to the Federal Reserve of the country issuing the currency, uses similar procedures to control the availability of cash and credit in their own particular currencies. There has been a lot of interest expressed by persons seeking to learn more about risk free Capital Accumulation, by participating in a FORFAITING Program. Essentially we are discussing a Money Center Bank instrument or Bank Debenture Purchase and Resale Program, in which these monetary securities are bought at a beneficial lower price and then sold in the money markets, at a higher price, before, a transaction is committed to the traders, they always ensure that they have a guaranteed “exit sale”, whereby another party willing to purchase the bank debentures at an agreed higher price, at the conclusion of a number of trading cycles. If no Exit Sale is available and agreed to before the transaction starts, then no program will take place as the trader must always protect his position, and that of his clients. This, of course, is the ultimate safety factor for the client. This type of transaction is known as a FORFAITING PROGRAM, and is often referred to by insiders as a "trading program", because once a program is started, it will normally move through several cycles, accumulating profits at each trading cycle. The process is made possible because the trader commits to the purchase of many millions of dollars in either Bank Purchase Orders (BPO), or Medium Term Notes (MTNs), at a substantial discount off the face value of the securities. Sight Draft Letters Of Credit are pledged to secure the transaction and the discounted price of the bank instruments or bank debentures made available to the trader by the issuing Money Center Bank might for example, be as low as eighty cents on the dollar or less, depending upon market rates at any given time. The first transaction might have some other trader willing to pay eighty-three cents for the short-term use of the funds, which revert back to the first trader often in a matter of hours. Each trading cycle earns profits at

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a few cents on the dollar, but the transactions are in the millions of dollars, and when one considers the probability of four, five or more trading cycles per month, then it is not difficult to realize the profitability of this type of transaction. The internal trading of these banking instruments is a privileged and highly lucrative profit source for participating banks, and as a result, these opportunities are not generally shared with even their very wealthiest clients. It would be difficult, at best to entice investors to purchase Certificates of Deposit yielding 2.5% to 6% if they were aware of the availability of other profit opportunities from the same institution, which are yielding much higher rates of return. The banks always employ the strictest Non-Disclosure and Non-Circumvention clause in trading contracts to ensure the confidentiality of the transactions. They are rigidly enforced, and this further accounts for the concealment of these transactions from the general public. Participation is an insider privilege. As a result, virtually every contract involving the use of these high-yield Bank Instruments contain explicit language forbidding the contracted parties from disclosing any aspect of the transactions for a period for five years. As a result, there is difficulty in locating experienced individuals whom are knowledgeable, and willing to candidly discuss these opportunities, and the high profitability associated with them, without severely jeopardizing their ability to participate in further transactions. One needs to have the appropriate banking connections and relationships to control the transactions from the beginning to end. For this purpose, it is not uncommon to have: 1. A purchasing bank which represents the buyer (trader) on the

purchasing side of the transaction and which is also acting as the "holding Bank"

2. A Fiduciary, or "Pass Through Bank"

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3. An Issuing or "Selling Bank". 4. In addition, with most internationally acceptable bank instrument,

there is also an underwriting bank, or other major financial institution, and/or a top insurance company, or even a re-insurance company, involved in the issuance of these instruments.

In this manner, each bank is knowledgeable only with regards to its portion of the overall transaction, and receives a nominal and reasonable fee for its services, from its respective clients. Further complicating the structuring of profit-oriented programs involving the instruments is the differing tax and banking rules and regulations in various jurisdictions around the world. For example, in those jurisdictions where regulations may not permit banks to directly purchase these instruments from other institutions, or conversely where profitability may be actually enhanced through tax incentives, "Profit Funding (Deposit Loan) Programs" collateralized by bank instruments, have been developed to structure these transactions as loans, rather than simple "Buy and Sell" transactions. For example, in Germany, where progressive tax rates mitigate against high interest rates, the concept of an Emission Rate lower than the face value of the loan has been widely used to further enhance a lenders profit. Suffice it to say that a wide range of methods have been developed to maximize the net after-tax profit for all parties involved in such yields. THE KEY TO SAFETY AND PROFITS As is quite evident from the forgoing, the key to profitability of these Bank Instruments lies in having the contacts, initial resources, and wherewithal to purchase them at the level comparable to the issuing bank, and thus receive the maximum discount while also having the necessary resources and contacts to negotiate the instruments to the most profitable level of the retail or secondary markets. As one might imagine, those contacts are most zealously guarded by those traders regularly and commercially involved with these instruments. As a result, the real secret of successful participation lies not in the how, why, and wherefore of these transactions, but and more importantly, in knowing and developing a

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strong working relationship with the "Insiders", the principals, bankers, lawyers, brokers, and other specialized professionals who can combine their skills and run these resources into lawful, secure and responsible programs with the maximum potential for safe gain. As a result of years of successful associated business, our principals have established personal contacts, and sources of information, which can provide current, reliable information, regarding:

The constantly changing availability of Money Center Bank Instruments from the original issuers.

The sources of information, which can provide timely and reliable information regarding the ever-changing customers, in the "retail or secondary markets".

The ability to ensure the all-important exit sale.

Armed with this information, and the financial capacity to control a purchase and resale of these instruments, a window of opportunity is thusly made available to circumvent needless intermediaries, and to profit from the enhanced "spread", between the issuing price and the final retail price. "TOO GOOD TO BE TRUE" From time to time, a potential American or Canadian Investor, when first presented with the opportunity to participate in a Western European Capital Accumulation Program or Loan Deposit Transaction may be very skeptical about the existence and authenticity of such programs. This is quite understandable, but it invariably means that the potential investor is: 1. Not familiar with the profit opportunities that qualified European

Investors have enjoyed for the past 50 years. 2. Not at all familiar with the type of program proposed, and not able to

ask the right questions.

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3. Thinking he is being offered something for nothing, which as we all

know is absolutely impossible. 4. Saying to himself: "If this is such a good deal why don't the

Europeans keep it to themselves, why do they invite me to participate"?

5. Not really understanding the procedures involved, and the important

safeguards, which are in place to protect his/her/their invested capital at all times, against loss.

6. POTENTIAL INVESTORS HAVE ALL TOO OFTEN NOT TAKEN THE TIME TO

READ AND UNDERSTAND THE VERY COMPREHENSIVE LITERATURE, WHICH

IS ALWAYS PROVIDED TO THEM, BEFORE THEY ARE ALLOWED TO SIGN THE

RELEVANT DOCUMENTATION, AND, AS A RESULT, MAY HAVE RUSH TO THE

WRONG CONCLUSION, AND LOST AN IMPORTANT OPPORTUNITY. The truth is that there are no "smoke and mirrors" involved. All of the programs are conducted under the specific guidelines, set up by the International Chamber Of Commerce (ICC and your local Chamber Of Commerce is not affiliated), under its rules and regulations generally known as ICC 500. The ICC is the regulatory body for the world's great Money Center Banks in Paris, France. It has existed for more than 100 years, and exerts strict control on world banking procedures. The U.S. Federal Reserve is a very important member, but unlike most other central banks, operates independently of the ICC, and as a result, the vast majority of U.S. citizens have not been made aware of the moneymaking opportunities already available for fifty years to qualified European Investors through ICC-affiliated banks. However, it should be pointed out that a few major U.S. banks do participate from within their banking operations based in Switzerland and the Cayman islands, but they do not normally make their programs available to Americans living in the United States, and the chances are very great that your local branch manager has absolutely no knowledge of them, and may even deny their existence.

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Only the world's most powerful and stable Money Center Banks take part in these programs. At the end of each year, commencing on December 15th, the West European Money Center Banks engaged in FORFAITING and Deposit-Loan transactions close their counters to new transactions, and make commitments as to the types of programs and the amount of money that they will commit to those programs for the coming years. The first consideration for any participating-banking is always: 1. The preservation of the Investor's capital as the primary and

overriding responsibility. 2. Well secured and managed investment programs, with the potential

for high returns to the participating investors. 3. The constant maintenance of the client's confidentiality and trust

against any and all unwarranted intrusion from any unwelcome source. 4. The ongoing fiscal stability and ethical integrity of the European

banking structure. No runaway speculation in stocks or real estate, no inflationary fiat paper money supplies printed by an irresponsible debt-ridden government, and no politically inspired tinkering leading to savings and loan and banking collapses, or economic crashes, so as to endanger the overall investment and business environment, and the life savings of private investors.

Once the banks have defined the programs for the coming year they are made available to qualified individuals through principals, or as they are also known, "providers". The banks themselves are NOT allowed to take part in the management of the programs, this would lead to a massive cartel generating huge unregulated profits. The banks do, however, manage to make substantial profits from the program in the form of fees. Program management is the job of the Providers, and there are only a few of them in all the worldwide banking industry. The providers themselves are NOT allowed to trade, nor do business on their own behalf, so this presents an opportunity for qualified investors to

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take part and to profit as the initiators of the various transactions. Until recently, these privileged opportunities were not offered outside of the Western European markets, but as the world, economy has continued to grow, and more money that is real pours into the safety of West European markets they need to put this capital to work earning profits. This has allowed for the door to the opened for the first time to American and Canadian Investors and provides them with a unique opportunity to accumulate capital in a confidential manner, and to decide for themselves, how and where that capital will be disbursed. In the course of a calendar year, a number of programs are introduced by Money Center Banks in London, Antwerp, Amsterdam, Frankfurt, Vienna, Zurich, and other major West European banking centers. These programs are open only for as long as it takes them to become fully subscribed. Once the committed funds are exhausted then the program closes, and will not be re-opened that year. Each program comes with its own parameters and requirements, and will not be changed, nor subject to alternate proposals by potential investors. In every transaction, your funds are secured by Money Center Bank Guarantees. A Money Center Bank Guarantee is a collateral document, issued by the major West European Bank that is underwriting the transaction. This document absolutely and irrevocably protects the safety of your capital while it is taking part in a capital accumulation program, or FORFAITING transaction. COMMONLY ASKED QUESTIONS Some people say they have never found a program that work, how do we respond? A few people may tell you that in the past, a program they (or one a friend, or colleague) have entered did not perform. Therefore, the programs available do not perform, the programs presented have the highest likelihood of success. Other people say these programs do not exist, how can we convince them these programs are real? Only programs, which provide for a meaningful guarantee for principal,

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are considered. If there were no possibility for the loss of principal, why would anyone spend the time and effort to promote a sham that did not earn any money? There is a client who is a skeptic, how should they be approached? Full disclosure is made to the potential joint venture partner upon the receipt of Proof of Funds, Letter of Intent, and Letter of Authority. These three documents do not cost the client anything and do not put funds at risk. The client can then perform their own due diligence, including talking to the parties involved. In this way, the client is then able to convince themselves that the programs operate as stated. How do I explain my role in this to a prospect? You are in the role of finding joint venture partners and/or direct clients to participate in one or more Bank Debenture Trading programs. Your efforts are directed toward finding these joint venture partners. Why we cannot accept "up-front" fees? Fees taken in advance lead to a high degree of skepticism and in some states, nations, and territories, are illegal. How do we build trust in these programs? Once funds have been proven to exist t clients are encouraged to perform their own due diligence. By doing so, the clients are relying on themselves to gather the facts and make a decision. What about brokers we bring in? Other brokers under you will receive whatever portion of your commission you designate in the Agreement you sign with them. Are client references available? The transactions, which a client enters, are kept in the strictest confidence by all parties, which is consistent with a five-year period of non-disclosure contained in most joint ventures. Joint venture partners expect that since these transactions are not public, their involvement remains confidential. Similarly, a joint venture partner brought in by you would not want to be contacted by others considering becoming a joint venture partner.

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What exactly are bank credit instruments? Bank credit instruments are conditional bank obligations, similar to a check cashable under certain circumstances, issuer credit worthiness being the criteria. In these instances, they are general obligations of the issuing institution, without reserves for repayment being set aside. Stipulation is not as direct liability in the balance sheet but in the Notes to the financial statement of contingent liabilities. While not secured obligations, the implications would be quite serious for the banking industry if a major institution defaulted on any payment due, secured or unsecured. How is the investment (transaction) risk, contractually eliminated? Prior to purchase, at a known cost, contractually, there must be a buyer in place for a profitable resale. This buyer must have demonstrated proof of funds. If all these conditions are not met, there is no transaction, and hence, no loss is possible. Since the original purchase and resale are contractual, most executions are simultaneous, like a double escrow involving real estate. At all times, the commitment is either (1) 100% in cash, or (2) pre-sold instruments. Hardly any risk in either situation. Concurrent with the closing (instantaneous in most instances), any debt incurred to finance the purchase is paid off, the loans are on a non-recourse basis with the lender relying solely on the instruments held as collateral for security, a process called Forfaiting. There is no publicly available instrument even remotely comparable, why are not some of the largest institutions (pension funds and insurance companies) major investors? In addition, why have these instruments and programs never been the subject of articles in investment publications? Most money managers, oriented only toward commonly known investment are unaware and have not been exposed. Further, they do not realize the differences in (1) the type of investment vehicle. (2) how it is issued, (3) the frequency of the transactions. (4) the requirements

110

for investing, (5) how to perform due diligence, and (6) the lack of knowledge by the general public. Because of this lack of knowledge, the returns sound "too good to the true" when compared to public-type investments. In addition, reported sources of these types of instruments deny their existence, however, some of these institutions are investors, according to managers contracted personally. The main reason for this lack of knowledge is that all United States banks deny the existence of these programs, or dismiss them as frauds, even though the vast majority of the major banks there are doing this type of business in their foreign branches, mainly in Switzerland. There are only five domestic (in the States) issuers, all are large money-center banks and their abilities are known only at the highest levels, within the banking community (meaning that most banks are completely unaware). These issuers cannot acknowledge the existence of such programs because (a) they are concerned that Publicity about raising capital might be deemed a public offering and be subject to regulation by the SEC and (b) disintermediation (the switching by large depositors) from low-paying deposits to those with much larger profits. In addition, there are several other reasons, including that:

most issuers are European

the programs are privately offered, not publicly

intermediaries who introduce the programs are not banks

advertising for these Programs is by word of mouth

instruments are not subject to regulations of the SEC (and therefore do not appear in printed materials)

the issuance is irregular with different values

there is no visible exchange media with public quotations

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the large size of the offerings would not create public interest

there is no readily available referencing

the investors are anonymous in general, however, the Comptroller of the Currency has regularly testified that these instruments do not exist.

For all these reasons, there has never been any media exposure. No responsible journalist would publicize either the instruments or programs when the sources deny their existence and there is no supporting evidence. In fact, chaos would the end result if the programs or instruments became publicized. There would be the potential of regulatory problems and the disruption of established relationships with substantial depositors. Who are the most likely investor prospects? Any qualifying individual or institutions, including the managers of retirement and profit-sharing plans, insurance companies, trust companies, charitable trusts, corporations with surplus funds, savings banks, money managers, portfolio managers, investment bankers, private bankers, and business managers. What are the major attractions of this type of investment? The large returns are not even comparable to any other form of investment yet the security and liquidity offered is second only to the obligations of the United Sates government. GLOSSARY OF TERMS

The following, are definitions of terms that are commonly used in “this business”, many of which are terms will not be familiar to the ordinary reader. Therefore, the most important of these, are listed below. Best Efforts: A designation that a certain financial result is not guaranteed, but that a good faith effort will be made to provide the result that is represented. Bond: Any interest-bearing or discounted government or corporate

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security that obligates the issuer to pay the holder of the bond a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity. A secured bond is backed by collateral, whereas as an unsecured bond or debenture, is backed by the full faith and credit of the issuer, but not by any specified collateral. Collateral Provider: An entity, which has the contractual ability to purchase bar instruments directly from the issuer. Also known as Master Collateral Commitment Holders. Conditional S.W.I.F.T.: A method, which uses the Society for Worldwide Interbank Financial Telecommunications to transfer funds, conditionally, between banks, subject to the performance of another party. Contract Exit for Non-performance: A conditions in a financial agreement that enables the investor to take back his funds if the result represented is not achieved. Debenture: A general debt obligation backed only by the integrity of the borrower, not by collateral. Depository Trust Corporation (DTC): A domestic custodial clearing facility owned by all of the major banks and securities firms, which is monitored by various banking regulatory agencies and the Securities and Exchange commission. Draft: A signed written order by which one party (the drawer) instructs another party (the drawee), to pay a specified sum to a third party (payee). FORFAlTlNG: The process of purchasing at a discount registered bank "paper" which will mature in the future without recourse to any previous holder of the debt-generated bank paper. Glass-Steagall Act: A portion of the Banking Act of 1933, which prohibits banks from entering into the securities business and prohibits securities firms from accepting deposits. However, any security, which is issued or guaranteed by any bank, is not subject to the Securities Act of 1933. Therefore bank instruments, by virtue of being issued by a bank, are not considered a form of securities.

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International Chamber of Commerce (lCC): An international body, which governs the terms and conditions of various financial transactions worldwide, it is headquartered in France and has no affiliation with the local Chamber of Commerce offices. Key Tested Telex (KTT): An older form of transferring funds between banks using a telex machine, on which the messages are verified by use of key code numbers. (KTT is still used in many Arabic nations.) Leveraged Programs: Programs which use leased assets (such as United States government obligations) to increase the amount of instruments purchased and resold for a profit. The benefit of leased asset programs is that such programs generate substantially larger profits. Medium Term Note (MTN): When discussing bank-trading programs, a standard form of debenture with a term of ten years and an annual interest rate of 7.5 %. Also known as Medium Term Debenture (MTD). MT 103+ Field 23E: A means of irrevocably transferring funds, with specified terms and conditions, between banks, using SWIFT computers. Off-Balance Sheet Financing: The process where the liability is contingent (dependent on certain events). it is not listed as a liability, but typically appears in the Notes to the financial statement of the party. 108% Bank Guarantee: A written guarantee issued and payable by a bank, which provides for the return of the principal amount and eight percent interest. (This is seldom used any longer.) One-year Zeros: An obligation of a bank due in one year and sold at a discount from face value in lieu of an interest coupon. Par: Equal to the nominal or face value of a security. A bond selling at par is worth the same dollar amount as it was issued for, or at which it will be redeemed at maturity. Parallel Account: A separate account established at the transactional

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bank. Pay Order: Document, which instructs a bank to pay a certain sum to a third party. Such orders are normally acknowledged by the bank which provides a guarantee that the payment will be made. However, please note, effective as of 15 November 1996, none of these Pay Orders are allowed to leave the Issuing Bank. Safekeeping Receipt: A document issued by a bank, which obligates the bank to unconditionally hold certain funds separate from other bank assets, and returns them when requested by the depositor. In this way, the funds are not an asset of the bank nor are they directly or indirectly subject to any of the bank's other obligations or debts. Sub-Account (Segregated Account): Where an entity has established a relationship with a bank that includes the bank acting on the entity's behalf a sub account is opened to hold funds in the name of the entity's client. The funds can only be used according to the terms of a written agreement that is given to and approved by the bank. The funds are not considered an asset of the entity or the bank, and are not subject to the debts of either the entity or the bank if a safekeeping receipt is issued by the bank. Tranche: A specified part of a larger transaction. Each purchase and resale of a separate block of bank instruments in a trading group is known as a tranche. For example, a contract may the signed to buy 10 billion dollars worth of bank paper with an initial tranche (or purchase) of 500 million dollars. How and where that capital will the disbursed In the course of a calendar year, a number of programs are introduced by Money Center Banks in London, Antwerp, Amsterdam, Frankfurt, Vienna, Zurich, and other major West European banking centers. These programs are open only for as long as it takes them to become fully subscribed. Once the committed funds are exhausted the program closes, and will not be re-opened that year. Each program comes with its own parameters and requirements, and will not be changed, nor subject to alternate proposals by potential investors. In every transaction your funds are

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secured by Money Center Bank Guarantees. A Money Center Bank Guarantee is a collateral document, issued by the major West European Bank that is underwriting the transaction. This collateral document, absolutely and irrevocably protects the safety of your capital while it is taking part in a capital accumulation program, be it a Deposit-Loan, or FORFAlTlNG transaction. In many cases first time investors will, after complying with required procedures, and after providing the necessary documentation and proof of funds, are invited to travel to meet with the principal at the transacting bank and assure him/her self of the validity of the proposed transaction. This is before any money is placed in a commitment to a program. However, a fair word of warning: These programs are only for sophisticated and serious investors seeking to increase their wealth in a substantial manner. The information contained in this Chapter and in this Book, is for informational and educational purposes only, and is not intended, in any manner, as a solicitation, or an offer to sell or buy any form of securities. A WORD OF CAUTION Even though there are only a few reputable Deposit-Loan, and Forfaiting transaction, Programs available, there are a whole lot of unscrupulous individuals in this world, whom profess that they can get you in to these types of programs, when in fact, they do not know a small portion of the information that has just been revealed to you. (Every street broker / intermediary has a few “good sources” of their own, none real, nor valid.) The warning information that is posted on every major governmental web site, which deals with any type of financial, or monetary, aspects, is not because they want to discourage you from entering any real program, it is there as they state, as a Warning. Therefore, please read these, and pay heed to what they say – BE WARNED – and heed those warnings.

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“The determination to win

is the better part of winning.”

-- Daisaku Ikeda --

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HAPTER 10 - PUTTING IT ALL TOGETHER

FIRST THINGS FIRST The first aspect that needs to be addressed is that you must put a “Specific Plan of Action” together for yourself, for you to be able to benefit from these materials - Your Action Plan. In order to accomplish that task, one must first understand, “what can be accomplished”, and “how”, by what means, among other aspects. Therefore, let us do a little reviewing of the information that you have learned so far. Then, let us turn to some of the variables, with regards to the application of this information. From there, it is time for you to write your own “Specific Plan of Action”, for you to be able to benefit from these materials. WHAT YOU HAVE LEARNED This is just an overview of that information, not a recap. If there is any question that comes to mind, while we are going through the brief review, then please go back, and look up that information again. This is important for you to do, because this is the forming of the foundation that you will build your own Action Plan from. 1. You have learned the History of Banking.

How, what is commonly referred to as the “banking and financial industry” began, from its infancy, through its many changes, to modern day.

2. You have learned the History of Money. How it all began and has evolved down through the centuries.

C

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3. You have learned about the History of Accounting. How and why it has come in to existence.

4. You have learned about Basic Accounting. Moreover, the “double entry” system this is used in modern day accounting practices.

5. You have learned about “debits” and “credits”. What the difference is and how to use them properly, in general terms. Always remember that any “debt” is not a “debit”, it is a “credit”, and they should always be treated as such. Keep debt out of the debit column. Likewise, if your are “credited” for anything, such as cash, this is not a “credit” to you. It is actually a “debit” in your accounting books. You have also learned that you must “balance” the debits and credits. DEBIT - what comes IN, and CREDIT - what goes OUT. It is extremely crucial, that the IN (debit) and OUT (credit) are perfectly “balanced” (equaling zero in the middle) at all times, with no excuses for not doing this. We cannot over emphasize this point.

6. You have learned about the Money Basics. The different Types of money, and how they are controlled.

7. You have learned about the Modern Day Banking System. The different Types of Banks, including the Big Ones, and their functions. You have also learned how it all works, under the Fractional Reserve

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Banking System, which is what is in present use within most nations, including the “rub”.

8. You have learned about the World Bank Group, their different Agencies, and Money Supply.

9. You have learned about Bank Debenture Trading Programs (PPP).

The History and Development of Bank Instruments, Present Time Value of Future Money / Debt, and, how programs really work, including how to part in a capital accumulation / capital enhancement programs, be it a Deposit-Loan, or Forfaiting transaction. Furthermore, you have been “cautioned”. Heed the Caution, please.

10. You are now learning “how to put it all together”. 11. After this Chapter, you will learn about a certain point of view,

concerning many aspects of “Presentments”, which should not be construed as any form of professional legal advice.

12. Then, we will address the concluding issues. If you have any questions in your mind, now is the time to go back over that particular information, and, several times, if you need to do so, to be able to gain a basic understanding of this information. THE VARIOUS POSSIBILITIES THAT ARE AVAILABLE If you are already involved with any aspect of private placement activities and/or any of the associated activities, then you are probably already “networking” with others that are also involved in these types of activities, including, but limited to, PPP, Currency Swaps, Precious Metals selling and buying, the attempted purchasing and/or sales of many different types of bank instruments, even a bit of, so called, sovereign debt, at times. There are many possibilities available to you. Most of which, are only fabrications of someone’s imagination, but, there are a few good deals out there, but, they do not come in every day.

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Here is where logic and what you are presently learning, comes in to play. When you receive an offer, for this, or that, take a close look at it, then, ask yourself, does this sound real, and do-able, according to what I presently know? On the other hand, is this just a fabrication of someone’s dreams? The latter, being more realistic, in most cases. For your own understanding, let me give you a few generalities, as to how, commonly, most of these types of transactions take place: Capital Accumulation / Capital Enhancement Programs, in the form of Deposit-Loan, or Forfaiting, transactions (PPP) – These are extremely difficult to get in to at present, but there are still a few in operation. Their initial criterion is scanned color copies of a recent account statement and the account signatory(ies) passport(s), scanned directly from the originals, at 300 dots per inch (dpi). Nothing needs to be signed by any bank officers, and better if not, just think to yourself, when is the last time that you have received a monthly account statement that has been signed by your bank office? Never, will be the general answer. Those are all that is needed, initially, no other documentation is required for the initial due diligence, on the funds, and the account signatory(ies). Cash only, because lines-of-credit are now scarce, or very limited in scope. If your potential client cannot provide these simple documents, for any reason, for the required initial due diligence process, then, they do not qualify, it is just that simple. No excuses, and, no bank-to-bank checking. Currency Swaps – Here is where the vast majority of “brokers” cannot get this one right, 1) n the world at present, with few exceptions, commercial banks are

not allowed to hold more than just a few days’ supply of all types of currencies, even their own. Their excess is required to be deposited

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within their Central Bank, which issues them back a “credit”, because they have the “debit” in the Central Bank – the cash. Therefore, the commercial banks do not hold large amounts of cash.

2) Moreover, Central Banks do not keep much foreign currency reserves

within their own bank, either. Their excess is usually deposited in the Issuing Nation’s Central Bank (the nation that issued the currency), in what is known as a “nostril” account, where they can earn some interest on it, at least.

3) Under present International Regulations, the Issuer of any Currency is

the true Owner of the currency that they have issued. If you have some of it, either in your pocket, or in your bank, you are only the Custodian of that currency.

Where is this all leading? This – just as an example, let us say that you, through your connections, have located a potential client, let us say in Russia, who wants to exchange their Dollars for Euros. They actually have two choices,

A. Request their own Commercial Bank, where their Deposit is located, to do this work for them, which is the most logical choice, because of the reasonable exchange rates.

or B. Make a private request, which normally costs much more, which is

logical, if the initiating entity is looking for an extremely large discount in the exchange. (However, in most cases, this is just some type of money-laundering operation, of ill-gotten gain, which you do not want to get involved with, ever.)

Now, most brokers honestly believe that this can be accomplished by means of exchanging SWIFTs, or by bank ledger-to-ledger, which is a complete fallacy, because both sets of funds (the USD and the Euros) to be exchanged, are not actually in either Commercial Bank. It is IN, or has been credited to, their respective Central Banks, and, they have been

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issued back a “credit” for that deposit within their Central Bank, which, normally, bears a small amount of interest. Therefore, the Commercial Banks do not have the actual cash, to be able to do this type of transaction, between themselves. Therefore, this is what must happen, to be able to accomplish these types of currency swap transactions, especially in large quantities: 1) The Initiator must acquire permission from their Commercial Bank for

them to be able to accomplish their desired currency swap. 2) Their Commercial Bank must acquire permission, along with a

Clearance Code, from their Central Bank. 3) Their Central Bank must acquire permission, along with a Clearance

Code, from both of the other Central Banks involved with this swap transaction, the New York Federal Reserve, for the Dollars, which administrates all USD outside of the States, and, the EU Central Bank, for the Euros. This may appear to be a bit complicated, but, in actuality, it is not, if the Central Bank of the nation where the swap is to take place, has enough currency of both types on deposit with the other two Central Banks. Even if the Central Bank of the nations in which the swap to take place, does not enough on deposit with the other two respective Central Banks, it is still a relatively simple matter to achieve, because Central Banks communicate between themselves on a regular basis, and the swap is an evenly balanced interchange of currencies.

4) Once the approvals are granted, along with the respective Clearance Codes, then, the currency sway / currency exchange, only take a matter of minutes to accomplish.

On the private side, these types of currency swaps / currency exchanges are not easy to accomplish, because there is a whole lot of explaining that must take place, just to begin with, along with a whole lot of declarations.

