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PJ 10CHAPTER 23REC #2 HATONNTUE., DEC. 5, 1989 10:45 A.M. YEAR 3, DAY 111
TUE., DEC. 5, 1989SECURITY OF VALUABLES ON YOUR PROPERTY
As I give you some conclusions in listed format so that you can go back and brush up on subject matter from the text, I will point out some safety measures which may seem "cloak and daggerish". It is obviously necessary that you protect that which you are able to salvage from the institutions. It helps none at all if you simply bring your cash and valuables home and tell the world you have done so. USE YOUR GOD-GIVEN BRAINS AND TAKE EXTREME CAUTION.
HIDING PLACES
A good fireproof safe is a good asset--if you can disguise it. Most home safes can be taken from your property by one or two persons with the proper trucking equipment.
The most wondrous place for your valuable papers is right in your deep freeze compartment or within your deep-freeze appliance. If you have a fire, this will be the last thing that will burn and practically no fire can destroy the contents thereof.
You will desire to package in moisture-proof, air-tight wrap. You will wish to make the package non-desirable to thieves who would steal lobster tails or steaks, etc. A good place is inside a turkey which has been cleaned out so that there is cavity space, or old "phylo-wrapper" containers, or frozen vegetable bags which have been "re-sealed" but where the contents can completely camouflage the contents. You would want to never allow ones to borrow from your freezer except in your presence. Keep the packages in the back or bottom and hard to get at and/or stacked within the "real" thing! Be creative.
Your refrigerator is almost as good as your freezer--in containers or cheese boxes. Again, make sure the package weighs appropriately and is sealed with glue, etc., so that it is difficult to rip the tops or ends open. If things are placed among others of the real item and weigh-in properly--most thieves will not give it a second look.
Get a fire alarm system (smoke detectors) to lessen chances of total fire destruction.
You can create very usable valuable containers behind false electrical outlets and even behind valid outlets. You can have false circuit or fuse boxes which can be further opened or removed and containers be built into the wall between the partitions. Make sure you have a good bottom in the storage place or latch hooks on the bags you would "hang" within the walls, lest they fall and you have to tear up the foundation of your building.
You can have a removable baseboard or false backed bathroom cupboard. How about hollowed out paper towels, toilet tissue, plastic wrap or aluminum foil containers.
Stay away from hiding valuables in your bedroom or near anyplace that you have jewelry or items which are desirable for thieves--i.e., T.V. sets, stereos, VCRs and such. A good place is an empty can among your cupboard supplies. There are containers especially made for the purpose. If however you choose to utilize one already manufactured, get some matching "real thing from a grocery which has similar or identical wrappers. Or take the false one and replace its wrapper from a real can. Further, make sure the weight of the container is accurate to touch and does not rattle. This is a more recent place where thieves are looking for stashed goods.
The bottom of potted plants is still excellent--both real plants and imitations. Cover the surface with mulch or moss to remove appearance of any tampering.
An excellent place for storage but also often checked, are heater and air-conditioner vents. If you use this storage area, make sure it is time consuming to remove the grates.
An excellent place is in a non-appealing garment such as a fairly heavy coat whereby you can stash in the lining and garment hems but is not appealing as a theft item.
If you have an attic or basement, you have a gold mine of storage places--within a box of more undesirable Christmas ornaments or tid-bits of saved ribbons and papers. Within the house insulation itself (but mark the location well with a sketched map).
Inside of books which have been altered to have a center cavity. When you utilize this method then use glue or something along the pages so that if they are pulled from the shelves the pages won't open. This is also a place where thieves search but if there are a great many books they will simply dump them on the floor and not research each one.
For things you are hiding for the future and will not be using regularly or for quite a while, then use another method. If you do not own property but a trusted friend, parent, child or relative does, use the property itself. You can stash almost anything outside in the earth itself. Pick good flower beds and planter boxes. Either have a false space built in or simply bury in well wrapped packages or containers in strategic places. Again, you will have to map the location to exactness. FURTHER, YOU WILL NEED TO TRUST ANOTHER PARTY WITH A COPY OF A MAP SO THAT IF ANYTHING HAPPENS TO YOU THE ITEMS ARE NOT LOST FOREVER. IT IS VERY COMFORTING TO HAVE A SACK OF GOLD COINS PLANTED RIGHT ALONG WITH THAT FAVORITE ROSE BUSH OR ALONG-SIDE YOUR NEW JUNIPER SHRUB. HOW ABOUT A FEW FRUIT TREES? HOW ABOUT A LOOSE BRICK IN YOUR PATIO FLOOR? YOU CAN BE MOST CREATIVE.
EVERYTHING CARRIES RISK OF LOSS--BUT SO DOES YOUR BANK! YOU WILL BE PERFECTLY SAFE IF YOU TAKE PRECAUTIONS.
THE REALLY IMPORTANT POINT
If the IRS or FBI, etc., come in to rip your house apart looking for your stashed things, they are very apt to find them if they are inside the dwelling. It is much harder if you have a fair sized property if you place the items outside. However, the most important thing is to become invisible to the system so that you appear to be hiding nothing in the fishbowl. Take your precautions now to begin to lose yourself so that there would be no reason to ransack your home looking for anything.
RIGHT NOW!
If you hold a lot of money in the bank, right now go open several accounts and spread the money around. Next, go begin to withdraw cash in amounts suitable for non-reporting. Get money in smaller denominations--you can handle $50s and $100s if you plan to move them out (i.e., purchase savings bonds, gold, etc.) instantly--like the same afternoon.
