Hacker Chronicles 2

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═════════════════════════════════════════════════════════════════════════════ CHAPTER 1 - The "Fed" - Biggest Fraud in Americ's History ═════════════════════════════════════════════════════════════════════════════ Exposing The Fraud Let's begin by exposing this mysterious entity known as the "Federal Reserve Banking System." This entity is not part of our government. The "Fed" is privately owned by a select group of powerful individuals and private banking cartels. Its ex- press purpose is to fleece the American People by stealing our money under the pretext of a "central banking system" that calls itself "Federal." Yet it is no more a part of, or con- trolled by, the Federal Government than is Federal Express! The U.S. Constitution, Art. 1, sec. 8 states: Congress shall ... have the power to coin money, regulate the value thereof." This authority is granted and vested only in the U.S. Congress. On April 19, 1982, the U.S. Court of Appeals, Ninth Circuit Court ruled the "Federal Reserve Banks are privately owned, lo- cally controlled corporations" [Lewis vs. U.S.]. Chairman Lewis T. McFadden of the House Banking and Currency Committee, addressed the House on June 10, 1932: "Some people think the Federal Reserve Banks are U.S. Gov- ernment institutions. They are not government institu- tions. They are private credit monopolies which prey upon the people of the U.S. for the benefit of themselves and their foreign and domestic swindlers, and rich and preda- tory money lenders." [75 Congressional Record 12595- 12603] In a speech delivered before the Washington Chamber of Com- merce in 1921, William P.G. Harding, Governor of the Federal Reserve Board stated: "From a legal standpoint these banks are private corpora- tions, organized under a special act of Congress, namely, The Federal Reserve Act. They are not in the strict sense of the word Government Banks." This "special act" by Congress in 1913 is in direct violation of the 16th Corpus Juris Secundum, section 141, which states that Congress cannot delegate or sign over its authority to any indi- vidual, corporation or foreign nation. Yet that's exactly what occurred in December of 1913 by a select group of individuals in the U.S. Congress. That "special act" has become the biggest fraud in the history of this country. It is mathematically impossible to pay off the "national debt." In examining the origin of money under this central banking system. According to William H. Ferkler (Manager of Public Affairs, Department of Treasury, Bureau of Engraving & Printing, Washington, DC): "As we have advised, the Federal Reserve is currently paying the Bureau approximately $23 for each 1,000 notes printed. This does include the cost of printing, paper, ink, labor, etc. Therefore, 10,000 notes of any denomination, including the $100 note would cost the Federal Reserve $230. In addi- tion, the Federal Reserve must secure a pledge of collateral equal to the face value of the notes." In ordering these notes into existence, by sending a purchase order to the Bureau of Engraving for 10,000 notes, at a total cost of $230 to the Federal Reserve, this private banking cartel, not the Government of We the People, thereby obtains a pledge of collateral equal to their face value of $1 million! This "pledge" is made to the Reserve cartel by Congress and the collateral to which Congress pledges is the land, labor and assets of the Amer- ican people. What a racket! This private entity known as "the Fed" was incorporated in 1914 and has been creating a completely unnecessary "national debt" ever since. Simply stated: The Fed creates money as debt. The Fed creates money out of thin air. This is accomplished at the stroke of a pen with nothing more than a book entry, when the members of the Federal Reserve System make loans to the government, to the banks, to businesses, to individuals. This debt money is the money supply. The Federal Reserve Systems' banks charge usury on the created debt money. We American citizens are obligated to repay this debt money, plus the usury (interest). However, the money to pay the usury on the debt is never created within the system. Loan repay- ments to banks reduce the money supply, because the money is re- moved from circulation when the debt is repaid! To keep the money supply from shrinking, more borrowing is necessary. It is mathe- matically impossible to pay off the aggregate debt principle plus the aggregate usury. In a futile attempt to avoid the day of reckoning, borrowers are forced to take on increasing amounts of debt to pay not only the principle of the debt, but the onerous usury as well. Debt esca- lates at an exponential rate until borrowers are forced into bankruptcy. This phenomena is not unique to government borrowing, but applies