Taxes And The Federal Reserve
A Short Primer
John R. Prukop

[Editor's note: For some of you, this material will be 'old hat', but for those of you who just finished paying your 'fair share' to the instant robbery squad, or are at this moment paying 'interest' on any kind of purported loan, perhaps this will bring you up to speed.]
How would you like to own a business where no one in government knew who you are . . . where the IRS never questioned you and only the lowest of lower minor bureaucrats has his hand in your pocket . . . for real estate taxes only . . . and no one in government dared to approach or reproach you ? . . . You are indeed the king of the mountain and the ignorant American citizens are paying you over 17 1/2 million dollars PER HOUR OF EVERY DAY! NO taxes . . no control . . . how sweet. This is not science fiction nor a story about fairies or leprechauns . . . there is such an outfit in our country that pays no taxes except real estate taxes.
If they pay no federal income, state income or other taxes, guess who has to make up the difference? That's right . . . you and I are the jerks who pay the 17 mil per hour and make up their share of taxes. Who is this evader of taxes? The Federal Reserve System!
But you say they're part of the Federal Government-- at least under some government control. WRONG! This is what they want you to believe but it's a fairy tale! The Fed is NOT an agency of the federal government and neither does any division of government control their actions or policies. It has the same relationship to the federal government as the Federal Express or your local Federal Meat Market. NONE. It is a PRIVATELY owned banking system.
The Federal Reserve is a central bank, similar to central banks around the world. These include the Bank of England, the Bank of France, the Bundesbank of Germany and Banco de Mexico. No government in the world controls a central bank; the opposite is true. These banks tell people and governments where to go . . what to do and they answer to no one!
Banks conjure images of vaults overflowing with stacks of money. What is money? ". . . 1. Standard pieces of gold, silver, copper, nickel, etc., stamped by government authority and used as a medium of exchange and measure of value; coin or coins; also called hard money. 2. any paper note issued by a government or an authorized bank and used in the same way; bank notes; bills; also called paper money." (Webster's New Twentieth Century Dictionary). Random House dictionary defines a note as "any of various types of instruments covering debts, as a promissory note." Now take a fast look at the dollar bill in your pocket. It tells you it's a 'Federal Reserve Note'! It's an instrument covering debt, created out of thin air, only a credit entry on bank books. This secret outfit controls our money and tells us what it's worth.
Is that legal? Let's find out. What does our Constitution have to say about money? First, Congress has the authority to "borrow money on the credit of the United States." This corrects a defect in the original Articles of Confederation. Today, we see the result of unrestrained use of this power when Congress proposes raising the debt ceiling.
Next we find "Congress shall have the Power . . . To coin Money, regulate the Value thereof, and of foreign Coin . ."
Not one word in our Constitution allows our money to be a piece of paper with numbers printed on it. To coin money does not mean to print money.
The colonists had over one hundred years experience with paper money. They were known as Bills of Credit back then. Bad money experiences left a nasty taste in the mouths of most at the Constitutional Convention in Philadelphia. Their plan was to stop the use of paper money. They added a monetary constraint to the document which prohibits any state from 'making any Thing but gold and silver Coin a Tender in the Payment of Debts'. This requirement slapped the responsibility right on the states to keep our money honest. We have a constitutional right to real money.
Debasement of our money is so complete that we now have ersatz pennies and coated copper coins replace our silver coins. This is a travesty!
Paper money is a good deal for government. A worthless piece of paper with a number printed on it tells us it's worth ten dollars, one hundred dollars . . . or one thousand dollars.
In the upper left corner of that paper dollar in your pocket is the statement, "This note is legal tender for all debts, public and private". That's a COCKEYED LIE! Gold and silver coin are the ONLY legal tender allowed by the Constitution.
The Coinage Act of 1792 defined our money and specifies our coins are to be of gold and silver. This is still a valid act of the Congress . . . Congress has never repealed it.
Congress is ordered to regulate the value of foreign coin. Yet today we have foreign exchange markets where the value of our dollar floats in relationship to foreign currency. This is so unconstitutional as to border on the edge of criminal.
How did we get into this situation concerning our money? Let's unravel a web of intrigue and deceit. Central banks were common in Europe before World War I and they decided to set up the same system in the United States. Earlier in our history, we had two central banks. Fortunately, at those times, we had Presidents who valued and respected their Oath to preserve the Constitution. Our government did not renew these bank charters and they died a quiet, albeit revolutionary death. However, there is no charter requiring renewal under the Federal Reserve Act. THEY HAVE A PERPETUAL LICENSE TO STEAL!