Take the cash and set aside enough for, say, six months of expenses--keep in cash and hide it. The money exchange will come but there probably will be limits of exchange without reporting--probably not more than a $1,000 however. Exchange of cash in an amount over $1,000 will almost assuredly have a reporting form which will get all your privacy information.
Now, take that cash and go get T-Bills (THROUGH A CORPORATION SO THAT YOU DO NOT HAVE TO REPORT IT), Savings Bonds and as many gold coins as you can and sit tight.
As soon as the money exchange is over and a value is placed you can re-sell the gold you do not wish to hold and replace it with an abundance of "cash'--they won't screw around with it again for a little while.
Go ahead then and exchange your cash in the most private manner possible which keeps you off the reporting roster.
I TELL YOU AGAIN: THE INTENT IS TO INTRODUCE THE ENTIRE MONEY EXCHANGE SYSTEM AT ONCE. THEY ARE HAVING TROUBLE GETTING IT IN PLACE BUT THAT IS THE PLAN SO THAT YOU ARE TRAPPED IN THE MIDDLE. LESS THAN 12% OF ALL DRUG MONIES ARE IN LARGE BILLS--MOST CASH FROM DRUG DEALERS IS IN $10s AND $20s! THE DRUG KING-PINS HAVE BEEN GIVEN AMPLE WARNING AND THEY HAVE ALREADY SET UP THEIR BANKING ACCORDINGLY. THIS SCHEME WILL CATCH SOME OF THE YOUNG AND UNSOPHISTICATED DRUG DEALERS AND LOCAL SALES GO‑BETWEENS BUT THAT IS ALL. THE SYSTEM IS DESIGNED TO CATCH YOU!
YOU MAY WELL FIND, SINCE THE WORLD BANKING SATELLITE SYSTEM WILL BE WORKABLE BY THE FIRST OF THE YEAR, THAT YOU WILL ONLY HAVE AN OPTION TO OBTAIN A PORTION OF YOUR CASH EXCHANGE FOR CASH--YOU MAY BE REQUIRED TO ACCEPT THE REST OF THE EXCHANGE VALUE IN DEBIT PAPER WHEREBY YOU WILL GET YOUR DEBIT CARD, ETC.
GET YOURSELVES ONE OR MORE CORPORATIONS AND GET YOUR ASSETS MOVED INSTANTLY OUT OF YOUR PERSONAL NAME AND NUMBER. THIS THRUST IS TO GET YOU PRIVATE CITIZENS AND THEY WILL DEAL WITH THE CORPORATIONS LATER! DELAYS IN ACTION ARE GOING TO END UP VERY, VERY COSTLY TO YOU.
Read this journal carefully but not slowly for you have very, very little time left to take action. You can get a Nevada Corporation in 24 hours if you have to. You might think "expensive", etc.; if you have problems with any of the aforementioned situations, you had better spend your reserves on what will save you the most as you move along. Your options will be reduced by major proportions and it will be too late to take action. You will not likely get second and third chances. A corporation will not cost you nearly as much as a bad blunder and/or the expenses involved in litigation and attorney fees. Think carefully but quickly. You can also turn right around and re-sell your corporation if you find the "deal" is not to your taste!
Now let us "think" privacy and I will remind you of some several topics covered herein.
Secure the doors and windows of your home against uninvited intrusion.
Send sensitive correspondence without a return address from a mail drop box.
Rent a post office box, possibly from a private company, and use it for all but routine correspondence--no mail coming to your address can be equally attention getting.
Put the box number on your checks, if you have any address at all on your checks.
Use an assumed name in correspondence that you wish to keep private.
Obtain a copy of your credit history and correct any inaccuracies.
Obtain an unlisted phone number. Do it the "smart" way as described in this journal.
Use public telephones for calls that you wish to keep private.
Get a corporation and set up your estate therein. OLD CORPORATIONS NEVER DIE--THEY JUST GET A NEW PRESIDENT AND GO RIGHT ON WORKING!
Open a non-interest-paying account at your bank without disclosing your social security number.
Withdraw smaller quantities of cash from several accounts in several banks when you want to make a large cash purchase.
Pay cash for purchases that you want to keep private.
Ask your accountant and attorney to return any non-routine documents in their possession relating to you.
Sell any vehicles that flaunt your wealth or success or be prepared for audits and attention.
Get out of debt as quickly as you can--even if it requires bankruptcy--there are excellent assets gained by filing bankruptcy if you can minimize all assets to that point. You drop through right quickly if you are bankrupt. No-body--not even the IRS--comes to get money from a turnip skin.
KEEP YOUR MOUTH SHUT. DO NOT DISCUSS PRIVATE MATTERS, ESPECIALLY WITH CASUAL ACQUAINTANCES.
Open bank accounts in at least two foreign countries or utilize other methods of diversifying as per the journal instructions.
SOURCES AND REFERENCES
We are going to give you a nice list of resources in the appendix. However, there are several publications which can be recommended.
These three firms (listed below) sell specialty books on this subject matter. DO NOT RUSH OUT THERE AND GET ON THEIR MAILING LISTS DIRECTLY. However, you should get their catalogues. You can go to another town from where you live and are unknown and get them through a bookstore. You would have to place them on order--pay in cash and leave no phone number. Call the store until the books arrive. This procedure is troublesome but following the publication of this journal you will find more attention paid to ones who purchase these types of catalogues. The surveillance is going to tighten immediately as the money change-over arrives and the money situation worsens. It is not because of this journal--it will simply be the up and coming method of tracking you.
