Professional Documents
Culture Documents
Aliania
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IN T H E UNITED STATES DISTRICT COURT
F O R T H E NORTHERN DISTRICT OF GEORGM*^^^^^
ATLANTA DIVISION
^^Yfk
S E C U R I T I E S AND E X C H A N G E
COMMISSION
Plaintiff
Civil Action File
No. l:14-CV-02468-AT
vs.
Thomas J , Lawler and F R E E D O M
FOUNDATION USA L L C dba
F R E E D O M C L U B USA,
DEFENDANT'S SUPPLEMENTAL
PLEADING / DECLARATION /
MOTION TO AMEND / R E L I E F
F R O M JUDGMENT
Defendant(s),
DIVINE SPIRIT L L C ,
O R D E R PROCESSING L L C
P R O S P E R I T Y SOLUTIONS L L C , and
V I O L E T BLESSINGS L L C ,
Relief Defendant(s).
Se,
and
TO
Defendant
employs Rule 15(d) and Rule 60 to enter new evidence that occurred to
Defendants in support of arguments and seeks Amendment of Judgment
Denying
DEFENDANT'S
MOTION
TO
RECONSIDER ORDER
this Court by Defendant are hereby incorporated as i f fully set forth herein.
2.
provision to secure legal counsel in order to provide for and present a proper
defense. Defendant(s) have been denied due process.
3.
deficient in facts that only Private Club Members possess via ongoing
members' only conferences, Q & A and active participation in their own
studies. Plaintiff has not studied specific topics in question nor disproved
such theories, processes, and information. It is easy to discredit that which
one does not understand. There is no basis for the allegations of FRAUD.
There are hundreds of other 3''^ party resources to support Defendant's basis
of information and administrative process and the long standing legal
process of the Notarial Protest. One need not be a Private Club Member to
study the many independent resources available but certainly must be a
participating Private Club Member to know and understand all of the facts,
which Plaintiff does not.
5.
6.
Benefits/services/programs,
including
the
Administrative
Remedy, are not marketed or available to the general public. Private Club
Membership may be extended through invitation.
7.
Plaintiff has
actions by
prima facie case but rather eloquently influenced the Court with their own
rights.
PARTIES
10.
("COMMISSION" OR "SEC"),
11.
Defendant(s):
Findings of Facts and Conclusions of Law published with any order of this
court.
9.
needed.
JURISDICTION AND VENUE
11.
comes before the Court, under duress, Pro Se, due to the fact that this Court
has DENIED him a court appointed attomey and additionally ordered a
TEMPORARY RESTRAINING ORDER, still in force as of this date,
disallowing enough Uquidity of ftinds to secure proper legal representation,
that which far exceeds what this Court has allowed as available. Since all
other named Defendants are non-living entities, cannot speak for themselves
and can only be represented by Court recognized legal counsel, they too
have been denied proper legal counsel by the unjust restraint and freeze of
available fiinds. There is no valid fact entered to support the severity of
order of action.
13.
August 8, 2014 due to the restraint and deprivation of legal counsel so as not
to fiirther incriminate himself, not being schooled in law, procedure or
No acknowledgment,
reschedule or retum call was provided by the court. For the record, Mr.
Lawler did not simply "skip the hearing" as was stated in PLAINTIFF'S
RESPONSE TO DEFENDANTS' MOTION TO RECONSIDER ORDER
DENYING DEFENDANTS' MOTION TO DISMISS. Another non trath
which seems to be rampant throughout Plaintiffs pleadings.
14.
provide for, much less present, a proper legal defense. Hence, Thomas J.
Lawler presents Pro Se.
15.
support under Fed R. Civ. P. Rule 15. As taught and pubHshed, by Georgia
call it justice because someone in a robe decides the case," said George
Hansen, the executive director of Legal A i d of North Carolina, "but really,
there's no adversarial process taking place." It would not be difficult to
establish a prima facie case when no adversarial process takes place", as was
the case in this matter. Defendant looks to the Court to reconsider whether or
not a prima facie case is indeed established. Defendant is not repackaging or
rearguing points but rather should be heard and considered, since they were
not, when deciding whether or not the Plaintiff did in fact establish a prima
facie case. Defendant asserts it was not.
18.
cause of action much less continue their effort to support their void
allegations, as they relate to a "Private Club" or otherwise in order for the
Court to proceed against a Private Club or its Founder, Members, Agents, et
al. When asked by Judge Totenberg during the emergency phone hearing, i f
he had any experience or case law as it relates to a "CLUB", counsel for
Plaintiff, Pat Huddleston, I I responded to the negative. Plaintiff should be
compelled to support this important point under the law.
19.
A l l Club benefits/services/programs,
none of which
are
"investments", are offered ONLY to Club Members who have chosen their
own path of education. Club benefits/services/programs are NOT offered or
open to the general public. Plaintiffs allegations of "Unregistered
Securities" are void of any valid, legal basis.
20.
12
23.
for example, who touts that their service is superior, that they have expertise,
information or connections where others do not (choosing to keep that
confidential and proprietary) and would help one to obtain the monetary
salary level or result they desire - would that service provider/contract also
then be guilty of selling a security? Would it also be deemed fraudulent
and/or deceptive i f that individual did not obtain desired results? One did
spend money, for an organization's or individual's services, wishing to
achieve a certain monetary results derived from the efforts of the service
provider. This, a parallel drawn demonstrating the broad application or
misapplication that can occur. This parallel can apply to most any service
organization or service provider i f one wishes to enhance the circumstance
to fit their need.
24.
paid, categorizing all as such, and calls for the "disgorgemenf of same
alleging that all Defendants and Relief Defendants have been unjustly
enriched. Perhaps the cost of doing business and related expenses have been
overlooked by the Plaintiff
13
25.
OF
ITS
APPLICATION
FOR
TEMPORARY
STATES
DISTRICT
COURT
FOR
THE
NORTHERN
14
investments but were generated were used to pay for services provided.
Secondly, the Club offers and sells nothing to the general public with the
exception of Private Club Memberships. Benefits/Services/Programs are
available only to Private Club Members. Third, the Club does NOT promote
"investments" or "securities".
27.
hunt with total disregard of true fact or lack of education or both. With
specific regard to the "Administrative Remedy" ("A/R"), the process by
which these void allegations are based, the facts are indisputable that
15
16
The fact remains that there was no valid basis and is still no
support
"securities"
allegations
that
there
are
involved.
Plaintiff
17
plaintiff," anything can be well-pleaded, but the facts of the matter must be
true. The SEC has not proven a prima facie case of violations of the
antifraud provisions of federal securities laws and therefore should not be
given the forum to continue a void COMPLAINT and RESTRAINING
ORDER, ASSET FREEZE, AND OTHER EQUITABLE RELIEF. They
have proven nothing more than a Private Club, offering and providing
educational and administrative services/programs/benefits and Private Club
Members engaging in same as they so choose, subsequent to their own
research, and whose participation plays a role in the very outcome of each of
the various services/programs in which they engage.
31.
or perpetuate such
language.
and
provide grounds for Membership termination from the Club. (See EXHIBIT
B).
32.
19
and provided education and information and 3'"' party materials for Club
Members to do their own research and draw their own conclusions.
Defendant(s) have made no known untrue statements of fact nor leamed
omissions during the course of providing information and resources. The
Club may stand accused only of "leading" and not "misleading" Private
Club Members to do their own research, due diligence and form their own
conclusions based on many other resources. Members continue to provide
additional resources for the benefit of other fellow Club Members. Much of
the information and education offered by the Club was and is in fact
contributed by Club Members. We are a Club of Club Members and not
"investors" as is referred to and misstated throughout Plaintiff documents
and Court Orders.
34.
and
of means or
20
35.
Club Member (the Plaintiff is not a Club Member nor injured party), in the
event of a dispute, all Club contracts clearly define Arbitration and United
States Arbitration and Mediation Rules of Arbitration as the only remedy.
The Commission is neither a Private Club Member nor an injured party. As
a matter of fact, to date, there have been no known complaints brought forth
by any Club Member. Not one individual to date has exercised that option or
claimed injury.
36.
In
Paragraph
4.
of
Plaintiffs
APPLICATION
FOR
21
leamed, known and believed trae by Mr. Lawler in his testimony. It would
be impossible to prove herein all information and facts in what has taken
years of study. Defendants supplement with evidence of trath and fact to
support their "fantastical story". One cannot dispute these facts. Defendant
offers more than adequate trath and fact to disprove fraud.
38. Modern Money Mechanics, A workbook on Bank Reserves and
Deposit Expansion, published by the Federal Reserve Bank of Chicago, is a
well known publication that describes how the banks create all money from
the "borrowers" signature on a promissory note (not from the bank's assets
or from its depositors). It is called "fractional banking". As stated in Modem
Money Mechanics:
"Of course, they (the banks) do not really pay out
loans from the money they receive as deposits. If
they did this, no additional money would be
created. What they do when they make loans is to
accept promissory notes (loan contracts) in
22
23
account. As a matter of fact, this is not the Defendant's rule, spin or process,
but that of the Federal Reserve's Modem Money Mechanics. (Refer to
Exhibit C, Modem Money Mechanics, pages 7 - 1 1 ) .
40.
paid "loan", is the fraud and basis for the Administrative Remedy, the
Notarial Protest.
41.
to the United States Treasury and President Barack Obama as preparation for
processing the administrative services performed. Great care was taken
"not" to bring harm to any banks or the US Treasury with payment of the
AR claims. These claim payments will cost neither the banks, taxpayers nor
the US Treasury even one dime with our proprietary process nor create any
new debt.
24
This is not a "story" or a "spin" but is the pathway for remedy. (See Exhibits
D&E)
42.
expenditures. Mr. Lawler has never taken a salary or commission from club
proceeds in the life of the club. He has an agreement to borrow on occasion
at a 5 percent annualized rate for personal use which has averaged from
$5,000 to $10,000 per year. Mrs. Lawler has a similar agreement and has
borrowed approximately $5,000 or less per year for the 10 years of her
related work. There are no lavish vehicles, no fancy home or lavish
vacations. The Lawler's have occupied their single residence for 29 years
with 2 vehicles of 95,000 and 160,000 miles respectively. Funds received by
the Club were used to support the organization, usual and customary
expenses and overhead, and the multiple benefits/services/programs, serving
Club Members. There are no hidden funds, no personal luxuries. Bank
statements and funds activity has been excruciatingly reviewed, transfers of
funds reasonably explained with no evidence of misuse of Club funds or
hidden funds that the Plaintiff seems to have convinced the Court, despite
reviewing bank statements to the contrary. Yet the Plaintiff continues to
25
26
27
freeze
or
any
other
equitable
relief
The TEMPORARY
28
29
SUMMARY
30
consideration
of the
overwhelming argument
and
supplemental Pleading showing that the Plaintiff was unable to prove their
claims and did not meet the burden of proof to establish a prima facie case,
but was nothing more than a preponderance of one sided twisted bits of
information spun into a palatable presentation to suit their needs, and as a
matter of law, this action should be dismissed and the Plaintiff sanctioned
for misuse of law and deceptive practices, at the very least.