as well to individuals and business. The ultimate consequences are: involuntary unemployment, inflation, burdensome usury rates, and the calculated loss of our inherited rights and freedoms, and the confiscation of our property. We should heed these wise words of Daniel Webster: "A disordered currency is one of the greatest political evils. It undermines the virtues necessary for the support of the social system, and encourages propensities destructive to its happiness. It wars against industry, frugality and econo- my, and it fosters evil spirits of extravagance and specula- tion. Of all the contrivances for cheating the laboring classes of mankind, none has been more effectual than that which deludes them with paper money." [Congressional Record, March 4, 1946] This is what we now have and if We the People don't force Con- gress to rectify the matter, the whole house of paper money is going to fall down around our heads in a few short years. The ultimate mathematical equation is complete and total bankruptcy for all but the elite few. Tens of thousands of Americans have been begging Congress after Congress to stop this fraud for over 30 years. All we have received is more and more taxation to feed this monster and the debt it creates. Lewis T McFadden, Chairman of the House Banking Commission, U.S. Congressman, speaking about the International financial conspirators, during the very time they were taking over the monetary control of America: "We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. They are not government institutions. They are pri- vate monopolies which prey upon the People of the United States for the benefit of themselves and their foreign and domestic swindlers; rich and predatory moneylenders." McFadden died mysteriously in 1936 after three attempts on his life. George W. Malone, U.S. Senator from Nevada speaking before Con- gress in 1957 alluded to the families that secretly own the Federal Reserve Bank and control the finances of the U.S. "I believe that if the people of this nation fully understood what Congress has done to them over the past 49 years, they would move on Washington, they would not wait for an election ...It adds up to a preconceived plan to destroy the economic and social in- dependence of the United States." By the year 1995, 100% of every federal income tax dollar you coerced to pay will go just to service the interest on the national debt. "The actual deficits are almost twice as large as those admitted by the government. So why hasn't our economy collapsed" Because the American people still have confi- dence in 'the system.' The heart of the system depends on borrowing to fund the budget deficits each year. The in- terest on a $3 trillion debt amounts to $240 billion an- nually, or about 40 percent of all personal income taxes paid. When this debt swells to $20 trillion in nine years or so, the annual interest will be $1.6 trillion, or about 200 percent of all personal income taxes projected for that year (at a 33 percent rate)." We have yet to pay a dime toward the principle of this alleged debt, and because of the modern banking miracle of compounding interest, the debt continues to rise unabated. Whose debt is it anyway? Is this what you work your fingers to the bone for -- to pay usury to a private group of bankers who make up the Fed? Some of those stockholders are identified as: Rothschilds of London and Berlin, Lazard Bros-Paris, Israel Mossesschieff-Italy, Kuhn and Loeb-Germany, Warburg-Hamburg, Lehman Bros-NY, Goldman and Sachs-NY, and Rockefellers-NY. Not you or I, not America, not the U.S. Government, but a consortium of private international bank- ing families and their stockholders. The Federal Reserve System takes in about a trillion dollars yearly. Yet a manipulated and cowardly Congress gives them special exemption from paying any taxes on their illegally obtained income. They pay only real estate taxes while we pay to make them rich beyond your wildest imagination, and Americans slide further and further into personal bankruptcy and despair. The Fed violates your 13th Amendment Constitutional rights by placing We the People into involuntary servitude. By forcing us to use an illegal medium of worthless currency, indebted with the interest that can never be paid back, we are placed into involun- tary servitude to these private individuals who own the Fed and its branch banks. "This Act established the most gigantic trust on earth ... When the President signs this Act the invisible government by the money power, proven to exist by the Money Trust Investi- gation, will be legalized ... The new law will create infla- tion whenever the trust's want inflation...From now on de- pressions will be scientifically created." Charles A. Lindberg, Sr. At the time of the passage of the Federal Reserve Act in 1913 THE