Weekly Update:

A Publication of the Michigan Militia Corps

Volume 4, Issue 7

March 7, 1997

Deceit and Conspiracy

by Dr. Martin Larson

Of all the legislation ever passed by our Congress, the Federal Reserve Act involved more deceit and conspiracy than any other.

In preparation for it, Congress passed the Aldrich-Vreeland Emergency Currency Act of 1908, which, among other things, created a National Monetary Commission consisting of 16 hand-picked congressmen. Under the leadership of Sen. Nelson Aldrich, they toured Europe in 1909 at a cost of $500,000, supposedly searching for monetary information.

Understandably, they arrived at a consensus that America should establish a monetary system similar to the ones existing in England, France and Germany.

In November, 1909, a group of bankers and their expert advisers, led by Aldrich, boarded a private car at a railroad station in Hoboken, New Jersey, bound on a mission so secret it was years before any facts concerning it were revealed to the public. Among those who attended were:

A. Piatt Andres, assistant secretary of the treasury;

Frank Vanderlip, president of the National City Bank of New York, who represented the Rockefeller interests as well as those of Kuhn-Loeb and Co.;

Henry P. Davison of Morgan and Co.;

Charles D. Norton of the First National Bank of New York;.

Benjamin Strong, Wall Street manipulator; and

A number of others, representing the most powerful banking interests in the United States.

However, the most interesting member of the entourage was probably Paul Moritz Warburg, who had come to America from Germany in 1902. With $500,000 of Rothschild money, Warburg had purchased a partnership in Kuhn- Loeb and Co. He had been on an indefinite leave of absence with an annual salary of $50,000, while traveling America promoting the concept of a great, privately owned and privately controlled monetary system, to be established by congressional statute.

This banking safari was bound for Jekyll Island, off the coast of Georgia where, during conferences lasting two weeks, they hammered out the provisions they wished to include in a package of monetary legislation. The result was the Aldrich plan, introduced into Congress on January 16, 1911.

It enjoyed the support of President William Taft but reeked so strongly of Wall Street that its defeat was a foregone conclusion. It never even got out of committee.

It was the wily and cunning alien Paul Warburg who engineered the passage of the "Federal Reserve Act" - a title that he suggested to deceive the people and the members of Congress into thinking the act would establish a governmental institution.

Prof Henry Parker Willis from the (Rockefeller) University of Chicago was drafted by the Carter-Glass House Committee on Finance to prepare the text of the proposed legislation - a story told in great detail in a book he published in 1923.

The enactment of the Federal Reserve law required a degree of deceit and conspiracy scarcely equaled elsewhere in American history. The bill's proponents declared the Federal Reserve System would:

be an agency of the government;

establish a solid monetary system;

prevent forever the recurrence of panics or depressions;

make inflation or deflation impossible; and

provide all necessary funds for business activity.

Charles Augustus Lindbergh was the father of the "Lone Eagle." He was also a congressman from Minnesota. Lindbergh seems to have been the only individual who fully understood the nature of the conspiracy behind the legislation. He declared it would constitute a scientific basis for the creation of depressions or inflation at will.

Since Taft had not approved the proposed legislation, it was necessary to remove him from the political scene. Therefore the bankers found their tool in the flamboyant hypocrite Woodrow Wilson, who was nominated for the presidency by the Democratic Party in 1912.

However, since the Republicans were then in the majority, Theodore Roosevelt was recruited to organize the Bull Moose Party and thus split the Republican vote.

Both Wilson and Roosevelt, financed by the bankers, went up and down the United States denouncing them.

Wilson received almost 42 percent of the popular vote. Taft came in a poor third.

Since it was necessary to include William Jennings Bryan in the government in order to hold the party together, he was made secretary of state. It was mandatory to receive his approval of the Federal Reserve Act before it could be passed. This was obtained after four insubstantial changes were made in the text of the proposed legislation in order to make it seem the Fed would be an actual agency of the government.

Whether Bryan was deceived or persuaded to go along with something that was contrary to his long-professed principles, we cannot know now with certainty.

The act was passed on December 23, 1913. Wilson signed it the same day. How all this was accomplished is a long and intricate story.

