From the May 2002 Idaho Observer:

FRAUDs: Now that you know, what are you gonna do?

by Hari Heath

Years ago, our local “Patriot” group met regularly to educate ourselves and our community about the fraud and illegitimacy of the IRS and the tax code. We went to many seminars and meetings where the truth was laid out for all to see. Nationally known researchers presented undisputed evidence that the federal income tax was a farce and a fraud which most Americans don't have to pay.

We came to know the truth, but many in our local group were still federal “taxpayers.” Like most people it was easier to complain about a problem than do something about it. One of our group members, Joe, was always willing to push a few buttons for the cause of truth and freedom. He wasn't the kind of guy to take prisoners or tolerate fence walkers. He presented our group and, in particular, me, with a challenge: “Now that you know the truth about the IRS and the federal 'income' tax, what are you gonna do? he asked. “Are you still gonna pay a tax you do not owe? Are you gonna surrender your 5th Amendment rights and 'voluntarily' file a 1040 form to a private collection agency that isn't really part of the government? Are you a U.S. citizen enfranchised to the 'district' who is required to file, or are you an American, born in one of the several states who isn't? Are you gonna continue to file and pay even though you know the Sixteenth Amendment was never ratified and the income tax is unconstitutional?”

These were the challenges I had to face when my friend Joe called us to the mat.

Over time, I read and studied the facts about the federal taxation scheme. I could talk about it for hours, but with Joe's challenge, I could no longer just talk about the income tax. If I wasn't going to live a lie, I had no choice but to stop paying the income tax.

It was a terrifying moment for a neophyte “patriot.” Suddenly, I had to stand up for something in the face of adversity. The IRS was still regularly ruining people's lives, in spite of the facts and the law. The agency was particularly militant against those who challenged their fraudulent authority. On the other hand, if I didn't do the right thing and refuse to fund the beast, all of the principles I held dear would be worthless.

Today, I can't imagine voluntarily paying a fraudulent unconstitutional income tax, but at the time it was terrifying to have to make that leap. Joe was just acting from his own conscience and commitment to the truth. He may not have known it then, but it was a life changing moment for me.

I often remember Joe's challenge of many years ago and the transition I have gone through whenever I encounter people who cling to the familiar but fraudulent schemes of the shadow government and its duplicitous minions.

So many just pay and obey out of fear and ignorance. Even worse, they don't want to know the truth. Sometimes I want to go shake some sense into them until they understand the complete artificial reality that government has created to enslave them -- and make them want it. However, there is a process, a transition, that each of us has to make in our own way before we can pierce each veil of the fraud which surrounds us. I have to remember that I have spent years trying to pierce through those veils. It hasn't been easy. And I can't expect those who live on a spoon-fed diet of the evening news to have any clues about what government is, was and should be. The cocoon of government remains a very comfortable safety net, laid out to contain those who are willing to pay and obey. The sometimes painful transition that began years ago for me and others, apparently hasn't even begun for many Americans.

A Small Hurdle?

But paying or not paying a fraudulent “income” tax is a relatively small hurdle. For most of us, the choice to pay taxes or not only happens once a year. What about that much bigger fraud that we all deal with daily -- our so called money?

If you have read papers and articles like this before, chances are good that you're already well versed in the realities behind the myth and fraud of what we call money. I won't have to preach too loud to this choir that the green paper currency we use are NON-Federal NON-Reserve NON-Notes, best referred to as Federal Reserve Accounting Unit Dollars (FRAUDs). Most pre-9-11 “patriots” will already understand that these FRAUDs are not money; that by definition, money can only be coin; that the Constitution only empowers the Congress to “coin money,” not issue currency; and particularly, there is no constitutional power to authorize a private consortium of mostly foreign bankers to issue their own currency based on the gold held by the U.S. Treasury.

A Tale of Treason

Those who have kept their axe to the grindstone on the subject of money will also know the history and results of this fraudulent conversion of our national economy. After the ill-named Federal Reserve Bank was created in 1913 by a devious and unconstitutional act of Congress, this mostly foreign financial elite began the crime of the century.

Our nation's gold was given to them as a base which they used to fractionalize their private bank paper. Even our federal treasury buildings were eventually turned over to them by a treasonous Congress. They began the great indenture of our nation by loaning their paper, backed by American gold, to their member banks and international interests. In 1928 they loaned $60,598,690,000 gold backed “dollars” to their member banks. This was six times the monetary gold supply of the entire world.

In 1929 they loaned out $58,046,97,000, until they decided to tighten the supply and crash the stock market in October of 1929. In 1930 they bailed out their member banks with loans totaling $13,022,782,000 of gold backed dollars -- an amount still larger than the world's supply of monetary gold.