FEDERAL RESERVE SYSTEM WAS PLANNED IN SECRECY. "Despite my views about the value to society of greater publicity for the affairs of corporations, there was an occasion, near the close of 1910, when I was as secretive indeed, as furtive - as any conspirator,...our secret expedition to Jekyl Island as the occasion of the actual conception of what eventually became the Federal Reserve Sys- tem." Frank Vanderlip, Saturday Evening Post February 9, 1935, pg. 25 Colonel Edward Mandell House, Foreign Affairs Advisor to Presi- dent Woodrow Wilson, chief architect of the Council on Foreign Relations and author of the book Phillip Dru, Administrator: A story of Tomorrow, advocating "Socialism as dreamed by Karl Marx", is also characterized as "the unseen guardian angel" of the Federal Reserve Act, according to House's biographer Charles Seymour in the Intimate Papers of Colonel House. As a matter of fact, on November 23, 1933, FDR in a letter to House stated, "The real truth of the matter is, and you and I know, that a financial element in the large centers has owned the govern- ment of the U.S. since the days of Andrew Jackson [which his- tory depicts as the last truly honorable and incorruptible American President]. THE FEDERAL RESERVE IS INDEPENDENT IN ITS OPERATIONS "Neither Presidents, Congressmen, nor Secretaries of the Treasury direct the Federal Reserve. In the matters of money, the Federal Reserve directs them." Gary Allen, None Dare Call It Conspiracy "In the United States we have, in effect, two governments...We have the duly constituted Government...Then we have an indepen- dent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution." Congressman Wright Patman THE FEDERAL RESERVE IS A GOVERNMENT GRANTED PRIVATE MONOPOLY "By law, the seven members of the Federal Reserve Board are ap- pointed by the President for a term of fourteen years each. In spite of the incredible length of these appointments, neverthe- less, they are supposed to create the illusion that the people, acting through their elected leaders, have some voice in the nation's monetary policies. In practice, however, every Presi- dent since the beginning of the Federal Reserve System has ap- pointed only those men who were congenial to the financial in- terests of the International banking dynasties. There have been no exceptions." G. Edward Griffin, The Capitalist Conspiracy, pg. 17 Henry Ford, founder of the Ford Motor Company, commenting on the privately owned "Federal" Reserve scam: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." FEDERAL RESERVE HAS NEVER BEEN AUDITED "In its 60-year history, the Federal Reserve System has never been subjected to a complete independent audit, and it is the only important that refuses to consent to an audit by the Con- gress' agency, The General Accounting Office... GAO audits of the Federal Reserve will, moreover, fill the glaring gap that now exists in our information about the Fed's activities and programs. As things now stand, the only informa- tion that we get on programs of the Fed is what the Fed itself wants us to have." Congressman Wright Patman, Congressional Record May 5, 1975 Ask yourself: How can an alleged agency of the federal government of the United States operate for 80 years without ever being audited? Simple. Since the "FED" is privately owned, our Congress does not have the power to enforce an audit. WHAT THE FED SAYS ABOUT ITSELF Some of the most informative materials available on the topics of money, inflation, interest, banks and banking, are issued by the twelve Federal Reserve District Banks. Most materials are available free of charge. Many larger metropolitan cities have a local Fed Branch Bank. You are encouraged to walk in and ask to speak to the Public Relations Manager. His job is to answer your questions and furnish you with materials you may desire, relevant to banks and banking, interest (usury), inflation, money and currency. If you take the time to research, you will be utterly amazed at what you discover! PRE-FEDERAL RESERVE HISTORY Prior to the "Federal" Reserve Act of 1913, the United States govern- ment coined, and issued our currency debt free. The only lawful and Constitutional form of money were gold and silver. The Free Coinage Act of 1792 established a standard weight, purity, and denomination for the nation's money. The authority for Congress was set forth in Article 1, Sec. 8 & 10 which state: "The Congress shall have a power To coin Money, regulate the value thereof, and of foreign Coin, and fix the Standard of Weights and Measures." "No State shall...coin Money; emit bills of credit; make anything but gold and silver Coin a Tender in Payment of Debts." Precious metals such as gold and silver have been the most highly prized means of monetary exchange for many centuries. They are "honest money." By mining the earth, one