THE NEW "REDEMPTION PROCESS"
(posted Aug. 16, 2017)
United States government issues lots of securities and the job
of Treasury is to sell those securities and pay them at
maturity. Often, Treasury conducts auctions to sell various
securities as explained here.
In the past, there were actual bonds that would be sold, however
today, these bonds have been replaced with bookkeeping entries.
A Treasury Direct
Account (“TDA”) is simply an account a company or private party
opens at the Treasury to buy and sell securities held in that
account. That account is simply the vehicle by which various
Treasury securities are held, as explained by 31 C.F.R., part
What is the TreasuryDirect system?
Here, this part in 31 CFR
is linked, and various sections thereof are highlighted in
yellow for your convenience. No American has an account like
this unless he actually opens it, and then buys some securities.
And of course, an account owner may sell those securities back
to Treasury or another party.
From 1999 through 2002,
Roger Elvick, Dave DeReimer and Jean Keating developed and
promoted the “redemption process.” Simply stated, they asserted
that as a result of the enactment of the 1935 Social Security
Act, an account was established for every American into which
large amounts of funds were deposited. This account was
allegedly the TDA. To gain access to these funds, one needed to
engage in “redemption,” a process whereby, using UCC procedures,
the “strawman” (that fake “names in CAPS” dude) was “captured.”
After having captured the “strawman”, one could gain access to
the funds in the TDA simply by writing checks drawn on the US
As a result of the
promotion of this “process,” lots of people started writing
checks, payable by the US Treasury, to purchase homes, cars,
boats, and many other items. But by 2002, lots of indictments
were flying, charging violations of 18 U.S.C. §514. A more
detailed discussion of this process and these events is posted here.
Frankly, it is crazy to write a hot check drawn on the US
Now, Harvey Dent, “Fake
Judge” Anna von Reitz, and Heather Ann Tucci-Jarraf are
resurrecting this old and baseless argument, with minor changes.
Now, rather than going through the “redemption process”, a
follower of this contention merely needs to write hot checks
with various and ever-changing ideas about the check routing
numbers. They claim that every American has a TDA in which large
amounts of funds are on deposit or soon to be deposited. This is
a false claim. And if you write some check to pay others to whom
you are indebted, there is the very real possibility that you
can be charged with writing bad checks.
system (TreasuryDirect) is an online account system in which
you may hold and conduct transactions in eligible bookentry
§ 363.10 What is a
account is an online account maintained by us solely in your
name in which you may hold and conduct transactions in
eligible bookentry Treasury securities.
§ 363.11 Who is
eligible to open a TreasuryDirect account?
Only an individual or
an entity is eligible to open a TreasuryDirect account. In
order to open a TreasuryDirect account, an individual or
entity account manager must have a valid social security
number (SSN), be 18 years of age or over, and be legally
competent. An entity must have a valid SSN or employer
identification number. The account owner must have a United
States address of record and have an account at a United
States depository financial institution that will accept
debits and credits using the Automated Clearing House method
You are Warned!!!!