Dr. Jack Wheeler - president, Freedom Research Foundation, developing ways to advance democracy and free enterprise throughout the world; president, Jack Wheeler Expeditions; author, The Adventurer's Guide and Up Against The Red Empire: Anti-Soviet Guerrilla Warfare in the Third World; acknowledged by press as originator of the Reagan Doctrine.

Tonight we are not here to wallow in doom and gloom. We are here to have a good time, to hear some good news. Tonight we are going to learn how to drive a stake through the heart of the Beast of Washington, and have a lot of fun doing it.

Let me give you a couple of examples of endearing and uplifting, genuinely good news. An excellent one is the marvelous job environmentalists have done, unknown to anyone, to curtail drug smuggling. These unsung heroes of the War on Drugs have made CFC's (chlorofluorocarbons like Freon, the refrigerant in your air conditioning) more profitable to smuggle than cocaine.

The ban on CFC's, caused by the fear that hair spray propellant causes the ozone hole, is going to do fantastic damage to the booming economy of south Florida, and indeed anywhere you need air conditioning in the summer.

Smugglers don't care about drugs; they care about money. Show them something more profitable to smuggle than drugs, and they'll gladly do that instead. CFC's is that something, and we owe the greenies a debt of thanks.

The additional good news is that thousands of tons of CFC's are successfully being smuggled in. The ban is being violated as much as the 55 mph speed limit.

I think it's refreshing to be able to cheer for smugglers as good guys, for a change. We haven't been able to do that since Rhett Butler in Gone With The Wind.

Here's another. Last month, the Washington Post ran a sympathetic story on the plight of Gilbert Casellas, chairman of the EEOC (Equal Employment Opportunity Commission). "Nobody gives a crap about us," complained Gilbert.

As the number of fascist categories of illegal "discrimination" over the years has increased, so has the caseload. The EEOC received some 88,000 accusations of illegalized preferences (based on race, gender, national origin, religion, age, or disability) last year, far more than it can handle. Even with $223 million a year, EEOC investigators were in a state of total overwhelm.

Now this winter's government shutdowns have collapsed the EEOC into gridlock and paralysis. So "Hooters," the restaurant chain, was able to prove Gilbert right: They successfully defied and publicly made fun of the EEOC.

What has happened to Washington in the '90s is the same thing that happened to the Soviets in the '80s. Both, in the previous decade or two, exploded the size of their empires -- but in the end there was no way to raise enough money to pay for the expansion. The result is implosion.

What is happening to the EEOC is beginning to happen to federal bureaucracies across the board. The Washington Colonial Empire is imploding, collapsing in upon itself. This is why that over-used metaphor about the Titanic deck chairs is especially apt for Washington today.

Yes, the House Republicans (and God bless the freshmen) have made heroic efforts to alter the juggernaut's course a few degrees rightward. But the whole struggle is monumentally irrelevant when you see what is about to slice open the Ship of Bureaucracy's innards, sending it to the bottom of the sea.

Next year, income tax receipts will start to fall off a cliff.

 Seven years Seven years to balance a budget that includes hundreds of billions for "entitlements" and other Ponzi schemes? In less than half that time, it will be horrifically obvious that no form of taxation is available to keep the government in the style to which it has become accustomed. Finita la musica: the music is over, and all the subsidy addicts are going to have to go cold turkey, because the Federal Reserve is about to lose its monopoly on issuing currency.

Information technology is about to do to the Washington Empire what it did to the Soviet Empire. The information technology of the 1980s -- fax machines, widespread photocopiers, satellite radio -- doomed the Soviet government's attempt to maintain a monopoly on the supply of information. Suddenly, the Kremlin couldn't hide what was really happening in the world and within its empire from its subjects -- and the music was over.

Here in the United States, this same information technology gave birth to fax networks, nation-wide talk radio and other alternative media which broke the Liberal Establishment's monopoly on information supply, enabling the Democrats' 40-year stranglehold on Congress to be broken.

Today, the information technology of the 1990s -- super fast personal computers, the Internet and the most revolutionary development of all, public key encryption -- is soon to doom the government's attempt to maintain a monopoly on the supply of money.

In large part, we owe the coming obsolescence of government to an eccentric computer programmer named Phil Zimmerman. He took a mathematical theory on how to encrypt, or put information in a secret code, a message so powerful that it couldn't be broken. He made a software program out of it that anyone can put on a PC. It's called PGP -- Pretty Good Privacy -- and it's going to change the world.

