Stop The Religion Of The Fed



I remember many years ago when I sent an email to James Corbett at the Corbett Report in Japan asking him for advice on how… well, how to become more like himself! I had respect and still do for Mr. Corbett’s apparently open-mindedness and willingness to report independently the news around the world despite what the popular opinion might be. His emailed response was in hind sight a perfectly reasonable and genuine one, short and to the point, which was to advise me to simply keep on doing what I was currently doing.

And I did…

Today, in appreciation of that advice, I wish to respectfully and publicly criticize Mr. Corbett’s grammar, logic, and rhetoric when it comes to the Federal Reserve System. Logic of course is simply another word for dialectic, and apparently the common but fallacious dialectic that the Fed is a completely private banking system separate from government is prominent in James’s grammar. This is of course understandable to an extent, considering that this appeal to popular opinion permeates the alternative consciousness while amazingly not a shred of evidence supports it. And without doing the proper due diligence, pain, and suffering of countless hours of research and contemplation, it would be much easier to just go with the flow and call the Fed the enemy, while submitting to the notion that the poor little legislature has no power whatsoever over the actions of the Fed…

I can certainly attest to this notion of the power of popular belief, for when I began showing on my blog and speaking out about the primary sources that state that the Fed was certainly in no way separated from the government or completely “private” in the way that was being portrayed, I was personally attacked for my efforts. Not with fact, but with fallacious rhetoric.

But, as James suggested, I should simply keep doing what I was doing. And so I tarried through the ad hominem attacks and kept on researching and writing.

I then came out against the false Libertarian hero of the alternative media and movement, Dr. Ron Paul, showing again through only primary sources that this false prophet was not to be trusted. I went through Paul’s “End The Fed Bill” as well as his so-called “Audit The Fed Bill” and showed them to be complete frauds and completely against the rhetoric of the End the Fed crowd in that, quite logically, (1) If government (congress) can vote to end the Fed, then logically the Fed necessarily must be a part of the government, which of course created it in the first place. And (2) the audit the fed bill does nothing to actually create a new audit of the Fed or to reveal anything that can’t already be found in the CAFR audit. For the bill only modifies one of the current audits – the audits that supposedly don’t exist in the first place. This was getting ridiculous!

And so I attempted to present these facts by asking why everyone is fallaciously yelling “Audit The Fed” when it is already audited, even while that this fact is clearly stated within Ron Paul’s Audit the Fed bill and showing that all these audits are accessible on the Fed’s own website. More attacks!

Next, I attempted to ask Ron Paul why he never talked about the actual auditing system of government, the Comprehensive Annual Financial Report (CAFR) system, for which the Federal Reserve was required to fulfill its obligation to. I blogged that Ron Paul “fans” need to tell Mr. Paul to not only talk openly about the CAFR (complete audit) of the Fed but to post it on his website so that his “fans” can see that the Fed is already audited and has been since its inception.

And my demands fell on deaf ears…

Instead, I received more fallacious ad hominem attacks, still insisting that the Fed is not audited, that it is completely independent with no strings attached, and that Ron Paul was somehow the savior Christ incarnate.

I quickly figured out that I wasn’t simply up against sheer ignorance, I was up against an institution of purposefully prescribed ignorance, complete with T-shirts, bumper stickers, talking points, sales and marketing tools, and of course Ron Paul’s book sales and propaganda team. For it was much easier to blame the Fed than to admit to ourselves that we have allowed our government to become a monopoly – government as banker extraordinaire – and that men like Ron Paul are a part of that syndicate. The truther/patriot mentality would not allow proper grammar into the fold, and therefore the illogical dialectic had evolved into a sheer propaganda nightmare of epic proportions.

Yet all this time the real audit of the Fed laid in wait for its chance in the sun… and still does.

And that seems to be where it lays today, as easily accessible as ever and just a click away from realization – 500 pages of shear fact that dispels every single patriot myth alive today. But those who deal in disinformation have built an empire upon keeping the facts hidden in lieu of fallacy, and so the T-shirt and book sales keep on truckin’ while the entire world economy suffers due to a government agency that pretends to be non-governmental with the blessings of government.

But, as they say, the proof is in the pudding. And so in taking with the advice of Mr. James Corbett, I am keeping on with my efforts and thus presenting the plain proof here today, with all due respect to James, for I still think he is one of the best reporters out there. But even the best can believe in unprovable lies sometimes, especially when they are spouted around like religion and protected by grammar-less protectorates and paid shills, garnering applause and false praise at their very mention. If there is one thing about James, it is that he often goes against the norm.

I choose to believe that James is simply ignorant of the facts, that he is still able to change his mind when those primary source facts are presented to him, and that he is not so vested in the audit the Fed lie that he is still willing to publicly retract the lie and stand in truth with me, for the benefit of all. After all, it was his advice and encouragement that lead me to this point of exposing the lie.

First, we must examine the words spoken by Mr. Corbett in his recent podcast.


The rhetorical false dialectic ad populum made here by Mr. Corbett, promoting the institution of ignorance, goes like this:

“And for of those who continue to puppet the Fed’s own line that, “well, we already audit ourselves, it’s ok,” ah, they should be aware of 31 U.S. Code Section 714 sub-paragraph B, which lays out all of the exemptions by which, ah, the Federal Reserve does not have to be audited for transactions with central banks or foreign governments, transactions, ah, involving anything to do with monetary policy decisions including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations, the don’t aud- they are not audited for transactions made under the direction of the FOMC (Federal Open MarketCommittee), and they are not audited for communication among members of the board or employees of the Federal Reserve System. So, again, there’s all sorts of exemptions that this au- Audit The Fed ah- bill would- would eliminate, and it would also make sure that the results of the audit were made available to congress. So, those are significant steps.This is not an insignificant bill. It’s not an insignificant thing. It’s only a tiny baby step towards the way of dismantling and tearing apart the Federal Reserve beast, but it is progress of a sort, and it does let us get our foot in the door to get people aware of that bigger picture. So for people who are interested in that, and have people in their lives who still don’t understand the Federal Reserve, or why it should be opposed, may I humbly suggest my own documentary, “Century of Enslavement: History of the Federal Reserve,” to get people aware of the nature of this beast and why and how it must be dismantled.”


Now, in correction of these many fallacious comments, I wish to do the service of dispelling them with the primary sources and logical rhetoric based on those sources (proper grammar that is) while showing how James Corbett is so easily misled by the dialectical that has been set up to purposefully push him and other well-intended folks into that irrational thought process. And so let’s break down each logical fallacy as we break down each erroneous statement above.

I wish to disclaim here once again that I have the full respect and admiration for Mr. Corbett and that this is in no way intended to disparage his name or reputation for otherwise wonderful insight and reporting. But I will say that the facts provided here demand a retraction and restatement of the facts surrounding the Federal Reserve System to his “fans” so that, in the future, the correct course of action may be taken and so that ridiculous bills like that of Ron Paul’s Audit the Fed bill don’t continue to fool the masses into pointless distraction. As I have learned along the way, one must be responsible with their opinions, and I only respect those who may change their opinion even when they are invested in the lie with documentaries and past statements. The ego has no place in a movement designated with the word truth. And to forgive is divine…

The Reality

I have come to the conclusion after so many years of attempting disclosure of the facts that comprehension is not possible because of the religious-like faith and belief that even the most staunch activists have in their government. This seemingly unavoidable conditioning is ensured via the “waking up” process, which unerringly leads to shock jocks and disinfo agents selling the story. That is to say that there is a firm belief that the government and its creation, the Federal Reserve Board and System, are actually competing against each other; that government is somehow just another victim of the Federal Reserve. This holy misunderstanding creates the foundation for the dialectic (logic) which leads to false rhetoric and mythos about the Fed. And so we must be clear as we delve into reality that there is no real competition here and that government is all one entity, including it’s many “independent agencies”.

One of the most important Maxim’s of law is simply that the creator controls.

When applied to the Federal Reserve System, we can simply read the Federal Reserve Act (primary source) and come to no other conclusion than that the Federal Reserve Board and system was indeed created by Congress. Thus, it is patently incorrect to state that the Federal reserve is independent or separate from government, without first stating that such forms (titles) of independence and separation are only what Congress (the creator) allows in its statutes. Under no circumstances does the Fed act “outside of the law”, for in law the creator always controls.

Inversely, there stems confusion by the fact that the Federal Reserve Board is allowed by its creator to make its own rules.

Our Maxim’s of law also state that a fiction of law can make no law. In other words, the law-maker (congress) creates fictions of law, which in turn being creations (fictions) of law, have no power to make laws themselves. This is the role of the Federal Reserve.


“There is no fiction without law”

“Fictions arise from the law, and not law from fictions.”


Bouvier’s 1856 Dictionary of Law defines what a Fiction Of Law is:

FICTION OF LAW – The assumption that a certain thing is true, and which gives to a person or thing, a quality which is not natural to it, and establishes, consequently, a certain disposition, which, without the fiction, would be repugnant to reason and to truth. It is an order of things which does not exist, but which the law prescribe; or authorizes. It differs from presumption, because it establishes as true, something which is false; whereas presumption supplies the proof of something true…The law never feigns what is impossible – fictum est id quod factum non est sed fieri potuit. Fiction is like art; it imitates nature, but never disfigures it it aids truth, but it ought never to destroy it. It may well suppose that what was possible, but which is not, exists; but it will never feign that what was impossible, actually is. Fictions were invented by the Roman praetors, who, not possessing the power to abrogate the law, were nevertheless willing to derogate from it, under the pretense of doing equity. Fiction is the resource of weakness, which, in order to obtain its object, assumes as a fact, what is known to be contrary to truth: when the legislator desires to accomplish his object, he need not feign, he commands. Fictions of law owe their origin to the legislative usurpations of the bench. 4. It is said that every fiction must be framed according to the rules of law, and that every legal fiction must have equity for its object. To prevent, their evil effects, they are not allowed to be carried further than the reasons which introduced them necessarily require. The law abounds in fictions


The Federal Reserve is nothing more or less than a fiction of law – an association of persons incorporated within the law to act under the law. It deals in mostly imaginary currency (non-paper or coin) called credit, in a purely imaginary fictional realm. It is the banker in a pretend monopoly game. It is the creator of currency, which it thus controls via the powers and laws granted by Congress and the very limited independence that congress allows one of its own created corporations.

This independence is no different than the independence bestowed by the creator congress to the board of the Postal Service, the board of Social Security Administration (investment insurance scheme), or any other board of any other corporation or institution created by congress. They are all creatures of law, allowed to make their own rules to govern themselves in the absence of daily oversight by congress itself. It’s really quite simple and logical. Yet we are not bothered by the independence of say the the Post Office, while at the same time we would not expect to see a member of congress behind each Post Office desk in-taking letters and packages.

Why not? Stamps are also considered money, are they not?

According to its own data, The USPS employed 626,764 workers (as of January 2014) and operated 211,654 vehicles in 2013. So how do we think that the Post Office would exist without a certain bit of political independence from Congress?

There can’t be a congressman posted at every post office in America now can there?

This word independence has been tweaked and twisted by authors and radio shock jocks so as to mean something other than what it actually does in politics (fiction). But everything Congress creates is created with independence. And honestly unless this is the case, Congress would have no time to do anything but run its own creation.

From WhiteHouse.Gov we read:

“There are hundreds of federal agencies and commissions charged with handling such responsibilities as managing America’s space program, protecting its forests, and gathering intelligence. For a full listing of Federal Agencies, Departments, and Commissions, visit”

And from that link on we read:

“The Federal Reserve is the central bank of the United States. It formulates and administers credit and monetary policy.”

The word of, in law, means “belonging to”. The popular or common concept of independence does not refer to ownership, only to operation.

The word policy is not law. Webster’s 1828 defines policy as “In common usage, the art, prudence or wisdom of individuals in the management of their private or social concerns… Stratagem; cunning; dexterity of management… Art, prudence, wisdom or dexterity in the management of public affairs; applied to persons governing. The word policy is used also for the writing which insures against other events, as well as against loss of property.”

Policies are simply the internal rules of the agency, not the laws of the United States. Only the legislature can create laws, and those laws govern the fictions created within, like the Federal Reserve System and Board. But the board is allowed to make some rules governing its institution, since congress cannot babysit every one of its created agencies. I’m sorry to say that there is nothing more to the word independence than that, and that there is really no conspiracy here at all, just normal governance through the creation of independent agencies of government to manage the affairs of government. So stop blaming the agencies of government for government’s actions. The creator controls!!!

Listed under that heading “independent agencies of government” is all of these agencies of government allowed to act independently under their boards and commissions, including the “Federal Reserve System”. And it gives the website ( for more information, which is where the Federal Reserve CAFR and other audits are housed for public utilization.

To give you an idea of just how many independent agencies of government there are, here is just a partial selection of the listings starting with only the letter F. Notice that no special place is given to the Federal Reserve System, for it is simply just another of hundreds of associations that Congress creates to manage the affairs of the United States Corporation. Clicking on any of these independent agencies of government brings you to its prospective website, including the Federal Reserve.


Now, do you honestly take issue with this perfectly logical and reasonable list of independent agencies? Do you honestly think that the Congress with its 538 or so members could possibly run all of these agencies from the halls of congress? Is there a reason that you don’t hold up a sign, for instance, that says END THE FTA?

Understandably, the concept of ending what is the 5th plank of the Communist Manifesto – “Centralization of credit in the hands of the state, by means of a national bank with state capital and exclusive monopoly” – is a perfectly reasonable endeavor for a people that can only be described today as debt slaves to that system. However, while callously parading around such a notion in felt tip pen and cardboard, the thought of a replacement never seems to cause concern to most armchair activists. For the Fed is just part of the government, remember. So while the Fed system and banks might disappear, the central government remains perfectly intact, and still holds patent on the monopoly money. And the government has instituted all 10 planks of the communist manifesto by law, not just this one. And the other 9 planks don’t need the Federal Reserve to exist!

In fact, it is my own speculation that the collapse of the Federal Reserve would lead to one and only one thing – takeover by the world bank via loans and collateralization – which in my opinion is the goal of the government-bankers who run the Fed in the first place. Let the people believe they have defeated a small subsection of evil within the greater unseen evil by ending the Fed, and then watch helplessly as the United States is handed over to the United Nations and World Bank like every other nation, creating the ultimate manifestation of a world central bank; a bail-out like no other. But that’s merely my own opinion.

Back to the facts…

I present this information here for only one purpose, which is to show the reader that the conspiracy is not the independent agency, but the controller of that agency. For the agency has no power without its mother corporation. By promoting the patriot myth that these entities are separate in any other way than operationally creates a false dialectic that they are also in conflict or competition with each other. And in the stage-play of congressional hearings and meetings, we watch as this notion is played out for the benefit of the masses. But indeed, all they are doing is playing the parts assigned to them as agents (actors).

And here is the most important thing to contemplate…

The only reason that the chairman of the Federal Reserve can tell Congress “no” to the requests for information by Congress while in session is because the Congress voted on a bill to allow that power to the chairman.

These are nothing more than actors; agents of the government. By creating the appearance of competition and the tying of hands the illusion is set to make the audience believe the fictional tale being presented. Good guy vs. bad guy. Left vs. right. Democrat vs.Republican. House vs. Senate. Congress vs. Fed.

Its the classic rhetoric of organized crime. Many fingers of the same hand pretending to be different and opposing one another, all the while controlled by the same hand.

