No. 112 – November 29, 2011


Definition: Money which has no intrinsic value and cannot be redeemed for specie or any commodity, but is made legal tender through government decree. All modern paper currencies are fiat money, as are most modern coins. The value of fiat money depends on the strength of the issuing country’s economy. Inflation results when a government issues too much fiat money.


As most readers know, I am a fairly simple thinker. For example, I like simple, straightforward concepts, “Maxims” if you will.

For example: “The best way to save money is not to spend it.” Pythagoras was a Greek mathematician who was credited with the discovery of the Pythagorean Theorem

The Theorem: The sum of the squares of the lengths of the sides of a right triangle is equal to the square of the length of the hypotenuse.


Why the hell am I talking about this confusing and complicated formula? And what the hell is a hypotenuse anyway?

SIMPLY put, you can determine the length of the hypotenuse (the DIAGONAL LINE) of a right triangle (90 degree triangle) by squaring the base and “back” line of the right triangle and adding them together and they will equal the diagonal length squared.

In other words A² + B² = C² or the Three, Four Five Triangle (3 4 5 Triangle). So 3×3 = 9; 4×4 = 16. Therefore, 9 + 16 = 25 (the two sides). And 5×5 = 25 (the diagonal/hypotenuse) thus proving the theory. A very simple formula – if it is explained in simple terms.

It is attributed to Pythagoras that he once said, “There is no more beautiful form than that of a right triangle.” He loved the simplicity – and in that simplicity lay his genius. There was another guy that, at a very early age, came up with one of the most simple formulas in the history of science – and changed the world forever: E= mc2 But that discussion is for another time. Back to the subject at hand.

So, I got to thinking the other day about fiat money – paper money that has no real intrinsic value – but is still used as “currency” or “legal tender.” Then it hit me right between the eyes. What are so many people doing right now – with paper money – that has no intrinsic value?

They are buying gold that HAS intrinsic value. What I don’t understand is, how can you buy something with intrinsic value, with simple paper? I realize the paper is “backed” by a government’s promise to pay, but doesn’t it seem awfully comical that an institution, such as the FED, can print fake money, CHARGE AN INTEREST RATE OF 4% when selling this FAKE MONEY to the United States Government, take the profits that are staggering (and NO ONE is talking about this), and then investing those profits in gold?

How is this even legally possible? The FED charges for “making” this money – but where does the 4% interest rate go? And who gets to keep it? Are these not very SIMPLE QUESTIONS? So I ask, is there any reader out there who can answer this question? I would be happy if I could get a definitive answer to this mental dilemma. And, as a side note, I would venture that EVERY FED MEMBER has substantial amounts of gold in their personal holdings – and that these holdings are somewhere offshore.

Another thing that puzzles me is the NAMES of ALL the FED Members. I mean, who are all the members of these boards? Where do they live? What do they do? How much are their personal holdings worth? Here is what I have:

Board Members:

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years. A member who serves a full term may not be reappointed. A member who completes an unexpired portion of a term may be reappointed. All terms end on their statutory date regardless of the date on which the member is sworn into office.

The Chairman and the Vice Chairman of the Board are named by the President from among the members and are confirmed by the Senate. They serve a term of four years. A member’s term on the Board is not affected by his or her status as Chairman or Vice Chairman. SOURCE:

But for some reason, all other information is somewhat murky.

Also, there are FED Board Regional Offices throughout the United States – with more members in attendance. And that information is even more difficult to come up with.

Why is this information so difficult to decipher – when these people are actually printing the fiat money that the whole country – and I would argue – the whole world – depends upon?

During my campaign in 2004, a lot of people got VERY angry when I asked questions such as these.

But I am still asking – and still nobody can give me a definitive answer as to who, what, where, when, how and why these people exist – and by what authority do they continue to control our everyday lives – and are STILL UNREGULATED – AND NOT AUDITED BY ANYONE?

These are simple questions – that WE THE PEOPLE deserve simple answers to.

And why is this so important?

Because, I predict, that the USA will – ultimately – have to bail out EUROPE with even more of our hard earned Tax Money.

It is these kind of shenanigans that galls the common man in the streets – and I am afraid that if this type of action persists – then there will be hell to pay – both at the ballot box – and perhaps in the streets of America itself.

It may already be too late. I sincerely hope I am wrong.


I also had another thought recently when considering other aspects of the United States Constitution and it, again, revolved around a very SIMPLE notion – that being the separation of Church and State.

I am sure, that most would gasp in horror in even assuming that I consider this concept in such a simple manner. But it IS actually very simple to interpret – if you can think in clear and concise terms.

As I read it, the Constitution upholds the idea of separation of CHURCH and State.

It does NOT say the separation of GOD and State.

