Tag Archives: FRNs

Letters From the Past I

Silver Certificate vs FRN [courtesy Google Images]

Silver Certificate vs FRN–which one is “money”?
[courtesy Google Images]

Most people suppose that the concept of “money” is easy-peasy. What more do you need to know besides how to count it?

Well, there’s a lot more to money than mere counting. If all you know about money is how to count it, you don’t really have a clue.

The relevant information is deep, obscure, profound and confusing. The confusion isn’t accidental. The Powers That Be don’t want you to understand the nature of money because, if you did, you’d know that your government is mostly a racket.


What follows is an analysis of the first of three letters written to the Treasury Department from people who wanted to understand our monetary system.

In the 1990s, I had photocopies of these three letters allegedly written by officials of the U.S. Department of The Treasury discussing the nature of Federal Reserve notes (FRN’s). Those copies disappeared in a house fire. I can’t prove the photocopies were legitimate, but I have no doubt that they were. They were (and are) important because they helped fuel my interest in learning about the nature of money.

The dates on the first two letters were A.D. 1977 and A.D. 1982; the third letter’s date was unclear. Assuming these letters were legitimate and the statements they contain accurate, they offered some surprising insights into the realities of our current money system.

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Texas Gold Bullion Depository Implications

[courtesy Google Images]

[courtesy Google Images] reports in “Texas Pulls $1 Billion In Gold From NY Fed, Makes It ‘Non-Confiscatable’,” that on Friday, June 12th,


“Texas Governor Greg Abbott signed a bill into law that will allow Texas to build a gold and silver bullion depository.

“The lack of faith in central bank trustworthiness is spreading. First Germany, then Holland, and Austria, and now . . . Texas has enacted a Bill to repatriate $1 billion of gold from the NY Fed’s vaults to a newly established Texas state gold bullion depository . . . . the Bill includes a section to prevent forced seizure from the Federal Government.”

“HB 483 was introduced by state Rep. Giovanni Capriglione who said,

“We are not talking Fort Knox.  But when I first announced this, I got so many emails and phone calls from people literally all over the world who said they want to store their gold . . . in a Texas depository. People have this image of Texas as big and powerful . . . so for a lot of people, Texas is exactly where they would want to go with their gold.”


Good LORD!

Given the choice of storing your gold in Switzerland, Hong Kong, Singapore, Canada—or Texas—where would you rather store your gold?  A lot of people would say “Texas”.  Not just Texans, not just people in the US, but lots of people around the world would rather store their gold in Texas.

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Fiat Currency Sorcery

“There’s no subtler, no surer means of overturning the existing basis of society than to debauch [inflate] the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which only one man in a million can diagnose.”—The Economic Consequences of Peace by John Maynard Keynes (A.D. 1920).

Keynes’ quote may sound improbable to most Ameri­cans, but I think it’s one of the two or three most profound and concise statements of secular truth I’ve seen.

To illustrate the validity of Keynes’ observation consider Paul Moritz Warburg—the purported “chief architect” of the Federal Reserve Act.  Shortly before his death in A.D. 1932, he was quoted in The Nation maga­zine as saying:


“I have studied finance, and economics, and international trade all my life, and now, after these recent events, I have come to the conclusion that I know nothing about any of them.”

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Posted by on November 12, 2012 in Federal Reserve, Money, Values


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Just a Thought

The International Currency of the NWO?

Article 1 Section 10 Clause 1 of The Constitution of the United States declares in part, that “No State shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debts;”.  The mandate for gold and silver coin applies only to the States of the Union.  There is no similar constitutional restriction on the currencies that might be used in Washington DC or the territories since they are not “States” of the Union.

I’ve therefore concluded that the use of Federal Reserve Notes would be at least restricted and probably prohibited  within the States of the Union, but would be quite legal within any territory of the United States or Washington DC. This distinction between the constitutional venues of currencies is the cornerstone for my contention that “Texas,” “TX” and even “STATE OF TEXAS” do not signify the State of the Union whose proper name is “The State of Texas,” but instead signify a territory.  I.e., it’s lawful to use Federal Reserve Notes (FRNs) in the “territory” of TX, but it would be unlawful to use FRNs within “The State of Texas”.

Thus, it might be that the mere use of FRNs would constitute evidence that you had “voluntarily” left your State of the Union to transact business in a fictional territory.  Within the State you would have many rights, but no currency.  Within the territory you’d have ample access to a fiat currency, but little or no real rights.

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Bix Weir: Crash Could Come in March; $6,000 Silver Possible

2006 Silver Eagle 20th Anniversary Reverse Pro...

Image by Madbuster75 via Flickr

Bix Weir is the author of the “Root To Roota” theory which claims that Alan Greenspan (and even Ben Bernanke) are “good guys” who are trying to intentionally collapse the economy in order to strike a mortal blow against fiat currencies and force the world to return to a gold and/or silver standard for money. The idea that the Federal Reserve System is and has been run by guys determined to destroy the Federal Reserve System strikes me as extremely improbable.  Are we to believe that the people that Greenspan and Bernanke work for are so stupid that they couldn’t figure what the two Fed Chairmen were really up to?  I don’t think so.

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The Nature of Money: Greater Fools & FRNs

Mrs. Jester (the better half)

Image by Will Montague via Flickr

In 1998, everyone knew that the stock market was hugely overvalued. Nevertheless, people continued to purchase more stocks.  These purchases were justified in part by the theory of “greater fools”.

Under the greater fool theory, I can afford to foolishly pay $100 for a stock that’s only worth $50, so long as I can find an even “greater fool” who’ll pay me $150 for the same $50 stock.  My “greater fool” can safely pay me $150 (for the $50 stock) so long as he can find an even greater fool who’ll pay him $200, etc.

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Posted by on February 20, 2011 in Debt, Federal Reserve, Money


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