John Birch Society November 2015 Next generation of children 'will not know what money is I submit to you, neither does the current generation or the prior generation! Take away points We have 2 great Constitutional powers But our Normalcy bias has masked them Allowing 5 Keynesians Myths to replace our Constitutional Free Market system. First Power Power of the Purse Article I Sec. 8, Clause 5 [The Congress shall have Power] To coin Money Article I Sec. 10, Clause 1 No State shall make any Thing but gold and silver coin a Tender in Payments of Debts. Second Power - Power of the sword Art. I Sec. 8, Clause 15 [The Congress shall have Power] To provide for calling forth the Militia to execute the Laws of the Union ; Art. I Sec. 8, Clause 16 To provide for organizing, arming, and disciplining the Militia, These powers are misunderstood Within the power of the purse there is: 1. The power for free coinage of silver and gold 2. The power to withhold payment of taxes for redress of grievances. Within the power of the sword there is: The power of the people to be armed and trained as well as any standing army A Respectful Fear to prevent the rise of a Tyrannical Government Resulting in a masked Normalcy Bias The U.S. Dollar can never fail Without exceptions paper moneys value always approaches its cost of production: ZERO The U.S. Supreme Court is never wrong The Court has during the past 20 Terms overruled in whole or in part 33 of its previous constitutional decisions. Payne v. Tennessee, 501 U.S. 808 (1991) Keynesian Economics is a sound economic philosophy Keynes states that his economic system works best under a totalitarian government. FIVE Keynesians Myths of Money 1. The Dollar is anything Congress declares it to be! 2. The value of Money is anything the I.R.S. says it is! 3. There is not enough gold or silver to sustain a global economy! 4. Gold and silver are to heavy to transport in a global payment system! 5. Inflation benefits debtors and harms lenders! Examining Myth 1 Constitutional Units of Measure: Unit of Measure Times StatedDefinition when the Constitution was Ratified Year33 One revolution of the earth around the suns axis Day21 One revolution of the earth around its own axis Hour1 15 degree rotation of the earth around its own axis Mile1 A unit of linear measure equal to 5,280 feet Dollar2 A coin containing grains of silver Eisner v. Macomber, 252 U.S. 189, 206 (1920) Congress cannot by legislation alter the Constitution, from which alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised. This Ill reveal shortly The Dollar of the Constitution Art. I Sec. 9, Cl. 1 a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person. Amendment VII In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re- examined in any Court of the United States, than according to the rules of the common law. What is One Dollar? One Dollar is a standard unit of measurement Weight: 16 Ounces = 1 Pound * 2000 = 1 Ton Length: 1 Inch * 12 = 1 Foot * 3 = 1 Yard Analogous 24 Hours = 1 Day * 7 = 1 Week Time: Money: 371 grains of Silver minted = $ 1.00 Dollars or Units each to be of the value of a Spanish milled dollar as the same is now current and to contain three hundred and seventy- one grains and four sixteenth parts (371 ) of a grain of pure silver Does the Constitutional Dollar standard exist today? Yes! How do we know? The number $ It is derived from the constitutional dollar unit. Title 31 U.S.C. 5116(b)(2): The Secretary shall sell silver under conditions the Secretary considers appropriate for at least $ a fine troy ounce. Congress Responsibility to Regulate the Value of Coin Key: 1 troy oz = 480 grains 1 troy oz = grams 1 troy oz = oz 1 Eagle (10 Dollar) (247.5 grains Gold) 1 Dollar ( grains Silver) X 10 = (3,712.5 grains of Silver) 1 Cent (46.3 grains of Copper) X 100 = (4,630 grains of Copper) 1 Dollar ( grains Silver) Congress has the responsibility to regulate the value of all minted coins to the fixed pure metal Dollar standard. Supreme Court - Coin Money is a Constitutional Requirement United States v. Marigold, 50 U.S. (9 How.) 560, (1850): United States v. Marigold [Congress] appertain rather to the execution of an important trust invested by the Constitution, namely, the trust and the duty of creating and maintaining a uniform and pure metallic standard of value throughout the Union. " 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. ." Marigold was recently cited in: International Bancorp Llc v. Societe Des Bains De Mer et Du Cercle Des, 329 F. 3d 359, May 19, Penny Myth 2:The value of Money is anything the I.R.S. says it is! IRS claims the following argument Frivolous: In a transaction using gold and silver coins, the value of the coins is the face value