Guest Post: Police State Amerika

Tyler Durden's picture

By David Galland, Casey Research

Police State Amerika

I just had a conversation
with constitutional lawyer and monetary expert Dr. Edwin Vieira. I first
became acquainted with Dr. Vieira, who holds four degrees from Harvard
and has extensive experience arguing cases before the Supreme Court, at
our recent Casey Research Summit
in Boca Raton, where he spoke on how far off the constitutional rails
the nation has traveled. Here is a summary of what he told me…

Vieira and I covered a lot of ground in our lengthy conversation, most
of it related to the U.S. monetary system – its history, nature, and
likely fate. But in between the details and analysis of how it is that
the nation’s fiscal and monetary affairs have deteriorated to the
current dismal state – and how the global sovereign debt crisis is
likely to be resolved – a couple of deeply concerning truths emerged.

Concerning because, taken together, these truths have set the stage for a full-blown police state.

first of these two truths has to do the nature of today’s money. To set
the stage, I present the following excerpt from Dr. Vieira’s paper A Cross of Gold related to the original Federal Reserve Act.

Section 16 of the Act provided that:

reserve notes, to be issued at the discretion of the Federal Reserve
Board for the purpose of making advances to Federal reserve banks are
hereby 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 gold on demand at the Treasury Department of
the United States, or in gold or lawful money at any Federal reserve

Observe: From the very
first, Federal Reserve Notes were denominated “advances” and
“obligations”—that is, instruments and evidence of debt. True “money”, however, is the most liquid of all assets, not a debt that might be repudiated, and certainly not a debt that has been serially repudiated.

if Federal Reserve Notes were from the start to be “redeemed in gold or
lawful money”, they obviously were never conceived to be either “gold”
or “lawful money”. So, because by definition the only “money”
the law recognizes is “lawful money”, by law Federal Reserve Notes were
never (and are not now) actual “money” at all, but at best only some
sort of substitute for “money”.

monetary conjurers’ trick has been, slowly, steadily, and stealthily,
to reverse this understanding in the public’s mind. That is, to make the
substitute pass for the real thing, and then remove the real thing from
the operation.

This subterfuge was not
overly difficult to put over. After all, in the term “redeemable
currency”, which is the noun and which the adjective? When people deal
with a “paper currency redeemable in gold”, the natural uninstructed
inclination is to treat the paper currency as “money” and the gold as
something else. The paper currency, as the saying goes, is merely
“backed” by gold—but of course is not itself gold. And because the
currency is not itself gold, the money-manipulators can remove the gold
“backing” farther and farther into the background, without affecting the nature of the paper as “currency” (at least nominally).

a “redeemable currency” can be converted into a “contingently
redeemable” or “conditionally redeemable” currency, through temporary
suspension of specie payments (as happened repeatedly during the
Nineteenth Century); and then into a full-fledged “irredeemable
currency”, through permanent suspension of specie payments, as with
Federal Reserve Notes after 1933 domestically and 1971 internationally.

to the average citizen (whose most serious liability is mental
inertia), even though a paper currency’s promise of redemption has been
dishonored, it nonetheless remains “currency”.

Thus one grasps that the so-called “right to redemption” attached to any paper currency is actually a liability, inasmuch as it exposes the holders of that currency to repudiation, because they possess only the paper, not the gold.

in the best of times, the holders of redeemable paper currency are not
economically and politically independent. Rather, they depend upon the
honesty and the competence of the money-managers.

This is why America’s Founding Fathers, realists all, denominated redeemable paper currency as “bills of credit”.
They knew that such bills’ values in gold or silver always depended
upon the issuers’ credit—that is, ultimately, the issuers’ honesty and
ability to manage their financial affairs.

unavoidable trouble with “bills of credit”, though, is that they can
(and usually do) turn out to be “bills of discredit”, when the holders
discover that the money-managers are dishonest and
incompetent—or worse, as is the situation today, highly competent at
dishonesty. Then the holders of the paper currency (if they are
sufficiently astute) realize how unwise it is to allow the gold to be
held by the very people with the greatest incentive, and the uniquely
favorable position and opportunity, to steal it.

when the money-managers refuse to redeem their currency, what can the
holders of that currency do to protect themselves? Well, what were they
able to do in 1933 and in 1971? Nothing. If the holders of
Federal Reserve Notes had enjoyed an effective, enforceable “right” to
the gold that the Federal Reserve System and the Treasury of the United
States promised to pay in redemption of those notes—that is, if the
currency had been “redeemable” in the only meaningful sense that redemption was absolutely assured as a matter of law and especially fact—the gold seizures of 1933 and 1971 would never have happened.