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However, this is possible to achieve, with the assistance of the right people, so, do not get discouraged. Precious Metals selling and buying – Here, again, is where the vast majority of “brokers” cannot get this one right, either. The vast majority of precious metals selling and buying, especially in large quantities, are done under, what is commonly referred to as, Swiss Procedure, or some slightly modified form, thereto. The true value of precious metals is not in the metal itself, which is difficult for most people to believe, but, it true. The real value of precious metals is in the bank instruments that are placed in the bullion bank, which are bankable, which is backed by the precious metals involved. Here, take note, under present regulations, these bankable documents, expire every five (5) years, or become out dated, and must be renewed, even if the precious metals are sold. If these documents have not been renewed, then you are looking at a “dory” sale and purchase, which is purchased at deep discount under the normal “Second Fixing of the London Bullion Market Association (LBMA)”. Therefore, most real sales and purchases of precious metals, transpire within the bullion bank, which are holding these documents. Preliminary agreements, which normally consist of a Full Corporate Offer (FCO), or a Soft Corporate Offer (SCO), being issued by a, supposed Seller, or Seller’s Mandate, with an acceptance thereof, as a Letter of Intent, or Ready, Willing, and Able (RWA) is returned to the Seller, or the Seller’s Mandate, by the supposed Buyer, or the Buyer’s Mandate, most of which, is not true, which we commonly refer to as, Fishing Expeditions, someone just looking for what they can find, they attempt to fill the other side of the equation, making a handsome profit in the middle, which, again, is only fabrication of someone’s imagination, their hopes and dreams that never transpire, because of this, or that. False Offers, either way, in precious metals sales, never work out.

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Well, anyway, if the Full Corporate Offer (FCO), or Soft Corporate Offer (SCO) is accepted by both sides, then, a meeting is arranged within the Seller’s Bullion Bank, which is where the Bullion Documents are kept. No Intermediaries are allowed inside of the Bullion Bank, so, get your Fee Payment Agreements (FPAs) signed beforehand, along with a certified true copy of your passport, or any other form of internationally acceptable identification, because all of the Intermediaries must be approved by both sides of this transaction, no exceptions. Moreover, do not even attempt to appoint a Pay Master. That person can never pay you, because you have not been “duly declared” to the bank and banking officers involved, by the presentation of your certified true copy of your internationally acceptable identification, therefore, even an attempt to pay you later, is a violation of present money-laundering regulations, which no bank officer is going to allow, happen. You can never be paid from this transaction, ever, because you were never cleared, within this transaction, if you have not submitted your certified true copy of your internationally acceptable identification, before the transaction starts. One more aspect on the subject of Intermediaries, before we move on to what actually happens next, which is “greed”. We have an old saying, which says, “It is better to have a small piece of the cake, which can be eaten, than nothing at all” and, this is very true. It is much better to take 0.1% of a real transaction, than, 5% of nothing, which is exactly what is going to happen, in any type of financial transaction. Modesty is everything, especially in international financial transactions. “Greed kills Deals”, or so it is said, but, in actuality, the deals go through, without you. Once the Buyer and Seller are in the same bank, which I will explain to you in a bit, they must review the FPAs, between themselves, along with their bank officers, any amount, which is declared “excessive” is never paid. At word to the wise, take the 0.1%, and leave the 5% for the idiots. In addition, never try to be paid from both sides, or from a side that the Principal is not aware of your existence, until he is in the bank, because, if you even attempt to do either of these, you will never be paid.

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Now, is what you are going to see, from your vantage point, is the Seller’s Mandate and the Buyer’s Mandate, enter the bank. However, in actuality, the real Seller and real Buyer, are already IN the bank. Just look at it, with reality, if you were going to part with a good chunk of your gold, or cash, are you going to leave that up to anyone else, especially when the ICC 500 and 600 clearly state that all international financial transactions must be completed on a Principal-to-Principal basis? Hell, no, you are not! You are going to be right there, in the middle of the action, if you are real, that is. Moreover, that is exactly what happens. The Mandates sit in the “inside” lounge (in the secured section of the bank), drinking their coffee or tea, along with their cookies or biscuits, and the real Seller and real Buyer, are in the same secured section of the bank, with their respective bank officers, showing each other what they have, the money first, then the bullion documentation. If both are happy with what they see, then they sign a Billion Purchase Contract in the bank, which never leaves the bank. Two accounts are opened, both hold cash and paper (the bullion documents), the Seller deposits his bullion documents in his account, and the Buyer transfers in his cash in to the other. When both are in place, which normally takes a few days to accomplish, the Buyer and Seller return to the bank, with their bullion officers, without either Mandate, for their final inspection. If everything is satisfactory, the two accounts are exchanged, and a new ownership document is issued, which informs all that are entitled to know that are real sale has transpired. All reasonable, and accepted, intermediaries are normally paid a few days later, by the Principal on their side of the transaction, and, the payments are normally made in to a trust account, in an affiliated bank branch of the bullion bank, which will be in your name. You will have to come to that designated bank, to present your acceptable identification, and sign account opening documents. Then, follow my advice in the last sentence of this section. Buy / Sells (purchasing and/or sales of many different types of bank instruments) – These types of transactions are normally accomplished along the same lines as the above, with very few exceptions, on a private basis.

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On the commercial levels, including the wholesale secondary market, they use “settlement screens”, and, normally, not Euroclear, Bloomberg, Reuters, nor any of the other screens that they brokers believe they do. the usage of sovereign debt – As I have explained to you before, a “debt” is a “credit”, a negative factor, not a plus factor, as in an asset. Sure, many nations have issued sovereign bonds, which, in effect, are debt instruments, with a promise to pay, attached to them, and the vast majority of these, are presently in default, in some manner, or headed that way. There are those that profess that they are able to work against these types of instruments, but, I have not seen, nor heard of, any one, or any entity, which has been successful in this endeavor. However, I have seen many people “lose their fact” with different nations, by professing that they are able to work against a nation’s sovereign instruments. I do know that sovereign instruments can be, and are being, worked against, in a certain manners, by the Higher Authorities, which the ordinary Joe on the streets, cannot get involved with. If they do, they never are paid, anyway, so, why waste the time, energy, and effort, required to bring them in. However, that is only my way of thinking. There are entities that specialize in working with these types of sovereign, who have been very successful in doing so. Yet, this is a closely guarded area, which few are able to work in. As the old saying goes, “The Match King, Ivar Kreuger, tried, and, he died.”, and, I might add, with limited success, in the process. So, is it really worth a try? I, personally, do not believe so. However, if you are determined to try it, more power to you. Please note that there will be some real offers that do not fall within the above stated guidelines, but, these will be very few. With experience, you will be able to discern, which ones to quit working on, quickly.

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Now, a few words of caution in this area of international finance, absolutely, without exception, stay away from any type of “securities”, you probably are not licensed to work in this field, anyway. Moreover, never, ever, have anything to do with any type of “historical” anything, in any form. The reason “why” is that everything historical, even dormant accounts, are only IOUs, which were illegally issued, therefore not confirmable. If you can find any legality to any of these, then, it is not historical. Yes, some of the, supposed, Owners, and Holders, do have supporting documentation, but, none, that can be substantiated as to the actual source by which it came in to existence, and, even if they have, because the documents that they possess, were not issued under the rule of law in effect at the time of their issuance, they too, are illegal instruments, which are always denied, when asking for them to be authenticated and/or validated. It is much easier to say that these are “fake”, then to pay any, purported, outstanding debts. However, you do not need to take my word on any of this. The vast majority of historical, everything, is USD or USD denominated instruments, which, IF is a debt of the USA, must be publically posted on the Web Site of the Bureau of Public Debt, a Division of the US Treasury Department, so, take a look for yourself, their Web Site is easy to find. If what you are looking at, or being offered, is not there, forget it !!! If you even attempt to pursue the matter, you are going to end up with more troubles than what you never wanted to have, which is not a good position to be in. A few additional words of advice - heed this one for sure, if you ever complete one of these transaction, pay your taxes, keep your mouth shut, do not make any large purchases, which will raise “red flags” throughout the financial system, get out of this business, retire, start enjoying your life, wife, the children, their children, and, never, ever, think of this business, again. YOUR ACTION PLAN Okay, now is the time for you to start writing up Your Action Plan, with

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what you have learned here, and with what you have come to know to be true, and correct. The false stuff, you can throw in the circle file, the trash bin, and concentrate only on the good things that you receive, this will make your life a whole lot simpler, and much less stress. If you are already involved in this business, then you already have a lot on your plate / things to sift through. Therefore, it is time for you to get started. However, even if you are just getting started, you can use the following principles, to go over the new offers that you are about to get in. Either way, it is time to separate the grain from the chaff, so to speak, looking for those little specks of gold / the real things. 1. Sifting has two faces in this business activity,

A. the things that you know are no good, right from the start, and,

B. the things that you need to ponder over for a while, and do some

research on, to see if they are real, or not, depending on which way the wind is blowing at the time. (Things change.)

Those that are left over are the grain / speck of gold, something worth pursuing / processing further. (There is a pot of gold at the end of some rainbows, but not many.) A. the things that you know are no good

Even with the generalities that you have been shown in this Book, you will be able to make a good preliminary evaluation, and determination, of what is being offered to you. If what is being offered is not within these general guidelines, then throw it away, quickly, and do not waste any more of your precious time on it, but do keep them in a “Reference” file. You can never tell when it may be useful, in the future.

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(Please do remember that it is common courtesy to reply to all of your correspondence in a timely manner, and, to be truthful in doing so. Just simply say, what the person has offered to you, does not meet your preliminary guidelines, and, always thank them for sending their offer to you.)

B. the things that you need to ponder Some of the offers that you receive will look very good to you, when you go over them the first time. These put in a “Holding” file, then, when you have some spare time, go over them again. This time, examining every word, to make doubly sure that you understand exactly what they are saying, and that it follows the above guidelines. You have to examine everything, every word, in each offer, because some of them are cleverly worded to make the casual reader believe that they are a real offer, when, if fact, they are only a well contrived figment of someone’s imagination. Moreover, why, would anyone do that, you say? Well, the answer to that question is very simple, they do this in hopes of finding a real source of something, anything. If the offer that you are reviewing, does not meet the minimum criteria, stated in the first part of this Chapter, then, put it in your “Reference” file / folder for that year. You can never tell when you will want to use it for reference material later on. On the other hand, if your new offer does meet the basic criteria / guidelines outlined in the first part of this Chapter, then, possibly, you may have found the piece of gold that you have been diligently looking for.

One, very important aspect that you help you with your evaluation of any offer, is to look up the Principal’s Web Site, who was in the offer that was presented to you. This is not to cheat, or to try to circumvent anyone, also known as “playing leap frog”, because you never want to do that, it is just bad karma to do so, which will always

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come back on you. You are only doing this to see what the “supposed” Principal is actually doing, and, if they are a real entity. If they do not have a Web Site, which some, very high entitles do not have, then, Google them, to see if you can find anything negative about them, taking any negativity. Take any negativity that you find, with a grain of salt, because most negative information on the Web is just hate mail, where some one feels that they have been harmed, real, or imaginary, does not matter, you are only getting their viewpoint of that subject, and not an objective viewpoint, either. However, you are going to know if this Principal is real, or not, just from doing a little investigative work on your own. We will go through that process in following discussion.

2. Presenting the good offers that you have received and reviewed.

In the initial part of Presenting, you must Protect your Sources, after all, that is your very own proprietary information, so to speak, at this time, yet, not legally, because this information does not belong to you. Therefore, do not give all of the information that you have too quickly. However, be prepared to step back, and let the Principals work out the final details, when the time is right. The right time, will be explained to you in the following section, 3. Get your paperwork in order. Every industry has their own standards, and different countries have different rules that govern the different types of trading and financial activities in their jurisdiction. Traders, Agents, Intermediaries, Brokers, Buyers, Sellers, or whatever other term that the involved persons and/or entities may choose to identify themselves under, all will need to educate themselves on the proper and legal procedures for their industry and location, all of which change on irregular basis. These, you will come to know over the course of time. Stay up with all of the latest changes, the best that you possibly can do.

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WHOM you are Presenting to, has two faces, also: A. Presenting to those sources that you already possess, which you

feel are potentially good, and, B. Presenting to real sources, which you will need to find. Let us address each of these, separately: A. Presenting to those sources that you already possess.

The sources in this category, which you believe are real, are in fact, not tried, and tested sources. You really do not know for sure of they can produce good results for you, or not. These sources are normally acquired by word of mouth, which can, and cannot be a good thing, especially in intermediary circles, where it is common practice to lie to each other, to prove that the other person’s sources are much greater than your sources. As the old saying goes, “the proof of the pudding is in the tasting.” This holds true for sources, not that you are going to “taste” any of them, it is just their results, the finished pudding, per se, which you will need to take a very close look at, exactly what these types of sources have really produced. One way of evaluating a prospective source, is by looking to see if they have on their Web Site, and see what they have posted on their Web Site, which is always very interesting to do. Now, here is the real secret, known only by a very few, with regards to real sources, who are actively involved in PPP, do not be surprised, if you do not find a Web Site for the source that has been recommended to you, if they are real. David Pxxxxx, of David Pxxxxx & Associates, one of the largest PPP traders on the planet, does not have a Web Site, “for privacy and security

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reasons”, and, neither does the McWilliams. Real traders, real providers of bank debenture instruments, and other real entities involved in the different forms of PPP, and the different aspects of what is generally termed as international finance, for the most part, do not have their own Web Sites, mainly because this can be, and normally is, construed as a violation of the “non-solicitation” regulations, as well as maintaining their own privacy. Therefore, it is a good indication, if they do not have their own Web Site. However, do not be discouraged, if they do. They may be very close to the real entity, which will be a person, and not a corporation, trust, foundation, or any other type of entity. Their entity is only their legal assistant. However, still remember, the proof is in the tasting of the pudding / seeing for yourself, what they have accomplished, which is tangible, if you are able to discover any of what they have been able to accomplish, in the first place. Most of this type of financial information, concerning completed transactions, is “classified”, in some form. Therefore, do not expect any of it, to be a matter of public record.

B. Presenting to real sources, which you will need to find. This, without doubt, will be the most difficult task that you will ever undertake, mainly, because of all of the deception that takes place in the marketplace today. It seems that every person that classifies himself or herself as one of the real intermediaries has direct access to one of the real traders, or a direct connection to a very high person in one of the national or international financial agencies, or more correctly, so they say. Exactly this fact is what is going to make the accomplishment of this aspect, so difficult. Therefore, IF you do have something that is really, really, good, something that you know for certain, is solid, I am willing to help you find the right direction in which to present it. Our email address is on the inside of the front cover of this Book, on the top of the Title Page - [email protected]. However,

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please do remember, I am semi-retired, busy writing my books, and I am not allowed to spend much time at the computer, therefore, I do not have much time for this type of activity, helping people find good sources. It would be unethical for me to give you direct access to direct sources, therefore, I am willing to give you access to a source, which is in directly in contact with a direct source. Furthermore, since neither I, nor our company, is not directly involved in your transaction, and we do not want to become directly involved in your transaction, either, I, nor our company, are not legally entitled to any commission, and we do not want one, anyway, just more for you and the others to share. However, please do respect what is stated in “A Special Request” towards the end of this Book. Nothing in life is free. In addition, I can only do try to assist you with this endeavor, on a best efforts basis, because, as I have stated, I am semi-retired, and things change.

In both of above stated, two faces, the presenting is exactly the same. Your presentation must be very precise, exacting, in every detail, with absolutely no alterations / sanitation of the originals, which you must present for initial evaluation. Presenting - When you present, you will be doing so, in three stages: A. Your Initial Presentation, for initial evaluation, which we are

going to cover in this section. And, then, if your presented offer is cleared and accepted,

B. You will need to “Get your paperwork in order.”, which is covered in section 3., below.

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When “3. Getting your paperwork in order.” is completed, and you have your signed paperwork back, then you will move on to the next stage of your presenting, which is:

C. To “Follow through.”, which is covered in section 4., below. So, let us now start with your “Initial Presentation”, for initial evaluation. Under present international security regulations, financial and securities intuitions are bound by the “know your client and their assets” regulations. Therefore, they must run preliminary security checks on all potential clients, and their assets being presented, no exceptions, no matter what the intended purpose. They must do this. Therefore, they have to be given, clear, precious, information, in these regards, from you to begin with, for them to comply with these international security regulations. If you are presenting exhibits in your initial presentation package, such as recent account statements, the passport copy(ies) of the account signatory(s), bank instruments, screen printouts, warehouse receipts, etc., these must be scanned directly from the originals, in color, at 300 dots per inch (dpi), and put in to “jpeg” format, and, do not even attempt to “cut and paste” anything on them. It will show up, and you will be thrown out, permanently prohibited from having anything to do with this business, ever again. Remember, they need to do the preliminary security checks on the potential client, there they are going to need (1) a scanned color copy, or copies, of the Principal(s), and, (2) a scanned color copy, or copies, of the assets that they are presenting, in their offer. Please note here, that initial offers, even in contractual form, are only “soft” / “preliminary” offers, these may be presented in any format that you have received them in.

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Just to recap what you are going to present, initially, you will be presenting three aspects of required documentation, in your initial presentation: (1) a scanned color copy, or copies, of the Principal(s) / their internationally acceptable identification, and, (2) a scanned color copy, or copies, of the assets that they are presenting, in their offer, and, (3) their offer / what they want to have done. Once presented, it normally only takes hours, for you to receive back a response to your initial presentation. Now, you cannot appear to be “shopping” this information around. Let me assure you, here and now, when an offer is first presented in to the open market, it is not unusual for it to appear from many different directions, at the same time, or within hours of each other. This, I know from my own personal experience, and, we always go, with the first one that was presented. Therefore, you will need to do three things, quickly, to assure that this does not happen: (a) You must make a quick preliminary evaluations of the offer that you have just received. You do not have much time to do this preliminary evaluation work. So, do it quickly. (b) If it appears to be good, then, (i) you will need to ascertain, just how close the person who presented this new offer to you, is to the actual Principal. In addition, (ii) you will need to explain to this person that, if he gives it to anyone else, other than you, it will certainly hit the broker chains, and will probably be discredited as not being real by any real source, because everyone, normally, has to make their own modification to the offer, to suit what they want to accomplish. So, please, just give you a little bit of time, not more than a couple of days, at the most, to see what you can do with their

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new offer, as you have some excellent sources. They will normally accept this. (c) If you get a positive response to (ii), then, you will need to get your initial presentation completed in quick order, and, get it presented to a reliable source, as quickly as you possibly can. One aspect that I would like to cover at this point is, never, ever, even attempt to circumvent any other person / play leap frog, in this entire process, because communication lines are built on trust, which are usually acquired over long periods of time. It is not ethical to do, and you never get good results from even attempting to do so. Just because a persona that you have been introduced to, through one of your contacts, appears to be friendly to you, they will always revert back to the trust factor that they have in the other person. Then, your jig will be up, even if you attempt to jump that other person’s direct communication line. It is just bad karma, and in the end, you will end up with nothing. Always, maintain the lines of communication, exactly as they are, do not ever attempt to inject yourself in between them, if you even attempt to do so, you will find out what the real meaning of “being between a rock and hard place” is all about, which is not a very comfortable situation to be caught in.

3. Get your paperwork in order.

Once you have received your preliminary approval, you will start to be pushed for all of the contact information that you possess, but this is not the time to give that information up, not yet, because you still have some very important paper work to do, and be signed. You need to request, or present: 1. FPA (fee protection agreement), and, remember not to get greedy. 2. NCND (non-circumvention and non-disclosure agreement) If you do not have either of these, just “Google” them. There are plenty of them on the Web. Pick the best ones and combine them.

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In addition, before you sign any of these two documents, review the sub-section, “PART VI – POSTAL POWER”, in this Book. Now, if you are expecting to become directly involved with this transaction, and are expecting to be paid a fee, never attempt to take any type of retainer, consulting fee, or any other type of upfront fee, and, never, ever, try to cut your commission from both sides of any transaction, it is illegal for you to even attempt to do so. Moreover, be aware of this – “ Non-Circumvention Non-Disclosure Agreement (NCND): An agreement between two or more parties specifying that none of the parties will go around each other to transact directly with the originator of the transaction, nor will any of the parties disclose the particulars of the transaction covered by the agreement. The terms of the agreement normally include a specified period of time during which the agreement will remain in force, and make allowances for disclosure on the part of one party to the agreement with written permission from the other parties. NCND's are enforceable in civil court. NCND's are used for any type of transaction in which an agent wishes to protect his commissions and contacts, or when proprietary information needs to be kept discreetly between agreeing parties. The Scam: In the UNDERGROUND NETWORK NCND's are handed out right, left, and center. It is the very first request from one INTERMEDIARY to another. Often everything is crammed into one of these NCND's so that they may run several pages, with the signatory page being rife with parties to the agreement. Even commission figures are sometimes included, although commissions are part of a separate agreement in the normal course of business. One sure-fire way to spot a phony NCND is by a referral to the INTERNATIONAL CHAMBER OF COMMERCE (ICC) UCP500. The UCP500 is a booklet that outlines standard practices for DOCUMENTARY CREDITS and has absolutely nothing to do with NCND’s. ” – a direct quote from - http://www.fraudaid.com/ncnd_fraud.htm

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This Author’s, only comment to this “scam” claim, is – “I have never see any NCND that states relevance to the UCP 500, as stated above. However, I have seen plenty NCNDs that makes reference to binding arbitration “in accordance with the rules and through the institution of the International Chamber of Commerce” (ICC), such as this clause – “It is further agreed that any controversy, claims, and/or dispute arising out of and/or relating to any part of the whole of this agreement or breach thereof and which is not settled between the signatories themselves, shall be settled and binding by and through arbitration in accordance with the rules and through the institution of the International Chamber of Commerce. Any decision and/or award made by the arbitrators shall be final, conclusive, binding for the Parties, and enforceable in the Court of Law in the Country of choice of an award by the arbitrators.” One additional comment, before we move on to our next point, real sources, the real Principals, do not use NCNDs, because they are the Principals involved, and they cannot be circumvented, and the work that they do is never disclosed to anyone outside of the banking system, therefore, they have no real need to use a NCND, nor do they ever sign one, for any intermediary. Yes, inside of their agreement, if you ever get to see one, there is a standard NCND clause, which is only to lay claim against the “client”, should they disclose any of the proprietary information inside of the agreement. Therefore, this is another “clue” for you to be able to tell, if you are at the correct door, or not.

4. Follow through. Once you have your FPA (fee protection agreement) and NCND (non-circumvention and non-disclosure agreement) signed, sealed (if there is a corporation involved), and delivered to you, even by scanned copy initially, then, it is time for you to turn over the direct contact information, i.e., email address, phone number, mobile number, fax

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number, and physical address, to your source, so that the Principals can make direct contact with each other, for them to be able to work out all of their final operational details, and sign their operational agreement between themselves. (You can accept a color scanned copy of your FPA and NCND to begin with, but please make sure that, in due course, an original of each of these will be sent to you, even if this can only be accomplished in counter-parts, with the different parties having to sign different originals, and sending them to the other parties. You want to have this done, just in case, if you ever need to produce an original, or originals in counter-signed part, anytime in the future. This is extremely important to have accomplished, before your transaction starts, but it is not important enough for you to put your transaction on hold, over, either.) Turn over your direct contact information, then, stay out of the way, as it is said, curiosity kills cats, which is not a good thing. It will take them about a week, to two weeks, for them to be able to work out their operational differences, to meet together, and get their operational agreement signed. Then, they have to do all of their required filings, concerning their proposed transaction, which will take another two weeks to accomplish. Then, depending on the type of transaction, it will take them anywhere from a week, to two weeks, for them to be able to complete their first tranche / first stage of operations. Then, it will take them about another week, to ten working days, to get you paid. Therefore, in realistic terms, you are looking at a couple of months, before you will receive your first payment. Be patient – Rome was not built in one day, and neither is any PPP financial transaction. It takes time, with all of the requirements / hoops that they much endure in this time and age. Moreover, the thing that drives most Principals completely mad, is the constant demands of the intermediaries to have daily, if not hourly, updates. To demand this type of attention, when the Principals are busy doing their required filings, and duties, is completely ludicrous, and good grounds, for them to put you out, not legally, of course, but

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this still happens, all the same. So, please refrain from doing so. Please heed this advice, it is in your best interests to do so. This is not a case of the “squeaky wheel getting the grease” it turns in to the “squeaky wheel”, being replaced, or just thrown away, because the squeak was just too much to bear. You can immediately tell when this happens, because everyone will be notified that the transaction did not proceed, for this reason, or that, but, in actuality, it was completed, and they do not plan to pay any of the intermediaries.

5. Collecting. Now, YOU, they are going to pay, provided that you have attached the postal stamp, and signed your name over it, at a diagonal, as you were directed to do, in sub-section, “PART VI – POSTAL POWER”, in this Book. If you did not, sorry, you lose, with all of the rest of them. Being Circumvented is just another part of this Game. However, when you affixed that Postage Stamp, and signed diagonally across it, as you were directed to do, you moved the playing field, up to a much higher level, which very few, know anything about. Therefore, if you have not been paid, within a three-month period from the time that you relinquished all of the direct contact information, then, it is time, for you to start doing a bit more research, concerning your next step. May I be so bold as to suggest, starting with this Web Page? – http://www.real-debt-elimination.com/debt-elimination-tools/introduction_to_administrative_remedy.htm and, then, this page - http://www.real-debt-elimination.com/debt-elimination-tools/notice_of_international_commercial_claim.htm for your reading pleasure. YOU they will pay, if your do things right.

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International Standard Banking Practice International Standard Banking Practice (ISBP) for the Examination of Documents Under Documentary Credits, 2007 Revision for UCP 600, an update of the successful ICC Publication No. 645, reflects international standard banking practice for all parties to a documentary credit under UCP 600.

The Complete UCP Uniform Customs and Practice for Documentary Credits Texts, Rules and History 1920-2007 Written and Compiled by Dan Taylor The Complete UCP traces the history of the rules from their inception more than 70 years ago through their latest revision, UCP 600, which came into effect on 1 July 2007.

Uniform Rules for Collections - a Commentary This publication combines the text of the updated ICC Uniform Rules for Collections (ICC Publication No. 522) with comments on each Article by the members of the ICC Working Group who drafted the Rules. Each of the Rules is followed by the relevant commentary including points of interest and issues raised.

Unpublished Opinions of the ICC Banking Commission, 1995-2004 Unpublished Opinions of the ICC Banking Commission , 1995-2004, contains more than 120 Opinions, 109 of which have never been published in book form before, this volume includes Opinions decided on UCP 500, URR 525, UCP 400, URC 522, URC 322 and URDG 458.

Document Production in International Arbitration 2006 Special Supplement to the ICC International Court of Arbitration Bulletin Documentary proof is the principal form of evidence used in international commercial arbitration. As the quantity of documents produced increases, practitioners are today asking themselves how best to approach the document production process in arbitration. Document Production in International Arbitration addresses this crucial question by providing an overview of law and practice in different parts of the world and offering suggestions on how to achieve greater efficiency.

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~ Winning is great, sure,

but if you are really going to do something in life, the secret is learning how to lose.

Nobody goes undefeated all the time. If you can pick up after a crushing defeat,

and go on to win again, you are going to be a champion someday. ~

-- Wilma Rudolph --

145

HAPTER 11 - AND MUCH MORE

Okay, so you want to play the PPP Game, if you never remember anything else in your entire life, remember what is being discussed below. The following information may well save your bacon some day. There is a monetary value that comes in to play within the court system within the USA, which you need to be aware of, if you are ever summonsed to court there, for anything from a traffic violation to criminal prosecution, because you will need to be able to keep the accounting books balanced, in these regards, also. This same type of monetary value is also attached to most USA citizens, without their knowledge, nor their consent, according to the following information. THE FOLLOWING IS ONLY A POINT OF VIEW, WHICH IS NOT TO BE CONSTRUED AS

PROFESSIONAL LEGAL ADVICE.

PRESENTMENTS

This is private expression of personal perspective and is neither public disclosure nor a public offering. The materials set forth herewith are for educational purposes only. Nothing stated herein is intended as constituting legal advice and is not provided with any warrantees, express or implied. The content set for herein constitutes the opinions and understanding of the author. Accountability for the actions of anyone who utilizes any material set forth herein, in part or in whole, resides entirely with the user and is neither the actions nor responsibility of the author. Acknowledgment. This work is the product of the dedication, intelligence, and above all courage/risk, of many people. Some have paid, are paying, and are threatened with paying, with their property, freedom, and their very lives. It now appears that the numbers of such casualties in the cause of truth, freedom, justice, and peace are rapidly increasing. This work is dedicated to all those who share these values, in whatever way they perceive and think of them. Note: This article, such as every treatise of this type, must be regarded as “work in progress” that is subject to change without notice at any instant, based upon the acquisition of new knowledge, information, insights, and experience.