of the coins and not their fair market value for purposes of determining taxable income. (Source I.R.B, pg. 885 April 2, 2007) 1. U.S. Monetary Law changed in Constitutional money was reintroduced in FOIA documents show that the IRS position is without merit. Thompson v. Butler was recently cited in: Crummey v. Klein Independent School District (Unpublished Opinion, U.S. Ct. App. for the 5th Circuit, No , 2 October 2008). Thompson v. Butler, 95 U.S. 694, 696 (1878) A coin dollar is worth no more for the purposes of tender in payment of an ordinary debt than a note dollar. The law has not made the note a standard of value any more than coin. It is true that in the market, as an article of merchandise, one is of greater value than the other; but as money, that is to say, as a medium of exchange, the law knows no difference between them. Federal Reserve Notes are NOT Dollar $ or Lawful Money -CITE- 12 USC Sec /03/05 Sec Issuance to reserve banks; nature of obligation; redemption -STATUTE- Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank. Federal reserve notes shall be redeemed in lawful money on demand. = What are Federal Reserve Notes? Private Bank Notes Supposedly Redeemable for Lawful Money (Pursuant to Title 12 U.S.C. 411) They are NOT Constitutionally Authorized The Constitution authorizes gold or silver Coin as Tender in Payment of Debts, Article I Section 10, Clause 1 They are an unconstitutional emission of Bills of Credit [Fedarl Reserve] notes have no value for themselves, but for what they will buy. {Ask yourself: if 350 one dollar Federal Reserve notes exchange for one currently minted Ten dollar ( $ 10) gold coin, what is the market value of the transaction?} Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral is chiefly gold certificates This would meet the requirements of Section 411 Our Government admited that FRNs are unconstitutional! From the Report of the Commission, established pursuant to Public Law delivered to Congress by Donald T. Regan, Secretary of Treasury, March 31, 1982: In addition to the compelling economic case for the gold standard, a case buttressed by both historical and theoretical arguments, there is a compelling argument based upon the Constitution. The present monetary arrangements of the United States are unconstitutional --even anti-constitutional-- from top to bottom. (vol. II, pg. 243) Constitutional money guarantees citizens a known fixed standard of value The constitutional Dollar a minted Coin containing 371 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 measureswhich are condemned by the Laws of God and man " Silver Dollar America's First Silver Dollar Struck Deut 25: 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 20:10 10 Divers weights, and divers measures, both of them are alike abomination to the LORD. Myth 3: There is not enough gold or silver to sustain a global economy! This assertion is the bankers myth. Thomas Jefferson put it this way I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. The real question that should be asked is: Who benefits from a fiat monetary system? Benefits of each type of Currency Benefits of Fiat Currency Cheap & cost-efficient. Its creator can regulate prices. Its value isnt subject to changing market needs. Secures votes via wealth transfer from productive to the unproductive Is used for social control. Benefits of Gold/Silver It has intrinsic value. It conveys property title to the bearer. It gives saver long term price surety. It does not require coercive money laws. Its a natural regulator of government debt. What are the effects of using fiat-currency? 1. An unrealized loss of capital and property; 2. A loss of real economic value; 3. The loss of the full economic impact of automation; Buy 1957 Sell ,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$55,000 After FRN Tax results in a Lawful Money Property Loss of ($)4,269 After FRN Tax results in a Physical Egg Carton Loss of 11,922 Cartons of Eggs Property ( $ )13,500 = = =# Lawful Money $ The purported Federal Reserve Note Gain is actually a quiet theft in that it results in a physical property loss with the perception of an actual gain. = = ~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! Unrealized losses of capital and property Buy 1962 Sell 2007 IBM Stock 17% Gain in Eggs Cartons Tax Due ~172 Egg Cartons 17% Lawful Money Gain Tax Due $ Federal Reserve Note 94% Gain of $28,559 Alleged Tax Due (15%) ~FRN$ FRN Inflation results in a 83% tax rate or $ of the $ of the purported gain After FRN Tax results in a Physical Egg Carton Loss of 923 Cartons of Eggs Stock $ 1, = = $ 2, =# Lawful Money $ The purported Federal Reserve Note Gain is actually a quiet theft in that it results in an 83% tax rate with