Forty-three years ago today in what is now not-so-commonly known as the “Nixon Shock”, Richard Nixon ended the Bretton Woods system by ending the convertibility of Federal Reserve Notes to gold, thereby putting the United States—and the world—on the road to financial ruin. Or, to put it another way, Nixon made us all debt slaves to money printed out of thin air, leading to the inevitable foreclosure fraud, unemployment, bailouts, bail-ins and other treachery currently being visited upon us all.
Yes, Bank of America picked a winner when they plucked ol’ Dick Nixon from obscurity in 1945. Through Nixon, Bank of America achieved a magical feat even more fantastic than alchemy—to be able to create unlimited amounts of money at will, unbound by any brutish metals or economic reality. To be able to wield the incredible power and influence that such unlimited money can buy, and to be able to become the 1% of the population that keeps the 99% in perpetual debt servitude. And it only took 26 short years to get it done, from the September 29, 1945 letter sent to Nixon by Bank of America’s H.L. Perry until August 15, 1971.
Nixon, 9th Circuit and how fake money became “Lawful Money”
Here’s what happened in a nutshell: 1) Bank of America picked Dick Nixon, 2) Dick Nixon picked some federal judges, 3) Dick Nixon created the pure fiat/imaginary/out-of-thin-air/fictional money we now use and that is a banker’s wet dream, 4) and then Dick Nixon’s judges affirmed that the fake money is real money. So let’s take these four points one at a time.
1. Obviously, we have the letter from H.L. Perry pictured above, which is on display at Nixon’s birthplace in Yorba Linda, CA. We also have the following account from pioneering independent journalist Mae Brussell, from an August 1972 issue of The Realist magazine:
“In August, 1945, a Committee of One Hundred Men located in California placed an advertisement in 26 newspapers:
WANTED — Congressman candidate with no previous political experience to defeat a man who has represented the district in the House for ten years. Any young man, resident of district, preferably a veteran, fair education, no political strings or obligations and possessor of a few ideas for betterment of country at large may apply for the job. Applicants will be reviewed by 100 interested citizens who will guarantee support but will not obligate the candidate in any way. (26)
That ad was typical, a covert method of pretending this was an open contest for office. Richard Nixon, located in Maryland, still in the Navy, received a telephone call from Herman Perry. ‘Are you a republican and are you available?’ were the two questions asked of Nixon.(27)
Herman Perry was vice president of Bank of America (28) — which was soon on its way to becoming the largest private bank in the world. By 1960, one hundred top corporations were spending $21-billion for military goods. In California alone, fully half of all jobs related directly or indirectly on the continuance of the arms race.(29)
Richard Nixon, poor, from an unknown family, absent from the California scene for many formative years during law school and military service, was selected to represent old guard California republicans who picked him to run for Congress.(30) He was called upon to serve the strategists.
Nixon was ‘recognized.’”
2. Indeed, Nixon was recognized, and elected to two terms as President, which of course enabled him to appoint federal judges, including those in the influential Ninth Circuit. Here are some of Nixon’s appointees to the Ninth Circuit: Eugene Allen Wright, Herbert Choy, John Francis Kilkenny, Ozell Miller Trask, Alfred Goodwin. Remember those names—they’ll come up again shortly.