If you will not make such an effort, then I suggest you rent a mail-drop. Use an alias, have the catalogues and then the books, sent to the mail drop who will then re-mail it to you, care of your local post office box, or much better, your private postal service box. This may double the price of the books. So what? You will NEVER obtain privacy free of charge--that is a guarantee. You can team up with a secret buddy system to get a mail drop to get started.
Here are the above mentioned sources:
Loompanics, Unlimited, P.O. Box 1197, Fort Townsend, WA 98366 (books) Paladin Press, P.O. Box 1307, Boulder, CO 80306 (books)
Eden Press Privacy Catalog, P.O. Box 8410, Fountain Valley, CA 92728
You can research these places to see if they have phone numbers (from a pay phone). If there is a charge you can send a money order in the proper amount and save at least a week to ten days--that is very important right now.
If you don't know about Mail Drops, etc., then here are a few firms and you can contact them for the nearest location of service.
U.S.:
Mail Boxes, Etc., USA
5555 Oberlin Drive
San Diego, CA 92121
(619) 452-1553
Pak-Mail Centers of America
10555 E. Dartmouth Ave., Suite 360
Aurora, CO 80014
(800) 752-3500 or (303) 752-3500
There are plenty of others if you check your phone books.
Canadian:
Wayne Budd, Inc.
Budd Building
El Dorado, Ontario
CANADA KOK 1 Y0
Ottawa Forwarding Service
Box 793 Station B
Ottawa, Ontario
CANADA KIP 5P8
TO SUMMARIZE IN GENERALITIES
The U.S. is in the immediate process of doing something already set up by Australia. In Australia it is called the AustraliaCard and is a system of computerized monitoring of all Australians. The monitoring system is being set up despite the fact that the Australian parliament has not yet even passed the enabling legislation. The U.S. is in the immediate process of doing a very similar thing by means of the Social Security card. To make the system work, every citizen must be issued a card. There must be no cracks in the system for people to fall through.
Most of you already have a number and a card, therefore, you are already in the system for all practical purposes. So the only recourse you have is to simply have nothing that is worth anything show up alongside that number. How private you become and/or remain is up to how well you manage your affairs.
To deduct children, etc., the law will have babies given a Social Security number at birth right along-side the birth certificate--in fact it will eventually be integrated into the birth certificate. That way the Selective Service military agency gets the information immediately.
The Social Security number is now the "universal number" and already some states use it for driver's licenses.
I am going to quote from a list as put forth by Dr. Gary North in his publication. It is a repeat but worth repetition:
"Is there a way out of this tightening noose? Yes, but the ways are extremely costly.
"First you can break the law and establish false identities for yourself, including fake driver's licence, fake birth certificate, fake Social Security card. Second, sell services that are not normally tax-deductible, such as home repairs or auto repairs, and insist on payment in cash. Third, don't report your income to any government agency. Fourth, never open a bank account. Fifth, sell your house. Sixth, when you get a phone or other utilities in your apartment or rental, use a fake name. Seventh, be prepared to make large cash deposits to the utility companies, since you will have no credit record. Be prepared to move without getting a refund, since they will refund your money by check. Eighth, cancel all subscriptions that are in your real name. Ninth, leave no forwarding address with the Post Office. Tenth, use mail drop services for more of your mail. Eleventh, get a passport. Twelfth, convert all your liquid assets to cash, slowly, and then go on a Caribbean cruise. Thirteenth, get off the boat in a tax haven filled with banks, take your cash in a sack, and open an account at a bank that has no U.S. branches. Be forewarned: there is no FDIC insurance in such banks. Fourteenth, set up a foreign corporation or trust, and tell your banker (face to face) to transfer your money into it. This is illegal, if you don't report it to the IRS. Fifteenth, have the trust buy property in a country that has no extradition treaty with the U.S. Brazil is one. Sixteenth, be prepared to live as a visible foreigner for the rest of your life, if you have to flee the U.S. Seventeenth, be prepared to cut off all future contact with your relatives.
"Most people will not even consider going to all this bother but ones have utilized these methods and now live in complete privacy--but be prepared to make the necessary change in location. The facts are that you can disappear so completely that even your family and friends cannot locate you--judge your own situation most carefully. Most ones do not need such drastic measures.
"It does not require great expense or untold effort to take a few low-cost steps to protect yourselves against those threats that do seem to be high on some bureaucrat's list or recommended policies. Do take steps to reduce the likelihood that any one government decision can separate you from your capital and your future. It will get increasingly difficult and much more expensive to take such steps so the time to act is right now. You may end up not being allowed the method to cure the problems which could be solved right now by that proverbial 'ounce of prevention'".
CONSIDER THE VALUE ADDED TAX
Even with incorporation you can't escape entirely--you can but your company may be socked with the "VAT". Examine this one for a minute. We are going to talk of real businesses. This insidious tax deals mostly with immigration problems.
This taxes illegal immigrants who work the "midnight shifts" all day long, where income taxes and Social Security taxes don't. You cannot stop illegal immigration from Mexico; you can however, at least tax it with sales taxes. The Feds will not forever allow the nation's southern border states to monopolize these sales tax revenue benefits. You will see a push for a VAT early on now.
