The Pur$e and Sword

A Study of the Constitutional Requirements of Money & Security

Review of Lessons 1-3

1. The current U.S. monetary system (Federal Reserve System) is unconstitutional and violates the Rule of Law.

2. A dollar is a pure metallic standard of value.

3. Congress shall call forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions.

Supreme Court - Coin Money is a Constitutional Requirement

• United States v. Marigold, 50 U.S. (9 How.) 560, 567-568 (1850):

“They [Congress] appertain rather to the execution of an important trust invested by the Constitution, and to the obligation to fulfill that trust on the part of the government, namely, the trust and the duty of creating and maintaining a uniform and pure metallic standard of value throughout the Union. The power of coining money and of regulating its value was delegated to Congress by the Constitution for the very purpose, as assigned by the framers of that instrument, of creating and preserving the uniformity and purity of such standard of value * * *

"If the medium which the government was authorized to create and establish could immediately be expelled, and substituted by one it had neither created, estimated, nor authorized one possessing no intrinsic value then the power conferred by the Constitution would be useless wholly fruitless of every end it was designed to accomplish. Whatever functions Congress are, by the Constitution, authorized to perform, they are, when the public good requires it, bound to perform; and on this principle, having emitted a circulating medium, a standard of value indispensable for the purposes of the community, and for the action of the government itself, they are accordingly authorized and bound in duty to prevent its debasement and expulsion, and the destruction of the general confidence and convenience …."

1792 Penny

The Federal Reserve System

• Created in 1913 under the Owen- Glass Act

• Consists of: 12 private banks and 1 quasi-gvmt board

• Monetizes debt out of thin air

• It’s setup to Privatize Gains and Socialize Losses

• It’s organizational structure and power have been deemed unconstitutional(see: A.L.A. Schechter Poultry Corp. v. U.S., 295 U.S. 495)

• It’s dependant on the income tax system– It uses income tax to control

inflation

– It uses income tax revenue to pay interest on the “public” debt

– It uses income tax revenue to create more debt in order to collect more interest

100% of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.

What is a Federal Reserve Note?

• It is a Private Bank Note – (It is a promise from the bank to pay real lawful money)

• It is “Redeemable for Lawful Money on Demand”– (Pursuant to Title 12 U.S.C. § 411)

• It is NOT Constitutionally Authorized Money– (Constitution only authorizes gold or silver Coin as Tender in

Payment of Debts within the 50 states of the Union, see Article I Section 10, Clause 1)

Federal Reserve Notes are NOT Dollar$ or Lawful Money

-CITE-12 USC Sec. 411 01/03/05

-EXPCITE-TITLE 12 - BANKS AND BANKINGCHAPTER 3 - FEDERAL RESERVE SYSTEMSUBCHAPTER XII - FEDERAL RESERVE NOTES

-HEAD-Sec. 411. Issuance to reserve banks; nature of obligation; redemption

-STATUTE-Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

=

Federal reserve notes shall be redeemed in lawful money on

demand.

A Federal Reserve Note is not a Dollar - they have no value

U.S. Dept of Treasury web site states:

Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves …

http://www.ustreas.gov/education/faq/currency/legal-tender.shtml#q2

No [Determ

inable]

Value

What the Constitutional Dollar?

The Dollar is a standard unit of measurement

Weight: 16 Ounces = 1 Pound * 2000 = 1 Ton

Length: 1 Inch * 12 = 1 Foot * 3 = 1 Yard

Analogous

24 Hours = 1 Day * 7 = 1 WeekTime:

Money: 371 ¼ grains of Silver minted = $1.00

The Dollar (Silver) coin guarantees citizens a fixed measure of value

The constitutional Dollar – a minted Coin containing 371 ¼ grains of silver – guarantees value:“It is significant that this power of coining money is mentioned in the same sentence in the Constitution as the power to "fix the standards of weights and measures,“ for the framers regarded money as a weight of metal and a measure of value. Roger Sherman, a delegate to the Constitutional Convention, wrote that “If what is used as a medium of exchange is fluctuating in its value, it is no better than unjust weights and measures…which are condemned by the Laws of God and man …".

1794 Silver Dollar America's First Silver Dollar Struck

Deut 25:13-1413 Thou shalt not have in thy bag divers weights, a great and a small. 14 Thou shalt not have in thine house divers measures, a great and a small.15 But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened in the land which the LORD thy God giveth thee.

Prov 20:1010 Divers weights, and divers measures, both of them are alike abomination to the LORD.

The Legislature Knows The Truth

• From the Report of the Commission, established pursuant to Public Law 96-389“In addition to the compelling economic case for the gold standard, a case buttressed by both historical and theoretical arguments, there is a compelling argument based upon the Constitution. The present monetary arrangements of the United States are unconstitutional --even anti-constitutional-- from top to bottom.” (vol II, pg. 243)

The Legislature Reinstituted Monetary LawWithin 6 Months of the Gold Commission Report, the Legislature reinstitutes lawful Silver Dollar money followed by Gold money in 1985.

Property = # Lawful Money ($)

($)13,500

=1957

1,600 Sq. Ft. Home

= # Egg Cartons(Brown Eggs)

=

~37,700

# Legal Tender $

$13,500

=

U.S. Silver Certificate

No LawfulMoney Available

=

~37,700 “$85,400”

Fed. Res. Bank Note

1982

1,600 Sq. Ft. Home

=

($)13,500

=

~37,700

2007

1,600 Sq. Ft. Home “$175,000”

Fed. Res. Bank Note

=

What is the effect of using unconstitutional legal tender?