31
56. As a final note, the Defendant(s) may never recover from the
harm inflicted by this action.
PTj A V F R F O R R E L I E F
including
ORDER
TO
SHOW
CAUSE,
TEMPORARY
ORDER
PROHIBITING
DESTRUCTION
OF
Court fees and any and all costs of this action against the
Defendants; and.
32
15.
33
C E R T I F I C A T E OF COMPLIANCE
In accordance with Local Rule 7.1D and 5.1C, I hereby certify that the
foregoing has been prepared using Times New Roman 14 point font.
This
ay of October, 2014.
34
C E R T I F I C A T E OF S E R V I C E
35
DIVINE SPIRIT L L C
Registered Agent
Incorp Services
2847 S. Ingram Mill Road, Suite AlOO
Springfield, MO 65804-4006
O R D E R PROCESSING L L C
Registered Agent
Incorp. Services, Inc.
2000 Riveredge Parkway, NW, Suite 885
Atlanta, GA 30328
P R O S P E R I T Y SOLUTIONS L L C
Registered Agent
Judith Harris
950 Herrington Road, C-197
Lawrenceville, GA 30044
V I O L E T BLESSINGS L L C
c/o Diane Lawler
5077 Tanaga Court
Stone Mountain GA 30087
vs.
Thomas J . Lawler and FREEDOM
FOUNDATION USA L L C dba
FREEDOM CLUB USA,
Defendant(s),
DIVINE SPIRIT L L C ,
ORDER PROCESSING L L C
PROSPERITY SOLUTIONS L L C , and
V I O L E T BLESSINGS L L C ,
Relief Defendant(s).
10.1 have always advocated that Private Club Members and prdspective
,rd
tial study
11 .The Member must verify that they have completed a substan|;
and proven understanding of the basis of the Administrative flemedy,
related history and full information before providing data an^
engaging services.
12.Members are clearly advised and must agree at multiple stagbs
(Member Agreement, at order placement and on intro and mijmber
conference calls), that there is no promised outcome and all ^ervices
are provided on a best efforts basis.
13.Industry and case law research is the foundation for the calci^lation of
settlement which ultimately will be settled by the United Stales
Treasury.
14.Based on the administrative package submitted to the Treast^, I am
confident that settlement calculations provided by individual^ are just
and will be acceptable by the Treasury.
15.1 am confident in these statements based upon a proprietary process
whereby it will cost neither the Treasury nor the Tax Payer a^iything
and add zero to any debt.
I declare under penalty of perjury that the foregoing is true and cortecttothe
i
best of my knowledge and belief
Thomas J. La\vler
This Independent Contractor Agreement (the "Agreement") is made and entered between an independent
contractor, hereafter referred to as "Member", and Freedom Foundation USA, LLC (FFUSA) dba Freedom Club
USA (FCUSA), a Nevada Limited Liability Company with a primary office located 2533 N. Carson St., Carson
City, Nevada, 89706 with primary mailing office at 4002 Hwy 78, Suite 530-321, Snellville, 30039, hereafter
referred to as "FCUSA" or "Company". Upon acceptance by both parties, this agreement replaces any existing
Ambassador, Referrer or Consultant Independent Contractor agreement between the parties for all future
business. FFUSA and FCUSA are synonymous throughout this agreement.
FCUSA, upon verification and deposit of member funds thru the online order form and at the sole discretion of
FCUSA, will activate such Member into Freedom Club USA Early Bronze Program.
Member dues are as follows:
Membership dues are $300 annually or $1000 lifetime. The annual membership includes the member, spouse
and their children living with them up through college age at time of membership acceptance by FCUSA. No
renewal fees are due for annual memberships until "interim or Administrative Remedy (AR) funding" takes place.
Upon funding, each individual within the family will continue their membership but convert to an individual
lifetime membership and unique member number upon submission of their first Administrative Remedy (AR)
from which $1,000 will be deducted one time and automatically renew annually thereafter with no further
membership payments due.
Club benefits:
Your membership in Freedom Club USA is a non-voting membership and is limited to use of club
benefits. No ownership, other duties or obligations apply to your membership other than stated herein.
Member has full access to all club education programs and all future programs at the posted fees.
Member has access to these programs for the length of their membership beginning from the date of
acceptance by FCUSA of this agreement.
Member may extend their membership for each additional year or for life at the then current
membership fee upon club approval.
Membership applies to an individual only (each spouse or child of legal age must acquire their own
membership).
Current and upcoming programs include but are not limited to education regarding: mortgages, credit
cards, student loans, car loans, IRS, CRA, prosperity training, wellness programs and health products or
as added, removed or adjusted at the discretion of FCUSA.
Members are required to complete FCUSA Study Guides to receive backend payment.
All programs are the member's processes until assigned to FCUSA for processing and payment, and are offered
on a best effort basis with no guarantee expressed or implied on any program, current or future. Once
assigned to FCUSA, they are held and controlled by FCUSA for the life of the process. Member payments for all
educational processes are payable to "Freedom Foundation USA" via money order or cashier's check.
Membership Agreement is accepted only after review of your "Membership Application" by FCUSA and email
confirmation.
Membership dues and program costs are not refundable or transferable. Upon funding of your first AR or
commissions, a lifetime membership fee, QE and Coaching will be assessed and deducted from your account.
Costs:
Annual membership: $300
Page 1 of 9
Page 2 of9
I. RULES OF DISBURSEMENT
1.
Early Bronze members may purchase Administrative Remedy (AR) educational programs as desired
with the cost of the remedy credited back to the member during their backend payout.
2. Special Early Bronze Payouts: Should the Early Bronze member submit one or more ARs
and pay in 7 days (US) or 14 days (International) prior to Full Bronze Membership web
announcement, the member will lock in the EARLY BRONZE higher rates on ail their AR
submissions for the life of their membership. Submission of an AR during this phase will
also complete sooner and will likely accelerate the funding payout. Should the Early Bronze
member not submit an AR prior to Full Bronze Membership web announcement, their ARs will
default to the normal "Payout" amounts below. The member may choose a "B" program on
their first AR submission only to lock in Early Bronze rates with the exception their "B" program
will pay out as indicated below.
> .A."* \
|i j Nil! fif
Programs
Pnyout
Early Bronze
Booster 1
Early Bronze
Booster 2
Early Bronze
B Program
Payout
S
S
S
S
S
2.700 Programs
250.000 Payout
Early Bronze
1,000 Booster 1
Early Bronze
1.000 Booster 2
Early Bronze
1.200 B Program
Payout
S
S
S
$
S
2.700 Iprograms
250.000 jPayout
Early Bronze
1,000 Booster 1
Early Bronze
1,000 Booster 2
Early Bronze
1.200 B Program
IPayout
$
$
$
$
$
$
$
$
$
2,700
100,000
150,000
1,000
250,000
1,000
350,000
1,200
50,000
3. When FCUSA receives the proceeds from funding source, FCUSA will disburse monetary
funds due Member within 10 business days of receipt.
Once FCUSA has received your payment and approved your membership, you are entitled to use all
club benefits. Some club benefits (QE and Coaching require an additional fee but will be deducted
from your first AR payout). The membership payment date shall be the date upon which your
membership will begin and from which all club renewals will be calculated. Please contact your
ambassador should you have questions about the program or visit www.freedomclubusa.com.
CONTRACTURAL SHARING: FCUSA does not condone contractual sharing of member's backend
distributions with any referring parties. Should the member have contracted with any source (written
or verbal) prior to or after signing of this agreement for purposes of sharing backend proceeds from
the sale, trading or other benefit from your AR from the FCUSA program:
your agreement with FCUSA will be null and void
all monies paid for educational programs, dues or services will not be refunded to member
all work on your educational program will cease.
no further disbursements will be made to member.
All third parties involved in the contractual sharing will be excluded from FCUSA membership and
processes and if already involved in a process, no payout or refund will be issued to the third
parties.
Pages of9
By accepting your membership with FCUSA, you are acknowledging all these terms and conditions.
[[. NON-DISCLOSURE/NON-COMPETE
Recitals
A. "FCUSA" wishes to provide "Member" certain educational information pertaining to debt
resolution/equalization including, but not limited to: mortgages, credit card, car loans, student
loans, IRS and other programs plus all variations of these. This includes all communication of
information between the parities in any form whatsoever, including oral, written and machinereadable form, pertaining to the above.
B. "FCUSA" is providing this educational information to "Member" for the purpose of providing asset
reclamation and asset protection information, which is to be confidential and regards said
information to be as a trade secret. FCUSA desires to protect those parts from unauthorized
disclosure or use (such confidential trade secret parts being hereafter collectively referred to as
"Information").
C. "FCUSA is willing to disclose "Information" to "Member" on the terms and conditions set forth
herein.
D. "Member" agrees not to compete with "FCUSA" or disclose "Information" per the terms and
condition set forth herein.
E. Should "Member" wish to contract as an Ambassador with FCUSA; the "Member" can apply
online.
111. AGREEMENTS
Therefore, "FCUSA" and "Member" agree as follows:
1.
"Member" shall:
a. (1) Not disclose "Information" of "FCUSA" to any other person and (2) use the
same degree of care to maintain the "Information" confidential as "Member"
would use in maintaining Members own confidential Information, but always at
least to a reasonable degree of care;
b. Use the "Information" only for the above purpose;
c. Not compete with "FCUSA" by utilizing "FCUSA" educational processes for their
own use or to sell such educational processes to any third party without the
express written permission of "FCUSA";
d. Upon any termination, within fifteen (15) days following request of "FCUSA",
return to "FCUSA" all documentation, copies, notes, diagrams, computer
storage media and other materials containing any portion of the "Information",
or confirm to Owning Party, in writing, the destruction of such materials;
e. Not allow any "non members" to 3 way or take part in "member's only" calls or
information nor divulge "Member" only login or passkeys to non members.
2. Disclosure. This agreement imposes no obligation on "Member" with respect to any portion
of the "Information" received from "FCUSA" which (a) is or becomes generally known or
publicly available other than by unauthorized disclosure, (b) is independently developed by
"Member" or (c) is disclosed by "FCUSA" to a third party without a duty of confidentiality on
the third party.
Page 4 of 9
3. Confidentiality. "CONFIDENTIAL" includes, but is not limited to all written and verbal
communication provided to "Member" by any means.
4. Property. The "Information" shall remain the sole property of "FCUSA". "FCUSA" makes
no representation with respect to, and does not warrant any "Information" provided under this
agreement, but shall furnish such in good faith. Without restriction the generality of the
forgoing, "FCUSA" makes no representations or warranties, whether written or oral, statutory,
express or implied with respect to the "Information" which may be provided hereunder,
including without limitation, any warranty of merchantability or of fitness for a particular
purpose. "FCUSA" shall not be liable for any special, incidental or consequential damages of
any nature whatsoever resulting from a receipt or use of the "Information" by the "Member".
