Saturday, November 28, 2009

Judicial Terrorism: The State vs. Robert and Danille Kahre

Judicial tyrants, now as then: U.S. Federal Judge David Erza (left); German National Socialist Judge Roland Freisler (below, right). Any resemblance to the legendary gangsta accountant Herbert Kornfeld (further below, right) is ... somehow oddly appropriate.

German dissidents Hans and Sophie Scholl were half-way through their show trial before the notorious Judge Roland Freisler when their parents Robert and Magdalene arrived at the courtroom.

The outcome of the trial wasn't in doubt; Hans and Sophie -- who were on trial along with their compatriot in the White Rose resistance, a young father named Christoph Probst -- had admitted to composing and distributing seditious leaflets urging opposition to Hitler's war and domestic tyranny.

As Christians the Scholls understood their duty to the truth; as German patriots they understood the necessity of bringing down the regime that was destroying their homeland. Hans and Sophie had learned their values from their parents, but the intrepidity with which they defended them was their own.

Denied entrance to the courtroom, Magdalene pleaded with a guard: "I'm the mother of two of the accused."
"You should have raised them better," sneered the guard in an act of malice that was both deliberate and gratuitous.

The circumstances were different, and the sentence imposed on the victim much less severe than execution via guillotine, but there was more than a hint of the same cruel statist sanctimony in the lecture given by U.S. District Judge David Ezra when he sentenced Danille Kahre to five years' probation earlier this month.

At the time he pronounced sentence on Danille, Ezra -- who was less histrionic than Roland Freisler, but just as contemptible in his dogmatic collectivism as that Communist-turned-Nazi jurist -- had already sentenced her husband, Robert Kahre, to fifteen years in prison. Turning to the subject of the four Kahre children, Erza insisted it was Danille's duty to teach the children to serve and worship the government that is tearing their family apart.

Danille must not allow her children to experience "hatred for government or for people who participate in government," Ezra pontificated: "If, as a result of that trauma [of seeing their parents unjustly imprisoned], that turns them [the children] against their own country and leads along a path of hate and retribution, they will have lost their promise."

This man is not a criminal: Robert Kahre (in blue button-down shirt) following the federal jury's verdict.

Like the sibling freedom fighters Hans and Sophie Scholl, Robert and Danille Kahre understand that the government ruling us is our country's deadliest enemy. This authentic patriotism is as inscrutable to David Ezra was it was to Roland Freisler, and for the same reason: Each of those judges was a creature of the regime he served, and both of them defined "justice" as vindicating the power of the state in any and all circumstances.

After being acquitted on the basis of the same facts in a previous trial, Robert and Danille Kahre
were found guilty by a federal jury of "tax crimes" -- a charge that describes the efforts of productive people to avoid having their honestly earned wealth stolen from them by the world's most vicious criminal syndicate. In this particular case, the method used by the Kahres -- owners and operators of a large and successful construction company -- protected their earnings, as well as those of the people with whom they worked, and underscored the pervasive criminal fraud practiced by the regime.

In operating their construction business, the Kahres paid workers as independent contractors, rather than "employees," in gold and silver coins minted by the U.S. government. The employees were able to sell those coins -- which were assigned a face value by the government, not by the Kahres -- at the much higher market value. The contractors then claimed a tax liability based on the government-assigned face value of the coins, not their value in Federal Reserve Notes (FRNs).

This is, if you will, the obverse of
the government's claim that gold and silver minted currency are "legal tender" only for their face value. The Kahres simply reverse-engineered the logic of the legal tender laws in an entirely defensible application of the commandment to render unto Caesar only that which is Caesar's: If the government is content to perpetuate the fraud that a Gold Eagle fifty-dollar coin is worth only that amount, and not the $1171 and change it presently commands on the market, then the tax liability of that coin should reflect its fraudulent face value.

The Constitution has never authorized the federal government to create "money" in any fashion, let alone that of printing tastelessly decorated rectangles of rag paper it calls "dollars." The Constitution permits only the use of gold and silver as legal tender. Contrary to popular assumption, the function of "coining" gold and silver does not mean that the government was authorized to "issue" money of any kind.