Social Security Fraud

By Dr. Martin Larson

For many years I have advocated what I call a Universal Trust Plan and its advantages, similar to what they have in South Korea and Singapore, to replace the Social Security system. Today I wish to focus on one aspect of the present problem which constitutes what I call a Grand Deception -- especially as it relates to the federal deficit.

From the beginning, 55 surpluses have been literally stolen by the federal government and used as if they were revenues intended for its operation. In return, the SS system has received bonds, on which the taxpayers must pay interest. In 1950, there were 14 contributors for each recipient of benefits. And as a result large amounts of money accumulated.

However, none of this remained in the SS portfolio. The bonds could be used for SS payments only if the government collected the money a second time from the taxpayers in one way or another. The whole transaction was similar to what an individual would be doing if he lent money to himself.

In my opinion this is a criminal procedure on the part of the government and should render those responsible liable to severe punishment. However, it seems the government can do anything with complete immunity.

By the end of the last fiscal year [93], $105 billion of surplus had been accumulated in the "trust" fund. The forecast is that by 1994, the surplus will rise to $591 billion and to $3 trillion by year 2025. However, none of this is in the form of real investments. It has and will continue to be "dissipated," and there will be nothing except what the government owes itself for which it must go to the taxpayers to repay this "in-house" debt.

In short, the government intends to continue pretending that by using this money the deficit is being reduced so it comes a link closer to meeting the restrictions of the Gramm-Rudmann Act.

The day will come when the "trust" fluids will demand a return of all the money lost in order to make payments for SS. Where can this money come from? There are only two possibilities.

Either the government must borrow the money and thus increase the federal debt by trillions or raise taxes to horrendous levels.

The fact is, while the government admitted a deficit of $155 billion for fiscal 1988, the actual amount was $255 billion. And as the surplus in the trust funds grows, the actual deficit will increase beyond the admitted amounts by the same total. It is estimated by 1994 the "trust" fund in SS will reach $591 billion.

However, when this is added to the amounts in other programs, the government is expected by then to have seized $1.4 trillion for its expenditures which should be met entirely from other sources. Such colossal theft is without precedent in all history.

In fiscal 1989, the admitted deficit of $148 billion will actually be $264 billion. And it will continue to grow worse unless Congress finally accepts its responsibilities and puts an end to all this. If it continues on its present course, the deficits will grow to at least $300 billion annually. This will cause further inflation which will reduce the buying power of the dollar to three or four cents of what it was before the days of Franklin Roosevelt.

Now if the budget were balanced and these trust finds were used to reduce the federal debt it would not be so bad, although this too would be illegal. If this were done, the debt and the interest on it could be reduced dramatically. But now the precise opposite is happening.

As I have noted before in this column such countries as South Korea and Singapore use the moneys which accumulate in annuity trust finds to finance homes, apartment projects, hotels and shopping centers in the private sector. All these pay interest, which increases the amounts in all personal retirement accounts.

Why cannot something like this be established in the United States, Canada, France, Italy, Germany, etc.? The answer is obvious; If such assets were available for investments in the private sector, the financiers could not collect hundreds of billions of dollars through the swindle known as fractional reserve banking, by which mortgages are created on virtually all private property in these counties.

Such loans are based on credit created out of thin air and do not actually involve the lending of any money at all.

In short, our enemies are those all-powerful financiers who became so primarily as a result of the passage of the Federal Reserve Act in 1913, a law which has now made the members of Congress completely subservient to those on whom the power was conferred, that is the power to issue our money, determine credit, set rates of interest, and cause inflation or deflation, depressions and panics at will.

Both Sides of Aisle Accused of Lying About NAFTA

By Andrew Arnold

The Republicans and the Democrats lied to you: the North American Free Trade Agreement (NAFTA) and World Trade Organization (WTO) are hurting American workers.

Virtually every day there are announcements of American employees losing their jobs. This comes in the wake of so-called free trade agreements that were supposed to create jobs.

Bill Clinton, George Bush, Bob Dole and Newt Gingrich promised Americans that free trade would be a boon to the American economy, but it has not worked out that way -- and American workers are paying the price.

For example, Utah's exports to Mexico reportedly doubled in 1994 to $110 million. But by 1995 that figure had fallen to $70 million. Last year, the Salt Lake Tribune reported nearly 350 Utahns qualified for NAFTA-related unemployment benefits.