Businesses cannot "pass on all the increased costs" of a VAT to consumers. That they can do so is a widely held myth, even among your most conservative. If business could raise selling prices every time their costs go up, every business would raise its prices today, before costs go up. Costs do not determine pricing in actuality; supply and demand determine pricing. A few firms may be able to pass on increased costs, depending on future consumer demand; most will not be able to do so--people will simply stop buying the product.
MORE SERIOUS THAN AT FIRST GLANCE
A VAT is in fact a tax on most owners of existing capital or businesses. It is not simply a tax on consumers although it is also that in disguise. Consumers lose greatly when such a tax is imposed, and they are forced to pass on part of this loss to the owners of business that they normally do business with. They stop buying as many goods and services because they have less after-tax income. Other consumers win, of course: the ones who get access to the newly redistributed money. Those people who own corporate shares and small businesses will be the primary losers if and when this tax is imposed, unless they normally sell to the Federal government or to those who are the recipients of Federal handouts. An enormous one-time shift of wealth will take place.
This wealth-redistribution process is hardly ever discussed--especially by economists and politicians--and few voters even begin to understand it. You will be very wise to hold any corporate shares as bearer shares, especially once the VAT starts being debated, unless the Federal Reserve is pumping up the economy so fast that the economy is booming. Be most careful how you hold and/or distribute corporate shares in your new corporations--there are ways to protect yourselves but NOT AFTER the error has been made and registered.
Watch for the following: The government allows loopholes in its schemes for a period of time--this allows the "insiders" to get squared around properly. Then, when lots of people start to take advantage of them, the government closes them. That will continue as long as there is government.
Many of mine own ones urged me not to do them in by writing this journal because with the attention and the "answers" it causes attention focus and loopholes will close.
You, as a citizenry, however, are in such trouble that you must have whatever help is available--it does take the government a while to respond and perhaps you will already be set and prepared. I can only lead you to the banquet, I cannot force you to eat the meal laid out for you.
The fewer of you who utilize this information the better for the ones who do--it is most surely up to you and your own free-will choices.
IN CLOSING
Before I close this journal I want to remind you of a few other things which might allow a better understanding of your situation.
You are headed for massive depression. The social and political upheaval will be as devastating as your Civil War days.
Sometime during the '90s, the liberal Elite who now control the media, the banks, education, Washington, and the arts and entertainment will suddenly be blown out of the water as the world they made explodes in their faces. These are the accepted leaders--the true culprits who orchestrated the catastrophe will be sitting in powerville pulling your slave shackles.
Within a limited period of time, the central planners who determine the agenda in the U.S. will be rocked by a series of crises--all after it is too late to counter them:
There will be an abrupt refusal of investors to continue financing the snowballing national debt.
The nearly-overnight closure of well over a 1,000 of your S&Ls and banks--all remaining ones will come totally under the control of the big eleven.
There will be rapid growth of inflation to levels unheard of in the U.S. and yet it will be completely deflationary in fundamental basis.
There will be sudden realization that the Soviet military has put you at an extreme and dangerous disadvantage--in spite of all this glasnost "stuff" and games.
There will be tremendous increase in terrorist incidents by Latin Communists in the Southwest U.S. and all through the Southern continent countries.
There will be a revolt of a third-world debtors' cartel--and subsequently--disaster.
One good point--there will be the emergence of organized voter resistance to mandatory Social Security. WHICH REMINDS ME--STAY OFF, OR GET OFF, THE VOTER ROLES I AM SORRY--YOUR VOTE IS NOT AS PRECIOUS AS YOUR PRIVACY IF YOU INTEND TO BE ABLE TO ASSIST THROUGH THIS TIME OF PROBLEMS.
There will be a rapid jump in unemployment. There will come a "temporary" income tax surcharge to cover these emergencies--which will never be removed. There will come a necessary shift from public to private education. There will be a number of flip-flops and buy-outs in the news and entertainment media, resulting in massive programming changes. There will be a quick rise of political forces dedicated to "throwing the rascals out".
In response to these crises, the nation's power Elite will try to engineer a series of huge increases in government control and programs. Taking advantage of the cries for action, they will begin to lay the foundations for their long-dreamed-of "new world order". (That is what the Trilateral Commission was explicitly set up to do).
Their plans will backfire spectacularly if you hold together. The public response to their power grabs will be a revolt that borders on violence--if you have not allowed all your defense to be removed from you. You will further witness the greatest battle of "beliefs" since the early Christian took on the Roman Empire--let us make sure they are founded in Truth this go-round!
They won't count the bodies for you every day on T.V. but you will see thousands of failed institutions: government agencies and programs, media, many public schools, political movements, money collection/distribution channels, investment vehicles, international alliances, some churches, philosophies, charities, corporations--even whole industries. YOU MUST HAVE BETTER SYSTEMS AND METHODS TO COME UP THROUGH THE DEATH AND DESTRUCTION.
REMEMBER, IT IS THROUGH THE TRYING TIMES THAT CHANGE CAN COME TO BENEFIT THE WHOLE OF MAN.
THE HOUSE OF CARDS HAS TO FALL
The house has to crumble because termites have eaten the foundation in so many various places that it cannot stand under the new pressures and weights.
Let us discuss just one place and the debt--Latin America.
On February 21, 1987, Brazil suspended all interest payments on its over $108 billion debt to the international banking community (the vast bulk of it owed to U.S. banks). President Jose' Sarney said he was buying time, "To avoid political instability, recession, unemployment and social crisis". That, and also to stress their need for a fresh batch of loans. Brazil has not even touched the principal of the debt since 1983--and basically, Mexico never has.