Buy1957

Sell2007

1,600 Sq. Ft. Home

No Cartons of Eggs Gain

No Gain No Tax Due

No Lawful Money Gain

No Gain No Tax Due

Federal Reserve Note“Gain” of $161,500

Alleged Tax Due ~FRN$55,000

After FRN Tax results in aLawful Money Property

Loss of ($)4,269

After FRN Tax results in aPhysical Egg Carton Loss of

11,922 Cartons of Eggs

Property

($)13,500

=

=

($)13,500

= # Lawful Money ($)

The purported Federal Reserve Note “Gain” is actually a “quiet theft” in thatit results in a physical property loss with the perception of an actual gain.

=

=

~37,700

~37,700

= # Egg Cartons(Brown Eggs)

1,600 Sq. Ft. Home

$13,500

$175,000

=

# Legal Tender $

U.S. Silver Certificate

Fed. Res. Bank Note

=

Quiet Theft!

Stock = # Lawful Money $

$1,942.00

=

= # Egg Cartons(Brown Eggs)

=

~5,424

# Legal Tender $

$1,942.00

=U.S. Silver Certificate

No LawfulMoney Available

=

~11,060 “$4,884”

Fed. Res. Bank Note

=

$2,338.56

=

~6,571 “$30,501.00”

Fed. Res. Bank Note

=

What is the effect of using unconstitutional legal tender?

1962

4 Share IBM Stock

1982

75 Shares IBM Stock after splits

2007

300 Shares IBM Stock after splits

IBM Stock Splits: 1964-05-18 [5:4], 1966-05-18 [3:2], 1968-04-23 [2:1], May 29, 1973 [5:4], Jun 1, 1979 [4:1], May 28, 1997 [2:1], May 27, 1999 [2:1]

Buy1962

Sell2007

IBM Stock

17% Gain in Eggs Cartons

Tax Due ~172 Egg Cartons

17% Lawful Money Gain

Tax Due $59.48

Federal Reserve Note“94% Gain” of $28,559

Alleged Tax Due (15%) ~FRN$4283.85

FRN Inflation results in a83% tax rate or $328.45 of the $396.56 of the purported gain

After FRN Tax results in aPhysical Egg Carton Loss of

923 Cartons of Eggs

Stock

$1,942.00

=

=

$2,338.56

= # Lawful Money $

The purported Federal Reserve Note “Gain” is actually a “quiet theft” in thatit results in an 83% tax rate with the perception of 15% tax rate.

=

=

~5,424

~6,570

= # Egg Cartons(Brown Eggs)

IBM Stock

$1,942.00

“$30,501.00”

=

# Legal Tender $

U.S. Silver Certificate

Fed. Res. Bank Note

=

Quiet Theft!

Relevant Law & Cases

• 31 USC 5119(a)– “the Secretary shall … maintain

the equal purchasing power of each kind of United States currency”

• 12 USC 411– “Federal reserve notes … shall be

redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.”

• 31 USC 5112(a)(7)-(10), (e)– These sections define the size weight

and pure metal content of each lawful money coin.

• Thompson v. Butler, 95 U.S. 694 (1878)

– A dollar is a dollar– See 5th Cir. Opinion

Crummy v. Klein ISD, No. 08-20133, Oct. 2, 2008

• Eisner v. Macomber 252 U.S. 189, 206 (1920)

– Congress cannot by legislation alter the Constitution, from which alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised.

• United States v. Marigold, 50 U.S. (9 How.) 560 (1850)

– Constitutionally coined money is a pure metallic standard of value; a coin with known intrinsic value.

Review of Lessons 1-3

1.The current U.S. monetary system (Federal Reserve System) is unconstitutional and violates the Rule of Law.

2.A dollar is a pure metallic standard of value.

3.Congress shall call forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions.

Constitutional Homeland SecurityArticle I Section 8, Clauses 15 & 16

[The Congress shall have Power] To

provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections;

To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the

Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;

2nd Amendment

A well regulated Militia, being

necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

...To Execute the Laws of the UnionThe Whiskey Rebellion. Harrisburg, Pennsylvania -- October 3, 1794

In September 1791 the western counties of Pennsylvania broke out in rebellion against a federal excise tax on the distillation of whiskey. After local and federal officials were attacked, President Washington and his advisors decided to send troops to pacify the region. It was further decided that militia troops, rather than regulars, would be sent. On August 14, 1792, under the provisions of the newly-enacted militia law, Secretary of War Henry Knox called upon the governors of Virginia, Maryland, New Jersey, and Pennsylvania for 12,950 troops as a test of the President's power to enforce the law. Numerous problems, both political and logistical, had to be overcome and by October, 1794 the militiamen were on the march. The New Jersey units marched from Trenton to Harrisburg, Pennsylvania. There they were reviewed by their Commander-in-Chief, President George Washington, accompanied by Secretary of the Treasury and Revolutionary war veteran Alexander Hamilton. By the time the troops reached Pittsburgh, the rebellion had subsided, and western Pennsylvania was quickly pacified. This first use of the Militia Law of 1792 set a precedence for the use of the militia to "execute the laws of the union, (and) suppress insurrections".

Free State vs. Police State

• Constitutional Execution of Laws– Militias Execute the Laws

passed by Congress

• Unconstitutional Execution of Law– Executive Agencies write

and execute their own laws • ATF, EPA, FAA, FDA, TSA …

Free State

Police State

Free State

Police State

Silence of the Constitution is Authoritative

Amendment IX

The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

Amendment X

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.