The late eighteen and early nineteen hundreds saw a major campaign by international bankers to get a new central bank established in this country. The first character we find in this story is Paul Moritz Warburg from Hamburg, Germany. His jewish accent was so thick you could have cut it with a knife! He represented a large European banking family, the Rothschilds. These are the people who once said, "Permit me to issue and control the money of a nation, and I care not who makes the laws!"
The Rothschilds bankrolled Warburg in 1902. His mission? To convince major bankers and industrialists that a private central bank was the answer to America's economic ills. In addition to whatever money Warburg needed to buy into New York money houses, they paid him half a million a year . . . a tidy sum even today. Rothschild knew what fabulous profits there would be after they set up the private bank. And they were right . . . 17 million bucks per hour ain't shabby.
Warburg spent eight years around the country preaching his false economics. There were many conspirators in this goal to control the United States' economy. One greedy and powerful character was US Senator Nelson Aldrich. (Yes, Nelson Rockefeller's grandfather.) Congress often denounced Aldrich for the disregard of his oath of office as he devoted his power and energies to the program of international finance.
Strange happenings began the night of November 22, 1910 when reporters received a tip that some very important people from New York city would be arriving at the train station in Hoboken, New Jersey. Along with Warburg and Aldrich, reporters identified the biggest names in banking and industry and included many government officials. These men controlled the oil, railroads, communications and heavy industry in this country.
Not one man would talk to reporters. They all disappeared into the last car on the train, a private car owned by Aldrich. Drawing all shades, they left reporters scratching their heads on the reason for these movers and shakers being there. There wasn't a hint on the destination of the train or reasons for the secrecy.
Thirty years later, some details of that trip emerged. Jekyll Island, off the coast of Georgia, was where these Shylocks of usury travelled and came up with the bill creating the privately owned bank for United States. True to Rothschilds, they knew once they had control of our money, it wouldn't make any difference who makes the laws.
Deception was immediate. The conspirators knew that the representatives from Southern and Western states would never agree to any bill suggesting a central bank or control by Wall Street money. The first try to get the private bank bill through Congress was called the Aldrich Plan. People fought back and in 1911, they defeated the bill.
This kind of greed doesn't die. It was only a minor set back. Their final triumph occurred in 1913. Warburg insisted the bill go back into Congress as the Federal Reserve Act to hide that it was the same bill defeated earlier.
The lackeys pushed the bill through Congress on December 22, 1913 after most members had gone home for the Christmas holidays. President Woodrow Wilson signed it into law the very next day. America's independence disappeared.
The preamble to the Federal Reserve Act tells us the purposes of the Act are "to provide for the establishment of Federal Reserve Banks, to furnish an elastic currency, to afford a means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."
'Elastic currency'? That's the same as rubber money. Rediscounting is a system where member banks borrow credit from the central bank. This allows fluctuations in the discount rate and enables the Fed to control the money supply of the nation. Rediscounting influences the total outstanding credit on commercial paper and government bonds. In this way, the central reserve bank can expand or contract the money supply at will. They can now manufacture boom times or depressions whenever it strikes their fancy.
And with all the bank and Savings and Loan closures, it's clear they were effective in their duty to exercise supervision of banking in the United States. Or . . . was that planned?
'And for other purposes' -- what does that mean? Is that the all encompassing clause which removes all restrictions? Warburg and his lackeys knew exactly what they were doing.
The Act gave authority (?) for a private banking system to create 'money' out of thin air. We find proof of this from hearings before the House Committee on Banking and Currency, September 30, 1941. Representative Wright Patman of Texas asked Federal Reserve Governor Marriner Eccles: "How did you get the money to buy those two billion dollars worth of Government securities in 1933?"
Eccles replied: "We created it."
Patman asks: "Out of what?"
Eccles: "Out of the right to issue credit money."
Patman: "And there is nothing behind it, is there, except our Government's credit?"
Eccles: "That is what our money system is. If there were no debts in our money system, there wouldn't be any money."
See now why your dollar bill is called a note?
This interview is from the Congressional Record and is also in an exceptional book by Eustace Mullins, called The Federal Reserve Conspiracy, (Omni Publications, Hawthorne, CA., 1971).
The money we use today has its basis in debt, not wealth. This funny money, contrived by a private banking cartel for their profit, now controls our economy. And, speaking of profit, our government does NOT know who owns The Federal Reserve system or whether they are even American citizens for that matter. How does that grab you?