"That number could be a lot higher then the 347 that have qualified, but we just don't know," said Roger Slagowski, unemployment insurance specialist for Utah's Department of Employment Security.

Unfortunately the American public seems to have become desensitized into accepting word of layoffs without raising an eyebrow. Columnist Andrew Cockburn says this is evidence the media is part of "the business Party," along with Republicans and Democrats.

Where was the opposition when sovereignty-robbing deals like the NAFTA and the GATT were worked out? According to many mainstream news sources, there was little if any opposition.

Last year, a national study by the University of California at Los Angeles reported nearly as many jobs had been lost thanks to NAFTA as had been added. In short, the gains promised by George Bush, Bill Clinton and Congress as they moved to have the pact put in law have not happened - in America. Critics point to Mexico, Malaysia, Taiwan, Honduras, Japan and China and say that's where jobs are being created.

For instance, Iomega Corp, makers of computer disk drives, plans to close a large part of its operation in Utah in favor of cheap labor in Malaysia Between 500 and 700 jobs in Roy, Utah are expected to be lost.

In Tennessee, more than 500 employees of the Sunbeam-Oster plant were told they would lose jobs as the plant moved to Mexico in a cost-saving measure.

And these are just a drop in the bucket. What has happened in the United States is the rapid disappearance of well-paying manufacturing jobs.

An investigation by the Philadelphia Inquirer's Donald Barlen and James Steele revealed 2.6 million manufacturing jobs have been eliminated since 1979.

While many new jobs have been created in America during the same period, they pay less than the jobs lost. In addition, the trade deficit, estimated at $173 billion for 1995, has cost Americans an estimated 3.46 million jobs. That figure uses the job-to-trade ratios the White House likes to throw around, i.e. every billion dollars of exports is worth 20,000 jobs.

Factory workers are not only losing jobs to cheap labor overseas, but more efficient production methods also require less workers. Populist economists warn that as more products are produced prices fall, bringing wages down. Prices in the United States can only fall so low, they argue, until something has to give.

Some critics claim the only Americans benefiting from the one world market are the multinational corporate giants. Free trade "does not lift all boats," says Jerry Mander, a senior fellow at the Public Media Center in San Francisco, "it's only lifting yachts. Eventually, the only way order can be maintained is through oppressive means."

"Economic globalization deepens the dependence of localities on detached global institutions that concentrate power, colonize local resources and share little in local success or failure," says author David Korten.

"While advocates of economic globalization commonly argue that globalization creates interdependence and shared interests, it is a misrepresentation," Korten added. "What is actually happening is a growing mutual dependence of people and localities on global corporations and financial markets."

Korten said people, and countries, are pined against one another in a "self-destructive competition for economic survival." In the meantime corporate heads and bankers hoard power through their ability to create money, ownership of assets and control of institutional mechanisms.

"This power increasingly is lodged in global financial markets and corporations, which have established themselves as the de facto governance institutions of the planet," Korten says. "The more globalized the economy, the greater this dependence and the greater the power of central institutions."

Even mainstream policy makers are beginning to see the danger of free trade. Free traders have attacked even "mainstream" writer William Greider, author of _One World, ready or Not_, for pointing out the dangers of "economic reforms" and "trade liberalization." Greider's book - which is available in most bookstores -- points out how changes in technology and the globalization of the world's productive process are reducing wages throughout the Western world. Consequently, these people can't buy products. Then the demand for products dries up and no one has a job.

Now opponents of free trade complain the debate has always assumed free trade is necessary. They want a level playing field.

"People describe this idea of the global economy as if it were a force of nature. But it is, actually, a thought-up system," Mander said. "It is only inevitable if we say it is."

"This globalization has not made people secure. Their security is greatly threatened. Their jobs are threatened. Their environment is threatened. It is not satisfying human needs."

According to Korten, "The idea that we are caught in the grip of irresistible historical forces and inherent human imperfections to which we have no choice but to adapt is pure fabrication.

Economic globalization is being advanced by conscious choices made by those who see the world through the lens of the corporate interest."

Marlin Maddoux, Point of View

Feb. 18, 1997 - Whenever you ask one of the so-called "experts" why children are so violent today and why they are doing so poorly in school the answer you're likely to get is, "low self-esteem."