C

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PRESENTMENTS INDEX

Part I - Background, Context, and Underpinnings Part II - Attitudes and Actions Part III - Civil and Criminal Charges Part IV - Redemption in Court Part V - Court Bond Part VI - Postal Power Part VII - Esoteric knowledge

Dealing With Presentments

Part I - Background, Context, and Underpinnings

Whenever you receive a presentment of any kind, from a traffic ticket to a bill to a summons or indictment, there are two basic and diametrically opposite ways to think about the matter, i.e., you can think of receiving a presentment as an event that:

1. Will cost you, be a loss to you,

2. Is a gift that can enrich you.

Everything in life is a matter of perception. Our challenges are usually the result of ignoring what we are confronted with rather than endeavoring to discern how best to act with more adequate knowledge and understanding. We assume rather than know. Consequently, if we would have any chance of succeeding vis-à-vis a presentment, we must first have some basic understanding of the system within which the issuance, interpretation, and enforcement of presentments occur. The following mini-analysis of the legal system may be helpful in this regard.

In The I Ching is a remarkable statement: “The Superior Man goes only into his own domain.” As Frederic Bastiat said in a similar vein, “Minding

147

one’s own business is the only moral law.” The conundrum, of course, is how to live in peace and freedom in a world in which we are besieged by exercises of the interminable, relentless, longstanding, and incredibly brilliant schemes of rulership, slavery, and exploitation that have plagued humanity throughout history and that aggressively intrude themselves unilaterally into all areas of our lives - spiritual, emotional, mental, social, and economic. This renders living in a “live-and-let-live” manner on this planet difficult, and impossible without sufficient knowledge.

The fact that law consists of rules revolving around the use of deadly force is a powerful incentive to become as clear as possible concerning the nature of the legal/commercial system governing the world. We must remember, “To ‘assume’ makes an ‘ass’ out of ‘u’ and ‘me.’” In the case of law, acting on false knowledge, i.e., in ignorance, can be fatal. This is enormously complicated by the fact that the legal system is “colorable”, i.e., “phony”. It may appear real, but nothing is as it appears, just as in Alice in Wonderland.1 To assume that the appearance is genuine and dependable is to act on illusion instead of truth.

One cannot have peace with those who hold aggression in their hearts and are not interested in love, freedom, harmony, truth, or any of the other higher values of man that most people revere and would cherish seeing established in the community of man.

1 Alice in Wonderland was written as a satire on the legal system, where things are an ever-changing mirage and nothing is as it appears.

The state of the heart is what counts in this equation. “As a man thinketh in his heart, so is he.” Good people are disarmed in advance by an inability to comprehend the mentality of deliberate predators, usually regarding problems in dealing with such aggressors as misunderstandings that can be cleared up through sufficient communication. It is often not easy for good people to understand that there are those who know the difference between “good” and “evil” and deliberately choose the latter.

The significance of this in law is profound. If your adversary is sincere, truthful, fair, and honorable about what he is doing, i.e. interested in uncovering and dealing justly with the truth, then you are probably operating on parallel tracks. In such case, the discord or conflict is the

148

result of misunderstanding or lack of communication, and disappears when both sides realize what is happening. If, however, your adversary is operating from a covert stance with deliberate deceit, concealment, misrepresentation, bad faith, and aggression in his heart, the dispute is real, will not be resolved amicably, and requires exposure of the facts to the light of day by providing sufficient evidence. Further significance of the importance of subjective condition and intent of the heart is that all law is contract, and the essence and core of any contract is agreement. Without a genuine agreement, consisting of a true meeting of the minds and mutual understanding by all parties of all terms and conditions to which the parties are agreeing, there is no contract.

Derivatives and the Nature of the Legal System

The Powers-That-Be turn everything into a tool and a weapon to be used in their unceasing attempt to triumph by playing win/lose games against their fellow man. One of the most powerful, magical, and difficult to detect tools and weapons used against humanity by aggressors and exploiters is language. Allegedly the word “phonetics” derives from “phoen-etics,” purportedly stemming from the Phoenicians, who gave us “lan-goo-ag,” a word referencing a substance that, when fired from the canon of a ship, tore the sails and mast and left the opponent “dead in the water.” Obviously, words are extremely powerful weapons, and using them for conquest and rulership purposes is what the legal system is about. Ideas concerning the nature and use of language in law are set forth, inter alia, in a discourse entitled Legal Fictions, by Lon L. Fuller, 1967, Stanford University Press, Stanford, California:

The Fiction as a Linguistic Phenomenon – page 9-10 Ihering once said that the History of the Law could write as a motto over her first chapter the sentence, "In the beginning was the Word”.26 Students of the legal fiction might also take this motto to heart. For certainly it is a truth commonly overlooked that the fiction is “a disease or affection of language."

149

26 Ihering expresses in this fashion the exaggerated respect shown by early law for the written and spoken word. "Among all primitive peoples the word appears as something mysterious, a naive faith ascribes to the word a supernatural Power" (II2,441).

Anyone who has thought about the legal fiction must be aware that it presents an illustration of the all-pervading power of the word. That a statement, which is disbelieved, by both its author and his audience can have any significance at all is evidence enough that we are here in contact with the mysterious influence exercised by names and symbols. In that, sense the fiction is a linguistic phenomenon.

What Is a Legal Fiction? - Pages 4-5

The influence of the fiction extends to every department of the jurist's activities. Yet it cannot be said that this circumstance has ever caused the legal profession much embarrassment. Nonprofessionals frequently complain of the law: they very seldom complain that it is founded upon fictions. They are more apt to express discontent when the law has refused to adopt what they regard as an expedient and desirable fiction. Perhaps, too, the fiction has played its part in making the law "unrecognizable" to the nonprofessional. The very strangeness and boldness of the legal fiction has tended to stifle his criticisms, and has no doubt often led him to agree modestly with the writer of Sheppard's Touchstone, "the subject matter of law is somewhat transcendent, and too high for ordinary capacities."2

2 Preface (6th ed., 1791), p. xiii.

At another place, the only defense he can find is the doubtful one of recrimination, when he points out that the common-law fictions were no worse than the numerous fictions of the Roman law.13

13 Ibid., III, *107.

A Fiction Distinguished from a Lie - Page 7

Maine's classical definition of the historical fiction as "any assumption which conceals, or affects to conceal, the fact that a rule of law has undergone alteration…remains unchanged, its operation being modified,19” seems to leave room for the intent to deceive. The English courts were in

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the habit of pretending that a chattel, which might in fact have been taken from the plaintiff by force, had been found by the defendant.20 Why? In order to allow an action which otherwise would not have lain. If this fiction does not deceive, of what purpose is it?

19 Maine, Ancient Law (1861, Beacon Press ed., 1963), p.25. Cf. "the authorities... distinctly admit that fiction is frequently resorted to in the attempt to conceal the fact that the law is undergoing alteration in the hands of the judges." J. Smith, "Surviving Fictions”, 27 Yale L. Jour. (1917), 147, 150.

20 Blackstone, III, * 152.

It is easy to conclude uncharitably that the judge who enlarges his jurisdiction or who changes a rule of law under cover of a fiction is very coolly and calculatingly choosing to hide from the public the fact that he is legislating.

A Fiction Distinguished from an Erroneous Conclusion – page 8

A fiction is generally distinguished from an erroneous conclusion (or in scientific fields, from a false hypothesis) by the fact that it is adopted by its author with knowledge of its falsity. A fiction is an “expedient, but consciously false, assumption.21”

21 Vaihinger, Die Philosophie des Als Ob, 4th ed., 1920, p.130.

As living, physical, biological, sentient beings, we are real—we exist as aspects of existence. The system, on the other hand, is an abstract creation of the mind. It is in the realm of words, symbols, ideas, laws, contracts, etc., where the circuit exists through which the current (currency) flows in accordance with the rules of law and commerce.

Manifest existence emerges into form and substance out of the nothingness of the unmanifest. All creation, therefore, is derivative, the created is derived from the creator. Creator and created are different “meta-levels”, or “logical types”, from each other. The eternal absolute has no finite properties. From any relative perspective, the absolute is neither cognizable nor perceivable, and must be described in accordance with what it is not, such as “the void,” “unbounded,” “changeless”, etc.

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While the unmanifest is changeless, manifest existence is endless, non-repeating, unique, and non-repeatable change. It is not possible that any configuration of anything in creation is the same as it ever was, or ever will be, or will be a split fraction of a second later, or ever could be. As Heraclites noted, “No man can walk twice into the same river.” Everything is process in pattern, energy in motion in particular forms, orbits, paths, and circuitries that are at every infinitesimal instant unique. Furthermore, the further removed manifest creation is from the source, the more derivative and impotent it is. That which the mind, through sensory experience and all other relative processes, regards as “physical reality” that is solid, real, and substantive, is in actuality the most illusory. The more subtle, insubstantial, and elusive the level of manifestation one accesses, the more real and potent it is, since it is less derivative and closer to the Source. This can be illustrated by observing the history of science, perhaps most dramatically exemplified by the development of weapons. As man has gone from weaponry involving the gross physical (clubs, spears, catapults, etc.), to more subtle strata (such as the chemical level where gunpowder operates), towards the atomic and sub-atomic domains (atomic bomb and hydrogen bomb), toward the unmanifest field, the more energy is liberated.

Although neither the Absolute nor the Relative is actually cognizable by the mind, that does not stop just about everyone from engaging in the popular game of thinking otherwise. The mind forms concepts about the Source - none of which is either remotely a faithful map or the territory that it is purportedly mapping - as well as aspects of the Relative. To satisfy the mind’s “need to know,” man lives by the foolish idea that his conceptions of existence (whether of the Absolute or Relative) are true and that the fixed pictures, patterns, or conclusions derived from some finite vantage point (largely through acquired experience and sensory perceptions) have captured the thing itself. This is as silly as taking progressive snapshots of the ocean and its waves and thereby thinking that one has cognized and captured the ocean, or speculating from outside the door what is inside a room in which one is not present and living on the basis of one’s speculations as if they were absolute. This state of man’s development we call an “ego-conscious” state (as opposed to “unconscious” in which life is simply lived, or “Self-conscious,” in which

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man lives in conscious awareness of the Absolute and Relative as they actually are rather than as his mind thinks about or cognizes them).

The ego-conscious state, or mistaking abstract constructions of the mind for reality, and thereafter-building careers, institutions, “security”, and governments thereon is idolatry. It is idol worship, i.e., Baal worship. By giving credence and superiority to concepts about something (such as God), rather than the reality of the thing itself, one worships (pays homage to, reveres, and depends upon) graven images. Graven images of the mind are as many idols as, and indeed necessarily precede the construction of, any idols of wood or stone. Man’s penchant to think that he has cognized the un-cognizable, and, worse yet, mistake his own cognitions for that which he thinks he has cognized but has not, is not only idolatry but may be responsible for more discord, carnage, suffering, and wars than any other single aspect of human life. It might well be said that “God (eternal Source) created man in His own image (as a conscious, spiritual being with power to create), and man returned the compliment.” As Pascal quipped, “To die for an ideal is a pretty high price to place on conjecture.”

The goal of any Zen master, for instance, is to bring people to a conscious state where they no longer, in the words of Gregory Bateson, “eat the menu and leave the dinner”. Until one sees and lives reality as it actually is, he is mistaking what he regards as “reality”, i.e., what his mind (through the senses) perceives and thinks about existence, for reality itself. He mistakes the map for the territory.2 Since the senses are enormously limited, conclusions about reality reached by the mind are fantasy. The senses are liars and deceivers. We would perceive reality in a vastly different manner, for instance, if we could view existence throughout the entire electromagnetic spectrum instead of the extremely narrow range in which what we see as colors exist.

2 The central axiom of semantics is that “The map is not the territory, the name is not the thing named”.

The practical consequences of all this is that in man’s ego-conscious state he lives a fraudulent and fictitious life. It is one of illusions and delusions by living in accordance with the preposterous belief that his conceptualizations are both accurate and real, when they are neither.

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Man is not only lives, but relates with others (often dogmatically and violently), based on believing that, the imposter is genuine. Inasmuch as law itself is a subset of the workings of man’s mind, what else can law be other than that of which it is an expression, i.e., fictions and frauds? Moreover, since all of this occurs within and as derivative expressions of the ever-changing Relative, law cannot be other than ever changing.

A summary of the points and consequences of the above include the following:

1. Language has power and magic because of man’s ego-conscious state.

2. The Powers-That-Be deliberately utilize language and man’s ego-conscious condition for administering power and exploitation. The entire legal system is a word game, played by the designers and operators of the system for purposes of power, plunder, exploitation, and enslavement, with unending exercises of destructive physical force applied against living beings based on meanings artificially imparted to the words used.

3. Mistaking the different meta-levels of existence itself, i.e., mistaking the map for the territory, is not only delusion, but when it comes to law, it is disaster. “Authority” for using deadly legalized violence against one’s person is attached to the results of the error.

4. Our difficulties often arise from our acting in a manner that results in people enforcing the fictions and frauds by systematic and ruthless application of legalized violence, damaging the real us. Then whatever is happening in the system becomes substantive in our physical lives.

5. Everything in existence can be viewed, perceived, and thought about in an infinite number of ways, by an infinite number of beings, for an infinite number of possible reasons. Not only are no two of any of those things the same, but could not be identical even if anyone so wished. Concepts (maps) can be fixed, creation (the territory) cannot.

6. It is impossible in the ever-changing realm of creation for any subset thereof, such as a man, even remotely to fathom, comprehend, and know (let alone verbalize) “the truth, whole truth, and nothing but the truth.” We might define “Truth” (capital “T”) as the actual way things are, i.e., the “thing in itself”, to use Kant’s term, or in their “suchness”, to use a

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Buddhist characterization. This totality and actuality is not finitely knowable, both because of its unimaginable vastness and because no two split instants are ever the same. The same word designated as “truth” (lower-case “t”) might be defined as an accurate abstract mapping of something or event, such as if one is given a map that allegedly shows where a treasure is buried and digs at the spot indicated, he will either find, or not find, the treasure. If it is found, we say the map is “accurate” and the author thereof told the “truth”. If the treasure is not found, we say that the map was false or inaccurate and the author was either in error or lied (or someone removed the treasure subsequent to the making of the map).

7. Man’s capacity for mapping reality through creation of abstract symbols, such as numbers and words, is likewise derivative. Anyone can observe or think about anything and create/concoct whatever designation of letters, symbols, and sounds he may wish for classifying, categorizing, or identifying the particular thing and referencing it in his own mind and/or communicating it to others by speech, writing, or some other means.

8. The legal system, like reality, likewise consists of the flow of energy in accordance with the patterns of its design. In the case of the legal system, both the designer of the circuitries and the current that flows therein are different than that of given existence. With respect to the universe, the designer is the Creator (however anyone may think of the ineffable Source of all that exists) and the current that flows is universal energy that is ultimately unknowable and indefinable by any relative means. Concerning the legal system, the designer is man and the current that flows in the circuits of the system is called “currency”, i.e., “money”. There are very few types of legal entities existing today. They are fundamentally corporations, trusts, partnerships, and sole proprietorships.

The IRS Code at 26 USC 7701.01(a) lists seven classes of legal persons, the additional three to the four fundamental ones being an association, estate, and company. What defines each of these and distinguishes each from the other as well as determines how the system deals with them, is the schematic defining how the currency flows in the circuitry. Money embodies more laws and commercial principles than any other single

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thing, whereby insofar as the world is concerned it may reasonably be characterized as the measure of all things.

9. Legal terms and phrases are artificially imbued with the particular meaning and significance of those who define them. Legal terms have considerably different meanings than the same words do in ordinary parlance. The system, in short, is a word game. Words in law are artificially assigned meanings that are completely different than the meanings attributed to the same words in normal speech. Examples of this are legion, one of the most prominent of which is the word “person”, which in law refers to a legal fiction and does not, and cannot, pertain to a real being. This is why we need law dictionaries in addition to regular ones. The result is the legal system is its own language, concerning which we allegedly need translators and mouthpieces, called “attorneys,” for using the esoteric language that is not spoken by laymen when in a forum (such as a court) wherein legal language is spoken.

10. When language, symbols, and ideas, are usurped by those who would play win/lose games they are wielded as weapons. This phenomenon has grown to such gargantuan proportions that it is a scourge on humanity and blight on the planet that is destroying civilization and wrecking havoc on the Earth. Some of the reason things have gotten so far out of hand is that the capacity to create and use new derivatives is unending. There are derivatives of derivatives of derivatives, all freely utilized for exploitation, legal plunder, and power. Use of creating endless new derivatives at will is ever increasing. The situation is akin to an Internet site within which clicking to delete a current window causes several new pop-ups to occur until one’s open file is overburdened with open windows.

11. A few concrete examples of derivatives with respect to the legal system are as follows:

a. The system invents and uses contrived (derived) names, such as a host of variations of one’s all-caps name, all of which are legal fictions and each of which is a different entity, instead of one’s full appellation consisting of all lower-case, or upper- and lower-case, letters (symbolizing the real being). Therefore, whenever one receives a presentment, such as a summons or complaint, the document is not addressed, and does not pertain, to you, but to a legal entity, ens legis,

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that is some bastardization of your name in all-capital letters. In this manner, the system is freed from the requirement to deal with actual facts, and real beings, and can operate on presumptions, unsupported allegations, non-existent debts, stipulations in contractual interactions between legal fictions, and endless concoctions of the mind.

b. New case numbers are often created from the same case, such as by changing numbers or letters in the case, thereby enabling matters that you might submit in the original case, as well as any prior derivatives thereof, from needing to be addressed since they do not pertain to what you thought they did. It is also likely that the system uses each newly derived case to make yet more money.

c. Laws and administrative agencies multiply endlessly, with each new derivative used to make more money for those in the system while increasing the scope and severity of their power, and increasingly difficult to comprehend or counter.

12. In the 2002 Berkshire Hathaway (the company of Warren E. Buffet) annual report, on pages 13-15, appear the following words: “We view them [derivatives] as time bombs both for the parties that deal in them and the economic system….In our view…derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”3 If those in the system can create endless new derivatives out of all most anything, at any time, and use them for exploitation, enslavement, and moneymaking at the expense of those who are victimized by the monopolistic use of power under color or law, Warren Buffet’s statement is self-evident. Further, those who act in this way may be regarded as terrorists using weapons of mass destruction. They are raping and pillaging with ever-increasing profligacy and blatancy.

3 One can download the entire Berkshire Hathaway annual report in an Adobe Acrobat pdf format by going to: http://freedom-school.com/law/presentment-2002_annual_rpt.htm

In addition to inventing, using, profiting from, and destroying lives wholesale by the unchecked use of derivatives, the system rules without revealing the rules of the game. By means of undisclosed presumptions, the Elite have structured a scheme that is full of catch-22s, so that if we do not act we lose and if we do act, we lose. It is in the presumptions -

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not the “law” and the “facts” - where the power lies. The designers and owners of the system concocted it for the purpose of bettering themselves vis-à-vis others. The result is a monstrous beast of cosmic proportions, a ravenous and insatiable Moloch, which is an expression of a single - and simple - ethical choice, which is whether one chooses to play win/win games or win/lose games when interacting with others. The features of these two kinds of games are summarized as follows:

1. A win/win interaction is an expression of peace, dignity, love, unity-harmony, mutual good faith, absence of malice, deceit, and presence of all of the other elements of contract law required to formulate a genuine contract. Free consent of all parties is essential.

2. A win/lose interaction is an expression of separation, conflict, and disharmony, and never results in the contract the “winner” claims exists. In actuality, a “win/lose” interaction is non-existent, since even the “winner” loses. Such an apparent victor, causes harm to others, creation, and himself. He may think he wins, but in accordance with the inexorable laws of existence he “reaps what he sows”, incurs the corresponding karma (action/reaction or cause/effect act and their exact consequences) by harmful acts. The “Golden Rule” in existential terms might be expressed: “One who harms others harms himself,” or “That which one does unto others else shall be done unto him.” “He who lives by the sword dies by the sword.” A win/lose interaction in terms of nature is called the food chain—“law of the jungle”, “dog eat dog.” This characterizes law and governments today, in which is called the “law of necessity”. The law of necessity is actually no law (law is suspended to deal with the “emergency,” which the government itself causes to use as an excuse to abolish rights and increase its own discretionary power - witness the host of laws being passed these days, such as the “Patriot Acts”). In win/lose games there is no morality, nor ethics, and only one rule: just eat, baby.

Anything goes, since “the end (increased power and commercial enrichment of the perpetrators) justifies the means.” As a result, no win/lose interaction results in a valid contract enforceable at law. The involvement does not contain even one of the essential ingredients (all of which must exist in the interaction) of contract law to form a genuine contract.

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It is because the inner intent of the heart of those who have designed and masterminded this system over the ages is malevolent in some manner that the resulting Moloch is loosed to run amuck on the planet, devouring living beings, the rights, freedom, and ability to live in peace and harmony between people, and the Earth’s resources and ecological integrity. Indeed, the same gang has, throughout the ages, built up and destroyed at least seven (7) civilizations, or “Zions”, and is now in the midst of destroying the eighth, i.e., our civilization today. This is transpiring in the United States, for instance, at an accelerated rate. Among many other aspects of this are those through the use of zip codes the world’s nations with postal codes are divided up into quarter-acre lots (inventory) for liquidation. The world belongs to the ruthless, i.e., those who deliberately play win/lose power/exploitation games through interminable uses of legalized violence. The cardinal nature of the system today is that “everything skates unless you bust it.” I.e., the undisclosed presumptions based on which power is exercised are free to operate against you unchecked unless you neutralize them. As the maxim of law says, “When the law presumes the affirmative (existence and supremacy of the undisclosed presumptions), the negative (absence of any operational undisclosed presumptions) is to be proved.” 1 Roll. R. 83, 3 Bouv. Inst. n. 3063, 3090. Some examples of undisclosed presumptions of the system are: 1. (Foundational presumption) Everyone is a free will, sovereign being responsible for his or her own acts, thereby enabling law to exist at all. Without this presumption, no one could be held accountable for anything and no basis would exist for any rules or rectitude. 2. The system always wins and the people always lose. 3. The system can change the law, invent new laws, and alter interpretations of law and words at will (since it is all presumed to be their property). 4. Those in the system are not under any compulsion to reveal the presumptions based on which they function.

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It is impossible to play a game when one does not know the rules. If playing a game with those who not only know the rules thoroughly, but have carte blanche to change them at will, when one does not know what is going on, the result is a slaughter. It belies the quotation found in a law review: We hear of tyrants, and the cruel ones: But whatever we may have felt, we have never heard of any tyrant in such sort cruel, as to punish men for disobedience to laws or order which he had kept them from the knowledge. Harvard Law Review, Volume 48 1934-1935, p. 198.

Synopsis of the Problem

Our challenges when dealing with the system include the following:

1. The law is unlimited and no one can know it all.4

2. Law is always changing, so that at any point, something that previously was legal, recognized, and upheld might no longer be so.

3. The system does not belong to us, and changes perpetually without notice by those who own it.

4. There are an infinite number of ways to interpret any event and essentially any law (as those with experience in court can attest).

5. It is impossible to be assured that we know all the undisclosed presumptions based on which law functions.

6. The Powers-That-Be study and exploit every aspect of man’s nature, good and bad, with malevolent intent. Perhaps what they do, and the way they subjectively feel about what they are doing, is regarded by them as legitimate - or even worthy - or, even more, divinely mandated. In any case, when governed by this win/lose mentality the world becomes a nightmare. The dominating climate is not one of “live and let live,” peaceful and honorable intent, and harmony between people, but a perpetual war zone involving the need to live under a legalized-violence system that acts in accordance with the mentality that “the end (their self-aggrandizement and power) justifies the means (nothing is not permitted).”

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4 This foundational presumption may be the only presumption underlying the entire legal system that is existentially and ethically valid. The rest are fictions and frauds used for nefarious purposes.

Part II - Attitudes and Actions

Now that we have some idea of the challenge we face just by living in the world today, we can use the understanding to help formulate solutions. Ideally, success involves four (4) elements, which are, in largely chronological sequence: 1. Knowing and living who you are - your true self, convictions, and creed.

2. Articulating properly in documents that define who and what you are, with a witness (notary).

3. Noticing and securing confirmation from those who you would like to acknowledge your true self and standing.

4. Defending your position in adversarial encounters with the system - both in the field and in court.

The following are some practical ideas concerning actualizing effective strategy:

1. The most important thing is knowledge and understanding of what is happening. Therefore, the first priority is: Get Educated. There is no substitute for this, especially in the climate in which we now live. In the celebrated words of Thomas Jefferson, “If a nation expects to be ignorant and free, it expects what never was and never can be.” Primarily, getting educated requires knowing yourself, who and what you are, and becoming clear, confident, and established in yourself, your real being.

2. The nature of the times is escalating the timeless imperative to make one’s spiritual life paramount. Increasingly the state of the world is communicating the message that the only way “out” is “in”. Living in accordance with the understanding that cultivating and realizing our inner being, i.e., spiritual awakening and realization, is more important, enduring, and conducive to providing us with the happiness, peace, and

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fulfillment that alone will satisfy the heart and soul than anything we can see, do, experience, or have in the outside world. We all have two wars to win and opponents with which to deal: 1) ourselves (i.e., obtaining self-mastery) and 2) a hostile, deceitful, and treacherous world. If we do not win the internal battle and become clear about what we are and how/why we want to live, relate to others, and deal with the system, we have no hope of winning in encounters with the ruthless aggression to which we are relentlessly subjected.

3. In the absence of self-realization, we live at the expense of life. We expend time, effort, and energy attempting to acquire things in the outside world the essence and origin of which we do not possess in our own being and consciousness. In such case we “lose the roots and cling to the tree-tops”, where our platform of operation is ungrounded and ephemeral.

4. Live to be free of blame, where blame is defined as blocking someone’s way without just ethical cause. As it is said, “For blocking no one’s way, no one blames him.” If you do not interfere in people’s lives, you will not incur the repercussions for doing so, thereby immunizing yourself from having to deal with the entangling and undesirable consequences of your actions.

5. Stay in your own domain. If you do not traverse into your adversary’s turf, you do not create a nexus between you and them that allows the system to engulf you. Accomplishing this includes becoming clear about the nature of private and public, and when/how, you are acting in which domain. If you leave your ground of substance, reality, and sovereignty and go into their domain of illusion, treachery, and deceit, your situation is hopeless. By so doing, you abandon a position where you have power and they have none, in favor of going into a realm where they have all the power and you have none. The public side is their game and property, not yours, so you have no standing, rights, and power there. Your body is real and came first into the world before any fictitious version of your given, private name, or any birth certificate or other document, could be derived by the system to use for its betterment and your detriment.

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6. Be careful never to reach a point where you think you know enough or you “have it all figured out.” As soon as you think you have it, you have had it.

7. Understand as much of the law and the practice thereof as possible in terms of universal principles that transcend and are more fundamental than the system’s concoctions. Man’s law is a subset of and derives from principles that are more fundamental than, and endure beyond, all human imaginings. The further removed from universal principles we are, the more unstable, and unreliable, is our position. The observation of Emerson is apt:

As to methods, there may be a million and then some. But the principles are few.

The man who grasps principles can successfully select his own methods. The man who tries methods, ignoring principles, is sure to have trouble.

8. Change your thinking. If the thinking/perceiving ruts in which you have been confined and alter/revise/expand them. “Cast you nets on the other side of the boat” if you are not catching any fish on the side where you have heretofore been fishing. (See below.)

9. Never assume. Do not take anything they say or do at face value. Dig for the facts and substantiation in law for what you do. In the words of Gilbert and Sullivan, “Things aren’t always what they seem. Skim milk masquerades as cream.”

10. Create a paper trail and public record concerning as many aspects of your position as possible. This includes executing documents that articulate and declare your rights, identity, and standing, thereby shifting the burden of proof onto those who would deprive you of them. Establish and notice the proper parties of your position, sending color copies of your documents, preferably dispatched by a notary with a notarial certificate of service.

11. Whenever you are out and about, carry correctly colored pens with you, as well as postage stamps, rubber stamps, texts of various things to say in emergency contexts, and notarized, color copies of crucial rights-asserting documents. Be prepared.

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12. Collect dictionaries, perhaps all you can, both regular and law. Words are the weapons of this game. By understanding the meaning and legal significance of words you not only have revealed to you what your strategy and tactics can be to win when writing your documents (all legal documents are “paper soldiers” for fighting win/lose battles in a legal setting), but communicate in their language. The official dictionary in the US is Bouvier’s (they will not tell you this because of so many options available to you revealed in that law dictionary). Also, get the Oxford unabridged dictionary (available in diamond print with magnifying glass) for the extensive etymology of words.

13. Understand as much about the nature of the system as possible so you can use it to your advantage. This should include spending time in court observing diverse proceedings, paying attention to the interaction between attorneys and judges so you can perceive more clearly how the system functions to baffle the people.