5. Breach. In the event of a member breach or threatened breach or intended breach of
this Agreement by "Member", "FCUSA" may proceed with termination of the membership as
outlined in Breach and Termination below.
6. License. "Member" will not export, directly or indirectly, any technical data acquired from
"FCUSA" or any product utilizing any such data to any country for which the U.S. Government
or any agency thereof at the time of export requires an export license or other governmental
approval, without first obtaining such license or approval from "FCUSA".
7. Rights. The Rights and obligations of the parties under this Agreement may not be sold,
assigned or othenwise transferred. By signing this document with my electronic signature I,
the Assignor "Member", without recourse, irrevocably assign to Freedom Foundation USA,
LLC, the assignee, its successors and assigns, all Administrative Remedies (AR) they
process on my behalf together with the property descriptions and properly secured, and also
all the rights including rights of holder in due course, title and interest of the Assignor of and
to the assets described in the AR.
8. Privacy: IVlember agrees to not d i s c l o s e to any parties outside of their direct family,
F C U S A and essential financial parties regarding any amount or percentage a member
h a s received a s a result of any educational p r o c e s s offered by F C U S A .
9. Inouiries. Member agrees to respond to any inquiries from law enforcement or legal
authorities or courts that vou are under a non-disclosure contract and cannot divulge any
details of this agreement or with whom it is made. Any violation of these non-disclosure
rules c a n mean reduction of any of member's back-end payouts to a minimum of 10%
at the discretion of F C U S A .
Pages of9
10. Entrapment. Member agrees to disclose in writing to FCUSA headquarters that if true, the
member is an agent for Federal, State, or Local agencies being officially or unofficially on a
mission of entrapment or for any investigative purposes immediately upon or before entering
into this agreement.
1 1 . Relationship of Parties. Contractor is an independent contractor of the Company.
Nothing in this Agreement shall be construed as creating an employer-employee relationship,
as a guarantee of future employment or engagement, or as a limitation upon either party's
sole discretion to terminate this Agreement at any time without cause. Contractor further,
agrees that, if the Contractor determines that he/she is a "taxpayer," or is a party made
"liable," then the Contractor shall be responsible for all of Contractor's federal and state taxes,
withholding, social security, insurance, and other benefits.
12. Free Will. Member is participating in this educational process and any subsequent
educational process, solely on their own behalf and of their own free will.
13. Indemnification. The Member agrees to indemnify and hold harmless FCUSA, Freedom
Club USA, FFUSA, Freedom Foundation USA, LLC and their officers, directors, employees,
consultants, referrers, ambassadors representatives, members and agents from any and all
claims, damages, failure to perform, breach of contract, or any other potential liability
regarding the benefits and services as offered by F C U S A . " . "FCUSA" agrees to operate in
good faith and put forth a best effort to monetize the administrative remedy / A R judgments.
All processes/programs and/or services are provided to member on a best efforts basis.
FCUSA reserves the right to amend this agreement from time-to-time with any new
provisions binding to both parties as is necessary to memorialize accurately this agreement
between Member and FCUSA and accurately depict the agreement between FCUSA and
member and to maximize the administrative remedies- payouts of the Member and FCUSA.
"Member" hereby agrees, warrants and attests that they will provide true and accurate
information, at all times, to the best of their knowledge, and will at no time knowingly and/or
willfully misrepresent, or provide false, misleading, or inaccurate information.
"Member" agrees that they are solely responsible for the validity and accuracy of any and all
information provided to "FCUSA" Freedom Club USA and/or "FFUSA" Freedom Foundation
USA, LLC, e t a l .
14. Death or Permanent Incapacity of "Member" / "Member Successor".
"Successor" is defined as any one natural person claiming a lawful interest in "FCUSA"
benefits of a deceased or permanently incapacitated "FCUSA Member".
"Permanent Incapacity" is defined as the inability to act on one's own behalf, including but not
limited to permanent confusion, permanent lack of consciousness or other disability rendering
individual permanently void of capacity to act and/or make decisions with no reasonable
expectation of meaningful recovery. Must be confirmed in writing by a competent Medical
Doctor.
"Interest" is defined as access/ownership/control of existing benefits of deceased Club
Member as detailed in "FCUSA" agreements and documentation.
Page 6 of 9
Termination with cause: Should Contractor be removed due to breach, all unpaid
commissions will be forfeited to Company. All educational processes submitted or in process
will be forfeited to Company. No refunds will be provided to Contractor for any fees paid to
Company.
Notifications of termination may be sent via Email, US Mail or fax to the last known address
of the other party.
All items in this agreement regarding NON-DISCLUSURE/NON-COMPETE, disputes and
privacy will survive termination of this agreement.
18. Entire Agreement. This Agreement, contains the entire agreement and understanding
between the parties hereto and supersedes any prior or contemporaneous written or oral
agreements, representations and warranties between them respecting the subject matter
hereof.
19. Disputes. In the event a dispute shall arise between the parties to this agreement, it is
hereby agreed that the dispute shall be referred to the American Arbitration Association or
alternate service by agreement of the parties. The Federal Arbitration Act shall govern the
arbitration procedure and not any one single law of any particular state law. The parties agree
that any arbitration shall be held by an arbitrator with experience in contract and common law
and the hearing shall be held in the closest county of the FCUSA business offices for
arbitration in accordance with the applicable United States Arbitration and Mediation Rules of
Arbitration. The arbitrator's decision shall be final and legally binding and judgment may be
entered thereon.
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USA
Page 9 of 9
Introduction
Deposit Expansion
When the Federal Reserve Bank purchases govemment securities, bank reserves increase. This happens
because the seller of the securities receives payment through a credit to a designated deposit account
at a bank (Bank A) which the Federal Reserve effects by crediting the reserve account of Bank A
F E D E R A L RESERVE
BANK
Assets
U.S. govemment
securities
+ 10,000
Liabilities
Assets
Liabilities
Reserves with
Reserve accounts:
Bank A
+10,000-4- F.R. Banks
+ 10,000
Customer
deposit
+ 10,000
The customer deposit at Bank A likely will be transferred, in part, to other banks and quickly loses its identity amid the huge
interbankflowof deposits.
10,000
- i ^
9,000
ExpansionStage 1
STAGE
Liabilities
Assets
Loans
BANKS
9,000
Borrower
deposits
+ 9,000
amount of new reserves is thus the reciprocal oftiierequired reserve percentage (I/.IO = 10). Loan expansion
will be less by the amount oftiieinitial injection. The multiple ejqKuision is possible because the banks as a group
are like one large bank in which checks drawn against
borrowers' deposits resuk in credits to accounts of other
depositors, with no net change in total reserves.
E^qpansion throu^ Bank Investments
Deposit expansion can proceedfi-ominvestments
as well as loans. Suppose that the demand for loans at
some Stage 1 banks is slack. These banks would flien
probably purchase securities. If the sellers oftiiesecurities
were customers,tiiebanks would make payment by crediting the customers' transaction accounts; deposit liabilities
wouldrisejust as if loans had been made. More likely,
tiiese banks would purchase the securitiestiiroughdealers, paying fortiiemwitii checks on themselves or on their
reserve accounts. These checks would be deposited in
flie sellers' banks. In either case,tiienet effects on tiie
banidng system are identical with those resulting fi"om
loan operations.
ALL BANKS
Loans
Total
Liabilities
Assets
Reserves with
F.R. Banks
+ 10,000
+ 9,000
+ 19,000
Deposits:
Initial
Stage 1
+ 10,000
+ 9,000
Total
+ 19,000
10,000
1,000
900
_L?^
8,100
STAGE
Assets
Reserves with
F.R. Banks
- 9,000
Borrower
deposits
- 9,000
Liabilities
Assets
Liabilities
Reserve accounts:
Stage I banks
Other banks
OTHER BANKS
F E D E R A L RESERVE B A N K
Assets
BANKS
Liabilities
9,000
9,000-
Reserves with
F.l^ Banks
Deposits
+ 9,000
+ 9,000
STAGE 2 B A N K S
Loans
+ 8,100
ALL
Total
Borrower
deposits
+ 8,100
BANKS
Uabilities
Assets
Reserves with
F.R. Banks
Loans:
Stage 1
Stage 2
Liabilities
Assets
+ 10,000
+ 9,000
+ 8,100
+ 27,100
Deposits:
Initial
Stage 1
Stage 2
+ 10,000
+ 9,000
+ 8,100
Total
+ 27,100
Butfterear.still7,290ofexcessresen,esinthe
^ts'T^^X^^^'d^'^^^^^^^^
bankmg system.
900
810....
2,710
7,290
1 '
to
Stages
banks
20
As borrowers make payments, these reserves will be further dispersed, and the process can continue through
many more stages, in progressively smaller increments, until the entire 10,000 of reserves have been absorbed
by deposit growth. As is apparent from the sunmiary table on page 11, more than two-thirds of the deposit
ejqiansion potential is reached after thefirstten stages.
It should be understood that the stages of expansion occur neither simultaneously nor in
the sequence described above. Some banks use their reserves incompletely or only after a
considerable time lag, while others expand assets on the basis ofexpected reserve growth.
The process is, in fact, continuous and may never reach its theoretical limits.
Liabilities
Assets
Reserves
Loansand
Investments
9,000
17,100
24,390
30,951
36,856
42.170
46,953
i51,2S8
55,132
58,619
Deposits
10,000
19,000
27,100
34,390
40,951
46,856
52,170
56,953
61,258
65,132
68,619
1.094
79,058
89,058
90.000
100,000
fRequirecl]
1,000
1,900
2.710
3,439
4,095
4,686
5,217
5,695
6,126
6,513
6,862
[ExcessJ
Total
lOvOOO
10.000
10,000
10.000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Stage 20.
10,000
8.906
Final stage.
10,000
10,000
9,000
8.100
7,290
6,56)
5,905
5,314
4783
4,305
3;8f4-
:307
3,im.
100.000
12
where the smaller volume of reserves is adequate to support them. The contraction multiple is tiie same as that
which appHes in the case of expansion. Under a 10 percent
reserve requirement, a $10,000 reduction in reserves would
ultimately entail reductions of $100,000 in deposits and
$90,000 in loans and investments.
As in the case of deposit expansion, contraction of
bank deposits may take place as a result of either sales of
securities or reductions of loans. While some adjustments
of both kinds undoubtedly would be made, the initial impad probably would be refleded in sales of govemment
securities. Most types of outstanding loans cannot be
called for payment priortotheir due dates. But the bank
may cease to make new loans or refiise to renew outstanding onestoreplace those currentiy maturing. Thus, deposits built up by borrowers for the purpose of loan retirement
would be extinguished as loans were repaid.
