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President Obama’s Trillion Dollar “Stimulus” Package is Unconstitutional
Feb 12, 2009
Congress and President Obama’s – as well as former President George Bush’s
-- trillion dollar Economic “Stimulus” Packages not only violate Article 1,
Sections 8, 9, and 10 of the U.S. Constitution, they are in direct
contradiction to what the authors of The Federalist Papers stated about
they inserted their monetary clauses into the U.S. Constitution.
And since the Federal Reserve, the Treasury, and Congress already
destroyed the value of the U.S. Dollar with Keynesian pseudo-economics, it
is not surprising that graduates of this philosophy from our major
universities gravitated to Wall Street where they extrapolated these same
deficit concepts to what we now call “toxic derivatives,” which – like the
Dollar – also have no value and thus precipitated our current financial
DC – The authors of the U.S. Constitution foresaw opposition to the
ratification of their new document in 1787. In an effort to explain the
Articles and Sections comprising the new Constitution, three men – Alexander
Hamilton, James Madison, and John Jay – writing under the pseudonym of
Publius, produced a series of 85 essays, the collection of which resulted in
The Federalist Papers. The Federalist Papers stand as an authoritative
analysis and explanation of the Constitution of the United States since they
were penned by the authors of the Constitution and thus take their place of
political importance third only to the Declaration of Independence and the
final document itself: the U.S. Constitution.
ask, why did Hamilton, Madison, and Jay write The Federalist Papers under a
is: for many of the same reasons that the author of this Web Site, Free
Market Duck, writes under a pseudonym: so the readers will concentrate on
what is being said rather than the persona of who is saying it. In the case
of Hamilton, Madison, and Jay, the framers of the new Constitution had a
British price on their heads for treason against King George. If the
Constitution and new nation had failed, authorship of the essays comprising
The Federalist Papers could, in future courts, become just that much more
evidence of the authors’ treason against the British Empire. As an aside,
or for your next game of Trivia Pursuit, Benjamin Franklin authored letters
to newspapers using 13 different pseudonyms, including as a woman named
Silence Dogood to chastise local leaders who were less than virtuous in
getting unmarried ladies pregnant and then refusing to acknowledge their
deeds of conjugal endearment or support the women and their progeny.
the scene of today’s “Stimulus” Package crime.
exactly, does Publius – authors Hamilton, Madison, and Jay -- have to say
about money, economics, and contractual obligations in the U.S.
Constitution? And how is it relevant to America’s current economic
recession and proposed trillion dollar “Stimulus” packages in the year 2009?
let’s look at the pertinent Sections in the U.S. Constitution and see what
it says about money:
“Article 1, Section 8. Powers of Congress (1) The Congress shall have the
(4) To coin money, regulate the value thereof, and of foreign coin, and fix
the standard of weights and measures;
(5) To provide for the punishment of counterfeiting the securities and
current coin of the United States;
Section 9. Powers denied Congress. (7) No money shall be drawn from the
treasury, but in consequence of appropriations made by law; and a regular
statement and account of the receipts and expenditures of all public money
shall be published from time to time.
Section 10. Powers denied the states. (1) No state shall… coin money; emit
bills of credit; make anything but gold and silver coin a tender in payment
of debts; pass any law impairing the obligation of contracts, or grant any
title of nobility.”
clauses are the monetary clauses of the U.S. Constitution.
ask ourselves, does Congress and President Barack Obama’s trillion dollar
Economic “Stimulus” Package violate any Sections of the U.S. Constitution or
contradict The Federalist Papers?
start with the U.S. Constitution, Article 1, Section 8. POWERS OF
CONGRESS. Congress is granted the power to coin money and regulate its
value by fixing its standard weight and measure. Unfortunately, Congress
has since illegally delegated that power to a private corporation called The
Federal Reserve, now commonly called America’s central bank. But this is
blatantly unconstitutional. Congress no more has the right to delegate its
primary monetary authority to a private corporation to establish the value
of U.S. coin and paper currency than it has the right to delegate its voting
rights on Bills to winos off the street. This represents Congress’ initial
violation of the U.S. Constitution’s monetary clauses and lays the
groundwork for all subsequent violations that one can trace to our current
financial meltdown and economic recession.
central bank, The Federal Reserve, has, since its inception in 1914, taken
on much more responsibility than what the U.S. Congress illegally granted to
it, all in direct violation of Article 1, Sections 8, 9, and 10, of the U.S.