14. Capitalize on the mentality of bureaucrats and what they understand, feel comfortable with, and offer you in the way of procedural options. If you relate to them in this manner you do not act outside the bounds of their job description and do not put them in the wrong. At the same time you secure their cooperation and let them do what they are familiar with, such as sending you documents or clarification to which you are statutorily entitled (which they often tell you in their correspondence, such as under this or that act you are entitled to such and so). Don’t confront them with anything hostile or outside of their niche and mentality,5 and certainly don’t require them to think.6

15. Since to bureaucrats reality is what exists on their computers, do not fill out any more forms than you have to, and do not answer and return questionnaires. Your answers get cross-referenced in innumerable computers, can be used to assemble a profile on you and everything about you, are often sold to marketing agencies so that you are flooded with unwanted offers, and fed into the system’s data base as more food for the Beast to consume and use against you. What is advisable to do is live your life as privately and off the radar as possible, and put out information you want bureaucrats to believe (and hence act on) as the truth about you and your activities (including information on your

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computers that leads them on rabbit trails away from you and your freedom).7

16. Play different agencies and aspects of the system against each other. The system is not homogeneous. Most agencies and departments are very territorial, desiring to have as much exclusivity of power as possible to themselves without having to share power with other aspects of the system so as to compromise their ability to function as autonomous as possible.

17. Accept and return for value all presentments. When you can, use autographed postage stamps on your documents and have them sent to their destination by your notary.

5 As Dorothy Parker quipped, “You can lead a whore to culture but you can’t make her think”. 6 Bureaucrats write memoranda both because they appear to be busy when they are writing and because the memos, once written, immediately become proof they were busy. – Charles Peters, How Washington Really Works, 1980. 7 The nature of bureaucratic mentality was humorously exemplified in the May 3, 2003 edition of Bizarre News (an e-mail newsletter): “SACRAMENTO, Calif. – The Sacramento jury commissioner’s office warned that if Lucille Marie Gordon did not show up to her allotted jury duty date, there would be a bench warrant out for her arrest. Caryn Gordon thought this was hilarious. Why? Because Lucile, or Lucy, is her dog. Last year, the chocolate Labrador retriever received a summons for jury duty in Sacramento Superior Court. Caryn read the summons and sent the form back in, writing where it reads, ‘affidavit for disqualification,’ she put, ‘Lucy is a dog,’ and sent it in. Earlier this month, Lucy got another summons. When Caryn called the office, the employee claimed they had heard every excuse imaginable. Caryn ended up having to show proof that Lucy might not serve too well on the jury, especially if a cat was the defendant.”

18. Every time you ever mail anything, including having a notary mail things on your behalf, put postage stamps on the envelope. DO NOT MAIL BY USE OF THE RED METER POSTAGE. Whenever you take an item into a post office that needs postage, and ask the teller to put the postage on, they run it through their meter stamp. Do not allow this. You need the cancelled stamp for the power it has (as a binding obligation on the US Government), and not the red-ink meter, the use of which means the item is not cancelled and mail fraud is involved.

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19. In addition to use of a notary, such things as embassy seals can work wonders. Perception is reality. Many bureaucrats and officials, upon seeing embassy seals, apostles, etc., back off immediately (possibly because they think that they might be tampering with matters beyond their knowledge and jurisdiction, and thereby risking some kind of problem for themselves).

20. Place all documents you execute, as well as all paperwork from adverse parties in the system that you receive and accept and return for value, and/or file in court, directly under the Universal Postal Union, i.e., “UPU,” by the proper use of postage stamps. This matter is discussed below under “Postal Power”.

21. Whenever you have serious subpoenas to serve, such as on the mayor of a municipality or some high government official, have them served by the sheriff—or, better yet, the Provost Marshal. Call the US Marshal’s office and see what is involved in having it done.

22. If you are in prison, either ask, or have someone on the outside ask on your behalf, for the prison form for reporting irregularities. A prison is a federal project. Inmates can report irregularities and call in county, state, and federal auditors. This form is used for reporting irregularities in accounting of federal projects to the Army Corp of Engineers under the military accounting manual, ER37210. Almost all prisons keep false books. When they are audited, upon the first irregularity (which usually does not take long for auditors to find), things hit the fan. One might ask the prison administrator for the form, or the prison case officer.

23. Ask for your SID number and file from every state in which you have ever been for any period of time. While the SS No. is federal, the SID No. is state. Through this tracking number the states keep track of everything about you (i.e., your strawman), such as licenses, liens, arrests, etc. SID numbers are either seven (7) digits followed by a letter suffix, or eight (8) digits without the letter. All, however, are preceded by the two-character US Postal identification of the State (CA, NY, TX, etc.). One probably must make a Freedom of Information Act, “FOIA”, request, or the State equivalent (in California, for instance, one might use the Information Practices Act, “IPA”) for procuring your SID file.

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24. Send off a FOIA to the FBI for your FBI rap sheet, which not only contains the record of every arrest, or “detention” (alienation), to which your strawman has ever been subjected, but allegedly can be used legally to provide conclusive and indisputable proof that the strawman is a separate and distinct legal entity in the nature of a corporation, and created by the state. It references an organizational ID No. just like the corporate police agencies have, etc. This is prima facie evidence for diversity of citizenship. Additionally, the FBI rap sheet is invaluable if you are trying to clear your record, or restore your rights, or attack an agency, legally. In addition to obtaining it by making a FOIA request to the FBI, if you are a guest of the Bureau of Prisons, “BOP”, you can get it by written request to your Case Manager, since it is in your file. BOP guests take note: The FBI rap sheet does not contain info on the dispositions of cases, so it does not come under the recent “snitch protection” ban on paperwork. That means they cannot refuse to give it to you.

25. Emulate success. As people who fundamentally simply wish to live in peace and be left alone study, interact, and engage in using approaches that their best research and judgment indicates might succeed, their experiences and the understanding that often ensue are not only invaluable, but add to the knowledge and tools available to the rest of us. Therefore, networking is invaluable.

26. Those of us involved in this quest for truth, freedom, and peace would be well advised to abandon the petty bickering, faultfinding, and snap out of our stupor. There is no room left for indulging in such counter-productive luxuries. The good ship US long ago hit the iceberg. It is not the time to be arguing about who gets what space for a deck chair or who can play the next round of shuffleboard.

STRAWMAN: A front, a third party who is put up in name only to take part in a transaction. Nominal party to a transaction, one who acts as an agent for another for the purposes of taking title to real property and executing whatever documents and instruments the principal may direct. Person who purchases property for another to conceal identity of real purchaser or to accomplish some purpose otherwise not allowed. Webster's Ninth New Collegiate Dictionary defines the term "strawman" as: 1: a weak or imaginary opposition set up only to be easily confuted 2: a person set up to serve as a cover for a usually questionable transaction. The Strawman can be summed up as an imaginary, passive stand-in for the real participant, a front, a blind, a person regarded

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as a nonentity. The Strawman is a "shadow", a go-between. For quite some time a rather large number of people in this country have known that a man or woman's name, written in ALL CAPS, or last name first, does not identify real, living people. Taking this one-step further, the rules of grammar for the English language have no provisions for the abbreviation of people's names, i.e. initials are not to be used. As an example, John Adam Smith is correct. ANYTHING else is not correct. Not Smith, John Adam or Smith, John A. or J. Smith or J. A. Smith or JOHN ADAM SMITH or SMITH, JOHN or any other variation. NOTHING, other than John Adam Smith identifies the real, living man. All other appellations identify either a deceased man or a fictitious man: such as a corporation or a STRAWMAN. STRAMINEUS HOMO: Latin: A man of straw, one of no substance, put forward as bail or surety. This definition comes from Black's Law Dictionary, 6th. Edition, page 1421. Following the definition of STRAMINEUS HOMO in Black's we find the next word, Strawman. The Strawman, which is YOU, Inc.

Change your thinking

As we have discussed, if we would be enriched instead of diminished when dealing with presentments (or anything else in the system), we must replace false and inadequate ideas with true and effective ones. We must be more conscious of our thinking and why we think as we do. A humorous quote by Sidgwick punctuates the matter:

We think so because other people all think so, Or because - or because - after all, we do think so, Or because we were told so, and think we must think so, Or because we once thought so, and think we still think so, Or because having thought so, we think we will think so.8

8 Henry Sidgwick, "Lines Composed in His Sleep”. Quoted by William Osler, South Pacific Magazine, 1907.

Consequently, if our dealings with the legal system have not been successful in accordance with our priorities, it may be in large measure because we have not thought adequately about (and therefore not acted properly concerning) that with which we are interacting. We must re-evaluate our thinking and change it, and therefore the way we act, accordingly. In the words of a fellow named Dayle Mahoney:

If you continue to think as you always thought, Then you will continue to get what you always got.

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Is it enough?

On its face, a presentment is a demand either to pay something, engage in specific performance (such as coming to court and answering a summons and complaint), or both. It is important to understand that all presentments issued by/within the colorable legal/commercial system today are expressions of the Wizard’s light show. That show appears dazzling, and is often terrifying, but is in actuality an insubstantial chimera. It becomes concrete only when we treat it in a manner that, by the rules of the game, authorizes its being enforced against us in physical reality. Someone provides you with a presentment because he expects to make money off you by doing so. The point of this discourse is to elucidate how we can act concerning what has heretofore been damaging to us because of our ignorance and proceed in a manner that can turn the tables to enable us to use the same system and its rules for our betterment.

To begin with, we must realize that adopting the ostrich approach of hiding our head in the sand does not eliminate what we might wish we did not have to deal with. Emulating the ostrich merely exposes our rear end blindly, it does not stop our butt from being kicked (or worse).

The second thing to realize is that everything that happens to us is the result of our own creating, either by having caused it expressly or because we placed ourselves in the context where the event we have to deal with is allowed to be in our space. In either case, what we have control over is our free-will choice as to how to deal with a particular event. In the case of receiving a presentment, we can basically pursue one of the following courses of action:

1. We can comply with the demands stated on the face of the presentment, 2. We can deny, fight, try to run from it, etc., or, 3. We can accept it, and thereby neutralize and offset it by allowing the current to flow in a way that discharges the obligation without trying to block or resist the force directed against us.

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Acting in accordance with either of the first two ways results in automatic loss. The first way consists of meek compliance, which is a dead loss to us. We just simply pay or perform as they have instructed us to do, like good little slaves. The second way constitutes a dishonor, enjoining the issues offered to our strawman that can then be enforced by the courts and imposed on us. We give substance and credibility to the Wizard’s light show. This is also a dead loss, because our dishonor ensures that we lose. The third approach involves staying in honor and retaining a posture where we are free to act in a way that redounds to our benefit.

If what we experience is the result of our direct creation in the past, acceptance must occur to close the circle on the process involved in our creating by thought and then, eventually, experiencing back upon ourselves the results of our own thought/creation. We must complete the cause/effect cycle and discharge the imbalanced build-up of charge that remains until the action/reaction account is balanced and the imbalance, i.e., the charge, is discharged. If what we experience is the result of the actions of others, we need to do a kind of legal/commercial jujitsu that returns the force of their actions back to them without injuring us. All injury we experience in legal/commercial matters is the result of essentially two (2) things:

1. Failure to establish on the record and correctly notice the proper parties of our position as the living principal, creditor, and authorized representative for, our strawman (all-caps name). All law functions based on presumptions. A major presumption on the basis of which mankind is enslaved is the presumption that our failure to clarify and establish on the record who we regard ourselves as being and in what capacity we are functioning signifies the system’s right to act against us as it wishes. As per the maxim of law, “He who fails to assert his rights has none.” The 7th Commercial Maxim is apt: “A matter must be expressed to be resolved.” If we do not provide notice of our position, no one else can, nor does anyone in the system have any motivation to try to assert our position for us (especially vis-à-vis them). If we want our position noticed, we and we alone must do it.

If we fail to notify appropriate officials and agencies of our position there is no basis upon which anyone in the system can relate to us other than in accordance with the system’s rules and presumptions, which operate

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with impunity unless properly controverted by us. Their position is the only one on the table because we have not introduced our own into the equation. A gold prospector must drive a stake in each corner of a plot he is staking his claim on if he wants to have others recognize his claim.

Without doing so, nothing exists to communicate his intent or be treated as if the plot of ground is his as opposed to anyone else’s. He has not acted in accordance with the rules of the game that must be followed for him to achieve his objective.

2. Acting in dishonor, and thereby engaging in resistance that disallows pass-through of the current that enables us to retain our freedom and autonomy without being damaged. Resistance in a circuit creates heat. By resisting we bear the burden in our own biological circuitry, which remains until discharged. This absence of discharge can weaken, exhaust, burn up, or in some way debilitate us.

It is a cardinal spiritual maxim that victory is achieved through surrender. To understand this statement we must define the meaning of the operative words: “victory” and “surrender.” By “victory” we do not mean physical conquest and domination, which is futility borne of acting on, attempting to render durable in some manner, the illusion of separation and superiority of one aspect of the One over another. In this situation an ego imagines not only that it is separate from others, all, and everything, but is superior to other expressions of the same Oneness. This delusion is a major source of sorrow and suffering that has plagued humanity throughout history. Using force and artifice is an attempt to get reality to conform to a flawed and vain abstraction of it is foregone futility that leaves carnage and suffering in its wake.

The term “surrender” is intended to convey the concept of expanded receptivity rather than outward-directed action without first obtaining the benefit of more thought, insight, and information than one has at the time. Receptivity involves opening one’s mind, letting go of the attitude that one already knows the truth, releasing pre-conceived ideas about what one is experiencing, and inwardly expanding the vessel of one’s being not only for the purpose of perceiving matters more fully, clearly, and wholly (free of distorting, deluded, and pre-conceived biases), but providing the conscious mind with more comprehension than had

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previously been the limits of one’s thinking and consciousness. Depth always absorbs. And as a Zen master once said, “It is impossible to discover when preoccupied with the familiar.” There are no limits or bounds to the size, scope, and depth of our vessel, nor to the nature of the content, we can consciously contain. This is akin to a take-off on an old rhyme:

Little forms have bigger forms On their backs to bite ‘em,

And bigger forms have bigger forms, And so on ad infinitum.

Further significance of surrender inheres in realizing that we see things far more as we ourselves are than what something is in itself. A moment’s reflection reveals that anything can be viewed, perceived, thought about, and acted upon in an infinite number of possible ways by an infinite number of possible beings. Everyone observes and experiences life from his/her unique nature and position in space-time. No two perspectives are the same, nor can be. As someone once quipped, “When you hear two accounts of the same automobile accident it makes you wonder about history.” The Bible is full of admonitions against acting in violation of this truth vis-à-vis others, such as “Thou shalt not bear false witness,” and “Judge not, that ye be not judged”. What certainty, after all, does anyone possess about the “truth, whole truth, and nothing but the truth” that might justify slandering or judging someone?

Therefore, “surrender” really means giving up one’s entrenched position in favor of allowing clearer and more holistic understandings to emerge. The ultimate end of this approach is to perceive existence as it is, rather than how we might think or believe it is. Two further quotes of Zen masters come to mind: “Do not seek the truth, merely cease to cherish opinions”, and, “If you understand, things are such as they are. If you don’t understand, things are such as they are.” The actual truth of anything is the “such-as-it-is” nature of its existence. The more we live in this manner the more grounded in happiness and integrity our life can become.

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In court

Why do we lose in court? It is not because it is a military or maritime court (which it is), often evidenced by the gold fringe on the flag. It is not that we are under implied or adhesion contracts to some municipal corporation (if so we could raise the issues of contract law). It is not a plethora of other reasons advocated by innumerable “patriots”, all of which “reasons” are rabbit trails. So, the short answer to why we lose in court is that we lose if:

1. We dishonor any of the people and processes that impinge on us, thereby enjoining the issues described in the presentment so that we become bound by the matter. We have no right to deny or speak to anyone else’s utterances, and doing so lands us in the middle of their novel.

2. We traverse and therefore contractually amalgamate ourselves and our strawman into the court’s jurisdiction, so that we endure in the flesh the results of whatever trial or hearing might occur, dealing with our strawman. It is the strawman that appears, is tried, and sentenced, not us. By traversing, however, the real us, gets to go along for the ride and experience, in reality the judgment against the strawman.

3. We fail to discharge the charges, thereby authorizing the system to enforce commensurate consequences on us.

4. We have no facts in evidence substantiating our position placed by a competent witness on the court record of the case. This crucial matter is discussed below in greater detail.

5. We have not bonded the case.

Let us briefly discuss these issues: 1. We avoid acting in dishonor by accepting and returning for value whatever presentment or charging instrument we are provided with and by not arguing, fighting, denying, or ignoring.

2. We do not join the dispute by traversing, by which we leave our own ground and tacitly give reality and credibility to the opponent’s claims and

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allegations that are not facts but only presumptions and assumptions until we stipulate (expressly or by dishonor). Enjoining the issues in a presentment, such as denying allegations or charges, or saying that we do not owe an alleged debt, is a dishonor that enjoins us with the court’s jurisdiction and our own strawman and creates a dispute that grants a court subject matter jurisdiction. It sucks us up into the made-up game of imaginary disputes between fictitious entities. The definition of “traverser” in Black’s Law Dictionary confirms the point succinctly:

Traverser. In pleading, one who traverses or denies. A prisoner or party indicted, so called from his traversing the indictment. Black’s Law Dictionary, 5th Edition, page 1345.

3. Whenever we (i.e., our strawman) are “charged” with something, that charge is a bookkeeping entry of liability on the ledger and must be “discharged” by entering a balancing, offsetting asset. Filling in the asset side usually occurs by the loser parting with public funds of some kind, such as a check or FRNs, or doing “community service”, or being bonded and incarcerated as the surety. When we discharge the charges by acceptance for value, which is a Banker’s Acceptance, we end the controversy and become the owner of the contract. Each of us is a private banker. Under banking our acceptance and return for value establishes the facts and makes us owner of the transaction. We then own both sides of the deal, i.e., both the creditor and debtor side. By accepting from the private side and providing the value from the private, i.e., substance, side we end the dispute and remove from the equation any controversy for a court to resolve.

4. It is imperative to understand that the admiralty/equity courts of the system do not deal with reality, substance, and facts in evidence. They deal in assumptions (such as unsupported claims and charges), and presumptions (unexpressed rules by which the system operates), and stipulations (agreements that create the “facts”). Because they are strawmen and cannot be competent witnesses through sworn testimony, neither attorneys nor officials can place actual facts in evidence on the record that a judge can judicially notice, such as claims supported by sworn testimony, either through an affidavit sworn true, correct, and complete, or testimony under oath on the witness stand in open court, or deposition.9

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9 In the celebrated “voter punch cards” incident in Florida in the Al Gore dispute with George Bush in the last election, Gore’s attorneys introduced a batch of “voter punch cards” as evidence for the purpose of proving that the election was flawed. The judge never even looked at the evidence and threw Gore’s attorneys out of court. Although the press and public were not aware of the rationale for the action, the judge’s basis for doing what he did was that the cards were never presented to the court by a competent witness. There had to be a witness to state that the cards came from such and such a precinct and that the one testifying witnessed the cards being gathered up, boxed, and transported and was stating such matters under oath. Without such competent witness, there was nothing on which the judge could rely to substantiate any claim that there had been tampering with the cards during the gathering and transporting thereof. Attorneys can neither be competent witnesses nor can any statements they make be considered testimony. They deal in assumptions, hearsay, and dishonor. So much for high-priced lawyers!

5. Recently some people in Nebraska allegedly avoided having to go to prison for some time by posting - at the last minute - a single-page bond.

A presumption is defined as follows:

"A presumption is a deduction which the law expressly directs to be made from particular facts." (Evidence Code, § 600.) And "a presumption (unless declared by law to be conclusive) may be controverted by other evidence, direct or indirect: but unless controverted, the jury is bound to find according to the presumption." (Evidence Code, § 602 et seq. In re Bauer (1889), 79 Cal. 304, 307. The bottom line is that whenever we receive any kind of presentment, from a tax bill to a summons/complaint, indictment, etc., our proper course of action is to accept and return the offer for value, served by a notary on our behalf. Discharge of the obligation occurs at the moment the offerror receives our communication. Contractual ratification has occurred through offer and acceptance. The circuitry closes on itself, the [+] and [-] polarities discharge, and nothing remains upon which anyone can act. A charging instrument (presentment) is an offer, an obligation created on the public side by inventing a new borrowing against the creditor (source of the credit) on the private side. Your strawman is offered the opportunity to assume the obligation. What we must understand is that:

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1. Any presentment is a concocted debt on the public side created by the party responsible for issuing the presentment, 2. Whenever you (i.e., your strawman) receive a presentment, through your acceptance and return for value of the presentment, you can perform a legal/commercial jujitsu, by diverting the force of the presentment back on the issuer,

3. The fabricated obligation constitutes a new borrowing, i.e., creation of more public debt, which they wish your strawman to assume, and which you—at the expense of your body/labor - must discharge,

4. Any presentment can be discharged by providing the offerror with the charging instrument accepted and returned for value and utilizing your exemption as the source of credit for discharging the obligation,

5. A presentment is not an obligation that attaches to you unless you dishonor and do not discharge it,

6. When you proceed correctly the charging instrument constitutes funds that can be used to make you money,

7. If the offerror does not honor your acceptance and return for value, then he is the one in dishonor and can be made the party obligated to pay you for costs, fees, and damages based on his dishonor.

Understanding the above scenario serves greatly to remove fear10 (“False Evidence Appearing Real”) from the equation, especially when we realize not only that the presentment can be neutralized but that it can be turned to our advantage. The advantages can occur not only by what might ensue from the offerror’s dishonor of our acceptance and return for value, but by other means also.

10 So long as one is ungrounded in his own existential/spiritual position, and ignorant of what the system is and how to deal with it effectively, fear is inevitable. This is because the system is one of endless applications of legalized violence based on fictions and frauds promulgated by other beings. None of these paper assaults (presentments) is our creation or our property/province concerning which we have authority to speak. They are all the “truth” and actions of the originator, and therefore the originator’s property and domain. Unless we understand what is happening we are in the dark having to deal

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with things that can destroy us without possessing any ability to fathom and disarm them.

The catch-22 of the system is that both traversing (enjoining the issues in any manner) and ignoring (doing nothing) constitute a dishonor guaranteeing our loss. The way out of this “damned-if-you-do, damned-if-you don’t” double bind is to comment on the paradox. Problems are not solved on the level of problems, they are solved by operating from another domain, or “meta level”, which in this case is our ground and truth for which we have exclusive knowledge and authority to speak and concerning which they have none. Now they must deal with our world (which they cannot address and cannot enter) and from that position we require them to “put up or shut up”. Since they cannot substantiate the truth and validity in our domain, which is more powerful and fundamental than where they are operating, we can by so doing turn the tables on them.

Officials, attorneys, and banks, do not want to honor this process for a number of reasons, largely because they have been making money by usurping and using our exemption, and do not wish either to be estopped from doing so, or seeing us regain our sovereignty and autonomy by asserting our standing as creditor, and using our exemption for our benefit, and not theirs.

Standing and status

Whenever you receive a bill, citation, summons, complaint, indictment, etc., what you receive is an original issue presentment. It is also an assumption—a concoction contrived in the mind of the living being who dreamt it up—since there is no bona fide assessment11 for the obligation. There is no commercial paperwork to support the contractual basis upon which the alleged obligation is based.12 Remember that the entire (colorable) system functions by fictions and frauds. There is only presumption of assessment, i.e., color of assessment. Since the presenter of the presentment did not attach anything of value to substantiate and support his position (hence the phrase in some accepted-for-value documents “I did not find your check enclosed”), the document is grounded in the imaginary. Nevertheless, it can be traced to the author of the document and whatever strawman on behalf of which he acted to create the new debt currency. The presenter is giving you something created by inventing a debt, and can be transformed into something of advantage to you if you treat it correctly.

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11 Any genuine assessment involves a valid contract, bearing the authorized signatures of all involved parties, plus proof of breach of the contract by the one who is then rendered a “debtor,” plus an accounting of the sum-certain amount owed based on a true bill that itemizes the particular dollar amounts owed for what specific things (such as goods and services received and not paid for, or specific performance promised and not performed), plus proof of the authority for those trying to collect from the debtor to operate as third-party debt collectors, plus a statement of commercial liability staked by every alleging party (anyone who makes any bookkeeping entry or acts in the matter) to back up his claims by indemnifying those harmed in case he is in error. Those acting in the system, such as attorneys and government officials, have none of these prerequisites. They have only assumptions, which become actualized in our lives by making the assumptions real through our traversing or dishonoring.

12 The foundation of every record is the commercial paperwork, consisting of two (2) essential elements:

1. A ledger of accounting, consisting of an itemized list of goods and services provided by whom to whom, with corresponding monetary values indicated for each entry backed by the contracts and records that substantiate the validity of each ledger entry,

2. Record of accountability identifying the party who takes commercial liability and responsibility for the accuracy, relevance, and verifiability of each bookkeeping entry.

Although technically every document in commerce must be executed by/under affidavit sworn true, correct, and complete, the commerce of the world consists of billions of people engaging in countless commercial transactions a day. Obviously, it is impractical for the trillions of documents involved in actual commerce to be done by taking each one to a notary to be certified and sworn as being true, correct, and complete. Commerce, to be practical, must be efficient, streamlined, and minimalist. The force and effect of every document, however, is ultimately its accuracy, relevance, and verifiability combined with the sworn statement of some living, sentient being that he takes responsibility for the validity of the document and whatever information it contains. This must be so because every legal and commercial document involves someone paying and someone receiving gain. Since every such document involves a potential loss to somebody, accuracy and responsibility/accountability/liability must be inherent in all legal/commercial instruments. Therefore, although not in actuality sworn true, correct, and complete, all commercial documents may be enforced as if they were. Reality cannot be cheated. No matter how fantastic and removed from reality and sanity matters become in the phantasmagorical public domain of assumptions, derivatives, fictions, and fraud, ultimately everything must be grounded in, and be able to be traced back to, the ground level, which is the combination of accuracy (truth) and individual responsibility/accountability. Documents do not write themselves—some living being writes them.

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When you accept and return an offer for value, it must be remembered that the “value” is that which you, as the real being, give to the transaction. Only the private side, such as you, your labor, and your private accrual account - Private Treasury UCC Contract Trust Account -which is your “exemption” as the creditor from which the credit that creates the “currency” on the public side is derived, can have and give value. The public side is imaginary, created in the mind, and possesses neither value, nor substance, nor sovereignty, nor life. Public entities, such as corporations, trusts, partnerships, businesses, estates, and everyone’s all-caps name, etc., are persons, which are legal entities, ens legis. They are not real beings. By being creatures of the state, persons have status, which is fictitious and legal, not standing, which pertains to real beings and what is lawful. You, as the reality, are the substance and the source of all the public side reflects and from which it is derived.13

Any presentment you receive from the public side is a notice of the creation of a “charge” (open account), which remains un-neutralized unless you “discharge” it. You discharge the charge by performing a banker’s acceptance that provides the asset/credit that balances the liability/debit cross on the accounting ledger. You want to use your exemption (which is inexhaustible) for this purpose. In such case you can discharge any obligation. Anything that can be charged by creating debt against credit can be discharged by performing an accounting offset by using the same credit.

When you accept an offer and return it for value in your real, sovereign capacity, as creditor, you have accord and satisfaction. The fact is your autograph. You, as the real being, are a “lawful man”, capable of bearing a bond. You possess “rectus in curiae,” meaning “right in court,” or “standi in judicio,” meaning “standing in law”. That means that you are capable of bearing a note. Only a lawful man can do that. So the lawful man puts his autograph on the line, establishing the fact. Private men and women use autographs (self-generated marks), public side employees use signatures (signs of their juristic persona).

To understand more of the “money system” operating in the world today, we must make a short digression into history. The Legislative Act of February 21, 1871, Forty-first Congress, Session III, Chapter 62, page 419, chartered a Federal corporation entitled “United States,” a/k/a “US

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Inc.”, a “Commercial Agency” of what was originally designated as “Washington, D.C.” US Inc. is a corporation of the international bankers, et al., and outside the Constitution.14 The jurisdiction of the US incorporation is private, commercial, international, and military admiralty/maritime. Every “citizen of the United States” is a “citizen” of US Inc. (which is a corporation, not a country), and bereft of standing in law as well as access to genuine law (meaning “common law”) that was accessible to Americans under their contract with the parent corporation, USA. Every “citizen of the United States” is also an enemy of the state, i.e., the United States Government, as codified in the Amendatory Act of 1933 to the original 1917 Trading With the Enemy Act. This is codified, inter alia, at 12 USC 95.

13 A reflection may appear as real as that which it reflects, just as the reflection of a candle gives light. We cannot, however, feel any heat from, nor burn out, the reflected flame, nor can we grasp the reflection of the candle and walk away with it.