exchanges their God-given talents and resources for wealth. That wealth can then in turn be exchanged for the goods and services honestly produced by another individual's talents and resources. The Free Coinage Act of 1792 dramatically simplified the process of issuing a standard coin into circulation. At no cost, the individual could take his silver or gold dust, shavings, or bullion, to the mint, and have it melted down and pressed into coin. Now it was guaranteed to be a standard weight and purity. WHAT IS MONEY Ever wonder just what money is? Let's look at some common defi- nitions: USC Title 12 Sec. 152: "Lawful money of the United States shall be construed to mean gold and silver coin..." Black's Law Dictionary: "Coins and paper currency used as circulating medium of exchange, and does not embrace notes, bonds, evidence of debt..." What we readily see from these definitions is that paper cannot be money. What we carry in our pockets -- Federal Reserve Notes are dis- qualified as money, because they are notes. A note is an IOU -- an evidence of debt. It is not money! Why then do we call it money? Have we been tricked? The Free Coinage Act specified money to be gold and silver coin, and the denomination to be based upon a weight -- a dollar, and all coins were to be at least 90% pure. The dollar is specified as: Gold -- 25.8 grains Silver -- 412.5 grains Between revenues generated from loaning to private banks at a set interest rate and revenues generated from excise taxes, military sales, etc., the government of our nation does not need to charge one penny in personal federal income tax. The personal income tax is Socialistic in design and goes against everything the founding fathers of this nation believed in and created the Constitution for -- to allow us taxation with representation and to never allow private or foreign interests to control our money systems. Recall the words of Thomas Jefferson: "Single acts of tyranny may be ascribed to the accidental opin- ions of a day. But a series of oppressions, begun at a distin- guished period, and pursued unalterably through every change of ministers [administrations], too plainly proves a deliberate sys- tematic plan of reducing us to slavery." Is this not exactly the plan implemented with the so-called "Federal Reserve Act of 1913," and the creation of the income tax. Abraham Lincoln stated, "The privilege of creating and issuing money is not only the supreme prerogative of Government, but is the Government's greatest creative opportunity. By the adoption of these prin- ciples, the taxpayers will be saved immense sums of interest." Why was a personal, progressive income tax placed upon We the People in 1913; the same year as the Fed came into being? How else could the kingpins of the Fed finance all this usury charged against bogus cur- rency? Simple. Start taxing the people and calling this illegal scam a "national debt." Contrary to IRS opinion and the propaganda espoused by the insiders, the 16th Amendment to the U.S. Constitution was never ratified. Bill Benson and Red Beckman, two dedicated patriots, went to 48 states' legislatures and found out something very shocking -- only 4 states voted for the 16th Amendment! Their exhaustively researched document, The Law That Never Was, Vols. 1 & 2, demonstrates beyond a shadow of a doubt that the 16th Amendment was never properly ratified as a Con- stitutional Amendment. It was simply declared to be "in effect" by President Taft's Secretary of State! It is unconstitutional for the U.S. Government to directly tax wages and earnings. Even if it was valid, the 16th Amendment does not change the constitution for it is an excise tax on income derived from revenue taxable activities, interest, gains and profits. "Title 26 of U.S. Code is referred to as the Internal Revenue Code. Even though Americans believe they are law in the 50 states of the Union, they are not. Deceptive statements by IRS spokesmen and other propagandists have created great confusion as to whether these limitations on direct taxes are still in effect. Some incorrectly claim that the 16th Amendment (the income tax amendment) changed the constitutional limitations on direct taxes and authorized and income tax without apportionment. The U.S. Supreme Court rejected these claims in the case of Brushaber v. Union Pacific R.R., Co., 240 US 1, when they ruled that the 16th Amendment created no new power of taxation and that it did not change the constitutional limitations which forbid any direct taxation of individuals." NCBA Bulletin, May 1988 The Federal Tax Lien Act of 1966, P.O. 89-719 legislative history, pg. 3722 states, "The entire taxing and monetary systems are hereby placed under the Uniform Commercial Code." On page 3 of your 1992 Forms and 1040 Instructions book issued by the Internal Revenue Service, the