Unruly State of Affairs in the United States of America

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"Huh?  Correcting my what?  Oh do tell..." 

By: James Allen Homyak

03-21-2023
02-01-2026

 

The Americas are distinct multi-jurisdictional geographical locations on planet earth. There are land masses and political subdivisions. Each kind require a type of political citizen populous in order to be recognized "legally" as a country.

First a word on jurisdiction and jurisdictional pathways

1. Postal is the most powerful position because it exists on land, in the air and at sea

2. In the International Jurisdiction, we have South America, Central America and North America as the primary locations for all of the countries therein.

 

Inside North America we have the 50 states, the District of Columbia, plus the 8 ancillary territories mostly surrounded by sea water (Puerto Rico, Virgin Islands, Guam, etc.). Each have a political class of Citizen. Each have a governing body politic and somewhat of a Commercial Legal System dealing in contracts and codes.

 

Americans have also had all of our identities commercially converted into multi-jurisdictional enterprise entities without giving any of us much of a hint about what we should be doing as our daily strategy. We only have basic ideas about how to use these identities -- all based on any practical knowledge and preparation we got in our indoctrination schools. We get trained to work, to buy goods and to pay our taxes. These are our perks for accepting the default "national political status" as that type of Citizen which we're made out to be -- by default -- as newborns, able to breathe, cry and nurse, or so we hope. 

 

 

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Political Status 

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When left to purely receive the result of the default municipal protocols in a STATE GOVERNMENT and the standard practices in a FEDERAL GOVERNMENT, all Americans are presumed to want to have a DUAL IDENTITY cloaked inside a Top Down Political System, instead of the other way around.

Once you realize the truth behind this whole notion, you will quickly want to make some corrective declarations and published documents to get yourself back to the land and soil of your home state.

 

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Commercial Status

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In the business to business world, where most matters cross national and interstate borders, Americans have sat by and allowed the commercial system to rise up to replace our government with incorporated business entities bent on substituting every thing we have with a Corporate Fictional Likeness for which we blindly become its Authorized Representative. 

How much full and complete disclosure of the true nature of this has even been available to help you manage effectively?  You hire an Attorney, right? After all, these are commercial legal matters, no?

By going along with the default government issued forms, as authored, as if you wrote them, your political status and your commercial status is press-ganged upon you -- to be railroaded into fascist technocracy or the American corporatocracy as its happy convert into their vessel in Commerce.  Did any one bother to tell your  parents any of this?  No.  They were told it's the law to register baby, etc.

We each got our Given Name "set up in a monopoly game sort of system" nationally, which is fastly becoming governed by the United Nations, the World Bank, the International Monetary Fund, the World Health Organization and numerous Non-Governmental Organizations.

Our game tokens (aka LEGAL PERSONS) are comprised of at least three types of Individual Entity PERSONS which are spelled with the same letters as your full name... but only with WITH THE CAPS LOCK always turned on in print. You may have wondered, "What is up with that?" It's just the way it is. Yeah. I'll bet. Some jive about machine reading? That's what the Postal Service will say. We also get a nifty secondary state standing too, of sorts, as a kind of dual citizenship -- without being specifically told of the true nature of who made who or what made what.

 

 

Are there two standards in America?

Yes,  There is a political standard and there is a commercial standard.

There is a huge interconnected maze of agencies who task themselves with balancing the books.

Let's not forget about their debt collectors!  ...the I.R.S. and the Internal Revenue Service...

 

 

 

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Restoration for Politics 

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Americans HAVE NOT HAD a properly functioning American State Government between 1861 and 2021. Restoration of American states has happened slowly and gradually and quietly while following the Organic Law as our guide to govern our responsibilities and to put state assemblies back into effect.

American people can rest on the Declaration of Independence.

The American nation states each have a Constitution and a Bill of Rights to run the people in Office. 

The people have their Holy Bible to run their households outside of the government that the people created to do its business internationally.   

Actual Americans are not here to reform the [corporate STATE] but we are here to RESTORE THE UNINCORPORATED STATE as the location where we own our self, enjoy our rights, govern our valuables, etc.

 

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Reformation for Commerce 

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Americans HAVE HAD a Uniform Commercial Code system pressed down upon us between 1933 and present time.

Business Operators have had a properly functioning Uniform Commercial Code between the 1954 and 2007.

Reform of the necessary District at Washington, D.C. has not been happening as all have hoped.

The original Organic Law has been obscured and no longer serves as their guide to govern themselves in their responsibilities and to put the unincorporated state assemblies back into effect.