14 The 1871 “Constitution of the United States” of the private corporation, US Inc., is identical to that of the 1787 “Constitution for the United of America” except for the difference in the 13th Amendment. In the USA Constitution the 13th Amendment is one forbidding attorneys from holding public office. In the US Constitution the 13th Amendment is a prohibition against slavery and indentured servitude.

In 1933 US Inc. declared bankruptcy, as publicly noticed, inter alia, by House Joint Resolution 192 of June 5, 1933, Public Law 73-10, Perry v. U.S. (1935), 294 U.S. 330-381, 79 L Ed 912, and 31 USC 5112, 5119. The result is that there is no money, i.e., real money, which is substance, such as gold and silver coin, that pays debts and is the coin of sovereigns. There is now only the representation or symbol of money consisting of debt created against credit (appropriate for bankrupt citizens devoid of capacity). The credit used to create and back the debt currency is provided by us through having given our gold in the 1930’s, and our labor ever since, to back the failed corporation. Among many significant consequences of this are that there are now only bills of exchange, notes, and other evidences of debt to circulate as money. All currency today is created by signature.

When we accept and return a presentment for value, we discharge an obligation and render the offerror devoid of claim. This Banker’s Acceptance (“BA”) utilizes our standing in law as the creditor—the source

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of the credit—to discharge the obligation by using our exemption for offset and adjustment. We become established as creditor and owner of both sides of the transaction.

In the past we have usually sent the presentment back to the issuer ourselves. Now we realize that it is far superior to use a notary to send it to them. The notary does not care what is on a presentment or our paperwork, or the amount involved, i.e., whether a document says $1.00 or $10 Billion. The only thing the notary cares about is whether the document has a place for endorsement and a jurat, thereby justifying taking your fee, putting your document in an envelope, and serving it on the other party, saying, “Respond in ten (10) days.” This time period is in accord with Regulation Z, Federal Truth in Lending, 15 USC 1601 et seq., consisting of three (3) days for mailing, three (3) days for the issuer of the presentment to decide what he’s going to do about your acceptance and return for value, three (3) days for return mail, plus one (1) for the day of service, which does not count on the time clock. The total time is therefore ten (10) days.

When we have the notary serve our acceptance and return of the presentment to the offerror, the notary’s address is given for the respondent to send the check, remedy, or reply to. When a respondent does not respond to the notary within the required ten (10) days with a notice of discharge of the obligation he is in dishonor on our acceptance for value. He has not adjusted the account and is keeping the account open and the charge in place, continuing to cause trouble for us and make money by stealing our exemption. When no response from the original presenter is received by the notary within the required ten (10) days, we have the notary issue a certificate of non-response, which is a certificate of dishonor. At this point the dishonor of the issuer of the presentment is established on the commercial record. A notary’s logbook is an irrefutable substantiation of the facts and admissible as evidence in any court.

The key to the notarial process is that a certificate of non-response, issued by a notary, is a judgment in estoppel. The first certificate of non-response is a judgment in estoppel on the law. The second judgment in estoppel is on the facts/money. Ideally, we should do both when dealing with a presentment, since we wish not only to discharge the obligation, but use the process to better us commercially.

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We must remember who and what a notary is. Historically, the notary wrote the king’s papers. He issued the writs. A public notary is higher than a judge. In addition, notaries have had from inception two (2) primary functions: 1) to protest international bills of exchange, and 2) be a bonded, neutral party who holds the commercial record and can place evidence into a court of any jurisdiction. Thus, the notary—as the ultimate holder of the commercial record—is higher than any judge inasmuch as no judge can act without the record. The great value to us is that through the notary we can place unimpeachable evidence into a court case for the record.

It is crucial to understand the following:

1. The commercial tribunals (courts) of the US and the States are in the private equity/admiralty jurisdiction of the alleged creditors in bankruptcy, the IMF, et al.

2. As admiralty courts the tribunals deal in matters of contract in which the defendant is presumed to have contracted (on land) to be “on the ship” where “the captain’s word is law,” one is “presumed guilty unless proven innocent,” and the burden of proof is on the defendant to prove that he is not guilty (i.e., prove a negative).

3. As equity courts, the ultimate arbiter of a matter is the “conscience of the court,” which is how the judge happens to feel that day, and is not anything accessible by a defendant. There is no “conclusions of law and findings of fact” issued (since it is in equity, not law), nor are there any facts, nor does any documentary material evidence exist established on the record of a case (an attorney, as we have discussed, cannot be a competent witness). 4. Since these commercial tribunals function in a private admiralty/equity jurisdiction that does not have any capacity to access law. It cannot deal in facts (reality). It must deal on color of those things, i.e., assumptions (color of facts). The assumptions become “facts” when both parties agree – stipulate - that they are true.

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5. You cannot invalidate one assumption with another assumption, you can invalidate an assumption only by placing facts in evidence on the record.

6. Anyone in dishonor in any legal proceeding has forfeited his capacity to state a claim upon which relief can be granted, and must legally/commercially lose if the other side remains in honor and proceeds correctly.

7. If both sides of a dispute are in dishonor (which is normally the case, since all attorneys argue and dispute, as do most pro se litigants), whoever is ruled as the winner is a function of the judge’s discretion, concerning which he has carte blanche to proceed as he wishes.

8. If we can enter documentary material evidence as facts on the record and require the judge to take judicial notice of that evidence, we have a platform from which we can win, because without stipulations the other side has no evidence (facts) to support their claims.

9. As a result of the above, it is logical to conclude that not only must we place our evidence into court in any case in which we are involved, have the judge judicially notice it, and act on it in a way that provides us with a win, but placing evidence on the record and causing its existence to ensure that we prevail is the only reason we should ever go to court or even deal with a court.

10. We must act from the beginning, and ever and always, for the purpose of setting our evidence on the record in any case in which we might have to be involved so that we can not only win, but—if we act correctly—make money (perhaps a considerable amount) from the situation.

The next logical question is: How can we place evidence on the record in a case? The following means may be deployed for entering evidence on the record:

1. Deposition,

2. Testimony in open court,

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3. Affidavit (not as good as the first two unless one can cross-examine the affiant on the witness stand),

4. Entry of evidence into the record by a notary.

Of all of the above-cited methods for entering evidence into a case, the fourth method, the notarial process, may be the most desirable. By so doing one may enter the evidence one chooses by a means that must be admitted as evidence on the record, which no court can refuse to enter, and do so preferably without having to endure the time, effort, and expense of depositions and attending court proceedings.

We must always remember the following:

1. Stay in honor and never dishonor anything or anyone (including police officers, officials, judges, and even attorneys). Your opponents must go into dishonor on their own, of their own volition.

2. Put the issuer of a presentment in a position of having to “put up or shut up”, i.e., place the burden of proof on him.

3. Establish all documents substantiating our claims on the record of the notary and the evidentiary record of any court case involved with the transaction.

4. Relate properly with everyone involved, especially the court and judge, so that you can make the best use of your situation, i.e., prevail and also make money.

5. Do not talk for any reason that does not serve your interests, and be prepared, as much as possible, to know what you wish to accomplish, what not to allow to happen, and the proper way to say what can succeed in achieving the results you desire. They must have your words, your admissions, and even your legal determinations, to hang you.

6. Never make an offer (a supplicant, dependent position). Be an acceptor instead. The power is in acceptance, and without acceptance we cannot win.

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So the tangible steps/processes/documents involved in dealing with any presentment consist of several phases:

1. Execution, filing, and notice of foundational documents stating rights, standing, and capacity,

2. Administrative actions concerning a presentment, both pre-court and non-court,

3. Documents and dialogue in court,

4. (If the issue is a mortgage, securing both legal and equitable title to the property, as well as right of possession, must all be done),

5. Collecting on the money.15

15 Collecting from dishonoring persons can and has been done, but a discussion of the process is beyond the scope of this article. It is enough at this point to master the essentials, execute necessary paperwork, and remain free of debt and incarceration.

In the event they ignore everything we do, we can proceed to collect from them by a number of possible means, including “non-judicial strict foreclosure”, as outlined in Chapter 9 of the UCC. We can also instigate a bankruptcy proceeding in which we are “debtor in possession” (and thereby able to accept or reject all offers), they are delinquent creditors, and we can request that an offset be performed that results in our collecting against their bonds, equity, or risk management department.

Part III - Civil and Criminal Charges

Whenever you receive a traffic ticket (citation), summons, complaint, indictment, etc., what you receive is a public offer. It is an offer of indebtedness to your strawman. It is conclusive presumption, i.e., “fact”, that your strawman is obligated to provide the funds if you act in dishonor. In commerce the penalty for being in dishonor is losing one’s equity. Remember that no court in the system—since they are all in the public realm—can see, address, or deal with the real you. Public courts can deal only with assumptions and fictions in their colorable (phony) system. As such, there are no facts other than what is stipulated (agreed) to by the parties. If an adversary says the sky is green and you agree, that

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agreement constitutes a “fact”. The commercial tribunals of the system are all contract courts, and your stipulation is contractual ratification, which is the law of the matter. People lose in the courts because they try to counter or neutralize one assumption with another.

If you are in dishonor you will be forced to provide, through your strawman, public funds (FRNs or equivalent), one way, or the other, to satisfy the obligation. This can be by simply parting with FRNs, doing “community service”, or by being incarcerated as the surety for the obligations of your strawman. In the latter case they create the bond by further borrowing against your strawman. This generates funds that are used to balance the books and also make considerable additional money for the courts, judges, attorneys, etc. Given the immensity of the money made (per CAFR and LAFR), which is several times the total amount of the entire economy of the private sector, the mania in the United States for charging, prosecuting, and incarcerating is understandable.

The following are important considerations in the equation:

1. As investors in the bankrupt corporation called the United States, as well as the USA, the parent corporation, we, as real people, are the true creditors of the country and source of the wealth, as discussed above. As such, we are exempt from taxation from the public side. The creditor and sovereign cannot be taxed by a system that functions by using the credit of the creditor. The public side is debt, operating by borrowing against us. Being derivative and dependent, the tail cannot wag the dog, the reflection cannot dominate the reality it reflects. The system does not deal with us as real beings, it deals with a fiction - a symbol -, which is not us and therefore does not require the system to deal with us as the creditor and sovereign. Moreover, the public domain can tax and regulate only what is created in and belongs to the system, which can be only strawmen and never real beings.

2. As creditors, sovereigns, and true owners (preferred stockholders) of the country, we have authority to offset any obligation imposed on our strawman by the public side by making our exemption (which is unlimited) available to discharge the charges. The source from which the obligation was derived is our own credit, which can therefore be used as the asset to offset the obligation created by borrowing against that credit.

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3. The size of the purported obligation, as well as its severity, is technically irrelevant.16 That which can be invented in the form of an alleged obligation can be offset, i.e., discharged, with the same ease as the obligation was created. All public debt is nothing but numbers—digits in the matrix. Promissory notes (creating currency by signature) got us into this mess, promissory notes can get us out.

16 It is often considerably more difficult using the acceptance-for-value process for dealing with matters involving a mala in se crime than a mala prohibita offense, although all “crimes” in the system today are “commercial crimes,” see 27 USC 72.11.

4. The only way we can discharge and offset such charges completely—neutralize and eliminate them totally and close the accounting—is through an acceptance and return for value through the use of our exemption, which we make available to be used for exchange as the funds for discharging the obligations/charges. Per the maxim of law, “As a thing is bound, so it is unbound.”

5. When we, as the creditor and sovereign, proceed as above, we are functioning as the king. The colorable public side is rendered dependent upon and subservient to our acts. By law, public officers are fiduciaries, and have no discretion. Compliance is mandatory. It is unrealistic, of course, to think that those who structure and operate the system for commercial enrichment and power will “go gently into that goodnight” when we use the system for our protection and betterment. In addition, and of crucial importance, is to neutralize the unrevealed presumption on which the system operates that we, the real us, have agreed to be united with and treated the same as our strawman. We remove that presumption by noticing the proper parties of the foundational documents referenced below. Many times when these documents are placed on the record in a court case, the case disappears. If they cannot access the real you (and your body, labor, and property), they are left hanging out to dry in their cloud-cuckoo-land.

Upon receiving a presentment

Receipt of an offer (presentment) will occur in one (1) of the following ways: 1) by mail, 2) in person, or 3) after arrest and being placed in custody. Herewith below we will concern ourselves with the first two (2) modes of receiving a presentment.

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1) As soon as you receive an offer (such as a bill, or statement, you wish to discharge), make a copy (preferably color copy, certified as a true and exact copy by a notary) of the offer and keep that copy in a safe place. If you are already in court, go to the court and obtain at least two [2] copies certified by the court clerk of the documents filed in a case by the other party. Then use these as you would an ordinary presentment, following the procedure set forth hereunder.

1. After making a copy of the essential documents issued by the other side, imprint over the first page of the original of each document the following text (there are numerous versions of this and opinions as to which is best): This presentment is accepted for assessed value and returned in exchange for settlement and closure of this accounting, certified and sworn on the commercial liability of the authorized representative as true, correct, and complete, with all related endorsements front and back. Pre-paid, exempt from levy. Adjust the account and release the orders to the authorized representative immediately.

[Autographed Postage Stamp (Two-cents US is OK)]--------------- Date:_______________________

2. If you have had your bullet stamp made, which includes your full name in upper- and lower-case (some people use all lower-case letters in their documents for ancient linguistic reasons17), as well as your EIN# and the terms stating that you are operating in capacity of being the “living principal” and “authorized representative,” stamp your bullet stamp in gold ink so that it is over part of your Accepted and Returned for Value, i.e., “ARFV,” stamp (above) and also across the upper left hand portion of the postage stamp.

3. Autograph your name at a diagonal across the postage stamp so that your autograph is done over a part of the ARFV text, across the postage stamp, and on the presentment itself. Use blue or purple ink.18 Put in the date by hand.

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17 There appear to be four alphabets in English: print including upper-case letters (in whole or part), print in all lower-case letters, upper-case cursive, and lower-case cursive. Allegedly cursive (handwriting) joins phonetic symbols in a way that removes their individuality and therefore does not verify/certify the pronunciation of your name, voiding capacity for your autograph to state a claim. This is why one should always also print his name, thereby having a double witness and removing ambiguity (which may be construed as fraud in law that may require a third party, i.e., judge, to adjudicate). Also, language (multiple languages, i.e., babal—as in the “Tower of Babal”) came from the ancient Phoenicians and was, among other things, developed as a weapon. Writing in all lower-case letters was allegedly the mode of writing used by the elite, whereas use of all capital letters was reserved for ships, dead fictions, and slaves. One may review the term, “capitas diminutia maxima” in Black’s Law Dictionary, 6th edition, concerning this matter.

18 A long-standing concern about what color ink is best to use for such things as signing a document with an accepted-for-value stamp has been recently resolved for this author, who has now concluded that red is not good, blue or purple is optimum. Rather than indicating blood and the living being as we had thought, the significance in the color scheme of the system indicates that red expresses deficiency, such as “being in the red”.

4. If you do not have your bullet stamp, use the postage stamp as above, autographing on a diagonal across the stamp, filling in the date, and also printing your EIN#, as per the following:

This presentment is accepted for assessed value and returned in exchange for settlement and closure of this accounting, certified and sworn on the commercial liability of the authorized party as true, correct, and complete, with all related endorsements front and back. Pre-paid, exempt from levy. Adjust the account and release the orders to the authorized representative immediately.

[Autographed Postage Stamp (Two-cents US is OK)] Account No.[EIN#]

__________________________

Date: ________________________

[Name],authorized representative _________________________

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5. Your package to the offerror will consist of:

a. Verified notice (by affidavit, notarized) that informs the presenter of what the documents are that are attached/enclosed, what is required of the presenter, notice that the notary retaining a copy of the documents being sent and is acting as a disinterested third party, and that if the presenter does not respond to the notary within the required time (ten (10) days in most cases) with notice that he has adjusted the account and the obligation is discharged, a Certificate of Non-Response will be forthcoming from the notary that constitutes a notice of dishonor and judgment in estoppel on the law,

b. Your accepted-and-returned-for-value presentment, signed and dated by you in blue or purple ink, and bearing your Private Treasury UCC Contract Trust Account number [SS# w/o dashes],

6. If the notary does not hear from the offerror within ten (10) days that the discharge has occurred and the accounting is closed, have the notary send the offerror a Certificate of Non-Response. This constitutes a certificate of dishonor and a judgment in estoppel on the law, which bars the offerror, and everyone else, from ever coming after you again concerning the issues in the offer.

If a court case is involved, have your notary also notarize such things as the following:

1. Certified copy of the Oath of Office of whatever judge is involved (if the identity of the judge is known at that point), as obtained from the secretary of state of the State, or the county recorder, or whatever office is holding it.

2. Notice of Waiver of Protest. This document requests the court to waive any fee, fine, cost, or charge the court is looking for. A default position by the court is automatic record of INVOLUNTARY BANKRUPTCY if the court dishonors your request (as the living principal and authorized representative for your strawman). Your notice informs them that their dishonor constitutes a waiver of right to protest the matter (or anything connected therewith) henceforth.

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3. Notice of Acceptance, Standing, and Status, Request for Remedy. This pleading-format document instructs the court to discharge all charges and dismiss the case (based upon your acceptance and return for value of the charging instruments and all court documents, along with filing the bond) or, in the alternative, produce the assessment for the charges (whether the charging instrument is a citation, complaint, information, statement, or indictment). (See “Instructions for Executing and Using Employer ID”, B) 3), supra.)

It is an automatic dishonor/forfeit position if the court does not provide the assessment for the charges if you require it. Substantiation of the bona fide nature of the assessment consists of providing the commercial paperwork that reveals the origin, nature, particulars, and legitimacy of the assessment which, to be genuine, must be executed by the responsible party under affidavit sworn true, correct, and complete, with stated commercial liability risked by the responsible party in case he is found to be in error, and swearing to the accuracy, relevance, contractual validity, and verifiability of all allegations made and the exactitude of the sum-certain amount of the assessment. Failure to “put up or shut up” in this regard signifies the court’s stipulation that it is continuing to entertain prosecution of non-existent charges.

4. Bond (2 options):

a. Single-page bond (on court pleading format). This bond is filed in the court on court-pleading format. Such format renders the document more familiar in appearance (and therefore more easily filed) than trying to file papers that are not in pleading format. Elaboration on the bond, its use, and history of success are discussed hereunder.

Or,

b. Request for Appearance Bond. This document is a court brief that instructs the court to have an appearance bond issued (at no cost to you) in order to underwrite the case and the appearance of your strawman at scheduled court hearings. The court’s failure to issue the bond allows you to utilize their dishonor/obstruction as a grant of their signature by accommodation to be used in a subrogation surety bond. You notice the court that you are requesting an appearance bond, backed by your

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exemption (on the private side), at no cost to you. Technically the granting by the court of your request discharges all obligations connected with the case, ends the dispute, and makes you the owner of the matter. At this time we are awaiting final outcome of using this process.

If the matter is a commercial bill such as a credit card statement or other invoice, and they ignore what you have done and continue sending you more invoices, treat each new bill as an original presentment. Each statement is another offer on which you can do the same process. This is true of any matter, such as mortgages, credit cards, etc. The offerror’s non-response signifies his tacit stipulation that he owes you the amount on your bill. He has implicitly agreed that he owes you the funds by not responding, he has invoked the doctrine of acquiescence and estoppel by silence.

As valuable as a judgment in estoppel on the law is, it is not the best we can make of a situation. We would like to make money from the event. For this we need a second judgment in estoppel—one on the facts/money. When you do this you establish on the record the amount that the offerror owes you in costs, fees, and damages. The amount can be anything you choose, since only you can decide what you think the matter is worth to you. Besides, it is all nothing but digits in the matrix.

If a court procedure is involved, as soon as possible file a court brief in standard court pleading format entitled “NOTICE OF ACCEPTANCE,” by which you notice the court of the following:

1. You have accepted the charging instrument for value Banker’s Acceptance and returned it in exchange for settlement and closure of the accounting concerning the matter.

2. Settlement of the account has been done privately by exchanging your exemption for discharge of the obligation by use of your Private Treasury UCC Contract Trust Account, No. [SS# w/o dashes].

3. You are operating in capacity of being the living principal, authorized representative, and attorney in fact for the strawman.

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As exhibits / attachments to your notice of acceptance, include color copies (preferably certified by a notary as true copies) of the following foundational documents: 1. Employer Identification I,

2. Private Agreement,

3. Security Agreement-Pains and Penalties,

4. SPA-IHHA.

Also file:

1. Notice of Request for Waiver.

2. Notice of Request for Remedy.

Put an autographed and bulled-stamped postage stamp on the back, lower right hand side of every page of every court brief you file. Obtain multiple copies of your documents to the court and have the clerk file stamp them all.

If the case is not dismissed (which it usually is), file the Court Bond.

B. Explanation of the process involved in accusation and prosecution

The situation involved in having to appear in court is as follows:

Private/Substance/Fact

Existential Event -> Subjective Interpretation by Accuser, with alleged Injured Party and Claim of mens rea (criminal intent)

Public/Reflection/Interpretation

Statutory Criminal Charges -> Civil Resolution by agreement of the parties

The sequence is this:

1. You commit some actual act (such as writing a check on a closed account), which is simply an event in reality. You inscribed something on

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a piece of paper. So what? You also walked to the grocery store, ran into a friend, and planned a dinner party, all are simple happenings, with no legal charge attached.

2. Someone (some living being, the complainant) has considered what you did to be a crime you committed with criminal intent (mens rea). In other words, out of an infinite number of possible subjective, inner motivations you might have had for doing something, and an infinite number of possible ways anyone can think about what he perceives of your action, the accuser chose to adopt the perspective that what you did was a crime that you committed with criminal intent. The first is a value judgment, the second, regardless of substance, is nothing for which anyone but you possesses authority to speak. The accuser can neither know your intent nor does he have any right to speak for it. He can observe your outer behavior, not your inner motivation.

3. The interpretation that what you did is a “crime,” as well as what that “crime” is, what statutes you allegedly violated, the basis of prosecution, etc., are all applications of the facts to the accuser’s presumptions / assumptions / priorities / interpretations / motivations.

4. The complainant swears out a complaint under affidavit that you did what he says you did and submits it to the prosecuting authorities for them, as “public servants” (serving the system, not you), to investigate, and thereafter prosecute, your strawman (with you attached unless you rebut the presumption of the contrived union).

5. The first thing across the mirror (the bar) onto the right hand side of the bar, i.e., public/debt/bankruptcy mirage-land, is the criminal charges, which is what the public side indicts you for. Since the public side is debt, reflection, and bankruptcy, nothing of substance and reality can originate there. The public side must reflect something real on the private/substance side and then adjudicate the imaginary dispute concerning the arbitrary interpretation of the actual event, calling it a “crime”, and saying it violated one or more of their statutes. The event itself is nothing other than an occurrence in reality, a thing-in-itself that is completely neutral. If someone calls it a crime that is his projection/interpretation of his mental processes and priorities. What he makes of what you allegedly did is his business, not yours. What do his

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mental processes have to do with you? He is manufacturing fiction and projecting it on you, attempting to lure you into traversing into his imaginary, let’s-pretend world and deal with what goes on there. You receive a complaint that says, “On or about June 5, 2001, John P. Smith (you) did willfully do blah, blah, blah.” So you read this, blush, and say to yourself, angered and fearful inside, “That dirty rat, I did not!” If you join his game and try to disprove his fiction you have left your domain, departed from solid ground, and ensconced yourself firmly into a swirling mirage of your accuser’s fertile imagination. Why write yourself into his novel? 6. In a criminal case the system functions by getting people to plead to the criminal statutes on the public side. Then the matter shifts from criminal to the civil (agreement of the parties) for resolution. If you take this route you are down the drain. The proper way is to obtain a civil (meaning money) resolution on the private side so that the dispute is ended at its source and there is no controversy for any tribunal to resolve. This resolution occurs by stipulation between the parties as real beings. Once that agreement is reached on the private side (the origin), the possibility for any public action is eliminated. There is no longer anything to drag across the bar and into the public domain.

7. For securing the stipulation between the parties that ends the dispute on the spot, admit to the facts in the charging instrument (after having accepted everything for value, of course). This can be accomplished by a statement such as, “I have no problem with pleading guilty to the facts stated in the charges.” The prosecution says you wrote a check on a closed account. OK, you did. That is a fact, not a charge, so agree with the statement. By so doing you are not agreeing that what you did was a crime, or violated any statute, or can be any basis for prosecuting you. You have merely agreed to a fact in reality, thereby reaching a stipulation with the prosecutor that end the negotiations. Because there is stipulation between the parties, there is no longer any controversy for a court to hear and entertain. The agreement between the two of you ends the matter. When there is agreement on the private/substance side the subject matter can never get to the public side, because no dispute exists.

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8. Concerning the bonding of the case, your discharge of the matter by use of your exemption makes you owner of the transaction.

9. Keep in mind that if you follow their lure, what they present to you as the way to go, you are dead. They want you to plead to the statutes, not the facts. The statutes are their property, their “truth” (i.e., fiction), and jurisdiction concerning which you have no authority to deal. You own yourself on the substance side but have no claim on interpretation of facts that someone alleges on the private side (out of his belfry) that he wants you to deal with on the colorable, public side. If a matter is ended at its source (the private domain) there is nothing to bring into the public arena.

10. By pleading guilty to the facts on the private side you are demurring. “Who says I can’t write a check on my own closed account? I placed some ink on a piece of paper, but so what?”

11. Remember that no one on the public side can charge anyone with a crime on the private side. Only people act, strawmen do not and cannot act. Therefore, deal with matters between you and your adversaries privately, forming private contract (usually by their tacit consent through non-response) between you and them. The terms and conditions of the contract include the fact, established on the notarial record, that that they stipulate that the matter is resolved, so no dispute exists. Sic transit case.

12. Someone invoking the system must post a bond to invoke the services of a court. The authorities cannot arrest you without an order (warrant, which is a check) from a court, and the only way a court can obtain the jurisdiction to issue a warrant is by someone having posted a bond indemnifying the court and granting the court subject matter jurisdiction (funds against which to execute the warrant/check) to adjudicate the matters you are being accused of. You must require that they provide the audit trail of the accounting on that bond that allegedly bonds the case.

13. If you are presented with a warrant, accept it for value, write “exempt from levy” on it, sign, date, and return it to the court. This grants the court authority to use your exemption in exchange for release of the property, i.e., return of the bond to you (as the creditor and insurer).

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14. The Court Bond gives the court subject matter jurisdiction. If you are the creditor—paying with substance and not liability funds—it is your court. The court serves the creditor. When you have title to the bond behind the criminal prosecution there is no way you can go to jail because you have discharged the bond that would otherwise result in your being seized and incarcerated as the surety for your strawman that they treat as a debtor (defendant, loser) in a dispute.

15. If you enter a plea when no bond has been posted, you have broken the law by pleading to non-existent charges (i.e., color of charges). Also, you have granted the court subject matter jurisdiction to prosecute your strawman on the public side as the debtor. Posting a Court Bond removes all basis for continuing, the matter is resolved by your discharge on the private side.

16. Having a hearing in an admiralty court is not a common-law right, it requires posting a bond so that the court can have in rem jurisdiction. The property at stake in the proceeding is the bond. You must secure title to the bond behind a criminal prosecution if you wish to be immune from conviction. How do you get title? There must be an agreement between the parties concerning the identity of the creditor on the bond. The court will probably try to secure title by asking you to pay a small fee for filing the bond. This is a trap.19 One way or another you must provide the asset that balances the books. The issue is not whether you discharge the obligation, but what kind of funds, i.e., in asset funds or liability funds you use for doing so. If you use your exemption you secure title, if you use FRNs you forfeit title. Therefore, you suggest that either the court waive the public administration fee for registering the bond or secure the fee by performing an adjustment and offset through use of your Private Treasury UCC Contract Trust Account (EIN#). If the court does not do either it is in dishonor of you, as the king/creditor, authorizing you to discharge the matter by bringing involuntary bankruptcy against the court to discharge the bond because you have established yourself as the owner by your acceptance for value and willingness to allow your exemption to be used for discharging the obligation.

C. Strategy concerning court

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One of the most difficult positions to be in when inside a courtroom is sitting down. It is best to wait outside—or in the back of the courtroom - until the strawman’s name is called. Then walk towards the bar to speak and do not sit down. Sitting is inferior to standing, and if you go through the drill of being in court before the judge enters, standing up upon hearing the bailiff announce, “All rise,” and then sitting down when instructed to do so, you are signaling by your behavior that you are an obedient serf and subject of the court and within its jurisdiction. This is not a desirable position. A maxim of law concerning this, states: “It is immaterial whether a man gives his assent by words or by acts and deeds.” 10 Co. 52.