Commissioner of the IRS states, paragraph 2, sentence 1, "You are among the millions of Americans who comply with the tax law voluntarily." The American Heritage Dictionary defines voluntary as: "1)Arising from one's own will; 2)Acting on one's own initiative; 3)Acting or serving in a specified capacity willingly and without constraint." If the IRS's own Commissioner states that We the People comply with their law voluntarily, why is it that those who don't comply volun- tarily are prosecuted, bankrupted and thrown in prison? Why are Amer- icans forced to surrender their rights under the supreme law of the land, the U.S. Constitution by an agency that has no authority under the U.S. Constitution or by any powers granted by the U.S. Congress? Being coerced and forced and to submit a signed tax return violates your Fifth Amendment rights under the U.S. Constitution. As soon as you sign and submit a tax return, you give the IRS license to use this information against you in a court of law. Unconstitutional. The Fifth Amendment states you cannot be forced to give incriminating evidence against yourself. Why are 110 million "taxpayers" putting up with this from the 535 people in Congress? This is OUR country, We the People. Do we really need a personal income tax to fund the essential func- tions of our government? Let's take a look at the numbers provided by the Department of Treasury and the Office of Management & Budget, as a result of a Freedom of Information Act request made in February, 1993: ┌────────────────────────────────────────┬─────────────────────┐ │ Income Tax collected in 1992 │ $476,500,000,000 │ ├────────────────────────────────────────┴─────────────────────┤ │ Let's look at the revenues and expenditures without calcula- │ │ ting an income tax into the equation: │ ├────────────────────────────────────────┬─────────────────────┤ │ Receipts without the personal income │ │ │ tax │ 615,227,000 │ ├────────────────────────────────────────┼─────────────────────┤ │ Outlays (including the phony national │ 1,381,895,000 │ │ debt), current spending without cuts, │ │ │ including social security │ │ ├────────────────────────────────────────┼─────────────────────┤ │ Deficit │ 477,032,000 │ ├────────────────────────────────────────┼─────────────────────┤ │ Eliminate phony "national debt" │ 350,000,000 │ ├────────────────────────────────────────┼─────────────────────┤ │ Eliminate Medicare/Medicaid: implement │ 292,000,000 │ │ national health care program funded by │ │ │ excise tax │ │ ├────────────────────────────────────────┼─────────────────────┤ │ Eliminate NEA, Foreign Aid, Immigra- │ 250,000,000 │ │ tion, privatize the FAA, Post Office │ │ │ & others │ │ ╠════════════════════════════════════════╬═════════════════════╣ ║ Surplus ║ 122,968,000 ║ ╚════════════════════════════════════════╩═════════════════════╝ Without significant cost cutting measures, the Income Tax picture is looking bleaker all the time. At present, taking all forms of taxa - tion, licenses, permits, fees, duties, excises, etc., the average American can expect to pay their government some 64% of their earn- ings! The new euphemism for additional taxation that we hear coming from Washington is "contribution." How much more can they realistic- ally expect us to "contribute." Current OMB projections place 1997 income tax revenues at $687.9 Billion. That's a 45% increase over present figures! While this appears to be a simplistic approach, one can see that with just a few changes, things can be turned around. Naturally, a transi- tion period for converting of our monetary system and tax reform will be required, but nothing can happen until the U.S. Congress intro- duces the specific legislation to begin the process. Let us pursue the consequences of eliminating the personal income tax: 1. Infusion of some 1/2 trillion dollars into the economy in dis- possible wages -- every year. 2. Americans start spending. 3. Employers hire. 4. A thriving and dynamic job market that would clean out the un- employment lines within a few short months. Why has America suffered such massive layoffs (besides the insane im- migration and free-for-all trade policies)? As We the People are tax- ed and taxed, our disposable earnings for anything other than necess- ities has continued to shrink. What's the result of this? Employers have less and less demand for their goods and services, so they lay off. As Americans try to meet these unjust and immoral tax levels, they need more and more earnings to offset. What's the result of this? Higher and higher wages which drive the cost to the consumer farther and farther out of reach. What happens if We the People allow this immoral, unconstitutional, progressive income tax to continue? More and more unemployment as Americans will continue to see their disposable earnings go towards