 

 

While The American People rested on the Declaration of Independence, not really knowing enough about all of The American Nation States, each having its own Constitution and Bill of Rights to run the people in Office, and entirely separate and foreign system of bankers and commercial interests has taken over, using their extremely large holding of dollars as their power to control people across the entire planet. 

The people have their Holy Bible to run their households outside of these governments that the people created generations ago to do its State business internationally.   

Actual Americans are not here to reform the [corporate STATE] but we are here to restore the unincorporated state as the location where we own our self, our rights, our valuables, etc. in peace and harmony.

 

 


 

Reform or Restore --- That is The Question

By Anna Von Reitz

Wednesday, November 29, 2023 

http://www.paulstramer.net/2023/11/reform-or-restore-that-is-question.html

 

 


 

The act of declaring of your home state in the Public Record, or the state you live at now, by way of adopting that state as your Nationality, is a maneuver which lawfully results in you leaving the FEDERAL PLANTATION.

Note the words "live at" as opposed to "reside in" here in this heading.

 


 

...Tremendous Amount Of Detail...

 

In addition to the real natural you, living at your state, as named in your private capacity, in your Proper Name and standing, natural and alive on your home state:

 

There is an Ecclesiatical (Church) Person resident, a Domestic (Municipal) Person resident and a Foreign (Federal) Person resident as your three store front residents done on paper "for you" and those thing's Administration's are what you're authorized to represent commercially as Resident.

So many people who have not dug into this with the veracity that I have, refer this these things as "YOUR STRAWMAN" to help over-simplify the connotation that using those NAMES makes you a "play actor" such as the actor who played "Scarecrow" the in Wizard of Oz --- a fictional man made of straw.

Forget politics, religion and government now for a moment....  as this is all about Commerce / Transportation / Communications / Consumerism and dead person fictional civil language. 

This exemple presents all of these THINGs for you to clearly see with your own eyes.  Don't believe me?  Lots of proof exists.

  • JAMES ALLEN HOMYAK (territorial or foreign) (Federal) (SSN is 9 digits with dashes, eg. 123-45-6789)

  • JAMES A HOMYAK (municipal or domestic) (State) (SSN is 9 digits without dashes, eg. 123456789)

  • JAMES HOMYAK (non-profit or Church) (Baptismal Records created by the Catholic Church)

  • HOMYAK, JAMES A (estate/land) (Land, Deed, Property, Tax and Title Records created by the County)

These three or four THING's each have their own "Business Administration" that you are expected to "Sign for" on documents authored for you as if YOU did the writing. No money can move until you "Sign for" it, to give it credit and breathe life into as if you just contracted in business.

 

Alive and Natural  vs.  Dead and Artificial  (these are Your Commercial Status)

Trying to explain to your Medical Doctor, that "No, I do not present with..." when coming in to the clinic --- as those are civilly dead fictional terms.  "But I have arrived to be cared for as those are my natural living words."  He will repeat out of habit. If you repeat yourself, your Doctor will happily jot in your file that you perseverated. LOL.  All artificial person language. 

 

The key takeaway question is: 

Are you alive and natural or are you artificial and a civil construct?  The whole key to correcting your political status is that you bring yourself back to the living and you bring yourself back to being fully protected by the organic laws, all your unalienable rights and protections restored to you. 

 


 

Here is a quick exercise you can do now. Dig out a stack of mail you've received and take a careful look at how you've been addressed in the ADDRESSEE block on the face of the mailing piece ... I am talking about the text style, ALL CAPS, etc.

I had gotten mail from a medical company COMMERCIALLY ADDRESSED like this:

JAMES ALLEN HOMYAK
PO BOX 424
SHAKOPEE, MN 55379-0424

What do I do about this? I send it back with a letter as shown in my example letters inside  my book, Administrative Record. Why do I send it back?  Because for openers, with the CAPS LOCK on, this is denoting a LEGAL PERSON that can be the following, except for a real man: 

a. Trust
b. Corporation
c. Limited Partnership
d. Individual / Sole Proprietor

These basic four are mischaracterizing my Name, as a Foreign or Territorial subject to an entity, which is a position and standing that automatically equals slavery. In protection of the truth and my best interests, it is my duty to rebut these various presumptions that I am conducting business as a business, subject to taxation, legislation, representation and reporting in a corporate sense.

Now if any of these sorts of solution topics are too difficult for you to comprehend, and if you're thinking "No way am I going to do this!" then perhaps you are right.  Close your browser tab. Forget about all of this. Keep going through life with your boat floating in the mainstream as a happy debtor / taxpayer and subject of criminals.  Remember this: Broad is the road that leads to destruction and many enter by it. Narrow is the road that leads to life and only a few find it. 