When your strawman’s name is called, when spoken it sounds the same as your upper- and lower-case name (see “idem sonens,” meaning “same sound”, in Black’s Law Dictionary, 4th Edition). When this happens, do not say “here”. As soon as you give your name, you testify that you are in the public side. You testify that the real you, is the strawman/Defendant on the paperwork, at which the judge is looking. You form a contract with the court, by which you agree that the real you may be treated in accordance with the way they treat the strawman/Defendant. You surrender to the court’s jurisdiction. You agree to leave your own ground and domain and go join them on the schoolyard in their let’s-pretend cops-and-robbers game.

The crucial points to keep in mind in any court interaction are as follows:

1. The courts are equity/admiralty/probate/trust courts, not courts of law. In such courts there is neither law, nor substance, nor facts, nor evidence, nor charges. There are assumptions, presumptions, color of law, color of substance, color of facts, color of evidence, and color of charges. Officials and attorneys execute the paperwork and pleadings as if (let’s pretend presumption) your strawman is the trustee (Defendant, actually co-trustee of the public, cestui que trust created by the 14th Amendment ) with a duty and the State (Plaintiff) is the beneficiary (i.e., co-beneficiary of the public, cestui que trust created by the 14th Amendment20) who has allegedly been deprived of his trust benefits by the delinquent trustee. Trustees are always outside common law.

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19 Even the use of the word “pay” is a trap. We are better off not using it in interacting with the system. Since there is no money, but only debt currency derived from borrowing against the people, there is no way to pay a debt. We discharge obligations, not pay debts.

20 The cestui que trust is a “public charitable (collective) trust”, or “PCT”, that is constructive and not express. “Constructive” means that the trust is constructed (created, manufactured, concocted) by “operation of law”, i.e., out of nothing, as just another of an uncountable number of legal fictions of which the entire system consists, by the whim and fiat of those who own the particular law forum in which the trust is indentured and domiciled. In the case of the United States, this jurisdiction is the private, commercial, international, military jurisdiction of the original incorporation of US Inc. in 1871, within the 14th Amendment and emergency war powers implemented at the advent of the civil war that suspended law and terminated thereafter operation of the “de jure” government under the original charter, the 1787 Constitution.

A “citizen of the United States” was created by / within the 14th Amendment as a corporate, civilly dead entity, operating as a co-trustee of the PCT. The 14th Amendment upholds the debt of the USA and US Inc. in Section 4 of the Amendment, which states that the “debt shall not be questioned”. That is part of the terms and conditions of your co-trustee position. If you question the debt you are in violation of your own contractual obligations. Endeavoring to find fault with the system or any of those operating on its behalf is considered as arguing against yourself, which every judge immediately dismisses as self-evident error, if not insanity. No wonder judges are so fond of ordering psychiatric evaluations for those who appear in court these days.

It is presumed that everyone who states that he is a “citizen of the United States (Inc.),” or acts as if he were, has knowingly, intentionally, and voluntarily contracted into the private, military, international, commercial admiralty/equity law forum of the 14th Amendment PCT, surrendered all rights, and agreed to be bound by the alleged resulting contract. One is now “on the ship”, where the captain’s word is law, and trying to protect your rights, finds the system in error, or walk off the job is walking off the plank.

In the PCT, every citizen of the United States acts in a dual capacity: as co-trustee and co-beneficiary. This means that as a “citizen” you have on the one hand (as co-trustee) obligations and duties, such as the requirement to comply with all the system’s codes, rules, regulations, laws, statutes, and public policy, and on the other hand (wearing the hat of co-beneficiary) you can receive benefits, such as welfare and other rob-Peter-to-pay-Paul token benefits such as “retirement benefits,” “unemployment insurance,” and other trinkets doled out in exchange for having, like Esau, sold your birthright for a bowl of porridge. There is no grantor or trustor (although there is a creator) to a PCT because it is an implied trust, i.e. constructed, and not formed by express, written, bilateral contract.

Once you are in the PCT, you can contract into Social Security, which is a reversionary, revocable trust in the New Deal, a socialist/communist scheme in which all participants

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are “tort feasors” who secure, by membership, benefits to which they are not entitled by having been extracted at legal gunpoint from other people. Accepting SS (or any other government) benefits are accepting stolen goods, providing the system with an excuse to consider you “guilty until proven innocent”.

Therefore, in any court case, the action is being brought by the allegedly offended beneficiary, the Plaintiff, as (implied) co-beneficiary of the PCT, against Defendant, the (implied) co-trustee. This is why the “law” and “facts” are all completely irrelevant. If you go into court trying to argue either, you must necessarily lose since the only issue is whether your strawman faithfully performed its duty as trustee of the trust, such as to obey the statutes, pay the taxes, or whatever else is required in accordance with the ever-increasing ocean of by-laws of US Inc. If you raise objections of “law” or “facts,” you not only traverse and dishonor (by arguing), and therefore automatically lose, but you give witness/testimony against yourself that you are a bad (delinquent) trustee trying to escape your duties as a co-trustee of the PCT. You are thereby presumed guilty. Your fatal error is not first and foremost that you argued, denied, rebutted, traversed, dishonored, and tried to avoid your contractual and fiduciary obligations (of a contract you ratified countless times by accepting innumerable government “benefits,” such as Social Security, obtaining a driver license, getting a passport, etc., etc., etc.) as co-trustee, but that you failed to rebut the presumption that you are the co-trustee, i.e., the same as the Defendant/strawman/citizen. This is why there is only one issue and all the rest is so much irrelevant froth. The issue is whether or not you rebut the operational presumption. If you do not, nothing else matters, the presumption (where the power and teeth are) stands and you lose.

2. You, as the living principal, are real and exist on the substance/private side. The strawman, all-caps name, Defendant, is fictitious and exists on the imaginary/public side. The living principal cannot be seen, addressed, or dealt with by the public side, which is a reflection in the mirror and a chimera. The Defendant cannot enter or access the private side just as the living principal cannot enter the public domain.

3. It is essential to neutralize the presumption by which the system operates against us, which is that the living principal is presumed to be attached to and united with the strawman so that whatever is done to the strawman is imposed in the flesh on the living principal. It is the unrebutted presumption of the union of the real and fictitious that enables the court to access the real you. This is why it is crucial to neutralize that presumption and render it inoperable.

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4. You must not traverse or dishonor. You cannot win by arguing in let us pretend mirage-land.

5. You must end the controversy, i.e., terminate the presumption of the existence of a dispute, on both the private and the public sides. The obligations/charges must be discharged so that the books balance and you have complied with the law in both domains.

6. The public side is bankrupt, has no capacity to execute a sentence, and cannot charge you in common law. The charges are “in the nature of” (meaning colorable) civil or criminal charges in common law, meaning they are in form only without any of the substance. This is also (among other reasons) why you cannot lien public officials: doing so is a common-law (substance) process, and as bankrupt entities they cannot provide you with a remedy. Trying to lien public officials is a dishonor and crime by endeavoring to impose a common-law remedy in a sphere that cannot access common law.

Several possibilities (in lieu of or in addition to the Three Questions approach, below) for dealing with the name issue come to mind. These statements are intended as satisfying all of the above essential elements. When your strawman’s name is called or the judge asks you your name, you could say one of the following (whatever you are comfortable with):

• “I am here concerning that matter.” Or,

• “I am here as a third-party intervener21 in that matter appearing as authorized representative for my client.”

21 The third-party intervener is you, the living principal, acting in your own interests because you have a pre-existing claim against the Defendant that precludes them from acting against any version of your all-caps name based on your prior contract therewith (such as your UCC, Specific Power of Attorney and Indemnity and Hold Harmless Agreement, your Employer ID, etc.)."

Then continue:

• “I accept for value and return for value all of the charging instruments in this matter and make my exemption available [not “offer,” since we never make offers] for discharge of all obligations and charges connected with this case. I do not dispute any of the facts in the charging instruments.”

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We must remember that problems are not solved on the level of problems: we cannot resolve the imaginary dispute in the imaginary domain. We must not try to pay with public funds, we must not try to prove ourselves innocent, and we must not plead “not guilty” (which is arguing, traversing, dishonoring, and telling them that you are joining the imaginary game and treating it is if it were real). All attempts to do these things are traversing and dishonoring, breaking the law, and committing treason against the equity court by trying to deal with the dispute as if it were substantive, private, real, and in common law. The court then convicts us for contempt of court and imposes the common-law sentence.

We must also remember that they need us, as the living principal, to be a witness against ourselves, testify, and make the legal determination for them that we are the one they are looking for in their let’s-pretend game and want to prosecute, convict, and punish. They need us to volunteer into contracting with them in their public domain. They cannot make the legal determination that the Defendant has anything to do with us, it is up to us to hang ourselves. The above statement satisfies all of the essential criteria, as follows:

1. The catch-22 of the matter is that under common law you are presumed innocent until proven guilty, whereas in their admiralty/equity courts you are presumed guilty until you prove yourself innocent (which is impossible in their let’s pretend/presumption game). If you try to prove yourself innocent you are in dishonor and are charged with a breach of trust to the beneficiary, the State. By so doing you commit treason against the court by trying to secure a common-law remedy where none is possible, and you do not neutralize the presumption (and indeed, ratify it’s force and effect) while admitting that you have been a delinquent trustee and acted in violation of your fiduciary duty.22

2. You, as the living principal on the substance/private side, are speaking on behalf of, but not as, your strawman/Defendant. Ideally you have filed before ever going to court your Court Bond and Notice of Acceptance, Standing, and Status, Request for Remedy, wherein you have attached your accepted-and-returned-for-value documents and your standing / status documents that define and clarify your standing as living principal and authorized representative for your juristic person, ens legis, strawman.

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3. By proceeding in this manner, especially when supported by your notary-witnessed documents, you neutralize the presumption that you are attached to and united with your strawman.

4. You do not traverse or dishonor, thereby disarming and defusing the matter.

5. You end the controversy by your acceptance and return for value, filing the bond, and stating that you are not disputing the facts in the charging instruments. By not disputing the facts (on the private side) you remove the dispute at its origin and leave nothing to resolve in the public arena. By making your exemption available to discharge the charges you are in harmony with the law, leaving no violation to prosecute. Technically you could say, “As the living principal I do not dispute the facts on the private, substance side and my client pleads guilty to the charges on the public side”.23 The point is that if you end the controversy on both the private and public side there is no dispute for a court to hear and entertain. There is no one and nothing to prosecute. Then, if they wish to convict your strawman of something, let them find the strawman guilty on their own (leaving them exposed). They are welcome to put a piece of paper with the Defendant’s all-caps name on it on the electric chair, throw the switch, and discharge the charges through the paper while you are out having dinner with your girlfriend.

22 An interesting property of their equity courts is revealed by remembering the maxim of law that “Anything inside a box is not there.” Consequently, the following persons/players are not there: 1) the jury, which sits in the “jury box”, 2) the witness, who gives “testimony” in the “witness box”, and 3) the judge, who sits on a platform, which is also a box. Only the trustee (Defendant) and beneficiary (State) are there and relevant to the proceedings, all the rest are part of the Wizard’s smoke-and-mirrors light show of diversion and misdirection.

23 The authors have never heard of this being done, so cannot vouch for the results that might accrue from doing so. Since this statement is accurate, explicit, and addresses both sides of the bar, it theoretically should be effective.

6. By not traversing into the game, and by not trying to defend yourself or your strawman against the charges, you do not enjoin the substantive, private, common-law side with the civil or criminal charges and thereby become the victim of sentencing as a result.

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The intent of using the above approach is to truncate the time, effort, and dialogue involved in dealing with giving one’s name in court. If you are this situation and it looks as if it is not getting the job done and getting you the closure you desire, you can at any time go to the Three Questions approach (discussed below).

Placing evidence in court

In the meantime, if you are in a court proceeding, although no one and nothing operating from the public side (i.e., all attorneys and government officials) can place actual evidence on the record, you, as the real being (especially with a notarial witness) can! People and documents you can subpoena for deposition and evidence in your favor include the following:

A. In both civil and criminal cases, subpoena persons for deposition and/or bringing in documents you require as evidence in the case. These parties can include the mayor of the municipality, as well as the risk management accountant of the municipality, with documentary proof that the insurance books on the case have been adjusted and a bona fide assessment has been made of the bond (the original complaint filed in the court). The voucher that must be issued (by/in the department of risk management of the municipality in which the court is located) is to monetize the complaint that created the funds by utilizing the derivative name (the all-caps name of the DEFENDANT), supported by municipal bonds.

Serving a subpoena duces tecum, hereinafter “SDT”, whether or not you depose anyone for direct questions, is appropriate in both state and federal cases. Obtain several official, stamped subpoenas from the court in advance. In the section asking for documents subpoenaed, print, “See attached SCHEDULE OF DOCUMENTS SUBPOENAED, SET I”. You can have the SDTs served by a process server, sheriff, or US Marshal, and serve the prosecuting attorneys, and perhaps also the mayor of the municipality in which the court is located, and the head of the department (or accounting department) of the municipality department of risk management. The documents you should subpoena and require them to provide you with are as follows:

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(A) Civil. 1. Basis upon which prosecution concerning Case No. [Case #] Case No. [Case #]may continue after Authorized Representative has accepted and returned the charging instruments and Case for value and posted a bond secured by and through Authorized Representative’s exemption (and therefore discharged the obligation and ended the controversy),

2. Certified copy of the assessment in fact on which the charges re Case No. [Case #] are based,

3. Certified, true copy of the order from the Secretary of the Treasury to collect the debt obligation of the Defendant re Case No. [Case #],

4. Certified audit trail of the voucher for monetizing the complaint/bond on the case.

(B) Criminal. All of the above items for civil, plus:

1. The detainer authorizing incarceration of [DEFENDANT] and the accompanying physical body of [Name] re Case No. [Case #].

Their failure to provide any of these items is a tort and grounds for habeas. As for the evidence you wish to establish on the record, first file what you want judicially noticed as evidence. This should include your Court Bond. As soon as your documents are filed, obtain at least two (2) certified copies from the clerk of the court. Keep one set in a safe place. Take the other set with you to place into evidence in open court. Once you serve the evidence on the court it cannot be denied. You give your documents to the bailiff, who serves the judge, and even if the judge throws everything back at you it does not matter. What you want to put into evidence has been served. The documents for you to file in the case and serve on the judge in open court should include the following:

1. The judge’s oath of office that you received from the secretary of state (or whatever official source provided it to you),

2. Your Court Bond that bonds the case,

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3. Proof that you have accepted the case and all charging instruments for value and returned them for value,

4. Your judgment in estoppel on the law (first certificate of non-response) that the notary served on the opposing parties,

5. Your judgment in estoppel on the facts / money (second notarial certificate of non-response).

Part IV - Redemption in Court The following are points (allegedly derived from Roger E material) on the “Redemption”, or “Three Questions”, approach to functioning in court: Background 1. The word “law” comes from "llall”. The "l" was originally a double-"ll”, which came from hieroglyphs signifying "two legs walking”. "Law”, however, is an obstruction because the "two legs" walking around show that law is constantly changing. In the United States, for example, Americans get to live under approximately 150,000 new laws every year passed by combined federal, state, and municipal legislatures. In 1984 there were over 200,000 such new “laws”. We have been informed by attorneys, as well as West Law, Lexus, and Nexus, etc., that the law changes so rapidly that in many cases an attorney must check to see what the law is today before he goes to court. (My retort each time I was informed of that was, “What if natural law behaved in so unstable a manner?”)

2. A court is a “place where a contract or agreement is made”. A court is a “commercial register”. One consequence of this is that all courts are “courts of record”. Indeed, there is nothing with which a judge can deal except the record. How can a judge act in the absence of paperwork in his possession that informs him what a case is?

3. In accordance with the principle of agreements, if someone fails to respond in protest you in essence have an agreement that includes his stipulation that he is in dishonor.

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4. When you are formulating an agreement, the first thing you need is the name of the second party. This is why in court you first ask the judge if you may have his name. Note: the Court is working on an assumption of contract, not an agreement in fact.

Procedure/Dialogue

The Redemption dialogue makes the court proceeding into a deposition that you are conducting for the purpose of establishing on the record, who the claimant is in the case. You are there under threat, duress, and coercion, since guaranteed harmful repercussions are inevitable if you do not appear when/as commanded. You are also there because someone, somewhere, has made a claim—or color of claim (implying, or calling what they allege without foundation a “claim”—against you that allegedly justifies enforcing the claim against you by using the legal-violence system. By engaging in this deposition you are actualizing the maxim of law that “the burden of proof resides on him who asserts, not him who denies.” You want them to prove the nature and cause of their alleged or implied claim. In other words, you—as the creditor, owner of the court and both sides of the transaction—are requiring them to “put up or shut up”. When you go into court like this you are exercising your rights under public international law to determine what kind of business these people are trying to do with you.

In any interchange between you and the judge, whether it is you requesting that the judge answer something you are asking him, or him asking you a question, you must persist until the judge sees that you are not going to give in. This is perhaps especially important if/when a judge asks you to state your name, or asks if you are so-and-so. He may ask at least three (3) times, since the system functions in threes. The judge needs to know that you are clear and secure about what you are doing and will not cave in under the psychological pressure that he is so well trained in applying on those who are before him in court. Likewise, you may have to state your requests three (3) times until you receive either an answer, or a non-answer (which stands as an admission on the record of your position in the matter).

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1. The first thing you do is ask the judge for his name so the record is set concerning the parties entering into an agreement. Therefore, when your name is called, you say, “I am here concerning that matter. May I have your name please?” Request number 1.

2. Pay attention to the fact that most Judges/Justices prefer to give their title, NOT THEIR NAME.

3. If the judge gives his name, request: “Would you please spell that for me”.

4. If the judge gives his title (such as “Judge Smith”), request: “Your offer of communication is accepted for value and your dishonor is returned. Please state your name, NOT YOUR TITLE.”

5. If the judge states that it is a TITLE/NAME, you can ask: “Is that TITLE/NAME (such as JUDGE SMITH) the same TITLE/NAME that is registered with the Secretary of State?” If not, it is fraud and the entire matter is void because the judge is doing business as a name (and therefore as a different entity) than that by which is registered as authorized to do business (another derivative).

6. Now if the judge will not give his name, then go ahead with your second request anyway. If someone with whom you are dealing in court fails to respond or is standing mute it means you are in control and he is waving his rights. Request number 2: “Do you have a claim against me?” He will either stand mute or he will decline to answer, signifying his intent to demur to the matter.

7. When you receive a “no” answer, or no response, or a non-responsive response, go on to Request number 3. “Do you know anyone who does have a claim against me?” Note that you do not say any "person" or "anybody that" has a claim. It is anyone "who" has a claim against me, i.e., a living principal who is alive and breathing in the real world. You are not pleading into a fiction or a legislative venue, which is the major legislative premise (presumption) on which the court functions. This presumption stands unless neutralized.

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8. If the prosecutor answers you by saying something like “The State of California has a claim against you,” you can say either “Your honor, would you please direct the prosecutor to produce the assessment for the charges.”, or “I call the claimant to the witness stand.”, or, “I call the State of California to the witness stand”.

9. Now if you receive a "No" answer or non-responsive reply to your request for the judge to inform you whether he knows anyone who has a claim against you, and the prosecutor also says “no”, then continue by directing the Judge, 1st position as a request statement: “I request that TITLE/NAME please direct the prosecutor to answer whether there are any more charges.” Asking the judge this cuts down on any more assumed charges. On a good day the prosecutor will refuse to answer and the Judge will dismiss the case on the spot!!!!

10. At this point you can direct the Judge, 2nd position as a request statement: “I request that TITLE/NAME please direct the prosecutor to answer whether the assessment for the charges is in his/her possession.” Making this request of the judge forecloses the system from acting on the otherwise un-neutralized assumption that you are not concerned whether there is a civil assessment to justify the charges. Without an assessment there can be no charges (see §§ 18 & 19, below). Asking these questions puts the prosecutor in trouble, as if he does not immediately drop the charges he is practicing law without a license, which is a felony!

11. At this point you can direct the Judge, 3rd position as a request statement: “I request that TITLE/NAME direct the prosecutor to provide the assessment for the charges along with the certified audit trail of all transactions (held by the mayor of the municipality and the applicable risk management department) including the voucher and all disbursement documents and receipts.”

12. At this point you direct the Judge, 4th position as a request statement: “I request that TITLE/NAME please direct the prosecutor to provide the serial placement number of his/her bar card.” NOTE: many times the prosecutor is not qualified even to be there (which is often the situation in federal court), and the bar card, which is an OMB number, can be used as the number for a surety bond.

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13. At this point you direct the Judge: 5TH position as a request statement: “I request that TITLE/NAME please state for the record if you have subject matter jurisdiction.” NOTE – if there are no further charges, no assessment for the current charges, and no subject matter jurisdiction, the court is in a forfeit position.

14. If you elect to utilize the appearance bond matter within this Redemption approach, this would be the place to bring the matter up [as of this writing requesting an appearance bond may be eclipsed by the single-page Court Bond on court-pleading paper]. Then your 6th position consists of your request for the appearance bond. Making this request in effect puts your name on the account and thereby charges the account so that when the appearance bond is discharged (by appearance) the operators of the account are put into immediate INVOLUNTARY BANKRUPTCY. If there is no assessment for the charges, more than likely they will not issue an appearance bond and you can therefore issue a subrogation surety bond.

15. Should anyone hand you any piece of paper, in particular a paper in which they want you to read the assumed “charges”, scan the front and back of each page and say, “I cannot see any charges.” Hand the paperwork back to the one who gave it to you and then direct/request the Judge to have the prosecutor read the charges.

16. DO NOT LET THEM WAIVE THE READING OF THE CHARGES. Once more repeat the request for the assessment for the charges. Persist on this point. Once that point is resolved, state that you are not disputing any of the facts in the matter and admit to the facts in the charging document. The point is that the system wants you to accept the face appearance of their documents and statements as gospel, so that you self-assess and testify as a witness against yourself. Do not waive the right to require them to provide you with the civil assessment. They never have any valid criminal charges, nor any assessment to support the civil charges (all actions today, both civil and criminal, are actually civil, i.e., commercial). Do not let them off the hook and hang yourself. Require that they substantiate the charges.

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17. USE YOUR INTUITION AND WHETHER TO USE next phrase after the gavel fallen (the discharge)! “I request that the order of the court be released to me immediately.”

18. This is not a question, it is a request. You do not move the court because doing so is asking for a benefit. By making the request, you are in essence saying, “If there is no firsthand witness or claimant present, on what are you operating? Give me your marching orders.” You are demanding to see the order of the court.

19. When you say/ask/request these three things, you create a small claims court. A small claims court has different rules and procedures than a commercial admiralty/equity court. In a small claims court there are no Titles of Nobility, attorneys cannot be present. 20. The parties themselves state the claims in small claims court, so we will know who has a claim and who does not.

21. If there are no claims then there is a default to investigate.

22. This Three Questions process also constitutes an inquest hearing on a 'show cause.' You are doing a coroner's inquest or a probate into the matter of any claims against you. In this inquest, only those who have firsthand information concerning the claims may testify.

23. If you are conducting a public inquest into the matter concerning any claims that may be brought against you, and no claims are brought, the matter is concluded, the public inquest is over and you are out of there. 24. Now, there are some variations that can happen with this. The judge or the prosecutor might say, "The State/Province/Department of ______ has a claim against you.” No, they do not. They may have charges (i.e., what they call “charges” but which are actually only a presumption of charges, i.e., color of charges, since there is no assessment), but not a claim. Charges are not claims.

25. Some judges get cute, saying things like, “My name is judge so and so”. Well, that is a fiction. That designation does not pertain to a real party, and is not a name that can be entered in the "commercial register”.

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"Judge So and So" is an unregistered fiction, i.e., doing business under an unauthorized and unregistered name.

26. At that stage of the game, you should alter your questions somewhat.

27. “Is there anyone present to press the claim against me in any alleged name other than his own?”

28. If the prosecutor wants to stand up and press that claim (of which there is miniscule chance), then you demand that he be sworn in to testify under oath as to the damages creating and validating the claim concerning which he is testifying. Now you have your inquest.

29. He is not going to swear in24, so you say, “There being no claimants who have sworn in under penalty of perjury today with a firsthand damage claim, it would appear as though there is no more public business concerning me. I am withdrawing.” There is no credible witness, and therefore no admissible evidence. No one will swear with responsibility and firsthand knowledge that there is a claim because it does not exist. Even if they have evidence, it is rendered hearsay and presumption for want of any credible witness to substantiate the validity of the evidence. Prosecutors are attorneys, and no attorney is a credible witness who can testify under oath on the witness stand that the evidence he places on the record is valid.

24 Attorney’s statements are arguments, not evidence. That is a double fault, since such behavior is both dishonor and presumption. To be evidence, whatever documents are filed would have to be substantiated as valid and verifiable by testimony under oath. No attorney can do this, i.e., take the witness stand and swear in, because he is not speaking for/as himself, with firsthand knowledge and defined commercial responsibility. He represents, i.e., “re-presents,” by derivative re-invention, what he has been told (hearsay) or thinks would be expedient to say (fiction).

30. Don't allow the Judge to hoodwink you into allegiance.

31. Do not follow the orders of the judge, or the judge becomes the head and you become the tail.

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32. It is either the judge's private business that is going to go on in there, which is the business of the corporate state, or your private rights under public law.

33. If you traverse into his business you abandon your claim. Do not traverse, make requests instead. Avoid even the appearance of dishonor. Politely requesting, rather than engaging in behavior that might be interpreted as confrontational, can work wonders.

34. What is an "order"? Public people are acting under the premise of legislative jurisdiction. They MUST have delegation orders that give them authority to do what they are doing. Once you have gone through the first 3 questions: The name, the claim, know anyone who has a claim, if there is no response, then nobody has come forward with a claim against the one asking the questions, i.e., you. In such case there is no cause of action and your adversary has “failed to state a claim upon which relief can be granted.” 35. Where would an order of the court come from? The order would have to come from the Secretary of the Treasury, because he is liable for all the books and is the one that appraised the security instrument. So, if they do not have an order going back to the Secretary of the Treasury, they do not have any authority to collect the debt. Remember the universal operating premise on which the legal system functions: Unrebutted presumptions rule.

36. When they issue a citation, complaint, information, or indictment, somebody has already established a commercial value on that instrument. Although there might be a set of papers in the administrative process, like the court documents, we know (and reason, logic, and common sense tell us) that there is a set of commercial (banking) documents and accounts paralleling the legal. Commerce is more fundamental than law. Commerce can function without the legal system, but not vice versa. Law is a subset and derivative of commerce. There is an equivalent commercial world and universe in bookkeeping that parallels and underlies the legal judicial bookkeeping.

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37. If an indictment is issued, such as on tax evasion, there must be an appraisal that says that the appraised value of this indictment is $100,000.00.

38. So, in the Treasury, whenever an indictment goes out it claims an asset by way of the security instrument in the sum certain amount of $100,000.00. Then there is a corresponding side to the ledger sheet which is an accounts receivable of $100,000.00 to back up the asset. Is this not DOUBLE ENTRY BOOKKEEPING?

39. If you do not address the commercial aspects of the citation, complaint, information, or indictment, then they have an asset on their books that remains. If it is not adjudicated they have an accounts receivable that is aging.

40. If you dishonor the asset - the indictment - then, their books are unbalanced, because a dispute exists as to the asset, and the accounts receivable of $100,000.00 that they are looking for, remains uncollected.

41. If the prosecutors have no order from the Secretary of the Treasury to collect the alleged debt against the Defendant in the case, they are acting as rogue agents. Obviously the order is an item that one could subpoena the prosecutors to produce by subpoena duces tecum.

42. Remember, you (i.e., your strawman) are there in your “public capacity”. Under public international law, private rights are recognized, authorizing you, as the living principal appearing as authorized representative and attorney in fact for your client (your strawman). The real you can be damaged by the proceedings, and, in addition, you have a pre-existing claim against the debtor, the alleged Defendant (your strawman), such as is noticed by your UCC Financing Statements. But as soon as you engage in a co-business venture in their private business (by traversing, dishonoring, or not accepting for value, posting bond, and discharging the charges), you are in their court in a business contract.

43. By requesting that the order of the court be released to you immediately, you are demanding that if you are there on public business involving you, then you want to know who is behind the claim. That request constitutes a public verbal demand for a Bill of Particulars! This

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removes any assumptions/presumptions around the agreement in question. You are trying to determine the nature and cause of the claim—what it is and who made it.

44. If you receive no response from anyone you are entitled to make the following statement, “It would appear as though I have completed my public business here today. There being no further public business to carry on, I'm withdrawing.” Now you are giving your equitable notice to the parties present. You turn and walk out. If anyone tries to stop you, start the Three Question process all over again with him.