Here's the commercial version you can buy -- ViaCrypt -- point-and-click; it's easy with a Windows shell. If you load this onto your desktop PC, it will encode a message with more possible combinations than the number of atoms in the entire universe -- which means that such an encrypted message cannot be deciphered by the Pentagon, the NSA, the CIA, the KGB, nobody, even if they have every Cray supercomputer in the world paralleled together. What this provides is untappable, anonymous, yet verifiable communications, a seamless transnational "space" (that is, cyberspace) for transactions. This makes offshore banking, brokerage and money laundering available to anyone, not just to huge multinationals and international drug cartels.

Encrypted online financial transactions that are indecipherable by any government agency are already being offered by a Bahamian company, Offshore Assets Reconciliation, Ltd.. OAR is in Nassau. It can execute PGP instructions to move cash from a bank or brokerage account to a bank, attorney or escrow account. It is equipped to function throughout the Caribbean and in 20 international financial centers such as Isle of Man, Bermuda, Cook Islands and Vanuatu. OAR is the first of many such services to come.

Another technology of freedom is the Black Net: a network of what are called "anonymous re-mailers." There are about two dozen of them in the Black Net now, and the number will be 10 or 100 times that before long. Instead of sending your e-mail directly to its recipient, you send it instead to a re-mailer, which strips your identity off the message before forwarding it on.

Using just one re-mailer would allow government snoops to do what's called "traffic analysis" to figure out who is communicating with whom. A whole network of re-mailers, bouncing encrypted financial instructions off each other and stripping off the sender's ID with each bounce, provides for fully anonymous and untraceable communication: the Black Net.

 It's worth noting here that the wealthy in America are the most overly-taxed wealthy of any country in the world: one percent of taxpayers pay 30 percent of income taxes, three percent pay 40 percent, five percent pay 50 percent. So it doesn't take too many of these over-taxed folks to disappear into the Black Net to reach a critical mass regarding the unviability of the income tax.

But disappearance into the Black Net is not necessary to effect the disappearance of government as we know it. In an article in the Wall Street Journal last November, the former chairman of Citicorp -- the nation's largest bank -- Walter Wriston described the future of money. Not only banks, Wriston explained, but all kinds of companies from convenience stores to telephone companies, will be issuing "smart cards" with their own private digital currencies.

This means that an enormous portion of the economy is about to fall into a private digital black hole as far as the government is concerned.

Recall that it was the creation of the Federal Reserve which gave the U.S. government a monopoly on the creation of money, that made the collection of the income tax possible. It is far from an accident that both the Fed and the IRS were legalized in the same year 1914.

Put all this together, and it means that untraceable, indecipherable encrypted transactions and money transfers in competing currencies will soon be a normal way of doing business for everyone. Any attempt the Federales make to stop this will be like King Canute ordering the tide not to wash over him. Brave talk, like that coming from the Treasury Department quoted a few days ago in the Wall Street Journal, about "tax toll booths on the information superhighway," is utter fantasy.

This is so because one of the most beautiful things about the coming death not only of the income tax but of any form of confiscatory taxation is that it is an epiphenomenon: not a direct goal of some anti-tax political movement, but a mere side consequence of the way business has to be done from now on.

The Internet is the greatest machine for making money in the galaxy, yet it is running on idle because transactions on it are not secure. Sending your credit card number out on the Net to buy something is like putting it on the back of a post card. Only encryption programs like PGP that are hacker-proof will work. But to make transactions so secure that computer criminals can't get them automatically makes them too strong for the IRS and NSA to get at them as well. The latter is making all kinds of desperate moves to prevent the adoption of PGP-encrypted Internet transactions, but they will be futile. The Internet Architecture Board has already approved hardwiring PGP-type cryptography into the international structure of the Internet.

The bottom line is that any kind of income tax, including the "Flat Tax," any VAT or consumption tax, is doomed in the coming economy of competing and invisible currencies.

Thus the next president, before the end of his second term (that is, within eight years), will see his administration reduced to four agencies: Justice, State, Defense, and Treasury, and his budget reduced by some two-thirds (to around $500 billion if he's lucky -- it may be a lot less). He will have to raise the money by backing the dollar with gold and by providing a vital service that only government can provide and for which people would be willing to pay.

My proposal would be a "contract tax" -- a tax on judicial recourse for contracts. Charging a small fee on the trillions of dollars' worth of contractual relationships within the U.S. economy every year to make them legally binding is probably the most realistic (as well as voluntary and moral) way for the government to pay for its legitimate functions.

Now for those of you who don't want to wait a few years for this to develop, and want to drive that stake through the Beast right now, here we go. Back in 1991, after we knocked off the Soviet Union, my wife said to me one day, "Why can't we do the same thing to the IRS?" I could only laugh and say, "Because the IRS is a lot more dangerous."

But today, maybe not.

A lot of folks, including House Ways & Means Chairman Bill Archer, are now calling for the complete elimination of the IRS.

