~ Who Will Take Actions and What Actions Can They Take? ~
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“No taxation without representation.”
~ Headline accompanying 1768 publication of Lord Camden’s “Speech on the Declaratory Bill of the Sovereignty of Great Britain over the Colonies” given in the British parliament. “[M]any colonists believed that as they were not represented in the distant British parliament, any taxes it imposed on the colonists (such as the Stamp Act and the Townshend Acts) were unconstitutional, and were a denial of the colonists’ rights as Englishmen.” [Source: Wikipedia]
“No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.”
~Article I, Section 9, Clause 7, U.S. Constitution
By Catherine Austin Fitts and Carolyn A. Betts, Esq.
Table of Contents
I. Introduction and Purpose
NOTE: For ease of reference, we have cited (in endnotes and links) many pertinent Solari Report articles and interviews as well as outside sources for some of the key parts of this article. It was not our intention to have this discussion repeat all the evidence that has already been documented elsewhere; rather, it is intended to build on such evidence. Much of the Solari Report content is available only to Solari Report subscribers, but given the importance of the taxation topic, we are making this article public. Note, however, that many citations are to historic subscriber-only articles for which a paid subscription is required. We hope that some readers may decide to purchase subscriptions in order to deepen their knowledge of the topics covered herein. Subscribers may wish to search the Solari Report site, including the Solari Library, for more detailed articles, interviews, and videos on the various subjects covered in this article.
|A. First, a Story
As many longtime Solari subscribers know, in early 2006, Catherine’s company, Hamilton Securities, settled long-standing litigation with the U.S. federal government and its professional “whistleblower.” Upon receipt of settlement funds, payments and bonuses were sent to the attorneys and team members who had helped Catherine endure and win the vast majority of what began as 12 tracks of litigation and 18 audits and investigations. Catherine also repaid loans from a family member and outstanding balances owed to a number of creditors.
Among the creditors was a large New York bank—one of the largest banks in the world. The bank is a member and shareholder of the New York Federal Reserve Bank, the lead bank among the 12 privately owned banks that constitute the U.S. Federal Reserve System. When Hamilton and Catherine’s finances imploded under the brutal multiyear assault by the U.S. Department of Justice (DOJ), Catherine owed the bank $14,000 on a credit card.
Since 1999, Catherine and the Solari team had tracked gross violations of financial management laws at the Department of Housing and Urban Development (HUD) and the Department of Defense (DOD). By 2006, they had identified over $4.2 trillion missing from the accounts of these two agencies. (A survey completed by Dr. Mark Skidmore 11 years later indicated that by 2017, the missing money was in fact significantly more.) By the 2006 count, the amount missing was approximately $14,000 per person for every man, woman, and child living in America. This was equivalent to approximately three years’ worth of average federal tax bills for taxpayers living in Catherine’s state of Tennessee.
The New York Fed and its member banks were at the heart of explosive financial fraud in America—not just the money missing from the U.S. government but also the mortgage fraud and predatory lending that would shortly lead to a global financial crisis. Why should Catherine pay one of those banks $14,000 when she believed they had helped to steal the equivalent amount from her and each one of her fellow citizens?
Armed with knowledge about U.S. financial management laws and regulations and the anti-fraud provisions of securities laws, Catherine, in 2006, wrote a letter to that large New York Fed member bank. She explained that she owed the bank $14,000 on her credit card, but that this very bank was responsible—as an owner and member of the New York Fed—for $14,000 stolen from Catherine as an American citizen. She was, she explained, asserting a “common law right of offset.” She would not pay the bank the balance on her credit card and would consider her per capita portion of the money missing from the U.S. government repaid and the debt to her satisfied.
She had learned about “common law right of offset” from the DOJ. In 1998, asserting a “common law right of offset,” DOJ withheld $2.1 million owed by HUD to Hamilton Securities, justifying its refusal to pay the amount HUD owed Hamilton (for services rendered under a HUD financial advisory contract) on an error made by a Hamilton subcontractor on a mortgage auction years before. Hamilton noted that, as financial advisor, it had reported the subcontractor error; in addition, according to the U.S. government’s expert witness, the error did not represent a cash loss to the federal government. Hamilton also countered that as financial advisor, it was not responsible to HUD as an underwriter, was paid a flat fee on a “best efforts” basis, and had achieved a much higher level of profitability on HUD loan auctions than expected. The U.S. Court of Federal Claims agreed with Hamilton, which is how, after a successful litigation outcome, Hamilton finally achieved a financial settlement with the U.S. government.
Catherine ended her 2006 letter saying that the bank should contact her attorney, Carolyn Betts, if the bank had a problem with the assertion of a $14,000 common law right of offset. Neither Carolyn nor Catherine ever heard a word in response.
This is the point in the story when an astute financial person might say that the bank returned the favor via Catherine’s credit report and credit score—raising interest costs on subsequent mortgages and credit cards. No doubt, the owners and members of the New York Fed did indeed claw back some of that $14,000 through higher interest charges.
But New York Fed member banks have clawed back much more than Catherine’s $14,000 from everyone else. Shortly after Hamilton’s settlement, the global financial crisis began, from which the New York Fed member banks emerged richer and more powerful than ever—thanks to both Treasury and Fed monetary and fiscal largesse and the DOJ position in the HSBC case2 in 2012, which made it clear that the large banks had immunity from prosecution.
HSBC is one of the world’s largest banking and financial services organizations. In the 2012 case, DOJ fined HSBC $1.92 billion for laundering drug money but allowed HSBC to enter into a “deferred prosecution agreement,” under which the bank’s officers were relieved of criminal liability for their crimes. To understand the DOJ contribution to systemic criminality through DOJ’s HSBC decision, and to grasp foreign bank immunities engineered through the Bank for International Settlements (BIS), we recommend All the Plenary’s Men by attorney John Titus, available at Titus’s “Best Evidence” video channel.3
This de facto immunity from prosecution is another example of the use of international law and treaties to protect criminality by large banks and corporations.
Let us repeat this so the full meaning can sink in: The large banks are above the law. They are free to engage in criminality using their privileged status as owners of central banks in control of monetary policy and as the federal government’s bankers (and bankrupters), so long as they kick back a portion of the profits to the DOJ and U.S. enforcement agencies—and, no doubt, to legislators and politicians in the form of campaign contributions.
Unfortunately, crime that pays is crime that stays.
B. $21 Trillion Missing and FASAB 56
As of federal fiscal 2015, the documented money missing from the U.S. government had risen to $21 trillion, which equates to $65,000 per person in the U.S. There are indications that the actual amount may be much higher. (For significant documentation on the $21 trillion missing from the US federal accounts and violations of the financial management laws, see our dedicated websites on the missing money: https://missingmoney.solari.com and https://hudmissingmoney.solari.com)
We cannot know for sure because the public pressure for a federal financial audit culminated in the adoption of Federal Accounting Standards Advisory Board Statement 56 (“FASAB 56”) in October 2018. This federal accounting policy permits the federal government by administrative action—without formal legislative, regulatory, judicial, or executive approval—to keep secret books as determined by a secret group of people pursuant to a secret process. The policy underlying FASAB 56 is presumed to supersede the provisions to the contrary in the Constitution, as well as all financial management laws adopted by Congress and all regulations issued by the Executive Branch. This, of course, renders meaningless the public disclosure in U.S. government financial statements.
In combination with national security laws, FASAB 56 may also render meaningless the public disclosure by large banks and information technology, accounting, payment system, and defense contractors that do substantial business with the federal government, due to regulations by the Securities and Exchange Commission (SEC). The SEC regulations permit obfuscation in mandatory disclosure by government contractors under the color of national security. When given the opportunity to comment on FASAB 56 when it was first proposed, the SEC declined, saying, “No comment.”
So, faced with the prospect of paying annual taxes to a government that is operating sufficiently outside the Constitution and financial management and other laws to be called a “criminal enterprise,” we now are challenged with the need to somehow claw back significant amounts of money stashed in secret slush funds, offshore, or behind the curtain of national security. The chief of staff of the Senate appropriations subcommittee that oversaw spending by HUD used the very term “criminal enterprise” to describe HUD operations in a conversation with Catherine many years ago as Catherine was leaving Washington. To which Catherine replied, “I don’t disagree.”
C. The Question of Sovereignty
Since the creation of the Federal Reserve System in 1913, U.S. political and financial systems have operated in a balancing act between the central bankers, on the one hand, and a republic managed by elected representatives and an electorate on the other. Put simply, the central bankers ran monetary policy, and representatives of the electorate determined fiscal policy. This balance of power between bankers and the electorate is similar to that existing in governmental systems throughout the G7 nations.
In recent decades, the U.S. government has become increasingly dependent on private banks and corporate contractors to run both its accounts and operations, resulting in a loss of intellectual capital within the governmental bureaucracy and a fundamental deterioration in U.S. government sovereignty, including information, financial, and operational sovereignty.
D. The Financial Coup d’État and the “Going Direct Reset”
For many years, we have referred to the trillions of dollars missing from DOD and HUD—and the steady financial drain on the U.S. government as its outstanding debt skyrocketed by approximately equivalent amounts—as a “financial coup.”
The slow and steady depletion of government accounts since fiscal 1998 has now accelerated into a fundamental reengineering of the U.S. government as part of the “Going Direct Reset.” With the approval of their “Going Direct” plan in August 2019 (ten months after the U.S. government’s adoption of secret books through FASAB 56), the G7 central bankers have embarked on a takedown of the global economy.
We have provided detailed descriptions in three recent Solari Report Wrap Ups:
- 2nd Quarter 2019 Wrap Up – The State of Our Currencies: The End of Currencies by Catherine Austin Fitts4
- “The Going Direct Reset” by John Titus (see the 2020 Annual Wrap Up – The Going Direct Reset)5
- “2nd Quarter 2021 Wrap Up: CBDCs – Why You Want to Hold on to Your Cash” with John Titus6
With regard to the central bankers’ global takedown, we also recommend the four-part series by Corey Lynn, “The Global Landscape on Vaccine ID Passports”:
- “The Global Landscape on Vaccine ID Passports and Where It’s Headed: Part 1“7
- “The Global Landscape on Vaccine ID Passports Part 2: How Your Digital Identity Is Moving to The Blockchain for Full Control Over Humans”8
- “The Global Landscape on Vaccine ID Passports Part 3: The Key Implementers of Your Digital Identity onto The Blockchain”9
- “The Global Landscape on Vaccine ID Passports Part 4: BLOCKCHAINED10
With the “Going Direct Reset,” the central bankers have decided to remove the electorate from the governance process (already seriously eroded by computer voting fraud and hacking) by instituting a transaction system—referred to as central bank digital currencies (CBDCs)—that will afford them complete control of each individual’s financial transactions. Under a CBDC system in which government maintains and controls all financial transactions, if a citizen objects to taxation without representation by refusing to pay federal taxes in the face of gross violations of the Constitution and human rights, the central bankers can simply take the taxed amounts from such individuals’ accounts.
Indeed, the Bank of England is now considering issuing cryptocurrency in which the payor (that is, the government) can control what the recipient can use the crypto to purchase. We might speculate that Bitcoin and other private digital currency systems are operating as beta tests for an eventual global CBDC system or cryptocurrency.
As part of this process of instituting a global digital currency system, central bankers are moving into place to take over sovereign government functions and the finances of sovereign governments. As an indication of movement in this direction, consider that the current Secretary of the Treasury is Janet Yellen, former Chairman of the Federal Reserve System. Her deputy is Wally Adeyemo, former Senior Advisor at the Center for Strategic and International Studies under Larry Fink, the chairman of BlackRock. BlackRock’s investment institute prepared Dealing with the next downturn: From unconventional monetary policy to unprecedented policy coordination11 and “Going direct: How central banks could deal with the next downturn“12—the foundation for the “Going Direct” plan approved by G7 central bankers in August 2019. BlackRock has assumed several responsibilities for the Fed in implementing operations of the “Going Direct Reset.” Clearly, Yellen and her staff understand the issues described here.
Before we find ourselves captured in a complete global financial control grid, the time has come to exercise our obligations as citizens: first, to prevent the U.S. federal government from being operated outside the financial management laws, and second, to reverse the financial takeover that is now migrating into a full-blown coup d’état by the owners of the central banks.
Can the American electorate assert the rule of law, starting with enforcing existing laws related to the use of our tax money? Can we prevent the use of our tax dollars for criminal purposes, including disaster capitalism, the privatizing of our federal government into a system of global corporate control, and the poisoning of the general population? Can we reverse the centralization of the financial system and decentralize currency, credit, and equity creation and circulation?
E. Taxes: What Can We Do?
There are many ways in which we support and finance the people and institutions running or permitting criminal and corrupt activities and helping to centralize political power. We watch their news programs. We invest in their stocks and bonds. We order their products. We shop at their stores. We give them open access to our homes and our data. We use their credit cards.
We can frustrate and halt the takeover by globalists. We can use cash-only on Fridays—and every day. We can turn off old media or, better yet, throw out our TVs. We can stop shopping at Amazon. We can sell Google stock. We can tear up a JPMorgan credit card and switch banks. We can stop using AT&T’s cell phones. We can throw out an Alexa, opt out of smart meters, and turn off our smartphones or leave them in the car when not in use. We can quit our jobs at Moderna and Pfizer.
But then there are taxes. We send a large amount of tax dollars to local, state, and federal governments, where our money is used to finance the implementation of policies we do not support—criminal or wasteful policies that are harming us, our families, and our communities. Our governments (at all three levels) are making purchases from, entering into contracts with, and providing tax benefits and subsidies to corporations that we do not wish to support.
As citizens, we are responsible for ensuring that our tax dollars are spent productively and lawfully. We have started to see citizens at local levels grapple with the issue of tax dollars used for criminal and wasteful purposes. A group of small businessmen in Baltimore, for example, has threatened to withhold their taxes if the city fails to address rampant crime and other problems in their neighborhoods.13 Parents appalled at sex education programs that they describe as “grooming,” and sex surveys that invade family privacy, are challenging school boards. Taxpayers are beginning to question why they should pay real estate taxes to fund schools that are harming their children, and are digging into local school board expenses, contracts, and bonding to uncover corruption as a means of achieving changes in leadership. Citizens forced out of unsafe schools question having to pay taxes to fund local schools while also having to pay private tutors to homeschool their children.
At the granular level, questionable practices start with the delivery of basic education, police, fire, water, and sewer services. Meanwhile, the financial pressures that come with federal mandates, regulatory requirements, corruption, and inflation represent a growing burden on municipal and local sheriffs’ budgets. The pressure on local governments is now coming to a head as governments force the shutdown of small businesses under the pretext of a pandemic while allowing the businesses’ publicly traded competitors to stay open—literally next door—and steal sales, customers, and business, essentially for free.