Free Market defender and aerospace engineer Bill Denman cues up a lecture, recorded on reel-to-reel audiotape, by economist Dean Russell of the Foundation for Economic Education (FEE). Among Dr. Russell's numerous invaluable contributions was his translation of Frederic Bastiat's irreplaceable treatise The Law from French into English.

Financial analyst and monetary historian Bill Denman points out that "coining" money "is simply a metal stamping process and regulating the value thereof is determining the size, weight, and firmness of the coin and stamping that information on its face."

Section 14 of the 1792 United States Coinage Act specifies that "it shall be lawful for any person or persons to bring to the mint gold and silver bullion, in order to their being coined.... And as soon as the said bullion shall have been coined, the person or persons by whom the same shall have been delivered, shall upon demand receive in lieu thereof coins of the same species of bullion which shall have been so delivered, weight for weight, of the pure gold or pure silver therein contained...."

"In other words," summarizes Denman, "anyone who owns gold and silver bullion (not just the mining companies) can take it to the mint and have it converted into certified coins and then
spend them into circulation. It is not necessary to have government, or banks, `issue' currency" -- that is, it is not necessary under the terms of the Constitution and the 1792 Coinage Act, which is still in effect.

Under the existing "legal tender" laws, and the system of inflatable fiat money inflicted on our nation in 1913, spending constitutional money at the government's artificial face value would be suicidally stupid. But the very
existence of government-minted gold and silver coins is usefully subversive of the official fictions on which the Regime's fraudulent monetary system depends.

In 1985, Congress passed the Gold Bullion Coin Act, which instructed the government to mint and circulate gold coins in denominations of $50, $25, $10, and $5. This produced an anomalous result: The same government that was issuing worthless Federal Reserve Note scrip was actually circulating constitutional currency as well (albeit in a fashion far removed from that authorized by the Constitution). This created a de facto dual monetary system, a fact not lost on the Kahres and a few others who understood the implications.

Liberty Watch magazine pointed out more than a year ago, the supposedly criminal "tax fraud" practiced by the Kahres was actually perfectly legal under the dual system created by the feds: Given that there were two systems with two wildly different standards of value, which one was the correct standard for measuring taxable income? Nothing in any law or precedent dictated that it was necessary to use inflated FRNs for that purpose.

Accordingly, the Kahres paid their contractors in real money, thereby effectively wiping out their tax liability under the rules that the government itself had established.
Nothing in federal law (including the "laws" dealing with the income tax, or federal court precedents) prohibits what the Kahres did in opting to paying those who did work for them in real money, and then turning the Regime's fraud against itself.

Stormtroopers strike: A joint state-federal goon squad attacks the Kahre family business, May 29, 2009.

It must not be forgotten, however, that government is a criminal enterprise that enjoys an effective monopoly on interpreting the laws that supposedly restrain it.

Tax "evasion" is a supposed crime that injures nobody but the parasite class, but that is the class that operates the state's apparatus of coercion, extraction, and propaganda.

This is why on May 29, 2003, a platoon-sized (or larger) paramilitary force, exhibiting the boldness such people display only when they're serenely confident that their targets are unarmed and helpless, assaulted the Kahre family's Las Vegas business office.

Acting on a warrant subsequently found to be legally defective, the strike team, a pack of militarized mouth-breathers from the FBI and several local SWAT teams, busted down an
unlocked chain-link gate in an APC before swarming the property.

Computers were seized; helpless senior citizens and women were brutalized and held for a prolonged period in 109 degree weather, forbidden to get a drink or use the bathroom. One of the victims (Kahre's sister) was so severely abused that she required medical treatment. Security cameras were disabled in an unsuccessful effort to suppress the details of the criminal assault. Kahre himself was arrested by a separate task force while conducting business at his bank.

All of this was done, remember, to someone who was not accused of a violent crime. Had Kahre been a criminal kingpin accused of victimizing others through violence and fraud, he would have been treated with much greater deference by the Feds -- perhaps as a gesture of "professional courtesy."

