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The only other argument was that the ATF agents figured he knew he was cutting off the shotgun barel (at their behest) and selling an illegal arm for a whopping $300.00 to people he did not know very well because he needed the money (something else they could check--his financial situation), and were simply interested in the weapons charge.

Not likely in an area swarming with people looking for an 'in' to infiltrate separatist/supremacist organizations.

But maybe they just wanted him on a gun charge, if so why him?

It has been argued he was some sort of 'evil anti-government person', a religious zealot (ever notice how that is reserved for Christians, not Muslims), a crackpot, etc., etc., which is a standard demonization tactic, (one which was later practised more intensely at Waco with Koresh, along with other allegations).

They (ATF/FBI) were not making progress infiltrating these sort of organizations: in small towns and rural areas people can be slow to warm to people who are obviously from elsewhere.

The saying goes that the one in the room yelling most loudly to "blow it up" or "burn it down" is usually the informant.

It has become a (standard, unfortunately) tactic for LEOs to find someone to lean on, (a welfare mom with a small amount of pot is a sure winner in some areas), lean on them (threaten to take their kids away), and get them to inform on others. Sooner or later someone who is someone gets snared, and either turns on someone bigger or takes the rap.

The sad part is that this was being used against people who may believe differently (as is their right), instead of very real threats.

How ironic that this happened during the administration of the first president to proclaim that "The New World Order" had arrived, none other than GHW Bush.

He also went on to completely cut off access to ownership of new class III firearms to any but LEOs and Military, not only limiting the supply of class III firearms, but causing their prices to rise dramatically as well.

Is there some 'grand conspiracy' against our nation by people intent on world government?

I do not claim to know. I do know that theories arise out of an attempt to explain observed pheomena, and the theory (and the phenomena) have been out there for a while.

In the meantime, our borders remain unsecured, plans have been laid for mega trade corridors, and our nation is less materially independant and industrially capable than any time in the past 60 years. YMMV.