The federal tax code has mutated into this gigantically incomprehensible Rube Goldberg monstrosity that day by day gets closer to collapsing under its own weight. Couple that with the fact that the IRS computer system is about to go belly up. The IRS originally computerized itself ad hoc, with the regional centers getting various platforms and software that can't communicate with each other very well. The agency has now spent over $8 billion on the "TSM" project to re-computerize, which an independent review recently concluded is a colossal failure.

The philosopher Friedrich Nietzsche once said that if something is about to fall off a cliff, it deserves to be pushed. As the IRS teeters on the brink, a fellow I know named Eddie Kahn may be about to push the whole creaking mess over the edge.

Disdainful of "tax protests" such as Fifth Amendment or legal tender arguments that quickly get their advocates behind bars, Eddie looked instead into the structure of federal law. When Congress passes a law, codified as a statute, it then delegates to a regulatory agency the authority to issue the implementing regulations specifying to whom and under what circumstances the statute applies. These regulations must, by law, be published in the Federal Register. Lacking these implementing regulations, the law cannot be applied and has no force.

Well, it turns out that the implementing regulations for the IRS' enforcement statutes -- things like the requirement to file a tax return and the authority to place a lien -- cannot be found in the Federal Register.

When queried on this, the Senior Counsel for the Office of the Federal Register, Michael White, replied in writing, "Our records indicate that the Internal Revenue Service has not incorporated by reference in the Federal Register a requirement to make an income tax return."

This is starting to get interesting, isn't it? What happened is that up until 1972, the IRS and the BATF were part of the same Treasury agency, so the IRS piggy-backed onto the BATF's enforcement authority with fully-published regs in the CFR. After the two were separated into legally different agencies, the IRS never got implementing regs of its own -- because to do so would be to admit they did not have them in the first place.

Lack of implementing regulations published under Title 26 -- the IRS section -- in the Federal Register means that the IRS has no assessment authority, no collection authority, no authority to enforce a lien or seize property, no authority to pursue criminal penalties for failure to file a return or to make a false/fraudulent return.

You all know that one definition of a pioneer is a guy with an arrow in his back. So I am not at all suggesting you be a pioneer. But if you should have any difficulty with the lovable folks at the IRS, you might consider making an appointment to see them in person at their nearest office, and tell them face to face that you need to see a copy of the implementing regs published in the Federal Register that show they have the authority to require you to do what they want.

 Not one of the close to a thousand people who have so far done so has yet to receive a copy -- and not one has been further harassed. Better to let these folks drop out of the system quietly than risk a negative decision in court, which would be an ultimate catastrophe for the American Gestapo.

Are we having fun yet? See -- good news is fun. For even more fun, get a copy of an article listed in my Sources List entitled "Hackers vs. Politicians." Compiled by a patriotic computer hacker, it is a brilliant guide on how to use computer databases to discover what hidden assets and shady deals any politician of your choice (from local to federal) may have. How you use the dirt you uncover is up to you. You could demand your local left-wing rag print it (good luck) -- or you could put it into a plain white envelope which is hand-delivered to your target, together with a note saying all of this will be made public unless its recipient announces his or her retirement.

I'm sure there is no truth to the rumor some of you may have heard that there is a group of ex-CIA and ex-NSA computer geniuses called "The Fifth Column" with a Cray supercomputer, and that all these life-long devoted public servants who are suddenly retiring from Congress -- such as Patsy Schroeder who already had her re-election campaign literature printed, or Charlie Wilson who had already bought air time, or Charlie Rose or Sam Gibbons -- got a plain white envelope just prior to their announcements.

Probably just a coincidence.

It's also not true, you understand, that I know one of the "Fifth Column" fellows as a personal friend. That's just a rumor.

So -- I can see the thought balloon above each of your heads: When does Slick Willie get his envelope?

Coincidentally, the rumor is that it's scheduled to arrive in time for him to announce his retirement. This may be the reason why Jimmy the Greek is currently offering 8 to 5 odds that Willie will not be the Democratic Party's candidate for president this year.

Yet I do not think we can afford to sit back and let technology give us back our freedom or get rid of the Hillbilly Presidency. You've probably shaken your head in disgust at the way Slick has totally bamboozled the befuddled Republicans in Congress. These poor innocent schlemiels thought that they were dealing with a president. But Slick is not a president -- he is a presidential candidate, and nothing more. Every decision, every act is political; nothing is done to govern, it is all done to run for office.

Most politicians wear a mask, of course, in front of the electorate, and hide much of their real persona behind it. But with Slick, there's just the mask. There's nothing real behind it.