Without the tax dollars, jobs, and financial activity generated by local small businesses, local governments are starved for funding. At the same time, with central bankers’ direct infusions of cash into the system through the Fed’s fiscal actions, private equity and investment companies are appearing throughout America to buy up real estate and inflate family housing prices. What is the result? Our monetary and fiscal policies are paying for the criminal application of plague laws14 to steal our assets and cash flows. Disaster capitalism facilitated and engineered with our own tax dollars is indeed a plague in and of itself.
F. What’s the Action?
While we have heard for many years that it will be difficult to restore sovereignty and the rule of law, we continue to believe that doing so is easier than relinquishing our freedom and adapting to slavery. The question before us is “how?”
If we are in a war to retain sovereignty and restore the rule of law, how do we stop financing the enemy? How do we take our governments back? What can we do?
The citizenry has a legal obligation to pay taxes—although admittedly, the validity of some tax obligations asserted by government is open to debate, and some such obligations are imposed on the basis of practice and coercion more than by incontrovertible law. Nonetheless, as a practical matter, governments have the power to enforce tax collections, even governments that are not obeying the law.
The purpose of this article is to begin a discussion of how we ensure that our tax dollars are used in accordance with the law. We explore how we identify and get back any money or assets that have been issued, transferred, or spent illegally, and how we return sovereignty to our governments in a manner that protects our individual sovereignty as well.
How do we recapture tax money taken under false pretenses and return government to lawful operations without, in the process, also taking down the government—thus helping the central bankers strip us of governments that serve the citizens and electorate? The answer to these questions may be a decisive factor in determining whether the United States breaks up like the Soviet Union did in 1989—making it easy to abrogate obligations to the electorate—or continues as one country.
Determining the options for taking action is neither easy nor simple. The U.S. tax system is complex, and tax laws and regulations as well as systems for tax preparation, payment, and compliance thread through many aspects of our financial system and society. There are numerous stakeholders involved, and numerous perpetrators are responsible for the situation in which we find ourselves. Consequently, this article requires that we also review “who’s who” in the U.S. federal tax ecosystem.
The parties most liable for the compromised financial integrity of the U.S. government—including New York Fed member banks and large defense and IT contractors—also have enormous contracts with state and local governments, for whom they play key financial and operational roles. Many state and local officials who could and should take action will find themselves in the position of having to “come clean”—including by reducing operational dependency on the very banks and contractors they might hold accountable for their roles at the federal level.
How does a state attorney general move to cancel a bank’s good-standing status as an entity formed under the law of that state, when the state itself uses that very bank as a depository or manager of the state’s pension funds? How many campaign contributions will need to be returned by legislators and other state and local elected officials in the process of coming clean?
These are some of the reasons that restoring the U.S. tax system and finances to lawfulness is a revolutionary and highly complex process—one that is a lot more like neurosurgery than like dumping tea in Boston Harbor. Such a revolution will require the leadership of a significant number of professionals who understand that cleaning up the system is essential for the survival of human liberty in the West.
Despite the complexity and difficulties, we believe a wider, open conversation can begin to flesh out options to turn around the current state of affairs and generate a consensus about who can lead and what efforts are needed to start and maintain the reclamation process.
The purpose of this article is to inspire such a conversation.
There is an old saying from one of the founding fathers that “in this world nothing can be said to be certain, except death and taxes.” That may be true. However, taxation without representation will lead to both death and things worse than death. So, we invite you into the conversation.
The time has come to enforce the financial management laws that govern the use of our taxes and our right to representation as a condition of taxation. There is always a way. Let’s figure it out together.
II. Overview of U.S. Tax System
The U.S. tax system touches all aspects of the U.S. economy, government, and law enforcement. To understand how the tax system currently functions, it is essential to recognize two facts. First, the New York Fed serves as depository for U.S. accounts. Second, private corporations control, manage, and operate a significant number of the government’s information, accounting, and payment systems. Consequently, U.S. tax collections and expenditures run through accounts held and maintained by private banking and corporate interests, many of which—as we shall see—enjoy legal immunity from prosecution and claim exemption from public disclosure requirements.
The Appendix provides an overview, in outline form, of the laws and the parties involved in making tax policy and controlling tax collections and expenditures.
III. Who Is Liable?
Let’s start by defining the parties that may be potentially liable for legal, political, and other actions affecting the use of our tax dollars.
A. The New York Federal Reserve Bank, Officers, and Members
The New York Fed is the depository for the U.S. government. It is a private bank owned by its members, including the large New York banks that also serve as primary dealers and agents with respect to government accounts and securities. This group of actors would include leading banks like JPMorgan Chase, Citibank, and Bank of New York. Under the law, the Fed should not be effecting illegal transactions.
B. Transnational Banks and their Officers and Board Members
These actors facilitate the collection, transfer, and retention of taxpayer funds and the issuance and market making of U.S. Treasury securities. Key here are depositories for government funds (including state and local funds) and any funds stolen from taxpayers.
These institutions include bullion banks (that is, members of the London Bullion Market Association), comprised of JPMorgan Chase, ScotiaMocatta, Barclay’s, Deutsche Bank, HSBC, and UBS, which engage in precious metals market manipulation, presumably with taxpayer assets and exercising their access to the Exchange Stabilization Fund and the U.S. credit.
Of note, AIG is one insurance firm that appears to have important financial responsibilities for the Department of Justice, the Exchange Stabilization Fund, and likely the Central Intelligence Agency (CIA). There may be others.
C. Central Banks, Officers, and Members
Other central banks are implicated in the process of relieving taxpayers worldwide of their assets. In this article, we focus primarily on the U.S. Federal Reserve Board (i.e., members of the Board of Governors of the Federal Reserve System) and the owners of the New York and San Francisco Federal Reserve Banks, two of the most influential of the 12 private Federal Reserve banks.
We know the identities of such owners because only Fed member banks can own shares, but the relative ownership interests are secret, as are the identities of the companies that run Fed data systems and reserve banks’ policies of sharing data and related intelligence with their members and other entities.
D. Corporate Contractors, Officers, and Board Members
The deterioration of the U.S. credit and control over government accounts has been accompanied by the rise of private companies as contractors providing and running government information, telecommunications, accounting, and payment systems, with increased dependency on software and digital systems provided or serviced by these private corporations. This delegation to corporate contractors of essential governmental functions often makes government operations opaque to both government employees and citizens and prevents the media and researchers from enforcing their rights to information through otherwise valid Freedom of Information Act (FOIA) requests.
The government’s contracting out of many essential functions to private companies, initially justified on the theory that the private market was more efficient and could serve certain functions more cheaply. In fiscal year (FY) 2020, the U.S. government awarded a total of $665.7 billion in contracts, up 13.2% from $588.1 billion in FY 2019. Of the $665.7 billion in total contract funds, the Department of Defense awarded $421.5 billion (63.3%).
A number of publicly available sources provide listings of the largest U.S. federal contractors as well as information on the process of identifying and bidding for government contracts.15 According to statistics kept by the General Services Administration and reported by Aeroweb, the ten largest U.S. government contractors in FY 2020 (ranked by funding amount) were Lockheed Martin ($76.5 billion in prime contracts, representing 11.5% of total contract funds awarded by the U.S. government); Raytheon Technologies ($27.2 billion [4.1%]); General Dynamics ($25.2 billion [3.8%]); Boeing ($23.2 billion &D91;3.5%]); Northrop Grumman; McKesson Corporation; Triwest Healthcare; Huntington Ingalls; Leidos; and L3Harris.16 The largest foreign government contractor was BAE Systems.
Lockheed Martin is far and away the largest contractor, having run the payment systems at HUD and many systems at DOD during the period in which significant funds went missing. Lockheed Martin spun off its government IT division to Leidos after FY 2015, the year in which reported undocumentable adjustments against Treasury in U.S. Army/DOD accounts totaled $6.5 trillion.
The U.S. intelligence agencies under the lead of the CIA have delegated their cloud operations to Amazon. The U.S. Navy has delegated its cloud operations to Leidos. Department of Defense efforts to delegate its cloud operations to Microsoft and others are currently underway.
Increasingly, as agencies have attempted to produce audited financial statements, they and the Government Accountability Office or GAO (formerly the General Accounting Office) have made use of a large number of private accounting and law firms. In fact, none of the obfuscation of the location and use of improperly applied taxpayer funds could occur without the assistance of lawyers and accountants. Few, if any, slush funds or abusive “special purpose entities”—such as used, for example, by the Fed to perform functions that would otherwise be prohibited under Section 3(13) of the Federal Reserve Act—would be possible without being created by (or at least documented and used in transactions designed by) lawyers.
Attorneys can hide behind the attorney-client privilege regarding communications with clients but under their codes of ethics are not permitted to further illegal schemes or other illegal conduct by their clients, including government agencies, the Department of Justice, and New York Fed member banks. Similarly, clean audits by major accounting firms are required for virtually any sizable financial transaction and for the issuance of securities registered with the SEC. Sizable transactions just don’t occur without the involvement of attorneys and accountants.
Now that many civil servants are operating from home under COVID-19 restrictions, it appears that corporate contractors’ control of operations funded by U.S. taxes will continue to increase.
E. Asset Managers, Officers, and Board Members
A review of shareholdings of the corporate contractors and banks most responsible for U.S. government accounts in recent decades shows that the lead investment positions are held by a handful of firms that dominate U.S. investment functions—and particularly those with the largest market share in managing index funds. This group includes firms like BlackRock, Vanguard, Fidelity, and State Street.
BlackRock has also played an active role in designing and implementing the “Going Direct Reset,” assuming unprecedented portfolio management responsibilities with the New York Fed.
In addition, numerous large investors—entities like Harvard Corporation, university endowments, large foundations such as the Rockefeller and Ford Foundations, and Warren Buffet through Berkshire Hathaway—operate via “cutouts.” These are typically smaller investment, private equity, or buyout firms that make it much harder for the general population to see important investment patterns and trends and how they relate to government spending and policy.
F. Corporate (“Old”) Media
Over the last two decades, the corporate (or “old”) media have remained almost completely silent about money going missing from the government and the many violations of the U.S. Constitution and federal financial management laws and regulations. A report on just how much of the money “disappeared” from U.S. government accounts was reinvested in the stocks and bonds of the major media companies and in contracts and purchases with their corporate affiliates is long overdue.
G. Members of the Oligarchy
Contributing to the process of centralizing political and economic power in the U.S. are numerous groups that meet to “discuss” governance and economic policy. Included in such meetings are the G7 group, the Bilderberg Group, the World Economic Forum, the Masons, the Vatican and Jesuit organizations, the Trilateral Commission, the Executive Committee of the Council on Foreign Relations, and the Bohemian Grove membership, among others. The membership rosters for these groups include representatives from the banks, investment firms, and companies described earlier in this section as potentially liable parties.
Increasingly, we hear reports of meetings and topics for discussion by these groups that may, upon subpoena or deposition, present possible evidence of criminal conspiracy or violations of the RICO (Racketeer Influenced and Corrupt Organizations) Act related to the use of tax-funded assets.
H. Government, Military, and Intelligence
1. Executive Branch
In the executive branch of government, we have presidential appointees serving as agency heads and appointees in key management and decision-making roles, as well as members of the senior executive and civil service. These include appointees and civil service members with chief financial officer and comptroller responsibilities.
Given the extraordinary powers of the U.S. intelligence agencies, it is hard to explain how $21 trillion could go “missing” from the U.S. government without the National Security Agency (NSA) and CIA being able to watch and track the monies and those responsible. In light of the hair-raising disclosures of Bill Binney and other reliable and high-level sources, who describe mind-boggling NSA and intelligence agency resources and extensive operations dedicated to building and implementing invasive surveillance systems, the agencies’ silence on the subject of the missing money speaks volumes regarding who and what is really responsible.
Given that the lion’s share of the missing money is in military accounts and given the important role of the U.S. military in maintaining the U.S. dollar as reserve currency, it is safe to assume that the U.S. military’s role and responsibility in “disappearing” taxpayer funds is also significant.
2. Legislative Branch
Under the Constitution, Congress has the ultimate power of the purse. Thus, Congress has the authority to prevent illegal expenditures and to take action when government agencies fail to comply with financial management and disclosure laws—but Congress has failed to exercise this power.
Within the Congress, members of key House and Senate committees have access to a great deal of confidential and off-balance-sheet data that are not subject to public scrutiny or even scrutiny by other members of Congress.
3. Judicial Branch
In theory, the courts are independent of political influence, yet judicial corruption is clearly a problem. Unfortunately, influence on the judiciary has become a key means of securing support for laws that are questionable both constitutionally and morally.
The USA Patriot Act is a prime example. It is worth noting that 9/11 was instrumental in distracting attention from the first $4 trillion that went missing from DOD and HUD, not to mention blowing up significant documentation related to this theft. Passage of the USA Patriot Act following 9/11 set the stage for more trillions to disappear with ease from U.S. government accounts, leading one investment manager to nickname the Act “the Control and Concentration of Cash Flow Act of 2001.”
4. Equivalent State and Local Branches
It is important to remember that there are 51 sets of executive branch agencies, legislatures, and courts at the state level (plus territorial versions of the same), and even more for each of some 3,143 counties and county equivalents in the United States. These entities handle significant funds appropriated by the federal government and implement significant federal laws and mandates.
One of the challenges in acting against the federal government directly relates to the question of how we strengthen, rather than weaken, state and federal sovereignty in doing so. Our goal should be to return our governments to electorate control rather than weakening them further in a manner that would increase the relative power of the central bankers in their takedown of sovereign governments.
I. Global Institutions
To the extent that global governments, international organizations like the World Bank and the International Monetary Fund (IMF), and international financial institutions have been complicit in “washing” or reinvesting funds stolen or moved illegally from U.S. government accounts, they may also be accountable.
IV. Who Can and Will Take Action?
There are numerous parties who have legal standing to object to illegalities and waste in the taxation system.
A. Individuals and Taxpayers
This includes all citizens, many of whom are taxpayers, both as individuals and owners of small businesses and other enterprises. Small businesses and small farms should have a strong motivation to participate in taking action given the brutal treatment they have received from the federal government over the last decade. It may be safe to say that they have little to lose by acting now.
B. Attorneys, CPAs, and Tax Return Preparers
The preparation and payment of taxes involves the participation of a large industry composed of attorneys, certified public accountants (CPAs), financial advisors, and other tax return preparers and consultants who are likely to care about the corruption of the system and the changing laws increasingly requiring them to act as an enforcement arm for that system.