 


 

Now for a bit of recent forgotten history...

 

After the 1950's roll-out of a very large "Uniform Commercial Code" had begun across all of the STATE OF STATE enterprises, (50 inchoate states) and, also to govern each of "the Incorporated entities" which have all registered at THE SECRETARY OF STATE, (such as Target Stores, etc.), we had very little hope anymore of living as a truely free people. We got converted so that LIKE THINGS can relate with LIKE THINGS.

Freedoms and rights all got commercially converted into privledges and benefits along with the nationwide acceptance of that wonderful U.S. CITIZEN thing.

As you will learn by the end of this reading lesson, about our American sovereignty, is that our lives are no longer about people. Instead we're all about standing-in for these THINGS IDENTIFIED that get created administratively using our Given Names and then cast upon our backs contractually.

Due to the sheer magnitude of the corporatism that our Civil and Municipal Corporations and their lobbyists and all those elected officials have got going for themselves, in bankruptcy again too, we have mountains of debt which can never be repaid. It is mathematically impossible to pay down such debt especially when is grows faster than it gets repaid. This whole mess is dropped onto the backs of the people who "stand-in" for the political class of the 2nd and 3rd class Citizen -- which is why it is urgent to reclaim your State Citizen standing, and remove the national fraud from your lives. 

It will be shown to you how the entire house of cards is assembled, propped up and it's actually teetering at the brink of disaster -- clamoring to get and keep hold of your children, your properties, your monies and your lives. We see Washington plow ahead with opening up the southern borders!

 

They need more bodies as their stand-ins for the great ponzi scheme.

 


 

Politically and Administratively, you've belonged to a gigantic property management corporation which hasn't been the government that we are owed. 

Today in America we still have distinctions between named places, yet some of the hottest topics about all of this have been desperately occulted (hidden from view) by intentioned people within and behind the technocracy. 

The correcting of your American state national political status takes a lot more thought and preparation than the actual physical writing, recording and administering of your public notice documents.

 


 

For a glimpse into a finished set of Status Correction Documents, go to Solutions > Topic 5  

 


 

Here's a short list of what you can expect to take place (you make this all take place) as far as your documents are concerned:

  1. Download the blank originals of all the document templates which have all been authored by a law firm.
     
  2. Input all your details to personalize the papers for your names, addresses, etc. and print your set of originals (plenty of instructions come too)

  3. Arrange your paperwork for your witnessing day where you have a Public Notary and two family members or two age old friends in the room together.

  4. Purchasing multiple sets of certified copies of your originals, at your Bank office, for example. Ask your Public Notary for a referral to get proper legal/lawful copies. 

  5. Present your certified copy of your (these new) Deed documents to the County Recorder, as an attachment to your existing Real Estate deed, if any.

  6. Notate your permanent paper calendar of events each day as they take place. Keep diligent safe copies of your documents but NOT in a Bank Safe Deposit Box.

  7. Preparing and mailing your NOTICE documents for several of the local / state and national agency heads. Use the registered return receipt mail slips and stickers from the Post Office.

  8. Counting down the elapsed days which pass  - 30, 60, 90, 120 days. Your goal here is known as "tacit procuration" and this is what they did to you at the beginning of your life. This is your right to do. 

  9. Make careful records of which agencies respond and which do not. Expect a ton of silence.  It's like a dose of their own medicine. The more quiet they are, the more you win. 

  10. Prepare secondary NOTICES to send back to any agency that respond to challenge you in doing what is your right to do. These secondary responses will be in the example templates in my book.

  11. Publish your newly declared State Citizen status in the Legal Notices paper at your home county. This tells everyone who you are and gives notice to all who might write to challenge you about some aspect of your big change of leaving the plantation (D.C.).

  12. Mail notices to every organization you do business with informing them that your former U.S. Citizen thing has been retired. Give them 30 days to challenge or rebut or they have to remain silent forevermore.

  13. Put your employer on NOTICE that you have taken charge of any or all Government reporting regarding your indentity. You get to relieve your payroll department of this free duty they have been expected to do for you.

  14. More advanced steps are now yours to take depending on how involved your life is with various contacts and obligations. 

FYI... I have already been living free for 15 years into my actual retirement from the workforce... and now I am also 13 months into my State Political Status Correction, and you know what? I am still here. I am still free. There is a big difference between those who pay taxes and those who live off taxes. My doors weren't kicked in. My car wasn't impounded. The IRS hasn't written me anything legitimate since 2009. Anything they did sneek through got summarily returned with a reminder of the notice which had cured many years ago. The fact remains, the tax system is for federal employees aka U.S. Citizens, but NOT typical Americans standing on the land of their home state, me as a Minnesotan. You as a North Carolinian. 

