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The Two United States: Why Federal Law Doesn’t Apply To You. Part 3 of 6
By Truth Seeker (from 31/08/2012 @ 05:06:03, in en - Science and Society, read 5249 times)


There was, however, an early glitch. Congress chartered a national bank. Money powers were waiting at the gate from the beginning. That experience soured, so the charter for the first national bank was terminated shortly after the turn of the century. Then a second was chartered. Andrew Jackson put an end to the second in 1836 when he vetoed the bill that would have renewed the charter. Jackson’s reasoning was simple: The Constitution does not delegate authority for Congress to establish a national bank. Jackson’s rationale has never been seriously challenged, and the Constitution has never been amended to authorize Congress to establish a national bank. Nor, for that matter, does the Constitution delegate authority for the United States to establish corporations, particularly private corporations.

Development in these areas came primarily during and after the Civil War. National banks were established in territories of the United States, but no central or national bank was established. Many of the nation’s railroads were also chartered and incorporated in territories, so were and are United States corporations. The underlying rationale is simple: Where territory of the United States is concerned, Congress has permissive rather than restrictive power—Congress can do anything not explicitly or implicitly prohibited by the Constitution.

One of the things entrenched powers wanted was authority to print paper money, and by way of paper, to create credit. The Supreme Court held out on this matter as late as 1880, but in 1884, the court almost completely reversed with the Julliard decision—the Constitution does not expressly prohibit Congress from printing paper money.

It does, however, prohibit the several States from making any thing but gold and silver coin a tender for payment of debt, and the court generally upheld this prohibition through the balance of the nineteenth century when states such as Washington demanded payment of taxes in gold and silver coin.

Generally speaking, United States paper money was accepted and honored as it was backed 100% by gold. It was more convenient with respect to weight and bulk, and it had other advantages, particularly as silver coin became less plentiful.

In 1913, Congress chartered the Federal Reserve System as a national bank of sorts. Federal Reserve banks provided several advantages, not the least of which was giving United States government access to ready credit created out of thin air. With authority to create credit, Federal Reserve banks could effectively manufacture money—or what appeared as money. From 1914 to 1933, United States paper money issued in conjunction with Federal Reserve banks went from 100% backed by gold, to 40% backed by gold and the other 60% backed by obligations of the United States. Dilution of the currency dramatically increased money in circulation, which resulted in inflation, and partially fueled the speculative period producing the 1929 equities collapse.

The three basic mechanisms the Federal Reserve uses to control credit and money supply, with all “money” generated through credit issue, are as follows: The percentage of reserve required on deposit by member banks; open window discount rates (interest charged to member banks, mostly Federal Reserve Banks); and the basic discount or interest rate. Through these mechanisms, the Federal Reserve maintains “hard money” or “soft money” policy, either shrinking or expanding credit and money supply and thereby regulating the overall economy. Through these mechanisms the Federal Reserve can single-handedly collapse the nation’s credit and monetary systems, or if there is perceived benefit, such as an election year might be, nurse a sick economy along. This is hardly the regulation of value the Constitution delegates to Congress.

If the Constitution hasn’t been amended, United States paper money (Federal Reserve [bank] Notes), and the Federal Reserve System, must be creatures of Congress’ Article IV authority in the geographical United States.

The Constitution says what is says—it hasn’t been amended either to authorize the several States to make anything other than gold and silver coin a tender for payment of debt, or authorizing Congress to take absolute control of the nation’s economic activity. Consequently, there can be but one conclusion: The Federal Reserve System and the Federal Reserve [bank] Note are legitimate, or have legitimate authority for use, only in the geographical United States subject to Congress’ Article IV § 3.2 legislative jurisdiction –they are creatures within the scope of Congress’ special rather than general authority.

There is far more to the credit and monetary scams than will be treated here since the purpose at hand is to demonstrate proper application of federal law rather than to address any given subject. It should be obvious, however, that once fraudulent credit and monetary systems predicated on Congress’ Article IV § 3.2 legislative authority were in place, it was necessary to move all or nearly all of United States government under the same authority. Where the federal tax system is concerned, that was done via the revenue act of November 23, 1921—virtually all taxes promulgated under Congress’ Article I and Sixteenth Amendment authority were repealed. When they were reenacted, they came back in under Congress’ Article IV § 3.2 legislative jurisdiction. No taxing statute in the current Internal Revenue Code (Internal Revenue Code of 1954 (Vol. 68A of the Statutes at Large), as amended in 1986 and since, evidenced in title 26 of the United States Code) reaches the several States and the population at large. The taxes apply in three general categories: Income tax, Social Security tax, and the like apply only to agencies and employees of the United States; most other taxes, including inheritance, gambling, alcohol, tobacco, etc., are applicable only in the geographical United States; and some taxes cross over to customs duties.

One of the ways to determine geographical application of any given statute or act is by way of definitions contained in the act. For example, the Buck Act, which allegedly extended authority of “States” to tax on federal territory within a “State”, is a classical red herring. The Buck Act is reproduced in sections 105-111 of Title 4 of the United States Code. The term “State” is defined at 4 USC § 111(d), as follows:

(d) The term “State” includes any Territory or possession of the United States.

Compare the above definition to the one in the act that authorized the several States, and eventually federal territories and the like, to enter cooperative agreements relating to crime. The original act was promulgated in June 1934, then the basis for the current form was reenacted in May 1949. It has been amended several times since, but no major revision since Alaska and Hawaii were admitted to the Union. The definition is at 4 USC § 112(b):


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By Napasechnik
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21/11/2016 @ 09:41:39
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