C. State and Local Officials, District Attorneys, and Attorneys General
While it may be difficult for individual taxpayers or their preparers to organize actions related to federal taxes, state officials and attorneys general are uniquely positioned to do so, particularly given the rights reserved to the states in the Constitution. We have seen a great deal of coordination and joint action among state attorneys general in recent years, which may provide a foundation for action related to illegalities involving federal taxes and financial management.
Some of the challenges are that many state and local governments are guilty of breaking the same or similar laws as the federal government or are complicit in criminality with the federal government. They may also be operationally dependent upon the very same banks and contractors that run illegal operations at the federal level.
D. Pension Funds
U.S. pension funds—including state, local, union, and corporate pension funds as well as U.S. retirement accounts—are the largest single investors in U.S. Treasury securities. Their participation in the Treasury market and their silence about undocumentable adjustments and the federal government’s failure to obey financial management laws have been instrumental in enabling the financial coup d’état.
This raises a key question: Would the pension fund managers be willing to take action on behalf of fund beneficiaries by doing what they can to return sovereignty to the U.S. government, or should they be moved to the “Who is Liable?” category?
E. Other U.S. Treasury Investors
In addition to U.S. pension funds, the wide range of investors in U.S. Treasury securities includes banks, insurance companies, asset managers, sovereign wealth funds, and individual investors both domestic and global.
One concern is that lawsuits could be brought by investors looking to asset-strip rather than restore good financial practices.
F. Judges and Magistrates
Judges and magistrates working with taxpayers and other parties have the ability to order the creation of escrows, actual or constructive trusts, and other mechanisms to segregate tax payments to protect them from criminal use.
G. Community and Credit Union Bankers
The push for vaccine passports and CBDCs, which seems headed toward the creation of government banks and invasive data regulations, has the potential to destroy thousands of community banks and credit unions. Acting to uphold federal financial management laws may serve as a successful offensive political move on the part of these bankers and their associations.
H. Accountability Groups
There are organizations that have been working for years to promote greater transparency and warn about the financial management failures of the U.S. government. The Federation of American Scientists, Truth in Accounting, and similar groups may have a constructive role to play.
V. U.S. Taxes: Illegalities and Waste
What are the laws that have been broken that may be actionable?
A. Failure to Obey Federal Financial Management Laws
The failure to obey the federal financial management laws and regulations is both egregious and well-documented. The following are federal financial management laws, including the requirements for published audits and full disclosure of government accounts, that are often disregarded:
- Miscellaneous Receipts Act (1849)
- Federal Reserve Act of 1913
- Gold Reserve Act of 1934
- Accounting and Auditing Act of 1950
- Budget and Accounting Procedures Act of 1950
- Federal Managers Financial Integrity Act of 1982
- Government Securities Act of 1986
- Chief Financial Officers Act of 1990
- Federal Credit Reform Act of 1990
- Government Performance and Results Act of 1993
- Government Management Reform Act of 1994
- Federal Financial Management Improvement Act of 1996
- Antideficiency Act (1997)
- Federal Funding Accountability and Transparency Act of 2006
- GPRA Modernization Act of 2010
- Digital Accountability and Transparency Act of 2014
The failure to obey these laws implicates the federal government, its officials, members of Congress, and the New York Fed and its members, as well as government IT, accounting, and payment contractors.
To assist in a serious review of possibilities, we have provided summaries of the Federal Reserve Act and several of the U.S. financial management laws at the Missing Money website that Solari maintains regarding the $21 trillion missing from the U.S. government.17 This material is current as of January 2019 and was also published in the two-volume 2018 Annual Wrap Up – The Real Game of Missing Money, available to the public online at https://hudmissingmoney.solari.com. Hard copies are available to Solari subscribers at https://home.solari.com/annual-wrap-up-2018-the-real-game-of-missing-money/.
B. Illegal Use of Tax Money
The 16 examples in the following section describe just some of the illegal uses of taxpayer funds by the U.S. government carried out with the help of banks, contractors, and a variety of private parties.
Illegality #1: Adopting Unconstitutional Policies Related to Expenditure of Funds and Financial Management and Disclosures (Use of Taxation Proceeds)
Examples include the adoption of FASAB 56 (which permits agencies to make accounting entries in government financial statements that hide funds by transferring the funds into other accounts, supposedly for national security purposes) and the “Black Budget” system for financing covert operations, as well as the annual decision to not get to the bottom of sizable undocumentable adjustments nor attempt to get the money back.
Illegality #2: Unconstitutional Secrecy
Included in this category are the refusal by DOD and HUD to produce financial statements; the 2006 waiver, under which the Director of National Intelligence can waive SEC disclosure requirements for corporations doing business with the government; the Reagan executive order permitting the government to employ outside contractors in classified functions; and the NSA’s failure to account for expenditures, resulting in illegal compensation. See Catherine’s interview with Bill Binney, “The Corruption and Compromise of the NSA with William E. Binney”18 and Richard Grove’s feature interview with Binney, “The Future of Freedom: An Interview with NSA Whistleblower William Binney.”19
Illegality #3: DOJ Policy of Granting Legal Immunity
During the Financial Crisis that began in 2008, the Department of Justice established a policy of effectively granting immunity to lawbreaking banks under the justification that they were “too big to fail.” Again, see John Titus’s documentary, All the Plenary’s Men,20 which offers an in-depth account of the interference by members of the BIS Financial Stability Board in the investigation and negotiated settlement with HSBC for its criminal money-laundering activities. HSBC settled in 2012 with DOJ (under Eric Holder) for $1.26 billion under a deferred prosecution agreement whereby there were no criminal charges against the bank or its officers.21 Titus’s documentary makes clear that globalists will not stand for the allegedly sovereign U.S. Justice Department holding “too big to fail” banks liable for criminal fraud and that key appointees of the U.S. government like Tim Geithner (former Treasury Secretary) and Jerome Powell (current Chairman of the Federal Reserve) wear two hats: one as office-holders for the U.S. government answerable to the American electorate and another as parties answerable to the international banking cartel. As another example of the extent of this policy of immunity, read our summary review of $42 billion of civil and criminal penalties and settlements paid by JPMorgan Chase from 2002-2019.22
Illegality #4: Organized Crime
Unfortunately, the list of alleged illegal activities by the U.S. government—often involving its banks, contractors, and other large corporations—is long. This includes patterns of disaster capitalism, using government to advantage selected companies relative to their competitors (notably, small businesses and local communities). Examples of possible opportunities for recovery against liable parties include the GM/Chrysler and bank bailouts; allegations of illegal arm sales at DOD arsenals; illegal narcotics trafficking by the CIA in arms-for-narcotics deals (as recounted by Gary Webb in the San Jose Mercury News and in his book Dark Alliance); documented sex slave trafficking and other crimes by government contractor DynCorp23 (acquired in 2010 by hedge fund Cerberus, of GM/Chrysler bailout fame, and sold in 2020 to Amentum); murders and other alleged atrocities by employees of Blackwater (subsequently operating under the name Xe Services and acquired in 2011 by Academi); the establishment and alleged use of the DOJ Asset Forfeiture Fund for slush funds and related questionable uses; and Iran-Contra.
Illegality #5: Using Government Enforcement Systems and Prosecutors to Pursue Whistleblowers and Other Miscreants
There are many examples of the use of taxpayer resources to target and harm government employees who attempt to ensure that government operations and tax expenditures are lawful. Examples include the conducting of tax audits by the IRS selectively against disfavored conservative nonprofits and falsifying charges against Julian Assange. Another example is the multiyear legal odyssey involving abuse of the Federal False Claims Act against FHA contractor Hamilton Securities Group in order to prevent financial transparency in U.S. mortgage assets and programs and to facilitate mortgage fraud and favoritism related to foreclosure and disposition operations.
Illegality #6: Use of Federal Accounts for Money Laundering
This activity is difficult to prove, but Catherine Austin Fitts in her role as FHA Commissioner and CEO of Hamilton Securities Group, which acted as lead financial advisor to the FHA, experienced a multitude of anecdotal events suggesting that U.S. mortgage guarantee program accounts play a significant role in money laundering.
Illegality #7: Use of “National Security” Exemption and other “Artifices and Devices” to Avoid Disclosure under FOIA
The Freedom of Information Act (FOIA) and analogous state “sunshine” laws require governments to disclose public documents to the public upon request. FOIA imposes time constraints upon the production of requested information—constraints that agencies routinely ignore. Agencies also routinely invoke national security and similar exemptive provisions of the law to avoid disclosing information that they would rather not disclose for unjustifiable reasons. Further, government agencies often refer FOIA requests to government contractors, which then argue that they are not subject to FOIA. When requested information is disclosed, the documents are often heavily redacted. (Hint: Sometimes, the redactions are not complete, and information meant to be redacted is overlooked.)
Illegality #8: Illegal (Including Free) Transfer of Intellectual Capital and Surveillance and Back-door Data to Private and Foreign Interests
An example is the DOJ’s illegal takeover (or theft, as alleged by the original developer, Bill Hamilton) of PROMIS software that was only licensed by Inslaw to DOJ, and the installation of back-door surveillance in such software and its subsequent sale or licensure to other countries, including Israel, for purposes of spying. This software is thought to have been the origin of the powerful NSA spy software referred to as PRISM,24 the existence of which was leaked by Edward Snowden.
Illegality #9: Pension Fund Fraudulent Inducement and Violation of Fiduciary Duty
Instances abound of the federal and state governments issuing securities without the required disclosure that might otherwise have led pension managers not to purchase the securities. Catherine frequently relates how the president of CalPERS, the largest state pension fund in the country, told her in the fall of 1997 that “they have given up on the country—they are moving all the money out starting in the fall.” CalPERS was investing in mortgage and real estate securities, the purchase of which later resulted in huge losses to the pension fund during the 2008-2009 financial crisis. If “the boys” were making investments in foreign rather than domestic securities because they were giving up on the country, then CalPERS’s president had to know that the investment in domestic mortgage-related securities while investment money was leaving the country was a risky proposition.
Another example is the case of the Thrift Savings Plan (TSP), which is the retirement plan for federal government employees and members of the uniformed services, and the largest pension fund in the U.S. In 2018, the total amount managed in TSP was $559 billion, which was allocated to five funds managed by BlackRock Capital. One of these—the G Fund, accounting for $254 billion (45%) of the total—consisted of U.S. Treasury securities with one-day maturities. Given that this is a retirement fund with a stated passive investment strategy, one would expect balances in each of the funds managed to be reasonably stable from day to day and month to month. Over the 18-year period from 2001 to 2019, however, the balance in the G Fund fluctuated wildly between $33 billion and $253 billion. Catherine and Dr. Mark Skidmore questioned whether fund managers at Treasury worked with BlackRock to use these funds in financial markets, which would have been at the expense of returns to the beneficiaries of the Plan, and whether, in fact, this apparent diversion of retirement funds was legal. See the article by Mark Skidmore and Catherine Austin Fitts (with Rob Kirby and David Pare), “Missing Money Update: Thrift Savings Fund—Treasury Account 026×6153.”25
Illegality #10: Surveillance Capitalism
Government contractors have backdoor access to private data collected by or on behalf of government. Both government employees and contractors are believed to share these data with non-government contractor affiliates and others for inappropriate or illegal uses. This is an issue not just with government employees, but with the New York Fed (as the U.S. government depository) and its member banks.
Illegality #11: Public Official Dereliction of Duty
There have been many examples of dereliction of duty since 2020.
First, the CDC, other federal officials, and the old media suppressed the existence of cheap and effective treatments for Covid-19 illness, making it possible for the FDA to approve Covid-19 “vaccinations” under emergency use authorizations that are conditioned upon there not being any available treatments.
Second, the federal government approved and disseminated Covid-19 tests with full knowledge that the inventor of the testing method had repeatedly argued against its use for diagnostic purposes.
Third, federal and state officials have promoted “vaccine” mandates, announcing them as being in effect even though no legislative or executive order action has been taken authorizing such mandates (at least at the time of publishing this article).
Fourth, according to media accounts, it was on the authority of the CDC—a public health agency—that moratoriums on housing evictions were implemented and then extended.
Finally, both federal and state mandates shut down small businesses as “not essential” but allowed major corporations that sell a wide range of competing products to continue in business; the result in many cases was the permanent closure of a significant percentage of small businesses throughout the country.
At the state level, New York’s transfer of Covid patients to nursing homes under Governor Andrew Cuomo resulted in thousands of deaths.
An earlier example is the reckless disregard for the welfare of the public exhibited by officials in Flint and Benton Harbor, Michigan, which resulted in lead poisoning through the water systems in these largely minority-occupied cities.
In 1995, local officials’ dereliction of duty in Sacramento led to the catastrophic Folsom Dam failure.
Illegality #12: Reckless or Malicious Failure to Maintain Infrastructure
U.S. infrastructure has been allowed to become outmoded and poorly maintained, resulting in bridge collapses and other mishaps that result in serious injury and death. (One well-known example is the I-35W Mississippi River bridge collapse in Minneapolis in 2007, where commuters in 111 vehicles and 18 construction workers fell as much as 115 feet into the river and onto its banks, killing 13 and injuring 145.) The cost of not having adequate, well-maintained infrastructure will be felt for years to come. Similarly, fatal mine disasters have occurred because of government failure to enforce the Mine Safety and Health Act.
The problem of federal infrastructure also includes programs and mandates that have contributed significantly to local financial problems. Municipal engineer Chuck Marohn, founder of Strong Towns, has done an excellent job of describing infrastructure investment that is not aligned with the interests of local economies. See the two Solari Reports with Marohn: “Strong Towns with Chuck Marohn” (August 2017)26 and “1st Quarter 2020 Wrap Up: The Real Deal on Going Local – The Infrastructure Challenge with Chuck Marohn” (April 2020).27
Illegality #13: Investing Government Funds with Large Campaign Contributors
Kickbacks (graft) by government officials in exchange for campaign contributions is illegal. In Ohio in 2005, the Toledo Blade exposed “Coingate,” a scheme operated starting in 1998 whereby $50 million of Ohio Bureau of Worker’s Compensation money was invested in gold coins with an entity formed by a large Republican campaign contributor and coin dealer named Tom Noe. Noe hired Mark Chrans, who previously had been convicted of fraud and perjury involving money-laundering in coin deals, to manage the funds. Rare coins said to be worth $485,000 were sent for certification as to value and were stolen from the mail. The rest of the losses were from theft by Noe, bad investments, unpaid loans, and advances on coin deals. The Bureau later denied knowledge of Chrans’s conviction. Reportedly, only $13 million of the $50 million in rare coin investments was recovered.28
Illegality #14: Poisoning
For many years, the U.S. government has routinely engaged in atmospheric spraying of unknown substances. Based on independent research, the materials sprayed include significant levels of aluminum and other heavy metals, as well as unusual life forms that contribute to a parasitic disease called Morgellons. The U.S. government has also contributed to numerous regulatory practices that have intentionally debased the quality of food and soil, including significant poisoning from GMOs and toxic chemicals such as glyphosate in the Monsanto/Bayer herbicide Roundup.