Well in a recent issue of the journal Psychological Review, three respected researchers found a mountain of evidence pointing to a correlation between violence and high self-esteem. That's right, the kids with the higher self-esteem were found to be more likely to commit violent acts and get poorer grades. According to John Leo, writing in U.S. & World Report, quote, "The researchers find that violence is much more often the work of people with unrealistically high self-esteem attacking others who challenge their self image."

Keep in mind, this has nothing to do with self-confidence. Self- confidence comes from a firm foundation in objective reality, which is the basis for achievement and a truly good self image.

But the self-esteem industry today preaches that everyone is great and perfect just as they are.

One professor says, quote, "What would work better for the country is to forget about self-esteem and concentrate on self-control."

Congressman Ron Paul, a Texas Republican


(House of Representatives - February 25, 1997)

[This is a portion of his excellent speech. You can read the whole thing at http://mmc.cns.net/text/ronpaul.txt]

...One of the most important standards lost in this century has been that for liberty. The acceptance that liberty is composed of two separate elements, economic and personal, has done untold harm to our system. The fact that commercial speech receives no first amendment protection is baffling. Some of the best defenders of the first amendment are the greatest enemies of economic liberty and voluntary contracts. It is now strange to propose that voluntary economic transactions deserve the same protection under the law as personal, social, and religious associations. The divorce between economic and personal liberty must be reconciled if we ever expect to make a strong stand for a free society.

The welfare ethic has replaced the work ethic. This applies to corporate America, middle-class America, and the poor. Respect for work, savings, and investments and no government hindrance is required to have once again strong economic growth and a rising standard of living for all Americans.

Centralizing power and consistently expanding the role of the Government require an army of bureaucrats and a taxing authority upon which a police state thrives. There are over 100 laws on the books permitting private property seizure without due process of law. We have made it easy to seize any property by absurdly claiming the property itself committed the crime. The RICO mentality relating to law enforcement permits even the casual bystander to suffer severely from the police state mentality.

The drug war hysteria and the war on gun ownership started by Roosevelt in 1934 have expanded Federal police power to the point that more than 10 percent of all of our police are Federal. The Constitution names but three Federal crimes, so where is the justification? Talk about swarms of officers to harass our people and eat out their substance. We have hovering over us daily the Federal police from the EPA, OSHA, FBI, CIA, DEA, EEOC, ADA, F&WL, INS, BATF, and worst of all, the IRS. Even criticizing the IRS makes me cringe that it might precipitate an audit. It seems that all administrations, to some degree, used the power of the agencies to reward or punish financial backers or political enemies.

So much that had its origin in the 1930's, it was then that the FBI's role changed from friendly investigator helping local authorities to that of national police force.

We live in an age where the fear of an IRS registered letter bearing news of an audit surpasses the fear of a street mugging. The police are supposed to be our friend and the Federal Government the guarantor of our liberties. Ask the blacks in the inner city of Los Angeles if they trust the police and revere the FBI and the CIA. We should not have to cringe when a Federal agent appears at the door of our business. We should not even see them there.

A Congress sworn to uphold the Constitution ought to be protecting our right to our property, not confiscating it. Congress ought to protect our right to own a weapon of self-defense, not systematically and viciously attacking that right. Congress ought to guarantee all voluntary association, not regulate and dictate every economic transaction. We should not allow Congress to give credence to inane politically correct rules generated by egalitarian misfits. Setting quotas ought to insult each of us.

We need no more centralized police efforts. We need no more wiretaps that have become epidemic in this last decade. We have had enough Wacos and Ruby Ridges.

The foreign policy resulting from the philosophy that promotes welfarism is one of militarism and foreign interventionism. The Constitution does not permit the use of force to mold the internal affairs of other nations and involve ourselves in all worldwide conflicts. Creating a weapons industry and subsidizing international sales are not only forms of welfare, they distort the entire notion of providing for the national defense. It should surprise no one that our foreign policy is up for sale at election time. Our 20th century intervention in foreign policy supported by blind bipartisanship and based on the principle of using force in dealing with other nations threatens our security and challenges U.S. sovereignty.

The march toward internationalism endorses both unilateral and multilateral use of foreign aid. Now we find bipartisan agreement on the three legs upon which the New World Order stand: the World Bank, the IMF, and the newly created World Trade Organization. Many believe we are rushing toward the dream of the 20th century internationalists who earnestly seek a single-world government.