There is one important difference between the expansion and conh-action processes. When the Federal Reserve
System addstobank reserves, expansion of credit and
deposits may take place up to tiie limits permitted by the
minimum reserve ratio that banks are required to mamtain.
But when tiie System acts to reducetiieamount of bank
reserves, conti:action of credit and deposits must take place
(excepttothe extenttiiatexisting excess reserve balances
and/or surplus vault cash are utilized) to the point where
the required ratio of reserves to deposits is restored. But
tiie significance oftiiisdifference should not be overemphasized. Because excess reserve balances do not earn interest, there is a sb-ong incentive to convert them into earning
assets (loans and investments).
Deposit Contraction
11
When the Federal Reserve Bank sells govemment securities, bank reserves decline. This happens becausetixebuyer
of tiie securities makes payment tiirough a debit to a designated deposit account at a bank (Bank A), witii tiie U-ansfer of
funds being effected by a debit to Bank A's reserve account at flie Federal Reserve Bank.
FEDERAL RESERVE
BANK
Liabilities
U.S. government
securities
Reserves with
Reserve accounts:
Bank A
- 10,000 4 - F . R . Banks
- 10,000
Liabilities
Assets
Assets
- 10,000
Customer
deposit
- 10,000
This reduction in the customer deposit at Bank A may be spread among a number of banks through interbank deposit flows.
12
10.000
"^^J^^
'^^^
equals: Deficiency Inreservesagainst remaining deposits.
9,000
ContractionStage 1
1D
STAGE
Liabilities
Assets
U.S. govemment
securities
Reserves with
-F.R. Banks
- 9,000
+ 9,000
OTHER
Assets
7^
Liabilities
Assets
Reserve accounts:
Stage I banks + 9,000
Other banks
- 9,000
Reserves with
F.R. Banks
I BANKS
BANKS
Liabilities
Deposits
- 9,000
- 9.000
ALL
BANKS
Assets
Liabilities
Reserves with
F.R. Banks
- 10,000
U.S. govemment
securities
Total
Deposits:
Initial
Stage 1
- 10,000
- 9,000
- 9,000
- 19,000
Total
- 19,000
14
the Reserve Banks. As is shown later, any buildup in balances atflieReserve Banks prior to expenditure by tiie
Treasury causes a dollar-for-dollar drain on bank reserves.
In conti-ast to these independent elements that affect
reserves are the policy actions taken by the Federal Reserve System. The way System open market purchases and
sales of securities affect reserves has already been described. In addition, there are two otiier ways in which the
System can affect bank reserves and potential deposit volume directiy:firstthrough loans to depository institutions;
and second, through changes in reserve requirement percentages. A change in the required reserveratio,of course,
does not alter the dollar volume of reserves directiy but
does change the amount of depositstiiata given amount of
reserves can support
Any change in reserves, regardless of its origin, has
the same potential to affect deposits. Therefore, in order to
achieve the net reserve effects consistent with its monetary
policy objectives, the Federal Reserve System continuously
must take account of what the independentfactorsare
doing to reserves and then, using its policy tools, offset or
supplement them as the situation may require.
Byfarthe largest number and amount oftiieSystem's gross open market transactions are undertaken to
o ^ t drainsfromor additions to bank reservesfromnonFederal Reserve sources that might otherwise cause abmpt
changes in credit avaifability. In addition. Federal Reserve
purchases and/or sales of securities are made to provide
the reserves needed to support therateof money growtii
consistent wifli monetary policy objectives.
In this section of the booklet several kinds of ti-ansactions that can have important week-to-week effects on
bank reserves are traced in detail. Oflier factorstiiatnormally have only a small influence are described briefly on
page 35.
Factors Cka/ii^
Assets
Liabilities
Reserve
balances
Public actions
Increase in currency tioldings....
Decrease in currency holdings..
+
-
Other
-1-
+
+
+
+
+
+
-
+
+
+
+
-
* These factors represent assets and liabilities of the Treasury. Changes in them typically affea reserve balances through
a related change in the Federal Reserve Banks' liability "Treasury deposits."
** Included in "Other Federal Reserve accounts" as described on page 35.
*** Effect on excess reserves. Total reserves are unchanged.
Note: To the extent that reserve changes are in the form of vault cash. Federal Reserve accounts are not affected.
16
1991
260
240
1990
220
1989
.1.. .
200
Feb.
Apr.
June
Aug.
r
Oct.
Deo.
'The same balance sheet entries apply whether the individual physically
cashes apaper check or obtains currency by withdrawing cash through an
automadc teller machine.
'Under current reserve accounting regulations, vault cash reserves are
used to satisfy reserve requirements in a future maintenance period while
reserve balances satisfy requirements in the current period. As a result,
the impact on a bank's current reserve position may differfromthat shown
unless the bank restores its vault cash position in the current period via
changes in its reserve balance.
75
Assets
Vault casii
reserves
[Required
16
Deposits
-100
-100
-'11
90j
If the bank replenishes its vault cash, its account at the Reserve Bank is drawn down in exchange for notes
issued by the Federal Reserve.
F E D E R A L R E S E R V E BANK
Assets
/y
Uabilities
Liabilities
Assets
Reserve accounts:
Bank A
F.R. notes
Vault cash
+ 100
Reserves with
R. Banks
-100
-100
+100
Assets
Vault cash
reserves
[Required
[Excess
JS
Deposits
+ 100
+ 100
+iol
+90]
If the currency is retumed to the Federal Reserve, reserve accounts are credited and Federal Reserve
notes are taken out of circulation.
F E D E R A L R E S E R V E BANK
Assets
Reserve accounts:
Bank A
F.R. notes
Liabilities
Assets
Liabilities
+ 100
-100
Vault cash
Reserves with
Res(
- F . R . Banks
-100
+ 100
17
1990
1991
19
When the Treasury builds up its deposits at the Federal Reserve through "calls" on TT&L note balances,
reserve accounts are reduced.
Assets
Reserve accounts:
Bank A
U.S. Treasury
deposits
70
Uabilities
Assets
Uabilities
Reserves with
-1.000-*- - F . R . Banks
-1
+11,000
[Defidt
1.000
1.000
1,000,
Checks written on the Treasury's account at the Federal Reserve Bank are deposited in banks. As these are
collected, banks receive credit to their reserve accounts at the Federal Reserve Banks.
Assets
Liabilities
Reserve accounts:
Bank A
U.S. Treasury
deposits
Assets
Reserves with
-i-l,000-4- F.R. Banks
+1,000
fRequM
+/00l
[Excess
+900/
-1.000
Liabilities
Private deposits
+1,000
20
Modem Mom
Mechanics
0
1971
I I
1976
I I
1981
'
I I
1986
'
1991
'"Federal Reserve float also arises from other funds transfer services
provided by the Fed, such as wire fransfers, securities transfers, and
automatic clearinghouse transfers.
" Asofadjustments also are used as one means of pricingfloat,as discussed
on page 22, and for nonfloat'i*lated corrections, as discussed on page 35.
"Kthe checks receivedfrom Bank Ahad been erroneously assigned a twoday deferred availability, then neither statementfloatnor reserves would
increase, although both Should. Bank A's reserve position and published
Federal Reservefloatdata are corrected for this and similar errors through
as-of adjustments.
When a bank receives deposits in the form of checks drawn on other banks, it can send them to the Federal
Reserve Bank for collection. (Required reserves are not affected immediately because requirements apply to
net transaction accounts, i.e., total transaction accounts minus both cash items in process of collection and
deposits due from domestic depository institutions.)
Liabilities
Assets
Items in process
of collection
22
+ 100
Deferred
credit items
+ 100
Assets
Liabilities
Cash items in
process
of collection
Deposits
+ 100
+ 100
Iftiiereserve account of the payee bank is credited beforetiiereserve accounts oftiiepaying banks are debited,
total reserves increase.
Liabilities
Assets
Liabilities
Assets
Deferred
credit Items
-100
Reserve accounts:
Banic A
+ 100
Cash items in
process of
collection
Reserves with
F.R. Banks
/Required
[^Excess
+90/
-100
+ 100
+/o7
23
But upon achial collection oftiieitems, accounts oftiiepaying banks are charged, and total reserves decline.
^^^^^^H
Assets
Items in process
of collection
-100
BANKS
AND D
Liabilities
Assets
Liabilities
Reserve accounts:
BankB
BankC
BankD
Reserves with
F.R. Banks
-100
(Required
-lol
iDefidt
90]
Deposits
-100
^^^^^H
-100
22
2d
Liabilities
Assets
U.S. govemment
securities
1,000
Reserve account
with F.R. Banks:
Required clearing
+ 1,000
balance
^^^^^^H
Assets
25
OTHER BANKS
^^^^^H
Liabilities
Assets
Liabilities
Reserve accounts:
Required clearing
balances:
Bank A
+1,000
Reserve balances:
Other banks
-1,000-
Reserve accounts
with F.R. Banks:
Reserve balances -1,000
[Required
-lOOl
[Defidt
900j
Deposits
-1,000
When Bank A is biHed monthly for Federal Reserve services used, it can pay for these services by having
earnings credits applied and/or by authoridng a direct charge to its reserve account Suppose Bank A has
accrued earnings credits of $100 but incm-s fees of $125. Then both methods would be used. On the Federal
Reserve Bank's books, the liability account "earnings credits due to depository institutions" declines by $100
and Bank A's reserve account is reduced by $25. Offsettingtiieseentiles is a reduction inflieFed's (otiier)
asset account "accrued service income." On Bank A's books, the accounting entiies might be a $100 reduction to its asset account "earnings credit duefromFederal Reserve Banks " and a $25 reduction in its reserve
account, which are ofiset by a $125 decline in its liability "accounts payable." While an individual bank may
use different accounting entries, the net effect on reserves is a reduction of $25, the amount of billed fees that
were paid through a direct charge to Bank A's reserve account
Assets
Accrued service
income
-I2S
Liabilities
Assets
Liabilities
Eamings creditt
due to depository
institutions
Accounts
payable
-100
Eamings credits
due from
F.R. Banks
Reserve accounts:
Bank A
Reserves with
- 25 -4- F . R . Banks
-125
-100
- 25
Changes in Loans to
Depository Institutions
1985
1987
1989
1991
Kinds.
2^
Assets
Loans
Reserves with
F.R. Banl<s
(Required
[pefidt
27
+ 100
+ 100
Deposits
no change
+io'
lOj
Borrowing from a Federal Reserve Bank to cover such a deficit is accompanied by a direct credit to the
bank's reserve account
Assets
Liabilities
Loans to depository
institutions:
Bank A
Reserve accounts:
Bank A
Liabilities
Assets
+ 10^
Reserves with
F.R.Banks
+ 10
Borrowings from
F.R. Banks
+ 10
+ 10
Noftirtherexpansion can take place on the new reserves because they are all needed against the deposits created in (26).