Constitution and also in direct contradiction to the reasons stated in The
example, The Federal Reserve draws money from, or shoves money into, the
U.S. Treasury – or simply creates it out of thin air with no authority
whatsoever through various tricky mechanisms – and does not provide a
“regular statement and account of the receipts and
expenditures of all public money” which
“shall be published from time to time,”
as required in Article 1, Section 8, Paragraph (5) of the U.S.
Constitution. The Federal Reserve is more secretive than the CIA. They
inflate our money at will and provide no oversight or accountability of
their monetary manipulations to either the U.S. Congress or the people of
the United States.
addition, The Federal Reserve in conjunction with the U.S. Treasury, has
debased our coins from gold and silver to cupro-nickel, and removed the
contractual wording on our paper money so that the Federal Reserve Note –
the U.S. paper dollar – is no longer redeemable at any U.S. Treasury for
gold or silver coins. We are officially off the gold standard and this is
in direct violation of Article 1, Section 10, which states,
“No state shall… coin money; emit bills of credit;
make anything but gold and silver coin a tender in payment of debts… .”
emphasis in Article 1, Section 10, above is not to be interpreted as a
prohibition ONLY against the individual States issuing their own coin or
credit but rather upon ALL the States individually AND collectively, i.e.
prohibiting the federal government itself, from making anything but gold and
silver coin – coin, not paper – a legal tender in payment of debts.
Obviously, if no State is allowed to “make
anything but gold and silver coin a tender in payment of debts,”
then it logically follows – and The Federalist Papers support this
interpretation – that copper, nickel, paper, or plastic federal money would
also not qualify as legal tender in any of our States whether it is printed
by the States or the federal government. The only argument that paper money
can legally be issued by the federal government is if said paper
certificates -- or any other form of money -- are fully backed by, and
redeemable in, gold or silver coin.
non-gold and non-silver substitutes are merely serving as forced
counterfeit monetary tokens, forced upon
U.S. citizens by the Federal Reserve, the U.S. Treasury, and the U.S.
Congress in direct violation of the U.S. Constitution.
counterfeit monetary tokens, whether as
coins, Federal Reserve Notes, Treasury-Bills, and, recently, the $700
Trillion in toxic derivatives on our nation’s bank’s off-book balance sheets
comprising credit default swaps, subprime mortgages, and other
cleverly-manipulated worthless “money” have no
intrinsic nor collateralized value. And that is why nobody can
price either our Pulp Fiction Dollars OR the toxic derivatives sitting on
our major banking institutions’ balance sheets. Until we return to sound
money – gold and silver coin or 100% backed gold and silver certificates –
the United States’ economy will remain in a hyper-inflated Depression and no
amount of so-called Economic “Stimulus” Packages can do anything to solve
the problem. In fact, the more counterfeit
monetary tokens that Congress, President Obama, the U.S.