The demise of the Soviet Union system has permitted astounding advances for the promoters of internationalism. But the smooth sailing they all had hoped for is not yet evident. The expansion of NATO into Eastern Europe is being met with strong Russian objections. This will prove to be less significant due to Russia's military and economic decline than what it does to the current rapidly expanding Islamic fundamentalist movement. Islamic nations are gaining access to Soviet conventional and nuclear weapons, a fact frequently ignored by the media and our political leaders...

...Good intentions do a great deal of harm because they soften the opposition and make the proposals appear humanitarian. With man's imperfection, mistakes inevitably happen, making bureaucratic and political decisions dangerous to the many instead of the few. Planners cannot know the personal desires of the people. Governments cannot protect citizens from themselves without enslaving the whole Nation.

Planning requires government force, backed by government guns, and by its very nature is inefficient, wasteful, breeds fraud, and precipitates anger. Lobbying and campaign reform will not solve the conflict-of-interest problem. It will only drive the evildoers underground. The real problem with political corruption is that government has so much power and influence in every aspect of our economic lives, and it does pay to influence government officials...


Last week's Update contained an article about fingerprints being added to driver's licenses in Washington State. I received several interesting messages from people around the country saying that it was happening there too. Michigan just passed a law in the last couple of weeks to require a magnetic strip on driver's licenses. Here is the text of one of those messages from Georgia. -Editor

Being hand delivered to each member of the House, during Session on Feb. 27, 1997. This is quoted from the Illegal Immigration Reform and Immigrant Responsibility Act of 1996. It was passed in the last Defense Bill. It is unconstitutional federal law. It is an unfunded mandate. It is a national ID card. OUR NEW FINGERPRINT REQUIREMENT HAS NOTHING TO DO WITH DRIVER'S LICENSE FRAUD...NOTHING!!!!!

You can say this is a national ID card or a right to work card. Makes no difference. This is people control that Hitler would have been mighty proud of. What country are we in???????? If you do not stop this here and now, the whole country will blame you for what you have done to them and you will deserve it! THE NEWS MEDIA HAS ALREADY BEEN CONTACTED AND STORIES ARE ALREADY BEING GENERATED ON A NATIONAL BASIS

(Quote)From Public Law 104-208 Part B

(c) Scope of Operation of Pilot Programs.--The Attorney General shall provide for the operation-

(1) of the basic pilot program (described in section 403(a)) in, at a minimum, 5 of the 7 States with the highest estimated population of aliens who are not lawfully present in the United States;

(2) of the citizen attestation pilot program (described in section 403(b)) in at least 5 States (or, if fewer, all of the States) that meet the condition described in section 403(b)(2)(A); and

(3) of the machine-readable-document pilot program (described in section 403(c)) in at least 5 States (or, if fewer, all of the States) that meet the condition described in section 403(c)(2).

(b) Citizen Attestation Pilot Program.-- (1) In general.--Except as provided in paragraphs (3) through (5), the procedures applicable under the citizen attestation pilot program under this subsection shall be the same procedures as those under the basic pilot program under subsection (a). (2) Restrictions.-- (A) State document requirement to participate in pilot program.--The Attorney General may not provide for the operation of the citizen attestation pilot program in a State unless each driver's license or similar identification document described in section 274A(b)(1)(D)(i) issued by the State (i) contains a photograph of the individual involved, and (ii) has been determined by the Attorney General to have security features, and to have been issued through application and issuance procedures, which make such document sufficiently resistant to counterfeiting, tampering, and fraudulent use that it is a reliable means of identification for purposes of this section.

(c) Machine-Readable-Document Pilot Program.-- (1) In general.--Except as provided in paragraph (3), the procedures applicable under the machine- readable-document pilot program under this subsection shall be the same procedures as those under the basic pilot program under subsection (a). (2) State document requirement to participate in pilot program.--The Attorney General may not provide for the operation of the machine-readable-document pilot program in a State unless driver's licenses and similar identification documents described in section 274A(b)(1)(D)(i) issued by the State include a machine- readable social security account number. (3) Use of machine-readable documents.--If the individual whose identity and employment eligibility must be confirmed presents to the person or entity hiring (or recruiting or referring) the individual a license or other document described in paragraph (2) that includes a machine-readable social security account number, the person or entity must make an inquiry through the confirmation system by using a machine-readable feature of such document. If the individual does not attest to United States citizenship under section 274A(b)(2), the individual's identification or authorization number described in subsection (a)(1)(B) shall be provided as part of the inquiry.

