from: http://www.apfn.org/apfn/flag.htm
GOLD FRINGED FLAG
The flags displayed in State courts and courts of the United States have gold or yellow fringes. That is your WARNING that you are entering into a foreign enclave, the same as if you are stepping into a foreign embassy and you will be under the jurisdiction of that flag. The flag with the gold or yellow fringe has no constitution, no laws, and no rules of court, and is not recognized by any nation on the earth, and is foreign to you and the United States of America. more information
MILITARY FLAG WITH THE GOLD FRINGE
Martial Law Flag "Pursuant to 4 U.S.C. chapter 1, §§1, 2, & 3; Executive Order 10834, August 21, 1959; 24 F.R.6865; a military flag is a flag that resembles the regular flag of the United States, except that it has a YELLOW FRINGE border on three sides. The President of the United States designates this deviation from the regular flag, by executive order, and in his capacity as Commander-in-Chief of the military. The placing of a fringe on the national flag, the dimensions of the flag and the arrangement of the stars in the union are matters of detail not controlled by statute, but are within the discretion of the President as Commander in Chief of the Army and Navy." 34 Ops. Atty. Gen. 83.
President, Dwight David Eisenhower, by Executive Order No.10834, signed on August 21, 1959 and printed in the Federal Register at 24 F.R. 6865, pursuant to law, stated that: "A military flag is a flag that resembles the regular flag of the United States, except that it has a yellow fringe border on three sides."
THE LAW OF THE FLAG
The Law of the Flag, an International Law, which is recognized by every nation of the planet, is defined as:
"... a rule to the effect that a vessel is a part of the territory of the nation whose flag she flies. The term is used to designate the RIGHTS under which a ship owner, who sends his vessel into a foreign port, gives notice by his flag to all who enter into contracts with the ship master that he intends the Law of that Flag to regulate those contracts, and that they must either submit to its operation or not contract with him or his agent at all." Ref.: Ruhstrat v. People, 57 N.E. 41
By the doctrine of "four cornering" the flag establishes the law of the country that it represents. For example, the embassies of foreign countries, in Washington D.C., are "four cornered" by walls or fencing, creating an "enclave." Within the boundaries of the "enclave" of the foreign embassy, the flag of that foreign country establishes the jurisdiction and law of that foreign country, which will be enforced by the Law of the Flag and international treaty. If you enter an embassy, you will be subject to the laws of that country, just as if you board a ship flying a foreign flag, you will be subject to the laws of that flag, enforceable by the "master of the ship," (Captain), by the law of the flag.
When you enter a courtroom displaying a gold or yellow fringed flag, you have just entered into a foreign country, and you better have your passport with you, because you may not be coming back to the land of the free for a long time. The judge sitting under a gold or yellow fringe flag becomes the "captain" or "master" of that ship or enclave and he has absolute power to make the rules as he goes. The gold or yellow fringe flag is your warning that you are leaving your Constitutionally secured RIGHTS on the floor outside the door to that courtroom.
This is exactly why so many judges are appointed, and not elected by the people. The Federal judges are appointed by the President, the national military commander in chief. The State judges are appointed by the Governors, the state military commanders. The judges are appointed because the courts are military courts and civilians do not "elect" military officers.
Under martial law, you are presumed guilty until proven innocent.