 


 

Here is a basic listing to illustrate all of this, which is vital that you can comprehend, in your eighth grade english language:

a. Your house is your jurisdiction, that is, if you know what you're doing to preserve and protect this by deliberate steps you must take. Your life needs to become your own internal monarchy.

b. Your townhome community is your landlord's jurisdiction if you are renters, or your homeowner's association's jurisdiction when you are homeowners.

c. Your local City Hall is your local Mayor's jurisdiction, your Police Dept has a Chief, your Fire Station has a Commanding Officer, etc. on and on.

d. Your International borders, within 100 miles, are your Federal Government's jurisdiction.

e. Your Native American reservations are your Federal Government's jurisdiction, as are magazines, dockyards, military bases, post offices and so marked properties.

f. The 50 American states are each of those State's jurisdictions respectively (of course that has gotten so cloudy today based on the commercial PERSON that is paying the bills).

g. The Federal Government has lands and territories ceded to it, by The People upon the States, which never included your private households, not by intention.

h. Our country is a nation of laws based upon the consent of the governed -- a consent which can be revoked for various reasons, namely destructive activities and fraud you can obviously see taking place.

i. Our National and State and County and Local governments exist on paper and in practice - as evidenced by all those staffed buildings  (ask youself what came first, the chicken or the egg).

j. The organic law for this country is a 4-part compendium as its basis, where the above noted boundaries are well established in the associated chain of documents.

k. Go into your local dialysis center to have your kidneys filtered, and guess what?  Yup. Their jurisdiction. Try taking your face diaper off. I won't finish the list through letter z. here but you need to know it goes that far.... and it is about your money and your property leaving you and going to the establishment, either on a fast road or a slow road.

The key is learning how you, by having the presumed political status for your entire life, have unknowingly helped to erase these important boundaries by just simply having [ THEM / Them / them ] presume that you had already permanently consented -- all because of what had taken place upon the first few days of your life. Dear Mother!  (THEM is foreign.  Them is domestic.  them is non-profit. )

You'll be shocked to know this hoodwink is more powerful for [ THEM / Them / them ] than a simple identity theft. I sure was shocked.

My wife left me over this by yelling to me that she'd be damned if I was gonna challenge her upbrining.  Now years later she's figuring it out all by herself. 




While compiling all of this information, I've decided to list "Correcting Your Status" as Step 1 to help make you realize the levity beneath the unruly states of affairs we've been surrounded with.

The real Step 1 is getting yourself re-educated.

Yet the more I drill into this study, I realize you are going to need to unlearn some -if not all- of your public education:

Here are some huge discoveries I've made once I had gotten pointed in the right direction...

  1. There are 50 America states which each are internationally recognized as "nation states" yet we have a commerce / education / transportation / political / economic / social system that has gotten silently redirected after the period of time known as "the Civil War" to what is now known as "the United States" and you are "taken up administratively" just after birth into "the United States" without your home state being the focus anymore. This is a tragic theft of who you are while you're a defenseless newborn. Many people will debate you in conversation about your home state being a nation unto itself. We can reference the Federal Code to see that this is the truth. We can reference each of our State Constitutions and respective Bill of Rights too, which teach us that it was first the people who made their State. Then their State formed its Assembly and made a Federal seat for certain International objectives. That's how the American government was designed.  

  2. Any former president "of the United States" remains as "a President" for the rest of their natural life even after leaving office. This means that all of their policies and executive orders remain in effect unless and until they ever are fully impeached successfully through actions of both the House and the Senate together.  Impeached fully in that manner means, in a nutshell, that they are packed up and carted out of the whitehouse, all acts and executive orders thereby extinguished. Bill Clinton, for example, was only impeached in the House. He stayed put for the most part until his "term" ended. His policies hadn't ended. 

  3. Your children become "wards of the state" upon the successful changing of your birth mother into an unwed informant. Several terrible omissions occur that cause you (as a baby) to be presumed upon in terms of your citizenship and political status.  Years go by.  The truth never comes back to the surface. Why is that?  Can you guess?  

  4. American History, you know, where the truth about the founding of America was taught, has been designed to be completely replaced over decades by powerful men who ran powerful corporations. Today, in place of our true American History, we have a bastardized United States History, seeking to confound scholars and keep them mired in debate. 

  5. Here is where we've stood today (um, been stood up) as Americans, unknowingly, beginning the day we were born:

    • Our name was invented by our Mom and/or Dad -- to start or grow our family. They gave us our Given Name. That's how I'd gotten the James Allen.
       