the perception of 15% tax rate. = = ~5,424 ~6,571 =# Egg Cartons (Brown Eggs) IBM Stock $1, $30,501.00 = # Legal Tender $ U.S. Silver Certificate Fed. Res. Bank Note = Quiet Theft! What is the effect of using unconstitutional legal tender? The loss of the full economic impact of automation. Automation lowers the cost of production. Inflation however ensures the appearance of increased revenue while providing bankers unearned profits (red) However, lower cost of production often results in lower revenue. Thus, to increase revenue a manufacture either has to increase sales or add more features to maintain revenue. Sale price Inflated Sale price Example Ford Mustang 1965Features Convertible 170 CID /101 HP 6 cylinder engine Drum brakes Bucket Seats with lap belt restraint No air conditioner AM Radio $ 2,557 Example Ford Mustang 2007Features Convertible 4.0 L /210 HP 6 cylinder engine SOHC Ventilated disc brakes Bucket Seats with Air Bags Air conditioner 120W Stereo / iPod input $31,700 The Lawful Money Cost of a Ford Mustang has Remained Constant 1965 = U.S. Silver Certificate ($) 2,557 $31,700 Fed. Res. Bank Note = ( $ ) 2,557 = = 2007 Its only inflation that has given the appearance that the sales price and Fords revenues have been increasing. Myth 4: Gold and silver are to heavy to transport in a global payment system If this were true then: Kodak and Fuji should have had their factories located closer to silver mines in Mexico and Peru. iPhone would be made in Mexico or Peru. There would be no need for net-30 terms when using electronic fiat-currencies. The reality is gold and silver are transported all over the world for uses is medical, automotive and consumer electronic devices without a problem or complaint about being to heavy to transport. Myth 5: Inflation benefits debtors and harms lenders The reality is: Inflation benefits lenders (the fiat currency creators), Always hurts depositors; and Often hurts debtors (borrowers). Where does this leave us? I N AN E CONOMIC AND C ONSTITUTIONAL M ESS History shows us the solution! 1786 Paper Money (Art. of Confederation period) Blood running in the streets. Mobs of rioters and demonstrators threatening banks and legislators. Looting of shop and home. Credit ruined. Strikes and unemployment. Trade and distribution paralyzed. Shortages of food. Bankruptcies everywhere. Court dockets overloaded. Kidnappings for heavy ransom. Sexual perversion, drunkenness, lawlessness rampant. America, 1786: George Washington to James Madison 1791 Coin Money (Constitutional Law reigns) Tranquility reigns among the people with that disposition towards the general government which is likely to preserve it. Our public credit [with its foundation on solid money] stands on high ground which three years ago it would have been considered as a species of madness to have foretold. July 20, 1791, George Washington to David Humphreys If anyone had predicted that our economic and social ills could have been solved by simply making nothing but gold and silver coin our money, he would have been call crazy paraphrase George Washington taken from MOMS 7 th Edition pg. 60 What should you do? 1. Dont Panic! Prepare yourselves Educate yourself & others Practice discipline 2. Buy a farm Buy 90-days worth of food Buy livestock (Chickens, goats, lambs and/or cows) Buy a generator and fuel 3. Hold money wisely Only keep 30-days worth of cash in banks Keep 90-days worth of cash at home Buy gold and silver coins with the remainder 4. Know your neighbors Know their strengths & weaknesses Help them when they need help and dont be bashful to ask for help 5. Arm yourselves Get training not just a CHL Practice often Buy ammunition 6. Take a First Aid Class Learn First-aid & CPR Practice, practice, practice What should we [collectively] do? 1. Get our State to exercise its Sovereign duty under Art. I, Sec. 10 of the U.S. Constitution Make Gold and Silver Coin a tender in payment of debts. Enact fully enforceable gold clause contracts laws that will bar the judiciary from substituting a paper-tender as fulfillment. 2. Implement a dual monetary system Price goods and services throughout the state in both Federal Reserve note (FRN)$ and Lawful Money $. Use the European model to transition all prices, taxes, fines and other debts to Lawful Money $ units over 24 36 months. 3. Implement Lawful Money State Banks All deposits and interest are paid in Lawful Money silver or gold. Bank owners are personally liable for their banks failure Article I Section 10, Clause 1 No State shall make any Thing but gold and silver coin a Tender in Payments of Debts. The End More Information Presentations & supporting docs Firearms and field medical trainingAcquire Gold or SilverFirst aid & CPR