Ironically, if anything, the bill introduced by Ron Paul entitled “End The Fed”  stands as a very clear acknowledgement that Congress can end the fed (its own creation) at any time it wishes, through a simple vote. This is because of the fact that it is a federal agency of congress, and is its master no matter how much independence is bestowed upon it by its creator. And yet this simple logic is not acknowledged for some reason when speaking of the independence concept. But it shows that Congress the creator has ultimate power over what it created, including the invoking of the Fed’s immediate demise at the stroke of a pen. After all, the Fed is just a fiction of law, and therefore has no standing against law. This elegant truth stands as a perfect example of how a false dialectic (logic) has been built not from proper grammar, but from sheer word-of-mouth nonsense; usually from those selling products, storable food, gold and silver, and other commodities while using this fictional tale of independence and competition as its backbone of fear.

Well I have nothing to sell… And as history shows, it is usually the retail outfitters that supply goods and services that make out like bandits, not those searchers of the thing coveted or the cowards of the thing feared, and not the gold-diggers and hoarders of those goods. Strange, unreasonable, fear-based commerce indeed…

Breaking Down The Fallacies

Let us break down the fallacious statement by Mr. Corbett, piece by piece, by offering the opposing factual and primary information as its counter.

To start, let me provide you here with the primary resources that I referred to above, including the very long, full audit of the Federal Reserve called the Annual Report of the Board of Governors, otherwise known as the CAFR, as well as that of the individual banks – the audit of the Federal Reserve System and Banks:

From the Fed Board’s Website:

CAFR Annual Reports for the Board and the Individual Federal Reserve banks:

Federal Reserve Board CAFR (back to 1995) –>

CAFR’s for individual banks –>

New York Fed Bank CAFR –>

Quarterly Reports on Balance Sheets –>

For our purposes, we will use the most recent CAFR for fiscal year (fy) 2013.

You may also view my previous research articles here, thoroughly exposing this fraud, and presenting any facts not re-presented herein:

The Incontrovertible Conundrum Of Dr. Ron Paul –>

Today’s Creatures From Jekyll Island –>


And so that there is no confusion here, the above links are for the Comprehensive Annual Financial Report, which is the full audit of the Fed. This is not to be confused with the completely separate, purposefully incomplete and misleading GAO audit of the Comptroller General of the United States, which is the only subject of the Audit the Fed bills from Ron Paul and the current version spoken about above by Mr. Corbett. These two audits are completely different and separate from each other. They should not ever be confused as being the same audit report, except by the fact that both are requirements of the creator (Congress) and its prescribed laws. It is this false notion that is at the heart of the confusion. The Fed has no choice but to comply with those laws because it is a creation of that Congress and subservient to it.

Unfortunately, part of Mr. Corbett’s dialectic as presented is that the audit produced by Title 31, Section 714 is the only audit available, or at least the only one to take into consideration. Both of these notions are false. For the CAFR is just as available to the public as it is to Congress, and it has nothing to do wit Title 31, Section 714. The reality is that Congress, including former congressman Ron Paul and his son, purposefully ignore and remain silent about the full audit of the Fed – the CAFR. If I can link it to you here, do you honestly think it’s that hard to find by the Congress itself, who requires the Fed to create the CAFR under its own laws BUT NEVER SPEAKS OF IT IN CONGRESSIONAL SESSION?

As far as the actual act in question presented within the Audit The Fed bill(s), it only refers to the other incomplete audit of the GAO and not the CAFR. In regards to this seemingly strange notion, please understand that Congress passed this restrictive act – Title 31, Section 714 – the subject of the entirety of the “Audit The Fed” bill(s) – in the first place, in order to restrict itself!!! In other words, Congress itself limited the audit ability of the Comptroller General as it is reported to Congress. The average person reading this most likely thinks that the Federal Reserve is a rogue agency that refuses by its own will to allow its transactions listed within Title 31, Section 714 to be audited. But this is a congressional act! The Fed is simply obeying the law set out by congress when in high Hollywood fashion it refuses the information that Congress asks for. Congress already knows that the Fed will refuse it before it asks, because congress wrote the law that requires the Fed to with-hold that same information in the first place. This is a Hollywood production you fools!

To make this ever more clear, the audit is only done in the first place because it is required by congress. The Ron Paul campaign and Audit The Fed bill(s) only served to change a rule that Congress – not the Federal Reserve or the Comptroller General – already voted into law in 1978 – called the Federal Banking Agency Audit Act (TITLE 31, Section 714). The Fed has nothing to do with this fact and has no authority whatsoever to change or deny this law. In other words, it is Congress itself [the government corporation] that is currently keeping this information off of the Comptroller General’s audit to itself, and thus out of the realm of public or legislative disclosure within public sessions of congress. Understand this, and you understand controlled opposition politics and how the Untied States legislature runs as nothing but a Hollywood production and consensus gaining company.

Now I’m willing to bet that James Corbett has not read the very subject of his rhetoric, the comptroller’s audit itself. He certainly has not read or at least comprehended the Federal Reserve Act and the laws that very clearly require the audits. And finally, it is painfully obvious that Mr. Corbett has not even looked at the index of the CAFR report, since it shows each thing not allowed in the Comptroller’s audit to be audited in the CAFR.

Firstly, he states that the Fed “audits ourselves”, referring to myself apparently as a “puppet”. Big mistake, dude!

Here we go…

#1 The auditing process of the Fed works the same way as any other auditing process works in any other government or business. The Fed creates its financial statements, called the CAFR or annual report, and then and only then does an independent auditing firm get hired to audit the financial statements themselves. Thus, to call the unaudited financial statements an audit is not technically correct, and is just another misunderstanding by the patriot folks who do not actually read the audited reports. We call the finished product post-audit an audit report simply because the financial reports are thus audited. So this first fallacy is absolutely wrong, for the Fed statements are audited by an outside company.

In it’s letter of transmittal, the CAFR states:

Board of Governors of the Federal Reserve System
Washington, D.C.
May 2013

The Speaker of the House of Representatives:

Pursuant to the requirements of section 10 of the Federal Reserve Act, I am pleased to submit the ninety-ninth
annual report of the Board of Governors of the Federal Reserve System.

This report covers operations of the Board during calendar year 2012.

Ben Bernanke


Notice that this report is presented to the Speaker of the House! Are you really going to tell me now that the Congress doesn’t have access to the CAFR (annual report)? This is not the same audited report as the GOA audit, obviously, as we are reading here from page 4 (of the pdf) of the CAFR itself – not the GAO audit.

Also notice that this report is required by congress, the creator of the Federal Reserve Act as amended. This is not a choice!

We read in the CAFR:

Federal Reserve System Audits

The Board of Governors, the Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review. The Board’s financial statements are audited annually by an outside auditor retained by the Board’s Office of Inspector General. The outside auditor also tests the Board’s compliance with certain laws and regulations affecting those statements.

The Reserve Banks’ financial statements are audited annually by an independent outside auditor retained by the Board of Governors. In addition, the Reserve Banks are subject to annual examination by the Board. As discussed in the chapter “Federal Reserve Banks,” the Board’s examination includes a wide range of ongoing oversight activities conducted on site and off site by staff of the Board’s Division of Reserve Bank Operations and Payment Systems.

The OIG also conducts audits, reviews, and investigations relating to the Board’s programs and operations as well as to Board functions delegated to the Reserve Banks, and Federal Reserve operations are also subject to review by the Government Accountability Office.


And on page 99 we read:

The Federal Reserve Board engaged Deloitte & Touche LLP (D&T) to audit the 2012 combined and individual financial statements of the Reserve Banks and those of the consolidated VIEs.15 In 2012, D&T also conducted audits of internal controls over financial reporting for each of the Reserve Banks,Maiden Lane LLC,Maiden Lane III LLC, and TALF LLC. Fees for D&T’s services totaled $7 million, of which $1 million was for the audits of the consolidated VIEs. To ensure auditor independence, the Board requires that D&T be independent in all matters relating to the audits. Specifically, D&T may not perform services for the Reserve Banks or others that would place it in a position of auditing its own work, making management decisions on behalf of the Reserve Banks, or in any other way impairing its audit independence. In 2012, the Banks did not engage D&T for any non-audit services. One Bank leases office space to D&T.”


And we can finally read about the very different and separate GAO audit on page 409, to see the origin and novelty of that separate and unrelated audit report:

Government Accountability Office Reviews

The Federal Banking Agency Audit Act (Pub. L. No. 95–320) authorizes the Government Accountability Office (GAO) to audit certain aspects of Federal Reserve System operations. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) directs GAO to conduct additional audits with respect to these operations. Many of these Dodd-Frank-mandated audits have now been completed, but not all. In addition, the GAO has initiated its own review of financial regulators’ progress on implementing Dodd-Frank Act regulations.

In 2012, the GAO completed 21 projects that involved the Federal Reserve (table 1). Ten projects remained open as of December 31, 2012 (table 2). Some of the major projects that GAO has undertaken include a study of the Independent Foreclosure Review process; a review of Board and Reserve Bank offices of Minority and Women Inclusion and the diversity of the Federal Reserve System workforce; a review of enforcement of the Service members Civil Relief Act; and several studies on the costs and benefits associated with the implementation of the Dodd-Frank Act.


In point of fact, the GAO audit that is referred to in the Audit The Fed bills was never intended to be a full audit of the Fed system in the first place. It is a specific targeted audit of the items and transactions that the GAO is specifically looking for. It does not need a full audit for its purposes. If it did, then it would simply use the CAFR and save its auditors the trouble and expense of re-auditing the same exact thing over again. The GAO even refers readers to the CAFR (annual report) for the full financial audits!

In reference to these bills that would lift the constraints placed on the GAO’s audit authority over the Federal Reserve, Angell stated:

“The benefits, if any, of broadening the GAO’s authority into the areas of monetary policy and transactions with foreign official entities would be small.  With regard to purely financial audits, the Federal Reserve Act already requires that the Board conduct an annual financial examination of each Reserve Bank (CAFR)… The process of conducting financial audits is reviewed by a public accounting firm to confirm that the methods and techniques being employed are effective and that the program follows generally accepted auditing standards… Further, a private accounting firm audits the Board’s balance sheet… Finally, and more broadly, the Congress has, in effect, mandated its own review of monetary policy by requiring semiannual reports to Congress on monetary policy under the Full Employment and Balanced Growth Act of 1978… In addition, there is a vast and continuously updated body of literature and expert evaluation of U.S. monetary policy.  In this environment, the contribution that a GAO audit would make to the active public discussion of the conduct of monetary policy is not likely to outweigh the disadvantages of expanding GAO audit authority in this area.”


Mr. Corbett and so many others are simply victims of a slight of hand game. The various audits that take place within the Fed are stated clearly here, and yet the “Audit The Fed” bills always only refer to the single audit of the GAO, which is the least important audit of all with respect to the budgetary purposes of congress. For the GAO audit is meant to be specialized and incomplete by design!!!

No wonder the bill is not being passed. It’s just a redundancy of the CAFR! And again, the conspiracy is not within the Fed, it’s the government itself, and it will continue to play out these stage shows as long as you fall for their tricks. In fact, it would not surprise me at all if congress passes the bill simply to fool the End and Audit the Fed movement into believing they had a small victory. And the shock jocks and bumper-sticker suppliers will tout it as a big win, though nothing at all will become of it. Why? Because the audit is already there, and the congress ignores it already. LOL!

And so we now know that an audit is in fact done very much independently from the fed, making the true puppets in reality James Corbett and all others who puppet the notion that the Fed “audits itself”. This simply is not true, as shown above. The Fed does not audit itself any more than any other corporation out there. Instead it follows the legal process of auditing under the laws of the United States. I’m not here to suggest that this is a good or bad system, just to show how it works. Fallacy negated.

We also now know that the bill in question would not create any new audit, and would only serve to modify the already existing GAO audit, which in reality is just a redundancy, since the House receives a copy of the fully audited CAFR from the Board of Directors of the Fed – not by choice but by law of congress. And in that CAFR we can un-miraculously find everything missing from the GAO audit report…

One down, many fallacies to go…

#2 Mr. Corbett expresses the fact that as per U.S. Code Title 31, Section 714, and I quote “the Federal Reserve does not have to be audited for transactions with central banks or foreign governments, transactions, ah, involving anything to do with monetary policy decisions including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations, they don’t aud- they are not audited for transactions made under the direction of the FOMC (Federal Open Market Committee), and they are not audited for communication among members of the board or employees of the Federal Reserve System.”

But is this an accurate statement?

No. Not at all. Unless you do as he has and limit yourself to just this one restricted report from the GAO, thus creating your own fallacious dialectic. And why not, that’s the point isn’t it? To obfuscate and restrict the information presented in the real audit (CAFR) so that the people don’t know about it? The CAFR is certainly inclusive of this information, and the above items and transactions are indeed audited within.

I suppose we could say he is correct that this information is kept out of just one of the redundant audits, the one referred to as the GOA audit. But the whole point I am trying to make here is that this is mere subterfuge, because the congress receives the CAFR too, making the GAO audit report absolutely pointless… unless it’s designed and used to confuse and obfuscate, which it has done to Mr. Corbett!

So let’s go to the index and Table of Contents and see what we can find in the 2013 CAFR that is apparently not allowed to be audited…

How about the open market committees? Apparently in the mythos these meetings are secret, according to the ridiculous Audit the Fed bill, and thus must be voted upon to be included in the GAO audit report.

But is this correct? Does this mean that the information is not audited elsewhere?

Did anyone bother to check the full audit, the CAFR, for any of this information? Surely it can’t be in there, can it?

Oh, wait a minute. In the table of contents its states the following:

Minutes of Federal Open Market Committee Meetings….. 123

Meeting Held on January 24–25, 2012 ………………………. 124
Meeting Held on March 13, 2012 ………………………………. 156
Meeting Held on April 24–25, 2012 …………………………… 166
Meeting Held on June 19–20, 2012 ……………………………. 191
Meeting Held on July 31–August 1, 2012 ……………………. 216
Meeting Held on September 12–13, 2012 ……………………. 227
Meeting Held on October 23–24, 2012 ……………………….. 251
Meeting Held on December 11–12, 2012 …………………….. 261


Well then… the actual minutes of the actual meetings of the Open Market Committee, presented right in the audited financial statements of government? It can’t be, according to the myth. But there it is. Why? Because the CAFR is the full audit of the Federal Reserve, and it is not restricted by Title 31, Section 714.

Just because Congress chooses to ignore the CAFR doesn’t mean it does not exist. And that goes for you too, Mr. Corbett.

So what else can we find in the CAFR that is “not allowed to be audited” in the GAO audit?

Let’s go to the index and see, shall we?

