Is the gold fringe on a flag proof that we are living under martial law?

If the flag touches the ground it must be burned: False. The code does say the flag should not be allowed to touch the ground but there is no requirement in the code that a perfectly good flag needs to be burned if it does so

Only The American Legion or The Boy Scouts are allowed to retire US flags by burning them: False . Those fine organizations are not the only ones allowed to do so and do not claim to be. They both have fine ceremonies to retire worn flags. Other groups such as The Girl Scouts do too. As well, any private person may do so on his own. The Flag Code only calls for a worn out flag to be "destroyed in a dignified way, preferably by burning." It does not restrict flag retirement by burning to any one group. In fact, it does not restrict the destruction to burning.

The gold ball on top of a flagpole contains a razor blade, a match and a bullet: False. I've seen inside lots of gold balls and have never seen anything in there other than New York air. This myth gets told in different variations and is invariably accompanied by an explanation something like this: As the invading hoards are bearing down on his hopeless position, the last man standing can at least have time to get the razor blade, shred the flag, burn the pieces and then do himself in with the bullet. The story never includes the explanation as how he is supposed to get up to the top of the flagpole.

The gold fringe on a flag is proof that we are living under martial law: False. Fringe On Flags

It is improper to fly the American flag in the rain: False. The Flag Code Title 4, Chapter 1, Section 6 specifically allows this practice if "an all weather flag is displayed." The code is silent on what an all weather flag is, but the intent sure sounds like it means a flag that is able to stand up to the conditions. Even very light weight flags can do so. They just will not do so as long as the better models.