Tuesday, 19 February 2008

FILM: America: Freedom To Fascism

The question Russo started out asking when he began his film was whether or not there was an actual law requiring US citizens to file a 1040 tax return. That is, to pay tax on their labour - an income tax. He'd heard stories that the income tax was unconstitutional and unlawful. Whilst making the film, he found out that - it was. Below is a brief summary of some of the issues discussed in the film.

What is the Federal Reserve?

The Federal Reserve (often refered to as the Fed) issues money to the US government. In spite of its name, the Federal Reserve isn't federal. It's owned by a group of private bankers, not all of which are known. There's a false perception - which has been consciously fabricated - that the Federal Reserve is part of or run by the government. It isn't. It's a private company that operates in collusion with government, not under it. Someone in the film says that the government and the Federal Reserve are like a mafia cartel, one forcing people to pay up through the threat of violence and imprisonment, while the other collects the money. This is more true than you probably realise.

[I've also just read that the Federal Reserve bankers are behind the Bank of England (I've heard this said a few times), along with many other institutions such as the Bank of France, the International Monetary Fund, the World Bank, the Bank of International Settlements in Switzerland, the United Nations, 'the ultimate front for international banking interests.']


In the past, you could take paper receipts (what we call money) into a bank and exchange it for gold. The receipt itself had no value beyond the gold (or whatever else) it represented. In effect, the gold was the money, not the recipt. However the Federal Reserve isn't backed by gold. It literally prints money out of thin air. This invariably produces inflation (someties called the 'hidden tax') because everytime more money is printed the value of the money already in circulation simultaneously diminishes. Since the value of the currency is diminished the cost of things increases.

"Paper is poverty...it is only the ghost of money, not money itself." Thomas Jefferson


The money loaned to the government by the Federal Reserve is loaned at interest. This means that for every dollar in public use interest must be paid to the Federal Reserve. In order to pay the interest more money must be printed, by the Federal Reserve, at interest. Thus creating an endless supply of revenue for the private bankers who own the Federal Reserve.

Internal Revenue Service (IRS)

This is the federal goverment agency that collects taxes, including the unlawful, unconstitutional income tax. Now, if you're like me, you'd probably assume that money collected through a manditory income tax would go towards things such as running government and paying for public services. This isn't so. The Grace Commission (a top to bottom investigation of government set up by Reagan when he entered office) reported of the income tax that "100% of what is collected is absorbed solely by interest on the federal debt."

Not one cent of this tax benefits a single US citizen. It all falls into the pockets of the private bankers who own the Federal Reserve. As ludicrous as it sounds, in effect, people work a significant portion of each year to pay the Federal Reserve for the privelidge of having a currency.

Income Tax

There is a lawful income tax. But it doesn't apply to money earned personally though one's labour. It's a tax on corporate gains. This is the meaning of income tax. In spite of this, in 2005, $278.5 billion was collected in legal corporate tax, whereas $927.2 billion was collected via the unconstitutional, unlawful labour tax.


JP Morgan. Paul Warburg. John D Rockerfeller. According to Russo it was these bankers in 1913 who convinced Philander Knox, then secretary of state, to lie to the American people and declare that the 16th Ammendment had been ratified when it hadn't (read more about this here or here). The 16th Ammendment gave congress the power "to lay and collect taxes on incomes, from whatever source derived". The bankers knew that money gained through tax via the 16th Ammendment would belong to them.

The bankers then bribed senators to pass the Federal Reserve Act. They did this when many senators were at home during Christmas vacation. The act was passed and signed into law by president Woodrow Wilson. This is how a group of private bankers took complete control of the production of money in the US.

"Give me control of a nations money supply, and I care not who makes its laws." Mayer Rothschild

After thought: As Chomsky says, the two party political system is an illusion. Democrat and Republican are two sides of the same business faction (Chomsky also says that the same analysis applies to Britain, albeit to a lesser extent). The name of this business faction is the Federal Reserve - or New World Order, or Global Elite, or whatever you want to call these people.

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