It specifically relates to CHURCH and State. CHURCH signifying a stated, or understood RELIGION.

But I can find nowhere in the Constitution that says God is the same as Religion.

Let’s be honest here. All ORGANIZED RELIGIONS are nothing more than another form of business. Yet all ORGANIZED RELIGIONS are tax exempt due to their “non-profit religious nature.”

Let’s not even broach the topic of how rich the Catholic Church – or other RELIGIOUS institutions are. The money they take in – TAX FREE – would make your head spin.

My point here is that our Founding Fathers NEVER meant to confuse God – with ORGANIZED RELIGION.

There was never any attempt by them to exclude Him from the public square – as we have been led to believe by our misinformed, Liberal brethren associated with Political Correctness.

And if I am wrong – please show me SPECIFICALLY where it says GOD should not be included in the mix with the State.

Separation of Church and State meant ALL RELIGIONS must not be mixed with politics.

And with that notion, I wholeheartedly agree.

I shudder to think what our country would be like if WE THE PEOPLE had no belief whatsoever in ANY God.

Another simple maxim to remember is:

“God before Church.”


Which brings me to my final point today.

I would venture a guess that kids under the age of 18 cannot recite the Pledge of Allegiance ON DEMAND.


I pledge allegiance to the Flag
of the United States of America,
and to the Republic for which it stands:
one Nation under God, indivisible,
With Liberty and Justice for all.

– Last Revised June 14, 1954


Let’s take just two points and see if I can make some simple, common sense observation out of what is going on here.

Please notice, the third line:

“and to the Republic for which it stands”

It does not say, “and to the Democracy for which it stands”

Herewith is one of the oldest contentions between the Republicans (the Party of Lincoln – which the freed African slaves first belonged to) and the perpetual lie of the Democrats pretending to be Democratic because of the nature of their party name.

We are NOT a Democracy – we are a Republic.

A Democracy is legalized mob rule. A Republic is, by design, conducted by the rule of Law.

And now look at the fourth line:

“one Nation under God, indivisible”

Notice that it states one Nation (Nation is capitalized on purpose – read the Declaration of Independence for further proof of “old grammar” rules).

One Nation under God – but which God?

THAT is what the Founding Fathers DID NOT want to fight over – thus the Separation of CHURCH and State – not GOD and State.

ALL RELIGIONS – believe in some sort of God. And in doing so, and thinking along these lines, the Founding Fathers were ALL INCLUSIVE when it comes to God – but EXCLUSIVE with regard to ONE ORGANIZED STATE RELIGION.

The fourth line DOES NOT say one Nation under Jesus, Moses, Mohammed, Buddha, or any other religious personage – but ONE GOD – INDIVISIBLE – with Liberty and Justice for all.

To me, that rendering of the separation of Church and State is very simply.

Probably too simple for most people to even fathom.

“The Cosmos is the purest form of complex simplicity.”

It is pretty simple. All you have to do is look – and you will see.

And, yes, I realize that the Pledge was NOT mandated by the Constitution, nor the Founding Fathers. It was first devised in 1892, took on many revisions and finally ended up with the one we have today.


Today, I would like to continue with the the United States Constitution, picking up from Section 7. My apologies for not doing this earlier, but I had some Special Edition American Telegraphs that were time related and could not wait.

I hope you will continue to enjoy one of the greatest documents ever conceived by man – for the freedom of WE THE PEOPLE.

Section. 7. All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.

Every Bill which shall have passed the House of Representatives and the Senate, shall, before it become a Law, be presented to the President of the United States;[2] If he approve he shall sign it, but if not he shall return it, with his Objections to that House in which it shall have originated, who shall enter the Objections at large on their Journal, and proceed to reconsider it. If after such Reconsideration two thirds of that House shall agree to pass the Bill, it shall be sent, together with the Objections, to the other House, by which it shall likewise be reconsidered, and if approved by two thirds of that House, it shall become a Law. But in all such Cases the Votes of both Houses shall be determined by yeas and Nays, and the Names of the Persons voting for and against the Bill shall be entered on the Journal of each House respectively. If any Bill shall not be returned by the President within ten Days (Sundays excepted) after it shall have been presented to him, the Same shall be a Law, in like Manner as if he had signed it, unless the Congress by their Adjournment prevent its Return, in which Case it shall not be a Law.

Every Order, Resolution, or Vote to which the Concurrence of the Senate and House of Representatives may be necessary (except on a question of Adjournment) shall be presented to the President of the United States; and before the Same shall take Effect, shall be approved by him, or being disapproved by him, shall be repassed by two thirds of the Senate and House of Representatives, according to the Rules and Limitations prescribed in the Case of a Bill.