On the same day, Argentina--while they had everyone's attention--threatened to suspend interest payments on their debt of $53 billion unless the creditor banks coughed up another $2.15 billion in immediate loans.
Meanwhile back at the ranch in Venezuela they are laying-low while negotiations continue with banks over their $32 billion tab. $108 billion? $53 billion? $32 billion--and Mexico with $96 billion. Even to a space cadet that seems like a LOT of money!
Is it? No, it is merely a drop in the bucket. At the end of 1987, total debt of the capital-importing developing nations approached $1 trillion, and this according to the UN (World Economic Survey, 1988). Soviet bloc countries owed an additional $117 billion. And that was before this nice new arrangement with Poland and Hungary and, and, and--! The bucket seems to have lost its entire bottom!
Lets round off to $1.1 or 2 trillion, to be in the neighborhood of accuracy. Now THAT is A LOT OF MONEY!
What is worse for you, it isn't ever going to return to you. In 1983 (your last "good" year), you received a net $17 billion in payments. In 1985 you received $1.4 billion (interest and principle). It got a little better press in 1986 but little improvement in payments.
Deadbeats? The facts are that these poor nations have no way to repay the loans even if they wanted to do so.
These massive debts dwarf these little countries already in trouble. They have already signed over all their resources to collateralize the debts in the first place and there is nowhere to rustle up the cash.
DEAR ONES--READ SPIRAL TO ECONOMIC DISASTER--IT WAS PLANNED THIS WAY! THE BIG ELITE HAVE GOTCHA!
You might ask, "Won't the American public rise up in wrath over this?" NO! Who is going to tell you? The liberal media have a stranglehold on information in this country--(Oh, and you thought "freedom of the press"). In order to get the simple, basic facts on what is happening today, you have to read conservative newsletters--if you can locate some good ones whose brave writers have dared and risked their very lives to bring you the truth. Your country is no better off but we will get to that in a minute, let us stick to debtor Latin countries for now.
Simply put, the banks and the debtors are locked in a deadly embrace. Imagine nations having to borrow more money just to make their interest payments--so what is different in the good old U.S.A. citizenry budgets?
WILL THEY DEFAULT?
Well, most certainly! And Mr. Castro is running around all over the South American Continent singing the first line of Mrs. Reagan's song--JUST SAY NO! Now these weary and helpless politicians are starting to pay attention to him.
More loans to cover interest---a looming debtors' cartel---no hope of repayment. Gee, the banks must be just frantic about all that money going down the tubes, right? WRONG!
You see, it is not their money at risk. It is your money! Oh, you left Bank of America or Security Pacific years ago? It does not matter--you are still a creditor even if you are not one of their depositors!
Thanks to a little-known, small print piece of legislation called the Monetary Control Act of 1980, the Federal Reserve System can purchase any bad debt and use it as the basis of issuing good money. What does that mean?
When the major defaults come, and they will, right on expected cue--the Fed will merrily swap T-bills for worthless Third-World bonds. Paying book value for them, of course. Dollar for dollar--at that point hundreds of billions of dollars will be added to the national debt overnight.
Where will your dear old Uncle turn next--right back to you, of course. The banks will collect all that nice collateral in the form of resources along with your taxes and live happily ever after off your carcass and the carcass of the world.
I am weary and my scribe is most fatigued therefore, I will leave you with a shocker of your own debt status:
Declared Dept $2.11 TRILLION
Social Security 5.80 TRILLION
Civil Service Pensions 500 BILLION
Military Retirement 500 BILLION
OTHER: Medicare, Medicaid 1.20 TRILLION-PLUS
TOTAL FEDERAL DEBT $10 TRILLION-PLUS
THE LITTLE (PLUS) AT THE END OF THE $10 TRILLION MEANS THE ACTUAL FIGURE COULD EASILY BALLOON TO $20 TRILLION OR MORE. THE DEBT IN YOUR COUNTRY IS SO OPEN-ENDED, IT IS LITERALLY INCALCULABLE!
Oh! What could this mean? Well, it surely is lucky for you that good old Mr. Gramm and Mr. Rudman made a law to force the government to balance everything out--right?
Woops, guess again. Congress had a lot of fun passing the law and talking tough for a while but the stark reality of funding a pork-barrel government has begun to hit home. And in the first years of the law, that pack of moral midgets in Washington hasn't even come close to meeting the target budget figures--no matter how much they pried and poked and rearranged all their numbers. Using as much "bookkeeping gimmickry" and "creative bookkeeping" as they can concoct they simply have no way to pull it off.
Per your Congressman Ted Weiss who summed it up quite well in the Los Angeles Times editorial of 3/9/87:
"Despite congressional efforts to comply with the law, the deficit goal for fiscal year 1986 was exceeded by $49 billion and the deficit target for fiscal year 1987 will be exceeded by $30 billion, according to preliminary estimates.
"Worse still, cost-cutting measures have relied heavily on bookkeeping gimmickry and the sale of government assets. These produce one-time savings but distort the decision-making process and often raise the deficit in subsequent years".
Where does this leave you? The truth is, Congress couldn't agree on a balanced budget to save their lives--probably not even if their votes depended on it. You can be sure however, that any repeal of the Gramm-Rudman will be handled most adroitly and even hailed as a great victory for bipartisan and effective government. The voting public will believe what they are told by "Blather" and the rest of the "mouths" and hope for the best.