Thus, the ostensibly “redeemable” character of paper currency of the pre-1933 and pre-1971 type did not protect the holders of that currency. Instead, it turned out to be the very device used to deceive, defraud, divest, and dispossess them of gold—proving
in the most palpable manner that a society’s acceptance of “redeemable
currency” is the product of confusion and the invitation to inevitable
economic and political disaster.

In our conversation, Dr. Vieira
ticked off eight specific ways in which the current monetary system is
unconstitutional. While I won’t go into the specifics here, the
important thing to understand is that, as currently operated, the
federal government has managed to manipulate things to avoid any
constitutional restrictions on its ability to spend.

This, of
course, gives the government free rein to reward favored voting blocs
with expensive social programs, buy fleets of limousines, launch
expensive overseas adventures, bail out well-connected donors, and
otherwise spend the country into ruin.

To understand why this is
so important as a precedent to the evolution of fascism, view the matter
in reverse by considering how different things would be if the
constitutionally mandated requirement that the government’s currency be
redeemable in good money – gold or silver – was still enforced. In that
case, the government’s ability to spend would be effectively limited by
what it collected in revenues. That, in turn, would have greatly
curtailed its ability to grow into the bloated juggernaut it has.

In other words, the American ideal of a limited government would have been hard wired.

it stands, though, exactly the opposite has been allowed to evolve –
unchallenged by anyone, including the Supreme Court. Why has the
nation’s highest court chosen not to tackle this clear breach of the

According to Dr. Vieira, it is likely because if
they were to void the current system as being unconstitutional, they
would effectively blow apart the U.S. and global economy. But as they
have no authority to even suggest an alternative system, they are faced
with the reality that while they have the power to do great damage, they
have no power to cushion the blow. And so, the Supreme Court does

As a result, the ability of the federal government to
continue its insane spending and rolling out new initiatives designed to
win over voters continues with no legal restraints – the latest example
being the health-care initiative.

Put another way, in cahoots
with the Fed, the federal government is able to wage war, bail out the
banks, foster socialism, and otherwise bankrupt the nation – to do
whatever it wants – largely thanks to its continued operation of an
unconstitutional monetary system.

It Gets Worse…

second fundamental truth is that the Supreme Court has been a
co-conspirator and instrument of the government’s degradation of
individual liberty.

Dr. Vieira and I spent a fair amount of time
on this topic – of how the nation’s highest court could let stand the
egregious excesses of recent decades; the Patriot Act, Guantanamo,
institutionalized torture and renditions, domestic spying,
eminent-domain abuses, warrantless searches, etc., etc. In his view,
there can be only one of two reasons that the Supreme Court has been so
accommodating – one is that the justices are incredibly incompetent, and
the other is that they are working within the context of an unseen

Ruling out the first, his final conclusion is that they
are operating with an unseen agenda in mind. In his view, that agenda
revolves around the rising potential for widespread social unrest
emanating from the nationwide monetary Ponzi scheme. Doing its part to
prepare, the Supreme Court has been establishing the precedents
necessary for the government to cope with that unrest.

Too radical
a thought? Returning to Dr. Vieira’s point – ask yourself how else to
explain the Supreme Court’s actions. Are they collectively of low
intelligence, or otherwise so stupid as to be unable to understand the
Constitution? Or do they now view the Constitution and the Bill of
Rights as dead letters, freeing them up to respond to the government’s
overheated demands for new and previously unimaginable new “emergency”
(read “fascist”) powers?