Section. 8. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow Money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

To establish Post Offices and post Roads;

To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

To constitute Tribunals inferior to the supreme Court;

To define and punish Piracies and Felonies committed on the high Seas, and Offences against the Law of Nations;

To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water;

To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;

To provide and maintain a Navy;

To make Rules for the Government and Regulation of the land and naval Forces;

To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;

To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;

To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the Acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings; — And

To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

Section. 9. The Migration or Importation of such Persons as any of the States now existing shall think proper to admit, shall not be prohibited by the Congress prior to the Year one thousand eight hundred and eight, but a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person.

The Privilege of the Writ of Habeas Corpus shall not be suspended, unless when in Cases of Rebellion or Invasion the public Safety may require it.

No Bill of Attainder or ex post facto Law shall be passed.

No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.

No Tax or Duty shall be laid on Articles exported from any State.

No Preference shall be given by any Regulation of Commerce or Revenue to the Ports of one State over those of another; nor shall Vessels bound to, or from, one State, be obliged to enter, clear, or pay Duties in another.

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.

No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.


Mark Twain is 176 years old today. I gathered these 10 Maxims from an Internet article – but misplaced (lost) the source, so my apologies for that.

However, I still wanted to show you 10 of his most treasured Maxims according to that Internet article.

I hope you enjoy them.

1. A recipe for contentment

“Good friends, good books and a sleepy conscience: this is the ideal life.”

2. True wisdom

“It is better to keep your mouth shut and appear stupid than to open it and remove all doubt.”

3. Reading habits

“The man who does not read good books has no advantage over the man who can’t read them.”

4. Success

“To succeed in life, you need two things: ignorance and confidence.”

5. Bravery

“It is curious that physical courage should be so common in the world and moral courage so rare.”

6. Procrastination

“Never put off till tomorrow what you can do the day after tomorrow.”

7. Progress

“Life would be infinitely happier if we could only be born at the age of eighty and gradually approach eighteen.”

8. Risk-taking

“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.

9. Good editing

“A successful book is not made of what is in it, but what is left out of it.”

10. Life

“Let us endeavor so to live that when we come to die even the undertaker will be sorry.”


As is the case with so many of my great readers, this little clip was sent to me by an American Telegraph subscriber. I can’t thank you all enough for your help and generous submissions. Without your help, I simply could not keep going.

Click on the link below to see how a Marine reacts and his “Request.” I have not checked the authenticity – but whatever the case is – the point is well taken.

Semper (Sempre) Fi

Many thanks, Dick Bachert.

Until next time, keep thinking positive, and remember 2012.

Hope for Change!

Best wishes,

Lawrence Klepinger


Add a Comment




6 Responses to “No. 112 – November 29, 2011”

  • John Says:

    Another fact filled commentary and has great question and thoughts.

    Following some of the links on the FED Reserve website, I came across the following statement. Makes one think as you are trying to do.

    “The amount of currency in circulation depends on the public’s demand for currency. Domestic demand largely results from the use of currency in transactions and is influenced primarily by prices for goods and services, income levels, and the availability of alternative payment methods. Domestic demand for currency, however, accounts for only part of the total demand. Foreign demand is influenced primarily by the political and economic uncertainties associated with certain foreign currencies. Recent estimates show that between one-half and two-thirds of the value of U.S. currency in circulation is held abroad. Some residents of foreign countries hold dollars as a store of value, while others use it as a medium of exchange.”

    Who really controls the US Funds to keep the majority in our American hands. Just remember this, when they found Saddam, he had truck loads of US currency.

  • Dick Bachert Says:

    Thanks for the mention. I’m certain it will get me on a few more of the Just Us Dept.’s round-up lists. Now ask me if I give a damn! 🙂
    Re. your learned discussion of fiat money.
    The Founders arranged the Constitution in such a way that the STATES would prohibit the evils of unbacked paper money. The states — which GAVE BIRTH to the central government and granted it limited and clearly defined powers under the Constitution — have allowed the child to become the parent and the result is the mess we now face.
    So as to not consume valuable bandwidth, I would refer those interested in helping return us to monetary sanity to visit the website here:
    Nearly all the material found there is the result of research by my late friend and patriot, Tupper Saussy.
    When then President LBJ was asked why he supported removing the precious metal backing to the currency, he was reported to have remarked “Why gold and silver are TOO VALUABLE TO BE USED AS MONEY.”
    Gee, I guess LBJ didn’t know that money was SUPPOSED to have real value. The man was a genius.

  • Michael Kruse Says:

    The stuff on the Fed is all very interesting, but when you wander on to American Constitutional History, Larry, you go all to pot:

    “One Nation under God – but which God?
    THAT is what the Founding Fathers DID NOT want to fight over – thus the Separation of CHURCH and State – not GOD and State.”

