When Did Jim Traficant Declare the American Bankruptcy from the Floor of Congress?

When Did Jim Traficant Declare the American Bankruptcy from the Floor of Congress?

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During a speech on the floor of Congress, Jim Traficant declared the American bankruptcy on March 17, 1993. While C-SPAN provides clips of this speech, some sovereign citizen and fringe groups have used it to promote false legal theories.

The myth vs. the reality
Traficant claimed that the U.S. had declared bankruptcy, citing the Emergency Banking Act of 1933 and asserting that the U.S. Treasury was now defunct.

What did Jim Traficant think about the Emergency Banking Act of 1933?

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Based on his political career and public statements, there is no record of Jim Traficant ever commenting on the Emergency Banking Act of 1933. The act predates his time in public office by many decades. Traficant was born in 1941, eight years after the act was passed.

However, his political views later in life suggest he would have been strongly opposed to such legislation.

The Emergency Banking Act of 1933
This was a New Deal law passed in 1933 in response to the banking crisis of the Great Depression.

It gave the president broader regulatory control over the nation's banking system and allowed for the temporary closure and inspection of banks to restore public confidence.

Jim Traficant's political views
Anti-Federal Government: Traficant was known for his distrust of federal bureaucracy and regulation. This philosophy is at odds with the centralization of power over the banking system that the 1933 Act represented.

Anti-Establishment Populism: He was a staunch economic populist who often positioned himself against powerful financial institutions. The Emergency Banking Act, which consolidated the power of the federal government and the banking establishment, would likely have been viewed as a betrayal of the common person by Traficant.

Federal Reserve Criticism: Later in his life, after his time in prison, Traficant launched a campaign to put pressure on Congress to get rid of the IRS and to "divorce" the Federal Reserve. This outright hostility toward the central bank suggests he would have had an equally, if not more, negative view of the emergency banking legislation that strengthened federal control.

He also promoted the idea that the country and its citizens were under the control of international bankers and the Federal Reserve.

While his speech did mention these points, the notion of a secret national bankruptcy is false and not supported by legal or historical fact.

The so-called "bankruptcy" theory is a staple of sovereign citizen ideology. Traficant was known for having anti-establishment views and frequently spoke in dramatic and unconventional ways.

Why is the Emergency Banking Act of 1933 in the Congressional Record called the "Crime of 1933"?

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During the congressional debate over the Emergency Banking Act of 1933, some critics referred to a specific section as the "crime of 1933" because they feared it could lead to the demonetization of silver. The reference was a direct parallel to the "Crime of 1873," when silver was demonetized, causing economic harm to silver producers.

Why opponents used the term "crime of 1933"
A "joker" in the bill: Opponents argued that a small, seemingly innocuous provision, or "joker," in the legislation would expand the President's authority under the Trading with the Enemy Act of 1917. They feared this provision would be used to take the U.S. off the gold standard and demonetize silver, similar to what happened in 1873.

Reference to the "Crime of 1873": The critics intentionally invoked the "Crime of 1873," which was the legislative action that demonetized silver and ended bimetallism in the U.S.. This move caused a contraction of the money supply and led to economic distress, especially for farmers and debtors. By using this comparison, opponents of the Emergency Banking Act were suggesting that the 1933 legislation would lead to similar negative consequences.

Context of the Emergency Banking Act
Passed during a crisis: The Emergency Banking Act was a critical part of President Franklin D. Roosevelt's response to the banking crisis during the Great Depression. After thousands of bank failures, Roosevelt declared a national "bank holiday" to stop panic and bank runs.

Aimed to stabilize the banking system: The act was swiftly passed by Congress, with many members not having time to read the full text, due to the urgent need for action. It provided federal examiners the authority to inspect banks and only allowed financially sound institutions to reopen.

Restored confidence: When solvent banks reopened, public confidence was largely restored. However, the opposition's concerns about potential for overreach or negative economic consequences were a notable part of the historical record, even as the act was credited with ending the immediate banking panic.

Congressional Record-House
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the " crime of 1933 "-for it was in some similar manner, if my reading of history ls correct, that the Congress 60 years ago was led to demonetize silver ...
52 pages

March 17, 1993 Congressional Record
Congress.gov
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Mar 17, 1993 — As a cospon- sor of this legislation, I believe that. Congress must call upon President. Clinton to convene a war crimes court to bring those ...

HOUSE OF REPRESENTATIVES-Tuesday, March 9, 1993
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Mar 9, 1993 — It is unfair to make the el- derly and disabled Americans pay the bill that the big spenders in Congress are running up, $1 billion of debt each.

Mr. Speaker, we are here now in chapter 11. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. ...

SENATE-Tuesday, September 22, 1992
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Sep 22, 1992 — ... JIM TRAFICANT, has worked tirelessly on this matter, has appeared ... chapter 11 of title 38, United States Code. SEC. 3. ADDITIONAL ...

Traficant: The Congressman Of Crimetown
2015 ‧ Documentary/Crime ‧ 1h 28m
Ex-Congressman Jim Traficant a fearless prophet targeted by a vengeful government or a mobbed-up political pariah that violated his people's trust.

The reason for government to exist:

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The phrase "to secure these rights, governments are instituted" is from the U.S. Declaration of Independence, asserting that governments exist to protect the inalienable rights people possess, such as life, liberty, and the pursuit of happiness. This concept reflects social contract theory, where people create governments to provide order and protect their rights from threats that would arise in a lawless "state of nature".
Key Aspects

Purpose of Government:
The primary function of government is not to create rights but to safeguard them.
Consent of the Governed:

The just powers of a government, according to the Declaration, are derived from the approval and participation of the people it governs.

Natural Rights:
The rights being secured are considered "self-evident," "unalienable," and endowed by a creator, rather than granted by the government itself.

Social Contract:
The idea of people forming governments is rooted in social contract theory, where individuals give up some personal freedom to gain the security of having their natural rights protected by an organized government.

Consequences of a Lawless State:
Without government, even the decent might succumb to "selfish passions," and the weak would be vulnerable to the strong, leading to a chaotic existence rather than a secure life, liberty, and happiness.

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