3. Nixon announces the end of the convertibility of the dollar into gold:
4. Noted attorney Larry Becraft has compiled a list of several cases which are cited as having “destroyed” the argument that money created out of thin air is not real money, all but one of which were decided after the Nixon Shock (as you obviously can see):
“Adverse Federal Decisions:
1. Koll v. Wayzata State Bank, 397 F.2d 124 (8th Cir. 1968)
2. United States v. Daly, 481 F.2d 28 (8th Cir. 1973)
3. Milam v. United States, 524 F.2d 629 (9th Cir. 1974)
4. United States v. Scott, 521 F.2d 1188 (9th Cir. 1975)
5. United States v. Gardiner, 531 F.2d 953 (9th Cir. 1976)
6. United States v. Wangrud, 533 F.2d 495 (9th Cir. 1976)
7. United States v. Kelley, 539 F.2d 1199 (9th Cir. 1976)
8. United States v. Schmitz, 542 F.2d 782 (9th Cir. 1976)
9. United States v. Whitesel, 543 F.2d 1176 (6th Cir. 1976)
10. United States v. Hurd, 549 F.2d 118 (9th Cir. 1977)
11. Mathes v. Commissioner, 576 F.2d 70 (5th Cir. 1978)
12. United States v. Rifen, 577 F.2d 1111 (8th Cir. 1978)
13. United States v. Anderson, 584 F.2d 369 (10th Cir. 1978)
14. United States v. Benson, 592 F.2d 257 (5th Cir. 1979)
15. Nyhus v. Commissioner, 594 F.2d 1213 (8th Cir. 1979)
16. United States v. Hori, 470 F.Supp. 1209 (C.D.Cal. 1979)
17. United States v. Tissi, 601 F.2d 372 (8th Cir. 1979)
18. United States v. Ware, 608 F.2d 400 (10th Cir. 1979)
19. United States v. Moon, 616 F.2d 1043 (8th Cir. 1980)
20. United States v. Rickman, 638 F.2d 182 (10th Cir. 1980)
21. Birkenstock v. Commissioner, 646 F.2d 1185 (7th Cir. 1981)
22. Lary v. Commissioner, 842 F.2d 296 (11th Cir. 1988)”
Notice that none of these decisions are U.S. Supreme Court decisions, and that the court that shows up the most in this list is the Ninth Circuit. And again, all but one were decided after the Nixon Shock, as a direct challenge to the Nixon Shock, whether intentional or not. And that’s what the bank-owned courts can’t abide–challenges to their system of total enrichment for them and total enslavement for us. So the challenges were of course slapped down.
One of these cases, number three on this list, is currently cited by the Federal Reserve on its website as being one of the cases which firmly established that Federal Reserve Notes are “lawful money”:
“In 1933, Congress changed the law so that all U.S. coins and currency (including Federal Reserve notes), regardless of when issued, constitutes ‘legal tender’ for all purposes. Federal and state courts since then have repeatedly held that Federal Reserve notes are also ‘lawful money.’ Milam v. U.S., 524 F.2d 629 (9th Cir. 1974), is typical of the federal and state court cases holding that Federal Reserve notes are ‘lawful money.’ In Milam, the United States Court of Appeals for the Ninth Circuit reviewed a judgment denying relief to an individual who sought to redeem a $50 Federal Reserve Bank Note in ‘lawful money.’ The United States tendered Milam $50 in Federal Reserve notes, but Milam refused the notes, asserting that “lawful money” must be gold or silver. The Ninth Circuit, noting that this matter had been put to rest by the U.S. Supreme Court nearly a century before in the Legal Tender Cases (Juilliard v. Greenman), 110 U.S. 421 (1884), rejected this assertion as frivolous and affirmed the judgment. “
Boys and girls, can you guess who appointed the majority of the judges on the Milam panel? Of course you can—Richard Nixon. He appointed John Francis Kilkenny and Ozell Miller Trask, two of three judges on the Milam panel. And go down the list above—the Nixon appointees named above had their hands in a number of the listed decisions.
It’s interesting to note, however, that even though the Milam court said that Federal Reserve Notes are “lawful money,” it stated that said lawfulness was pursuant to 12 U.S.C. § 411:
“The power so precisely described in Juilliard has been delegated to the Federal Reserve System under the provisions of 12 U.S.C. § 411. Appellant’s challenge to the validity of this legislation is meritless. Cf. 31 U.S.C. § 392.”
But 12 U.S.C. § 411 itself seems to make a distinction between Federal Reserve Notes and lawful money, to wit:
“§411. Issuance to reserve banks; nature of obligation; redemption
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.”
A federal court making a decision based on circular logic? As Yves Smith might say, “Quelle surprise!”
This can be undone
Despite what the powers that be—i.e., the courts—would have you believe, we don’t have to put up with this fakery. We now know for absolute certain that money is fake, fictional, and created out of nothing. Of course, these courts knew that, too, but as usual, the courts serve the banks. For how much longer? Only as long as we put up with it before we demand that these decisions be reversed and supplanted by decisions based in reality instead of banker fantasy. Sounds impossible, but such reversals have been accomplished before on big topics, i.e., from Plessy to Brown v. Board.
At any rate, there you have it. A nice Nixon Shock Day tale of how fake money became real money. All you have to do is get a frontman to rig everything in your favor, then it’s billions upon billions upon trillions, forever and ever. For them, of course. Nothing for you.