Here’s a list of things apparently “not allowed to be audited” right here, somehow audited in the CAFR:

Federal Open Market Committee (FOMC). See also: Open market operations

Annual organizational matters, 125–127
Appropriate monetary policy, 144, 150, 152, 181, 186,
188, 209, 213, 244, 248, 278, 281
Authorizations, 127–130
Consensus forecast, 225–226, 237
Domestic policy directives, 5–6
Forecast uncertainty, 155, 190, 215, 250, 285
Foreign currency operations and directives, 128–138
Meeting minutes, 123–285
Members, 416
Monetary policy strategies and communications, 44–48, 164–165, 167, 217
Notation votes, 140, 165, 176, 202, 226, 237, 260, 271
Officers, 416
Policy actions, 44–48, 138–140, 162–164, 173–176, 199–202, 223–225, 235–237, 258–260, 269–271
Policy compliance, 100
Responsibilities, 349–350
Statement on longer-run goals and strategy, 7
Summary of Economic Projections, 6, 47–48, 123, 140–154, 177–189, 203–214, 237–249, 272–284
System Open Market Account, 127–128, 150, 157, 167, 217–218, 253

Open market operations. See also Federal Open Market Committee

Open Market – Open Market Desk, 16–17, 41 ,46
Volume of transactions, 289–290

Securities credit, 74

Monetary policy

Alternative scenarios, 167
Communications, 164–165
Developments and outlook, 44–48
Expectations, 22–26, 38–39
Overview, 5–6, 180
Statement on longer-run goals and strategy, 7, 131–132

Monetary policy reports to Congress

February 2013, 5–26
July 2012, 27–48

Foreign currency operations:

Authorization, 128 –130
Denominated assets, 355–356, 372–374
Directives, 130
Liquidity swaps, 357, 374
Procedural instructions, 130–138
Foreign economies, 133–134, 158, 169, 195–196


Depository institutions, 19–20, 359
Federal Reserve Banks, 295, 300–301, 359
Treasury, 359

Depository institutions

Deposits, 19–20, 359
Discount rates, 121–122
Reserve requirements, 292
Reserves of, 294–295, 298–301

Federal Reserve Banks

Accounting policies, 350–363
Assessments, 361
Assets and liabilities, 19–20, 294–295, 298–299
Audits, 319–341
Automated clearinghouse (ACH) services, 93
Balance sheets, 19–20, 41–42, 132, 150, 157, 167, 193,
217–218, 228, 253, 262
Branches, 293, 420–433
Capital, 348, 359
Cash-management services, 97
Collection services, 96–97
Commercial check collection service, 92–93
Commitments and contingencies, 395–396
Condition statements, 304–308, 346
Conferences, 434–435
Credit outstanding, 294–295, 298–301
Currency and coin operations and developments, 94–95
Deposits, 295, 359
Directors, 420–431
Economic growth projections, 141
Equipment and software, 393–395
Examinations, 53, 99–100
Fair value, 361–362
FedLine access to services, 98
Fedwire Funds Service, 93
Fedwire Securities Service, 93–94
Financial statements, 105–110, 342–407
Fiscal agency services, 95–97
Float, 94
Government depository services, 95–97
Income and expenses, 95, 100–101, 309–314, 347, 360, 405, 407
Information technology, 98–99
Interest rates on depository institutions loans, 292
Intraday credit, 97–98
Investments of consolidated VIEs, 102
Lending, 101–102
Loans and other credit extensions, 294, 296–297, 298–299, 363–368
National Settlement Service, 93
Notes outstanding, 20, 358–359
Officers, 316, 432–433
Open market transactions, 289–290
Operations, volume of, 315
Operations and services, 349–350
Payments services, 96
Postemployment benefits, 404
Postretirement benefits, 402–404
Premises, 102–104, 317, 358, 393–395
Priced services, 91–94
Recovery of direct and indirect costs, 91–92
Restructuring charges, 362, 405–406
Retail securities programs, 96
Retirement plans, 396–401
Risk management, 94
Salaries of officers and employees, 316 442 99th Annual Report | 2012
Securities holdings, 100–101, 291, 298–
Structure, 349
Supervisory information technology, 69
System OpenMarket Account holdings and loans, 100–102, 368–377
Taxes, 362
Thrift plans, 401
Treasury securities services, 95–96
Wholesale securities programs, 96

Foreign Assets Control, Office of (OFAC), 66

Foreign banks. See also specific banks by name

Deposits, 295, 300–301
Prudential standards, 50, 51, 111–112
Supervision of, 57–58
U.S. activities, 51, 58, 73

Foreign currency operations

Authorization, 128–130
Denominated assets, 355–356, 372–374
Directives, 130
Liquidity swaps, 357, 374
Procedural instructions, 130–138

Credit (i.e. Discount Window Operations)

Availability, 11–12, 14, 18, 159, 170, 172–173, 195, 231
Consumer credit, 31, 255, 265
Corporate, 14
Primary, 121–122
Risk, 383–385
Index 439
Seasonal, 121–122
Secondary, 121–122


Now, I could go on listing more and more detail from the index of the Fed audit, but I have provided here a place in the CAFR for each item that is supposedly “not allowed to be audited”. And so please do your due diligence, Mr. Corbett and all others, and stop fallaciously naming those of us who actually do the research and read the primary data as the “puppets”, when in fact the puppet is you, parroting patriot mythology based on no solid evidence at all.

As for your other demeaning rhetoric to “those who do not understand the nature of the beast that is the Federal Reserve System” like you supposedly do, I can only say that your ego is apparent here when in plain fact it should not be. Perhaps you need to be reminded about the difference between reporting “news” and having proper grammar to feed your rhetorical reporting?

In the end, Mr. Corbett, I have written this piece not to offend you (as you did generally to me with your referential parrot comment), or to harm your reputation. On the contrary, I am writing to you today in order that you would save your reputation with me, an admirer, who has caught you here with no clothes. I’m not only asking for but demanding a retraction of what I believe to be your own fallacious incomprehension of the Federal Reserve and its place among government and UNDER government control. I recognize you here as the victim, not the criminal, or so I hope. Just as I too fell for the lies and mythology without checking the cold hard facts not so long ago, I redeemed myself and suffered the blow-back by truly speaking to the reality of the Fed. But I took your advice after so many attacks and kept on doing what I was doing, and ironically our roads have diverged on this subject due to your advice and my diligent research. My goal is to inform our fellow man that this Fed story is a fraud, and at best a distraction into the notion of a false competitive dialectic by a completely corrupt government legislature. I simply ask that you be a beacon of what the so-called truth movement is supposed to be about by doing the right thing and exposing not only the truth about the Fed and these bogus bills, but to also confirm to your “fans” the very difficult admission that even the best and most respected of us can be fooled into a false dialectic – false logic and rhetoric caused by very well laid misinformation and false grammar. In short, I only ask that you tell the people, unlike Ron Paul has, that the CAFR is the audit of the Fed and of every other independent agency of government in existence (fiction), and to quit promoting the notion that an audit does not exist. For clearly the CAFR as revealed above and in my own research is the audit you seek. And this new bill will not change anything about this reality. And the audit of the Fed will continue as it always has…

With great respect and position comes great responsibility.

So do the right thing.

Retract immediately (or immediately after proper action in studying the grammar provided here) the fallacious rhetoric you have helped to spread about the Fed as I have, and encourage others to do the same. Be what you are meant to be, James.

Or… Somehow prove me to be in error! For the burden of proof has been fulfilled on my end in triplicate here today.

Signed, with all due respect,

The Anti-Puppet.


–Clint Richardson (
–Monday, October 27th, 2014


Federal Reserve Pays Treasury $75 Billion In Profit

It’s a truly sad reality that this headline sparks such a range of emotions in readers, from doubt to confusion… surprise to melancholy.

This information is no big secret. It’s not even hidden (maybe in plain sight). It’s just the typical operations of the Federal Reserve System as reported in its annual audit called the Comprehensive Annual Financial Report (CAFR).

For those actually interested in seeking the truth about this federal agency, here is the link to the Board of Governors CAFR for 2011, the latest audit of the Fed. In fact, its the 98th audit of the Fed. It explains how everything operates, its foreign investments and foreign currency swaps and schemes, its many separate limited liability corporate holdings like Maiden Lane, its dealings and bailouts with AIG, Bears Stearns, and JP Morgan, and of course its assets and liabilities balance sheet.

Link –>

Within this 479 pages of dry and boring financial reporting is a full description of the Fed’s operations, including the basic financial happenings of each individual reserve bank. Yeah, I know, it doesn’t have the flair of a good “Secrets of the Temple” or “Creatures” type of novel, but its got all the actual facts and figures from TARP to SOMA. Why? Because this is what is required by federal law.

If you want to know about the Fed, read the CAFR.

If you want to know about your city, read the CAFR.

If you want to know about your county, state, district, or any other governmental agency or corporation, read the CAFR.

Here are a few highlights:

Board of Governors of the Federal Reserve System
Washington, D.C.
May 2012

To: The Speaker of the House of Representatives:

Pursuant to the requirements of section 10 of the Federal Reserve Act, I am pleased to submit the ninety-eighth annual report of the Board of Governors of the Federal Reserve System. This report covers operations of the Board during calendar year 2011.


Ben Bernanke

(Page 73)

On March 22, the Federal Reserve System released audited financial statements for 2010 for the combined Federal Reserve Banks, the 12 individual Reserve Banks, the limited liability companies that were created to respond to strains in financial markets, and the Board of Governors. The Reserve Banks reported comprehensive income of close to $82 billion for the year ending December 31, 2010, an increase of $28 billion from 2009.

(Page 384)

r. Interest on Federal Reserve Notes

The Board of Governors requires the Reserve Banks to transfer excess earnings to the Treasury as interest on Federal Reserve notes after providing for the costs of operations, payment of dividends, and reservation of an amount necessary to equate surplus with capital paid-in. This amount is reported as “Payments to Treasury as interest on Federal Reserve notes” in the Combined Statements of Income and Comprehensive Income. The amount due to the Treasury is reported as “Accrued interest on Federal Reserve notes” in the Combined Statements of Condition.

If earnings during the year are not sufficient to provide for the costs of operations, payment of dividends, and equating surplus and capital paid-in, payments to the Treasury are suspended. A deferred asset is recorded that represents the amount of net earnings a Reserve Bank will need to realize before remittances to the Treasury resume. This deferred asset is periodically reviewed for impairment.

(Page 144)

Income and Expenses

Table 4 summarizes the income, expenses, and distributions of net earnings of the Reserve Banks for 2011 and 2010. Income in 2011 was $85,241 million, compared with $79,301 million in 2010.

(Note: $85,241 million is $85.241 billion, and is written as $85,241,000,000 – the word million means to add six 0’s)

Distributions to the U.S. Treasury in the form of interest on Federal Reserve notes totaled $75,424 million (75.4 billion) in 2011. The distributions equal comprehensive income after the deduction of dividends paid and the amount necessary to equate the Reserve Banks’ surplus to paid-in capital.

Table 4. Income, Expenses, and Distribution of Net Earnings of the Federal Reserve Banks, 2011 and 2010

Distributions to U.S. Treasury (interest on Federal Reserve Notes):

$75,424,000,000 in 2011

$79,268,000,000 in 2010

(Page 325)

Table 9A. Statement of Condition of the Federal Reserve Banks, by Bank, December 31, 2011 and 2010

Interest on Federal Reserve notes due to U.S. Treasury (note 13): listed as total and by individual bank

Note 13 – Represents the estimated weekly remittances to U.S. Treasury as interest on Federal Reserve notes or, in those cases where the Reserve Bank’s net earnings are not sufficient to equate surplus to capital paid-in, the deferred asset for interest on Federal Reserve notes. The amounts on this line are calculated in accordance with Board of Governors policy, which requires the Federal Reserve Banks to remit residual earnings to the U.S. Treasury as interest on Federal Reserve notes after providing for the costs of operations, payment of dividends, and the amount necessary to equate surplus with capital paid-in.

Payments to U.S. Treasury (interest on Federal Reserve notes) $75,423,597,000

(Page 333)

Table 11. Income and expenses of the Federal Reserve Banks, 1914–2011

Distributions to the U.S. Treasury – Interest on Federal Reserve notes:

Total for all years (1914-2011): $842,337,007,000

Total income all years (1914-2011): $1,013,516,673,000

(Translation: over 80% of the Fed’s income is transferred right back to the U.S. Treasury.)

In addition…

$44,113,958,000 – Represents transfers made as a franchise tax from 1917 through 1932; transfers made under section 13b of the Federal Reserve Act from 1935 through 1947; and transfers made under section 7 of the Federal Reserve Act for 1996 and 1997.

(Page 365)

Federal Reserve Banks Combined Statements of Income and Comprehensive Income for the years ended December 31, 2011 and December 31, 2010

Distribution of comprehensive income:

Dividends paid to member banks: $1,577,000,000

Payments to Treasury as interest on Federal Reserve notes $75,424,000,000

Total distribution 2011 = $77,376,000,000


While it is true that national and state banks certainly get some great benefits by forcibly being members of the central government’s Federal Reserve, those benefits are nothing but the statutory ones granted to them as members. Obviously, the real profiteer here is the Treasury of the United States Federal Government, as these figures have shown us. The dividends paid to member banks are peanuts compared to the “interest” paid to the Treasury.

But still the fallacy persists that the Fed is not beholden to the U.S. government.

For those who still insist that the “bankers” somehow own the Federal Reserve, again, for God’s sake, please just read the Federal reserve Act and especially the CAFR:

p. Capital Paid-in

The Federal Reserve Act requires that each member bank subscribe to the capital stock of the Reserve Bank in an amount equal to 6 percent of the capital and surplus of the member bank. These shares are nonvoting, with a par value of $100, and may not be transferred or hypothecated. As a member bank’s capital and surplus changes, its holdings of Reserve Bank stock must be adjusted. Currently, only one-half of the subscription is paid in and the remainder is subject to call. A member bank is liable for Reserve Bank liabilities up to twice the par value of stock subscribed by it.

By law, each Reserve Bank is required to pay each member bank an annual dividend of 6 percent on the paid-in capital stock. This cumulative dividend is paid semiannually. To meet the Federal Reserve Act requirement that annual dividends be deducted from net earnings, dividends are presented as a distribution of comprehensive income in the Combined Statements of Income and Comprehensive Income.

This “non-voting” stock is not a choice, but a requirement to be a member and have the privilege of being in this organized crime syndicate of banks called the Federal Reserve System. It simply allows member banks to “print” money where none existed before.

The so-called “bail-outs”, for instance, weren’t in the form of a taxpayer loan or bond to these member banks, it was simply the act of the Federal Reserve allowing certain favored member banks the one-time privilege to actually print money without loaning it out. You don’t join the Federal Reserve system because you want to be a member, you join because you have no choice.


There are so many more questions that can be answered in this CAFR, but only if you really want to know the answers.

To most, the promoted fictions, fallacies, and fairy tails about the Fed are much easier to entertain than the 479 pages of shear agonizing and sleep-inducing truth that lay within these audited financial statements of the Federal Reserve. And for a lone researcher like myself, it pains me to watch the daily feeding frenzy of misinformation surrounding this investment and currency scam, where inaccuracy and downright fiction rule over any comprehension of what the Fed really is, what it does, and who its master is.


–Clint Richardson (
–Tuesday, October 15th, 2013

Your Taxes Are Already Spent

Is it at all possible for the government to run out of money?

This seems to be the talking point in the media lately, from the financial cliff to the financial crisis to the debt ceiling. And yet, is any of this even close to a reality?

To comprehend this falsely projected fear campaign, we must first understand the difference between today’s “modern” monetary structure and that of what used to be called the “gold standard” model. (Note: gold not necessary – the “standard” happened to be gold, but could have been seashells, sticks, stones, silver, cadmium, playboy magazines, or any animate or inanimate object with intrinsic “value”).

In the yesteryear of gold-backed currency, the government was restricted in its issuance of currency based upon two things:

1) the amount of gold it had acquired (in ounces) and designated to back each physically printed single denomination of note, and

2) the value of each unit of currency ($1 dollar) assigned as collateral for each ounce of gold in holding based on a stable (unchanging) price of gold as set in statute.

In other words, the government technically could not spend money it did not have. As gold reserves increased, more gold-backed currency could be printed.

This is the only reason that I would ever support a “backed” standard currency, though I do not believe gold is the correct form of collateral for currency – for today’s printed dollars are indeed printed with over 261,000,000 ounces of gold as collateral set at a statutory value of $42.2222 dollars. The only difference is that today’s dollars cannot be traded in for that gold, for today’s dollar is considered a “fiat” currency.

On page 62 of the 2010 Federal Government CAFR, we read:

“Gold is valued at the statutory price of $42.2222 per fine troy ounce. The number of fine troy ounces was 261,498,900 as of September 30, 2010, and 2009. The market value of gold on the London Fixing was $1,307 and $996 per fine troy ounce as of September 30, 2010, and 2009, respectively. Gold totaling $11.1 billion as of September 30, 2010, and 2009, was pledged as collateral for gold certificates issued and authorized to the FRBs by the Secretary of the Treasury.


Page 453 and 490 of  the 2009 Annual Financial Report of the Federal Reserve (CAFR) also states that this gold is collateral held against Federal Reserve Notes by government.