Many food safety laws and regulations—notably the misleadingly named Wholesome Meat Act of 1967 and state-level mandatory pasteurization laws—have intentionally led to the centralization and industrialization of food production and distribution, resulting in food that is more unsafe and of lower quality.
A current example of poisoning are the so-called Covid-19 “vaccines,” which are (at the time of this writing) approved only for experimental and emergency use on a legally questionable basis. Known therapies are available that are safer and more effective and economic than the injections being forced on an ignorant populace without necessary disclosure of contents and risks (a violation of the Nuremburg Code); the fact that selected ingredients remain secret makes informed consent impossible.
Yet another example is the upper-atmospheric nuclear testing by the military, conducted without the knowledge and approval of the population at risk of being adversely affected by the radiation. In addition, the U.S. government has spent significant funds on biolabs and biowarfare capacity. There are significant unanswered questions about how this capacity has been used, including in relation to outbreaks that impact the global food supply and regarding the cause of the Covid-19 pandemic.
Illegality #15: Dangerous Exposure to EMF Radiation and Weaponry
The federal government has intentionally permitted significant harm to the population through dirty electricity and EMF radiation. The federal government’s behavior in this regard is all the more impactful given federal laws that deny local authorities the right to consider health effects when approving cell towers.
The federal government has also encouraged the prototyping of non-lethal weapons for use in domestic applications, either itself using or permitting significant electronic torture or abuse of citizens and taxpayers. While the media have largely censored information about electronic torture, recent incidents involving U.S. embassy personnel have increased general awareness.
Finally, the government has used or permitted the use of sophisticated mind control technologies through media and digital systems.
Illegality #16: Illegal Experimentation on Humans without Informed Consent
Illegal experimentation on humans often takes place during experiments that ultimately are government-funded or conducted by government contractors. Past examples include eugenic sterilization (particularly in the 1930s) of women labeled as “defective” (that is, mentally ill, developmentally disabled, or poor with a history of having multiple children on the “government dole”); the use by Johns Hopkins University of cancer cells from African American cancer patient Henrietta Lacks to develop the immortal “HeLa” cell line used in thousands of medical experiments and procedures without Lacks’ permission or compensation to her family; the infamous Tuskegee syphilis experiments on untreated African American men; and widespread prisoner experiments that began during World War II and continued until at least the 1970s involving testicular radiation (Oregon prisons), malaria (an Illinois prison), and other dangerous diseases and procedures.
Another example are the secretive and largely unsupervised experiments 29 by the National Institute of Allergy and Infectious Diseases (NIAID) and pharmaceutical company partners, conducted between 1988 and 2002 with hundreds of African American and Hispanic foster children, to test dangerous AIDS drugs. When children suffered “agonizing discomforts” and refused to take the toxic drugs, NIAID ordered feeding tubes to be surgically implanted in the children’s stomachs for “compliance.” NIAID also failed to provide most of the children with independent advocates as legally required. Many of the children died.
Early indications are that the Covid-19 vaccinations developed with government financial assistance and approved by the FDA on an emergency use (i.e., experimental) basis—notwithstanding the apparent availability of cheap and safe drugs (e.g., ivermectin and hydroxychloroquine) and other inexpensive treatments—will ultimately prove to have caused many unneeded deaths as a result of vaccine adverse events.
C. Unproductive Uses of Tax Money
Catherine has written extensively regarding the waste of government resources. Governments’ and central banks’ efforts to engineer larger profits for the financial sector and large corporations has contributed to the uneconomic use of government expenditures, contracts, and credit. During this period, the percentage contributions of corporations to tax proceeds has declined and the amount they extract from the economy has risen. This is part of government’s role in engineering greater inequality.
For numerous examples, see Catherine’s 2001 article “The Myth of the Rule of Law”30 and her online book Dillon Read & Co. Inc. and the Aristocracy of Stock Profits.31 The Dillon Read book provides a case study in kickback schemes involving government contracts, increased profits for publicly traded corporations, the rise in stock prices, and the related campaign contributions of corporate employees, investors, investment bankers, and their law firms and lobbyists.
One of the examples Catherine uses most often is Hamilton’s analysis of HUD programs using Hamilton’s software program, Community Wizard. When Hamilton reviewed housing expenditures by place, we discovered that HUD was spending $250,000 per unit to build or rehab public housing in many areas in which $50,000 would buy a HUD foreclosure in the same neighborhood. Why not use the $250,000 to buy and rehab several properties? The objection of one of the officials involved was, “But then how would we generate fees for our friends?”
This problem of uneconomic programs arises in many areas. In Chapter 10 of her Dillon Read book,32 Catherine describes why the private prison industry is very expensive and not economic. The food stamp program (currently called the Supplemental Nutrition Assistance Program or SNAP) is another example. During the 2008 financial crisis, a woman who had become unemployed and was depending on food stamps discovered that the customer support line for the program was being manned by Asian contractors working for JPMorgan Chase. In other words, the U.S. government was paying JPMorgan to hire people in Asia while paying her not to work. Even worse, the food stamp program funds purchases of food grown in Latin America to feed people who could be farming in the U.S., were it not for food “safety” regulations that make many local farms uneconomic and put them out of business. Of course, people who grow their own food would not need food stamps.
These enormous inefficiencies also run throughout contract budgeting, with the government paying corporate contractors to do something that could be done for a far more economic price locally, particularly if locals could be left free to operate without highly expensive and burdensome federal rules and mandates.
One possibility would be for local areas to propose place-based reengineering of funds to the federal government and to combine such plans with the escrow funds described above (see “Judges and Magistrates” in Section IV: Who Can and Will Take Action? and “Use of Escrows” in Section VI: Take Action). Such a plan might look something like the following:
- Escrow taxes locally.
- Send a portion of the funds to the federal government for military and debt service.
- Retain the rest for local expenditures of federal domestic funds, looking for opportunities to reengineer them in a way that improves performance for the citizens.
VI. Take Action: Options and Issues
A. “Coming Clean”
Most of us, more or less, have participated in perpetuating or tolerating the lies and violence upon which our economy and financial lives have become increasingly dependent. The first action we can each take toward “Building a Wonderful World,” then, is to “come clean.”33
If we are going to rid the tax system of corruption, it is essential to do our best to end any personal participation in government fraud, waste, and illegal or unethical spending and mandates, and remove from our financial lives the banks and corporations that have perpetuated the financial coup and compromised U.S. sovereignty.
Decentralization (including establishing relationships with small banks rather than centralized transnational banks) is often more economically healthy for both local economies and the general population. Decentralization can lead to expansion of the economy because job growth and increased circulation of funds mostly occurs in the small-business sector—and small, decentralized banks serve this sector.
Here are some of the ways we can all “come clean”:
- Only do business with and be employed by those we trust. If our careers have relied on employers who are part of the problem, this may not always be an immediately doable action. However, we can work on developing alternative ventures, learn new skills, research other applications of the skills we have in a cleaner employment environment, and cut our costs so that we are not forced by extraordinarily fixed expenses to earn a living beyond a means that allows us to take care of our needs at a more modest level.
- Immediately move our money, including credit facilities, to a well governed and managed locally based bank, savings and loan, or credit union.
- Move the 401(k)s, IRAs, and other investments over which we have control to management by professionals who are ethical and who make an effort to invest in the securities of issuers that have a productive impact on society. If we have the interest and time, we can develop the skills to do this ourselves.
- Put pressure on our employers, churches, metropolitan or county governments, universities, charities, pension funds, and other asset pools with which we associate or have some influence to move their investments to management by competent professionals who are not leaders in the financial coup and are not compromising the tax system and U.S. sovereignty.
- Stop watching and paying for corporate (“old”) media. Let’s form our view of our surroundings and communities based on what we see and experience rather than what the old media tell us. View every “official” story—from climate change and justifications for military actions to pandemics—with extreme skepticism and refuse to believe in coincidences of timing between big and fluffy news stories, on the one hand, and actions by the Fed and legislative bodies, on the other hand. For now, it would be prudent to start with the assumption that all official stories are lies.
- Switch to open source software and email, and exercise care in the use of technology. See our interview, “Take Action 2021, Part I: Loosen Technology’s Grip on Your Mind with Corey Lynn,” part of the 1st Quarter 2021 Wrap Up.34
- Refresh our understanding of the Constitution and rule of law, particularly as regards freedom of speech and association and the right to due process of law for everyone (not just those who agree with the official story or our own views).
- Stop operating within the two-party (Democrat/Republican) model and admit that there is only one party—and that party is not our party.
- Take the time to learn “how the money works” on the international, national, state, and local levels, and particularly the neighborhood financial flows that have the most immediate impact on our lives. See Solari’s “Unpacking Your Financial Ecosystem“35 and the American Institute for Economic Research book by Lynndee Kemmet titled Follow the Money: A Citizen’s Guide to Local Government.36
- Share what we learn with those around us who are interested, including our children.
- Stop associating with those who lack integrity and are untrustworthy.
- Don’t vote for politicians who lie to us, and be willing to “handle the truth.”
- Be brave. Be willing to take risks when and where it produces results. This ultimately may involve losing our homes, our jobs, and our security, if necessary, for the sake of upholding the rule of law and personal and national sovereignty and integrity.
2. Liable Parties
Holding tens or hundreds of thousands of individuals personally criminally responsible for the financial coup crimes is both impractical and a distraction from the goal of setting the system straight. For taxpayers to take effective action on a large scale, they will need help from professionals in government, industry, and professional services, which inevitably will include some who have contributed to and supported government financial fraud. Therefore, some system for “truth and reconciliation” is essential so that the necessary knowledge and experience can become useful in achieving more productive ends. While this may sound straightforward, the historical prevalence of invasive technologies, mind control technology, and control file operations makes this a challenging task that will require serious investment.
3. State and Local Governments
The operations and finances of U.S. state and local governments have become increasingly dependent on the same banks, defense contractors, and IT and telecommunications firms that have compromised the federal government. Thus, before state and local governments can take action, they need to reduce their contractual obligations to and operational dependency on these banks and companies and their reliance on software, IT services, and other products and services from these entities. Taking this action will involve reviewing contracting, bonding, and investment policies in state and local pension funds and other governmental capital pools and assessing corporate and other involvement by banks and corporations in state universities and local community colleges.
Institutional investors, including pension funds, have been financing much of the financial coup, whether through their purchases in the Treasury, mortgage, and sovereign bond markets or through financing private equity and buyout firms engaged in predatory behavior and disaster capitalism. These investors are typically dependent on the New York Fed member banks for a variety of products and services. They will need to consider how they can create sufficient operational resiliency and, where necessary, shift their operations and investments so they can take action.
5. Accountants and Attorneys
A significant portion of institutional accounting and legal professionals and companies will also need to face the “coming clean” process if we are to make a meaningful transition. The significant misuse of taxpayer monies could not occur without the willingness of accountants and attorneys to look the other way and further transactions involving improper and illegal use of such funds. This includes the “Big Four” accounting firms who facilitated FASAB 56 as well as trillions of dollars in undocumentable adjustments.
B. Actions Related to Taxes
Let’s review some of the potential actions that could be taken to shift our taxes back to lawful use.
1. Claims Based on Common Law Right of Offset
One-off claims in response to individual situations
As described in the Introduction, when Catherine settled Hamilton’s case with the federal government, she asserted a common law right of offset against one of the large New York Fed member banks. Hamilton Securities took a similar position with its primary lender, which, as Hamilton’s largest secured creditor, would otherwise have been entitled to the entire proceeds of the sale of Hamilton’s personal property sold at auction (office equipment and furniture). Hamilton took the position that in handling the data for the auction, the bank did not disclose all of the proceeds and, as a result, the bank was not entitled to the entire proceeds. In that case, the bank failed to take action to collect the debt when Hamilton held out for 1099s and other government-required disclosure that the bank had never filed. Catherine to this day believes the bank had engaged in several criminal violations, including illegal sharing of confidential information as well as attempting to steal auction proceeds.
The group of Baltimore businesses that withheld their garbage collection fees owed to the City of Baltimore because the city had not performed its obligations to collect their garbage represents a recent example of the use of the common law right of offset. Instead, the businesses used the funds that would have been paid to the city to hire private contractors to collect their garbage. This action also might be thought of as local reengineering by force.
Common law right of offset asserted by a group
Taxpayers from a given city or state (or group thereof with common financial claims) might wish to assert their common law right of offset against a common defendant or liable party, initially on an informal basis (as in “We hereby decline to make payment of the $XXX.00 claim asserted by you in this collective invoice and assert an offset in like amount against such claim by reason of your actions in [describe the basis of the claim of offset]). In this scenario, the taxpayers would effectively dare the creditor to file an action in court to collect on the claim.
The disadvantage of this strategy would be the likely adverse impact on the taxpayers’ credit rating and, in the event of a secured claim, loss of the secured property. The more individuals or small businesses that gather together in asserting such a claim, however, the more likely will be the liable party’s decision to assert its position. This might also be an effective solution for student loan debt.
Common law right of offset asserted by attorneys general on behalf of state residents
One or more attorneys general, district attorneys, or similar public legal officers have the authority to bring actions and assert claims on behalf of the residents within their respective jurisdictions. The most likely candidates for taking such legal action are those from states and other jurisdictions that have fully funded public pension plans, low per capita state debt, common single-party (probably Republican) governors and legislatures, and relatively simple code, legislative, and court structures that are supported by taxpayers. Examples of states that may satisfy some of these criteria are North and South Dakota, Utah, Idaho, Tennessee, and Texas.
There have been a number of breaches of treaties entered into by the U.S. Government and Native American tribes (see, for example, “In 1868, Two Nations Made a Treaty, the U.S. Broke It and Plains Indian Tribes are Still Seeking Justice”37) and the Bureau of Indian Affairs has violated at least one court order. While tribes as a group do not pay federal income taxes, distributions of profits to members of tribes (such as from casino operations) are taxable. Assertion of the common law right of offset in these circumstances would appear to be particularly well justified.
