And why is it possible?
Because the whole thing regarding to the state, laws and your rights, etc. goes waay deeper that most people know.
That's why power can be abused.
Summarized:
Freedom - The NAME Game http://www.youtube.com/watch?v=XAeqwGPe-y0
More elaborate:
Choosing Freedom:
(intro) http://www.youtube.com/watch?v=1J9gRNPWf6s&playnext=1...
(actual) http://www.youtube.com/watch?v=szOXoSmq3ZI http://www.youtube.com/watch?v=yxq2WPMh3Q4 http://www.youtube.com/watch?v=8eSxizdBNG4 http://www.youtube.com/watch?v=_QlixCmNrJI http://www.youtube.com/watch?v=hZ4dDem5xTI
(England) Magistrate fails to prove Juristiction - Freeman Dismisses case.pt.1 & 2 http://www.youtube.com/watch?v=hj7yaqBFCh0 http://www.youtube.com/watch?v=Fkn6itUI4yA