28
^^^^^H
Liabilities
Assets
Securities
Reserves with
F.R. Banks
29
^^^^^^B
BANK A
- 10
+ 10
F E D E R A L R E S E R V E BANK
Loans to depository
Institutions:
Bank A
Reserve accounts:
Bank A
Liabilities
Assets
Liabilities
Assets
- 10 4
Reserves with
F . R . Banks
10
Borrowings from
F.R. Banks
- 10
- 10
3%
8% to 14%
0%to9%
26
tiie Board did not change any reserve requirement ratios until
late 1990. (The original matiirity break for requirements on
nonpersonaltimedeposits was shortened several times, once
in 1982 and twice in 1983, in connection with actions taken to
deregulate rates paid on deposits.) In December 1990, flie
Board reduced reserve requirements against nonpersonal
time deposits and Eurocurrency Habifitiesfi-om3 percent to
zero. Effective in April 1992,tiiereserve requirement on
transaction accounts above the low reserve tranche was lowered from 12 percent to 10 percent
"When reserve requirements are lowered, a portion of
banks' existing holdings of required reserves becomes excess
reserves and may be loaned or invested. For example, with a
requirement of 10 percent $10 of reserves would be required
to support $100 of deposits. See illustration 30. But a reduction in the legal requirement to 8 percent wouldtieup only $8,
freeing $2 out of each $10 of reserves for use in creating additional bank credit and deposits. See illustration 31.
An increase in reserve requirements, on the other hand,
absorbs additional reservefimds,and banks which have no
excess reserves must acquire reserves or reduce loans or
uivestments to avoid a reserve defidency. Thus an increase
in the requirementfi-om10 percent to 12 percent would boost
required reserves to $12 for each $100 of deposits. Assunung
banks have no excess reserves, this would force them to
Hquidate assets until the reserve deficiency was eHminated,
at which point deposits would be one-sbctii less than before.
See illustration 32.
Reserve Requirements and Monetaiy Policy
The power to change reserve requirements, Hke purchases and sales of securities bytiieFederal Reserve, is an
instmment of monetary poUcy. Even a small change in requirements say, one-half of one percentage pointcan
have a large and widespread impact Other instruments of
monetary poUcy have sometimes been used to cushion the
uutial impad of a reserve requirement change. Thus, the
System may sell securities (or purchase lessttianotherwise
would be appropriate) to absorb part of the reserves released
by a cut in requirements.
It should be noted that in addition to their initial impad
on excess reserves, changes in requirements alter the expansion power of every reserve dollar. Thus, such changes affed
tiie leverage of aU subsequent increases or decreases in reservesfi-omany source. For this reason, changes in the total
volume of bank reserves actually held between points in time
when requirements differ do not provide an accurate indication ofthe Federal Reserve's poUcy actions.
Both reserve balances and vault cash are eHgible to
satisfy reserve requirements. Toflieextent some institiitions
normaDy hold vault cash to meet operating needs in amounts
exceeding their required reserves,tiieyare unfikety to be
affected by any change in requirements.
"The 1980 statute also provides that "under extraordinary circumstances"
reserve requirements can be imposed at any level on any liability of
depositoiy institutions for as long as sfat months; and, if essential for the
conduct of monetary policy, supplemental requirements up to 4 percent of
transaction accounts can be imposed.
Assets
Loans and
investments
Reserves
[Required
[Excess
^ J
Uabilities
Deposits
100
90
10
lol
OJ
Assets
Uabilities
Loans and
investments
Reserves
[Required
[_Excess
Deposits
100
90
10
F E D E R A L R E S E R V E BANK
Assets
Uabilities
N O CHANGE
32
Assets
Uabilities
Loans and
investments
Deposits
Reserves
[Required
[Defidt
100
90
10
1
Assets
Uabilities
N O CHANGE
28
1979
1982
1985
1988
1991
via a $100 charge to its reserve account at the Federal Reserve. See illustration 34 on pages 30-31. Initially,ttien,flie
Fed's intervention purchase of dollars in this example leads
to a decrease in Federal Reserve Bank assets denominated ki
foreign currendes and a decrease in reserves of U.S. banks.
As noted earlier,flieFederal Reserve offsets or "sterilizes" any undesired change in U.S. bank reserves stemmmg
from foreign exchange intervention sales or purchases of
dollars. For example. Federal Reserve Bank assets denominated in foreign currencies rose dramatically in 1989, in part
due to significant U.S. intervention sales of dollars. (See chart
on this page.) Total reserves of U.S. banks, however, declined
s%htly in 1989 as open market operations were used to "sterilize" the irutial intervention-induced increase in reserves.
Monthfy Revaluation of F o r e ^ Currency Assets
Another set of accounting transactionstibataffects
Federal Reserve Bank assets denominated in foreign currendes is the monthly revaluation of such assets. Two busuiess
days prior to the end of tiie month, the Fed's foreign currency
assets are increased iftiieirmarket value has appreciated or
decreased if their value has depreciated. The offeetting accounting entry onttieFed's bdance sheet is to the "exchangetranslation accounf included in "otiier F.R Uabilities." These
changes intiieFed's balance sheet do not alter bank reserves
directiy. However, since the Federal Reserve turns over its
net eamings to the Treasury each week, the revaluation affects the amount of flie Fed's payment to the Treasury, which
in tum influences the size of TT&L calls and bank reserves.
(See explanation on pages 18 and 19.)
"Overall responsibility for U.S. intervention in foreign exchange markets
rests with the U.S. Treasury. Foreign exchange transactions for the
Federal Reserve's account are carried out under directives issued by the
Federal Reserve's Open Market Committee within the general framework
of exchange rate policy established by the U.S. Treasury in consultation
with the Fed. They are implemented at the Federal Reserve Bank of New
York, typically at the same time that similar transactions are executed for
the Treasury's Exchange StabiUzation Fund.
^'Americans traveling to foreign countries engage in "foreign exchange"
transactions whenever they obtain foreign coins and paper currency in
exchange for U.S. coins and currency. However, most foreign exchange
transactions do not involve the physical exchange of coins and currency.
Rather, most of these transactions represent the buying and selling of
foreign currencies by exchanging one bank deposit denominated in one
currency for another bank deposit denominated in another currency. For
ease of exposition, the examples assume that U.S. banks and foreign banks
are the market participants in the intervention transactions, but the impact
on reserves would be the same if the U.S. or foreign public were involved.
Gold stock
GoldS
certificates
J
SDR
y
cartificates/
1951
1961
1971
1 1
1981
'
1 11 1 1 1 1 1 11
1991
29
When the Federal Reserve intervenes to sell dollars for its own
account, it pays for a foreign-currency-denominated deposit of a U.S.
bank at a foreign commercial bank by crediting the reserve account of
the U.S. bank, and acquires a foreign currency asset in the form of a
deposit at a Foreign Central Bank The Federal Reserve, however, will
offset the increase in U.S. bank reserves if it is inconsistent with
domestic policy objectives.
When the Federal Reserve intervenes to buy dollars for its own
account, it draws down its foreign currency deposits at a Foreign
Central Bank to pay for a dollar-denominated deposit of a foreign bank
at a U.S. bank, which leads to a contraction in reserves of the U.S.
bank. This reduction in reserves will be offset by the Federal Reserve
if it is inconsistent with domestic policy objectives.
35
Assets
Liabiltties
Deposits at
Foreign Central
Bank
+ 100
Reserves:
U.S. bank
Assets
Liabilities
Deposits at
Foreign Central
Bank
- too
Reserves:
U.S. bank
100
In an intervention sale of dollars for the U.S. Treasury, deposits of the ESF at the Federal Reserve are used to pay
for a foreign currency deposit of a U.S. bank at a foreign bank, and the foreign currency proceeds are deposited in
an accoimt at a Foreign Central Bank. U.S. bank reserves increase as a result of this intervention transaction.
FEDERAL RESERVE BANK
U.S. TREASURY
Uabilities
Assets
Deposits at
F.R. Banks
Liabilities
Assets
Liabilities
Assets
Reserves:
U.S. bank
- 100
+ 100 -
Otiier deposits;
100
ESF
Deposits at
Foreign Central
Bank
+ 100
36
+ loo-*-
Concurrently, the Treasury mustfinancethe interventionti-ansactionin (35). The Treasury might build up depoats in
tiie ESPs account at the Federal Reserve by redeeming securities issued to tiie ESF, and replenish its own (general
account) deposits attiieFederal Reserve to desired levels by issuing a call on TT&L note accounts. This set of timsactions drains reserves of U.S. banks bytiiesame amount as the intervention in (35) added to U.S. bank reserves.
FEDERAL RESERVE BANK
U.S. TREASURY
Liabilities
Assets
U.S. govt.
securities
Deposits at
F.R. Banks
- 100
+100
Assets
Uabilities
TT&Laccts.
- 100
Deposits at
F.R. Banks
Securities
Issued ESF
net 0
Liabilities
Assets
- 100
Reserves:
U S . banks
-100-4-
Treas. deps.;
net 0
[}omUXbank
ItoESF
+/0d]
-lOOj
Other deposits;
ESF
+100
37
U.S. TREASURY
Liabilities
Assets
Deposits at
F.R. Banks
30
+100
S D R certificates
issued to
F.R.Banl<s
+100
Assets
Liabilities
Assets
Liabilities
S D R certificate
account
+ 100
Other deposits:
ESF
+ 100
Liabilities
Assets
Reserves with
-F.R.Banl<s
+100
Deposits at
foreign banlc
FOREIGN BANK
U.S. BANK
Assets
Uabilities
Reserves with
Foreign Central
Bank
Deposits of
U.S. bank
Assets
- 100
100
100
Reserves with
F.R. Banks
- 100
Liabilities
Assets
Deposits of
foreign bank
Deposits at
U.S. bank
- 100
Assets
Uabilities
- 100
Reserves with
Foreign Central
Bank
+ 100
U.S. RANK
Assets
^^^^^H
Liabilities
Reserves with
> F.R. Banks
+100
Deposits at
foreign bank
Liabilities
Reserves with
Foreign Central
Deposits of
U.S. bank
"'
-100
+ 100
Reserves of
foreign bank
- 100
^^^^^B
Assets
-100
Liabilities
Deposits of
F.R. Banks
- 100
Reserves of
foreign bank
+ 100
FOREIGN C E N T R A L BANK
Liabilities
Deposits of
ESF
+100
Reserves of
foreign bank
-100
Liabilities
Assets
Reserves with
- > F . R . Banks
- 100
Assets
FOREIGN BANK
Assets
Deposits of
F.R. Banks
FOREIGN C E N T R A L BANK
FOREIGN BANK
Assets
Liabilities
TT&Laccts.
- 100
Liabilities
NO CHANGE
Modem
Money
Mechanics
235 l l I l l I I I l l I I I I I I h 1 1 I 11 I I 1 I I I I I I I I I I I I I I I 1 1 l l 1 1 1 1 1 l l
Feb.
Apr.
June
Aug.
Oct
Deo.
