The Federal Reserve System; Article 1 by Jason GIn the United States of America, judges, politicians, and other government servants pledge andswear to uphold the law of the land deriving from the Constitution, a document founded in liberty and the protection thereof. Despite this sworn oath, Article 1, Sections 8 and 9 of the Constitution, were violatedDecember, 23, 1913, by the passing of the Federal Reserve Act. Article 1, Section 8 states Congress andCongress alone can, “lay and collect taxes...but...shall be uniform throughout the United States”. It alsosays Congress can coin and regulate money. Article 1, Section 9 limits the power of Congress and says,“no...direct tax shall be laid, unless in proportion to the census...”. (1) In other words, Congress does nothave the authority to directly tax the American people in a nonuniform fashion. However, the FederalReserve enforces such a tax called the Federal Income Tax through their subsidiary, the Internal RevenueService. Defenders of the Income Tax cite the 16
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Amendment of the Constitution as the lawful basis of the Income Tax. Official documents from the various republics and commonwealths of the union conveya contrary conclusion.In 1913, Democratic representative Carter Glass of Virginia, was set to become the next chairmanof the House (of Representatives) Banking and Currency Committee. He drafted House Resolution 7837,the Federal Reserve Act of 1913, which became statutory law with the signature of President WoodrowWilson. The Federal Reserve Act formed a central bank supported by 12 regional banks, and a Board of Governors hand-picked by the President, with it's headquarters in Washington D.C. The primary functionof the central bank was to provide, “banking services to depository institutions and to the federalgovernment”. Dubiously titled the Federal Reserve, the central bank led many people to assume it is partof the Federal government. Nonetheless, the Federal Reserve asserts it is, “independent withingovernment” and “...is not owned by anyone and is not a private, profit-making institution”. Moremysterious is the fact that the Federal Reserve can execute the monetary policy of the United Stateswithout checks and balances. The Federal Reserve answers to no branch of government and takes actionas it sees fit, adjusting interest rates, controlling how much cash to print, and how much cash to keep inthe bank or enter into circulation for public use, escaping accountability when their policies fail.Furthermore, the Federal Reserve claims it is, “organized much like private-corporations” and “issuesshares of stock to it's member banks”, while reaping 6% dividends per year enforced “by law”. (2)Throughout history, banks have issued bank notes commonly known as dollar bills (or promissorynotes). The difference between notes of the past and Federal Reserve Notes of today, is that there is nocollateral backing like gold or silver, which has traditionally been the only form of money. FederalReserve Notes (dollar bills), “are not redeemable in gold, silver, or any other commodity, and receive no backing by anything...the notes have no value for themselves”. (3) Thus, paper money is worthless, andthe Department of the Treasury concurs. If dollar bills hold no value, then it is odd that Federal Reserve Notes become, “liabilities of the Federal Reserve Banks, and obligations of the United Statesgovernment”. (3) If you take out a loan from a bank (credit, not money) you are obligated to pay it back, but if you don't pay it back, the bank is liable to the Federal Reserve for the debt, even though theTreasury Department openly says the notes are worthless. If the Federal Reserve is part of the federalgovernment and indeed a functioning branch within it, then why is the government obligated to pay itself back? Why would the government pay itself 6% interest every year by collecting money from the people? Where is the money going? According to the Federal Reserve's website it is going to FederalReserve “stockholders”.U.S. Internal Revenue Code Title 26 is often cited as the law requiring Americans to pay theIncome Tax. Notwithstanding, the Internal Revenue Code is more akin to a payment schedule-- showing
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