45. You do not care what the judge says, you just go on, and you just go through the routine and direct it at him. Usually they will give their name to start with. Anybody who addresses anything in there is doing so in your court if you have not traversed, not dishonored, and have posted a bond. By bonding the action through your exemption you discharge the charges and end the controversy on the private side, thereby owning the transaction and the court. They are now your employees and, without any reality on the private side to reflect, the public side is left in an untenable position. If, however, you start acknowledging any of their procedures in there, then they are going to assume you are in their court and not yours. They want you to recognize, i.e., make the legal determination concerning the identity of, the accuser, either by body language, testimony, or otherwise so you become a witness against yourself. If you accuse yourself, no one else is required to do so.

Further considerations on all of this are set forth as follows:

1. “Circuit courts” are geared to track the circuitry of the human body or the human mind, which determines, structures, and operates the circuitry through which the current (currency) flows.

2. A direct examination is examining the “conscious mind”, a cross-examination examines the “subconscious mind”.

3. Your subconscious mind is totally innocent of everything. It believes everything your conscious mind tells it. That is why people have to stay in "good standing" with their own consciences. What they are trying to get you to do is to alter the agreement between your "conscious" mind

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and your “subconscious" mind. When that happens, your immune system breaks down. You must be totally honest to keep your immune system together.

4. When we press them for this kind of testimony concerning their affairs they back away. We continue to the point that they must compromise their conscience when we bring the fact of the matter to them.

5. The “law” knows only two types of persons, “employees” and “employers” as identified by the “Tax Identification Number (S.I.N./S.S.N.).

6. The “employer” is the Preferred Stockholder, while the “employee” is the Common Stockholder, of the “Corporate Government” (bankrupt US Inc.).

7. The Preferred Stockholder has this position via the “Birth Certificate”.

8. The Preferred Stockholder holds both the “debit” and the “credit” side of the account.

9. A "traffic ticket”, for instance, represents "common stock”.

10. What the Judge is doing here is attempting to get you to agree with the operational assumptions, such as agreeing to be the collateral on whatever the charge is, i.e. Ticket, Non-Filing, etc., thereby stipulating that the charge is valid.

11. When you tender currency, which is the "public exchange”, you do not pay any debt. You cannot reduce a negative (public charge) with another negative (public money).

12. If you are faced with a fine involving a serious criminal charge, and you pay with "public money”, it is a bribe.

13. When you request that the court release the order to you, what you are asking them to give you the "common stock”. Release the stock ("order of the court") to me immediately.

14. The "order" represents the One World Order, for one thing. It is also a "money order”, or possibly a "work order”.

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15. Whoever has presented the “charge(s)” is the one with the “claim”, the one with the claim is the payee.

16. When you accept the account for value, they must bring the amount into existence from your private account, at which point they have a "tax obligation" on their hands.

17. When you accept the property for value, they are the payees because they are in possession. We are saying, "I accept that claim”, because they are holding a "lien" on the "claim”, and they have it in their possession, so they are the payees in fact. The payee in fact has to answer to the Internal Revenue for the funds.

18. Accepting a charging instrument for value means that you accept the claim. I accept the claim, and I am the taxpayer in fact, because I allow them to pass through "my account" to discharge the charges.

19. They have to release the order of the court to you. They have to release the "claim”, i.e., the money, the account. The account, however, is already prepaid, because you are the principle. They obtained the money from you in the first place, since where that is where all the currency in circulation today derives from. You already paid the claim, and you are asking them to release the claim that you have already paid.

20. So what you do is interrogate the witness. You ask the three magic questions and do not go beyond that.

21. When you are interrogating a judge you do not care what he says because anything he says can and will be used against him. He is testifying, not you! That is the essence of taking testimony because when you enter it into their courts the situation inverts. The Miranda warning says “anything you say can and will be used against you”. It does not say “might”.

The jurisdiction of courts today is international. All commerce occurs in international admiralty/maritime. That means that you and I, as the owners of the account, do not do any of the work. We are the sovereigns, so our employees (public officials) do the work. When there is a credit and a debit, we have two employees involved: one state and one federal. These employees handle the matching funds.

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Part V - Court Bond

Just recently, long after the writing of this article commenced, we were provided with the text of, and explanation about, a single-page document (on standard court-pleading format, so that it looks like a normal court brief) that has allegedly had dramatic success when used. The bond, i.e.,” Court Bond”, (revised by several people from the original version), plus the explanation we received concerning the instrument (essentially intact as we received it), accompany this article.

The Court Bond is not a pleading or motion needing determination from the court. It is not an argument, opinion, or point of law, nor is it a negotiation. It is just a bond! Who could object? The Court Bond is a special bond as described in Rule E of the Supplemental Admiralty Rules in the Federal Rules of Civil Procedure in 28 USC. Admiralty is the only place mentioned in the rules where bonds apply. A bond seems to be appropriate only on an admiralty proceeding. This includes bail bonds, general bonds, special bonds, etc. Anything that has bonding involved is admiralty or some degree of admiralty. Since all commerce is international, and international commerce exists in admiralty/maritime jurisdiction, and every legal matter is commercial, in any court case in which you are involved, always put in a bond.

Since the bond you file becomes a permanent part of the record, if anyone tries to remove the filed bond, you have a file-stamped copy that substantiates the filing.

Since the public side is a reflection in a mirror of content in the private side, if there is no private side/ledger, there can be no public side/ledger. Without any reality, a mirror has nothing to reflect. The books/ledgers must balance - public and private.

Filing the bond removes you from the controversy. You cannot be required to pay any claim for losses or costs because you have covered any and all of them by providing a bond backed by your exemption, which is unlimited. You have covered every outcome by your good-faith effort. A court exists to resolve disputes, which requires adverse parties. The bond removes you from the arena by ending the controversy and discharging any obligation there might be via the bond, whether or not there is any assessment in fact.

Strategically, it might be wise to file your bond at the last minute, just before going to court, to foreclose them from sufficient time to study it and brainstorm on how they can get around it. Use of a notary and autographed stamp renders dishonoring the bond considerably more difficult. So does sending a copy to the court administrator, mayor of the

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municipality, the municipality’ risk management department, and perhaps even the Army Corps of Engineers.

The judge is holding the original books, which is OK with us. Let him own the account and make the adjustments. Then he is responsible. Since the judge is not going to go to jail, if anyone has to take the fall for the charges it must be the attorneys.

All admiralty courts require posting a bond to initiate a cause of action. A case commences and is bonded when the prosecuting attorney files the complaint. The complaint is the bond, and is signed by the prosecuting attorneys. It is a firm offer, an original issue, offered to the clerk, who buys the contract. That is the original money, which is brought under the Bar Numbers of the fling attorneys (prosecutors). The clerk buys it because of the attorneys’ guarantee that they will produce someone to pay the fines and go to jail. The clerk takes the complaint to the court, which is the bank, and issues a voucher. The voucher is a security. The commercial bank credits the court’s account in the commercial bank and then monetizes the voucher by sending it to Freddie Mac or Fanny Mae, making the instrument an insured government security.

We believe that this process creates the public funds by the charges made against the strawman, for which the real being ends up paying as the surety if the presumption that the real you may be treated as, and is therefore liable for the obligation of, the strawman/Defendant, is not eliminated from the equation. We further think that these public funds are credited (possibly by going through the commercial bank’s TT&L account) to the customer’s (i.e., the court’s) account. In other words, when your strawman is charged as a Defendant in an action, it appears that what happens is that the public funds are created by using your exemption to create the public money that covers the check the commercial bank writes to deposit in the court’s account.

Let us say you, i.e., your strawman, are indicted. You go to court, you get an attorney, you go through a trial, and the jury finds your strawman guilty. At the sentencing hearing, the judge says openly, as if addressing no one in particular, “Will the defendant please rise.” The terms “Defendant”, and “the defendant” are different. Until sentencing, all attorneys, officials, judges, etc., have been engaged in prosecuting your all-caps name strawman/Defendant, not you. At sentencing, in order to procure enforcement of the judgment, you must provide the legal determination that the real you, and the fictitious you, are contractually united - married. Then you go along for the ride concerning anything the system wants to do to your strawman, such as fining, or imprisoning you, or both.

The term designated as "the defendant" is not identified in a case until either someone pleads guilty, or pays a fine, and goes to prison. In court

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paperwork the one accused, or indicted, is designated as “Defendant”. The real you is simply a being/body waiting to be placed into the slot of “the defendant”, who must pay with dollars and incarceration, time for the alleged crime, after the strawman/Defendant has been found guilty. Anyone who makes an appearance in the case (every attorney) could also fall into the category “the defendant” or “the plaintiff”, including any “Defendant” or “Plaintiff” named or identified. This dance is a dynamic scam that can change at any time during the proceedings, including long after you have been convicted, sentenced, and incarcerated.

Maxims of law that pertain to this includes:

Once a fraud, always a fraud. 13 Vin. Abr. 530.•

Things invalid from the beginning cannot be made valid by subsequent act.• Trayner, Max. 482.

A thing void in the beginning does not become valid by lapse of time. 1 S.• & R. 58.

Time cannot render valid an act void in its origin. Dig. 50, 17, 29, Broom,• Max. 178.

Because both the private and public set of books are involved, what gets sent to prison is an amalgamation: JOHN DOE SMITH/Body/John Doe Smith. The interesting thing is that at the time you go into prison, and your body is admitted, your all-caps name is placed on the ID tag. When you receive a discharge from the Department of Corrections the paperwork issued has your name in proper English, upper and lower case letters. Why? Speculation is that any time up to and including discharge you could be freed for some other reason than serving your time, such as on appeal, habeas corpus, the real criminal having been discovered, etc. In other words, the contract formed by the union/marriage of the strawman, private name, and body is not fulfilled until the terms and conditions of the bond filed by the attorney in the form of a complaint are fulfilled. The case was bonded “on the come” by the attorney’s guarantee (by staking his bar/bonding number) that a Defendant would pay the penalty in fines and/or incarceration to cover the bond, thereby getting the attorney off the hook.

To use the automobile situation as an example, when you purchase a new car, one of the documents in the “9-Pack” is one the dealership glosses over and does not elaborate on. Most people are so busy signing their name on all the paperwork, that they do not question everything anyway. What this document does is gift title of the automobile to the State (Department of Motor Vehicles), to whom the Manufacturer’s Certificate of Origin (MCO) is sent. The MCO is title, i.e., equitable (substance) title. You, as the user, have “legal title”, meaning they get

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the elevator (substance) and you get the shaft (legal liability). You receive a “pink slip” at the end of your payments, which is a “certificate of title”. A certificate of title is not title, it is simply a document stating that title exists somewhere.

So if the gendarmes give you a ticket, and impound your car, it is incarcerated until you have paid the ransom to get it out.

In the case of a conviction/prison situation, you (body/car) are impounded, sitting in jail under control of the jailer (user, your strawman) on the basis of a charge by a prosecutor (owner, i.e., State) having made a complaint (citation, bonded by his bar number). It matters not what the complaint is as it is all a smokescreen and misdirection to divert attention away from what is really going on. They have put your name on an account and are using your body during the time of their impounding your body (in accordance with the terms of the bond/complaint filed by the prosecuting attorneys). Suddenly, you ask them for the bond that was posted that allows them to do this. No reply! Hmmm!!!

It appears that the private books, dealing with body/John Doe Smith, are held privately in the office of the trial judge, which is where the commercial action of record happens. No one goes to jail or pays a fine in any case unless and until the private accounting books are in conformance with the public record. In other words, there is a credit/debit accounting cross on the private side and an equivalent (mirror image) of that cross on the public side. If you end and own the matter on the private side by using your exemption to discharge the obligation, the private books have been balanced, both asset and liability sides have been filled in, and discharge (and therefore termination of controversy) has occurred.

As a result of filing the Court Bond, your proper English name must be removed from their title. They can no longer use your private name because you have posted the Court Bond for record and paid for everything with your private exemption. This discharges the obligation (charge/imbalance) on the private side ends the controversy and fulfills the obligation on the private side, thereby ending the possibility for any public dispute resolution to occur. When there is nothing on the private books for the public side to mirror, and the private side establishes your ownership of the matter, the illusory public side is left hanging out to dry. By discharging the matter on the private side by use of your exemption, you not only end the dispute and become owner of the transaction, but owner of any court in which the matter may remain for resolution of the non-existent claim.

Consequences and ramifications of the foregoing include the following:

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1. By the private man posting a bond, through his private exemption, into the public record with the clerk, a separation has occurred between the version criminally charged (ALL CAPS) and the version they want to put on the books in the back office, which is upper- and lower-case (private) name. If the private version is not available then they cannot take the body because the account is no longer whole. You cannot put half a body in jail. They need your ALL-CAPS name in the public record, and your lower-case name on their private books held by the judge, in order to make the accounting whole and take your body. The bond made with your lower-case name and placed into the public record with the clerk splits the account into two disjoined halves. By losing one side of the account they lose both. They cannot admit “JOHN DOE SMITH/body” to jail if there is no longer any “body/John Doe Smith” to discharge at the end of the sentence.

2. Since the imbalance still remains on the un-discharged public side that must be discharged, the attorney no longer has a Defendant/body to fulfill the terms of the bond filed in the form of the original complaint. The result is that within seventy-two (72) hours they must either dismiss the case, find another Defendant/body to satisfy the pledge in the attorney’s on-the-come bond, or the attorney(s) who filed the complaint must be held liable.

The history of the use of this bond thus far appears to be that all incarcerated users were released. Not all of them, however, remained free. It seems that the ones who stayed out permanently were those who had filed documents (such as a UCC Financing Statement, Employer Identification - with jurat, if possible - and other documents that clarify that the real being and the strawman are two different things and that the real being is the “living principal” who autographs instruments and operates in capacity of being the authorized representative, attorney in fact, and secured party for the strawman. Those who did not put in any paperwork that states and declares this were re-incarcerated after a few weeks, since they never rebutted the rebuttable presumption (which is where the power is) that the real being is united and amalgamated with the strawman (presumed to be the property of the system), so that whatever the system wants to do with its property (the strawman) gets enforced on the real being.

Also of supreme importance is not giving one’s name in court when asked, and not saying “yes” in any form when the judge asks “Are you so-and-so?” to act as discussed herein-above.

Further, whenever possible have your documents notarized with the acknowledgment/jurat. Although the notary text is labeled “acknowledgment”, which is it, since the text contains the words “subscribed and sworn”, it is also a jurat. Notarial acknowledgment is mandatory admissibility in court, and a jurat is an oath, the strongest use

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of a notary, and is regarded as an apostille. The fact that the text contains the use of your name three (3) times, and that your name as set forth, i.e., [Name]©®TM[Birth Year], is intended as referring to the real you as living principal operating in the matter as the authorized representative and attorney in fact for your strawman, is express, witnessed notice of your standing. One should put several variations in the spelling of the strawman, i.e. “JOHN HENRY DOE”, the all-caps name of the Defendant, and “DOE, JOHN HENRY”. The latter is the military designation of the strawman’s name, and all legal/commercial matters today are military and function under military accounting (as per the military accounting manual, ER 37210).

Lastly, always (if at all possible) put a postage stamp (two-cent stamps in US are fine) on the lower right-hand corner on the back of every page in any document you file into court. Autograph (sign your full name in longhand) diagonally across the stamp in purple (royalty) or blue (source of the bond) ink. Also, if you have had your bullet stamp made, stamp it (gold ink) on the upper left hand part of the postage stamp in addition to inscribing your autograph by hand. This escalates the seriousness of your instrument by making you the postmaster of the transaction and placing the matter under the UPU, a jurisdiction in international law formed by treaty that is higher than, and untouchable by, the courts. It provides you with what might well be an insurmountable position vis-à-vis those in the system acting against you, notwithstanding any other considerations. By use of the postage stamps in this manner you are posting your document to them through the mail, making you an official mail carrier delivering your document. They cannot interfere or tamper with the mail or the carrier thereof (you)!!!

It is our understanding that the reason a court has seventy-two (72) hours to deal with the Court Bond from the time it is filed is the requirement to adjust the books on the international stock/bond exchange within that time frame. What has occurred in actual cases seems to confirm this, since people who filed the Court Bond have been brought into court the following morning, if not sooner. Their time frame within which they can act to take themselves off the hook is very short. See JAILS, PRISONS, BONDS - That article will follow this discussion.

Part VI - Postal Power

The UPU (Universal Postal Union) in Berne, Switzerland, is an extremely significant organization in today’s world. It is formulated by treaty. No nation can be recognized as a nation without being in international admiralty in order to have a forum common to all nations for engaging in

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commerce and resolving disputes. That is why the USA under the Articles of Confederation could not be recognized as a country. Every state (colony) was sovereign, with its own common law, which foreclosed other countries from interacting with the USA as a nation in international commerce. Today, international admiralty is the private jurisdiction of the IMF, et al., the creditor in the bankruptcy of essentially every government on Earth.

The UPU operates under the authority of treaties with every country in the world. It is, as it were, the overlord or overseer over the common interaction of all countries in international commerce. Every nation has a postal system, and also has reciprocal banking and commercial relationships, whereby all are within and under the UPU. The UPU is the number one military (international admiralty is also military) contract mover on the planet.

For this reason one should send all-important legal and commercial documents through the post office rather than private carriers, which are firewalls. We want direct access to the authority—and corresponding availability of remedy and recourse—of the UPU. For instance, if you post through the US Post Office and the US Postmaster does not provide you with the remedy you request within twenty-one (21) days, you can take the matter to the UPU.

Involving the authority of the UPU is automatically invoked by the use of postage stamps. Utilization of stamps includes putting stamps on any documents (for clout purposes, not mailing) we wish to introduce into the system. As long as you use a stamp (of any kind) you are in the game. If you have time, resources, and the luxury of dealing with something well before expiration of a given time frame, you can use stamps that you consider ideal. The most preferable stamps are ones that are both large and contain the most colors. In an emergency situation, or simply if economy is a consideration, any stamp will do. Using a postage stamp and autograph on it makes you the postmaster for that contract.

Whenever you put a stamp on a document, inscribe your full name over the stamp at an angle. The color ink you use for this is a function of what color will show up best against the colors in the stamp. Ideal colors for doing this are purple (royalty), blue (origin of the bond), and gold (king’s

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edict). Avoid red at all cost. Obviously, if you have a dark, multi-colored stamp you do not want to use purple or blue ink, since your autograph on it would not stand out as well if you used lighter color ink. Ideally one could decide on the best color for his autograph and then obtain stamps that best suit one’s criteria and taste. Although a dollar stamp is best, it is a luxury unless one is well off financially. Otherwise, reserve the use of dollar stamps for crucial instruments, such as travel documents. The rationale for using two-cent stamps is that in the 19th Century the official postage rate for the de jure Post Office of the United States of America was fixed at two (2) cents. For stamps to carry on one’s person for any kind of unexpected encounter or emergency use, this denomination might be ideal.

Use stamps on important documents, such as a check, travel documents, paperwork you put in court, etc. Where to put the stamp and how many stamps to use depend on the document. On foundational documents and checks, for instance, put a stamp on the right hand corner of the instrument, both on the front and on the back. The bottom right hand corner of the face of a check, note, or bill of exchange signifies the liability. Furthermore, the bottom right hand corner of the reverse of the document is the final position on the page, so no one can endorse anything (using a restricted endorsement or otherwise) after that. You want to have the last word. If you have only one stamp, put it where you are expected to sign and autograph over it cross-wise. In the case of a traffic ticket, for instance, put a stamp on the lower right hand corner where you are supposed to sign and autograph across the stamp at an angle.

Autographing a stamp not only establishes you as the postmaster of the contract but constitutes a cross-claim. Using the stamp process on documents presents your adversaries with a problem because their jurisdiction is subordinate to that of the UPU, which you have now invoked for your benefit. The result in practice of doing this is that whenever those who know what you are doing are recipients of your documents with autographed stamps they back off. If they do not, take the matter to the US Postmaster to deal with. If he will not provide you with your remedy, take the matter to the UPU for them to clean up.

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The countries whose stamps would be most effective to use are China, Japan, United States, and Great Britain. Utilizing these countries covers both East and West. However, since the US seems to be the point man in implementing the New World Order, one might most advisably use US stamps.

If you put stamps on documents you submit into court, put a stamp on the back of each page, at the bottom right hand corner. Do not place any stamps on the front of court paperwork since doing so alarms the clerk. By placing your autographed stamp on the reverse right hand corner, you prevent being damaged by one of the tricks of judges these days. A judge might have your paperwork on his bench, but turned over, so only the backside, which is ordinarily blank on every page, is visible. Then if you ask about your paperwork he might say something like, “Yes, I have your paperwork in front of me, but I don’t find anything”. He cannot see anything on the blank side of a page. If you place an autographed stamp on the lower right hand corner, you foreclose a judge from engaging in this trick.

In addition, when it comes to court documents, one side is criminal and the other is civil. Using the autographed stamp that you rubber-stamp with your seal (bullet stamp) on the backside of your court documents is evidence that you possess the cancelled obligation on the civil side. Since there can be no assessment for criminal charges, and you show that you are the holder of the civil assessment, there is no way out for the court.

In addition, in any court document you put in, handwrite your EIN number [SS# without the dashes] in gold on the top right corner of every page, with the autographed stamp on the backside.

Use of a notary combined with the postage stamp (and sometime Embassy stamps) gives you a priority mechanism. Everything is commerce, and all commerce is contract. The master of the contract is the post office, and the UPU is the supreme overlord of the commerce, banking, and postal systems of the world. Use of these stamps in this manner gets the attention of those in the system to whom you provide your paperwork. It makes you the master of that post office. Use of the stamp is especially important when dealing with the major players, such as the FBI, CIA, Secret Service, Treasury, etc. They understand the

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significance of what you are doing. Many times they hand documents back to someone using this approach and say, “Have a good day, sir”. They do not want any untoward repercussions coming back on them.

If anyone asks you why you are doing what you are doing, suggest that they consult their legal counsel for the significance. It is not your job to explain the law, nor explain such things as your exemption or Setoff Account. The system hangs us by our own words. We have to give them the evidence, information, contacts, and legal determinations they require to convict us. The wise words of Calvin Coolidge, the most taciturn president in US history, are apt. When asked why he spoke so little, he replied, “I have never been hurt by anything I didn’t say.”

The bottom line is that whenever you need to sign any legal/commercial document, put a stamp (even a one (1) cent stamp) over where you sign and sign at an angle across it. Let the recipient deal with the significance and consequences of your actions. If you are in a court case, or at any stage of a proceeding (such as an indictment, summons, complaint, or any other hostile encounter with the system), immediately do the following:

1. Make a color copy of whatever documents you receive, or scan them in color into your computer,

2. Stamp the original of the first page of every document with the ARFV stamp, put a postage stamp in the signature space, and autograph across it at an angle with your full name, using purple or blue ink, handwritten with upper- and lower-case, with your gold-ink bullet stamp (seal) on the upper left-hand portion of the postage stamp,

Make a color copy of the stamped, autographed pages and/or scan into your computer,

3. Put a stamp on the lower right-hand-corner of the back of every page and bullet-stamp and autograph it,

4. Have a notary send each document back to the sender, with a notarial certificate of service, with or without an accompanying/supporting affidavit by you,

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5. If you have an affidavit, put an autographed stamp on the upper right hand corner of the first page and the lower right hand corner of the back of every page.

People who have engaged in this process report that when any knowledgeable judge, attorney, or official sees this, matters change dramatically. All of these personages know what mail fraud is. Since autographing the stamp makes you the postmaster of the contract, anyone who interferes is tampering with the mail and engaging in mail fraud. You can then subpoena the postmaster (either of the post office from which the letter was mailed, or the US Postmaster General, or both), and have them explain what the rules are, under deposition or testimony on the witness stand in open court.

Additionally, most of the time when you get official communication it has a red-meter postage mark on the envelope rather than a cancelled stamp. This act is mail fraud. If the envelope has a red-meter postage mark on it, they are the ones who have engaged in mail fraud, because there is no cancelled stamp. It is the cancelled stamp that has the power, an un-cancelled stamp has nothing. A red-meter postage mark is an un-cancelled stamp. If it is not cancelled, it is not paid. One researcher has scanned everything into his computer, and has more red-meter postage marks than he “can shake a stick at.” Officials sending things out by cancelled stamp is a rarity—perhaps at most 2%.

With the red-metered postage you can trace each communication back to the PO from which it was sent, so you can get the postmaster for that PO, as well as the postmaster general for the US, to investigate the mail fraud involved. It is reasonable to conclude that canceling a stamp both registers the matter and forms a contract between the party that cancels the stamp and the UPU. Using a stamp for postage without canceling it is prima facie evidence that the postmaster of the local PO is committing mail fraud by taking a customer’s money and not providing the paid-for service and providing you with the power of a cancelled stamp, as required under the provisions of the UPU. When you place an autographed stamp on a document you place that document and the contract underlying it under international law and treaty, with which the courts have no jurisdiction to deal. The system cannot deal with the real you, the living principle (as evidenced and witnessed by jurat). Nor can

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officials, attorneys, judges, et al., go against the UPU, international law, and treaty. In addition, they have no authority/jurisdiction to impair a contract between you (as the living principal) and the UPU (overseer of all world commerce).

You cancelled the stamp by sealing it and autographing across it. You did so in capacity of being the living principal, as acknowledged by your seal and the jurat on your documents.

If you are in a court case, bring in your red-metered envelopes in court and request the judge to direct the prosecutor to explain the red-meter postage stamp. Then watch their jaws drop. Doing this is especially potent if you also have asked the prosecutor to provide his bar number, since most attorneys in court—especially in US—are not qualified. An attorney in federal court had better have a six-digit bar card or he committed a felony just by walking in and giving his name.

Lastly, if you are charged with mail fraud, subpoena the prosecutor(s) to bring in the evidence on which mail fraud is being alleged, as well as the originals of all envelopes used for mailing any item connected with the case. Then the mail fraud involved was committed by the postmaster of the PO in which the envelope was stamped.

Part VII - Esoteric knowledge As is common knowledge, the “world system”, i.e., the system by which the world is governed, is the product of millennia of development and use. This system functions on the basis of an integrated utilization of four (4) of the major cons that have successfully exploited humanity throughout history. These four (4) major cons are: 1. The science/technology con, whereby a scientific priesthood attains power and essentially a monopolistic position to dictate what the laws of physics, chemistry, etc., are. Some of the consequences of this phenomenon include, foreclosing exploration of deeper, more powerful, and more universal knowledge, as well as alternative “outside-the-box” ways of looking at things, and, most importantly, fostering external dependency at the expense of people’s realizing their own true nature and actualizing its potential. One who is awake and empowered cannot be

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exploited. The esoteric heart of the con is that all of the technological development and manipulation that occurs in the realm of science, including the design, engineering, and manufacture of all industrial products involving scientific knowledge (essentially everything produced today), are accomplished by projecting into the outer world things that we, as spiritual beings, are inwardly capable of knowing, being, and doing in, by, and through ourselves. Examples of this are various yogis and masters who possess such “supernatural,” or at least extraordinary, powers (“siddhis,” in Sanskrit) as invisibility, transporting one’s body anywhere instantly at the speed of thought, being multiple places at the same time, etc. 2. The religious con, in which the doctrine and dogma of some religion are promulgated as truth (perhaps the best, or at least most important, truth), and if you want to get to God you must go through that religion’s priesthood and live your life in accordance with the teachings of the religion. Fostering fear, such as by invoking “hell” and the “devil”, is often a part of the control mechanism utilized. 3. The law/government con, consisting of instilling as deeply, securely, pervasively, and unquestioningly as possible the belief that man must have governments, i.e., that some people must be governed by other people. It could be considered a remarkable phenomenon that people who are otherwise incredibly intelligent and discerning never think about questioning this premise, living their lives without ever addressing such a seminal idea. As Socrates purportedly said, “The unexamined life is not worth living.” Ideas govern man’s life, whether or not those ideas are consciously held, and, in the words of Spinoza, “Nature abhors a vacuum.” Something will control one’s life. If one does not analyze the ideas that govern his thinking and acting, his life will be controlled by random ideas and ideas deliberately instilled in him by others.

The operational consequences of this con are that the overwhelming percentage of humanity implicitly and unthinkingly believes, as if it were an unshakeable aspect of existence itself, that man must have human governments. One may openly question and analyze what kind of government might be best, but if one questions the implicit premise of the necessity and propriety of the existence of government in the first

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place, all hell breaks loose. Such a doubter is instantly ridiculed and derided (powerful weapons), and labeled (another powerful weapon) as an “anarchist,” or “anti-social,” or “a rebel,” or other such opprobrium, as if that resolved the matter and eliminated the need to evaluate the ideas of someone espousing so radical (meaning “of or from the roots”) a concept.