Use of escrows
In the case of assertion of a right of offset, in order to avoid default on a valid debt like an income or other tax obligation where no government actor (like an attorney general, state’s attorney, or district attorney) is sponsoring the action, consideration may be given to the establishment of and payment of the debt into an escrow fund under the control of an appointed agent or court. This is what is done in many landlord-tenant courts when residential landlords refuse to make needed repairs or refuse to render their rental properties habitable. In those cases, tenants pay their rent into the court, protecting the tenant from being accused of defaulting on rent and therefore becoming subject to eviction, and the court refuses to release the rent monies until the properties are made safe and habitable and the needed repairs are made.
Seizure by states of federal lands and other federal property and refusal to enforce federal mandates
This is a radical idea, but as an alternative to court action, states might seize federally owned real or personal property as an offset to debts or unfunded mandates with which they believe the federal government has unfairly saddled them. Sheriff Joe Arpaio of Maricopa County, Arizona is a well-known and controversial example of a state official who has refused to enforce federal mandates that state citizens do not support (in this case, having to do with illegal migrants). He argued that, as sheriff, he had exclusive jurisdiction over certain matters in Maricopa County.
State governors have also issued mandates in direct contravention of federal Covid-19 vaccine, business closure, and mask mandates, and state legislatures have enacted laws similarly in conflict with and challenging federal Covid-19 mandates.
Law enforcement personnel in so-called “sanctuary cities” have pledged active non-support of federal immigration officials’ efforts to capture and deport undocumented aliens.
2. Private Actions in Court
The following causes of actions (meaning a type of legal claim) may be directly applicable or used by analogy in order to gain popular support of actions to address malfeasance of the type described herein.
Racketeer Influenced Corrupt Organizations (RICO) actions under 18 U.S.C.A. § 1961
This cause of action involves charging a group with a conspiracy among multiple players to defraud a target through a pattern of racketeering conduct that is the proximate cause of monetary loss to the target.
One hugely detrimental series of transactions that, arguably, consist of a particularly fruitful conspiracy to defraud involves the student loan industry, with potential defendants/conspirators consisting of universities, government, media, loan servicers, and, in the case of private student loans, banks that make these predatory loans. Whether it might be possible to include members of Congress responsible for legislation exempting student loans from bankruptcy requirements and predatory lending laws (specifically, the Fair Debt Collection Practices Act) is a good question.
“It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce, or of the mails or of any facility of any national securities exchange,
(a) To employ any device, scheme, or artifice to defraud,
(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or
(c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person,
in connection with the purchase or sale of any security.”
In cases where securities are involved, Rule 10b-5 can be used to assert liability. In Lorenzo v. SEC, the U.S. Supreme Court held that paragraph (c) imposes liability on those who fraudulently disseminate false statements, even if the disseminators would not be liable under paragraph (b). Both the SEC and private citizens can enforce the requirements of the rule through lawsuits.
In Blue Chip Stamps v. Manor Drug Stores, the Supreme Court held that only purchasers or sellers of securities may bring a private action for damages under Rule 10b-5; however any member of the public may provide information to the SEC regarding possible violations of the federal securities laws.
Fraud actions modeled upon Rule 10b-5: Causes of action for failure to disclose or fraudulent disclosure
In cases not involving the sale of securities, Rule 10b-5 can be used by analogy to bring common law fraud actions. The following are ideas about circumstances in which these principles may be applied:
- Student loans
- Actions by the Fed that are not authorized by the Constitution and that are achieved by the creation of special purpose entities to do what is not permitted under Section 3(13) of the Federal Reserve Act (for example, making loans to financially troubled financial institutions like AIG during economic crises)
- Bailouts of major banks, insurance companies, automobile companies, and others
- Preferential government contracting to companies owned or associated with former high-level government appointees or members of the military-industrial complex
- FASAB 56 and other exemptions from public disclosure requirements that allow government and Mr. Global to avoid financial transparency
- Adoption of laws drafted by lobbyists for special interests, particularly where the lobbyists have previous government service and the laws are detrimental to the interests of the public and kept secret from the public and legislators at large (as opposed to leaders and members of committees that sponsor the legislation in bill form)
- Illegal extortion and blackmail of high-level legislative, judicial, and executive decision-makers
- Illegal wars justified by lies (e.g., weapons of mass destruction) in order to create “emergency” conditions under which laws can be evaded
- Legislation purposely adopted to enable federal government to exercise “emergency” powers
- Predatory lending in residential loan market for pump-and-dump profits by institutional investors and the power elite
Fraudulent inducement is a cause of action that involves misrepresentations to others that result in their making decisions or taking action that they would not if they knew the truth. Many young and impressionable students have been fraudulently induced to enter expensive educational programs that are unlikely to result in employment and induced to borrow large amounts to pay for the programs under terms they do not understand and assumptions that are unrealistic by those who will profit from such decisions.
Similarly, home buyers may be induced by government and private companies offering no- and low-down-payment loans to purchase homes and automobiles that are not sound investments and that they will likely lose in an economic downturn or in the event of unexpected adverse personal circumstances.
Breach of contract and breach of fiduciary duty actions
The use of concepts developed from causes of action based on breach of contract and breach of fiduciary duty can be a fruitful source of actions based upon malfeasance by public officials and contractors.
Eminent domain: Public taking
The laws of eminent domain, whereby the government may take property (usually real estate) for the good of the public at large—as when a highway is built—can be applied by analogy to instances of the government’s depriving individuals and small businesses of rightful profits or other personal property without just compensation. The argument goes that the government should pay the injured party the fair market value of the lost property. If a government executive (for example, a governor, mayor, or president) takes illegal action to cause the shutdown of small businesses, allegedly for the good of the public, is that a taking without just compensation? We would argue that it is.
Tortious interference with business
This cause of action may be directly applicable to cases in which, for example, government contracts are awarded fraudulently or otherwise not according to the law. Arguably, an executive order shutting down businesses for fake emergencies may be actionable against those who facilitated and carried out the orders requiring the closure of businesses. The damages are equal to the profits that would have been made had the businesses not been shut down.
An FDA order approving a medicine that is not effective or safe but sponsored by a company engaging in fraud, bribery, or extortion (as where the approving official(s) are the subject of blackmail or threats if they do not take the requested action) at the expense of a better, more effective, or safer drug could be characterized as tortious interference with business.
Class actions may be brought in state courts having favorable established precedents and laws and sympathetic state and federal regulators by similarly situated individuals and small businesses for physical damages (for example, health-related) due to corporate misdeeds.
3. Other Legal or Political Actions
Use of civil procedure discovery rules to obtain documents
Various state rules of civil procedure are required to be followed in state courts for civil actions. Rule 34 allows “discovery” (party- and case-related disclosure of relevant documents required as part of the process of preparing for trial), allowing a proposed party plaintiff to enforce a request for relevant documents before filing a civil action. While an attorney general or district attorney can obtain documents as part of a civil criminal investigation, private non-governmental parties can invoke the discovery rules, which include no express exemptions for allegedly classified or “state secret” documents. Liable parties may claim attorney-client, executive- or other privilege, but, often, they must justify any failure to disclose to a judge, who (if honest and not subject to control file or other untoward pressure) is a neutralizing influence. The judge can reject false claims of privilege interposed by liable parties purely for the sake of hiding evidence of wrongdoing.
Use of Freedom of Information Act to obtain information and documents
Recent administrations representing both Republican and Democratic parties have been loath to obey disclosure obligations under FOIA and analogous state laws. One avoidance tactic is to subcontract governmental functions to third parties, which then claim that they are not subject to FOIA. Bringing a lawsuit on this very issue in order to challenge this practice could set a useful precedent.
Additionally, one never knows what information one can obtain through a FOIA request, particularly when one refuses to give up and is willing to take governmental avoidance of disclosure and denials into the courts. One of the areas where we would most like to see a breakthrough is on FOIA requests related to the activities of the New York Fed on behalf of the U.S. government and as agent for the Exchange Stabilization Fund.
Creative use of boycotts is a useful method to gain public support and pressure corporate misbehavers to come clean, change their business practices, or disassociate from perpetrators of crimes against the public. A tried-and-true method used by corporate stockholders to address matters of concern about corporate behavior is confrontation of management at corporate annual meetings. Well-prepared media briefing packages posted on the Internet and emailed to congressional representatives and media are techniques that may enhance the chances of success in publicizing important misbehavior, misrepresentations to the public, failure to warn the public, and similar matters. Boycotts can also serve as a complementary action in support of litigation.
New media prison
During the Hamilton Securities litigation, Catherine and Carolyn regularly would provide transparency of people and companies engaged in corrupt or unethical practices. By making easily accessible on the Internet detailed accounts of damning information about the party, complete with citations and deep research, members of the media could write stories without having to spend a lot of time doing their own research. While there was never any formal admission that this transparency contributed to the outcome, several high-level players in board of directors and political roles lost their positions or career opportunities as the result of media articles created from research posted by a loose group of collaborating parties bringing transparency to and documentation of corruption.
Simple shunning has the potential to disable the careers and reputations of corporate wrongdoers and perpetrators of fraud on the American people. Refer to the ancient Greek play Lysistrata for an illustration of an even more drastic method for wives and lovers to put pressure on men to come clean. Another tactic is to make fun of wrongdoers’ greed, sociopathy, or narcissism through use of jokes, cartoons, and satire. For an excellent example, see CJ Hopkins’ hilarious Trumpocalypse essays.
Challenge to government subcontracting of essential government functions
One essential solution to the many problems that come with government’s outsourcing to private contractors (including their refusal to comply with FOIA requests by the public, improper use of confidential and private data, legal questions regarding status of mercenary forces that are not subject to military regulations and courts, and flouting of the rule of law) is to use government employees to perform essential government functions.
Anecdotal evidence indicates that even government bureaucrats cannot obtain information gathered under federal government contracts from contractors acting as agents of the government. However, under the common law of agency and case precedents going back for centuries, agents are not authorized beyond their authorization by the principal. Here, the principal (federal government) cannot legally delegate actions the government is not authorized to take (e.g., illegal actions or actions not authorized under financial statutes), and agents certainly cannot refuse to disclose their actions (that is, data collected or developed as agents) to the principal.
Resistance to vaccine passports and CBDCs
Taxpayers can resist increasing trends toward institution of global ID systems, vaccine passports, and CBDCs. Straightforward forms of resistance include observing “cash Fridays“39 and similar programs and refusing to patronize establishments that refuse to accept cash payments or require vaccine passports for entry. Small businesses can join the effort by providing incentives for cash payments for their goods and services. Solari offered free subscription months for subscribers to The Solari Report who elected to pay with cash, check, or coin. Other alternatives to CBDCs are community barter programs,40 community currencies,41 and the use of precious metals for business and consumer transactions. On the local level, small businesses can choose to carry their own accounts as they did in pre-Mastercard and Visa times. Any and all steps that reduce our dependency on digital financial transactions will contribute to positive resistance.
Passive resistance to improper or illegal government mandates
The public can make it harder for government to successfully impose mandates that damage small businesses and taxpayers (like the pandemic shutdowns and vaccine mandates) by making it difficult for officials to effectuate the mandates. An example of this type of resistance is the use of the employer and school forms developed by Solari that employees can present to their employers and parents can present to their children’s schools in reaction to announcements of Covid-19 vaccine mandates. Here, the enforcer of the mandate (employer or school) is informed of potential liability for any injuries to employees and students resulting from forced vaccinations and is put in the position of explaining how informed consent can be given by or on behalf of vaccine recipients (a virtual impossibility). Submitting the forms forces employers and schools to deal with employees and parents who are well educated regarding the potential risks of vaccination and the falsehoods by which the mandates are being justified by the central bankers leading the “Going Direct Reset.”
Breach of trust
A lawyer can be disbarred for committing breach of trust with respect to his or her clients. Usually, this occurs when the attorney uses client funds required to be held in a client trust account for his or her own purposes. We would argue that all office-holders who stood by while $21trillion in non-accountable adjustments against Treasury were made and disclosed publicly committed breach of the American people’s trust, as did the recipients of the stolen funds and the banks and government contractors who facilitated the unauthorized expenditures or transfers. Similarly, corporate managers responsible for facilitating illicit expenditures or deposits to private trust funds or who received stolen funds themselves are in breach of the trust of corporate stockholders who would not invest if they knew the truth.
Actions by Secretary of State in Individual States
Corporations and limited liability companies are creatures of state law and are formed under the laws of a state. In many cases, that state is Delaware, due to its pro-business laws and court systems, although, increasingly and for similar reasons, businesses are forming and locating in South Dakota. If a business other than a bank transacts business in a state other than its state of formation, it is required to register as a foreign corporation, partnership, or limited liability company in that other state. In the event a corporation violates state law or defaults on a state contract, the Secretary of State or Attorney General may be able to cancel the company’s charter or authority to transact business in that state. If no such authority exists, the state legislature could enact a law or, conceivably, a state agency could promulgate a regulation, that would permit such an action.
Limits on contracting opportunities for businesses that violate laws or default on contracts
Any federal, state, or local government, as part of the process of awarding contracts for the provision of goods and services, can condition the award on the absence of civil or criminal violations by the businesses competing for the contracts, or even on the competing businesses not being in default on any government contracts.
Following the Savings and Loan Crisis of the 1990s, Resolution Trust Corporation (RTC) instituted and made public just such “bad boy” provisions that prevented entities in default on any government contract from purchasing defaulted mortgage loans in RTC loan sales. As a result, at least some loans in default by investment banks were brought current. The SEC and state securities divisions often put “bad boy” limits on individual licensure to offer, sell, and provide advice regarding securities. “Bad boy” provisions limit violators from engaging in securities-related work for life, confirming that there is precedent for this type of action.
Limitations on state and local appropriations for universities whose academic operations and endowments demonstrate profound conflicts of interest
All universities benefit from state and local appropriations. Citizens can prompt legislators to revoke these appropriations when academic operations clearly support federal corruption. Consider the university scientists and doctors who sit on the FDA’s Vaccines and Related Biological Products Advisory Committee (VRBPAC), who voted on October 26, 2021 to administer experimental Covid-19 injections to up to 28 billion U.S. children ages 5 to 11. Given the deaths and injuries the injections have already caused in adults and children ages 12 and up, their decision cannot be viewed as anything other than genocidal. Taxpayers can let legislators know, in no uncertain terms, that they do not support financing educational institutions that engage in such destructive behaviors and investments.
Governmental and pension fund limits on investment
Federal, state, and local governmental entities as well as union, state, and other pension funds have control over the investment of billions, if not trillions, of dollars. They can institute policies that prohibit investment in the securities of companies with a history of law violations or other conduct that does not meet the standards of such funds. However, because private pension funds are governed by the provisions of ERISA (the Employee Retirement Income Security Act of 1974), any such limits must pass muster under that statute.