    • Some excited nurse midwife or hospital administrator came by with a clipboard, etc. Usually always the Mother herself fills in the paperwork right then.

    • Hospital Admin does their part by joining the Homyak part together with the Given Name within these documents and sends off the paperwork as directed by THE STATE and the policies in force.

      • Birth Certificate Application (State)

      • Social Security Application (Federal)

    • Nobody is clearly told what takes place next -- and truth be told, seldom does anyone even ask. How many Moms and Dads go down to Hospital Administration to claim baby? How many people decline both of these services, to say, "No, we'll take care of all this using our family Bible and our family witnesses. We decline your documentation services at this time."

    • STATE OF MINNESOTA  (legislated procedures take place, steps known as State Law)

      • Parents hear the "hearsay" that they cannot be married without a "marriage license" and that document grants the STATE a 3rd party status as a silent partner to your marriage contract as a civil union.

      • A Birth is Registered by the careful transcription of vital information that your mother, acting as their unpaid volunteer informant, provided to them with a smile on her face. Or so they hope.

      • An ESTATE is generated via the Probate Court, one in which the STATE makes itself the Beneficiary and the Mother (presumably unwed) as the Trustee/Executor.

      • Vital Statistics are created, being certain to print the Mom's maiden name on the record. Seldom is the Dad given parental rights on these documents. 

      • The name James Allen Homyak gets converted at or near birth into corporate chattels as JAMES ALLEN HOMYAK to establish the [legal person thing] the poor guy gets to answer to.

      • The STATE sends the Social Security application to the Federal (Contractor) Government which in turn creates the U.S. Citizen (which is like chickens come home to roost).

      • I will go into an exhaustive essay about what this whole shrade does to you, inside your esteemed civil union you knew nothing about legally.

    • Registered to become a thing identified.  To "Regis" means to give up ownership. 

      • James Allen of the Homyak family instantly becomes A INDIVIDUAL who can be sued in Court and who can receive bankruptcy protections and state assistance with probate matters.
        1. HOMYAK, JAMES A  (domestic person)
        2. JAMES ALLEN HOMYAK (foreign person)
        3. JAMES HOMYAK (ecclesiastical person aka non-profit)

    • States (aka corporations) hold the Title to the babies, but parents can get a certified copy as a certificate. The same is done with your Land, your Home and your Automobile if you apply for this Title service.

    • Our status, by the speed of a certain couple of document signings, became a STATE RESIDENT, then a FEDERAL PERSON, then a U.S. CITIZEN, then a Federal Person residing in a STATE OF STATE 

    • Later in life, by way of public policy, education and loads of hearsay

      • Teenager gets a new job and gives a SSN as a condition for becoming employed

      • Teenager gets a Driving Permit as a condition for learning how to legally use (aka Drive/Operate) the family automobile, assumed to be using it in business for financial gain

      • Teenager's Parents, and/or as a young adult, prepares and files their initial Tax Returns, presumed to not intend to bring up the issue of Federal Person vs. state free inhabitant

      • Young Adult gets propositioned to join the Armed Forces, giving up more unalienable rights to help protect our way of life from all enemies foreign and domestic

      • Young Adult registers to Vote (step back to see these are now corporation elections, no different than electing the President of Dairy Queen)

    • The political status of this one male or female is completely presumed by everything that has taken place so far, and what's more...

      • This is patriotic

      • This is how we do things

      • This is what made America such a great country

      • The male or female is not trained to speak in depth in these matters

    •  The folks who screwed America so royally got their start around 1825. They really solidified the mess after 1871 to 1877. Then again after 1913, 1929, 1941, 2020.

      • Lawyers and Attorneys in Congress

      • Lawyers and Attorneys who lobbied members of Congress

      • Coporations from overseas, namely London, France

      • The Pope in the Vatican

    • The fact of the matter remains

      • America is always going to need its multi-tier governments, so this entire website is not an anti-government rant. This web resources NOT hate speech. 

      • 92% of all Americans got themselves mis-characterized by no fault of their own. We did what we heard said that this is what everyone does. Yeah, 192 years later.  

      • Americans stepped into a foreign place administratively, where those over there are so happy, they've become immeasurably wealthy as a cabal of theieves.

      • What is happening to us today is not so much about Politics and Government and Religion.

      • IT IS ABOUT 24 / 7 / 365 CRIME, MURDER, EXTORSION, TREASON, BARRATRY, INLAND PIRACY, IMPERSONATION, COUNTERFEITING, GRAND LARCENY

      • Peace has been declared, and for our 150,000 state nationals, we now have been working around the clock to rebuild where the derailure began during the 1860s.

