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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
th
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
 
 percentages of money owed (actually withheld from your paycheck) depending on yearly or quarterly“income”-- than it is to a law holding people accountable. Internal Revenue Code is a statutory mazefilled with smoke and mirrors, vague and misleading writings, seemingly crafted with the intent toconfuse. It is befuddling to have hundreds of pages of code to enforce “the law”. The reason for thismonstrosity is to force “Voluntary Compliance”. (4) It's voluntary to pay income tax, but if you don't payup, the I.R.S. will send a S.W.A.T. team to your home and come down on you by any means necessary.In 2006, the I.R.S. released a document with several objectives including “reducing opportunities for evasion” and “improving compliance activities”. (4) The meaning of this is they intend to create evenmore obstructive bureaucracy, more complex Internal Revenue Code, and more showings of force onthose who do not “voluntarily comply”. Apparently, it is “indirectly” effective on the people tointimidate them into compliance by witnessing brute force projected onto those who do not complyvoluntarily.The Federal Reserve Act and ultimately the Income Tax, allegedly passed in 1913 because the 16
th
Amendment of the Constitution allowed it, despite being in direct contradiction to Article 1, Sections 8and 9. The 16
th
Amendment says: “The Congress shall have the power to lay and collect taxes onincomes, from whatever source derived, without apportionment among the several States, and withoutregard to any census or enumeration”. Ironically, the 16
th
Amendment allegedly was ratified by thenecessary majority of the 48 states existing at the time of February, 1913, ten months before the FederalReserve Act was passed by Congress and signed by Wilson, two days before Christmas. Most of Congress was home for vacation. The problem lies in the fact that, despite being in direct contradictionto Article 1, Sections 8 and 9, the 16
th
Amendment was not ratified by ¾ of the 48 states as Secretary of State Philander Knox announced to the country via the media. A man by the name of Bill Bensontraveled to the capitals of all 48 states involved and found the official documentation showing and proving, from official sources, the ratification process did not happen as Secretary of State Knox proclaimed. Solicitor of the State Department, the top legal advisor to Knox, sent Knox a 16-page memocontaining information proving less than ¾ of the states had successfully ratified the amendment asrequired by the Constitution. (5) The mistakes or intentional abuse of the ratification process, includedeverything from grammatical and punctuation errors to missing Governor signatures, resulted in failure tofollow Article 5 of the Constitution. These errors were completely ignored by Knox when he lied to the public in spite of the facts. The State Department misconstrued the information to take advantage of theaverage American who at that time, had no means to investigate the credibility of the information theywere receiving. Television news nor the Internet were around in 1913, and most people could not affordto drive around to 48 states to search archives for the official documents.The Federal Reserve Act was set up by bankers for bankers, making it “the law” for FederalReserve stockholders to reap profit through the corporate banks that make up the “system”. This entirecentral banking system was created to circumvent the checks and balances of the United StatesConstitution, while openly issuing credit or promissory notes that are worthless pieces of paper that theFederal Reserve charges people interest on for using. The Internal Revenue Code is nothing more than ameans to justify forced “voluntary compliance” through fraudulent deception and organized confusion.Law abiding Americans are fooled and intimidated into paying the Income Tax or face government gunsat their door. The 16
th
Amendment was never ratified by ¾ of the 48 states of the union at that time. TheConstitutionality and lawful application of the entire Federal Reserve System, including the InternalRevenue Service, and the Federal Income Tax, is nonexistent and fraudulent.(1)United States Constitution(2)http://www.federalreserve.gov(3)http://www.treas.gov
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11 / 24 / 2009
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