Let's check interest payments again. They demand payment in full and on time every year. Breaking down the $17.6 million per hour means we shell out over $226,000 every time your heart beats. Over a quarter of a million bucks!
One requirement of the Federal Reserve Act orders the system to have an annual public audit. The Fed has NEVER had a public audit. When questioned about this, the Fed answers that they are continually audited . . . BY THEMSELVES! They do not address the word 'public'. It's like having the fox count the hens in the chicken house.
When someone questions their legality, the Fed responds with, "Would you rather have the control of money in the hands of politicians and politics?" Politicians are, at least in theory, responsible to the people. But what's more important, the Constitution orders Congress [politicians] to control the value of our money! Honest money is a guarantee. There is not one instance in history to show that politicians have ever destroyed the value of money . . . it's only been done by international bankers.
We read that Congress shall coin money and regulate its value. Whenever you see the words 'Congress shall', it's a COMMAND! There is NO option or permission in our Constitution to delegate congressional duties to another governmental body, and certainly not to a private cartel.
If this isn't clear thus far, let's take a quick look at the Tenth Amendment . .
If we didn't precisely grant the power, they don't have it.
Our Constitution gives NO authority for the Federal Reserve system. Neither is there any permission for our government to be in any type of banking business. (FDIC, FSLIC, IMF, World Bank, etc, etc.) Congress is breaking the law . . . and their oath to support our Constitution. As a result, they saddle us with debt which they call money. This control of Americans is so thorough, it effects even the little kid with pennies in a piggy bank.
Write a letter to any Fed Reserve bank and ask a question about money. The question is unimportant, but pay attention to the return envelope. It will bear a stamp. All government mail has a Roman styled eagle printed in the upper right corner. If the Fed was a government entity, it would also use a franked envelope!
To show that no one in our government has any say-so in the activities of the Fed, an under-secretary of the Treasury appeared on PBS. He said the government would like to see the Federal Reserve increase the money supply to allow for a more moderate growth. More wishful thinking is for the Fed to lower the discount rate . . . the rate they charge member banks when they borrow money. What drivel!
They have just been forced to lower the discount rate. It has to be that the economy has gone much more sour than even the Fed expected. Strange, isn't it? The condition of the economy is all a result of previous actions by the Fed!
There are a lot of theories out there . . . please make up your own mind as events unfold.
For an exceptional essay on money that each of us can understand without being a rocket scientist, see <> NORFED the National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code. The article is entitlted "Billions for the Bankers and Debt for the People. Exceptional!
This brings up another point Americans should question ... ownership of gold by the Federal government. Our gold is supposedly at Ft. Knox, Kentucky safely stored underground. But, is it? No one really knows and congressmen have been unable to get into the vaults to be sure of its existence. Why is it that we've heard nothing about this alleged storage lately?
These are public monies entrusted to the government. Just where is our gold? If it's not at Ft. Knox, what happened to it? Is it possible it's already in a secret vault under the Seine River in Paris? Letters to the Secretary of the Treasury and members of Congress might just revive interest on this crucial issue. Answers should be very interesting.
Is it also possible that our gold is no longer at Ft. Knox because of shady manipulations involving the Federal Reserve System? International bankers have been moving our gold out of the country for over 100 years. What went wrong is clear. Our money problems are all a result of a law which Congress had no power to enact which permits this financial fiasco.
Question your Senators and Representatives about this violation of constitutional powers. The only way our government can make ANY change in the basic operation is with our consent through the amendment process! We have to demand that Congress take away the power to create 'money' from a private bank and fulfill their constitutional duty to issue honest money.
If Congress refuses to perform its duty, we should throw them all out of office and elect honest people to the positions.
Your taxes have gone wild ONLY because of unconstitutional practices by our government. I have pointed out another one of their illegal deals. When do we get a handle on this crap? It's up to you! Today, we're holding the dirty end of a short stick!

From CCW/John R. Prukop <
To Dan Meador <
Subject: Fw: FedRes and taxes
Date: Thu, 27 Apr 2000
I'm going to share with you a 'typical' response I have received from Sheople who don't know what has happened to their monetary system and my response back. This particular response was regarding the recent post on 'Taxes And The Federal Reserve', a post that I did not author but forwarded because of its easy reading for neophytes. Maybe we can all learn something by this exchange. I'm blind copying several others who might be interested. As you will learn shortly, I have very little patience in dealing with brainwashed Sheople.