You can hope all you want, but you can't hide. When the debt hits
$3 TRILLION--AND IT WILL SOON--INVESTORS WILL GET VERY, VERY JITTERY. In order to keep people like you buying T-bills and T-bonds, the government will have to pay you more interest. Perhaps 20% or even higher. Mr. Carter was forced to pay 16% during his budget crisis.
Consider this now--$3 trillion times 20% (conservative) is, I believe, about $600 billion a year. Just to break even. Not a cent for repaying the principle. Not a penny for defense, or Social Security, or roads, or welfare, or foreign aid or anything. ARE YOU SCARED YET, CHELAS?
The percentage of the national budget used to service the debt continues at around 15%, but is unlikely to remain there, given the imminence of economic recession and consequent increased deficit spending. YOU ARE, QUITE SIMPLY, ATTEMPTING TO RUN A WORLD CLASS NATION WITH BANANA REPUBLIC METHODS--THE MIGHTY U.S. OF A. HAS SLIPPED INTO THE ROLE OF THE LARGEST DEBTOR NATION IN THE WORLD! SO BE IT!
Your government is already choking on its own debt. You are the one caught at the bottom of the barrel--it has been masterfully orchestrated and executed!
Dharma, let us simply close this portion and conclude this journal. Please make the addition of the appendix and tomorrow, or later today, we shall write the INTRODUCTION!
WE BRING THIS INFORMATION TO YOU IN LOVE AND CONCERN FOR YOUR PLIGHT. YOU MAY DO WITH IT THAT WHICH YOU WILL. YOU HAVE PETITIONED FOR HELP AND INFORMATION--HERE IT IS. SO BE IT AND SELAH. I SALUTE YOU FOR YOUR COURAGE AND I APPRECIATE HAVING BEEN GIVEN THE OPPORTUNITY TO SERVE. I AM MOST HUMBLE TO HAVE BEEN PETITIONED.
GOD IS WITH YOU IN YOUR TIME OF TRAVAIL AND HE SENDS FORTH HIS MESSENGERS TO GIVE UNTO YOU THE ASSISTANCE FOR WHICH YOU ASK. PLEASE BE OPEN AND ALLOWING IN YOUR RECEIVING, FOR THE LOSER SHALL NOT BE OF THESE REALMS!
I TAKE MY LEAVE AS I CLOSE OF THIS JOURNAL AND MOVE ON TO ANOTHER. THANK YOU MOST INFINITELY, DHARMA. MY APPRECIATION IS GREAT FOR THE EFFORTS OF YOU ONES IN BEHALF OF YOUR FELLOW CITIZENS. MAY THE PATH BE LIGHTED UNTO YOUR FOOT-STEPS. SALU, SALU, SALU.
I AM GYEORGOS CERES HATONN, COMMANDER, I.G.F.F, SECTOR P.
Time to wake up--"We're out here"!
PJ 10APPENDIXREC #1 HATONNTHU., DEC. 7, 1989 7:30 A.M. YEAR 3, DAY 113
THU., DEC, 7, 1989THE FAMILY ESTATE CORPORATION
Hatonn present in radiance and in service.
As we spend our time buried in the journals I know that things are overlooked. Where are we with Ted Turner and Sipapu? Let us not allow that to fall between cracks--there must be some type of "formal" entry necessary.
Right off this morning we are going to do some "copy" work, Dharma. This will most surely suffice for "estate" planning. It is in the manual for all to see--that is, those who get the Corporations Manual.
THE ESTATE PLAN THAT NEVER DIES"LONG TERM CORPORATE PLANNING"
Long Term Corporate Planning is not just estate planning. Estate planning by itself is done in contemplation of death, and such planning has tax implications and interpretations by the IRS that simply don't apply here. When you have done your "Long Term Corporate Planning", then you have successfully accomplished a dynamic feat.
Why is this a dynamic feat? Because with your Long Term Corporate Planning little exists for a lawyer to do. Your estate isn't consumed by legal expenses or taxes. That is why some lawyers are not going to tell you how to take advantage of Long Term Corporate Planning. It is bad for their business.
The tax collectors certainly are not going to tell you because they won't be able to rip apart the results of your life's work with taxes.
What is the magic? Well let's face it, corporations are immortal (unless terminated by statute or by its corporate articles). Corporations do not cease to exist because one of their key people dies.
Here is Long Term Corporate Planning we suggest you consider. The sequence is important so follow closely. If you pass something you don't understand, you will never understand--go back and restudy until you do understand.
1: ESTABLISHING A CORPORATION WHICH WHEN FORMED IS WHAT IS CALLED A "CORPORATE SHELL" IT HAS NO ASSETS, NO LIABILITIES, AND ITS STOCK IS WORTHLESS AT THIS POINT.
2: CAUSE THE SALE OF ITS WORTHLESS (BECAUSE IT HAS NO ASSETS YET) STOCK FROM THE CORPORATION TO YOUR INVESTORS (HEIRS) AT ONE CENT ($.01) PER SHARE, DIVIDED BY THE PRORATED AMOUNTS YOU CHOOSE. SINCE THE STOCK HAS BEEN SOLD TO THEM, IT IS NOT A GIFT. ONE OBJECT OF ALL STOCK IS TO INCREASE IN VALUE OVER A PERIOD OF TIME. IF THE STOCK DOES INCREASE IN VALUE, THEN NOTHING WRONG, ILLEGAL, UNETHICAL OR STRANGE HAS OCCURRED.