Managingforeigndeposits through purchases ofsecurities. Foreign customers oftiieFederal Reserve also receive
a variety of dollar-denominated payments, including proceedsfromintervention purchases of dollars by foreign
central banks, that are drawn on U.S. banks. As these funds
are credited to foreign deposits at the Federal Reserve, reserves of U.S. banks decline. But if receipts of dollar-denominated payments raisetiieirdeposits at the Federal Reserve
to levels higher than desired, foreign customers will buy U.S.
govemment securities. The net effedt generally istoleave
U.S. bank reserves unchanged when the U.S. govemment
securities are purchased in the market
Using the swap network. Occasionally, foreign central
banks acquire dollar deposits by activating the "swap" network, which consists of reciprocal short-term credit arrangements between the Federal Reserve and certain foreign
cenb-al banks. When a foreign central bank draws on its
swap line attiieFederal Reserve, it immediately obtains a
dollar deposit at the Fed in exchange for foreign currendes,
and agrees to reverse the exchange sometime intiiefuture.
On the Federal Reserve's balance sheet activation ofthe
swap network is reflected as an increase in Federal Reserve
Bank assets denominated in foreign currencies and an increase in the liability category "foreign deposits." When the
swap line is repaid, both of these accounts decline. Reserves
of U.S. banks willrisewhen the foreigri central bank spends
its dollar proceedsfromthe swap drawing. See illustration
41. In contrast reserves of U.S. banks will M as the foreign
central bank rebuilds its deposits at the Federal Reserve
in order to repay a swap drawing.
The accounting entries and impact on U.S. bank reserves are the same if the Federal Reserve uses the swap
network to borrow and repay foreign currencies. However,
tiie Federal Reserve has not activatedtiieswap network in
recent years.
38
When a Foreign Central Bank makes a dollar-denominated paymentfromits accomit at the Federal Reserve, the
recipient deposits the funds in a U.S. bank. As the payment order clears, U.S. bank reserves rise.
Liabilities
Assets
Liabilities
Reserves:
U.S. bank
Reserves with
+ I 0 0 4 > F . R . Banks
+ 100
Foreign
deposits
- 100
Deposits
Assets
100
Liabilities
Deposits at
F . R Banks
- 100
Accounts
payable
100
If a decline in its deposits at the Federal Reserve lowers the balance below desired levels, the Foreign Central Bank
will request that the Federal Reserve sell U.S. govemment securities for it If the sell order is executed in the
market, reserves of U.S. banks will fall by the same amount as reserves were increased in (38).
^^^^^^H
Liabilities
Reserves:
U.S. bank
Foreign
deposits
40
U.S. BANK
Assets
^^^^^H
Uabilities
Reserves with
- 1 0 0 - 4 > F . R . Banks
- 100
Deposits of
securities
buyer
+ 100
Liabilities
Assets
- 100
Deposits at
F.R. Banks
+100
U.S. govt
securities
- 100
Jf the sell order is executed with the Federal Reserve's account however, the increase in reservesfrom(38) will
remain m place. The Federal Reserve might choose to execute the foreign customer's sell order with the System's
account if an increase in reserves is desired for domestic policy reasons.
FOREIGN CENTRAL BANK
Assets
Liabilities
+ 100
Foreign
deposits
Uabilities
+ 100
NO CHANGE
41
Liabilities
Assets
Deposits at
F.R. Banks
+100
U.S. govt
securities
- 100
When a Foreign Central Bank draws on a "swap" line, it receives a credit to its dollar deposits at the Federal
Reserve in exchange for a foreign currency deposit credited to the Federal Reserve's account Reserves of U.S.
banks are not affected by the swap drawing transaction, but will increase as the Foreign Central Bank uses the
funds as in (38).
FOREIGN CENTRAL BANK
Liabilities
Deposits at
Foreign Central
Bank
+100
Foreign
deposits
Assets
Uabilities
Assets
Deposits at
F . R Banks
+ 100
Liabilities
+ 100
Deposits of
F.R. Banks
+100
NO CHANGE
33
Reserve Impact
Permanent increase
Permanent increase
(No impact)
Permanent decrease
Permanent decrease
(No impact)
Temporary increase
Temporary decrease
No impacT"
(Temporary increase*)
No impact
Permanent decrease
Permanent increase**
When these customers draw on theu- Federal Reserve balances (say, to purchase securities), these funds
are paid tofliepubfic and deposited in U.S. banks, thus
increasing bank reserves. Justfikeforeign customers,
these "other" customers manage their balances at the
Federal Reserve closely so that changes in their deposits
tend to be smaU and have mimmal net impact on reserves.
Nonfloat-Related Adjustments
Certdn adjustments are incorporated uito pubUshed
data on reserve balances to reflect nonfloat-related corrections. Such a correction might be made, for example, if an
uidividual bank had mistakenly reported fewer reservable
deposits than actually existed and had held smaUer reserve balances than necessary in some past period. To
correct for this error, a nonfloat-related as-of adjustment
wifi be appKed to the bank's reserve position. This essentiaUy results in the bank havuig to hold higher balances in
its reserve account in the current and/or future periods
than wotdd be needed to satisfy reserve requirements in
tiiose periods. Nonfloat-related asK)f adjustments affect
tiie afiocation of fimds in bank reserve accounts but not
the total amount in these accounts as reflected on Federal
Reserve Bank and individual bank balance sheets. Pubfished data on reserve balances, however, are adjusted to
show onfy those reserve balances held to meet the current
and/or future period reserve requirements.
Other Federal Reserve Accounts
Earfier sections of this booklet described the way ui
which bank reserves increase when the Federal Reserve
purchases securities and decfine whentiieFed sells securities. The same results foUow from any Federal Reserve
expenditure or receipt Every payment made by the Reserve Banks, in meeting expenses or acquiring any assets,
affects deposits and bank reserves infliesame way as does
the payment to a dealer for govemment securities. Sunilarfy, Reserve Bank receipts of interest on loans and securities and increases in paid-in capital absorb reserves.
$12 5 mil
$1 million
3.0
-1.0
-2.0
Note: All data are In billions of dollars, not seasonally adusted. Scaling
approximately reflects each year's average ratio of transaction deposits
to total resen/es.
Although every bank must operate within the system where the total amount of reserves is controlled by
the Federal Reserve, its response to policy action is indirect The individual bank does not know today precisely
what its reserve position will be at the time the proceeds
of today's loans are pad out Nor does it know when new
reserves are being supplied to the banidng system. Reserves are distributed among thousands of banks, and the
individual banker cannot distinguish between inflows
origmatingfromadditions to reserves through Federal
Reserve action and shifts of funds from other banks that
occur in the normal course of business.
To equate short-run reserve needs with available
fimds, therefore, many banks tum to the money market
borrowing funds to cover deficits or lending temporary
surpluses. When the demand for reserves is strong relative to the supply,fimdsobtainedfrommoney market
sources to cover deficits tend to become more esqiensive
and harder to obtaui, which, in tum, may induce banks to
adopt more restrictive loan pofides and thus slow the rate
of deposit growth.
Federal Reserve open market operations exert
control over the creation of deposits mahilyfliroughtiiefiimpact on the availability and cost offimdsintiiemoney
market When the total amount of reserves suppfied to
the banidng system through open market operations faUs
short of the amoimt required, some banks are forced to
borrow at the Federal Reserve discount wuidow. Because
such borrowing is restricted to short periods, the need
to repay it tends to induce restraint on further deposit
expansion by the borrowuig bank. Conversely, when
there are excess reserves ui the banking system, uidividual banksfindit easy and relatively inexpensive to acquire
reserves, and expansion in loans, investinents, and deposits is encouraged.
38
FREEDOM
CLUB
Freedom Foundation USA
4002 Hwy 78
530-321
Snellville, GA 30039
T o m Lawler, Mgr.
F r e e d o m Foundation USA
www.freedomclubusa.com
achiever(a)mindspring.com
770-498-2886
F r e e d o m F o u n d a t i o n U S A , LLC
jrREBBOM
CL
O i l
GUIDANCE
FFUSA is now ready to begin submissions for processing and payment. Please provide us the proper
department, address and contact person for submissions.
Please correct and advise us of any administrative and/or technical deficiency in submission in order
for you to expedite and process payment accordingly.
It is evident that ongoing manual submissions will prove to be quite cumbersome. We look forward
t o receiving specific instructions for dedicated electronic submission as part of a cooperative effort
t o make this time and cost effective for all.
CONTACT
Please direct questions or documents to myself at the address above!
Email
Phone:
BBBHHHI or
Fax:MMMM^Bi.
Sincerely,
HISTORY OF NESARA
The National Economic Security & Reformation Act
Compiled by Nancy Detweiler, M.Ed., M.Div.
Information is added as it becomes known, along with the date it is included.
NOTE: Writing a history of NESARA requires locating the separate dots and
attempting to put them together to create truth. The original documents are
sequestered and those individuals directly involved are still under a strict gag
order. I have used as my foundation a history written by James Rink. My
research set out to prove NESARA by locating original documents and articles
written by reputable people that illustrated each of the tenets. I have inserted
some of these URLs for these tenets into Rink's history. In my 7+ years of
research, I have found nothing to disprove the existence of the NESARA
LAW. The internet is loaded with disinformation that can be easily dismissed by
research.
As you read this history, you will find mention of high officials being cloned. The
capacity to clone an adult individual signifies just one of the many secrets
withheld from the public. As "all that is hidden is revealed," this fact will be
confirmed. Cloning of an adult individual is used for various reasons by those
working behind the scenes-one example will become known at the divine right
moment-the cloning of Princess Diane to avoid her death. Another example is to
clone a public figure to prevent public reaction to he/she being removed from
their position, as occurred with Janet Reno (info, added 2014).
Now that information regarding the government/military cover-up of the
extraterrestrial presence is in the public domain, we can see parallels of the
facets regarding NESARA that many have used to discredit it. Some of these
are: deliberate cover-up of information, government/military gag orders, the
suspicious death of persons who attempted to tell the truth, control of the media,
and the ruining of individual lives and professions.
I encourage all to do your own research and add to the pool of documented
evidence on the truth of NESARA.
Now is the perfect time for NESARA to be released to the world!
NESARA
Demonstration in front of the Peace Palace, the Hague, Netherlands
1892 - Bankers adopted their Bankers' Manifesto of 1892 in which it was
declared: 'We [the bankers] must proceed with caution and guard every move
made, for the lower order ofpeople are already showing signs of restless
commotion. Prudence will therefore show a policy of apparently yielding to the
popular will until our plans are so far consummated that we can declare our
designs without fear of any organized resistance. The Farmers Alliance and
Knights of Labor organizations in the United States should be carefully watched by
our trusted men, and we must take immediate steps to control these organizations in
our interest or disrupt them....
The courts must be called to our aid, debts must be collected, bonds and
mortgages foreclosed as rapidly as possible.
When through the process of the law, the common people have lost their
homes, they will be more tractable and easily governed through the influence of the
strong arm of the government applied to a central power of imperial wealth under
the control of the leading financiers. People without homes will not quarrel with
their leaders."