You see, even with our current dollar based on but not redeemable in gold, the monetary system is completely whacked! For it is not the gold that makes the monetary system stable and strong, it is the laws, rules, and men in charge of that system – the congress and its organized criminal creation called the Federal Reserve System. Simply placing gold as collateral for a fiat currency does not make a good currency, even if its value is fixed by statutory law, as stated above at $42.2222 per troy ounce.

A commodity that is unstable in its value, especially one that is fixed daily by the London Fixing in the City of London banking collaboration of Rothschild’s and other banks, is not something I would wish to see backing my currency. A foundation must be strong, non-interpretable, it must retain its value, it must not be able to be manipulated by corporations, it must not be used as collateral for other investments, and it must be stable. A commodity with fluctuating value based on some corrupt banker’s whims is not ideal in any way, but especially when the “gold certificates” that represent the physical gold are traded for their market value of over $15oo, despite the fact that the statutory fixed price of that physical gold is only $42 and 2/9 dollars.

The important aspect of this old monetary system was that government was required to collect money and taxes before it could print money or spend those taxes. In other words, government could not create debt today that would be paid by future taxation or revenue,  because it was necessary to attach gold to the printed gold or silver certificate (dollar).

But all of this has changed in the last 100 years.

We now live in a monetary system that is based upon debt, despite this wealthy collateral.

Whereas before the currency was created after the acquirement of wealth (taxes), today the currency is created before any wealth is created. So, the government spends money before it actually has it, in a system based on future taxation (debt).

Strangely, this means that government is creating new money into the system that is backed only by the pitiful cooperation of the indebted and ignorant people and all their property before the revenue to pay for that money is ever even conceived. For the taxes that will pay for the monies that are being spent today will not be available until the money created today is spent by government . What is not understood, is that this money is not only created at the point of inception of legislative appropriation and debt, but that the money to pay for that creation of money does not exist until it is first created through appropriation, spent, and then re-collected as taxation for this past spending.

This paradox is the norm in government. The government created debt cannot be paid until the money spent to fund that debt by government is issued and circulated. Spending takes place before taxation happens – which simply means that the taxes used to pay that new debt have not been collected yet! This in turn is referred to as the “national debt”.

Perhaps an easy way of looking at this is to say that if government paid off all of its debt yesterday, then all taxation collected today would be purely a surplus in tax revenue, since today’s taxation would not already be spent as debt on past things. So today’s taxation would be unnecessary, and it would sit in an investment fund or account as unappropriated tax until it was needed in the future. And really this would be the ideal governmental disposition – where congress would not spend taxpayer money until it actually had the money to spend – by collecting that tax before it spent money instead of after.

With a gold-standard currency, new spending was dependent upon the acquiring of taxation before that spending took place.

But today, spending happens before taxation is collected.

If we ponder the meaning of this, it breaks the fallacy that taxation pays for government. For government can at any time spend as much or as little as it wishes by creating more debt. And this means also that government cannot and will not ever run out of money if it wished not to. In other words, there is no fiscal cliff. And the only “debt ceiling” is an imaginary line in the sand that can be crossed by government at any time it votes to.

Of course, this also means that the money created by government is purely fictional. By this I mean that money is created out of nothing by a signed appropriations bill by Congress. To this bill is attached a “promise to pay” on behalf of all citizens as taxpayers. And the debt keeps getting higher and higher and higher…

So is there a limit to this debt that can be created by government?

The answer in truth is no, for the “debt ceiling” is again just an imaginary total that can and has been changed to meet new debt. There is certainly no set in stone limit to how much our irresponsible bureaucracy can spend except the statutory restrictions placed by the very body who is appropriating this new debt to be created.

Imagine if your son or daughter had the power to create his or her allowance money by pre-funding their piggy bank… It would go something like this:

Mom, I’m going to take a blank check out of your checkbook so that you can sign it. I’ll be creating future allowance today of $10,000 for which I pledge your future wage earnings to pay that debt back to yourself. Oh, and I’ll be charging you interest for the privilege of allowing me to screw you over and put you in debt. Love ya!

Is this not what government does by creating new money as debt instead of waiting to spend money it earns as revenue through past and current taxation? Is there some reason that the people seem perfectly OK with this insane allowance given to government at the expense of their livelihood? Can someone tell me why these men and women of Congress with child-like mentalities get away with screwing the collective taxpayer base every year for more and more debt?

Seriously though… if your child is misbehaved and irresponsible, the last thing you should do is give him or her an advance on their future allowance. And yet taxpayers allow trillions of their dollars at a time to be spent without government actually earning that money first. And no, extortion is not what I mean by earn!

The reality is that our fiat currency is not based on anything but the good faith and credit of the United States. Of course this should be translated as the people and their collective property and wealth pledged to back the dollar, no matter how many are printed. And more importantly, the gold that is held as collateral for this currency has nothing to do with the assigned value of each unit of currency. So the value of each dollar is not set, which means that at no time can the value of each dollar actually be defined by the collateral held. For instance, with over 261 million troy ounces of gold held as collateral against the printed Fed Res Notes, $1 dollar may be worth $.20 cents one day and then $.15 cents the next compared to the gold held as collateral, because the gold is not the “standard” by which the dollar is based. And so whether there are billions or trillions or quadrillions of dollars in circulation, there is no tangible thing to base the actual value of each dollar.

Why is this important?

Because there is no real limit as to what can be spent by government. If all the money created by government is purely representative of a single object, no matter how much money is created and circulating, then that money has no real value other than the fact that it is ALL based on one single object – in this case a pile of gold and some other listed things.

What does this mean?

If government can create new money as debt based on future taxation, it can just as easily un-create all of its debt based on any reason it wishes.

Let me explain… Since government is the creator of money, it is also the law and rule maker of that money. As far as money creation and destruction goes, government is as God. When government creates money, at no point does that money ever cease to be the property of government. All dollars are property of the United States Mint and are copyrighted as such. So even if you currently have some dollars in your wallet, you are only in possession of those dollars as a user. You have the privilege of being a user of government property just as you have the privilege of paying that money back in taxation. And if you stop and consider for a moment, you realize that for every dollar printed by government, that dollar by necessity must eventually be paid back to government through taxation to pay for the creation of that dollar. You only have it on loan as an IOU. The “national debt” is just that – all money formally created that must be paid back with interest to the very government who created it – even if that money hasn’t been created yet!

In case you missed the point here, this means that government is in debt to nobody but itself.

Yes, that means that government is borrowing from itself too. It funds its own debt.

Now if I was to borrow money from myself I could do one of two things: I could create a chaotic system of debt and credit to pay myself back the money I owe to myself while charging myself interest that I can probably never pay back in my lifetime, or I can simply forgive myself of that debt that I created in the first place for myself and never go back into debt again… because I have plenty of money to never need to create more debt with what I already gave to myself.

So let’s ask the obvious question: if government defaults on its own self-created debt, how can this possibly harm anyone at all?

Answer: It can’t!

After all, government did not go out and get credit from some other entity in order to create its own money. That’s ridiculous! The maker of money (God) doesn’t need permission to create money, nor does it need to borrow from anyone else to create its own currency. Remember, it owns all currency no matter who is holding it. And it can call in that currency any time it wishes, which is why it can be taken right out of your bank account at any time. Banks are simple whores of the Federal Reserve System, who are allowed to also create government money out of the ether under Federal Reserve rules. This is why banks join the Federal Reserve. For without this privilege of money creation, banks could not make loans. They cannot loan the money in other peoples accounts because that money is a liability to the bank. Banks only risk money that is not their own, and government allows them to do so through the Federal Reserve.

So if government were to write off $7 trillion dollars in public debt tomorrow, as well as to put a halt to the interest and Seigniorage charged on the creation of its own currency, would this in anyway effect “creditors”? Would this act harm any other entities that may be holding the government’s debt?

The answer is a surprising one.

Let’s see who is holding the debt of government…

Listed as the #1 holder of government debt, just as Walter Burien of has been proclaiming for 20 years… The U.S. Government! Here listed as:

1. Federal Reserve and Intragovernmental Holdings

Total U.S. debt holdings: $6.328 trillion

(From the article)

“That’s right, the biggest single holder of U.S. government debt is the Federal Reserve system. The Fed’s system of banks and other U.S. intragovernmental holdings accounted for a stunning $6.328 trillion in U.S. Treasury debt in Sepetember 2011 (the most recent number available). The amount is an all-time high as the Federal Reserve continues to expand its balance sheet, partially to purchase U.S. government debt securities.

“About a decade ago, the total government holdings were “only” $2.5 trillion.”


7. State and Local Governments

U.S. debt holdings: $484.4 billion

(From the article)

“U.S. state and local governments have nearly a half-trillion dollars invested in American debt, according to the Federal Reserve. The level of investment has remained stable since 2006, moving within the range of $484 billion and $576 billion. The current debt holdings, however, represent the lowest aggregate level for state and local governments since December 2005, when they stood at $481.4 billion.”

This info taken from my previous article here:

Oh, so the Federal Reserve is holding the debt of the United States government?

But wait a minute, the Federal Reserve is the United States government!!!

Of course the mythology surrounding the origins and nature of just what the Federal Reserve is has created a fallacy from within the population that the Fed is somehow not a government entity. Of course, this is absolutely absurd when you do just a token bit of research about the Federal Reserve and how it was created. Yet the fallacy persists despite the fact that the Federal Reserve was created by Congress and can at any time be ended by Congress. I have written extensively on this subject, and for those who base their beliefs about the Federal Reserve on what they’ve heard around the way, I suggest you correct your mistake. For government wishes nothing more than for you to think that the Federal Reserve is not part of government, and that government owes the Federal Reserve all this money listed above. This is nothing but slight of hand, proven in triplicate through my previous research (2 links):



Once we understand that the Federal Reserve is just a sub-corporation of the main United States corporation, we understand that government is funding its own debt – meaning that it owes money to nobody but itself – which means it owes money to nobody but uses this scam to fool the people into an illusion of indebtedness.

The creator of money can simply un-create the debt attached to that money; and the only victim would be government itself and its embezzlement scheme to acquire higher and higher tax revenues to pay a debt that for all intents and purposes does not actually exist.

The purpose of this rant is simply to put an end to the fallacy that a government as powerful as ours can possibly be in debt, especially to itself. The power of money creation is both the disease and the cure for this debt issue, and the solution is as simple as writing off that portion of the debt that is self-funded. While we did not cover other debt holders, we must consider that all municipal cities, counties, districts, and states are also all holders of Federal debt. Public pension funds as “institutional holders” of debt are also a large part of this equation, with debt holding in the 100’s of billions. And this leaves a fractionally small portion of debt that is held by foreign governments, most of which are heavily built up by American investments in their infrastructure and manufacturing base.

The reality is that most of this debt can be disappeared as easily as it was created. For most of this debt has never even been represented by physical dollar bills. Most of it is purely a fictional digital entry in some financial database somewhere. A beam of negative energy scaler or a an EMP pulse would easily wipe out all records of these digital transactions just as easily as an action by Congress and the president. (Yes, I’m a Fight Club fan!)

But unfortunately, the reality as well is that the people will continue to pay their taxes to support more and more debt money created by a purposefully irresponsible government. And ironically, they will do so without ever realizing that the money they spend in taxation today will be used to pay for the spending of the past, without any hope for the future.


–Clint Richardson (
–Tuesday, April 23, 2013

Today’s Creatures From Jekyll Island

One of the things that the “truth” movement does best is to perpetrate and over-propagate myths and legends.

While a myth is something that just isn’t the truth, a legend is based on a grain of truth that has been blown way out of proportion into being almost god-like in its power – able to create whole movements based on false facts.

Of course, the favorite “truther” myths and legends seem to circulate around the creation of and the continuing story of the Federal Reserve System. In a previous post, I broke down the legal structure of the Federal Reserve, including the Federal Reserve Act and the reality of what an “independent agency of government” actually is (The Postal Service, Social Security Administration, Federal Trade Commission, Federal Elections Commission, Securities And Exchange Commission, and the Federal Reserve System are all examples of “independent agencies of government”.) They are Federal government corporations, created by Congress, and given the limited power of “rule-making” while still bound by congressional “law” – and there is just no way to get around these facts. All this and the sources you need are right here:


But obviously, the legend still outlives the reality…

My favorite part of the Fed legend is the story of the men who gathered at Jekyll Island to supposedly “create” the Federal Reserve.

While it is certainly true that men congregated to create a bill that could then be eventually run through and passed by congress, the legend of that meeting is one of the more discrediting aspects of the movement. In fact, it unfortunately gives people the false impression that this meeting at Jekyll Island was some rare event in history – as if the rest of the time in government, bills and acts are created by the actual congressmen who spend days and weeks composing and signing them. This is far from the truth.

Was there a meeting on that island? Of course. This fact is not in question.

Did these men create the Federal Reserve? Of course not. They simply wrote a draft of a bill that would take some three years to finally be rewritten, amended, and passed by congress. Congress created the Federal Reserve, which was finalized by then President Woodrow Wilson’s signature. Government, in fact, created the Federal Reserve Board and banks in committee after the Federal Reserve Act was signed, just as it was instructed to do by the Act.

Did the bill pass by the vote of just a few house members on a late stormy night when most of congress was at home sleeping or celebrating the holidays? For this myth, I simply did a bit of simple, logical research….


“The House passed the bill 298-60 on the evening of Dec. 22, 1913″

“The Senate began debate the following day at 10am, and passed it 43-25 at 2:30pm.”

“Wilson signs currency bill,” –New York Times, pp. 1-2, Dec. 24, 1913.

Oh, yeah… the legend seems to forget the check and balance rule that when a bill passes the house, it must also pass the Senate and be signed by the President. So in reality, The Federal Reserve Act didn’t get “created” until that very stroke of the presidents pen. And since bills go from the House to the Senate, and since the Senate then passed the bill as well, and since the bill then went to conference for final amendment and approval, we can’t very well state with any historical accuracy that the Federal Reserve Act was created on a dark stormy night in the House after all of the congress had already left for the holidays, now can we? For the Senate met the next day at 10 am! We can’t just dismiss or not mention the rest of the legislative process for the fulfillment of our legend.

But we also can’t dismiss the journals of the House and Senate, which clearly show the number of votes cast as official record. In other words, when role call was announced, the following was the response of congressmen in attendance for the final vote on the conference report (amended version of the Federal Reserve Act Bill):

House: Bill passed the house on September 18th by a vote of 282-85 with only 3 democrats voting against it.
Senate: The Senate passed the Federal Reserve bill, 54-34 on December 19th with full Democratic support.
Conference Committees: agreed and on December 22nd and 23rd the two houses ratified the bill and the President signed the measure as follows…

1) Dec. 22, 1913 – House agreed to conference report on H.R. 7837 by 298 yeas to 60 nays and 76 not voting but with 34 announced pairs.

2) Dec. 23, 1913 – Senate agreed to conference report on H.R. 7837 by 43 yeas to 25 nays and 27 not voting but with 13 announced pairs.

3) Dec. 23, 1913 – President signs H.R. 7837, the “Federal Reserve Act”.

Does this sound like congress was home for the holidays when the Federal Reserve was created? 76 members out of a total of 434 were listed as not present for the vote. This means that approximately 18% of House members were not present for the vote, which as it turns out is not at all uncommon. It also means that even if these 76 members were present to vote, and they all voted nay on the act, the total votes would have stood at 136 nays, and 298 yeas. This would still have been well over a 2/3’s majority vote in favor of the Federal Reserve Act by the House Members.

The New York Times then reported:

“WASHINGTON, Dec. 23.–President Wilson signed the Currency bill at 6:02 o’clock this evening, following the passage of the conference report by the Senate in the afternoon by a vote of 43 to 25, and the House’s approval of that report last night…”

(Link–> – Note that you may download full article here as well.