4. Actions Related to Criminal Violations
Crimes are crimes, whether committed on behalf of government to take out the leader of a foreign government, or by intelligence agencies or members of organized crime families at the direction of the Deep State to silence potential whistleblowers, or by handlers of politicians for the purpose of controlling votes by legislators or actions by office-holders. Once district attorneys and Attorney General offices have “come clean,” such crimes can be pursued by enforcers at the state and local levels. Most crimes are violations of state, not federal, statutes. The following sections outline just a few examples of potentially prosecutable criminal conduct tacitly supported in our current system of government.
Prosecutions related to murder and genocide
From the assassination of President Kennedy to the suiciding of Jeffrey Epstein, Enron executives, and others, murder as a last resort has proved the solution to a host of problems experienced in the maintenance of the U.S. government and its secrets. Typically, these murders seek to take out leaders and silence those who pose a threat of exposure of covert actions, secret illicit transactions, unsavory behavior of politicians and oligarchs, and criminal conduct.
Beyond murder of “bothersome” individuals, there is also genocide involving actions known to likely cause deaths of hundreds or thousands of people. When the governor of the second-largest state stands by or orders that Covid patients be moved from hospitals to nursing homes filled with the elderly, that is genocide. When political office-holders represent to the American people that there is no successful treatment for Covid-19 and make sure that doctors who say otherwise are threatened with the loss of their privileges or licenses to practice—all to justify the FDA’s granting of emergency use authorization of a dangerous experimental gene therapy—that, too, is genocide. When the CDC juices the Covid-19 statistics to hide the number of deaths of the recently vaccinated and stands by while children (who have virtually zero risk of getting, let alone dying from, the virus) are vaccinated, that’s attempted genocide.
Prosecutions related to extortion and blackmail
A major route for the control of politicians’ votes and actions is via the maintenance of control files. In such situations, “handlers” make clear the consequences of straying from positions that contribute to the profits and control of big business and the central banking cartel.
Prosecutions related to bribery
Accepting payments or anything else of value in exchange for actions such as approving a dangerous drug, looking the other way while toxins are released into the environment, voting a certain way in the legislature, or approving abusive government contracts or contracts that violate the law is bribery.
Prosecutions related to theft
Simple theft accounts for the disappearance of much of the taxpayer money missing from the books of the federal government and, to a lesser extent (because states and local governments cannot, or at least do not on a widespread basis, create their own currencies), local and state governments.
Prosecutions related to slush funds
Whether the stashing of taxpayer funds—in slush funds created by intelligence agencies or other covert branches of government, the Exchange Stabilization Fund, or single purpose entities created for the purpose of getting around finance laws—is strictly criminal will depend on the circumstances of a given situation. Nonetheless, we must be highly suspicious of the use of “off-balance-sheet” vehicles and take the position that a slush fund is improper unless it can be legally justified.
A similar situation presents itself when, for “national security” purposes, FASAB 56 is invoked to transfer funds from one account (the proper accounting convention) to another account in another agency or within the same agency created for the purpose of hiding the real use for the funds from taxpayers, and a “clean” audit opinion is furnished by auditing firms that are aware of the ruse (and, therefore, are co-collaborators in the deception).
Prosecutions of legislators for “contributions for votes”
Federal and state prosecutors and local district attorneys can bring criminal charges against legislators, from U.S. Congressmen and Senators to local city council members, for selling their votes in exchange for campaign contributions—and they may, at least in many cases, prevail. Such prosecutions are rare, however, and tend to take place more often at local than federal levels. In Cincinnati, for example, no fewer than three city council members were indicted during a single session; one, PG Sittenfeld, was indicted on federal bribery and extortion charges for soliciting campaign contributions from real estate interests in exchange for votes in favor of a downtown real estate development. It doesn’t take long, however, to find instances of outright admission by lobbyists and other partisan stakeholders that major campaign contributors’ favored bills are supported by legislators whose election campaigns accepted these same contributors’ substantial campaign contributions.
5. Structural Changes
The Treasury can issue money directly
In the U.S., many members of the public do not realize that under the Federal Reserve Act, the creation of money is achieved by means of actions by a privately owned bank—the Federal Reserve. This is called the “fractional reserve system” of banking. Under this existing monetary system, when the federal government spends money, it issues Treasury securities on which it must pay interest to the securities holders. In the past, Treasury securities holders consisted of a broad spectrum of investors, including pension funds, foreign investors, foreign sovereign wealth funds, and banks to hold as reserves. More recently, however, the demand for Treasury securities by foreign governments (such as China) has decreased, necessitating the purchase of Treasury securities by the Fed. The result is that the owners of the New York Fed in particular (that is, private international banks and, in turn, their owners and officials) exert an even greater level of control than already existed. There is nothing to prevent Congress from enacting new legislation to take back the origination of money from the Fed, thereby saving taxpayers the interest that would be payable on Treasury securities and placing control over the monetary system with the voters, as opposed to private banks.
Elimination of private armies
The problems created when mercenary armies, rather than U.S. military officers and enlisted men and women, are employed for enforcement and war-related functions are legion. Problems include use of torture, murder of civilians, private company control of classified information, and reliance on poorly trained or untrained employees for jobs that require technical expertise (such as the reported repair of helicopters by untrained workers employed by private military contractor DynCorp, which subsequently changed its name due to bad press). Ceasing the practice of contracting out military functions would save on both authorized and unauthorized expenses (otherwise known as waste, fraud, and abuse).
6. Covert Control and Operations
It is important to recognize that any effort to implement a reformation of the tax system and a cleaning-out of corruption will face opposition engineered by covert means, including by public and private intelligence agencies funded with our tax money. That means that plans to bring about these changes need capacity and resources in place to deal with such operations and the people and players under covert control.
VII. Next Steps
The challenges that we have described are duplicated in many countries throughout the world. If you are not a U.S. citizen or resident, we hope you will attempt a similar analysis for your nation, territory, or jurisdiction.
If you are a U.S. citizen or resident, the time has come for you to take action. The challenge for each of us is to identify and organize with others of like mind and find a pathway to the future that is both practical and empowering.
Each person is different. Our locations, experiences, and skills vary. So do our resources and networks. However, we all have something to bring to the effort through one or more of a variety of actions that each of us alone can identify.43
- Discuss: One thing we can each do is encourage a discussion about the growing criminality that plagues our tax systems and expenditures. To help our subscribers do so, we have made this presentation open to the public, so that you can forward this link to family, friends, and colleagues.
- Lobby: Your taxes fund a variety of government officials, including District Attorneys, Attorney Generals, and Judges who you pay to enforce the law. You can encourage them to join the discussion and organize and take action.
- Legislate: Are you a state legislator or do you work in state government? You may have the ability to assert a variety of states’ rights to address corrupt use of federal taxes or expenditures and mandates.
- Speak out: Do you have personal knowledge of corruption in the tax system? Document, publish, and bring transparency in a manner that can provide evidence to support litigation.
- Offset: If you have a credit card or student loan debt with one of the New York Fed member banks and have access to sound legal advice and want to exercise a common law right of offset—and are prepared to manage through the legal repercussions—this may be a possibility for you.
- Question: Are you a beneficiary of the federal Thrift Savings Plan or a pension fund with a large investment in U.S. Treasury securities? You may want to invite them into the discussion or ask them why they are not taking action on your behalf.
- Litigate: Are you an attorney or knowledgeable about tax law? Perhaps you can organize or lead a litigation effort.
- Finance: Is there a law firm, organization, or group of taxpayers willing to file litigation? You may want to help finance them.
- Educate: Are you are a writer, documentary filmmaker, or journalist? You can support efforts to organize a wide variety of activities to end the practice of using tax monies in illegal or wasteful ways.
- Don’t quit: A significant clean-up of the tax system requires a broad consensus. That will take time and requires a process that may be frustrating. It is important to stick with it.
- Do quit: Is your company or agency helping implement corrupt practices? Stop helping. Just quit.
- Pray: At its root, we are dealing with a spiritual war. Some of us prefer to work quietly behind the scenes. Prayer is one way that can be quite effective.
As you look for opportunities to bring about positive change, keep in mind that the globalists who are centralizing power would love to use our efforts to further theirs. They would love to get us to support further digitization of the financial system under their control by promoting cryptocurrencies. They would love to use our efforts to organize to target us as domestic terrorists. They will try to channel our dissatisfaction in the direction of weakening sovereign governments so they can exercise greater control over voting and election processes and fiscal policy.
We wish to strengthen the rule of law. We wish to strengthen our individual sovereignty and national sovereignty representing the electorate. So, whatever you do, it is good to keep in mind our ultimate goal—human freedom supported by the rule of law.
What will we do about our taxes? From the day in 1999 when we realized that a financial coup was underway, we have discussed this question many times. We are the ones who must return our finances to lawful and productive management. Can we do it? Can we do it together? We invite you to join the discussion. The time to act is now.
Here is the link—pass it on.
Appendix: An Overview of the U.S. Taxation System
The following information provides an outline of the important laws, agencies and players collecting, managing or impacting US taxes and tax policy. If the reader would like more detail on any aspect of most of these, it is readily available through online encyclopedias.
I. Key Laws
II. Taxation Players
III. Players for Holding and Control of Government Tax Money and Other Assets
V. Systems for Collection of Tax and Financial Data and Related Regulatory and Enforcement Capacity
VI. Federal Agencies with Significant Covert Operations and Financial Market Intervention History
VII. International Programs, Institutions, and Treaties that Impact U.S. Financial Management and Tax Policy
VIII. Agencies with Significant Expenditure or Credit Operations that Regularly Fail to Comply with Financial Management Laws or Engage in Illegal Operations
X. Conflicts of Interest Impacting Tax Policy
XI. Real Estate
XII. Potential Repositories and Intermediary Accounts for Secret Programs and Money Laundering
XIII. Proposed Biden Administration Changes
I. Key Laws
A. U.S. Constitution
a. Appropriations Clause
b. Statement of Accounts Clause: Requires the government to provide a detailed account of all the money it spends as approved by Congress
c. No taxation without representation
d. 11th Amendment: Citizen may not sue own state in Federal court
B. Federal statutes
a. Federal Reserve Act (establishes Federal Reserve System)
b. Anti-deficiency Act (no spending in excess of appropriations)
c. Accounting and Auditing Act of 1950
d. Miscellaneous Receipts Act (funds received must be deposited in Treasury with exceptions for:
2. Collections (e.g., filing fees, permits)
3. Revolving funds
e. Gold Reserve Act (establishes Exchange Stabilization Fund)
f. Federal Financial Managers Integrity Act of 1982
1. Minimum standards of accounting at executive agencies
2. Agency heads required annually to state whether financial accounts compliant and if not compliant produce statement of weaknesses and plans to fix them
g. Government Securities Act of 1986: Provides that Treasury Secretary may regulate brokers and dealers in U.S. government securities and authority is shared with Securities and Exchange Commission (SEC), Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC)
h. Chief Financial Officers Act of 1990
1. Requires 24 agencies to establish Chief Financial Officer (CFO) offices
2. Deputy Director of Management in Office of Management and Budget (OMB) to coordinate agency CFOs and Controller of the Office of Federal Financial Management to assist (appointed by President)
3. OMB submits annual report to Congress on how agencies and quasi-government agencies are complying with financial reporting requirements
4. Agency CFOs responsible for preparing financial statements for regular audit, putting together uniform financial management system that is useful in evaluating performance of agency
i. Federal Credit Reform Act of 1990
j. Government Performance and Results Act of 1993
1. Requires executive agencies to develop strategic plans every three years, annual performance plans, and report annually on their plans’ progress
2. Strategic plans require agencies to consult with Congress and “define their missions, establish results-oriented goals, and identify the strategies that will be needed to achieve those goals”
3. OMB responsible to assure that plans are consistent with President’s budget and administration policies
4. Problem with lack of top leadership commitment to results
k. Government Management Reform Act of 1994
1. Requires annual audited financial statements from all CFO Act agencies
2. Annual audit by Government Accountability Office (GAO) of overarching financials
3. Publicly available reports include discussion of the overall financial position of the offices, activities, and projects of each agency and the results of its operations
l. Federal Financial Management Improvement Act of 1996
1. More thorough audit reports
2. Uniform standards
3. Failure report followed up with remediation plan to bring agency into compliance within three years
m. Federal Funding Accountability and Transparency Act of 2006: Created public site with comprehensive information on each federal award (USASpending.gov)
n. GPRA Modernization Act of 2010
1. Strategic plans every four years
2. Congressional consultation every two years and consultation with appropriations and authorizing committees periodically
3. More information on how to achieve goals
4. Review and respond process with OMB
5. Scaling responses of goals not met
6. OMB must submit performance plans with each budget
o. Digital Accountability and Transparency Act of 2014
1. Integrated the reporting requirements of the CFO Act and the American Recovery and Reinvestment Act of 2009 (a recession stimulus package)
2. Expanded government spending reporting requirements
3. Agencies required to post information about their budgets—including funds spent, funds remaining to be spent, and funds reprogrammed or transferred—in a form that can be downloaded in bulk
4. Requires audits of submitted data
II. Taxation Players
1. 50 states
2. District of Columbia (federal district)
3. U.S. territories (unincorporated)
i. Puerto Rico, Guam, U.S. Virgin Islands, and Northern Mariana Islands (organized, residents are U.S. citizens); American Samoa (not organized, residents are U.S. nationals)
ii. If organized, subject to Organic Act, which establishes territorial government
iii. U.S. citizens: Can’t vote in federal elections, represented and can vote in Congressional committees but have no Congressional floor vote
c. Local (in states)
B. Government corporations, political subdivisions, and other government entities and functionalities
a. Departmental undertakings: Operated by government, revenues go into government treasury, not a separate entity (e.g., Federal Housing Administration)
b. Government corporation is business owned by government (e.g., U.S. Postal Service) or public benefit corporation (such as bonding agencies)
c. Agencies/instrumentalities: Organization in machinery of government responsible for oversight and administration of given functions
d. Municipal utilities
e. School districts
C. Terms and systems for hybrid public-private and other pools of (or including) government money
a. Pooled insurance arrangements among local entities (e.g., Public Entities Pool of Ohio)
b. Pooled investment and collateral systems (e.g., Ohio Pooled Collateral System),44 where local government-owned assets are deposited in enrolled financial institutions and monitored by the state auditor
c. Taxing districts (definition: counties, townships, cities, and incorporated towns and villages, school, road, park, sanitary, mosquito abatement, forest preserve, public health, fire protection, river conservancy, tuberculosis sanitarium, and any other municipal corporations or districts with the power to levy taxes)
d. Industrial development projects and bond funds
e. State universities (land grant colleges [e.g., Ohio State] versus others)
f. Federal/state programs (Medicaid, Supplemental Nutrition Assistance Program)
g. Governmental authority (definition: the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank, or other entity exercising executive, legislative, judicial, taxing, regulatory, or administrative powers or functions of or pertaining to government [including any supranational bodies such as the European Union or the European Central Bank])
h. Quasi-governmental organization (definition: one that has some, but not all, of the defining characteristics of a government, e.g., hospitals, certain electricity grid exchanges and operators, government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation [FHLMC or “Freddie Mac”] and Federal National Mortgage Association [FNMA or “Fannie Mae”], and common pools resource associations) (definition: created and funded by government but enjoy operational and political independence, e.g., Federal Reserve, FNMA—workers are private-sector employees)
D. Regional and multi-jurisdictional agencies and any related entities with significant financial reserves (e.g. Tennessee Valley Authority [TVA])
E. International organizations
a. North Atlantic Treaty Organization (NATO)
b. United Nations (UN)
c. International Monetary Fund (IMF)
d. World Bank
e. Bank for International Settlements (BIS)
F. Other private players
a. Think tanks
1. Heritage Foundation
2. Brookings Institution
3. Council on Foreign Relations
4. Cato Institute
5. Ludwig von Mises Institute
6. RAND Corporation
7. American Enterprise Institute
8. Center for American Progress
9. National Bureau for Economic Research
10. Electronic Privacy Information Center
11. Peterson Institute for International Economics
12. Center for Strategic and International Studies
13. Urban Institute
14. Economic Policy Institute
15. Aspen Institute
16. Woodrow Wilson International Center
17. Hoover Institute
18. Manhattan Institute
19. Carnegie Endowment for International Studies
d. Corporate leaders and political action committees (PACs)