more and more taxation to fund more and more government. Mr. Clinton wants to tax us to generate $30 billion to "create" more government jobs. The government should not create jobs. This continues to per- petuate government bureaucracy, and provides no tangible return to the "taxpayer." In a socialistic state, the "state" provides jobs, owns the farms, etc. This is what America is heading for unless we put a stop to it. If $30 billion will create 550,000 jobs, just think what dumping a 1/2 Trillion into the economy will do! Look at what tax and spend has done to America over the past 40 years. Are you willing to continue down this path? Numerous studies have shown that from 25 to 55% of women currently in the work force, would rather be homemakers. They want to stay home and raise tomorrow's society. Eliminating the personal income tax would allow moms to stay home and open up that portion of the job market in new jobs for other Americans, and would also help elimin- ate the horrific child care problems we often hear of in this country. We the People have been screaming at Congress and past administra- tions for years to stop programs like foreign aid, immigration, and so on. Our pleas have fallen on deaf ears. Despite all the propagan- da about foreign aid, no where in the U.S. Constitution is this jus- tified, nor was it even desired by our founding fathers. "The great rule of conduct for us, in regard to foreign nations, is in extending our commercial relations to have as little polit- ical connection as possible It is our true policy to steer clear of permanent alliances with any portion of the foreign world." It is unconscionable and morally derelict to force American citizens into having to decide between turning on the heater in the winter, or foregoing groceries for the week, while we dole out $58 million in foreign aid to King Hussein, or $4 billion in aid to Yeltsin. Jordan has one of the highest per capita rates of earnings in the world! Russia has tremendous deposits of gold and silver that they aren't even mining, and huge oil reserves that they don't bother to drill for! These foreign nations take care of their people first while the U.S. Congress and the Executive Branch allow Americans to go without so we can give our assets away on a silver platter, to nations that are perfectly capable of taking care of themselves. Enough is enough! We've heard all the political justifications. Now we want our govern- ment to govern with our consent. The question is -- Why do 110 million Americans put up with this? Want to force Congress to do something they have been unwilling to do because of their own special interests for the past 40 years? Balance the budget, reduce the deficit? No problem. Take away the income tax and there will be no more pork money, no more foreign aid, immigra- tion, National Endowment for the Arts, and the billions and billions of other wasteful spending. Congress has been saying for 40 years they will "reduce the budget" by reducing the size of government. Has it happened? Do you really believe it's going to happen unless we force the issue? We the People are the masters. The U.S. Congress are our servants -- that's why they're called "public servants." It's time we stop being "sheeple" and put a stop to the destruction of our great nation. It's is time that We the People rise up and assume our roles as leaders -- "If the people will lead, the leaders will follow." We have the truth and the U. S. Constitution as our legal weapon. If America returned to Con- stitutional government and currency, we would once again be a free nation instead of slaves to a private group of bankers. Recall these words from a very wise man named Thomas Jefferson: "I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power should be taken from the banks and restored to the people to whom it properly belongs." The personal income tax is the second plank of the Communist Mani- festo: "A heavy progressive or graduated income tax." Income tax is designed to break the will and the spirit of the peo- ple, making it easy for an oppressive government to subjugate the masses. In this nation, one is no longer rewarded for hard work and entrepreneurial drive. Work harder, work smarter, earn more money, and you'll get whacked with a punitive high tax bracket. Ever wonder why it's so hard to get good service anymore? Does it seem like no one cares; like no ones really interested in taking pride in their work anymore? In undermining our motivation, our enthu- siasm, our pride, it is the hope of the banking insiders that the income tax will so erode our will that we the American People will simply shuffle into the New World Order without a whimper. This statement leads us into Chapter Two of this booklet (pro- gram), so that all Americans have an understanding of the whole picture.