So that you can understand how common this absenteeism is in legislatures across the United States, I’d very much like for you to watch this coverage of the Texas Legislature, perhaps my favorite tool to wake people up to the fraud that is government:

Note that since the legislature makes the rules, the legislature very seldom enforces their own rules.

The point here is that if one pours through the journals of the congress, one will continuously see the fact that congress is never full. Absenteeism is a normal aspect of the legislature.

Is this right or wrong?

I’m not here to tell you what is right or wrong, though I personally believe that no bill should be passed in congress without 100% attendance and vote. What I am here to do is present fact -vs- fiction. And the fact is that nothing out of the ordinary happened on that night (when only 18% of the Congress didn’t vote for the conference report on the Federal Reserve Act) and that it was indeed passed quite legally. Good or bad? That’s not the issue. It’s good for some, bad for others. I’m not here for that. Good and bad are not facts, they are opinions. My opinion, so as to be clear, is that the Federal Reserve Act was both good and bad, but that its management is very bad. But more importantly, my opinion of congress and the President, both past and present, is that they are acting in treason to the people of the united states of America under the Lieber Code (martial law) and that nothing they do is lawful in America in the first place. But, they are acting legally in the United States under their own laws, which is outside of the united states of America, in Washington D.C. They are the provisional government of the occupying military force called the United States. So my opinion is based on these facts, as a man who understands that he is under martial law and that since the Civil War, the government of the United States is illegitimate under duress.

Interestingly, because of this fact, the ludicrous pursuit of Obama’s birth certificate to prove “citizenship” is a fallacious waste of time. For under military rule, there is no law that requires any head of any corporation to be a natural born citizen of the united states of America in the government of the federal corporation called the “United States”. In fact, there is no law period! You see, there is no such thing as being naturally born in the “United States” corporation. The United States are a corporation, and there is nothing natural or human about it. The President is the CEO of the United States, not the united states of America.

And as it turns out, the myth of future martial law as a result of “civil unrest” is one of the few instances where the myth covers up an already existing fact that is much worse than the myth. In this occupied land, the “United States” military already has bases in all 50 States, which are federal territories of the United States, signifying the presence of martial law according to the laws of war in the Lieber Code. And so the fear of martial law covers up the actual ongoing military rule and occupation that already exists! Just one more quiver in the educational void of the truth movement. The Lieber Code directly influenced both the Hague Convention deliberations and the Geneva Conventions in the mid-twentieth century, and was originally put into effect as General Orders 100, on April 24, 1863, by Lincoln’s secretary of war, Edwin Stanton.

By the way, I feel perfectly justified in saying these things because of the FACT that I was once equally as naive as the rest of us; telling people to wake up even as I was completely asleep. A cursory glance at some of my first posts on this blog is proof enough of my own ignorance just a year ago, and of the arrogance that comes with being an nonfactual truther. So getting offended at my writing is pointless. I still have a lifetime of learning to overcome my own current ignorance, and I no longer fool myself into thinking that I know even a fraction of what is.

My intention is only to point out what isn’t, so as to make it easier for both you and myself to see what is. So bare with me…

For more on this, may I suggest my previous research here:

(Link –>

And for more on the Lieber Code and our continued military rule since the Civil War, see here:

(Link –>

One last example as to the myths that get passed around without verification.

This quote is often put forward to be said by Woodrow Wilson after signing the Federal Reserve Act.

“I am a most miserable man. I have unwittingly ruined my country. A fantastic industrial nation is controlled by its system of confidence. Our system of confidence is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men…”

But when we actually examine where this quote comes from, we can quite easily and logically deduct the fact that this quote could not have been said by Woodrow Wilson any time close to or after the date of the signing of the Federal Reserve Act in December of 1913!

Page 185 of “The New Freedom” by Woodrow Wilson (1913, Doubleday, Page & Co) has this quote.

For a description of this book, we read: “The New Freedom comprises the campaign speeches and promises of Woodrow Wilson in the 1912 presidential campaign.” Also note that this book was copyrighted and published earlier in the year 1913.

How is it then that this quote can possibly be attributed to President Wilson after signing the Federal Reserve Act in the last week of that year, on December 23rd, 1913?

Does nobody verify facts anymore?

It turns out that Wilson didn’t write or say the phrase, “I am a most miserable man. I have unwittingly ruined my country.”, at least that anyone can find.

In Chapter 8 of “The New Freedom”, we find written:

“A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men who, even if their action be honest and intended for the public interest, are necessarily concentrated upon the great undertakings in which their own money is involved and who necessarily, by very reason of their own limitations, chill and check and destroy genuine economic freedom.”

And then in Chapter 9, we read:

“We have restricted credit, we have restricted opportunity, we have controlled development, and we have come to be one of the worst ruled, one of the most completely controlled and dominated, governments in the civilized world–no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men.”

And as of yet, I can’t seem to find a reference for the “unhappy man ruining his country” quote.

But someone out there put it all together, shortening sentences and blending intent, to read as such:

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

And this quote is used in such movies as Freedom To Fascism, Zeitgeist, The Money Masters, etc…

On “The Money Masters” website, the quote for that movie is listed as:

Despite these warnings, Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote:I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit…’ etc…”

(Source –>

For the movie, “America: Freedom To Fascism”, the quote was:

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

Among other misquotes, Mr. Russo also twisted this quote completely out of context when he read:

“We can’t be so fixated on our desire to preserve the rights of ordinary Americans.” –Bill Clinton, March 11, 1993

What Clinton actually said (on March 1, 1993) was:

“We can’t be so fixated on our desire to preserve the rights of ordinary Americans to legitimately own handguns and rifles—it’s something I strongly support—we can’t be so fixated on that that we are unable to think about the reality of life that millions of Americans face on streets that are unsafe, under conditions that no other nation—no other nations—has permitted to exist.”

(Source –>

How can one then trust any other quotes or references in such “documentaries” if such blatant misquotes with unverifiable information are placed into them as “historical fact”, and then parroted by “truthers” to people who might actually verify the lie? It is my opinion that a documentary is supposed to document facts, not parade half-truths for the benefit of emotional response.

Again, if almost the entirety of Wilson’s quote was written in a book that was published well before the Federal Reserve Acts was signed, then how could it be Woodrow Wilson’s thoughts “after signing the Federal Reserve Act“, as so many have quoted without verification?

The “truth” is that it can’t.

And to assign some sense of heroism to the very man who signed the Federal Reserve Act, making it law, after he agreed to do so for campaign donations and support to become president in the first place, is a stain on the reliability of the good people who then quote these lies as truth. In fact, the only logical conclusion is that Wilson was stating these facts about the banking system to prepare and predicatively program people to except the fact that the Federal Reserve was going to be created to solve all of these problems that he wrote about in this book. What a twisted history and tangled web we “truthers” can weave…


Another aspect of this legend of the Federal Reserve story is the strange notion that the Federal Reserve System somehow operates outside of government control, that it owns its own assets, and that some rouge “bankers” or “elite” own some fictitious stock in the Federal Reserve that no one can see, touch, or verify. I’ve even seen lists going around listing certain men (international bankers) as shareholders of the bank. Despite the fact that the current Federal Reserve Act as annotated in U.S. CODE has been amended by Congress numerous times in every decade since its inception, and is now a completely different “creature” than it was at its creation, even the original Federal Reserve Act states quite clearly that these myths about the legend are simply not true…

Here is an excerpt from the original Federal Reserve Act:

SEC. 2… Under regulations to be prescribed by the organization committee, every national banking association in the United States is hereby required, and every eligible bank in the United States and every trust company within the District of Columbia, is hereby authorized to signify in writing, within sixty days after the passage of this Act, its acceptance of the terms and provisions hereof. When the organization committee shall have designated the cities in which Federal reserve banks are to be organized, and fixed the geographical limits of the Federal reserve districts, every national banking association within that district shall be required within thirty days after notice from the organization committee, to subscribe to the capital stock of such Federal reserve bank in a sum equal to six per centum of the paid-up capital stock and surplus of such bank….

Any national bank failing to signify its acceptance of the terms of this Act within the sixty days aforesaid, shall cease to act as a reserve agent, upon thirty days’ notice, to be given within the discretion of the said organization committee or of the Federal Reserve Board.

Should any national banking association in the United States now organized fail within one year after the passage of this Act to become a member bank or fail to comply with any of the provisions of this Act applicable thereto, all of the rights, privileges, and franchises of such association granted to it under the national-bank Act, or under the provision of this Act, shall be thereby forfeited….

No individual, copartnership, or corporation other than a member bank of its district shall be permitted to subscribe for or to hold at any time more than $20,000 par value of stock in any Federal reserve bank. Such stock shall be known as public stock and may be transferred on the books of the Federal reserve bank by the chairman of the board of directors of such bank….

SEC. 3. Each Federal reserve bank shall establish branch banks within the Federal reserve district in which it is located
and may do so in the district of any Federal reserve bank which may have been suspended.

* * * * * * * *

SEC. 5. The capital stock of each Federal reserve bank shall be divided into shares of $IOO each….

* * * * * * * *

SEC. 7. After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders shall be entitled to receive an annual dividend of six per centum on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid dividend claims have been fully met, all the net earnings shall be paid to the United States as a franchise tax, except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to forty per centum of the paid-in capital stock of such bank.

The net earnings derived by the United States from Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury….

So after reading this, does it sound to you like “bankers” took over the banking system of the United States?

No. In fact, Individual banks were REQUIRED to purchase stock to be a Federal Reserve Member to continue operating as a reserve bank of the United States. In other  words, if any bank wished to continue to create funny money legally through the United States, they had to become members of the Central bank of the United States. So technically, government actually created a system to control bankers.

But what needs to be known is that government, over many, many decades, has slowly invested in the ownership stock of all of these banks and other corporations and collectively, governments have become the major share holder of these banks. Government is where the public wealth is – 100’s of millions of people’s wealth exacted and extorted daily – and the power to control that wealth as well as the regulation of the banking industry in one consolidated government was the collective goal.

Please get this through your head… I am not here trying to convince you that government isn’t controlled by outside influences, bankers, elites, or whatever the legend of today names these men as… I am simply telling you the facts: The Federal Reserve System is a government agency that is politically independent (not naturally or lawfully independent), no differently than the Post Office or the Social Security System or many other independent agencies of government, and that it is government that holds the wealth and stock ownership of most corporations and banks.

There are no ownership shareholders of the Federal Reserve because the Federal Reserve does not offer ownership stock. Wallmart and Monsanto offer “public” ownership stock, for which people and government has been purchasing for decades. But government corporations do not offer public (ownership) stock, which means that government is not owned.

Thus, the myth that “corporations own the government” can also be dismissed here. It is quite the opposite, actually. The word “own” is the legal holding of stock of a corporation. So while there is very much a symbiotic relationship between corporations (including banks) and government, the fact is that government owns shares in corporations, and not the other way around. The reality is that at any time government, with the swish of a pen or the dumping of its collective stock, can indeed shut down or make insignificant any corporation it chooses to. On the other hand, no corporation can do the same to government.

These are the facts. And while these facts do not preclude the idea that a bunch of evil bankers and corporate elitists control the government from beyond its borders, they do show quite clearly that while government may be controlled by these men, government is not “owned” by these men. The distinction here is perhaps the most important one I can think of, and yet it is the most overlooked by the creators of legends and myths. Is it any wonder that the masses, with the help of the government-owned media (through stock investment), calls us “conspiracy theorists”? If 99 out of 100 “truthers” are purposefully led into the mythological beliefs we are uncovering here, and then present those beliefs as fact (as I once did) without verifying these stories of false history, then how can the masses of people ever be persuaded to “wake up”? For waking up into just another dream-state is never going to accomplish anything – and belief in mythology and legends is not truth!


We also see in the Federal Reserve Act that earnings shall be used to supplement the gold reserve held against outstanding U.S. notes. What does this mean? After all, the myth states that there is no gold in Fort Knox, right?

As of 2009, the gold reserve held as collateral by the Treasury against outstanding United States notes was listed in the Federal Reserve Comprehensive Annual Financial Report, pages 453 and 490.


Please note that the Federal Reserve is required to publish its audit of its financial statements just as every other government agency is in the country – NO EXCEPTION –  and this can be verified in the Federal Reserve act and in U.S. CODE here:

Section 11B. Annual Independent Audits of Federal Reserve Banks and Board

The Board shall order an annual independent audit of the financial statements of each Federal reserve bank and the Board.

[12 USC 248b. As added by act of Nov. 12, 1999 (113 Stat. 1475).]

But wait a minute, the Fed doesn’t get audited, does it? Isn’t that what the myth states, that the legend called the Federal Reserve doesn’t get audited because it is a rouge agency and out of control of the government?

Read the answer to this question for yourself, here: –>

And then go ahead and download the audit of the Federal Reserve, which is listed on its site as:

“Audited Annual Financial Statements of the Federal Reserve System (annual statements as of and for the years ended December 31, 2011, and 2010)”

Here’s the link for the audit of each individual Fed bank, as well as the Board–>

It’s really simple and a generally accepted practice for governments and private corporations you see, to create their own financial statements and have them audited by an outside accounting firm. This was the case even when The Creature From Jekyll Island was written, and for many decades before. In fact, the Federal Reserve has been audited since it was created.

Also, the Government Accounting Office in its 2009 CAFR reports for the Federal Government shows the same exact information, listing $11,037,000,000 worth of gold at a fixed (contracted) price of $42.2222 per troy ounce being held as collateral for United States notes. This can also be found on page 61 of the Federal Government’s CAFR.


With a little math, we can calculate that as of 2009 fiscal year, the Federal Reserve was holding 261,498,900 troy ounces of gold as collateral for United States notes. And as the price of this pledged gold is fixed at a statutory value of $42.2222 per troy ounce, that legal value as listed is a bit over $11 billion dollars.

However, if we were to consider that U.S. gold as valued by the market price of $1654 per troy ounce today, August 30, 2012, that gold would be worth $432,519,180,600 dollars. $432.5 billion! Ironically, and perhaps purposefully, the “gold certificates” held by the Federal Reserve System – which are redeemable for the physical gold listed as payable by the Treasury –  these gold certificates have been used in the markets as swaps, using the market value of the physical gold as collateral for other trades. In other words, while the physical gold is force-valued at $42.2222 per troy ounce by statute, the gold certificates representing that actual physical gold in contract can then be used in certificate swaps at the gold’s market value – at $1654 per troy ounce – because the certificates represent the gold itself, not the contracted price! The collateral is being used as collateral!

Thus, the myth that the Federal Reserve and the United States Treasury are somehow at odds with each other or in some strange form of competition is fairly ludicrous. We are talking about legal organized crime here. And no rational criminal would set up a system to impede the implementation of that criminal activity. In fact, it states very clearly here that “all the net earnings shall be paid to the United States as a franchise tax.

Think about it… if “The net earnings derived by the United States from Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, and thenet earnings shall be paid to the United States as a franchise tax, where is the competition?

This makes a causal loop where profits (earnings) of the bank get paid to the Federal government and then those payments get used to increase the physical gold held by the Federal government which creates more swappable gold certificates to collateralize the United States notes which will make even more profits (earnings) for the Federal Reserve which will be paid back again to the United States as a tax and can buy more gold and swap more certificates making more profits and so on and so forth– ad infinity.

Does this sound like a competition or non-cooperation to you?