Bill Clinton is the most criminal president our country has ever had, and it is our patriotic duty to do whatever we can to get him out of office and in jail where he belongs. We cannot depend on "Fifth Column" hackers, we cannot depend on D'Amato's once-over-lightly, squishy Whitewater hearings, we cannot depend on Ken Starr to indict Hillary or do anything but vacuum up documents and keep them hidden from public view, and we can't depend on an election campaign run by Blob Dough.

Each one of us must do whatever we can to ensure that America will no longer tolerate a murderer in the White House. From the murder of Vicki Weaver at Ruby Ridge to the murder of the Branch Davidians at Waco -- a previously suppressed FBI infrared video shows the FBI shooting at the Davidian compound and possibly setting off the fire -- to the Oklahoma City bombing -- a classified Pentagon study has concluded there were five separate bombs -- to the murder of Vince Foster, Bill Clinton bears responsibility for them all.

The key to destroying the Clinton Presidency is to expose the cover-up of the murder of Vince Foster. The evidence of his non-suicide is beyond any reasonable doubt, as is the evidence that Robert Fiske should be prosecuted for obstruction of justice.

 I implore each one of you, through your organizations, think-tanks, media or political connections, to do what you can to prevent Ken Starr from becoming another Robert Fiske, to see America confronts the truth about Vince Foster and that, consequently, impeachment proceedings are brought against Bill Clinton.

Once we clear away the poisonous wreckage of the Clintons, we can start to rebuild an America that again lives up to her promise.

Ronald Reagan always said that America's best days were ahead of her, not behind. There is no country on earth that has the potential for fulfilling the dreams of its citizens as America has. Yet the liberals, with their politics of envy, welfare addiction, and fascist meddling into everyone's lives, have throttled those dreams.

A dear friend of mine and true hero of freedom, Congressman Dana Rohrabacher, was reminded of this a while ago looking out the window of his room at the Dusit Thani Hotel in Bangkok. In the section of Bangkok his hotel room overlooked, he counted 47 construction cranes. "We're dead in the water compared to the economies of Asia," Dana said. "And the reason is that the liberals prevent us from setting our economy free."

At present and counting, there are some 200 volumes containing over 130,000 pages in very small print of federal government regulations. Due to the technologies of freedom we have been discussing, within the next few years the vast majority of them -- well over 90 percent -- are simply going to evaporate.

Just think of how much better you would feel about America, about living and working and keeping your money in America, if the IRS ceased to exist. Think of how the elimination of the IRS and the fascist regulatory bureaucracies it funds would explode this economy to the moon, how it would end so much of the terrible pessimism and alienation so many Americans feel today toward their country and their government.

The days of government as we have known it are coming to an end. We will liberate America and dismantle the Washington Colonial Empire just as we dismantled the Soviet Colonial Empire. America will be free once again.

 

Sources for More Information

1. Public Key Encryption

a) ViaCrypt software: 602/944-0773;

9033 N. 24th Ave, Ste 7,

Phoenix AZ 85021

b) Internet: alt.security.pgp; sci.crypt

2. The Black Net

a) Internet: talk.politics.crypto

Cypherpunks Anonymous Remailer Net:

ftp://ftp.csua.berkeley.edu/pub/cypherpunks/home/html

3. Private Digital Currencies

a) The End of Ordinary Money by J. Orlin Grabbe

Kalliste, Inc. 1280 Terminal Way #3, Reno NV 89502

(US$20)

b) Internet: Network Payment Mechanisms & Digital

Cash http://ganges.cs.tcd.ie/mepeirce/project.html

4. Anonymous Encrypted Offshore Banking

a) Novecon (Richard Rahn, President)

202/659-3200; 1020 16th St NW #200, Washington,

DC 20036

b) Advanced Technology Holdings (Jim Bennett,

President; Mike Smorch,VP) 800/268-2611;

10 E Chase St, Baltimore MD 21202 (also for

investments in neural net programming, agoric

software, virtual reality, and nanotechnology)

c) Offshore Assets Reconciliation, Ltd. (OAR),

Nassau, Bahamas. 809/356-2093, fax 809/356-2095,

e-mail: 71522.2715@compuserve.com.

5. Political Data Searches

a) "Hackers vs. Politicians"

Kalliste, Inc. 1280 Terminal Way #3, Reno NV 89502

(US$10)

6. No IRS Enforcement Regulations

a) Eddie Kahn, 1-800-419-7512

7. Wired Magazine

Subscriptions: 415/222-6399

online: info@wired.com

8. Strategic Investment/ Strategic Weekly Briefings

Subscriptions: Agora, Inc., 824 E. Baltimore St,

Baltimore MD 21202

9. Dr. Jack Wheeler

Freedom Research Foundation

POB 7531, Falls Church VA 22046

703/237-6222 fax 703/237-3666

Internet: jw-rh@ix.netcom.com