This unshakeable and unassailable premise of the necessity of governments is immediately rendered questionable by pondering a few elementary considerations: “What does ‘governing’ mean?” “Does man, with the sublime attribute of free will, exist to be ruled by other men?” “If so, which men are supposed to rule what other men? i.e., Who should govern whom?” “Am I to govern you or are you to govern me?” “Who decides who governs whom?” “What source of authority authorizes structuring society on the premise that some men must rule others?” “Who is to be entitled to act in what manner to dominate what areas of what other people’s lives?” “What are the mechanics that should be used for governing?” Etc., etc., etc.

The problem with governments, when thought about clearly and with an open mind, is that the institution itself is hopelessly, irredeemably, and fatally flawed and cannot be rendered sound and legitimate by any variations in the institution whatsoever. These flaws are: 1) Absence of valid ethical authority for one free-will being to dominate the life of another free-will being, whom he did not create, cannot fathom, does not own, and who is innately possessed of the inherent right/responsibility to live his own life, 2) Absence of adequate knowledge, i.e., no one is omniscient, and everyone has his hands full in ascertaining how best to live and fulfill his own life without meddling in the lives of others—especially masses of people—whom he cannot comprehend, and has neither the right, nor the ability, to try to impose such knowledge even if he knew it, 3) No effective mechanics, since the only operational tool of power available to governments is endless applications of deadly physical force, i.e., legalized violence, which needless to say does not enlighten and uplift people, transform their inner natures so that the deficiencies that created the alleged problems (who defines anything as a “problem,” and why?) simply are not there, or even bring about existential rectitude (true justice).

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As a result of this fundamental premise being rendered operational by those who would rule others, the history of man on this planet is the monotonously endless replay of the same dreary earth dramas: civilizations form, grow and expand, reach a zenith, and then decline, disintegrate, and disappear—either suddenly and violently or gradually. As Lao-tzu observed concerning this foregone inevitability, “Most people who miss after almost winning should have known the end from the beginning”.

4. The last, and in many ways the most important, con is the money (paper-money banking swindle) con, consisting of exchanging symbols of wealth (e.g., pieces of paper that cost the issuer nothing) for real wealth (i.e., people’s labor, property, freedom, and rights, which cost the people their life force and freedom to fulfill their destinies). When one has achieved a monopoly on the implementation of this con (as exists today), one is essentially at the pinnacle of the attainment of the objective of all cons, since mastery of this con enables purchasing all the other cons.

The knowledge of these cons and how to effectuate them has been transmitted through the ages through various “secret societies,” i.e., groups of people who not only learn the knowledge and feel justified in using it for their own advantage vis-à-vis the “masses,” but function in a manner that seeks to foreclose the general populace from knowing and implementing the knowledge.

Today, in accordance with the inherent operational nature of life that “Truth will out”, more and more esoteric knowledge and the use thereof is being revealed. One reason for this is that “mankind will not be reasoned out of the feelings of humanity”, and one of the profoundest feelings of humanity is for freedom and knowledge of the truth.

The main reason for this mini-discourse on the four (4) cons is that those who have structured, transmitted, and continue to perpetrate the cons for their own self-aggrandizement vis-à-vis others have sought to anchor their system in aspects of understandings of existence that they consider the most profound, accurate, and powerful possible. The result is that law and commerce function in accordance with esoteric knowledge that has been sought and pondered by innumerable people throughout history, such as Confucius, Pythagoras, Euclid, da Vinci, etc., and has been

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implemented by countless other people in power over extended periods of time. The result is that law and commerce are structured to function on a number of universal things that most people do not know anything about. Chief among these is how to create and sustain power and magic through use of language, symbols, colors, and codes.

Based on the foregoing, findings of a number of intelligent and tenacious researchers are now emerging. Such knowledge includes ever-increasing understanding of the significance and use of numerology, the colors used for the paper that are intended as being sent where and accomplishing what results, the substances of which the paper is made, the colors used in printing particular texts, the dimensions of the paper, etc.

In order to achieve the successful results we all desire when dealing with/in the system we must actualize this deeper knowledge, which is not only vast and extensive, but only partially known because finding and understanding it is an on-going process. By way of providing examples of the applied esoteric knowledge of which we speak we cite the following:

1. The color of the paper used in particular documents, or duplicates of documents, is a function of where the documents are to be sent and what they are supposed to accomplish. These colors are white, blue, yellow, goldenrod, pink, green, and violet.

2. A different weight of paper (20 lb., 40 lb., etc.) is appropriate for different documents.

3. The content of the paper is important, such as whether the paper should be made of cotton, linen, hemp, a mixture of linen and hemp, and whether the paper should have such things as threads of gold and silver interwoven into it.

4. The dimensions of the paper are also important, i.e., whether one should use 8½ X 11 or 8½ X 14.

5. It is also useful to have an imprint of one’s footprint on the paper used for some documents, preferably watermarked (and of course reduced in size). A footprint (more than fingerprints) constitutes supreme forensic evidence of one’s identity as a living, biological being. Having it on the paper not only identifies you in such capacity, but symbolically informs

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the recipients of your documents that you are standing on the ground (even holy ground) and are not “up in the air” where the public, fictitious side operates.

The merits of much of the above can be substantiated by observing documents involved in commerce, such as shipping. In the case of legal documents (which are also in commerce), such as a traffic ticket, the original is white, your copy is blue, the pink copy (ownership) goes to the court, the green (constituting the money) goes to the administration of the court.

As of the time of this writing we are receiving immense amounts of material elaborating on, confirming, and exemplifying the use of this esoteric knowledge, to which we have merely alluded here. Obviously any extensive discourse on the subject is beyond the scope of this article, which is intended as outlining fundamental concepts and processes. As a result of exposure to this deeper understanding of how the system is structured and why it was formulated as it is, we are drafting our documents as fully in accord with the information as possible.

Finally, a practical consideration perpetually concerns anyone dealing with the system. Given the obvious facts that we can never know everything that we are perpetually growing in knowledge experience, and understanding, and that we want to do what succeeds, how can we know at what point to act? The answer is often determined by the seriousness of a matter and the time frames involved in having to deal with it. This conundrum is a major incentive not only for studying for and by oneself, but networking with as many others as possible who are likewise engaged in ascertaining truth and securing freedom on the basis thereof. The knowledge resulting from synergistic interaction, and the feedback gained from learning the result the actions of people when attempting to succeed vis-à-vis the system, are incomparable. One thing is certain: remaining ignorant and doing nothing ensures losing from the outset. In the words of Bob Dylan, “He who is not busy being born is busy dying.”

JAILS, PRISONS, BONDS Research explaining how living souls are made prisoners for the making of Billions of Dollars for the slave making Governments and their Banking henchmen through incarcerations.

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I do not know for sure who wrote this, but it looks to be right on the money in most cases. (This is not the Author’s comment.)

Gxxx is investigating more into the criminal jail/prosecution aspects. The results are incredible. His strawman is currently on probation from activities that were the result of Cxxxx prosecution of 17 to 18 people who were attempting to help patriots to buy Cadillacs. He was put in jail for a year, then a half way house. He has been researching admiralty. When he was ready to leave the half way house, he was caught on the computer creating a bill of exchange, and the guards and matrons thought it was criminal activity, so they jerked him back into jail for violating his probation for putting a blank bill of exchange. Jxxx had advised him that he had to quit fighting these people, or he would be in dishonor under admiralty, and he had to keep raising questions, rather than fighting and denying the charges. He was only in jail about 4 or 5 days, and when they tried to interrogate him, to get him ready for his hearing, where the judge would eventually put him back into prison. He started using the correct tactic of accepting and asking questions. He got the prosecutor (assistant) to throw up her hands and scream, he was too smart for her, just get out. He has been in a half way house since May.

The last time he had a probation hearing with his officer in Cxxxx, he had gone to the meeting personally. Before he went, he had written a letter to her, the judge, the prosecutor, and others, and said that he requested that they deliver to him the bonds from CUSIP (Committee on uniform securities identification procedures (CUSIP) - the committee that assigns the numbers to securities for identification, usually bonds. ......... Glossary: CUSIP. Committee on Uniform Securities Identification Procedures (CUSIP) - the committee that assigns ….......... (www.speculativebubble.com/terms/cusip.shtml), which were being used to underwrite his time in prison, and his time on probation. He wanted them to deliver the bonds being held by CUSIP and other government agencies, so he could accept them for settlement and closure. When he went to his probation officer meeting, he was disappointed because his probation officer was not there to meet with him. He filled out a form and left. It seems that no one wants to talk with him, or meet with him, now that he has asked for the CUSIP bonds, so he can settle and close the bonds.

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CUSIP is an acronym. Gxxx is telling us that all criminal prosecution is for the purpose for raising revenue for the United States of America, and he will tell us who that is. Now you'll have a better understanding of why people are in jail, why they are in prison, why they are on probation and why they are charged with everything from jaywalking on up through murder one. Jack further heard from others researching, and Gxxx is also saying that every American soldier who dies in Afghanistan and Iraq probably carries a $10 million life insurance on him carried by our government. After all, every soldier, marine, or air force person is an asset to the United States of America. They have a huge investment in that particular soldier and his activity and it can explain why it is that the US is not so anxious to withdraw its troops from that area. It is a moneymaking activity and they do not want to talk about the fact that they are making money on death and that they are making money the incarceration and imprisonment on otherwise good-hearted people.

Gxxx: The key to finding out what you want on the Internet knows how to put it into the computer. If you put the right information in there, you get the right answer. He has been finding out who the investor is the 144 holders. They have a rule called the 144 holder. The rule is that they cannot sell private investment securities that are not registered. The rule prohibits them from selling the prison bonds. They have to wait 6 months before they can sell a certain quantity of private securities without being registered, selling them as private securities. Basically, there are 8 people on the board of directors of CCA (Corrections Corporation of America (http://www.correctionscorp.com/) - Joseph E. Russell, the top holder, and John M Ferguson. Russell owns 64,000 shares of CCA stock, which is worth about $70 million. Ferguson owns 34,000 shares valued at about $37 million.

Fidelity Management and Research is the top stockholder, the top investment firm that is selling the bonds as investment securities. They pool them and sell them as mortgage backed securities. They also when they pool them, they sell them as mutual funds on the stock market. By pooling, you mean the securities on the inmates. What they are doing is they are actually taking the mortgage-backed securities, which are really bid bonds, performance bonds and payment bonds. They pool these bonds and when they pool them together, they call them mortgage-

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backed securities. They take these to TBA, which is the Bond Market Association. It is an actual market for bonds. Anytime a bond is issued there has to be an underwriter. The bonds have to be underwritten. Bonds that are issued have to be indemnified so there has to be surety to indemnify the bonds. The brokerage houses and the insurance companies indemnify the bonds. They are called surety companies.

After the surety companies indemnify the bonds, which are underwriting them, they do this through an investment banker or the banks themselves do this. They job it out to them. They buy up all these shares, and then turn around and sell them as investment securities. The shares represent the stock, which represents the account of CCA. All of this has been funneled through CCA, the Corrections Corporation of America. What they are doing is selling stock in the prison system by selling the prisoners' accounts as securities through the securities exchange. They are making huge amounts of money off it. They privatize the prisoners' accounts and bring all these investors in and what they are doing is underwriting all these prisoner's accounts (bonds). This is after the surety company guarantees the bonds. Then they are underwritten through an investment bank or banker. Then they are put out on the market and resold to the public. In other words, the banks are buying up all the shares and then they resell them as investment securities to the public. The public then buys them as mutual funds or they can buy them as debt instruments, equity instruments.

What they are really doing is they are buying up debt instrument. They are using the fiscal accounting cycle of accrual and they sell the prisoner's 'capital and interest' as it is called in accrual accounting. They resell these to the public because the prisoner did not do full settlement and closure on the account. They sell the prisoner accounts as a commercial dishonor and sell it to the public as a commercial dishonor.

When you go in the courts, they always say they are operating under a statute jurisdiction. The Black's Law Dictionary 4th edition says a statute is a bond or obligation of record. That is what all the criminal statutes are...bonds or obligation of record. Go in and read the definition of a recognizance bond and you find that it is a bond or obligation of record. They are selling bonds. They are charging prisoners under a bond, the prisoner signs the bond and the bond becomes the agreement for the

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payback. This is done when the prisoner signs the final court papers at a sentencing hearing.

Jxxx: how many of us remember when our government attempted to finance, from the private sector, the Second World War. Weren't they selling war bonds? They were soaking up the people's equity, in terms of buying bonds, transferring your funds to the government. The government by purchasing those bonds was promising to pay you back your investment at sometime in the future with interest. At that time, what they were collecting from the people was their so-called cash equity. What Gene saying now is that people have gotten too poor, too stingy, and too smart to buy bonds to finance the government? How long has it been since you heard the Post Office or anyone trying to get you down to buy US savings bonds?

So what they are doing now instead of getting us to voluntarily give our cash equity to the government for a promise to be paid back in the future, they are securing from us some violation of a statute by which the law ascribes from us a penalty, i.e., the payment of a sum of money due. Instead of collecting the cash from us, they put us through a criminal procedure where we dishonor the system and what Gene said is what is happening is they are selling our capital and our interest. In other words, they are selling the liability you had in whatever charge has been brought against your straw man. They are taking that capital and interest that you should pay and are grabbing that from us and selling it on the open market to bankers and investors to transfer their funds to government, which is covered by the bond of the violation of your straw man of that statute. In order to secure the bond the living soul is placed in prison as the surety to back the bond, which is financed, on the investment of the public market place in terms of the sales of stocks and bonds.

The public does not directly bid on my (the prisoner's) debt. Your debt is assumed by the bankers. The bankers issue secondary paper that allows me to invest in what they are holding as the holder in due course of the claim against your straw man. The reason that they are doing this is because you dishonored the post settlement procedures for settlement and closure of the account. The prisoner should have come in, accepted, and used his exemption. Since the prisoner dishonored the post settlement proceedings, then the prisoner is in dishonor and the issuance

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of the bonds by the financing system was done in order to pass the punishment on to him because of his inability to fulfill his post settlement objectives.

If you get into to dishonor by non-acceptance, what they are trying to do is get an acceptor, which is the same thing as a banker. They need someone to pay off the obligation and if you get into dishonor, they sell your dishonor and put you into prison as the collateral and they sell the bond. The bond is issued and they get a surety to underwrite the bid bond with a performance bond and then they get an underwriter to underwrite the performance and payment bonds. What the performance bond does is it guarantees the bid contract, or the bid bond. What the bid bond does is guarantee the payment of the performance bond. This is done through a surety company. Then they get an underwriter or an investment banker to underwrite it. After it is underwritten, they sell it to the public as investment securities, debt instruments, or mutual backed securities.

It is all done through bonds...bonding. That is what all these municipal bonds are. What they doing is following everything through the prison system. The prison system is being privatized. Through privatization, private enterprise can fund the prison system cheaper than the government can. They are subsidizing everything through privatization.

ALEC does this, the American Legislative Exchange Council, promotes privatization through foundations like the Reason Foundation owned by David Knott. They get the foundations to promote this and get investors to come in. Cornell was merged with Trinity Venture Company, which is an investment company. What they did was changing their name to Reid Trinity Venture and then merged with SB Warburg. (Warburg was out of Germany or France and collaborated with Rothschild). SB Warburg is in Chicago, Illinois, and they merged with BIF in Switzerland, which is a settlement and closure bank, and the biggest bank in the world for settlements. They are connected to Cornell Company, which is owned by David Cornell.

Everyone is tied in. Paine Webber Group is the United States of America and all the big international corporations are the stockholders and own all the stock in CCA. Everyone is using our exemptions on the private side.

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They filed a 1096 tax return and show it as a prepaid account, as prepaid interest and they returned it back to the prisoner. They took the prisoners deduction for the exemption, they deduct the tax, and the IRS bills the prisoner for the tax. Therefore, the corporations are stealing your exemption, which is your intellectual property. What is wrong with this? They are not telling us what they are doing. It is all commercial. When you go into the courtroom, everything is commercial. Vxxxxx in her seminar says the facts do not matter, the facts are on the moon. What matters is honor and dishonor. The courts have to dishonor the potential prisoner or get that 'person' to argue or get that 'person's' attorney to argue. Just like Martha Stewart. Argue and you are in dishonor and you will end up in jail.

The attorneys are actors to make us think the whole process is a factual issue. They get us into the guilty/not-guilty mode, and they get into all the cloak and dagger or what evidence to present. It is a dog and pony show, to cover up that they are after the debt money. All corporations work on a fiscal accounting year, which means that they spend debt. They cannot get rid of the debt, and balance the books, unless they run it through our accounts on the private side. We the people run on a calendar year and the corporations run on the fiscal year. They can only balance their books, by running it through our accounts, using our exemptions. Then they can do their reverse bookkeeping entry, and go to post settlement and closure. They cannot do that, until the prisoners do the acceptance (if they do it). That is what they are looking for in the courtroom, under UCC 3-410, is the acceptor.

That means, we are assuming the liability for the debt, as the principal. Many times with debt, the principal is always the primary libellant in the commercial setting. He has to assume the liability and then you get your remedy. Otherwise, you do not get a remedy. They sell your account to some corporation, while you are sitting in prison.

How many times has government ever had a case against anyone? The attorneys have to attempt to get you to go right into argument, and trial, and go into dishonor. Axxxx was given documents from Redwood Trust on a mortgage foreclosure. She did a conditional acceptance and she did a heck of a job. She stopped them cold and they took the property off the market. At the end, she said if they did not answer her within 14

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days she was going to resort to notorial protest, and get remedy for dishonor. She went into the fact, that their charter does not allow them to loan credit, she wanted to know the name of the company who was the source of the credit, she wanted the name of the account number, she wanted certified copies of the front and back of the promissory note. She was trying to get them to divulge, that it was her secured party creditor, which was the source of everything they were doing. She was forcing them to admit, that it was her promissory note that was the basis of the credit instrument that they loaned, and that they had already sold the note to someone else, and they did not have it in their possession. What they do is they sell the notes, just as they do when you go into prison. They endorse the note, and they no longer are the holder of the note. The mortgage company was not involved in this process, the attorneys are doing all this. What they are doing is coming to the private side, to get the debt without any permission from the mortgage company. In this case, they quoted from the UCC, and it is from Lex Mercatoria, the Law of the Merchant.

If you read John Hall's book, it talks about letter Rogatory, indictments where you are indicted, and brought into the court under a warrant. What the warrant is a demand for payment of debt. What they did under admiralty in the courtroom is they are demanding payment. You sign a bond to be released until the civil complaint is prosecuted, and then they release you under the bond, until civil bond is prosecuted. If you did not pay the debt, they put you in prison until the debt is paid. They use the same terms in this practice book from 1700. This is an actual practice book. It was written by Courts Practice, who worked in the Court of Arches for the Crown as a registrant. This is a private book, not meant for public viewing. It laws out the whole practice of admiralty during the American Revolution.

Hall translated this and put it in district court in Maryland in 1809. This was written in 1692. It is an actual practice. Benedict is not a practice, it gives information about what admiralty is. Admiralty is all debt, and it is all civil, it becomes criminal, when the prisoner gets a contempt charge, when he refuses to pay. They can keep you in jail, until you pay the debt. The initial get out of jail bond, releases you until you have successfully paid the debt. This book goes into the history and practice of admiralty.

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It tells how to set the bond, and do court room procedure. The laws have not changed, the circumstances of the government have changed, so admiralty can be applied instead of constitutional law. Warden comes from admiralty-warden of the sea. The warden is the warehouse man, who is warehousing all the goods, he is the bailee. The commitment order is your bailment, your contract for the commitment of the goods. Then they put the goods in a warehouse and store them there (prisoners stored in prisons, just as the people stored in the pods in the movie, The Matrix).

§ 3-410. ACCEPTANCE VARYING DRAFT.

(a) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance.

(b) The terms of a draft are not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.

(c) If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and endorser that does not expressly assent to the acceptance is discharged.

(1) "Acceptor" means a drawee who has accepted a draft.

(2) "Drawee" means a person ordered in a draft to make payment.

(3) "Drawer" means a person who signs or is identified in a draft as a person ordering payment.

(4) [reserved]

(5) "Maker" means a person who signs or is identified in a note as a person undertaking to pay.

(a) "Acceptance" means the drawee's signed agreement to pay a draft as presented. It must be written on the draft and may consist of the drawee's signature alone. Acceptance may be made at any time and

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becomes effective when notification pursuant to instructions is given or the accepted draft is delivered for the purpose of giving rights on the acceptance to any person.

(b) A draft may be accepted although it has not been signed by the drawer, is otherwise incomplete, is overdue, or has been dishonored.

(c) If a draft is payable at a fixed period after sight and the acceptor fails to date the acceptance, the holder may complete the acceptance by supplying a date in good faith.

(a) Except as provided in subsections (c) and (d), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it:

(1) is payable to bearer or to order at the time it is issued or first comes into possession of a holder,

(2) is payable on demand or at a definite time, and

(3) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain (i) an undertaking or power to give, maintain, or protect collateral to secure payment, (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor. (b) "Instrument" means a negotiable instrument. (c) An order that meets all of the requirements of subsection (a), except paragraph (1), and otherwise falls within the definition of "check" in subsection (f) is a negotiable instrument and a check. (d) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article.

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(e) An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft”, a person entitled to enforce the instrument may treat it as either. The source of the foregoing information on “PRESENTMENTS” and “JAILS, PRISONS, BONDS” can be found on the Web Site located at:

http://freedom-school.com/law/Presentments-I.htm

Other Web Sites - http://www.real-debt-elimination.com/index.htm

http://www.real-debt-elimination.com/debt-elimination-tools/introduction_to_administrative_remedy.htm

The Authors of the foregoing information are unknown to us. Once again, this information is only the authors’ points of view (and, not the Author of this Book, well, at least, not yet). This information is not to be construed as professional legal advice, in any manner. However, as a side note, may I add, to the best that I can tell, from my own independent research, is that every Federal Reserve Note, also known as [a.k.a.] USD ($) presently, and ever USD Denominated Instrument, whether you are buying or selling, paying or being paid, makes no difference, and every USA Citizen, whether born in the USA, or a territory thereof, or a legally naturalized Citizen, are under Admiralty, in some form, or another. Be that true, or not, is not completely clear to me yet, but, I can say that this would be an excellent subject for a book, surely.

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~ Winning is nice

if you don't lose your integrity in the process. ~

-- Arnold Horshak --

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THE CONCLUSION

Well, if you do not have enough information by now, to get you started in being able to play the PPP Game correctly, I give up. Always remember that this is not your game, it is not of you making, but you do have to play by their rules, which they keep changing, so stay up with them. Furthermore, be aware, that they do not have to play by their own rules, but you do. They do what they please / what suites themselves. (The “they”, being the Powers-that-Be, for the lack of a better term, which is not a subject matter that I will ever be writing any book about.) The one aspect that we did not cover well is: Project Funding Project Funding is achievable by means of “Capital Accumulation / Capital Enhancement Programs, in the form of Deposit-Loan, or Forfaiting, transactions (PPP)”, which is discussed on page 120 of this Book. However, Programs that are funded by these means “must be” of a humanitarian nature, which has a broad definition attributed to that term under the United Nations’ defilement, which includes, any project that provides “employment”, and what project does not do that? Thusly, there is the answer to being able to achieve your Project Funding. In summation, I will leave you with two quotes that have served me well, down the years. “If it is not written, it is not true.” - This also applies to your heart' desires. “More than half the solution to any problem, is in being able to discover, what the real problem is.” The real problem is never evident / what it appears to be in the beginning of your quest for a solution, ever.

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~ If you don't invest very much,

then defeat doesn't hurt very much and winning isn't very exciting. ~

-- Dick Vermeil --

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SPECIAL REQUEST / EXCHANGE FACTOR

One of the first questions, that any logical person is going to ask themselves, when they see that the Author is giving, the first edition of this book, out, free-of-charge, is going to be, “WHY ARE THEY DOING THIS ???” And, the next question that will surely come to mind, is going to be, if the information, contained here, is so good, and useful, now, then, “WHY ARE

THE AUTHOR AND THE PUBLISHER GIVING THIS INFORMATION AWAY, FOR FREE ???” The Author would like to explain “why”, he and they are doing so. Back in 1910, a man by the name of, Wallace D. Wattles, published a book by the title of, “The Science of Getting Rich”. He also wrote, and published, several other books, and articles, which actually gives great insight in to Universal Laws and Universal Principles, which he refers to as “A Certain Way”. (All of his books are in the “public domain”, and readily available on the internet.) In this book, “The Science of Getting Rich”, in Chapter 6, “How Riches Come to You”, he gives a Universal Principle, which is, “Give every man more in use value than you take from him in cash value, then you are adding to the life of the world by every business transaction.” THE AUTHOR AND PUBLISHER ARE FOLLOWING THIS UNIVERSAL PRINCIPLE, BY GIVING

THE BOOK AWAY FREELY, AS THE AUTHOR’S, AND PUBLISHER’S, MUCH MORE “USE

VALUE”, TO ADD TO THE LIFE OF THE WORLD. This is called an “exchange factor”. You must always give more in value, than you receive, to gain. We feel that this Book does just that. We have given our use value to all of you.

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Therefore, now it is your turn, if you have gained anything at all from this Book. You are not under any obligation, to so, either. However, if you have found benefit by the use of what has been presented in the Book, then, we humbly request that you send us a modest, non-tax deductible, contribution. Our Publishing Company, is neither a foundation, nor any other type of not-for-profit organization, therefore, your contribution is not allowed as a tax-deductible item, in most nations. Purchasing educational books, in some nations, is. The main reason for this request, is that we would like to develop our own specialty Web Site, which we can post our large library of, mostly old “public domain” publications that we have acquired down through the years, for all to enjoy, free-of-charge, along with every book that we have already published, and will ever publish. Just to establish this type of Web Site, is very expensive, not only because of the large number of web pages that it will take, because of the volume of books, but to have the ability, for all of you, to be able to directly download every book, and be able to read it, at your own leisure, and, of course, all free-of-charge. We hope that by doing so, we can make our planet, a much better place. Therefore, if you can find it within your heart, to help us out, with this endeavor, but, only if you have personally benefited by this Book, then, please, send, by wire, your modest, non-tax deductible, contribution, to: Bank: HANG SENG BANK LTD.

Address: HEAD OFFICE 83 DES VEUX ROAD, CENTRAL, HONK KONG

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Your local bank will know how to send your modest, non-tax deductible, contribution, to us, you only have to request them to do so. Additionally, please, do not send us less than 20.00 Hong Kong Dollars (approximately $2.58-USD), in any form of internationally acceptable currency, because our bank charges us a transaction fee of that amount, on every wire received. Thusly, more, would be greatly appreciated. We wish to extend our most sincere thanks and heartfelt appreciation, to each and every one of you, in advance, for any contribution that you find in your heart to send to us, for our endeavors, as ‘assistance’. May Peace, Prosperity, and the Powers of Enlightenment, be with all of you,

Ralph Joseph Philippi and Ai Fang ( Lucy ) Wang

“Winning isn't getting ahead of others.

It's getting ahead of yourself.”

-- Roger Staubach --

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~ No one wants to quit when he's losing

and no one wants to quit when he's winning. ~

-- Richard Strauss --

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OW TO PRINT THIS BOOK AND/OR READ THE ELECTRONICALLY TRANSMITTED VERSION

This Book has been published in A4 format, which is what we use in China, and is what is used in most other parts of the world. The electronic version is in “.pdf” format, and, we have included the URL of the Web Site, for all to be able to download a free version of Adobe Acrobat Reader, which is also available in many different languages, for you to be able to easily read this Book, either on line, or on your very own computer, at your own leisure. If you would like to print a copy of this Book, and you use A4 format, within your nation, then, you can, and are allowed to do so, by printing out this Book yourself, using duplex (two sided) printing mode on your color printer. Or if you prefer, you can put this Book on a CD, or on any Flash Drive, take it down to any print shop, and they can print you out, as many copies that your heart desires, of course, for a price. If you live within a nation, like the United States of America, which does not use A4 format as their standard, then, you can simply tell your printer to resize it, to Letter Size, or, if your prefer to use a print shop, you only have to tell them that what you have is in A4 format, so please print it out for me, in Letter Size, and, they will be more than happy to do that for you, again, for a price. However, it is not any big deal for them to do that for you. You may want to have them put a sheet of plastic on the front and back of this Book, which you have just had printed, and have one of the print shops bind it up for you, as it is much easier to keep clean and to read in this manner. Now, if you want a Hard Cover version of this Book, that is where the rub comes in to play, because each of those are handmade, bound with a nice vinyl Hard Cover, and also comes with a very nice vinyl dust cover, on each Hard Covered version, which is not free. If you desire one of these Books, or more, in Hard Cover form, then, please send your request to the email address on the inside of the cover of this Book, telling us the number of books that you want, and, we will respond back to you with a quote, as quickly as we possibly can.

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PROSPERITY INTERNATIONAL CORPORATION, limited

ISBN 978-988-19313-1-3

Economy & Finance

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