Wednesday, June 25, 2014

Warning for the Fed and Other Large Buyers of US Government Debt

The US taxpayer who doesn't have to be a US taxpayer is waking up.  Peter Hendrickson's website,, provides ample evidence that the IRS has been respecting the constitutional limits written into the law (Title 26) for those patient and aware enough to proceed through the interactions with that haggled agency that are required to avoid paying taxes for which they aren't liable, or have refunded any monies erroneously collected.

A scant portion of Americans today understand that the US Income Tax applies only to those who exercise some kind of privilege granted by the federal government in their efforts to earn money.  This small vanguard of public financial discipline has been spreading its knowledge, however, and that means a shrinking base of revenue producers for the US government.  What does this mean for you?

Propaganda over the last several decades has led you to believe that the majority of American citizens are on the hook for the money due you through your investments in US treasuries and bonds.  Contrast that with the evidence provided on Hendrickson's website both of legal research demonstrating the nature of the situation and scans of checks written by the IRS to Americans who do not exercise any federal privilege.  The recipients of these checks were charged the tax as if they had exercised such privilege, showed that they had not, and demanded that the agency return the erroneously collected money.  The agency complies with the law.  Extrapolate that across the larger portion of Americans suffering from the economic crisis and the drain it continues to have.  As more and more people realize they are not on the hook for this debt, the pool of earners will shrink well below what can sustain payments owed to you.

You may find that the greater portion of what is owed you will be paid in freshly printed currency which will hyperinflate, or that the US government will simply repudiate the debt it owes you.

Your expectations cannot be met.  You have been warned.

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