3: FORM A LIMITED PARTNERSHIP WITH YOU AS GENERAL PARTNER AND YOUR HEIRS AS LIMITED PARTNERS. THE SOLE PURPOSE OF THIS LIMITED PARTNERSHIP IS TO HOLD THE STOCK OF THE CORPORATION YOU JUST FORMED. IN A LIMITED PARTNERSHIP THE GENERAL PARTNER(S) MANAGES THE BUSINESS AND THE LIMITED PARTNER(S) TAKE NO PART IN THE RUNNING OF IT. REMEMBER, THE BUSINESS OF THIS LIMITED PARTNERSHIP IS TO HOLD THE STOCK OF THE NEW CORPORATION. THIS MEANS THE GENERAL PARTNER (YOU) WILL VOTE THE STOCK AT THE ANNUAL STOCKHOLDERS MEETING.
All of the stockholders (you and your investors/heirs) put their newly acquired stock into the limited partnership. In return you become a 1% general partner and a 1% limited partner. Your investors/heirs become 98% limited partners. You, the general partner, manage the business. You vote the stock.
This limited partnership will have a set life. It will be in existence for a certain number of years. That number depends on you. Make the term of years long enough so that when the limited partnership ends, you either won't be around or if you are, you won't want to control the corporation. For example, the limited partnership may have a life or 30, 40 or 50 years. YOU MAKE THE DECISION.
THE LIMITED PARTNERSHIP CAN BE DRAWN UP SO THAT IT ENDS UPON THE DEATH OF ANY OF THE GENERAL PARTNERS. SO WHEN YOU DIE, THE LIMITED PARTNERSHIP TERMINATES AND THE OTHER PARTNERS (YOUR HEIRS) TAKE THEIR 98% OF THE STOCK IN THE CORPORATION AND GO HOME. ONLY YOUR 2% OF THE STOCK WILL GO THROUGH PROBATE AND HOPEFULLY YOUR ESTATE WILL BE SMALL ENOUGH, BECAUSE OF YOUR WISE PRIOR PLANNING, TO ELIMINATE ANY PROBLEMS.
Your heirs will now have the stock and own the company, but you, by virtue of your general partnership, have complete control of the corporation, its assets, its money, real estate--everything. You can sell these assets and pay yourself the money, or add to the assets, pay for any and all expenses, travel, medical, and so forth. You can do anything you want for as long as you live.
4: PUT YOUR ASSETS AND MONEY INTO THE CORPORATION. SOME SUGGESTED POSSIBILITIES AS TO HOW YOU MAY ACCOMPLISH THIS ARE AS FOLLOWS:
Sell the assets to the corporation in exchange for a demand promissory note to mature in 50 years or whatever term of time you deem appropriate. Take money out of the corporation any time you wish and mark it "to apply on promissory note". Word the note so that in the event of your demise, any sums remaining payable to you by the corporation under the note are automatically forgiven. We suggest the demand promissory note bear interest, probably at 12% simple interest per annum, and that the corporation pay you the interest when it becomes due. This will satisfy the IRS. Where does the corporation get the money to pay this interest? You are simply taking money out of one pocket and putting it into another.
It's true the interest received by you may be taxable, depending on your adjusted gross income...that is on your "taxable" income or, stated another way, on how good a manager you are.
Explore the possibility of putting your assets into the corporation as a "CAPITAL CONTRIBUTION". With just a little thought, innovation and ingenuity you will discover many other ways to transfer your assets into the corporation successfully. There, so much for getting the assets into the corporation.
When you put your assets into the corporation, the value of its stock increases, but there are no taxes until such time as dividends are paid by the corporation or the stock is sold. In both cases this is a matter over which you have complete control and for which you can adequately plan in advance to legally avoid taxes.
BOTTOM LINE
The bottom line is this: When you pass on to the Happy Haven in the Sky, your heirs already own all you want them to have. If you've ever thought of striking back from the Grave, here is your chance--This is almost like being the Executor or Executrix of your own will. Since your heirs already own your estate when you pass on, there is no transfer, no probate, no big taxes--no problems. It is all done--"The Happy Solution".
Also consider the possibility of taking from the corporation a contract in exchange for your services rendered: A life-time contract and guarantee that the corporation will provide for you, including all of your medical bills, convalescent care, and such other expenses and items as you may wish. (Be careful of possible tax consequences here--make sure you know your tax regulations). But with the difficulty of filing tax returns you probably already have a tax advisor--check with him.
With this plan you know what is going to happen to your loved ones when you pass on. Everything you have worked for, acquired, and have is going to the ones you wish it to go to. There won't be a long drawn-out probate case in court. You can have peace of mind. You don't have to worry about little or nothing existing for your heirs after all the legal fees, expenses, inheritance taxes and so forth are paid. What can take years of legal delay, astronomical expenses, waste and agony for the ones you love is accomplished by them at their stockholders meeting through the election of directors and officers (probably prearranged). The transition is smooth. Everything continues without interruption. You have the peace, joy, satisfaction and confidence of knowing that your loved ones have exactly what you intend for them to have.
What we are saying is this: Corporations never die, they just get a new president. Take advantage of this corporate immortality. Put what you have into a corporation and the corporation will live long past you to successfully distribute your assets to the people you wish to have them. This will eliminate the normal pitfalls of estate planning, probate and taxes.
Even though you utilize Long Term Corporate Planning, have a simple will to handle any loose ends that, for one reason or another, might not have gotten into the corporation. This will can be drawn up easily by yourself. You could will everything to the corporation which would make distribution consistent with your Long Term Capital Planning. This is an excellent idea as the "New Corporate President" can execute your wishes according to your instructions.