But this was not the worst of it. The Federal Reserve Bank pumped billions of our “dollars” into Germany during the 1930s. Many millions of those dollars were actually our gold shipped to Germany in trade for paper “notes.” Shipments of American gold to Germany occurred almost weekly. Congressman McFadden presented these criminal details of economic treason to Congress in 1932. His suggestions went unheeded. [1]

When the American people finally caught wind of what was going on they began a run on the banks for the gold that was no longer there. FDR declared an emergency shutting down the nation's banks with an executive order. Congress followed with House Joint Resolution 192 (March 9, 1933) which terminated the obligation of Federal Reserve Notes to be redeemed in gold. Soon thereafter, it became a crime to own most gold and the American people were compelled to sell their gold back to the government.

Hitler's rise to power and the construction of the German war machine was accomplished in large part with the American people's gold, stolen by mostly European bankers who own and control the Federal Reserve Bank. The theft was aided and abetted by President Roosevelt and the Congress. This is how the American economy was converted to worthless paper backed only by the “full faith and credit” of the American people.

Voodoo Economics?

This “fiat” or faith based economy continues to this day causing our so-called national debt to expand beyond any possibility of repayment. A paper economy that can be expanded or contracted at will by the issuers of paper and credit is one that historically devalues.

Contemporary economist, Robert Batemarco [2] explains such voodoo economics:

Since 1933, the U.S. dollar has lost 92 percent of its domestic purchasing power. Even at its “moderate” 1994 inflation rate of 2.7 percent, the dollar will lose another half of its purchasing power by 2022.

We've experienced 11 recessions since the advent of inflation as the normal state of affairs in 1933...Other things being equal, if the quantity of anything is increased, the value per unit in the eyes of its users will go down.

The quantity of U.S. money has increased year in and year out every year since 1933. The narrow M1 measure of the quantity of U.S. money (basically currency in circulation and balances in checking accounts) stood at $19.9 billion in 1933. By 1940, it had doubled to $39.7 billion. It surpassed $100 billion in 1946 $200 billion in 1969, $400 billion in 1980, $800 billion in 1990, and today [1995] it stands at almost $1.2 trillion. That is over 60 times what it was in 1933.

If we desire a money that will maintain its value, we must have a money that cannot be created at will. This is the real key to the suitability of gold as money. Since 1492 there has never been a year in which the growth of the world gold stock increased by more than five percent in a single year. In this century, the average has been about two percent. Thus with gold money, the kind of inflations that have plagued us in the 20th century would not have occurred. Under the classic gold standard, even when only a fractional reserve was held by the banks, prices in the United States were as low in 1933 as they had been 100 years earlier.

Rocket Science and Economic Non-Reality

The astute student of economics will know that an unbacked or “fiat” currency has unlimited potential to create as much fictional wealth, and inflation/deflation of the currency's value, as the issuer can get away with. This is well exhibited by the current dilemma of our economic non-reality.

How big is our economic unreality? If you do the math, the annual budget of the U. S. government, in $1 FRAUDs laid end to end, exceeds the length of the orbital path of our planet around the Sun. Read that sentence again and contemplate how out of this world the federal budget under a FRAUD economy has become. Obviously, on our relatively small speck of a planet, which is covered mostly by water, there aren't enough trees to make enough paper to make enough FRAUDs, to pay for the costs of operating our government, never mind what the American people spend. And don't forget all the drug dealers, stockbrokers and terrorists of the world who do their business with FRAUDs. There simply aren't enough FRAUDs to go around. The whole Federal Reserve scam is a hoax. It's an impossible reality. We will sooner have a perpetual motion/free energy generator powering every American home than we will have enough FRAUDs in existence to pay even one year of the federal budget.

Considering the astronomical fraud of the FRAUDs, do you still want to go to your job and perform real work for such non-real compensation? Currently, the private Federal Reserve Bank buys each FRAUD “note” from the Bureau of Engraving for under 3 cents each and then loans them into circulation at face value through their member banks.

What does this mean in reality to the average middle class American? More or less, a middle class worker makes $100 a day for his work. When you accept a $100 FRAUD bill, you are trading $100 worth of your goods, services or labor for a 3-cent piece of paper. Think about it.

A Real Challenge

Now that you know the truth, what are you going to do about it? Your whole world is surrounded by the fraud of the FRAUDs. Your friends and neighbors, your job, your home and hearth, everything right down to the kitchen sink is based on a mindless faith in the FRAUD. Your more or less $100 workday is really traded for about 3 cents worth of paper, and now that you know the truth, what are you gonna to do about it? A bit more challenging than the decision that comes around on April 15, isn't it?

Fortunately, the road leading away from the FRAUD economy is not uncharted territory. Nor do you have to make an absolute “do or don't” choice. You can transition into this new challenge gradually.