As far as the Fort Knox myth:

The gold stored in the Depository is in the form of standard mint bars of almost pure gold or coin gold bars resulting from the melting of gold coins. These bars are about the size of an ordinary building brick, but are somewhat smaller. The approximate dimensions are 7 x 3-5/8 x 1-3/4 inches. The fine gold bars contain approximately 400 troy ounces of gold, worth $16,888.00 (based on the statutory price of $42.22 per ounce). The avoirdupois weight of the bars is about 27-1/2 pounds. They are stored in the vault compartments without wrappings. When the bars are handled, great care is exercised to avoid abrasion of the soft metal…”

(Top) “A large amount of the United States’ gold reserves is stored in the vault of the Fort Knox Bullion Depository, one of the institutions under the supervision of the Director of the United States Mint. The remaining gold reserves are held in the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository and the San Francisco Assay Office, also facilities of the United States Mint.”

(Source –>

Read this clearly… The gold of the United States is held in several depositories, Fort Knox being just one of them. It is listed at the same statutory price that is pledged to the Federal Reserve as collateral for United States notes. And there is absolutely no proof whatsoever that this gold is not being hoarded in Fort Knox or one of these other installations. Seriously, what purpose would it serve to lie about this? Why the pervasive myth?

Understanding the connections and financial reporting of that gold and how it is pledged as (collateral), and seeing these audited reports match up gives us a look into the reality of the situation.

And, as for the audits of the gold in Fort Knox, we read:

Appendix D: Continuing Audit of the United States Government-Owned Gold Summary

A continuing audit of the United States gold stock has been underway since 1975 at the direction of the Secretary of the Treasury. When it is completed in 1984, it will have covered all the gold for which Treasury is accountable and will have involved an estimated 26 man years of work. This audit, together with a special audit of the gold stock conducted by the General Accounting Office in 1974 and audits by examiners of the Board of Governors of the Federal Reserve System, has (as of September 30, 1981) covered more than 212.7 million fine troy ounces of gold. This represents over 80 percent of the total amount of United States-owned gold of 264.1 million fine troy ounces. No discrepancies have been found in Treasury records with regard to any gold in permanent storage.

Current Audit Program

On September 23, 1974, members of Congress were invited to inspect the United States gold stock stored in the Ft. Knox bullion depository. Following Congressional inspection, which involved removal of the seals and opening selected vault compartments, a special audit was conducted in September and October 1974. The General Accounting Office (GAO), in cooperation with auditors from the Bureau of the Mint, Bureau of Government Financial Operations (BGFO), United States Customs Service, and the Treasury Department’s Office of Audit conducted an audit of 21 percent of the gold bars stored at Ft. Knox. In the report of the audit, the GAO recommended that consideration be given to performing continuing audits of the gold in custody of the Mint. That recommendation is the basis for the current audit program. On June 3, 1975, Treasury Secretary Simon issued Treasury Department Order No. 234-1 authorizing and directing the Fiscal Assistant Secretary, with the cooperation and assistance of the Director of the Mint, to conduct a continuing audit of United States Government-owned gold for which the Department of the Treasury is accountable.

The Fiscal Assistant Secretary established a Committee for Continuing Audits of United States Government-owned Gold to provide guidelines and general direction to ad hoc gold audit committees. The Committee for Continuing Audits is headed by the Director, Audit Staff of the Treasury’s Bureau of Government Financial Operations (BGFO) and includes the Chief of Internal Audit of the Bureau of the Mint and the Assistant General Auditor of the Federal Reserve Bank of New York…

FOR IMMEDIATE RELEASE September 20. 1974


The inspection by Members of Congress on September 23, 1974 of U.S. gold stocks stored at the Fort Knox (Ky.) Bullion Depository marks a unique departure from the long standing and rigidly enforced policy of absolutely no visitors, Mrs. Mary Brooks, Director of the Mint announced today.

“On April 28, 1943, President Franklin D. Roosevelt inspected the Bullion Depository,” Mrs. Brooks said. “His visit was the one and only time a gold vault was opened for inspection for anyone other than authorized personnel.”

“The Congressional inspection adheres to the new open door policy of the government announced by President Ford. Treasury Secretary William E. Simon issued the invitation to Congressmen to inspect the gold at Fort Knox. By also inviting the press to witness the Congressional inspection, the Mint is clearing away the cobwebs and re-assuring the public that their gold is intact and safe. For the first time photographing is being permitted inside the Depository.”

After the Congressional inspection, the Bullion Depository will once again be closed to visitors.

On September 24, 1974, a special settlement (audit) is scheduled to begin and at its conclusion a report on the audit will be issued.

The audit will be performed by a committee of auditors from the U. S. General Accounting Office (GAO) and the Department of the Treasury. The auditors from the Treasury will be drawn from the Office of the Secretary, the Bureau of Government Financial Operations, the U. S. Customs Service, and the Bureau of the Mint. In addition, the committee will include technicians from the Bureau of the Mint who are trained in assaying and weighing gold bullion.

The monetary gold stock of the United States totals 276.0 million fine troy ounces valued at $11. 7 billion at the official rate of $42.2222 per fine troy ounce, and is stored in various federal depositories (table attached), the largest of which is at Fort Knox. Kentucky. 147. 4 million fine troy ounces, valued at $6.2 billion, is stored in 13 vault compartments at the Fort Knox Bullion Depository.


Walter D. Huddleston. (D) Kentucky

Clair W. Burgener. (R) California
John B. Conlan. (R) Arizona
Philip M. Crane. (R) Illinois
Walter E. Fauntroy. (D) District of Columbia
Angelo D. Roncallo. (R) New York
John H. Rousselot, (R) California
Gene Snyder. (R) Kentucky
Chalmers P. Wylie. (R) Ohio

(Source –>;_ylu=X3oDMTE1NTd2M2gwBHNlYwNzcgRwb3MDMQRjb2xvA2FjMgR2dGlkA1ZJUDAyMl8xODA-/SIG=13la6qcdu/EXP=1346563288/**http%3a//

And then the the U.S. Mint states:

“The United States Bullion Depository Fort Knox, Kentucky:

  • Amount of present gold holdings: 147.3 million ounces.
  • The only gold removed has been very small quantities used to test the purity of gold during regularly scheduled audits. Except for these samples, no gold has been transferred to or from the Depository for many years.
  • The gold is held as an asset of the United States at book value of $42.22 per ounce.
  • The Depository opened in 1937; the first gold was moved to the depository in January that year.
  • Highest gold holdings this century: 649.6 million ounces (December 31, 1941).
  • Size of a standard gold bar: 7 inches x 3 and 5/8 inches x 1 and 3/4 inches.
  • Weight of a standard gold bar: approximately 400 ounces or 27.5 pounds.
  • In the past, the Depository has stored the Declaration of Independence, the U.S. Constitution, the Articles of Confederation, Lincoln’s Gettysburg address, three volumes of the Gutenberg Bible, and Lincoln’s second inaugural address.”

(Source –>


One of the most interesting legends – one that is alive and well today – is that of Ron Paul. Paul wanted to spend many 100’s of millions of taxpayer dollars to audit the gold reserves of the United States, and is one of the key promoters of this “no gold in Fort Knox” myth, with absolutely no proof that this is the case.

But his real claim to fame is his Audit the Fed bill and “End The Fed” book and movement. He has become infamous for using such mythical catch-phrases as “The Federal Reserve is about as Federal as Federal Express”, and “the Federal Reserve has never been audited”. But even worse than that, his followers and fans then parrot the same thing without ever verifying the factual nature of these statements, as shown above. Again, I should know, as I used to be one of the parrots!!!

Before Paul’s current false-hope bill to supposedly “Audit The Fed”, his 2007 bill actually contradicts his own speeches where he states that the “Federal Reserve is not Federal“.

H.R. 2755 in the 110th Congress is entitled: “Federal Reserve Board Abolition Act”, and is solely sponsored by Ron Paul.

In it’s introductory text it states the following:


To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Further into the text, it states:


(a) In General- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.

(b) Repeal of Federal Reserve Act- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed


(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.

(B) TRANSFER TO TREASURY– After satisfying all claims against the Board and any Federal reserve bank which are accepted by the (Federal) Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.

Now, there are only three options here:

Either Ron Paul knows that the Federal Reserve System, the Board, and its banks are already the property of the Treasury of the Federal Government and can be shut down and reabsorbed into that government because of that fact…

Or he had temporary insanity and contradicted his own speeches and writings…

Or he is calling for the assumption by government of a completely separate and totally private corporation that was not created by, regulated by, or owned by the federal government.

If this third option were true, would this mean that Ron Paul could write a similar bill to abolish WalMart, Monsanto, or perhaps your own personal small business to be assumed and liquidated into the Federal Treasury?

Which of these scenarios is more reasonable, logical, and for that matter provable, just by reading this bill? Do you actually think that the Federal Reserve Corporation (or any other federal agency) can exist or act legally within the United States if the Federal Reserve Act is abolished?

Where would the Fed then get its authority to operate as the United States central bank, do you think? I mean, if indeed it is a completely separate rouge entity not controlled by government, it really wouldn’t need the Federal Reserve Act or Congress’ approval in the first place, right?

Note: Anyone who answers yes to that question better go back to paragraph one…

Notice too the fact that Paul lists the “stock” of banks to be “redeemed”. The perception that this stock of the Federal Reserve Bank is owned by some international bankers is again one of those prevalent myths that just wont go away. In fact, when we go to the horses mouth (the current amended Federal Reserve Act), we can see what the stock of the Federal Reserve is and who is forced to invest in it.

Section 5 of the Federal Reserve Act (codified in U.S. CODE 12 Section 287) states:

Section 5. Stock Issues; Increase and Decrease of Capital

1. Amount of Shares; Increase and Decrease of Capital; Surrender and Cancellation of Stock

The capital stock of each Federal reserve bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members. Shares of the capital stock of Federal reserve banks owned by member banks shall not be transferred or hypothecated. When a member bank increases its capital stock or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Federal reserve bank of its district equal to 6 per centum of the said increase, one-half of said subscription to be paid in the manner hereinbefore provided for original subscription, and one-half subject to call of the Board of Governors of the Federal Reserve System. A bank applying for stock in a Federal reserve bank at any time after the organization thereof MUST subscribe for an amount of the capital stock of the Federal reserve bank equal to 6 per centum of the paid-up capital stock and surplus of said applicant bank, paying therefor its par value plus one-half of 1 per centum a month from the period of the last dividend. When a member bank reduces its capital stock or surplus it shall surrender a proportionate amount of its holdings in the capital stock of said Federal Reserve bank. Any member bank which holds capital stock of a Federal Reserve bank in excess of the amount required on the basis of 6 per centum of its paid-up capital stock and surplus shall surrender such excess stock. When a member bank voluntarily liquidates it shall surrender all of its holdings of the capital stock of said Federal Reserve bank and be released from its stock subscription not previously called. In any such case the shares surrendered shall be canceled and the member bank shall receive in payment therefor, under regulations to be prescribed by the Board of Governors of the Federal Reserve System, a sum equal to its cash-paid subscriptions on the shares surrendered and one-half of 1 per centum a month from the period of the last dividend, not to exceed the book value thereof, less any liability of such member bank to the Federal Reserve bank.

[12 USC 287. As amended by act of Aug. 23, 1935 (49 Stat. 713).]

(Source – The Federal Reserve Act online –>


Does this really sound like a bunch of bankers have control of the Federal Reserve to you? Or does it sound like banks are begging to be members of the Federal Reserve System so that they can get all of the benefits of being members of that system so as to create money via the federal reserve system? Seriously, banks can’t fractionally create money without being members of the Federal Reserve. So no usurious United States bank is going to voluntarily leave the Fed.

Does it sound like banks have a choice as to whether they want to be stock-holders to you, that is, if they want to be members and get Fed benefits?

This legend of the Federal Reserve is out of control!

Perhaps the next time you hold up a sign or plaster a bumper sticker across your automobile that reads “End The Fed”, you’ll actually think about what it is you are demanding. Are you trying to close down a private corporation, or are you trying to demand that government end its own government-owned corporation through a vote of Congress? If you believe the former, then why not hold up signs to government saying end the Monsanto or end the Walmart?


Now, you may be curious about the title of this rant, “Today’s Creatures From Jekyll Island”.

So let’s talk about who exactly these “creatures” are today and how they’ve changed since yesterday.

Again, the concept that the drafting of these words that would eventually be utilized by congress to create the Federal Reserve Act and the Federal Reserve itself through congressional committee was a rare or singular occurrence in the history of legislative actions is the biggest myth that needs to be dispelled here.

Congressmen, in fact, very seldom write their own legislation. Though the misconception is that this is the job that we vote them into office for, nothing could be farther from the truth. As you saw above, half of the time they don’t even bother to show up for voting session!

These are corporate yes-men. They are propped up into office for one reason… they have no spine. They vote as they are supposed to along party lines, without reading the bills half the time, while putting on a patriotic show every once in a while so that the “truth” movement can pass the video along to other “truthers” and make themselves feel better about exposing the truth.

So who actually drafts most of the important bills in Congress?

I’d like you to meet ALEC.

The American Legislative Exchange Council (ALEC) is the ultimate ultra-lobbying group, consisting of a membership roster of 100’s of major corporations and the thousands of legislators that they wine and dine before they send them back to their state or federal legislatures with ALEC-composed bills in hand. In other words, ALEC ghost-writes the bills that are put on the congress floor, just as the Federal Reserve Act was ghost-written at Jekyll Island. And the congressmen then alter and amend those bills and send them to conference just like they did in 1913.

This is not at all uncommon. In fact, it is the norm.

Hundreds of what are called ALEC Model Legislation Bills are passed each year in congress, and an unknown number are passed on the local and State level. These bills are written by corporations, amended and earmarked by congress, and signed by whichever party president, governor, or county mayor is in office at the time. It isn’t just a rumor that congress doesn’t read the bills they sign. The truth is, they don’t need to. They are just there to sign the dotted lines and enjoy the perks of their ALEC membership, add a few earmarks onto the bills, and then enjoy the benefits they’ll receive in retirement for their cooperation and for being good little minions of the shell-game.

And so, these are the creatures that both inhabit government and professionally organize outside of it, in the open, while writing the nation’s legislation without needing the privacy of an island any more.

While there are certainly other similar groups out there, ALEC is certainly the most prevalent.

Here’s a great satire on ALEC:

For more information on ALEC, visit this website:

Warning: As with many mainstream sites and watchdog groups out there, I urge caution and verification. While much of the information on this site is good, the Center for Media and Democracy has some troubling aspects to it… like the fact that it promotes democracy instead of a republic!

Recently, Jan Irvin interviewed one of its representatives, exposing its less public side, here:

And finally, I did an interview on ALEC and private prisons with Joyce Riley on the Power Hour, one of my better interviews. Alec is one of the major supporters of and sponsor of the privatization of prisons and everything else in government. Interview here:

In the end, the creatures are all around us. The only difference seems to be the blatant openness in which they operate in today’s world. They are organized into non-profit groups, for the benefit of their for-profit corporations. They are members of countless private associations (including the political parties), and they follow the rules of these associations in the legislature while our politicians lend their allegiance to the parties, not the people. Virtually nothing in government is done in the traditional way that Americans still believe it is, and still the “truther” movement seems to always look to now century old history and quotations for an explanation of what is the reality of today – which is a completely different animal in both technological prowess and the amended law books that read nothing like the rules of yesteryear.

And today, virtually all relevant statutes that are being rubber-stamped and implemented out of our local, State, and federal governments are being written by these treasonous creatures, outside of government halls, by men who no longer need to meet in secrecy on some secluded island – because treason and crime are now commonplace, publicly accepted and anticipated, and legal!

And the people do nothing but change the channel…


–Clint Richardson (
–Saturday, September 1st, 2012

Ron Paul Is Not A Sell Out?

“In politics, nothing happens by accident.
If it happens, you can bet it was planned that way.”