Is there an alternative explanation?

this general theme, Dr. Vieira correctly points out that, in order for a
fascist state to exist does not require the government to actually
arrest anyone – but only that they can arrest anyone. Do you think you broke a law over the past week? I can assure you that every one of you dear readers broke a lot
of laws. Sure, you may not have realized you were breaking a law – but,
as the old saying goes, “Ignorance of the law is no excuse.”

The Stage Is Set

in its growth by any constitutionally mandated limits on its ability to
create and manipulate money – the official currency now being nothing
more than IOUs redeemable in nothing more tangible than coins made out
of base metal alloys with inflated face values – and supported by a
Supreme Court that has unequivocally demonstrated a willingness to
ignore or sign off on egregious tramplings of the Constitution, the
stage is set for the U.S. government to evolve into something far more
dangerous on the domestic front.

All it requires now is a
triggering event, and it would be naïve to think that such an event
won’t occur. Maybe not tomorrow, maybe not this decade – but when it
inevitably does, the federal government already has all the precedents
it needs to do “whatever it takes.” This absence of legal restrictions
on its actions is the very foundation of fascism.

When I asked
Dr. Vieira how the nation has progressed on a scale from 1 to 10 towards
becoming a police state, with 10 being a full-blown version, he put us
currently at about 7.

There really is no investment angle to be
derived from this situation – well, at least nothing new. Owning
tangible investments that will hold up in the face of a continued
currency debasement continues to make sense – but with the caveat that
FDR’s unconstitutional gold confiscation of the 1930s was let stand and
there is zero reason to think that the accommodating Supreme Court
wouldn’t go along with it again. One would hope to see straws in the
wind before any moves toward confiscation would begin. Until those
straws start flying, the precious metals – as well as other tangibles –
belong as part of your portfolio.

And I’d be remiss if I didn’t
mention the importance of politically diversifying your life and your
money as one of the few steps you can take to avoid the serious risk
that comes from being “all in” in a single jurisdiction.

readers have berated me for often writing on what might be considered
gloomy topics. To which I would respond: If you are sitting in a theater
and see a fire breaking out, would you fail to make others aware of it,
because you didn’t want to interrupt their entertainment?

we can see a fire blowing up – the kindling for which has been piled up
deep by a series of out-of-control governments. Unless and until there
is something akin to an “American Spring.” this fire is going to spread
and consume even more of the accumulated wealth of the broader public –
and maybe worse.

Do what you can to protect yourself and your
families – then get on with your life. You may not be able to do much
about the bigger-picture trend, but you can certainly take steps on a
personal level to mitigate the ill effects.

Hope for the best, plan for the worst… but then live life to the fullest

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weinerdog43's picture

Perhaps if you would use your tiny brain for a change you might look up what Mr. Viera has to say:

1.) Judicial insanity in Indiana;

2.) on the Fed's transfer of wealth...


Drop the republic party banner for 5 seconds.

silvertrain's picture

lookup the book "piece's of eight"

mynhair's picture

Just got ticked 'cuz the dip obviously assumed 'Haavad' meant I was repube.

For the record, I will vote for an orange juice can over Oblahma (Levin stole it).

Ron Paul is a joke, maybe his kid will be better.

PaddyFields's picture

Ron "Paul is a joke?" That's so dissappointing. Still, is must be true if pronounced by a man with the rapier wit to write 'Oblahma'. Genius

Spirit Of Truth's picture

What's interesting is how supportive RussiaToday is of Ron Paul:

Now why is this?  Moscow is rather savvy about identifying, infiltrating and undermining the opposition at as early a stage as possible.

More -

JW n FL's picture


Spirit, seriously? I mean fucking really?


this is the manipulation that concerns you?


these idiots are selling that Kokesh is a Russian Spy! fuck me.


Seriously? this is what you have to offer?


Spirit Of Truth's picture

I have much more to offer than that for those willing to think for themselves, i.e., freely:

While Kokesh, Alex Jones, Barack Obama, etc., may be useful stooges, I don't think this is the case w/Ron Paul.  Note that I wrote infiltrate the future opposition.

