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The History
The original American Government as of 1781, consisted of: a Union, a Federation, and a Confederation of different kinds of "states" and "states of states" operating in different jurisdictions – and there is a hard and fast demarcation between Soil/Land and Sea/Air.
The Soil/Land jurisdictions are populated by people, that is, Lawful Persons.
The Sea/Air jurisdictions are inhabited by persons, that is, Legal Persons.
And never the twain shall meet, like the land is separated from the sea.
The only interface is located in international jurisdiction where Lawful Persons populate the land and Legal Persons inhabit the sea, and they may be converted either unlawfully or lawfully, one into the other.
What we are doing by reclaiming our birthright political status as American State Nationals and American State Citizens and by expatriating from all presumed Territorial and Municipal citizenship(s) is to lawfully convert Legal Persons back into Lawful Persons.
We are explicitly declaring our political status and officially returning our Good Names, our Trade Names, to the Soil/Land jurisdiction of our actual States of the Union. We are doing this specifically and one by one serving Notice on the Public Records of the commercial corporations operating the Sea and Air jurisdictions so there can be no further "accidentally on purpose" mistaking us for 'US Citizens" or "Citizens of the United States" or "citizens under the 14th Amendment" to the Territorial Constitution reconfigured as the Articles of Incorporation for a Scottish Commercial Corporation that went bankrupt in 1907.
So what is a "State of the Union"? It's the soil jurisdiction Union of republican states being referenced, which holds the underlying land jurisdiction States as possessions. You could just as well read it as "State belonging to the Union" in the sense of ownership, while the State itself is a member of The United States of America, an unincorporated Federation of States.
In the same way, the States of States that were members of the original Confederation of States belonged to the States in the sense of ownership. Georgia owns The State of Georgia, which operates under Georgia's Sovereign Letters Patent.
The State of Georgia which has been mothballed since 1868 along with all the other actual Federal States of States is an American State Corporation held under Sovereign Letters Patent.
These States of States can be called Federal States of States, since they belong to States that are members of the Federation of States, or they can be called Confederate States because they are members of the States of America Confederation formed under The Articles of Confederation in 1781.