The same Regime that has lavished trillions of dollars on politically connected swindlers at Goldman Sachs has no moral standing -- or legal authority -- to punish the Kahres. But when has any criminal oligarchy -- be it Nazi, Soviet, or US-federal -- required actual authority to carry out its crimes?

Like Roland Freisler, David Erza is a sycophant in robes, a servant of a dying Regime.

"You know the war is lost," Sophie Scholl chided Freisler during her trial. "Why don't you have the courage to face it?"

Ezra is intelligent enough to recognize the truth about the system whose bidding he did in sending Robert Kahre: The monetary regime created in 1913 -- a system of institutionalized fraud, expropriation, and deceit in the service of war and tyranny -- simply cannot endure. What eventually replaces it may be something even worse, but its trajectory is set, and its destruction is inevitable.

Teach your children well: Danille Kahre comforts her two-year-old son Landon, whose father was sentenced to serve fifteen years as a political prisoner.

I earnestly hope that Danille Kahre spends every day until the Regime's overdue and well-deserved demise tirelessly cultivating within her children a righteous and proper hatred for it and all its works and pomps, as well as a principled contempt for the invertebrate and despicable specimens who serve it, of whom David Erza is a suitably wretched example.

May each of us blessed with the responsibility of raising children do likewise.

A Quick Note --

Please forgive the long hiatus. Yes, Thanksgiving occupied a great deal of my time and attention. But I've also been job-hunting, which is a time- and labor-intensive undertaking even in a good job market.

At the bottom of this edition of Pro Libertate you will notice a PayPal widget. After three years and hundreds of essays, I'm finally putting out a tip jar. I earnestly hope that those of you who find my work worthwhile can arrange to send small but regular donations. In any case, I remain very grateful for the help and support many of you sent to my family during my recent health crisis. Thank you so much, and God bless.

Don't miss Pro Libertate Radio each weeknight from 6:00-7:00 Mountain Time (7:00-8:00 Central) on the Liberty News Radio Network.

Dum spiro, pugno!


Tom Joad said...

Mr. Grigg,

Please see this link - the article is entitled: "Hard Evidence that Form 1040 Has No Legal Basis in Law - IRS Withdraws Criminal Allegation, Tax Convict Walks Free"

Please pass it on to Robert or Danille Kahre if you have their contact information.

If one has a lawyer who is willing to risk his future career to defend you on this basis, you can beat the IRS, and never need to file another tax return.

Regarding gold and silver investing: State governments maintain that US gold coins and other gold coins are NOT legal tender but are a commodity. If you buy any form of gold or silver in-state, you will have to pay state sales taxes on it. This is in spite of the fact that no federal law has ever been passed to overturn the legal tender status in the USA of US-federal-government-issued gold and silver coins.

One caveat for your readers: The Chinese are pouring literally hundreds of thousands of fake gold and silver coins onto the market - all dates, all mints, all denominations, and all countries, including Sovereigns, 20-Francs, Russian Gold Rubles in all denominations, and many others, such as Mexican coins. The only way to protect yourself if buying gold or silver coins is to buy a digital scale and weigh them - the Chinese fakes are invariably light, since they use 14-karat gold and then plate it, or .800 silver instead of .900 silver. Other than the weight, the fakes are undetectable - they are stamped out just like real coins using dies cut by computer-guided lasers.

Simply Google "Chinese Fake Coins" or "Chinese Counterfeit Coins" and you will find many articles on the subject.

The Treasury has shown no interest in prosecuting dealers and importers of these fake Chinese coins, even though technically it is forgery of US legal tender currency.

I hope this information is of use to your readers.

Tom Joad.

TJP said...

A consequence of referring to the fiat currency as "money", instead of "bank notes"? Even the marginally inquisitive may ask which bank issued the notes; if the respondent is not careful, his answer may include the word "central". How can there be a central bank when there is no central government? Furthermore, where in the Constitution may we find the terms "central bank", or "federal reserve"?