    • Rather than seek to learn this information carefully and apply it properly, there have been numerous unintended consequences. You need to know so you prepare:

      • Law Enforcement is not being taught that Americans can lawfully, legally and justly declare their state political status and birth-right citizenship as a lawful amendment to the record.

      • Sovereign Citizen is a phrase used by Officers and Court personel. However, such a phrase is an oxymoron. It is impossible to put the two words together as one. 

      • People who decide to get this work done for themselves run hap-hazardly without a concise plan and they can get tripped up by not properly documenting in sequence.

      • The entire "system" played for keeps because deep down, [they] (300 people) knew it was an international cabal of deeply seated criminals buying off any competition.

      • Freedom isn't free. There is a price to pay. That price is having to work, rather than floating automatically in the main stream with everyone else - being led to slaughter.

      • The truely sad fact is how many bureaucrats and public officials have no clue about any of this, because the truth isn't in those public policy operations manuals.

 


 

Due to the fact that so much information exists....

  • What you will soon find, will be hot links over all sorts of content here.
  • Any link you click will dive into that area.
  • For now, just resolve yourself to the recognition that you're about to make your life a whole lot more genuine when you deal with something you never even realized was a topic.

 


 

Status Correction Course At Gemstone University

 

https://www.gemstoneuniversity.org/sc-intro.html

https://www.panterrapca.org/

https://panterravida.org/house-of-peace/

 



People Creating Private Societies & Shedding Their U.S. Citizenship, Why?  -- Part 2:

 
SarahWestall.com
 
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Part 2: Ken Cousens joins the program to discuss how, thru his private society Panterra and his educational program, GemStone University, he is working to create a better society separate for the United States. He explains that the history of the United States is not what we have been taught and that a different version, one that keeps us tied to debt, is more accurate. His view of the world and his teachings is a paradigm shift for most Americans.

You can learn more about him and his work at PanterraPCA.org

 

 
 
Ken Cousens is the co-founder of the Panterra private society and of GemStone University. Cousen’s organizations believe that the history of the United States and of our constitution is not what we have been taught. His organizations teach people a different version of our history and work to establish a different status for it’s members; that of Private American National.

You can learn more about him and his work at PanterraPCA.org or at GemStoneUniversity.org


 
Sharing is Caring - Please share!

 

https://sarahwestall.com/people-creating-new-societies-shedding-their-u-s-citizenship-why/

 

 

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    THE ABUNDANCE PARADIGM: WHY AI FORCES A RETHINKING OF MONEY ITSELF — PART 1

    By Ellen Brown on May 11, 2026

    A Universal Basic Income (UBI) has long been proposed as a way to cushion the blow of jobs lost to automation. Under that model, everyone receives a modest monthly payment – enough to cover basic needs and prevent extreme poverty. 

    But Elon Musk has gone further. On April 16, he posted on X:

    Universal HIGH INCOME via checks issued by the Federal government is the best way to deal with unemployment caused by AI.

    Rather than a subsistence stipend, Universal High Income (UHI) would be a level of income allowing ordinary people to live well in a world where machines do most of the work. Musk has also said that AI and robotics are the only things that can solve the massive U.S. debt crisis. 

    That sounds promising, but where will the government get the money to pay the UHI? Critics say any government that tried it would go bankrupt. There are also other concerns, which will be addressed in Part 2 of this article. Here we will look at the financial underpinnings: why UHI is even thinkable, why AI forces a reexamination of how money enters the economy, why the current system cannot scale to meet what is coming, and the implicit transition needed to meet that challenge.

    Why the Current Money System Cannot Scale

    The national debt of the U.S. government just topped $39 trillion. China’s is $18.7 trillion. Japan’s is $8.6 trillion. Those of the UK, France, Germany, Italy and Spain are each in the multi-trillion-dollar range. Collective global debt now stands at $353 trillion, 305% of the world’s annual economic output. So even if, hypothetically, everything produced in the world in a year were applied toward liquidating the debt, it still would not be enough to pay it all off. 

    In fact the debt can never be repaid, because of the way money currently enters the system. Nearly all of the money supply today is created by banks when they make loans. Banks do not lend their existing capital. The loan itself creates the money. The bank adds the loan amount to the asset side of its balance sheet and balances that sum with the same amount on the liability side. When the borrower withdraws or transfers the funds, either the bank takes them from its reserves in “vault cash” or the Federal Reserve debits the bank’s digital reserve account at the central bank. But the lending bank typically has funds coming into its reserve account at about the same rate as they are going out, so its reserves are continually replenished. Thus a very small reserve account can support a much larger money creation engine. For decades before the Fed discontinued the reserve requirement in 2020, it hovered at around 10%.