Sizzurp's picture

BTW, Russia and China both have flat taxes of around 12%, and that is all you have to pay.  Russia has been about the only country willing to stand up to the banking oligopally, a few years ago at the Davos meeting, Medvedev brought a Gold coin and said that it should be the new reserve currency.  I am not saying I trust Putin, but I think they see what is happening here in this country, and they have been there done that.  It doesn't work.  Ron Paul is the only candidate advocating a limited foreign policy, and returning soldiers home from foreign bases.  It is the stated policy of Russia to limit US influence in Asia, so from the russian standpoint, Ron Paul makes a lot of sense.  I also happen to think he makes a lot of sense for the US.  Trying to fear monger Ron Paul, Kokesh and the other prominent liberitarians as "russian agents" is a joke.  The real Marxists are in Washington and in power.

malikai's picture

I suppose Rupert Murdoch must be part of the rejuvenated Stasi then, since he also allows RP, Napolitano, and the like on FOX.

On second thought, Rupy probably is part of the rejuvenated Stasi.. 

Cathartes Aura's picture

there are a handful of career politicians that advocate change, and serve their district (apparently, as they're voted back in), etc. - I would say Ron Paul fits in this sector. . . but all those who believe that an individual "voted" to high figurehead can make ANY changes in the overall plan/trajectory is sadly still labouring under the illusion that "change" can happen through "the people voting."

too far down the road folks, time to realise a deeper truth, and prepare accordingly.  stop "hoping" a vote will "change" amrka.

laomei's picture

As someone who lives in China... you have no idea what you are talking about

PaddyFields's picture

I agree with the previous comment.



Arnolds Love Child's picture

When I woke up I had drooled on my shirt.

DollarMenu's picture

@ Rational Psycho

Thank you for that link to the Vieria interview.

A fascinating discussion filled with optimistic possibilities.

Eliciting the States to exercise their Constitutional powers - what energizing concepts.

Certainly worth viewing again and again.

navy62802's picture

Holy shit! That book costs $200!!

Captain Benny's picture

Thats 200 slips of paper-like fabric that burn rather quickly being converted into 1722 pages of paper that contain far more useful information and still burn and last even longer keeping you warm when the fiat fails.  Its an investment alright... one I'd consider.

alien-IQ's picture

so does a bottle of Dom...which one will last longer?

JW n FL's picture


mynhair's picture

Weinerdog, you are a seminar poster.  Piss off.

weinerdog43's picture

Well, if you mean by seminar, yes, I'm lecturing you.  That is what teachers and professors do to students.  Please put down the republic party flag.  Learning requires an open mind.  Thanks.

alien-IQ's picture

disdain for intellect is the new flag waving.

Bob's picture

An ironic celebration of pride. 

I think I need to buy a gun's picture

so which way is it going? Are we going to have a "crisis" or is big Ben going to frontrun everyone and devalue

mynhair's picture

Where have you been?  Been in a crisis since 11/08.  Or 04, depends on your calendar.

Raynja's picture

war will claok the printing press in patriotism.


odds on favorite for an event  is a major cyber attack.  since us stating they could counterattack a cyber attack with a physical attack stories on hackers has exploded

serotonindumptruck's picture

I'm hoping for an event that is out of the elites' control. A super-massive CME from the Sun would fit that description nicely. Solar cycle 24 is well underway, and the Sun hasn't been this active in recorded scientific history. Our solar system seems to be displaying signs of extreme chaos and rapid change. The Earth's magnetic field has been steadily growing weaker, and the North and South poles are rapidly migrating.

I believe that what is about to happen occurs every 3600 years. It is a cyclical cosmic event. And we've all got front row seats in this theater of terror.

It's a great time to be alive.

Abitdodgie's picture

I agree with you ,but for some reason they don't like to talk about Elenin on ZH, looks like a lot of people are getting to their destinations already

Dejean Splicer's picture

Because Elenin is smokescreen cover for the winged planet.


Pope Clement's picture

It's been 6,000 years since the last major discombobulation of the solar system which has been documented in the world's 'Sacred' and mythic literature - scary shit indeed.