If the limited partnership sounds like what you have been looking for, the agreement probably needs to be prepared by an attorney as every agreement needs to be tailor-made to suit each particular case. Don't be misled by thinking this is obscure or difficult to accomplish and you can easily get references to attorneys that do this every day, several times a day.
You will please refrain from judging this document as inconclusive or confusing. There will be no-one on your placement foolish enough to even suggest you evade taxes. These are simply ideas for avoiding several things, such as frozen bank accounts, safe-deposit boxes, probate, exorbitant attorney and executor fees and, and, and. I SUGGEST YOU INVESTIGATE IT WITH SOMEONE (IN NEVADA) WHO KNOWS WHAT THEY ARE DOING--YOUR ATTORNEYS AND ACCOUNTANTS DO NOT KNOW WHAT THEY ARE TALKING ABOUT WHEN THEY DISCLAIM THIS AS VIABLE. FURTHERMORE, IT IS AGAINST THEIR OWN SELFISH INTERESTS TO AVOID USE OF THEIR SERVICES! HE WHO PLANS AND THINKS CLEARLY WILL HOLD ON TO THAT WHICH HE HAS GARNERED. IF YOU PLANT "ORDER" YE SHALL REAP "ORDER". NOT CHAOS!
PASSIVE INCOMEPERSONAL HOLDING CORPORATION TRAP
Many times, in the beginning, when you discuss corporations with some attorneys and accountants, there is weeping, wailing and gnashing of teeth regarding passive income and/or the personal holding corporation trap.
There is no problem here, ever, in any situation, IF THE STOCKHOLDER(S) INVOLVED HAVE ENOUGH BUSINESS SAVVY TO OPERATE A SIMPLE CORPORATE STRATEGY AS AND WHEN NECESSARY. IF YOU HAVE QUESTIONS AS TO UNDERSTANDING, PERHAPS YOUR BEST FRIEND WHO WORKS WITH YOU WILL UNDERSTAND--TALK IT OVER.
The strategy is simply one involving two corporations.
The solution is: Whenever you are approaching an undesirable percentage of passive income (60%), cause the "other" corporation to do some business with the passive income corporation, as is suggested in the Corporation Manual or additional inserts. Purchase certain items or services from or through it, in order to alter the passive income percentage. That way you are pumping active income into the corporation. Pump enough active income into the corporation so that it is no longer in danger of being construed as a personal holding corporation.
Let's say that the "other" corporation purchases $50,000 worth of items and services from the passive income corporation.
That means that $50,000 has gone from the "other" corporation to the passive income corporation.
Now the passive income corporation will purchase certain items and services from the "other" corporation.
The "other" corporation has its $50,000 back in the bank. The passive income corporation is no longer passive income, because it has had enough active business to alter that percentage.
The entire transaction was a wash. There are no other taxable consequences or liabilities.
Just a little ingenuity and effort and some legitimate business transactions provide a simple solution to what some consider an impossible problem. Always your corporate records must be errorless, impeccable and flawless.
Personal Holding Company status can arise only if at least 60% or more of the corporation's adjusted ordinary gross income (or passive income) is comprised basically of the following and related items: Dividends--interest--certain royalties--gains on sale of stock--income from personal service contracts--rents.
CORPORATE "POCKETBOOK" TAX REDUCED. The rate of tax charged on undistributed personal holding company (PHC) income was reduced from 50 percent to 28 percent to reflect the decrease in individual rates. COMPUTER SOFTWARE COMPANIES MAY BE EXEMPT FROM THE PHC TAX UNDER THE LAW.
Please, I have not changed my mind--put this information in this journal. I have no intentions of further describing these details in this journal. Information is adequately available. If it is beyond comprehension after a bit of studying then we will consider how we might arrange personal meetings for instruction or taped study courses, etc. All feedback will be gratefully appreciated. You will not easily make it through this massive time of change unless you work together in brotherhood--there are very few "breaks" left to you and I shall not damage their viability by causing undue attention nor litigation. You will utilize what is given unto you as suggestions or not, that is your choice; DO NOT JEOPARDIZE VIABILITY OF RESOURCES.
WISE UP!
From the July, 1986, issue of TAX HOTLINE:
HOT: Lower audit risk. Incorporating your business lowers the chance of an IRS audit. Reason: Only 1.12% of incorporated business that filled in Form 1120 with less than $100,000 income were audited in the latest year for which records are available.
Compare: 2.56% of unincorporated business with income of $25,000 to $100,000 were audited in the same year. It's worse for unincorporated as income gets higher. 5.3% of unincorporated business with income over $100,000 were audited. Incorporated audits for the same income barely rose from the 1.12% figure.
Further Hot: Corporations are notorious for less frequent auditing than are you targeted "individuals"--especially if you have any assets whatsoever. More Heat: If a corporation asks for an extension to file returns, they are not to be audited at all. The ratio drops because the system is geared to handle the load in a given time period for each fiscal year end. Returns showing up at odd times are most frequently simply put into the system with no particular attention.
TIME WAITS FOR NO MAN--GET PREPARED!
Enough, Dharma. Place these corporations documents at the beginning of the Appendix. Thank you for your labors, chela, as thy reward will be the service you render to your fellow-man during this magnificent time of change.
To my small group who bring these documents to the public--my unlimited admiration and appreciation. Your legacy in history shall be marked well. So be it. I remain in your service.
HATONN