Robert Batemarco made a suggestion in 1995: “If we were to repeal legal tender laws, laws which today require the public to accept paper Federal Reserve Notes in payment of all debts, and permit banks to accept deposits denominated in ounces of gold, a parallel gold-based monetary system would soon arise and operate side-by-side with the Federal Reserve's fiat money.”

His suggestion has largely come true with several alternatives: Liberty Currency, Crowne-gold and E-gold to name a few. As more people accept this challenge, these alternatives will become more common and the FRAUD economy will crawl back into the dark hole it oozed out of. Here's how.

Liberty Currency

The constitutional power of Congress to “coin money” doesn't create the power to either issue currency or form a bank. The constitutional American economy was intended to remain in the hands and pockets of the people themselves. Government's only task was to mint a reliable coinage for the citizens to trade amongst themselves.

The Coinage Act of 1792 provides for a one-ounce dollar coin of silver and a $20 one-ounce gold coin. They were each precisely alloyed with 10 percent copper for durability.

That's what real American money was, until 1933. Since then, we have become accustomed to paper currency and have lost our affinity for the value of coinage.

The 100 percent silver-backed Liberty Currency or Silver Liberty coins from NORFED [3] are an excellent modern alternative to our former constitutional coin. They put the wealth back in the hands of the people. By becoming a NORFED Redemption Center you can be your own bank, for fun and profit, while converting FRAUDs into real currency or coin.

After becoming a Redemption Center you can profit by purchasing Liberty Currency or coin at less than face value from NORFED and selling it at face value. You can also receive a commission for every Redemption Center that signs up under you. When you purchase Liberty Currency or coin with FRAUDs, NORFED converts the FRAUDs into an economy of substance by purchasing silver, which is then minted into $10 Liberty coins. Those Liberty coins are either delivered to the Redemption Centers who purchased them or are held in a secure storage area and used as the backing for the Liberty Currency purchased by Redemption Centers. Liberty Currency has more security features than a FRAUD.

NORFED is insured and independently audited regularly to ensure that the Liberty Currency is 100 percent silver backed. This is quite a contrast to FRAUDs and the Federal Reserve which has never been audited -- an audit which would reveal the crime of the century.

NORFED also sells Liberty Checks through its Redemption Centers. They can be used like a traveler's check and cashed through the Federal Reserve banking system. It's an alternative for those who need to interface with the conventional paper economy.

How well is Liberty Currency accepted? Sometimes not at all. Sometimes eagerly. NORFED's web site has a lengthy file of testimonials about how people have accepted their currency and coin. [4] For some people it's only a novelty. But every “novel” contact with the ill-informed citizenry can germinate a seed of truth about the fraud of the FRAUD. Would you rather see the FRAUD system collapse suddenly when enough people realize what it is, or have it slowly be replaced with alternatives like Liberty Currency and coin?

Crowne Gold

An offshoot of NORFED, Crowne Gold [5] is an on-line gold account. Not a gold-colored plastic card digitally expressing a credit line of FRAUDs available from a FED member bank, but an account of actual gold, securely stored, regularly audited and transferable or convertible on-line. The process is simple. Go on-line and open a gold account. Send a payment for it from a conventional bank (this takes FRAUDs out of the system and converts them back into gold) and now you have a real gold account.

Crowne Gold also offers a linked third party debit card account.

Now what can you do with it? You can hold it in your account like a savings account except now it is an actual holding of a certain weight of gold. Gold is gold, not paper which can be devalued whenever Uncle FED wants it devalued.

Or you could make a payment with it just like you would write a check, except it's done on-line. Your payment can be denominated in variously measured weights of gold or any of 77 currencies used around the world.

If the person you are making a payment to doesn't have a Crowne Gold account you can email a payment to them. The emailed payment directs them to open an account so they can receive payment. One more person has then been encouraged to enter the world of positive economic alternatives.

You may also take physical delivery of your gold by ordering Crowne Gold's coins or 10-ounce bars of 99.9999% pure gold for a reasonable minting, shipping and insurance fee. Alternately, you could sell your gold, converting it to check, money order or wire transfer funds. You can also transfer gold to your optional linked debit card account which can be used wherever Master Card is accepted.

Unlike conventional banks, there's no waiting for a check to clear. Transfers and payments from your gold account are instantaneous and anonymous. All you need to open an account is an email address, and a user name and passphrase of your choice.

Unlike conventional banks whose “services” come from profits on interest and creating funds from thin air by fractionalizing off of your deposits, Crowne Gold is 100 percent backed with gold.