1907-1917 - In order to warn Americans,thel892 Bankers' Manifesto was
revealed by US Congressman Charles A. Lindbergh, Sr. from Minnesota before
the US Congress sometime during his term of office between the years of 1907
and 1917.
1978 - An elderly ranch farmer in Colorado purchased a farm with loan from
the Federal Land Bank. After he died the property was passed on to his son Roy
Schwasinger, Jr., who was a retired military general. Soon after a Federal Land
Bank officer and Federal Marshall appeared on his property and informed him
the bank was foreclosing on his farm, ordering him to vacate within 30 days.
Without his knowledge, his deceased father had signed a stipulation which
reverted the property back to the Federal Land Bank in the event of the
borrower's death.
Outraged, Roy E . Schwasinger, Jr. filed a class action lawsuit in the Denver
Federal Court system. The suit was dismissed on the basis of incorrect filing.
This prompted Roy Schwasinger's investigation into the inner workings ofthe
banking system.
1982 - Roy Schwasinger was given a contract by the US senate and later
Supreme Court to investigate banking fraud. But because he was under a strict
non-disclosure order he was not allowed to tell the media what he discovered. In
the late 80s he began sharing his knowledge with others including high ranking
military personnel who helped him bring about a class action lawsuit against the
federal government.
The first series of these lawsuits began in the mid 1980's when William and
Shirley Baskerville of Fort Collins, Colorado were involved in a bankruptcy case
with First Interstate Bank of Fort Collins; who was trying to foreclose on their
farm. At a restaurant their lawyer informed them that he would no longer be
able to help them and walked-off. Overhearing the conversation Roy
Schwasinger offered his advice on how to appeal the case in bankruptcy court.
So in 1987 they filed an appeal (Case No. 87-C-716) with the United States
District Court in Colorado.
1988 - On November 3,1988, the Denver Federal Court system ruled that indeed
the banks had defrauded the Baskervilles and proceeded to reverse its
bankruptcy decision. But when the foreclosed property was not returned they
filed a new lawsuit. Eventually, 23 other farmers, ranchers, and Indians swindled
by the banks in the same manner would join in the case.
In these cases, the banks were foreclosing on the properties using fraudulent
methods such as charging exorbitant interest, illegal foreclosure, or by not
crediting mortgage payments to their account as they should have but instead
would steal the mortgage payments for themselves triggering foreclosure on the
property. After running out of money they continued their fight without the help
of lawyers. With some assistance by the Farmers Union a new lawsuit was filed
against the Federal Land Bank and the Farmers Credit System. Case No. 92-C1781
The District Court ruled in their favor and ordered the banks to return the
stolen properties with help from either Federal Marshals or the National Guard.
But when no payments were made, the farmers declared involuntary Chapter
Seven Bankruptcy against the Federal Land Bank and the Farmers Credit
System. The banks appealed their case insisting they were not a business but a
federal agency therefore they were not liable to pay the damages.
So the farmer's legal team adopted a new strategy. According to the Federal
Land Bank's 1933 charter they are not allowed to make loans directly to
applicants, but instead could only back loans as a guarantor in case of default.
Because the Federal Land Bank had violated this rule the farmer's legal team
was able to successfully sue the bank for damages.
Word of the lawsuit began to spread; the legal team would teach others how to
fight foreclosure and to help them file lawsuits as well (Case No. 93-1308-M).
Celebrities such as Willie Nelson joined in the cause and helped raise money
during his "Farm Aid" concerts.
The Baskerville case had now become the Farmer Claims Class Action Lawsuit.
Worried about the legal ramifications the government retaliated against the
farmers by hitting them with either outrageous IRS fees, or by imprisoning the
legal team under frivolous nonrelated charges. When the farmers realized they
were being unfairly targeted, they had military generals such as General Roy
Schwasinger sit in the courtroom to make sure the bribed judges would vote
according to constitutional law.
The farmers now with a large team of knowledgeable people of the law behind
them filed a new case to claim additional damages from the fraudulent loaning
activities of the Farmers Credit System.
The government tried to settle but they had already lost many cases and were
now loosing the appeals as well. More and more evidence was collected.
According to the National Banking Act all banks are required to register their
charters with the Federal and State Bureau of Records, but none ofthe banks
complied, allowing the legal team to sue the Farmers Credit System. Not only
was Farmers Credit System not chartered to do business with the American
Banking Association, but so were other quasi government organizations such as
the Federal Housing Administration, The Department of Housing and Urban
Development, and even the Federal Reserve Bank.
The Farmers Clauns lawsuit was thrown out of court at each level with the
records purposely destroyed. An example of these court cases may be viewed
at: http://openiurist.org/25/f3d/1055/baskerville-ib-v-federal-land-bank-na
1990s - In the early 1990's Roy Schwasinger brought the case before the United
States Supreme Court. Some of the content of this case is sealed from public eyes
but most of it can be viewed today.
The U.S. Supreme Court Justices ruled that the Farmers Union claims were
indeed valid, therefore, all property foreclosed by the Farmers Credit System
was illegal and all those who were foreclosed on would have to receive damages.
In addition, they ruled that the U.S. federal government and banks had
defrauded the farmers, and all U.S. citizens, out of vast sums of money and
property.
Furthermore, the court ruled the shocking truth that the IRS was a Puerto Rican
Trust. Read more at: http://www.supremelaw.org/sls/31 answers.htm
In addition the court ruled that the Federal Reserve was
unlawful: http://www.save-a-patriot.org/files/view/frcourt.html
http://www.globalresearch.ca/index.php?context=va&aid=10489
http://www.apfn.net/doc-100 bankruptcv27.htm
That the income tax amendment was only ratified by four states and therefore
was not a legal amendment, that the IRS code was not enacted into '"'^Positive
Law^^ within the Code of Federal Regulations. Positive Law = Laws that have
been enacted by a properly instituted and recognized branch of the government.
http://www.givemelibertv.org/features/taxes/notratified.htm
That the U.S. government illegally foreclosed on farmer's homes with help from
federal agencies. Irrefutable proof was presented by a retired CIA agent. He
provided testimony and records of the banks illegal activities as further evidence
that the Farmers' Union claims were indeed legitimate. The implications of such
a decision were profound. All gold, silver, and property titles, taken by the
Federal Reserve and IRS must be returned to the people.
The legal team sought assistance from a small group of benevolent visionaries,
consisting of politicians, military generals, and business people who have been
secretly working to restore the constitution since the mid 1950's. Somehow
within their ranks, a four star U.S. army general received "title" and "receiver"
of the original 1933 United States Bankruptcy.
When the case was brought before the U.S. Supreme Court, they ruled in his
favor, giving the Army General title over the United States, Inc. Legal action was
then passed on to the Senate Finance Committee and Senator Sam Nunn, who
was working with Roy Schwasinger.
1991 - With the help of covert congressional and political pressure. President
George H.W. Bush issued an Executive Order on Oct. 23,1991, which provided a
provision allowing anyone who has a claim against the federal government to
receive payment as long as it's within the rules of the original format ofthe
case. You may read Executive Order No. 12778 at the URL below.
http://www.presidencv.ucsb.edu/ws/index.php?pid=20129#axzz2iJWHk3Ki
According to the Federal Reserve Act of 1913, all present and succeeding debts
against the U.S. Treasury must be assumed by the Federal Reserve. Thus the
famer's claims legal team was able to use that executive order to not only force
the Federal Reserve to pay out damages in a gold backed currency but also allow
them to receive legal ownership over the bankruptcy of United States, Inc.
To collect damages the farmers legal team used an obscure attachment to the
14th amendment which most people are not aware of. After the civil war the
government allowed citizens to claim a payment on anyone who suffered
damages as a result of the Federal Government failing to protect its citizens from
harm or damages by a foreign government. President Grant had this attachment
sealed from public eyes but somehow, someone on the farmer's legal team got a
hold of it.
If you read that carefully, it specifies damages by a foreign government. That
foreign government is the corporate federal governmentwhich has been
masquerading to the public as the constitutional government. See
http://www.freerepublic.com/focus/f-news/813840/posts for explanations.
Remember this goes back to the Organic Act of 1871 and the Trading with the
Enemies Act of 1933, which defined all citizens as enemy combatants under the
federal system known as the United States. The Justices and farmer's legal team
recognized how evil and corrupt our federal government had become and to
counteract this they added some provisions in the settlement to bring the
government back under control.
a. First they would have to be paid using a lawful currency, backed by gold and
silver as the constitution dictates. This would eliminate inflation and gyrating
economic cycles created by the Federal Reserve System. See Article 1, Section 10
of the US Constitution.
b. Second they would be required to go back to common law instead of admiralty
law under the gold fringe flags. Under common law if there is no damage or
harm done then there is no violation of the law. This would eliminate millions of
laws which are used to control the masses and protect corrupt politicians.
c. Lastly the IRS would have to be dismantled and replaced with a national sales
tax. This is the basis of the NESARA Law.
When the legal team finally settled on a figure, each individual would receive an
average of $20 million dollars payout per claim. Multiplied by a total of 336,000
claims that were filed against the U.S. Federal Government, the total payout
would come out to a staggering $6.6 trillion dollars.
The U.S. Supreme Court placed a gag order on the case, struck all information
from the Federal Registry, and placed all records in the Supreme Court files. Up
to that point Senator Sam Nunn had kept the Baskerville Case records within his
office. A settlement was agreed to out of court and the decision was sealed by
Janet Reno. Because the case was sealed, claimants are not allowed to share
court documents to media outlets without violating the settlement, but they can
still tell others about the lawsuit. This is why you probably have not heard about
this.
1991 - Roy Schwasinger went before a senate committee to present evidence of
the banks and governments criminal activity. He informed them how the
Corporation of the United States was tied to the establishment of a New World
Order which would bring about a fascist one world government ruled by the
international bankers.
1992 - A task force was put together consisting of over 300 retired and 35 active
US military officers who strongly supported constitutional law.* This task force
was responsible for investigating governmental officials, congressional officers,
judges, and the Federal Reserve.
*Chief of Naval Operations, Admiral Jeremy Boorda
General David McCloud
on a grass roots level to help others file claims and to educate them about the
lawsuit.
A claim of harm could be made on any loan issued by a financial institution for
all interest paid; foreclosures; attorney and court fees; IRS taxes or liens; real
estate and property taxes; mental and emotional stress caused by the loss of
property; stress related iUness such as suicide and divorce; and even warrants,
incarceration, and probation could also be claimed.
1994 - But the Clinton government undermined their efforts by requiring the
farm claims to use a specific form designed by the government. This form
imposed an administrative fee of $300 for each claim, which was later used in
1994 as a basis to arrest the leaders of the legal team including Roy Schwasinger.
The government was so afraid of what they would say during their trial in
Michigan that extra steps were taken to conceal the true nature of the case.