    The chief problem with this debt-based system is the interest, which the bank does not create in its original loan. For a typical long-term loan, interest can double the total tab or more. Where is the money to come from to pay this added liability? Across the system as a whole, it must either come from more borrowing or from existing funds. In the case of governments, that means issuing interest-bearing bonds or tapping taxes and other revenues. The interest on the debt compounds, meaning the government is paying interest on interest. This makes the debt increase exponentially, until it is mathematically unsustainable. Then bankruptcies occur, of banks or even whole governments. Booms turn into busts, and the cycle begins again.

    Today, interest on the federal debt is the second largest budget line item after Social Security, exceeding $1 trillion. Meanwhile, workers are losing jobs to AI/robotics, shrinking the income tax base. The system is clearly unsustainable.

    How to Raise Demand to Scale to the Upcoming Supply

    A Universal High Income would replenish the shrinking tax base by replacing the lost wages of unemployed workers. But where will the money come from to pay the UHI? The only sustainable solution is for the government to issue it interest-free. That does not mean through the Federal Reserve, which creates money in the same way banks do: it buys federal interest-bearing securities with accounting entries. The Fed collects the interest, which it is supposed to return to the Treasury after deducting its costs. But since 2008, its costs include paying interest on the reserves of its participating banks, which consumes its profits. (See my earlier article here.) 

    The only interest-free, debt-free solution that will actually increase the money supply sufficiently to match the projected productivity of AI/robotics is for the money to be issued directly by the Treasury.

    This is not a radical new idea. It is authorized in the U.S. Constitution, which provides in Article 1, Sec. 8, that “The Congress shall have Power To … coin Money [and] regulate the Value thereof .…” Abraham Lincoln used government-issued “Greenbacks” to avoid a crippling debt to British-backed bankers. Debt-free government-issued money was also the funding mechanism by which the American colonists succeeded in creating a thriving economy and liberating themselves from the oppressive yoke of the British Empire.

    In his 1729 pamphlet “A Modest Inquiry into the Nature and Necessity of a Paper-Currency,” Benjamin Franklin argued that a lack of currency was a tax on industrious farmers and producers, and that a reliable, locally issued paper currency was the “oil” for the gears of trade. The “Nature and Necessity” of this currency was to facilitate the movement of goods between neighbors. Franklin observed that the British strategy of keeping the colonies short of cash was a method of economic suppression. By forcing the colonies to use gold and silver, which were constantly drained back to London to pay for imports, the Crown kept the colonies in a state of permanent debt and low productivity. When the money supply matched the productive capacity of the people, universal prosperity resulted without inflation. 

    This logic evolved into the “American System of Political Economy” championed by Henry Carey, economic advisor to Abraham Lincoln. He wrote:

    Two systems are before the world… One looks to pauperism, ignorance, depopulation, and barbarism; the other in increasing wealth, comfort, intelligence, combination of action, and civilization. … One is the English system; the other we may be proud to call the American system, for it is the only one ever devised the tendency of which was that of elevating while equalizing the condition of man throughout the world.

    In the context of the 21st century, the “oil” that best lowers the friction of trade is debt-free government-issued money similar to Lincoln’s Greenbacks and colonial scrip. Rather than implementing a radical financial innovation, we would be returning to our roots.

    Inflation or Deflation?

    The chief objection to the colonies’ paper “scrip” was that they tended to over-print, so that “demand” (money) outstripped supply. Too much money chasing too few goods produced price inflation. But in the 21st century, we will soon have the opposite problem: too little money chasing too many goods. Machines don’t need food, clothing, shelter, transportation, medical treatment or other services. So who will buy those goods and services? 

    Money needs to be issued to human consumers, and not just to a few wealthy human consumers serving as debt brokers thriving on interest. To create sufficient demand for the voluminous output of AI/robotics, it needs to go to the whole national population, evenly distributed. Not only can UHI work in that sort of abundant supply without producing price inflation; it is actually essential to prevent deflation.

    In a conversation on X, Musk wrote:

    In a normal economy, issuing more money simply increases the dollar price of the existing output of goods & services, meaning people do NOT get more stuff. If AI/robotics massively increase goods & services output, then you actually MUST issue dollars to people or there will be massive disinflation. 

    As paraphrased on Yahoo Finance (reposted from Benzinga), Musk wrote that handing out more dollars becomes a problem only when the economy’s supply of goods and services fails to surge alongside the money supply. His claim is that AI and robotics could lift production so sharply that the bigger risk would be falling prices, not rising ones.