–Franklin Delano Roosevelt, Mitt Romeny’s 8th cousin, twice removed–

I’ve received several notifications that Rand Paul, Ron Paul’s son, is officially lending his “support” to Mitt Romney and will be campaigning for the Romney bid for the presidency. Of course, this came as no surprise to me or to those others who’ve been persecuted for our expose’s on presidential candidate Ron Paul (and family). Many of these notes state that Ron Paul himself has or will “sell out” the people who supported him via this clandestine nepotism.

But can you sell out if you never bought in?

Can you win if you never plan to?

Over the last year or so, billions of dollars have been pumped into the Democratic and Republican Party nomination process for President of the United States of America. This process is for some reason considered normal to most Americans. And yet, let’s look at a few facts:

1) The Republican and Democratic Parties are 100% private non-governmental associations.

2) The winner of these private “elections” have absolutely nothing to do with the lawful and constitutional election process that takes place once every four years in November.

3) The men or women who are chosen to actually run for president represent the interests of the party, not the people of the United States.

4) The outcome of these private association elections is pre-determined. Men are primed for these positions well in advance. Romney is no exception. This is not illegal, as the election is for a private, non-governmental corporation.

5) Mitt Romney, John Huntsman, Bush, Cheney, Obama, Biden, Sarah Palin, John McCain, and all other past presidents are cousins. These private associations serve no other purpose than to place bloodline family members into the presidency, and to ensure that the right/left candidates are cousins – so as to ensure the continuity of blood.


6) Mitt Romney has already announced over 20 duel-Israeli citizens for his cabinet – many of the same men and women from the Bush Cabinet. (Of course, Romney and Bush are 10th cousins, only twice removed, so naturally they are just keeping it in the family tradition.)


7) Obama is no exception:

So why was Ron Paul running for the Republican private corporation (Party) nomination and not as a free and independent man?

A Libertarian and a Republican are not the same thing, are they?

Perhaps this may help explain things…

For many months I and others have tried in vein to show the inevitable outcome of the Republican nomination. For many years, several former Ron Paul regional campaign managers and myself have been asking: What happened to the over $40 million from the 2008 Ron Paul campaign? I’ve exposed the fact that Ron Paul’s “Audit The Fed Bill” is a red herring, which would not change anything about the already existing audit of the Fed (the CAFR). And for all of this time I’ve been exposing Paul’s lack of coverage of the CAFR accounting system of government, and that the Federal Reserve is now and always has been audited…

And for this I’ve gotten a majority response of irrationality and negativity despite the verifiable facts presented. And even as millions upon millions were given to the Ron Paul “campaign” this year by well-intentioned but naive people, I received virtually no support for my own efforts to run as an independent man for president, not a private corporation (party) shill, and the people who could actually fix this country are either destitute or in jail, with no one standing up for their freedom.

I’m here to say today to those who claim to be awake, that you need to realize your disposition – you are in a dream within a dream…

Ron Paul is a Republican Party member. His family’s nepotistic loyalty to this non-governmental private association over the people of America is apparent through this action of his son’s official support for Mitt Romney – a fake enemy yesterday, a real friend today. Dr. Paul will follow with his concession and his support, like a good party member. No amount of words; no amount of anti-war speeches; no amount of anti-banking or anti-FED propaganda; and no amount of anti-Romney/Bush/Obama rhetoric and speeches will change this fact.

Break free… the party system is the death of the American election process. Electing a party member equals electing an entire private, non-governmental association as president. It means electing a corporation, not a man. And AT BEST it means that only party members are represented, leaving at least 50% of the people and their children without any representation at all.

Check out these family trees, and please rethink your vote for the same old bloodline cousins of the Queen of England (now supported by Rand Paul) this year:

-=- The Hutchinson Family Chart -=-

-=- The Howland Family Chart – =-

(Note: the Mormon founder and “Prophet”
Joseph Smith is also Romney’s bloodline cousin)

“Insanity: doing the same thing over and over again
and expecting different results.”

“We cannot solve our problems with
the same thinking we used when we created them.”

–Albert Einstein–


–Clint Richardson ( (
–Saturday, June 9th, 2012

U.S. Government In Debt To Itself

In a rare show of slightly skewed honesty, the folks at CNBC came out with a report today highlighting the United States’ debt and who actually owns that debt.


Though written in the guise of their typical “10 Best Cities To Get A Job” or “10 Most Beautiful Beaches In The World” format, finally a little bit of truth is coming out of the mainstream about government finance!

Today’s episode: “The 10 Biggest Holders Of  U.S. Debt”.

Listed as the #1 holder of government debt, just as Walter Burien of has been proclaiming for 20 years… The U.S. Government! Here listed as:

1. Federal Reserve and Intragovernmental Holdings

Total U.S. debt holdings: $6.328 trillion

(From the article)

“That’s right, the biggest single holder of U.S. government debt is the Federal Reserve system. The Fed’s system of banks and other U.S. intragovernmental holdings accounted for a stunning $6.328 trillion in U.S. Treasury debt in Spetember 2011 (the most recent number available). The amount is an all-time high as the Federal Reserve continues to expand its balance sheet, partially to purchase U.S. government debt securities.

“About a decade ago, the total government holdings were “only” $2.5 trillion.”

So, the U.S. Government is in debt primarily to… itself?

Hmmm. As Mr. Burien has been trying to bring forward into the comprehension of the American and international people for many years, this is the sobering truth. And as many people are just begining to wake up to Walter Burien’s tireless work on exposing the Comprehensive Annual Financial Report (CAFR) system of general accounting for all corporations, including the over 230,000 individual governments listed within the April 1, 2000 government census report, this fact is quite verifiable – as the CAFR is the audit of government.

But wait, can a government really be in debt to itself?

Well, can you? Can you tell the IRS, for instance, that you borrowed money from your checking account and placed it into your savings account and therefore have no money available to pay the IRS because your checking account balance is at a negative balance because you owe your savings account money from your checking account (while gaining interest on that savings account in the mean time)?

No, you can’t…

But the question is, can government be in debt to itself?

Of course it can. For government makes its own rules. That’s the golden rule after all… He who holds the gold, makes the rules. And in this case, those who make the rules certainly hold most of the gold.

In fact, as shown in the 2010 CAFR for the Federal Reserve (fiscal year ending December 31, 2009), over $47 billion dollars was collected from the American people that year, every cent of which was placed into the accounts of the United States Treasury. And over the life of the Federal Reserve, over $687.6 billion dollars has been paid by the Federal Reserve to the U.S. Treasury in the form of “Interest On Federal Reserve Notes”. And would you have ever guessed that the U.S. Treasury is holding over 261 million troy ounces of gold – which is listed as “collateral” for Federal Reserve Notes in the Federal reserve CAFR?

You can only find this type of information in the audit of government – the Comprehensive Annual Financial Report.

I mention this mostly to dispel the popular fallacy that the Federal Reserve is somehow an autonomous agency without any ties to the Federal Government. This simply is not true. It is federal law that all government agencies file a CAFR each year, of which the Federal Reserve has been filing since this laws’ inception. The Audit of the Federal Reserve System can be found here:

Audit (CAFR) of the Federal Reserve Board Of Governors – Link:

Audit (CAFR) of each individual Federal Reserve Branch Bank – Link:

The term intragovernmental is a term used to describe the investment fund structure of all of these over 230,000 government municipal corporation (city/county), state, and federal corporate governments. As a standard of practice, these local, county, and district governments place their taxpayer money into what is called the State Treasurer’s Investment Funds (commingled funds), which are generally managed by the State Treasurer as trustee of those funds. The average daily balance of those funds is then invested into the bonded indebtedness of the United States governmental structure, called the U.S. Debt. These funds generally invest into such things as Federal securities, commercial paper, national/international banking institutions, municipal and federal bonds and warrants, and other forms of indebtedness, gaining interest and dividends from those investments. States hold these funds with the permission of Federal US CODE. And one government makes a profit from another government via interest payments on these bonds – which is paid via taxation on the people.

For more information on these state “commingled funds”, please see my video here explaining the over $64 billion California State Treasurers Investment Fund:

And of course, it is perfectly legal to write off the majority of this debt at any time the government sees fit, according to US CODE which houses the amended FEDERAL RESERVE ACT.

Also, we can’t forget the humongous $2.6 trillion Social Security Trust Fund investments into this U.S. debt either.

See more on the Social Security Trust Funds here:


But let’s take a look at some of the other holders of U.S. debt…

3. Other Investors/Savings Bonds

U.S. debt holdings $1.107 trillion

(From the article)

“With the most recent numbers from June 2011, this extremely diverse group includes individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts, estates, savings bonds, corporate and noncorporate businesses for a total of $1.107 trillion.

“Although the level of debt held in U.S. savings bonds has remained basically constant since 2000, the broad category of “other” investors has nearly quadrupled since reaching a four-year low in December 2007.”

Note here that this group includes “government -sponsored enterprises”. Of course, this report doesn’t tell you that the vast majority of investment wealth that sits in these other funds like “individuals (corporate persons), brokers and dealers, bank personal trusts, and corporate and noncorporate businesses” is funded by government taxpayer money.

And the corporations/businesses that are listed here, when we understand that collectively the over 230,000 governments hold together majority stock ownership in all major corporations in the world through pension and other trust fund investment and are the main investors in savings bonds and other debt, this “category” is a very deceiving look into who actually holds and more importantly controls these savings bonds and investors through “corporate governance”.

5. Pension Funds

U.S. debt holdings: $842.2 billion

(From the article)

“Pension funds control large amounts of money, reserved for personal retirements, and thus are obligated to make relatively safe investments. This group, which includes private and local government pension funds, holds $842.2 billion in U.S. debt. The private pension fund category also includes U.S. Treasury securities held by the Federal Employees Retirement System Thrift Savings Plan G Fund.”

And so here again, because pension funds are mostly government controlled, and because the private/publicly traded corporations that have pension funds are held by government stock investment as their majority stake holders and vote through proxy shareholder voting rights on all that happens within these “private” and “public” corporations, government once again is in reality the holder of its own debt.

See “The Great Pension Fund Hoax” for a complete breakdown of the pension fund system, here:

6. Mutual Funds

U.S. debt holdings: $653.5 billion

(From the article)

“According to the Federal Reserve, mutual funds hold the sixth-largest amount of U.S. debt compared to any other group, although mutual fund holdings have diminished by more than $105 billion since December 2008. Including money market funds, mutual funds and closed-end funds, this group of investments managed about $653.5 billion in U.S. Treasury securities as of June 2011, which are the most recent numbers available.”

And here again, as with U.S. Savings Bonds, we find that the main holder of investments in mutual funds is indeed the government pension fund system listed above. Funds like Blackrock, Vanguard, and State  Street Corporation are always in the top holdings of government, especially in the pension system. (See: The Great Pension Fund Hoax for sources).

7. State and Local Governments

U.S. debt holdings: $484.4 billion

(From the article)

“U.S. state and local governments have nearly a half-trillion dollars invested in American debt, according to the Federal Reserve. The level of investment has remained stable since 2006, moving within the range of $484 billion and $576 billion. The current debt holdings, however, represent the lowest aggregate level for state and local governments since December 2005, when they stood at $481.4 billion.”

To reenforce the fact that government is the main share holders of U.S. Debt securities, CNBC lists State and Local governments to the list. Again, through the commingled funds discussed earlier and as listed within all of the CAFR reports of local and state governments, we see that these government/municipal corporations are indeed the holder of vast amounts of public debt.

And remember, government charges the taxpayers with the responsibility for this debt, while it uses that wealth to purchase everything in sight! So government is in truth collecting interest and capital gains (tax free, of course) as well as dividends on the money that it borrows… from itself!!! The people pay their taxes in order to pay this interest, which is in reality a “profit” for the so-called “non-profit” government. It’s really a win-win situation for government investment funds.

9. Depository Institutions

U.S. debt holdings: $284.5 billion

(From the article)

“As of June 2011 (the most recent numbers available), the Federal Reserve Board of Governors lists depository institutions as holding about $284.5 billion in U.S. debt.

“This group includes commercial banks, savings banks and credit unions. In 2011, its holdings more than tripled from the 2008 low of $105 billion. Between June and September 2011, holdings for depository institutions fell by nearly $44 billion.”

10. Insurance Companies

U.S. debt holdings: $250.1 billion

(From the article)

“According to the Federal Reserve Board of Governors, insurance companies hold $250.1 billion in Treasury securities. This group includes property-casualty and life insurance firms.”

Once again CNBC reports that – according to the Federal Reserve System – banks, financial institutions and insurance companies are a large shareholder of U.S. government debt instruments and securities.

But once again we must realize that the main stockholder of these publicly traded banks and insurance corporations is in fact government itself, through its pension fund and other trust and investment funds.

For example, as of March 31, 2010, just the “New York State And Local Retirement System” pension fund held the following shares in banks and investment corporations:

Company                                      Shares of Stock           Market Value

Morgan Stanley                              4,301,770                   97,951,303
Goldman Sachs Group Inc/The   1,961,585                207,967,242
Goldman Sachs Ssga Em Mrkts  8,934,287                102,501,423
Wells Fargo & Company             16,257,120                 231,501,389
Bank of America Corp                 23,819,237                 162,447,196
Citigroup Inc                                 18,601,505                  47,061,808
Citigroup Inc Depository Shares    199,368                    3,046,343
American Express Company       4,249,664                  57,922,920
American Financial Group Inc       492,854                    7,910,307
Visa Inc – Class A                              390,400                 21,706,240
Mastercard Inc – Class A                 306,830                 51,387,888
Zions BanCorp                                   558,029                   5,485,425
Fifth Third Bancorp                       2,678,672                    7,821,722
Fannie Mae                                             6,000                           4,200
Freddie Mac                                            6,100                            4,636
Hartford Financ Serv Grp Inc      1,099,070                   8,627,700
Hudson City Bancorp Inc             2,946,851                 34,448,688
Western Union Company             2,656,147                  33,387,768
Siemens AG                                         757,252                  43,473,647
Experian Group Ltd                        1,034,174                    6,474,091
Equifax Inc                                           626,161                  15,309,636
Equinix Inc                                             13,800                       774,870
State Street Corp                             1,867,120                  57,469,954
People’s United Financial Inc      1,234,207                  22,178,700
Fidelity Nat Financial Inc – Cls A  839,867                  16,385,805
Fidelity Nat Info Services Inc          657,748                   11,971,014
Westpac Banking Corp                     298,305                   3,956,638
Axis Bank Ltd                                      191,458                     1,565,891
Discover Financial Services          1,874,548                  11,828,398
Softbank Corp                                 3,664,300                 46,596,748
Solera Holdings Inc                           556,652                  13,793,837
Signature Bank                                   210,333                    5,937,701
HSBC Holdings plc                        8,349,382                  47,271,967
HSBC Holdings plc                        1,389,200                    7,645,081
HSBC Holdings plc – Rights            893,766                   1,806,322
Royal Bank of Canada                       169,300                   4,949,214
Royal Bank of Scotland                 6,330,271                   2,223,006
Royal Bank of Scotland, Rights   6,427,941                                 -0-
Allied Irish Banks                            1,216,447                      969,046
National Australia Bank                1,406,252                 19,638,984
Aust & New Zealand Bank Group   701,045                    7,671,606
Commonwealth Bank of Australia    19,794                       477,637
National Bank of Canada                  161,300                    5,161,497
National Bank of Greece                  102,386                     1,551,051
Deutsche Bank AG – ADR                    9,800                      398,370
Deutsche Bank AG – Registered     654,969                26,888,105
Credit Suisse Group                        1,174,244                 35,793,762
Credit Suisse Group – Spons ADR         300                           9,147
Bank Montreal Quebec                     428,291                  11,230,235
Bank Mutual Corp                               94,860                       859,432
Bank of Baroda                                   542,734                   2,506,942
Bank of Communications             1,376,000                       955,210
Bank of Cyprus Ltd                              51,909                        157,826
Bank of East Asia                           2,605,019                    5,028,527
Bank of Hawaii Corp                         192,499                    6,348,617
Bank of India                                      934,270                   4,040,186
Bank of New York Mellon Corp  4,420,585                124,881,526
Credit Agricole S.A.                            311,625                    3,439,044
Credit Saison Company                       14,918                        144,241
Bank of Nova Scotia                          149,900                     3,701,779
First Bancorp Puerto Rico                143,010                       609,223
Bank Yokohama Ltd Japan Ord     903,100                    3,821,968
Hiroshima Bank Ltd/The                   13,000                         49,357
Bank of Kyoto Ltd/The                       73,000                       614,924
Osaka Gas Company Ltd               2,035,146                   6,346,309
Bank of China Ltd – H                   8,527,000                   2,827,663
Ind Comm Bank of China Ltd      4,464,000                   2,321,280
China Citic Bank – H                        484,000                       182,983
China Construction Bank – H      4,331,000                   2,458,890
China Merchants Bank – H             283,000                      494,428
Shizuoka Bank                                    183,000                    1,637,866
Shinsei Bank Ltd                             1,450,154                     1,453,531
Chiba Bank                                          176,500                       866,685
Cheung Kong (Holdings)              3,376,000                  29,077,161
Hang Seng Bank Ltd                         328,500                    3,308,313
Hanmi Financial Corp                        55,300                           71,890
Mitsubishi UFJ Financial Grp     6,409,847                 30,890,829
Mitsubishi UFJ Lease & Fin Co Ltd    1,600                          33,370
Bangkok Bank                                    554,400                      1,172,424
Bangkok Bank Public Co Ltd          446,200                         937,316
Siam Comm Bank Public Co Ltd    376,900                         579,192
Malayan Banking Berhad                802,525                         849,745
Malayan Banking Berhad – Rights  361,136                                 -0-
Blackrock Inc                                           7,135                         927,835
Blackstone Group Lp/The             1,289,215                     9,346,809
Zurich Financial Services                      9,387                     1,486,829
Aetna Inc                                           1,881,924                   45,787,211
Cincinnati Financial Corp                 736,150                   16,835,751
First American Corp                           496,770                  13,169,373
First Bancorp Puerto Rico                 143,010                       609,223
First Cash Financial Services Inc      48,800                       728,096
First Commonwealth Finan Corp   394,940                     3,503,118
First Financial – 144A GDR                 48,113                       444,083
First Financial Bancorp                        62,100                       591,813
First Financial Bankshares Inc           54,475                    2,624,061
First Financial Holding Company   978,455                        451,546
First Financial Holdings Inc               23,950                       183,218
First Horizon National Corp              766,191                  8,228,888
First Mercury Financial Corp            213,900                  3,088,716
First Midwest Bancorp Inc                280,825                   2,412,287
First Niagara Financial Group Inc   414,400                   4,516,960
First Potomac Realty Trust                  75,284                      553,337
First Quantum Minerals Ltd                 6,400                      180,583
First Solar Inc                                        39,400                   5,228,380
Discover Financial Services            1,874,548                 11,828,398