They must charge for their services. There is a brokerage fee to buy the gold that goes into your account. There is no charge to move gold between your gold holding, gold payment or linked debit card accounts, but making a gold payment to another email address will cost you one half of a percent of the payment value, or $2 -- whichever is greater.

The debit card account will cost you a $150 one time set up fee, monthly maintenance fee of $5, a $1 point of purchase fee and a 2 percent fee for cash withdrawals. Cashing out your gold will cost you one half of a percent of its value. There is an annual storage fee for the gold in your account of 1 percent per year, assessed monthly. Outgoing wires are charged $35 plus bank service charges. Such are the real costs of having an account with something real in it.

On-line merchants may set up a merchant interface for on-line shopping. You can sell your Internet products for gold. Something for something. Sure beats a 3 cent FRAUD kick in the pants.

Crowne Gold also has a referral program which you may elect to use by signing up via email. You will then receive 20 percent of the fee charged for gold purchases and 35 percent of any transfer or transaction fees charged against Crowne Gold accounts that were opened, based on your referral.

Crowne Gold offers financial privacy and global on-line convenience, while converting the FRAUD economy back to its original substance -- gold. You can encourage others to do the same with the ultimate incentive: Pay them with gold and make them open a Crowne Gold account to receive payment. Now there's an idea whose time is already here.


A similar on-line precious metal account is e-gold [6]. It has been around a few years longer than Crowne Gold. Your account can be held in silver, gold, platinum or palladium. They specialize in state of the art on-line security. There is a fee of 1 percent of the transaction amount up to a maximum of 50 cents to transfer between e-gold accounts.

E-gold does not offer any debit card options at this time. Precious metals or funds can be deposited into an e-gold account. Any funds will be converted into the metal of your choice and held in your account. You can then pay other e-gold account holders, keep the metal in your account, or place an order to take physical delivery of some or all of the metal in your e-gold account.

There are fees charged for the physical delivery of metal from your account and a 1 percent annual storage fee for the metal held in your e-gold account. e-gold is a simple, secure and effective on-line real wealth transfer system. They were pioneers in the field of digital alternative economies.

What can you buy with e-gold? A vacation in the Bahamas, Jamaica or Brazil. The services of a Russian or Chinese translator. Volkswagon parts. The services of a Vedic astrologer. A gyrocopter in New Zealand. Celtic and Viking jewelry. And now you can make an e-gold account transfer from a web accessing wireless phone.

What Can You Do?

Become a NORFED Redemption Center. Refuse to accept FRAUDs and checks from FED member banks as payment for your goods, services or labor. Have your employer get an e-gold or Crowne Gold account and transfer your “paycheck” directly to your e-gold or Crowne Gold account. Require payment in Liberty Currency or coin.

Do your shopping with Liberty Checks which can be cashed in FED member banks. Shop close to the amount of the Liberty Check and then refuse the change. Tell the cashier that the FRAUDs they are trying to pass off on you are only worth 3 cents anyway and you don't want them. Imagine the mental shock waves that would result in our society if people began to value the FRAUD like it realty is -- 3 cents. Tell the cashier you would rather have real currency or coin and show them some Liberty Currency.

If you are a merchant, become a redemption center and refuse to accept FRAUDs. Require your customers to convert to Liberty Currency or coin at your Redemption Center before making their purchases. Provide an on-line checkout line so your customers can transfer metal from their e-gold or Crowne Cold accounts to your business' accounts. Welcome your customers to the real world of a substance-based economy.

Bank checks from personal accounts and credit cards were once an idea whose time had not yet come. They weren't accepted when they were first introduced. Now we are rumored to be heading to a “cashless” society where nothing but checks and cards will be accepted.

The corruptive powers of the world are fueled by the Federal Reserve and its FRAUDs. Liberty Currency and coin, e-gold and Crowne Gold are ideas whose time is here.

It's time to end the FRAUD and its power. Choose real money that's worth more than 3 cents. Now that you know, what are you going to do about it?

“The desire to get something for nothing dies hard. Governments use central banks with the unlimited power to issue fiat money as their way to get something for nothing. By 'sharing' some of that loot with us, those governments have convinced us that we too are getting something for nothing. Until we either wise up to the fact that governments can't give us something for nothing or, better yet, when we realize the moral folly of taking government handouts when offered, we will continue to get money as base as our desires.”

      ~Robert Batemarco

1 For a copy of Congressman McFadden's 1932 speech to Congress on the criminal facts of the Federal Reserve, visit

2 Central Banks, Gold, and the Decline of the Dollar by Robert Batemarco:

3 More information about Liberty Currency can be found at:

4 Success stories of using liberty dollars can be found at:

5 Information on Crowne Gold can be found at:

6 e-gold information is available at:

For even more information on alternatives visit the Internet Digital Currencies Directory at:

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