/s/ John R. Prukop
-----Original Message-----
From: Nancy Korpi < To: CCW < Date: Wednesday, April 26, 2000 Subject: FedRes and taxes
Hi, Altho your article has some excellent points i wonder about a few items:
1. Why is a Jewish accent of any import and even mentioned? 2. How does Greenspan fit into this picture? 3. Who prints this money of ours and how is it circulated?
Further, your sage words are diminished by your emotional retorts. Your credibility would be more persuasive if you avoided the temptation to allow emotions to enter your arguments.
thank you, Nancy
Nancy A. Korpi Pocket Technology,
-----Original Message-----
From: CCW <
To: Nancy Korpi <>
Date: Wednesday, April 26, 2000
Re: FedRes and taxes
Ms. Korpi,
You presume a lot. If the article had some "excellent points", as you infer, you would have no need to ask the three questions you pose. Let me tell you a few things: First, the article was not of my origin, it was written and assembled by someone else, and it was forwarded to my list, of which you are not a subscriber. Secondly, it was forwarded because it contained factually correct and TRUTHful information. Thirdly, because you have no background in this particular arena ... not one in a million do ... we would naturally expect a response such as yours because you most likely receive corrupted information on a daily basis from the controlled press, in all of its venues. Such corrupted information, I contend, has resulted in the American public and folks like you being under suppression via receiving unnatural equations and results in every aspect of their existence, in education, employment, banking, religion, family values, science, medicine, history, music, law, news media, et al. Such suppressed conditions of unnatural equations plus being repeated daily as mental injuries throughout the Nation, plus being forced upon the minds of the American people through the news media, plus shock therapy in exclusively allowing only corrupted and unbalanced news to be transmitted to the masses through their morning newspaper reading, their radio listening and their television viewing, plus in the secured and familiar surroundings of their home, office, or car, equals a form of biological warfare, for the purpose of absolute despotism that disturbs the sound reasoning and natural apprehension of the American people. In this condition of mental instability, the masses and folks like yourself are easily deceived and controlled, believing and accepting anything that the United Nations/New World Order implants by such suggestive biological warfare.
This form of mental programming is not a theory of mine, but is the diabolical design of the United Nations, as documented within their sinister manual known as "Silent Weapons For Quiet Wars," which is used by your United States Army Intelligence, known as "Research Technical Manual TM-SW7905.1, and whose articles were converted into Department Of The Army Field Manual, FM 41-10, "Civil Affairs Operations" of various editions. These manuals have been designed to outline the procedures for the takeover of the American people through the control of the ECONOMY in what is known as Social Engineering. Social Engineering is a type of Biological Warfare that has been continuously implemented upon the American public since 1954 for the sole purpose of conditioning and maintaining voluntary consent. Consent of "what" you may ask? Consent of usurped LIBERTIES in order to implement a socialist One World Order. Social Engineering is a type of 'Silent Weapons' that disturbs the natural reasoning of the Human Brain, penetrating its senses to a level that a person can no longer rationally reason or comprehend basic logical conclusions. This assault is performed by a researched scientific technique called Shock Testing.
Do you have a 'checking account', or a 'credit card'? Then you are part and parcel of the problem, due to your CORRUPTED understanding of what a 'dollar' is. Do you even realize that banks haven't dealt in 'dollars' since 1968? Therefore, what is it that you are being paid in, or what you 'think' you have in the bank? Do you know? Let me tell you what it isn't: you have NO 'dollars' in your bank account. What you have in your bank account are bookkeeping entries, i.e., digits, which are known as SDR's (Special Drawing Rights) of "The Fund" and "The Bank" (both UN - See: 22 USC 286), of which the secretary of treasury -- a name used under PRETENSE only -- is actually the 'Governor' of the IMF and World Bank, and is NOT an officer of the United States nor paid by the United States. What about Alan Greenspan ... do you know 'WHO' he is? Do you know 'who' the Federal Reserve is? Do you have a signature card at your 'bank' wherein you AGREED to the terms and conditions of everything referred to thereon? Have you ever read any of those statutes, codes, rules or regulations, that upon your signing you agreed that you had received and understood? If you signed the card then you gave your voluntary, TACIT CONSENT. Same thing with your credit card or any other financial instrument of "The Fund" and "The Bank", who are the real principal parties in interest.
I've wasted entirely too much time in responding, so what I'd suggest to you is go to your local LAW library and start studying because your e-mail statement and questions reveal you are a victim of Silent Weapons For Quiet Wars.
/s/ John R. Prukop


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