Section 656--House sections 831 and 832 recede to Senate amendment section 118, with modifications. Without placing mandates on states, this section establishes grant programs to encourage states to develop more counterfeit-resistant birth certificates and driver's licenses.

After October 1, 2000, Federal agencies may only accept as proof of identity driver's licenses that conform to standards developed by the Secretary of the Treasury after consultation with state motor vehicle officials through the American Association of Motor Vehicle Administrators. Beginning 4 years after the date of enactment, Federal agencies may only accept birth certificates issued after such date that conform to standards developed by the Secretary of Health and Human Services after consultation with appropriate State officials. The managers intend that the new standards developed in consultation with state officials apply only to licenses issued or renewed after October 1, 2000, and only to birth certificates issued more than 4 years after the date of enactment.

The third pilot program, the machine-readable document pilot program, originates in Senate section 112(a)(2)(F). It will operate as does the basic pilot program, except that if the new employee presents a State-issued identification document or driver's license that includes a machine-readable social security number, the employer will make an inquiry through the confirmation system by using a machine-readable feature of such document. The employer would have to procure the device needed to read the machine-readable document and to supply the information needed for the inquiry through the machine-readable feature of the document.

Since the Social Security Administration does not keep up-to-date records of the employment eligibility of aliens, those employees who do not attest to citizenship will also have to provide their INS- issued numbers, which the employers will pass on when making inquiries through the confirmation system. Employees not possessing machine-readable documents will be confirmed as under the basic pilot program. The machine-readable document pilot program is of course limited by the number of States which issue such enhanced documents and the fact that even in such States, not all individuals will have the machine-readable documents. Thus, it will only operate in at least 5 of the States (or, if fewer, all of the States) which issue driver's licenses and other identification documents with a machine-readable social security number (which need not be visible on the card). States are encouraged to issue such documents since use of machine- readable documents makes the confirmation process simpler and provides additional assurance that the documents are genuine.

Section 326--Senate recedes to House section 361. This section amends section 130002(a) of the Violent Crimes Control and Law Enforcement Act of 1994 (VCCLEA) to require that the criminal alien identification system be used to assist Federal, State, and local law enforcement agencies in identifying and locating aliens who may be removable on account of criminal or other grounds. The system shall provide for recording of fingerprints of aliens previously arrested and removed into appropriate automated identification systems.

Section 327--House recedes to Senate amendment section 313. This section amends section 130002(b) of VCCLEA (criminal alien tracking center) to establish an authorization for appropriations of $5 million per year for each of fiscal years 1997 through 2001. (End Quote)

Do not go under the assumption that this would apply ONLY to those with social security numbers or to states that mandate each person give one. Our machines DO have the ability programmed into them for the Social Security number. You do not HAVE to give it. That is true in all states. It is a federal offense to force people to give it. You can ONLY ask for(request) it. Otherwise it's a violation of USCA Title 5, Section 552 a.

As far as the "American Association of Motor Vehicle Administrators" are concerned, I found this odd, but they stated in the Georgia Request for Proposal for our new machines, that the "fingerprint" is a better identifier than a retina scan. Thought it was odd, that's why I remember it. (It is in the documentation).

Also, and probably most importantly is this: "After October 1, 2000, FEDERAL AGENCIES MAY ONLY ACCEPT AS PROOF OF IDENTITY DRIVER'S LICENSES THAT CONFORM TO STANDARDS DEVELOPED BY THE SECRETARY OF THE TREASURY"!!!!!!!!! Ask yourself what the "Treasury" has to do with driver's licenses and safe driver's/roads!!!!!!!!!!!!!! Wake up!!! We don't live in Russia...yet!!! Obey your oath.


This is also available via http://www.mcwebs.com/repeal/webupd.htm

If you would like to submit an editorial, commentary, or news story from your perspective on something you have been keeping an eye on, please e-mail it to xxx and it will be evaluated for entrance. Thanks.
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