e. Associations and lobbyists
1. National Rifle Association (NRA)
2. American Israel Public Affairs Committee (AIPAC)
4. Home Builders
5. American Medical Association (AMA)
6. AT&T and telecommunications industry
7. Alphabet Inc.
8. Business Roundtable
9. Blue Cross Blue Shield
10. American Hospital Association
11. Pharmaceutical industry
12. Open Society Policy Center (Soros)
13. National Association of Realtors
14. U.S. Chamber of Commerce
f. Large campaign contributors (see OpenSecrets.org)
1. Koch brothers
3. George Soros
4. Michael Bloomberg
1. Ford Foundation
2. Rockefeller Foundation
3. Kaiser Family Foundation
4. WK Kellogg Foundation
5. Bill & Melinda Gates Foundation
6. Clinton Foundation
7. Carnegie Foundation
h. University corporations and endowments
i. Other clubs and groups wielding power
2. Skull and Bones
j. Political parties
III. Players for Holding and Control of Government Tax Money and Other Assets
a. Key officials
1. Chairman and governors of federal reserve banks
2. Heads of bank regulatory agencies
3. Chief Financial Officers (CFOs) of government agencies, especially HUD and DOD
4. Director of Management and Budget (OMB)
5. Chairman of SEC
6. U.S. representatives to Financial Stability Board (FSB) of BIS
7. Treasury Secretary
8. Chairs and ranking members of Senate and House budget, appropriations, and key agency oversight committees (e.g., Housing and Defense)
9. U.S. Trade Representative
10. Comptroller General (head of GAO)
11. Director of National Intelligence (as to national securities exemptions)
12. Agency inspectors general
1. U.S. Treasury (printing function, issuance of U.S. debt)
2. Internal Revenue Service (IRS) (taxing function)
3. GAO (audit function)
4. SEC (regulating transactions)
5. OMB (budget and management functions)
6. Congressional Research Service (CRS) (research function)
c. “Central bank”: The Federal Reserve45 is referred to as the U.S. central bank, but actually it is privately owned by its private member banks, even though it has great power in monetary decision-making
1. Seven members of Board of Governors of Federal Reserve System are nominated by U.S. President and confirmed by U.S. Senate
2. Operates U.S. bank settlement system (check clearing, FedWire, ACH system, coin distribution)
3. Gathers data from banks on a district level
4. Regulates state-chartered Federal Reserve member banks and bank and thrift holding companies
5. Funded primarily from interest on securities traded in open market operations, with surplus transferred to Treasury
6. Jerome Powell current chair
7. Twelve regional, separately incorporated Federal Reserve Banks, each with nine-member boards and 24 branch banks
8. Operate as depositories and clearing agents for federal government
9. Operate as primary dealers, underwriters, or debt servicers for federal government
10. Provide similar functions for state and local governments
11. Manage deposits, transactions, and assets for taxpayers and report these data to government (e.g., Bank Secrecy Act)
d. Government regulatory control over private financial institutions
1. Federal Reserve regulates federally chartered banks
2. Office of the Comptroller of the Currency (OCC): Regulates banks chartered under the National Bank Act and federal savings associations chartered under the Home Owners’ Loan Act
3. Office of Thrift Supervision regulates savings banks and savings &/ loans (S&Ls)
4. National Credit Union Administration regulates credit unions and administers the National Credit Union Share Insurance Fund, which insures credit union deposits
5. Federal Savings and Loan Insurance Corporation (FSLIC) insures savings and banking institution deposits
e. Shadow banking: Unregulated financial institutions engage in mortgage and other loans, REPOs, mortgage- and asset-backed securitization vehicles and other credit derivatives, check cashing, and other financial activities that do not fall under the definition of “banking” (i.e., taking deposits and making loans) and, therefore, are not regulated as banks
f. Fractional reserve banking system results in creation of money at bank level through loans for which the bank need only hold a percentage in “reserve”
g. U.S. government accounts are held in and transactions cleared through [and debt serviced by] member banks of the New York Fed as depository for U.S. government
h. Bullion banks clear transactions in gold (Barclay’s, Deutsche Bank, JPMorgan Chase, HSBC, UBS AG, ScotiaMocatta)
i. Exchange Stabilization Fund (slush fund within Treasury started with funds seized from Nazis)
1. Authorized in Gold Reserve Act
2. Can be used to deal in foreign currencies, hold U.S. foreign exchange and special drawing rights (SDR) assets, and to provide financing to foreign governments
3. All transactions must be approved by U.S. Secretary of Treasury
4. Monthly reporting to banking committees of Congress
5. Audit supervised by Treasury audit group
6. Managed by New York Fed
B. Other large depositories for large funds held for U.S. citizens
a. Pension funds (insured by Pension Guaranty Insurance Fund)
2. State and local government employees
3. Large corporations
b. Other retirement-related funds
3. College savings funds
c. Securitization vehicles holding obligations
1. Home mortgages
2. Commercial mortgages
3. Car loans
4. Student loans
a. Local fiscal officers and auditors (elected or appointed)
b. Audits by private auditing firms
a. Income tax (including U.S. residents abroad and corporations/partnerships)
1. Personal income tax
2. Small business and farm income tax
3. Corporate income tax
b. Payroll taxes
c. Federal portion of gas taxes
d. Estate tax
e. Gift tax
f. Capital gains tax
g. National park entrance fees
h. Carbon taxes
i. Taxes on foreign assets
j. Federal agency user fees (e.g., SEC registration)
k. Fines and penalties
l. Court costs
m. Telecommunications fees and taxes
a. State portion of sales tax
b. Income tax (including state equivalents to federal taxes)
c. Personal property tax (e.g., cars)
d. Estate tax
e. Tolls for bridges and highways
f. State park entrance fees
g. Franchise and use taxes
h. State agency user fees (e.g., registering corporate entities)
i. Sales and value-added taxes
j. Court costs
k. Fines and penalties
a. Sales taxes
b. Property tax (for schools and local expenditures for garbage, police, fire, etc.)
c. Car and truck licensing and miscellaneous (dogs, fishing)
d. Court costs
e. Utilities taxes
f. Fines and penalties
D. Tax exemptions
a. Interest on tax-exempt bonds
b. Non-profits: 501(c)(3) and (4)
V. Systems for Collection of Tax and Financial Data and Related Regulatory and Enforcement Capacity
A. IRS: Collects financial information for purpose of administering tax laws
B. State and local taxing authorities
C. NSA (supposedly collects data on U.S. citizens only if they transact with non-U.S. parties)
E. Other federal government and military intelligence agencies (including, for example, the Defense Advanced Research Projects Agency [DARPA], which makes investments in breakthrough technologies for national security)
F. Department of Commerce (census data)
G. U.S. Postal Service/iCOP (Internet Covert Operations Program)
H. PROMIS (originated at Department of Justice [DOJ])
I. Private government contractors (e.g., JPMorgan Chase as administrator of Supplemental Nutrition Assistance Program and other government benefits)
J. Telecommunications companies (e.g., AT&T): Provide customer information in response to federal (DOJ) subpoenas
K. Private social media, tech, and search engine companies (e.g., Facebook, Yodlee): Sell data
VI. Federal Agencies with Significant Covert Operations and Financial Market Intervention History
B. Department of State
C. Department of Defense
F. Department of Housing and Urban Development
G. Department of Justice
H. Department of Energy
I. Backdoor players
a. Five Eyes (intelligence alliance under treaty for joint cooperation in signals intelligence among Australia, Canada, New Zealand, United Kingdom, and U.S.)
b. Israeli cybersecurity
c. Corporate contractors
d. Related AI and “control file” systems
J. Efforts to expose U.S. financial secrets
a. Edward Snowden: Former NSA systems contractor who exposed mass surveillance on U.S. people and European allies of U.S. (published by The Guardian)
b. Julian Assange/WikiLeaks: Released classified documents, initially of Chelsea Manning and later including terms of secret U.S. free trade agreements
c. Chelsea Manning: Intelligence analyst, largest release of classified documents to WikiLeaks
d. Colleen Rowley: FBI investigation
e. Mordechi Vinunu: Nuclear technician abducted by Mossad, revealed secrets of Israeli nuclear program
f. Sherron Watkins: Financial fraud at Enron
1. Jewel v. NSA: State secrets privilege preempted by FISA legislation
1. ACLU v. Clapper: 2nd Circuit ruled bulk metadata collection was unauthorized by the USA Patriot Act
h. Daniel Ellsberg: RAND analyst who exposed Pentagon Papers (unreported military ventures in Laos and Cambodia) to New York Times
i. Gary Webb: Reporter for San Jose Mercury News—exposed CIA dealing in drugs for arms
VII. International Programs, Institutions, and Treaties that Impact U.S. Financial Management and Tax Policy
A. International institutions
1. Example of Iceland turning down aid
b. World Bank and Asian version
d. BIS (bank for central banks)
1. Financial Stability Board imposing international standards and immunities upon country members
e. World Trade Organization (WTO)
f. World Health Organization (WHO)
B. Major U.S. treaties under Trade Promotion Authority (note effects on sovereignty and secrecy in negotiation)
a. Multilateral free trade agreements
1. North American Free Trade Agreement (NAFTA)
2. Trade in Services Agreement (TiSA)
3. Trans-Pacific Partnership (TPP)
4. Transatlantic Trade and Investment Partnership (TTIP)
5. Environmental Goods Agreement (EGA)
b. Trade and Investment Framework Agreements (TIFAs)
c. Bilateral free trade agreements (20 countries)
C. Programs: U.S. guarantee and trade promotion programs
VIII. Agencies with Significant Expenditure or Credit Operations that Regularly Fail to Comply with Financial Management Laws or Engage in Illegal Operations
A. DOD: Navy, Army, Air Force
A. Federal: Procedures governed by Federal Rules of Evidence and Federal Rules of Civil Procedure (Note: Opinions are published on PACER [Public Access to Court Electronic Records])
a. Supreme Court
1. Hears primarily cases of constitutionality and conflicts among federal circuits
2. Nine Justices
3. Appointed by President with consent of Senate Judiciary Committee
4. Takes only cases it wants (with certain exceptions, no right to appeal to Supreme Court)
b. Circuit courts
1. Court of appeal for district court cases
2. Appeals are to U.S. Supreme Court
3. Twelve multi-state circuits
4. U.S. Court of Appeals for Federal Circuit
i. Nationwide jurisdiction in a variety of subject areas, including international trade, government contracts, patents, trademarks, certain money claims against the United States government, federal personnel, veterans’ benefits, and public safety officers’ benefits claims
ii. Appeals come from federal district courts, U.S. Court of Federal Claims, United States Court of International Trade, and U.S. Court of Appeals for Veterans Claims
iii. Reviews certain administrative agency decisions
- U.S. Trademark Trial and Appeal Board
- U.S. Patent Trial and Appeal Board
- Boards of Contract Appeals
- U.S. Merit Systems Protection Board
- Congressional Office of Compliance
- Government Accountability Office Personnel Appeals Board
- U.S. International Trade Commission
iv. Judges appointed by President with advice and consent of Congress
c. District courts
1. Hear cases involving federal laws and have “pendant” jurisdiction over related state claims
2. Twelve districts
3. District judges appointed by President with consent of Senate Judiciary Committee
4. Finders of fact (jury or judge)
5. Appeal only for errors of law or procedure, not facts
6. Local [procedural] rules (including additional rules of individual judges)
d. Bankruptcy court
e. Court of Federal Claims (for claims against federal government)
1. Thirteen judges and 12 senior judges
2. Based in Washington, DC
3. Takes vaccine claims under National Vaccine Injury Compensation Program (no-fault compensation program whereby petitions for monetary compensation may be brought by or on behalf of persons allegedly suffering injury or death as a result of the administration of certain compulsory childhood vaccines) under National Childhood Vaccine Injury Act of 1986, which exempts pharmaceutical companies from vaccine claims
B. State courts (example: Ohio – procedures established by Ohio Rules of Civil Procedure and Ohio Rules of Evidence)
a. Supreme court
1. Established under Ohio Constitution
2. Justices elected in statewide elections
3. Seven justices
4. Types of cases
i. Cases from district courts where two or more districts
ii. Cases dealing with state and federal constitutional issues
iii. All cases where death penalty imposed
iv. Original jurisdiction to issue extraordinary writs: habeas corpus (unlawful imprisonment), mandamus (forcing public official to take action), procedendo (forcing lower court to decide case), prohibition (ordering lower court to stop abusing or usurping judicial functions), quo warranto (against a person or corporation for usurpation, misuse or abuse of public office or corporate office or franchise)
v. Reviews of certain administrative cases (e.g., involving Public Utilities Commission)
5. Exclusive authority to regulate practice of law
6. Authority to prescribe rules governing practice and procedure in all courts of the state and to exercise general superintendence over all state courts
7. Disqualification of lower state court judges
b. State district courts of appeal (note: some small states, e.g., Nebraska, don’t have them)