Anonymous said...


you are spot on, but the reality is that none of your research, or anything else matters. i'm not trying to be rude, but to these people, they do not care what the law says or what we think.

they know they will not be punished.

they know they can act with impunity.

they know they control the courts.

they know they control the interpretation of law

they know they control the grand juries

they know they control the juries through their screening out process call voire dire.

they know they control the media.

they know they have most of the guns.

they know they know they know...and they know there is not much you can do about it. write an article, read a book, take out an ad...they know you can do all of this and it won't do you a d@mn bit of good.

so what will work? prayer and education. sincere and fervent prayer always works. and as for education, most people don't know what is going on. they are distracted. fortunately this economic crisis is opening people's eyes. unfortunately, the affected and afflicted don't know who or what is the cause of the problem. they believe whatever the media tells them.

these "folks" who are behind this mess and those who enforce it do not realize the amount of animosity they are stirring up. when the crap hits the fan, i think many will reap what they have sown. no one will go to their help. sadly, i think the other govt employeees still feeding off of the public will will become an even greater threat by subjigating the general public even more 1984 style.

beat the IRS? only if Jesus is your lawyer. otherwise, it's not worth it. you'll go down like a martyr. i like how ron paul once put it in an interview, (to paraphrase him) "these folks making these arguments are 100% right, but it doesn't matter! the IRS will throw you in jail."

or G E griffin when asked about why he pays the tax he knows is unlawfully being collected, (paraphrasing) "it is not worth it to fight these folks at their game. you will lose and educating folks from a prison is next to impossible"

or peter schiff in an interview, "my dad found out lots of information on this subject and was correct. but he is now in jail. whenever i speak to him he brings up that the IRS is wrong, but then i respond that it doesn't matter because they will throw you in jail regardless of the law."

is what we are experiencing extortion? yup! big fat and ugly extortion.

Caesar is gonna get his, then God will get Caesar.


as one person once responded here, the coinage act of 1792 did authorize copper coins. i hate to admit it but he was right. the constitution says the states are to use gold and silver coins, not the feds. it just says the feds are to coin money. now i agree with you that common sense dictates that if the states cannot coin money but have to use what the central govt coins, but they can only accept gold and silver coins, then it would mean that the central govt can only mint gold and silver coins.

...but it never says this. it's a loophole. something even you have admitted the constitution is full of.


Anonymous said...

I am surprised that the Fed guv spokesdrone didn't refer to their residence/business as a compound. They usually do. Hell they even called the house the Brown's lived in a compound. Never mind that it was appraised by the town of Plainfield at over 1 million.

Anonymous said...

OK... I recall these people won some case quite a while ago so I'm confused as to why now they're going to jail. My head is spinning. If its not one thing its another. Just another piece of tyranny along with yesterdays and the days before. Day after day it keeps on keepin on.

Olde Reb said...

The basic premise of de judge is that an income tax on citizens exists. It may be hard to believe, but it does not.

The pursuit of a livelihood is secured as a Constitutional right by the clause of Liberty. Constitutional rights are not acceptable objects for taxation. If your right to make a living is a suitable object for taxation, the government could legally confiscate 100% of your earnings(and is progressing to this end).

An analysis of how the government indictments avoid the requirement of Due Process to identify the law that imposes a "known legal duty" is made in a rebuttal of the US v Vroman opinion posted at and at other web sites.

Nphyxx said...

Well said, I couldn't improve on the article if I tried. From the scum Judge informing parents that children must be forced to love the government to the outrageously brutish tactics used against tax violators, the only people not criminal in that court room were the victims at the defense's table.

Bucky McMumble Jibberish said...

Herbert Kornfeld has a doppelganger! *(evul thoughtcrime)*

Anonymous said...

Yes, the emperor (oligarchs) has no clothes - and thank you for continuing to remind your readers of that. The, so called, 'rules' are fungible as it applies to the 'rulers'.

At some point, we have to act to end the tyranny and that is the discussion that needs to happen sooner rather than later. We have wasted a century arguing the virtues/vices now we have to start advocating radical new changes to our whole concept of governance.

Sic Semper Tyrannis

lumpen prole serf said...

Please could put up a side by side pic of Herbert Kornfeld and teh judge it would be a funneee like no other. Am laughing aloud thinking of it.

Rose said...