Oh regional Indian's picture

Indeed Il Papas, indeed. You are on the spot. 


old naughty's picture

People are still fully emersed in the duality, that is why it s so difficult to make them awaken --- they thought they are awake, but really not.

But the superconscious is cycling forward. Species level extinction? I like your "innovation" better.

buzzsaw99's picture

A lawyer with 4 degrees from Harvard is going to set us on the road to righteousness. LMAO!

kito's picture

oh and i thought it was the guy from princeton that had that role!!!  those ivy leaguers, sooooooo smart!!!

Al Gorerhythm's picture

So, what's the buzz then 99? What you got for us?

I_ate_the_crow's picture

A large majority of the founders were attorneys. Not all of them are parasites. It's like any other segment of society: a few powerful criminals, a lot of irresponsible idiots, and a tiny minority of righteous citizens.

This post is a fantastic perspective and one that I totally agree with. Contrary to what they would have you believe, the Supreme Court is a political entity, and thus it is as equally worthless and as easily marginalized as Congress and the Executive. When you couple that fact with an understanding of the bogus federal reserve banking system and regulatory capture, only then do you see the inevitable result of two converging corruptions: a fascist police state.

There was a time when I would have called all day traders leeches who offered nothing to society. However, if it weren't for a tiny minority of righteous traders (ZH, Turd, Keiser) exposing the manipulation, the rest of us unitiated idiots might still think the stock market was legit. The legal profession is no different and in the coming months there will be a tiny minority of attorneys that help expose the coming police state. The question is, what will you do with this knowledge? Make fun of Harvard elites, or start making some fucking noise in your community that you will not stand for decisions like the one made by the Indiana Supreme Court?

johnnynaps's picture

What will I do? I am going to continue to milk my unenjoyment knowing that I am not financing this BS! When that runs out, cash jobs to keep from financing this. The fun part of all this police state is......our government isn't adding police, they are cutting their jobs. So, me thinks the police state is going to actually go backwards in effectiveness. I really can't wait for the next financial catastrophe which should eliminate another 20% of the police force. Then it's Viva Atlantic City in record time on my sport bike!

Widowmaker's picture

The police state is moving swiftly towards privatization.  Goodbye justice and reformation  hello bonus.

onthesquare's picture

Has anyone just up and disappeared?

When that begings to happen then you know the US is finished.

Not to worry. The rest of the western world governments are right behind the US govenment. Canada wants Libiya's oil and will help you get it. This will keep our dirty tar sands slowed down for a while and that is a good thing for the environment.

Taking over Libya is environmentally friendly.


JW n FL's picture


dont worry we are going to polute GOM some more! right along with your pristine natural wonders!

superflyguy's picture

that's when the blue helmets and contractors get in

FeralSerf's picture

Not adding police?!  Are you talking about the Feds?!  If so, what about TSA?  What about Blackwater?  What about the US Military?

The only police that are disappearing are the local ones that can't be paid.  The fascists that print the money are rapidly increasing their numbers.

Cloud9.5's picture

I look down south of me at the third world country of Miami and I almost yearn for a police state.  Then I look at the rural hinterlands and I long for individual liberty.  It just might be that the Supreme Court is hedging its bets.  Consider if you will D.C. v  Heller

JW n FL's picture

You Cowards in Broward leave Palm Beach out of your site line with that Police State Bullshit!

Helicopters Over Brickell (a half dozen BlackHawk Army Choppers test landing (ropes) for troops on the Bank of America Building)

Miami Police Shot Protester, then laugh about it.

POLICE STATE 2011: Drones nearly ready to fly for Miami Dade Police Dept.

Cloud9.5's picture

Actually I’m in Highlands.  My concern is that should the bread and circuses stop, my little county will in no way be able to accommodate the masses living in Dade County.  The ego centric selfish part of me would like to see a fence built between me and them.  My altruistic civil libertarian part opposes any totalitarian regime.   I suspect any control Miami Dade police exercise is directly tied to the continuation of the bread and circuses.  In a real collapse, they will go the same direction the New Orleans Police Department went during Katrina.