1. Twelve districts
2. Judges elected to six-year terms on non-partisan ballot
3. Governor fills vacancies between elections
c. County court
1. Common pleas: includes domestic relations division, takes all foreclosure cases
2. Probate (combined with juvenile in some counties)
3. Judges elected; magistrates appointed
d. Municipal (lowest) court (actions under $15,000): Cases can be elevated by party to common pleas
1. Small claims ($5,000 maximum): Cases can be elevated to municipal by party
a. Party legitimately affected by specific facts
b. Re: Constitutionality determination: Private rights of person or property must be in jeopardy
c. The dispute sought to be adjudicated must be presented in an adversary context and in a form historically viewed as capable of judicial resolution (Sierra Club v. Morton, 405 US 727 (1972))
d. Use of state secrets privilege
X. Conflicts of Interest Impacting Tax Policy
B. Revolving door for politicians to think tanks, universities, and private corporations
C. Political contributions (including party financing) versus interests of constituents
D. Interests of appointees, bureaucrats, and corporate leaders in promotions, bonuses, and share price increases (e.g., DOJ attorneys and inspectors general)
E. Control files
F. Fear of unemployment and other adverse consequences on part of bureaucrats
G. University income from private contracts versus interests of students and education versus interests in publishing necessary for tenure
H. Federal agency employees’ right to patent income versus service to citizens (e.g., CDC)
I. Kickback systems (technically legal, such as book deals, and illegal such as cash cards to offshore accounts)
XI. Real Estate
A, Government real estate lending and guaranty agencies
a. Federal Housing Administration (FHA)
b. Department of Agriculture Rural Housing Administration
c. Department of Defense (DOD)
d. Veterans Affairs (VA)
B. Quasi-governmental corporations
a. Fannie Mae: Secondary market for affordable home loans, overseen for charter purposes by HUD (rescued by U.S. government during financial crisis)
b. Freddie Mac: Secondary market for affordable home loans, overseen for charter purposes by HUD (rescued by U.S. government during financial crisis)
c. Farmer Mac: Secondary market for farm loans
d. Federal Home Loan banks: Secondary market/intermediary lenders to financial institutions that make affordable housing loans
C. Zoning, building code, and permitting and taxing systems (local)
XII. Potential Repositories and Intermediary Accounts for Secret Programs and Money Laundering
A. Secret space programs
B. Secret military installations (e.g., Colorado) and underground bases and transportation systems
C. Secret military inventions or vehicles
D. Undisclosed intelligence agency operations
E. Foundations (tax advantaged), for example, Gates, Trump, Clinton
F. Fraudulent/non-existent FHA and other government loans (i.e., money laundering)
G. Money hidden as “national security” secrets under other agency accounts under FASAB 56
H. Undocumentable adjustments against Treasury (i.e., lost in audits) at DOD, HUD, Army
XIII. Proposed Biden Administration Changes
A. Increases in central control of land and real estate
a. Taxation of unrealized gains
b. Opportunity Zones
B. Climate change proposals and Green New Deal
C. Media tax giveaways
D. Injection mandate fines
1 “The Exchange Stabilization Fund with Rob Kirby,” Solari Report, March 9, 2017. https://home.solari.com/the-exchange-stabilization-fund-with-rob-kirby/
2 Aruna Viswanatha and Brett Wolf. “HSBC to pay $1.9 billion U.S. fine in money-laundering case.” Reuters, December 11, 2012. https://www.reuters.com/article/cbusiness-us-hsbc-probe-idCABRE8BA05M20121211
3 John Titus. All the Plenary’s Men, April 28, 2017. https://www.youtube.com/watch?v=2gK3s5j7PgA&t=2146s&ab_channel=BestEvidence
4 Catherine Austin Fitts. 2nd Quarter 2019 Wrap Up – The State of Our Currencies: The End of Currencies. Solari Report, Vol. 2019, No. 4. https://home.solari.com/the-state-of-our-currencies-take-two/
5 John Titus. “The Going Direct Reset.” In: 2020 Annual Wrap Up – The Going Direct Reset. Solari Report, Vol. 2021, No. 1, pp. 14-83. https://home.solari.com/2020-annual-wrap-up-the-going-direct-reset-pdf-now-available/
6 John Titus. “Central Bank Digital Currencies: Human Data-Mining Goes Global.” In: 2nd Quarter 2021 Wrap Up – CBDCs: Why You Want to Hold on to Your Cash. Solari Report, Vol. 2021, No. 3. https://home.solari.com/coming-thursday-2nd-quarter-2021-wrap-up-cbdcs-why-you-want-to-hold-on-to-your-cash-with-john-titus/
7 Corey Lynn. “The Global Landscape on Vaccine ID Passports and Where It’s Headed: Part 1.” Corey’s Digs, June 28, 2021. https://www.coreysdigs.com/global/the-global-landscape-on-vaccine-id-passports-and-where-its-headed-part-1/
8 Corey Lynn. “The Global Landscape on Vaccine ID Passports Part 2: How Your Digital Identity Is Moving to The Blockchain for Full Control Over Humans.” Solari Report, July 26, 2021. https://home.solari.com/the-global-landscape-on-vaccine-id-passports-part-2-how-your-digital-identity-is-moving-to-the-blockchain-for-full-control-over-humans/
9 Corey Lynn. “The Global Landscape on Vaccine ID Passports Part 3: The Key Implementers of Your Digital Identity onto The Blockchain.” Solari Report, August 9, 2021. https://home.solari.com/the-global-landscape-on-vaccine-id-passports-part-3-the-key-implementers-of-your-digital-identity-onto-the-blockchain/
10 Corey Lynn. “The Global Landscape on Vaccine ID Passports Part 4: BLOCKCHAINED. Solari Report, August 26, 2021. https://home.solari.com/the-global-landscape-on-vaccine-id-passports-part-4-blockchained/
11 Elga Bartsch, Jean Boivin, Stanley Fischer, and Philipp Hildebrand. Dealing with the next downturn: From unconventional monetary policy to unprecedented policy coordination. BlackRock Investment Institute, August 2019. https://www.blackrock.com/corporate/literature/whitepaper/bii-macro-perspectives-august-2019.pdf
13 Jessica Anderson and Tim Prudente. “Fells Point businesses threaten to withhold taxes if Baltimore does not address crime, drug dealing and other issues.” The Baltimore Sun, June 8, 2021. https://www.baltimoresun.com/maryland/baltimore-city/bs-md-ci-fells-point-letter-20210608-k3gjlrsnzbhnzjrcnh6h2tcdii-story.html
14 Catherine Austin Fitts. “Book Review: The Edge of the World by Michael Pye.” Solari Report, Decmber 29, 2020. https://home.solari.com/book-review-the-edge-of-the-world-by-michael-pye/
15 For example, the SAM.gov website is the official U.S. government site for registering to do business with the U.S. government. According to the site, “reports can be used to support t analysis of federal spending including geographical analysis, market analysis, and analysis on the impact of the congressional and presidential initiatives in socio-economic areas such as small business spending.” One can search lists of U.S. government contractors by state at https://www.governmentcontracts.us/government-contractors/. The Small Business Administration (SBA) maintains a list of prime U.S. government contractors with subcontracting plans at https://www.sba.gov/document/support-directory-federal-government-prime-contractors-subcontracting-plans. Finally, a list of available government contracting reports can be found at https://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0029880&sys_kb_id=4c3a0e5d1b5c3c909ac5ddb6bc4bcb3c&spa=1. Private sources include https://washingtontechnology.com/toplists/top-100-lists/2020.aspx (by calendar year), https://dsm.forecastinternational.com/wordpress/2021/02/02/top-100-defense-contractors-2020/, https://washingtontechnology.com/articles/2021/06/18/top-100-2021-welcome.aspx, https://about.bgov.com/top-defense-contractors/, and https://www.govexec.com/magazine/2010/08/top-100-defense-contractors/32143/.
18 “The Corruption and Compromise of the NSA with William E. Binney.” Solari Report, June 28, 2017. https://home.solari.com/the-corruption-and-compromise-of-the-nsa-with-william-e-binney/
19 “The Future of Freedom: An Interview with NSA Whistleblower William Binney” (a feature interview by Richard Grove). Tragedy and Hope. https://tube.solari.com/wp-content/uploads/2021/10/NSA-Whistleblower-William-Binney-interviewed-by-Richard-Grove_Tragedy-and-Hope.mp4
21 U.S. Immigration and Customs Enforcement. “HSBC admits to anti-money laundering and sanctions violations following an HSI El Dorado Task Force investigation. December 11, 2012. https://www.ice.gov/news/releases/hsbc-admits-anti-money-laundering-and-sanctions-violations-following-hsi-el-dorado
22 The Solari Report. “JPMorgan Chase: Selected Legal, Regulatory, and Enforcement Settlements, 2002 to 2019.” https://home.solari.com/wp-content/uploads/2019/12/JPMorgan-Chase-Selected-Settlements.pdf
23 Catherine Austin Fitts. “Real Deal: CSC DynCorp & the Economics of Lawlessness.” Solari Report, July 25, 2017. https://library.solari.com/real-deal-csc-dyncorp-the-economics-of-lawlessness/
24 For an archived 2014 description of the PRISM software published by the Privacy and Civil Liberties Oversight Board, see https://web.archive.org/web/20150218223115/http://www.pclob.gov/library/702-Report.pdf.
25 Mark Skidmore and Catherine Austin Fitts (with Rob Kirby and David Pare). “Missing Money Update: Thrift Savings Fund—Treasury Account 026×6153.” Solari Report, August 3, 2020. https://missingmoney.solari.com/missing-money-update-thrift-savings-fund-treasury-account-026×61531/
26 “Strong Towns with Chuck Marohn.” Solari Report, August 5, 2017. https://home.solari.com/strong-towns-with-chuck-marohn/
27 “1st Quarter 2020 Wrap Up: The Real Deal on Going Local – The Infrastructure Challenge with Chuck Marohn.” Solari Report, April 18, 2020. https://home.solari.com/1st-quarter-2020-wrap-up-the-real-deal-on-going-local-the-infrastructure-challenge-with-chuck-marohn/
29 Robert F. Kennedy, Jr. “Dr. Fauci, Mr. Hyde: NIAID’s Barbaric and Illegal Experiments on Children.” Chapter 7 in The Real Anthony Fauci: Bill Gates, Big Pharma, and the Global War on Democracy and Public Health (pp. 243-256). New York: Skyhorse Publishing; 2021. https://childrenshealthdefense.org/fauci_info/
30 Catherine Austin Fitts. “The Myth of the Rule of Law or How the Money Works: The Destruction of Hamilton Securities Group.” 2001. https://home.solari.com/wp-content/uploads/2015/myth_of_the_rule_of_law.pdf
31 Catherine Austin Fitts. Dillon Read & Co. Inc. and the Aristocracy of Stock Profits. Solari, Inc., 2005, 2021. https://dillonreadandco.com/
32 Catherine Austin Fitts. “The Clinton Administration: Progressives for For-Profit Prisons.” Chapter 10 in Dillon Read & Co. Inc. and the Aristocracy of Stock Profits. Solari, Inc., 2005, 2021. https://dillonreadandco.com/prisons/
33 Catherine Austin Fitts and Solari team. “Coming Clean: Building a Wonderful World.” Solari Report, first published July 4, 2004. https://home.solari.com/coming-clean/
34 “1st Quarter 2021 Wrap Up—Take Action 2021, Part 1: Loosen Technology’s Grip on Your Mind with Corey Lynn.” Solari Report, April 22, 2021. https://home.solari.com/coming-thursday-1st-quarter-2021-wrap-up-take-action-2021-part-i-loosen-technologys-grip-on-your-mind-with-corey-lynn/
35 Catherine Austin Fitts. “Unpacking Your Financial Ecosystem.” Solari Report, March 23, 2017. https://library.solari.com/unpacking-your-financial-ecosystem/
36 Catherine Austin Fitts. “Book Review: Follow the Money: A Citizen’s Guide to Local Government.” Solari Report, May 2, 2017. https://library.solari.com/book-review-follow-the-money-a-citizens-guide-to-local-government/
37 Kimbra Cutlip. “In 1868, two nations made a treaty, the U.S. broke it and Plains Indian tribes are still seeking justice.” Smithsonian Magazine, November 7, 2018. https://www.smithsonianmag.com/smithsonian-institution/1868-two-nations-made-treaty-us-broke-it-and-plains-indian-tribes-are-still-seeking-justice-180970741/
39 “#CashFriday.” Solari Report, July 2, 2021. https://home.solari.com/cash-friday/
40 “The Barter Opportunity.” Solari Report, November 16, 2008. https://library.solari.com/the-barter-opportunity/
41 “Local Currencies: Links.” Solari Report, November 30, 2018. https://home.solari.com/local-currency-movement-an-update/
42 Catherine Austin Fitts. “The Clinton Administration: Progressives for For-Profit Prisons.” Chapter 10 in Dillon Read & Co. Inc. and the Aristocracy of Stock Profits. Solari, Inc., 2005, 2021. https://dillonreadandco.com/prisons/
43 For those who are Christians or open to biblical inspiration, see Paul’s First Letter to the Corinthians, Chapter 12, Verses 7-13, in which he describes the gifts of the spirit, reminding us that each has unique gifts and analogizing to the body, where one part is not more important than another and all are needed for the functioning whole:
“But to each one is given the manifestation of the Spirit to the profiting [of all]. For to one through the Spirit is given a word of wisdom, and to another a word of knowledge according to the same Spirit, to another [acts of] faith in the same Spirit, and to another gifts of healing in the one Spirit, and to another workings of power, [and] to another prophecy, and to another discerning of spirits, to another kinds of tongues, and to another interpretation of tongues.”
46 “Nobody’s Talking About This – They Can’t Hide It Anymore.” YouTube, April 4, 2021. https://www.youtube.com/watch?v=QSaVFB4DVyM&ab_channel=AnonymousOfficial
47 “Special Solari Report – Bill Binney & Litigation to Hold the NSA Accountable.” Solari Report, December 1, 2017. https://home.solari.com/special-solari-report-bill-binney-litigation-to-hold-the-nsa-accountable/
48 L. Michael Hager. “Dual citizens in Congress? We need to know.” Foreign Policy Journal, December 10, 2018. https://www.foreignpolicyjournal.com/2018/12/10/dual-citizens-in-congress-we-need-to-know/