Mr. Grigg,

I believe you are the right person to do an article on Sherry Peel Jackson, who is suffering in prison with a medical condition that isn't being treated.

Sherry is an ex-IRS agent who exposed government fraud. You can reach her husband Colin at

God Bless

Blackstone said...

Here's an example of what went down:

The Kahre's tried to game the system and lost.

Let's say they reported revenues of $10,000. They paid a contractor with a $50 face value Gold Coin. However, it cost them $1000 to buy the $50 coin so they reported an expense of $1000 on the IRS form. Here is the problem - the gov't says the $50 gold coin is legal tender and was used to pay a debt at face value, therefore the only amount that can be expensed is the $50, not $1000.
Thus they owe tax on $9,950, not $9000. At a 20% tax rate they were short $190 in taxes. Now multiply it by the real numbers in the case and you can see why the prosecutor had a case, why the jury believed the prosecutor and why the judge ruled it all to be good.

To me this seems like a case of trying to play it both ways.

Tom Joad said...

Question (rhetorical or course) re. Seattle:

How come when police are killed, we see weeping wives, bereft orphaned children, angry sisters and brothers, and a whole Greek chorus of lament and histrionics from the media, but when police murder members of the public, the media virtually ignores it, except for two lines on Page 35 of the B section?

The answer, of course, is that the media serve the interests of the corporate state, not the public. The corporations are served by the politicians that take their campaign money, served by the thuggish police who are paid by the politicians (using taxes the state illegally extorts from the public) and served by the media which is owned by the corporate state.

(And they ask themselves why the public has stopped buying newspapers. Answer: You can fool some of the people all of the time...)

We the public are merely serfs and cotton-pickers who work our butts off to pay for it all.

I read once that in 1970, 44% of the IRS intake came from corporations. Today the corporate share of the IRS extortion racket has shrunk to 6%. From Public 56%, Corporations 44%, it has become Public 94%, Corporations 6%.

So why then do the politicians oblige the corporations and not us? Why trillions of our tax money to bail out the banks and give billions in bonuses to their CEO's, and a few millions to keep us peons from starving?

America, America, God shed His grace on thee....


All that is required of us is to say "Yessir, massa, anyt'ing you says, massa, I'se so gratitudilous for youse kindness, massa, I's'll be a good niggah, massa, oh yassirree, massa."

I thought I heard somewhere, that over 600,000 of us died a while back to abolish slavery.


Land of the free, and home of the brave.


This land is your land, this land is my land....


One nation under God, with liberty and justice for all.


Only small children believe any of it any more, along with the Easter Bunny, Santa Claus, and the Tooth Fairy.

Welcome to the Plantation.
- Tom Joad.

PS: Too bad it took a crazy child rapist to do what needed to be done. Stormtroopers 1, We the People 4. All the breast-beating and cries of "Why? Why?" For the answer, look on Page 35 of the B Section.

Tom Joad said...

Blackstone @ 8:37 am:

Yes, but if everybody used gold coins, at $1,000 per ounce in pretend money, your annual salary, instead of $50,000, would be 50 coins x $50 or $2,500**, which does not even cover your standard deduction. The IRS would collect nothing.

No money to pay the politicians to emit gas on Capitol Hill.

No money to pay the police to help shear the sheep.

No money to pay the Army to steal oil from Iraqis for Exxon-Mobil and Chevron-Texaco.

No money to pay the Army to protect the CIA's opium crop in Afghanistan.

Oh mercy, Percy, we can't have that. Off to jail, all of you.

Tom Joad.

**(Or, just about what your annual salary used to be in 1913, before a bunch of bankers and billionaires bought off the Congress and put together a closely held secret private company with the exclusive right to create "money" out of thin air, and charge us taxpayers interest on the use of it besides, calling it the "Federal" Reserve. Anyone else trying to horn in on their action will go to jail for a long, long time.)

This land is your land, this land is my land....


Kevin S. Van Horn said...

So what can we do to help the Kahres? Is there a relief fund to which I can donate? How about an address where I can send a letter of support? They need to know that they're not alone, that even though the fury of Leviathan may have descended on them, there are many of us who see them as heroes.