    But aren’t falling prices a good thing? In this case, no. Prices would be falling due to a lack of demand, meaning producers can’t find customers for their products. They wind up laying off workers and eventually going bankrupt. When spread across the whole economy, the result is a deflationary spiral: prices fall, businesses lose revenue, and the economy contracts, not because production is inadequate but because purchasing power is insufficient. The result is recession or depression. In the Great Depression of the 1930s, food was rotting in the fields while people were starving, because they were out of work and had no money to spend. 

    Job cuts from AI are already happening. According to the same Benzinga article:

    Evidence of near-term strain is showing up in corporate announcements: employers disclosed more than 27,000 job cuts linked to AI in the first quarter of 2026, according to Challenger, Gray & Christmas. The outplacement firm said that figure was up 40% from the same period a year earlier. 

    Robert Reich reports that wages are around two-thirds of the typical corporation’s total cost, and that in the first four months of 2026, big U.S. corporations cut over 128,000 jobs. 

    How Soon Will All This Happen?

    Another Benzinga article, reposted on Yahoo Finance on March 16, detailed Musk’s projected time frame:

    Speaking remotely to the Abundance Summit last week, Musk told XPRIZE founder Peter Diamandis that the global economy is on the verge of an explosion so massive it defies historical precedent.

    “I’d say the economy is 10 times its current size in 10 years,” Musk said, before quickly clarifying that the growth could be even more explosive. “Greater than,” he added, framing the projected shift in economic output as a “fairly comfortable prediction.” …

    Ray Kurzweil, author of The Singularity Is Near, sees AI reaching Artificial General Intelligence (human-level intelligence across virtually all domains) by 2029, and full transformative abundance by 2045.

    Other experts question these time projections, but a radical transformation of traditional manufacturing and trade is likely to happen sometime in the reasonably near future. The question is, will the money system transition soon enough to rescue all the laid-off workers from homelessness and famine?

    The Sovereign Wealth Fund Alternative

    There is another model for distributing the gains of automation, one that can be phased in gradually as the AI workforce expands. It comes from Sam Altman, CEO of OpenAI. In an ironic twist, Altman and Musk, who jointly founded OpenAI in 2015, are now locked in a high-profile legal battle over whether Altman diverted Musk’s $44 million investment to transform what was conceived as a nonprofit “for the benefit of humanity” into a highly lucrative for-profit enterprise.

    That dispute aside, Altman’s alternative model for sharing AI-generated wealth is a national sovereign wealth fund seeded by the profits of AI and robotics. His proposed American Equity Fund would take public stakes in the companies and technologies driving automation, capture a portion of the resulting productivity gains, and distribute them as universal dividends. The Fund would not replace a Universal High Income but would complement it.

    This approach has several advantages. It ties payments directly to real output, scales automatically with productivity, and can be introduced gradually, avoiding the shock of issuing large payments before the supply side has fully expanded. It would resemble the Alaska Permanent Fund, which distributes oil revenues to residents, except that here the resource would be the most powerful general-purpose technology since electricity.

    Conclusion: A New Monetary Logic for a New Productive Era

    For centuries, money has been issued as a claim against the future productivity of human labor, repaid from the income that labor generates. The logic of this debt-based system collapses when machines become the primary producers of goods and services. Then the limiting factor becomes purchasing power — the ability of human beings to access the abundance their own technologies create. That requires a monetary architecture that expands with output rather than debt, and distributes income not through wages alone but through mechanisms tied to the productive capacity of the whole system.

    Universal High Income and a sovereign wealth fund are two ways of doing that. One ensures a stable floor of demand; the other ensures that the public shares in the gains of automation. Both would be grounded in real production. But for the public to have access to those gains, the money supply needs to expand in proportion to the expanding pool of goods and services. This can be done by restoring the innovation our forefathers baked into the Constitution: debt-free money issued by the government itself.

    How to fund a UHI without triggering inflation or driving the government into bankruptcy is the first objection critics raise, but there are others. They argue that people would stop working or stop learning, that society would collapse into idleness or chaos, that life would lose meaning without jobs, that the government would have the power to control how people spend their money.  Will a UHI ring in the promised utopia or lock us into a state-controlled digital prison? Part 2 of this article will address those concerns. 

    _______________

    This article was first posted as an original to ScheerPost.com. Ellen Brown is an attorney, founder of the Public Banking Institute, and author of thirteen books including Web of DebtThe Public Bank Solution, and Banking on the People: Democratizing Money in the Digital Age. Her 400+ blog articles are posted at EllenBrown.com.tom of Form

     

     

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    Posted By: The_Fox [Send E-Mail]
    Date: Thursday, 1-Dec-2022 05:31:08
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