    I can’t believe you don’t know that the phrase “under God” was added in 1954 in a spirit of “we’re not atheist pinko commies.” You cannot infer ANYTHING about the intentions of the Founding Fathers from the Pledge of Allegiance.

    “ALL RELIGIONS – believe in some sort of God. And in doing so, and thinking along these lines, the Founding Fathers were ALL INCLUSIVE when it comes to God – but EXCLUSIVE with regard to ONE ORGANIZED STATE RELIGION.”

    The first sentence is flat out wrong. Many Buddhists reject belief in God. One devout Buddhist Japanese I knew once observed, “The Western belief in God seems, frankly, childish to us Buddhists.”

    As for the Founding Fathers — I repeat, you can infer nothing about their beliefs from the Pledge as it was (first) composed long after they were all dead (to wit, in 1892).

    “The fourth line DOES NOT say one Nation under Jesus, Moses, Mohammed, Buddha, or any other religious personage – but ONE GOD – INDIVISIBLE – with Liberty and Justice for all.”

    No, it originally said, “one nation, indivisible”, until “under God” was inserted in 1954 — and not by the Founding Fathers. Here is the 1892 original:

    “I pledge allegiance to my flag and the republic for which it stands: one nation indivisible with liberty and justice for all.”

    And, btw, the United States happens to be both a Republic and a Representative Democracy. In fact, if one consults, a republic is…

    “a state in which the supreme power rests in the body of citizens entitled to vote and is exercised by representatives chosen directly or indirectly by them.
    2. any body of persons viewed as a commonwealth.
    3. a state in which the head of government is not a monarch or other hereditary head of state.”

    Golly gosh! Number 1 IS a representative democracy! Notice that there is no mention here of “law”.

    I guess things can be as simple as you like if you just keep making them up!

  • joe winstead Says:

    Hello Larry-

    Thanks for the much needed rehash of Algebra I, although soft curves work better for me than right angles, but what the heck.

    Our good friend Pythagoras also was quoted:

    “Do not say a little in many words but a great deal in a few. ”


  • Larry Stuler Says:

    Hi Larry,
    I haven’t been publishing anything on my Blog ( for over a year now as I was tied up in a couple of federal court cases. Although I am still trying to get the government to actually do something that it hates – obeying the law – I have just returned to publishing today.
    This concerns the FED. Everyone seems to understand that the bankers have control over the federal government, but until now no one has followed the trail.
    We Americans fought for our independence against Great Britain. The banking center of the world is in London. Great Britain never quit trying to collect its taxes on the colonies even though America won the American Revolution. So Great Britain sent in its bankers to undermine America.
    What I have written is fully documented by the United States Code (U.S.C.) and the Code of Federal Regulations (C.F.R.). Most Americans believe that the federal government is trashing the Constitution. Yet all laws (statutes) must flow from the jurisdiction granted by the Constitution.
    The federal government is now a bankrupt corporation – title 11 U.S.C., “Bankruptcy”, is implemented by title 11 C.F.R., “Federal elections”. We are simply electing a bankruptcy “administration”. The apparent unconstitutional actions of the federal government are actually within the jurisdiction of foreign commerce. We Americans are now being treated as “U.S. citizens” – foreigners. A “U.S. citizen” is defined as a person born in one of the States who then establishes a residence in a U.S. possession and, further, acquires U.S. possession citizenship (see 26 CFR 25.2501-1(c) for the actual example). The U.S. possessions are treated as foreign countries in the Internal Revenue Code. That’s what the birth certificate is all about. The “U.S. citizen” is the 14th Amendment citizen.
    I have previously commented on your articles. I am the author of the Social Security Scam. The Form “SS-5” (applying for a S.S.#) is actually a federal employment form. The definition of “taxpayer” is a member of the Merchant Marine (26 CFR 2.1-1(a)(5)). During the War of 1812 Great Britain was impressing our Merchant Marine into service in their navy. The Social Security Scam is continuing that impressment.
    I have just now posted my latest Blog article – “The Bankers’ Blueprint to Destroy American Sovereignty” (Go to for the undisclosed history of this country).
    I have hesitated to bring this to the public, but the actions of the FED must be exposed in front of as many people as possible. The audit earlier this year exposed that $16 trillion dollars were “lent” to banks around the world. This insanity must stop. – Larry Stuler

  • Keith Baber Says:

    It’s simple, the money to pay the interest charge does not get printed.
    So if it does not get printed, there’s no way to pay the interest. However you could print more money charge interest on that then pay the interest on the first printing. But then were does the money come from to pay the interest charge on the secound printing — on and on it goes.