Treasury, or the private Federal Reserve central bankers try to shove into
the market – domestic and international – the worse our economic problems
reference to the Article 1, Section 10, monetary clause, the Federal Reserve
and other socialist interventionists have tried to claim that this clause
only says that the States cannot issue gold and silver coins. But, they
claim, the federal government via the private Federal Reserve or Treasury
somehow has the right to declare anything -- including buffalo doo-doo --
legal tender for the payment of debt.
we have discovered that various governmental and private central bankers
have been “counterfeiting” our U.S.
money, both coin and paper currency, Article 1, Section 8, Paragraph (5)
“provides for the punishment of counterfeiting the
securities and current coin of the United States.” Therefore,
all those legislators in Congress and Presidents George Bush and Barack
Obama, among others, are guilty of violating the monetary clauses of the
Madison wrote in Federalist Paper No. 42:
“The punishment of counterfeiting the public securities, as well as the
current coin, is submitted of course to that authority
which is to secure the value
Remember, as we have stated over and over at this Web Site, our current
recession and financial meltdown is a “VALUE” crisis, not a lack of enough
money crisis. We don’t need more fake “capital” or “more spending,” nor
will it “stimulate” anything – except economic and social ruin. Fake money
does not bring prosperity or create jobs. And injecting trillions or
quadrillions of units of fake money will only exacerbate the problem,
creating all sorts of trade protectionism and eventually lead to a Third
of our U.S. money, both coin and paper, has been debased and made worthless
by the very politicians and central bankers who are now trying to “save” us
with more of that which initially caused our problems: namely, going off
the gold standard and substituting ALL of our coins and paper money with
counterfeit monetary tokens, commonly
called Funny Money, or Pulp Fiction Dollars.
Federalist Paper No. 42, James Madison states:
“All that need be remarked on the power to coin money, regulate the
thereof, and of foreign coin, is that by providing for this last case, the
Constitution has supplied a material omission in the Articles of
Confederation. The authority of the existing Congress is restrained to the
regulation of coin struck by their own authority, or that of the respective
States. It must be seen at once that the proposed uniformity in the
of the current coin might be destroyed by subjecting that of foreign coin to
the different regulations of the different States.
The punishment of counterfeiting the public securities, as well as the
current coin, is submitted of course to that authority
which is to secure the value
The regulation of weights and measures is transferred from the Articles of
Confederation, and is founded on like considerations with the preceding
power of regulating coin.”
Madison’s Federalist Paper No. 42, it is obvious that he is concerned with
establishing the power to coin money and
regulate its value at the federal level, i.e., authority vested
in the U.S. Congress, rather than at the State level. He is very concerned
about the uniformity of value of U.S.
coinage across all the States and, thus, explains why the framers of the
Constitution established a national bureau of weights and measures: mainly,
to establish the value of our gold
and silver money.
Federalist Paper No. 44, Madison explains why gold and silver coin should
serve as money:
“No State shall… coin money; emit bills of credit; make anything but gold
and silver a legal tender in payment of debts…”
“The right of coining money, which is here taken from the States, was left
in their hands by the Confederation as a concurrent right with that of
Congress, under an exception in favor of the exclusive right of Congress to
alloy and value.
In this instance, also, the new provision is an improvement on the old.
alloy and value
depended on the general authority, a right of coinage in the particular
States could have no other effect than to multiply expensive mints and
diversify the forms of
weights of the circulating pieces.
The latter inconveniency defeats one purpose for which the power was
originally submitted to the federal head; and as far as the former might
prevent an inconvenient remittance of gold and silver to the central mint
for re-coinage, the end can be as well attained by local mints established
under the general authority.”
is important to understand that Madison was putting forth the economic
concept of “commodity money” vs. worthless, non-backed paper money. The
emphasis on using gold and silver as “commodity money” merely represents the
fact that gold and silver are the best type of “commodity money” thus far
invented, and applies even today. Note that gold and silver money are the
only forms of money that do not represent a liability for an exchange of
goods or services since gold and silver are commodities themselves, as
opposed to paper I.O.U.s which represent future paper debt that may or may
not be repaid – especially at par (non-inflated)
value. Worse yet, today’s Pulp Fiction
Dollar is not backed by, or redeemable in, anything
of value. Our paper money is not even an I.O.U.
today’s recession is a “value”
crisis, not a lack of enough paper money or lack of spending crisis. (Part
2 continued tomorrow) – FM Duck
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