County courthouse employees were not allowed to work between Monday and
Thursday during the course of the trial. And outside the courthouse, FBI agents
swarmed the perimeter preventing the media and visitors from learning what
was going on as well.
Harassment and retaliation by the government increased, many where sent
prison or murdered while incarcerated. Despite being protected by his military
personnel the army general who acquired the original 1933 Title of Bankruptcy
ofthe United States; was imprisoned, killed, and replaced with a clone. This
clone was then used as a decoy to prevent any further claims from being filed. (I
am not qualified to speak on the fact of human clones; however, that they exist is
a fairly widely accepted fact among those who study behind the scenes
activities. You may read more
at: http://www.questacon.edu.au/indepth/cloning/arguments against cloning.ht
ml Don't allow the thought of clones running the government cause you to refuse
to consider the veracity of this history. As truth emerges, we will be shocked at
much we hear. (2013 - the above URL is no longer available; however, the fact
that cloning has been an ethical question for yrs. is a good indication that the
Secret Government knows more than they have released to the public.)
During the first Clinton administration the military delayed many of Clinton's
federal appointments until they were sure these individuals would help restore
constitutional law. One such individual who promised to bring about the
necessary changes was Attorney General Janet Reno.
1993 - In agreement with the Supreme Court ruling on June 3,1993, Janet Reno
ordered the Delta Force and Navy Seals to Switzerland, England, and Israel to
recapture trillions of dollars of gold stolen by the Federal Reserve System from
the strategic gold reserves. These nations cooperated with the raid because they
were promised their debts owed to the United States would be canceled and
because the people who stole the money from the United States also stole money
from their nations as well.
This bullion is to be used for the new currency backed by precious metals. It's
now safely stockpiled at the Norad Complex at Colorado Springs, Colorado and
four other repositories. Janet Reno's action so enraged the powers-that-be, that
it resulted in her death. She was then replaced with a clone and it was this
creature that was responsible for covering-up the various Clinton scandals.
To keep the Secretary of the U.S. Treasury Robert Rubin in hue, he too was also
cloned. For the remainder of their term in office both Reno and Rubin received
their salaries from the International Monetary Fund as foreign agents and not
from the U.S. Treasury. Despite these actions the legal team continued on with
their fight while managing to avoid bloodshed and a major revolution.
After 1993 the farmer claims process name was changed to Bank Claims.
Between 1993 and 1996, the U.S. Supreme Court required U.S. citizens to file
"Bank Claims" to collect damages paid by the U.S. Treasury Department. This
process CLOSED in 1996.
During this time the U.S. Supreme Court assigned one or more Justices to
monitor the progress of the rulings. They enlisted help of experts in economics,
monetary systems, banking, constitutional government and law, and many other
related areas. These justices built coalitions of support and assistance with
thousands of people worldwide; known as ^''White Knights.'''' The term 'White
Knights' was borrowed from the world of big business. It refers to a vulnerable
company that is rescued from a hostile takeover by a corporation or a wealthy
persona White Knight.
To implement the required changes, the five Justices spent years negotiating how
the reformations would occur. Eventually they settled on certain agreements,
also known as Accords, with the U.S. government, the Federal Reserve Bank
owners, the International Monetary Fund, the World Bank, and with numerous
other countries including the United Kingdom and countries of the Euro Zone.
Because these U.S. banking reformations will impact the entire world; the IMF,
World Bank, and other countries had to be involved. The reformations require
that the Federal Reserve be absorbed by the U.S. Treasury Department and the
banks' fraudulent activities must be stopped and payment must be made for past
harm.
1998 - The military generals who originally participated in the famer's claim
process realized that the US Supreme Court justices had no intentions of
implementing the Accords. So they decided the only way to implement the
reformations was through a law passed by congress.
1999 - A 75 page document known as the National Economic Security and
Reformation Act (NESARA) was submitted to congress where it sat with little
action for almost a year.
2000 - Late one evening on March 9,2000, a written quorum call was handdelivered by Delta Force and Navy SEALs to 15 members ofthe US Senate and
the US House who were sponsors and co-sponsors of NESARA. They were
immediately escorted by the Delta Force and Navy SEALs to their respective
voting chambers where they passed the National Economic Security and
Reformation Act. President Clinton signed the Act into LAW.
These 15 members of congress were the only people lawfully allowed to hold
office in accordance with the original 13th amendment. Remember British
soldiers destroyed copies of the Titles of Nobility Amendment (TONA) in the war
of 1812 because it prevented anyone who had ties to the crown of England from
holding public office. President Clinton relinquished his bar registry.
NESARA is the most ground breaking reformation to sweep not only this
country but our planet in its entire history. The act does away with the Federal
Reserve Bank, the IRS, the shadow government, and much more.
NESARA implements the following changes:
1. Zeros out all credit card, mortgage, and other bank debt due to illegal banking
and government activities. This is the Federal Reserve's worst nightmare, a
"jubilee" or a forgiveness of debt.
2. Abolishes the income tax.
3. Abolishes the IRS. Employees ofthe IRS will be transferred into the US
Treasury national sales tax area.
4. Creates a 14% flat rate non-essential new items only sales tax revenue for the
government. In other words, food and medicine will not be taxed; nor will used
items such as old homes.
5. Increases benefits to senior citizens.
6. Returns Constitutional Law to all courts and legal matters.
7. Reinstates the original Title of Nobility amendment.
8. Establishes new Presidential and Congressional elections within 120 days after
NESARA's announcement. The interim government will cancel all National
Emergencies and return us back to constitutional law.
9. Monitors elections and prevents illegal election activities of special interest
groups.
10. Creates a new U.S. Treasury rainbow currency backed by gold, silver, and
platinum precious metals, ending the bankruptcy of the United States initiated
by Franklin Roosevelt in 1933.
11. Forbids the sale of American birth certificate records as chattel property
bonds by the US Department of Transportation.
12. Initiates new U.S. Treasury Bank System in alignment with Constitutional
Law
13. Eliminates the Federal Reserve System. During the transition period the
Federal Reserve will be allowed to operate side by side of the U.S. treasury for
one year in order to remove all Federal Reserve notes from the money supply.
14. Restores financial privacy.
15. Retrains all judges and attorneys in Constitutional Law.
16. Ceases all aggressive, U.S. government military actions worldwide.
17. Establishes peace throughout the world.
18. Releases enormous sums of money for humanitarian purposes.
19. Enables the release of over 6,000 patents of suppressed technologies that are
being withheld from the public under the guise of national security, including
free energy devices, antigravity, and sonic healing machines.
October 10, 2000 - Because President Clinton's clone had no interest in signing
NESARA into law on October 10, 2000; under orders from U.S. military
generals, the elite Naval Seals and Delta Force stormed the White House and
under gunpoint forced Bill Clinton to sign NESARA. During this time Secret
Service and White House security personnel were ordered to stand down,
disarmed, and allowed to witness this event under a gag order.
From its very inception Bush Sr., the corporate government, major bank houses,
and the Carlyle group have opposed NESARA. To maintain secrecy, the case
detaOs and the docket number were sealed and revised within the official
congressional registry, to reflect a commemorative coin and then again it was
revised even more recently. This is why there are no public Congressional
Records and why a search for this law will not yield the correct details until after
the reformations are made public.
Members of congress will not reveal NESARA because they have been ordered
by the U.S. Supreme Court Justices to deny its existence or face charges of
treason punishable by death. Some members of Congress have actually been
charged with obstruction. When Minnesota Senator Paul Wellstone was about to
break the gag order, his small passenger plane crashed killing his wife, daughter,
and himself.
If fear isn't enough to keep Washington in line, money is. Routine bribes are
offered to governmental/military officials by the power elite/secret government.
Not surprisingly, much disinformation about NESARA can be found on the
internet. Wikipedia's article is total disinformation. Dr. Harvey Francis
Barnard's NESARA billNational Economic Stabilization and Recovery Act
was rejected by congress in the 1990s. Dr. Barnard was a systems philosopher
and had tried for years to interest Congress in his monetary reform
suggestions. A testimony by Dr. Barnard's close friend, Darrell Anderson, may
be read at: http://nesara.org/book/ You may also read articles by Darrell
Anderson at this site. Both men were interested in monetary reform.
September 11,2001 - The next step is to announce NESARA to the world, but
it's not an easy task. Many powerful groups have tried to prevent the
implementation of NESARA.
The NESARA law requires that at least once a year, an effort be made to
announce the law to the public. Three then current US Supreme Court judges
control the committee in charge of NESARA's announcement. These Judges
have used their overall authority to secretly sabotage NESARA's announcement.
In 2001 after much negotiation the Supreme Court justices ordered the IO?***
Congress to pass resolutions approving' NESARA. This took place on September
9, 2001, eighteen months after NESARA became law. On September 10,2001,
George Bush Sr. moved into the White house to steer his son on how to block the
announcement. The next day, on September 11,2001, at 10 AM Eastern Daylight
Time, Alan Greenspan was scheduled to announce the new US Treasury Bank
system, debt forgiveness for all U.S. citizens, and abolishment of the IRS as the
first part ofthe public announcements of NESARA.
Just before the announcement at 9 am. Bush Sr. ordered the demolition of the
World Trade Center's Twin Towers to stop the international banking computers
on Floors land 2 in the North Tower from initiating the new U.S. Treasury Bank
system. Explosives in the World Trade Center were planted by operatives and
detonated remotely in Building 7, which was demolished later that day in order
to cover-up their crime.
Remote pilot technology was used in aflyoverevent to deliver a payload of
explosives into the Pentagon at the exact location of the White Knights in their
new Naval Command Center who were coordinating activities supporting
NESARA's implementation nationwide. With the announcement of NESARA
stopped dead in its tracks, George Bush Sr. decapitated any hopes of returning
the government back to the people.
For the past 10 years, life in the USA, and numerous other countries, has been
dictated by the staged terrorist' attack and its repercussions. Seldom does a day
go by that we do not hear mention of 9/11.
2005 - Dr. Harvey F. Barnard died on May 18,
2005. http://ssdi.rootsweb.ancestrv.com/cgibin/newssdi?sn=Barnard&fn=Harvev&nt=exact
2009 - Roy E . Schwasinger, Jr. died on 8/23/2009 at the age of 75. Verification Social Security Death Index at:
http://ssdi.rootsweb.ancestrv.com/cgibin/newssdi?sn=Schwasinger&fn=Rov&nt=exact
2011 - The Debt Ceiling debacle kindled re-newed interest in NESARA. As we
watch the world economy collapse, we can know that the NESARA LAW
remains in the background, ready to be announced.
11-21-14
From:
gov
Tliomas J. Lawler
4002 Hwy 78
Suite 530-321
Snellville, GA 30039
770-498-2886
To:
Richard B. Russell Federal Building
75 Spring Street, SW
2211 U.S. Courthouse
Atlanta, GA 30303-3361
Thank you.
Thomas J. Lawler
770-498-2886