Creating a Secondary Economy

on . Posted in Articles by Brent Johnson

by Brent Johnson

One of the greatest obstacles faced by those who stand for the principles of truth, justice, and freedom, when "recruiting" people to stand on the side of liberty at all costs, is an economic one. For almost a century, one basic system of economics has swept over our country, from sea to shining sea, from top to bottom. That same system of debt-based economics now thrives throughout the entire world, save two or three lonely countries whose names are unrecognizable and unknown by most people.

Current economics are often used to justify anything and everything the government does: from invading foreign countries (because after all, the United States does some kind of "business" with these countries and therefore has an economic interest), to the 1993 Branch Davidian Massacre in Waco, Texas (which resulted from 400 dollars in unpaid excise taxes on two handguns).

Federal government sources use economic threats to persuade State governments to go along with them. This is how our lawmakers are manipulated; through the magical control of money by unscrupulous parties.

What if you could do something to completely undermine this illegal and unconstitutional abuse of power? Our country was founded on free market principles and a free economy based on real money, not credit and promises to pay (i.e. Federal Reserve Notes). If we restore a free market and free currency, then we substantially diminish the controls exerted by global social engineers, and thereby offer people real choices.

Un-Registered Private Enterprise

The pursuit of happiness means the right to pursue a living in whatever manner you desire, without injury to your neighbor (Butchers’ Union vs. Crescent City Co., 111 U.S. 746 (1883)). Yet, most of you labor under the mistaken belief that you have to register yourself in order to go into "business" (corporation, DBA, fictitious name statement, etc.). Where did you get such an idea? Who told you? And why did you believe him/her/it/them?

You have the right to engage in your private enterprise, which is non-taxable and un-regulated by government. (I am sure that any number of attorneys or government officials would have a fit upon reading these words; nevertheless, this is the truth). You cannot be compelled to pay a tax, licensing or registration fee, nor sign anything giving regulatory authority over you or your private business to anyone, or any government agency or instrumentality, in order to engage in the free exercise of that which is a natural right.

This means you can lawfully establish your private enterprise in an un-regulated artificial entity, such as a Pure Trust Organization or a corporation sole, then hire on and conduct your activities unhindered by intrusive government regulation or oppressive taxation. PTOs are completely foreign to government jurisdiction; when set up correctly, a PTO erects an iron-clad wall around your assets. Neither the IRS nor any government can touch property held in a PTO. A corporation sole is statutorily recognized as being exempt from taxation and regulation. By combining PTOs and a corporation sole, you can establish a private business which is totally exempt from government controls, and whose property is free from regulation and taxation. (For information on setting up a Pure Trust Organization or corporation sole, call Freedom Bound International at 888-385-3733).

Of course, an un-registered business cannot apply for any government benefits. It is ineligible for such benefits. That is the trade-off. Freedom in exchange for benefits and privileges. Liberty in exchange for convenience. Having to earn your keep, instead of having everything handed to you on a platter by the government.

A private enterprise does not collect sales tax, nor is it eligible to apply for a resale tax permit. So what? If you have to pay sales tax when purchasing supplies, just pass on the additional cost to your customers. Then promote the fact that you do not charge sales tax! In the end, the customer will pay no more for the item by purchasing it from you, but you will end up with many more customers, because people would rather give their money to a merchant in exchange for a product or service, than to the government! If you will just think creatively, you will discover myriad ways to turn seeming disadvantages to your benefit.

If enough Americans establish un-registered businesses, then by the time the United States government manages to wring a national sales tax out of Congress despite the will of the American people and the limitations imposed by our Constitution, they will literally be able to ignore it with impunity because they will have already set in motion a secondary economy; one in which private commerce is conducted by people who exchange real money and barter their own labor among themselves.

Real Money

Money is only a representation, a medium of exchange of labor. You need a roof - I am a roofer. I need a computer system - you set up computer systems. Let’s say I work for you; you pay me 1000 dollars; I spend the money on hiring someone to set up my computer system. Alternatively, I do the work for you; you set up my computer system. Money is just a commonly agreed-to medium of exchange of labor.

Real money is gold and silver. Not gold-backed or silver-backed currency, but the metals themselves. The reason gold and silver are considered real money, the only lawful money in our Union, is because they have intrinsic value. They have value for what they are, as well as for what they can purchase. For over 6,000 years, you could travel anywhere in the world and barter with gold or silver, even (perhaps especially) among the most "primitive" tribes in the most ancient jungles and deserts of the known world.

Our new economy must be prepared to barter in some kind of non-debt money and/or currency. Currency is essentially a form of scrip. It is a "coupon", if you will, and in order to be lawful currency, it must be redeemable in real money. There can be no fractional reserve banking, in which a banking warehouse loans out more than it has on deposit.

Official currency must have gold or silver backing every single dollar. For several years, the National Organization to Repeal the Federal Reserve Act (NORFED) has been successfully circulating an excellent alternative to Federal Reserve Notes – American Liberty Currency; warehouse coupons for .999 fine, one ounce silver rounds. This is my suggestion for the official currency of the new economy (for more information on American Liberty Currency and NORFED, contact Freedom Bound International toll-free at 888-385-3733).

Free Economics

In a free economy, people are not obstructed from offering their labor or otherwise bartering among each other. Since money is only a medium of exchange of labor, some people will no doubt choose to forgo the medium of exchange and enter into more direct arrangements. This helps the economy thrive.

A free market economy is not for everybody. Such a system punishes those who do not work by not providing for them. In truth, however, it is not a punishment. It is only that each receives in accordance with what he or she has earned. There is no provision for having the government take care of those who cannot or do not take care of themselves, because that is not the function of government in a free society. If you are unable to earn enough for your basic needs and those of your family, then you and your family will starve, unless you can obtain help from your friends or religious institution. In a free economy, you do not purchase what you cannot afford. Buying on credit means going into debt. This is something that a free market economy does not support. If you can’t afford to purchase it outright, do not buy it!


If you start planning for it now, by the time the national sales tax makes its way through Congress, the Administration, and the numerous legal challenges certain to be filed against it, you will be in a position to continue operating your private enterprise while legally and lawfully avoiding the impact of such an oppressive tax. (By the way, under the current proposed national sales tax legislation [H.R.2525 – Fair Tax Act], after the first year, the sales tax rate will be determined solely by three statistics generated by the federal government itself! The tax could go as high as they want it to; as high as they decide to make it. There is no ceiling! Also, what is to stop the government from re-instituting the income tax at a later date and also retaining a national sales tax? After all, government officials are liars!)

To those who continue to hesitate, who simply refuse to see the oppression going on all around them, because to do so would require them to take corrective action; who fear anything that might upset their personal status quo - something most people are unwilling to do - remember that, cliché though it may be, freedom is never free. It costs dearly, and if you are unwilling to pay the price of liberty, then you don't deserve it, and you are truly destined to a miserable life of servitude.


Eulogy for an Angel
1992-Dec. 20, 2005


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