–For a closer look at this fund, go here:


And this is just one single pension fund! There are thousands of these investment funds out there, all controlled and used collectively to control the financial markets of the world.

Do you still believe that government is a non-profit public entity, or are you starting to understand that government is in fact organized crime to the extreme?

And that leads us to the other listed holders of United States debt.

Here, CNBC lists its most deceiving holder of debt:

2. China

U.S. debt holdings: $1.132 trillion

(From the article)

The largest foreign holder of U.S. Treasury securities, China currently has $1.132 trillion in American debt, although it is down from all time highs of $1.173 trillion in July 2011…

4. Japan

U.S. debt holdings: $1.038 trillion

(From the article)

“One of the U.S.’s largest trade partners, Japan is also one of the U.S.’s largest debt holders, currently owning $1.038 trillion in Treasury securities.”

Now, the biggest and most often portrayed fallacy in the mainstream media is that China holds U.S. Debt. But is this a true statement?

The answer to this question must be obtained by first asking a different question…

When CNBC refers to the abstract name of “China” as the 2nd largest holder of U.S. debt, is it referring to the government of China or to the geographical location of China? Ah… this is a very clever trick used to fool taxpayers into thinking that the country and government of China holds American debt. But here is the reality of the situation:

Over many years, American corporations (majority held by government investment in their stock) have been moving to China and setting up their manufacturing and investment corporations in that country, with the absolute permission of the Chinese government. With this build-up came trillions of dollars of investment capital from the U.S. government, building up China’s infrastructure to that of a 1st world country. Walter Burien has recently estimated those investments to be over $14 trillion in value, meaning that the well-being of China’s global corporate manufacturing base is solely dependent on American and European investment capital.

In short, China houses American corporations, which sell their product back to America. And without the pollution, health, and employment protections and regulations that are imposed upon these American corporations while operating in America, they are able to pay pennies to the Chinese workers and pollute the country with very few regulatory infringements.

If China were to suddenly threaten the United States in any way, American corporations would pull out of China to sufficiently destroy the economic prosperity that American corporations have allowed. In short, these $14 trillion in investments into China’s infrastructure and marketplace makes China all but a colony of the American/European military and industrial manufacturing complex. And the thought of “China” doing anything to change this, including demanding what little U.S. debt it might actually own, is patently ridiculous.

The U.S. debt that is listed here as held by “China” is held by the investment structure that has been built up by American interests.

So who owns the corporations that are taking on American debt securities in these two countries?

Let’s go back to the New York Pension Fund and see what is happening here:

Company                                      Shares of Stock           Market Value

Banks and Investments

Bank Yokohama Ltd Japan Ord     903,100                    3,821,968
Hiroshima Bank Ltd/The                   13,000                         49,357
Bank of Kyoto Ltd/The                       73,000                       614,924
Osaka Gas Company Ltd               2,035,146                   6,346,309
Bank of China Ltd – H                   8,527,000                   2,827,663
Ind Comm Bank of China Ltd      4,464,000                   2,321,280
China Citic Bank – H                        484,000                       182,983
China Construction Bank – H      4,331,000                   2,458,890
China Merchants Bank – H             283,000                      494,428
Shizuoka Bank                                    183,000                    1,637,866
Shinsei Bank Ltd                             1,450,154                     1,453,531
Chiba Bank                                          176,500                       866,685
Cheung Kong (Holdings)              3,376,000                  29,077,161
Hang Seng Bank Ltd                         328,500                    3,308,313
Hanmi Financial Corp                        55,300                           71,890
Mitsubishi UFJ Financial Grp     6,409,847                 30,890,829


Tokyo Electric Power Company         359,150                    8,945,115
Tokyo Electron Ltd                               363,650                  13,401,701
Tokyo Gas Company                         2,375,746                    8,298,394
China Petroleum Chemical             3,982,000                   2,548,480
China Power Int Dvlp Ltd               6,012,000                     1,194,643
China Coal Energy Company             416,000                       307,035
China Oilfield Services                        212,000                        167,685
China Shenhua Energy Co                  341,000                       768,240
Chiyoda Chemical Engineering         935,400                    4,962,535
Chubu Electric Power Co Inc              241,917                     5,314,973
Shanghai Electric Grp Co Ltd      12,052,000                    3,467,866
Shinsei Bank Ltd                               1,450,154                      1,453,531
Nissan Chemical Industries Ltd          41,500                        344,958
China Coal Energy Company – H     416,000                        307,035
Hong Kong & China Gas Co Ltd    5,485,330                     8,649,127
Hong Kong Electric Holds Ltd      3,200,500                   18,996,516
Mitsubishi Electric Corp                 3,036,548                   13,557,939
Mitsubishi Gas Chemical CO Inc          4,000                          17,009


Toyota Motor Company                  1,764,412                    55,735,197
Toyota Industries Corp                       177,163                      3,757,786
Toyota Tsusho Corp                           143,200                       1,371,542
Honda Motor – ADR                         188,000                     4,455,600
Honda Motor Company                 1,297,926                    30,421,167
Mazda Motor Corp                             715,000                       1,187,203
Nissan Motors Japanese Ord       4,282,864                     15,176,697
Mitsubishi Corp                                  859,769                     11,185,615
Mitsubishi Motors Corp                    271,000                         342,969
Hyundai Motor Company Ltd           30,860                      1,238,193
Yamaha Corp                                         42,813                         414,823
Yamaha Motor Company Ltd          184,000                     1,630,050


Motorola Inc                                          9,547,354             40,385,307
Qwest Communications Int Inc         4,735,734              16,196,210
Vodafone Group plc – Spons ADR        109,595                1,909,145
Vodafone Group plc New                 56,080,988            98,670,972
Samsung Electronics Company Ltd          4,489               1,843,305
Ericsson LM Tele Co – Spons ADR       126,820               1,025,974
Ericsson LM Tele Co – B Shares         7,402,571            60,439,750
Nokia Oyj                                               2,005,360             23,643,146
Nokia Oyj Corp – Sponsored ADR         151,200               1,764,504

These are some of the corporations that are holding U.S. Debt. And so again, we are seeing that the U.S. government is essentially borrowing money from its own investment held corporations, nationalizing that debt onto the backs of the American people, and using the profits of the bonded indebtedness of the people not for the people, but to further government ownership and control over the world corporate structure. And then it demonizes China and assigns a false power onto its government for “holding U.S. debt”.

And the people of America eat it up, because they can never imagine that they themselves are the problem; that their ignorance of their government and their consent to it is really what’s wrong with the world. America’s creed: blame China. Blame Iran, Iraq, Afghanistan. Watch out for Russia… But just disregard our own actions.

So thanks CNBC… you almost told the truth today! Fortunately there are anomalies like Walter Burien and myself to read between the lines and translate what you fail to mention.

But then, government owns you to, so what should we expect?


Walt Disney Company/The             7,975,404               144,833,337
News Corp – Class A                          7,746,798                 51,283,803
Time Warner Cable Inc                     1,476,825                 36,625,251
Time Warner Inc                               4,885,448                 94,289,152
CBS Corp – Class B                            3,518,760                 13,512,038
General Electric Company              39,551,471              399,865,372
Sony Corp                                                811,290                 16,411,435
Sony Financial Holdings Inc                         24                       63,906
Vivendi Universal                               2,414,568               63,876,002
Viacom Inc – Class B                         2,363,387                41,075,666
Discovery Commun Inc – Series A       79,244                  1,269,489
Discovery Commun Inc – Series C       78,831                   1,154,874
Marvel Entertainment Inc                    175,800                 4,667,490
Comcast Corp – Class A                   10,473,672             142,860,886
Comcast Corp – Special Class A            20,259                     260,733
DreamWorks Anim SKG Inc – A        285,700                  6,182,548
DISH Network Corp – Class A             475,200                 5,279,472
DIRECTV Group Inc/The                 2,048,939               46,695,320


And so in the end, of the over $15 trillion of U.S. debt that this report refers to, we can rest assured that approximately 70-80% of that debt is self-funded by the United States government, and the rest by government held investment corporations.

Oh my, how will we ever pay ourselves?

Answer: We wont.

But as long as we the people do nothing, the government will continue to raise our taxes and destroy any chance of recovery for the American people from this tyrannical corporation that we falsely call “government” and its blatant usury. And we will continue to pay the national debt plus interest simply to support the governments investment fund scheme, and continue the hostile corporate takeover of this little globe called Earth.

The government owned media will continue to tell us that this thing is “too big to fail”, as if that is a good excuse to ignore the problem and continue to justify undeclared wars and continue into a fascist global United Nations government where the rights of the individual are trumped by the rights of the collective.

The ball is in our court.

We are arriving at the point of no return.


–Clint Richardson (
–Thursday, February 2nd, 2012

National “Ask Ron Paul About The CAFR” Month

A gentleman named Richard was kind enough to write and tell me his experiences about trying to bring exposure to the Comprehensive Annual Financial Report (CAFR). After repeatedly attempting to get the media and all major political campaigns to bring this information to the light of the people, his efforts were of course stepped upon.

Only if enough of the people (that’s you) demand that the Ron Paul Campaign For Liberty and other presidential campaigns start speaking of and divulging the government CAFR, including the Federal Reserve CAFR (the “audit” of the Fed) – this cooperative and complete cover-up will continue for all time.

As another reader commented…
“If you are going to attend any Ron Paul speaking engagements, I suggest you should print off a copy of the latest Federal Reserve Annual Financial Report and bring it with you. Every time Ron Paul mentiones the Federal Reserve, you hold the report up over your head at arms length for 5 seconds to show him you know the Fed is already being audited. I’m pretty sure after the first speech of this happening, he will come to realize that people elsewhere are learning the truth as well. It will also show you how many others in the audience know the truth. If you get to shake his hand, another thing to do would be to ask him for his autograph. If he agrees, ask him to autograph the cover of the Annual Financial Report.”  –John
I am posting Richard’s letter here:


I just wanted to share with you my experience trying to get the word out regarding the CAFR scam.  After I had been introduced to the idea by Walter Burien, I saw your excellent movie (the corporation nation, part 1), and that explained it very well.  I am still studying the whole thing, and connecting it to many other parts of the puzzle I have been working on since about 1965.

But I understood enough to see what an effect it could have on society if this money were exposed, such as no more excuse for taxes, and no more municipalities using the excuse of being broke to cut services and raise fees, etc.  So I started taking the time to call media outlets all over the country.  This included TV, radio, newspapers, magazines, etc.  It was a very interesting experience.  In almost every case, the lower level employees that had no authority over anything were interested to learn more.  But as soon as it got to any minor managerial level, the investigation of what I presented was stopped immediately and communication was cut off.

My theory is that so many aspects of this go even deeper than we imagine, and all these media channels have already been threatened that they will cease to exist or worse, if they mention certain things, and CAFR is one of those. I think they all value their salaries, and will not even think of risking everything just to be honorable and inform the public. They are more like actors, just writing and speaking about what they are told is acceptable.

Then I started calling political offices all over the country, perhaps 100 of them or so, to see what their attitude would be.  It was pretty much the same. Some seemed interested at first, but soon cut off communication. It was pretty obvious that virtually all of them, regardless of party or political point of view, had been threatened or somehow scared into staying within certain limits.

As a last effort I called Ron Paul’s office, not once but perhaps 10 or 15 times. Many of the politicians are doing the excuse that if you are outside their district they will not even talk to you, yet they vote on bills that effect everyone. Complete hypocrisy in that policy. However, Ron’s office did not do that, and was very polite and the people there actually talked to me. That’s why I called them multiple times.

Many staffers were interested and may have watched the movie. However I was not able to get Ron himself to do anything with it publicly. I think he is a good man and honorable, and not under the direction of our rulers, but I also believe that getting assassinated is not his goal, and he may realize that could easily be the result of trying to bring up this topic. I have great appreciation for Ron for working on things like abolishing the fake “federal reserve,” the IRS, the income tax, withdrawing from criminal organizations like the UN, many unconstitutional treaties that are very bad for us, pushing strongly for health freedom which is in great danger right now, and just generally wanting to take government all the way back to its legitimate limits, eliminating much of what it does now, and he is the only major candidate even talking about these things. He has a very consistent and strong voting record for individual freedom, which I totally support. But I believe he knows about CAFR and knows also that his career would be over as well as his ability to continue his work, if he mentions CAFR.

I am still looking at other ways to expose CAFR so widely and quickly that it could not be stopped, something practical that could really accomplish this in our real life situation we are facing now. I am sure others are trying to figure that one out as well.  I am at least bringing it to the attention of others within my circles and it has been the first exposure for everyone I have mentioned it to. Thanks for helping me understand how it works, and especially for the detailed reports on specific states and cities, the examples are very helpful.  –Richard


–Clint Richardson(
–Sunday, November 6th, 2011