The World Awakens!
In a time of unprecedented global awakening, the peoples of the nations are rapidly becoming aware of how they’ve been kept in financial bondage for centuries. The veils of deception and fraud carefully woven by a malevolent Money Power[1] are being torn apart like spider web in a gale. The outrageous criminality imposed upon mankind for generations is finally exposed for all to see.
People are fast discovering how a cunning cabal of banksters[2] conned them into giving up their labour, their property, and their freedom. They now see how years of their precious energy and toil have been stolen from them by financial terrorists who have long kept humanity in a wretched state of debt, misery, and fear.
But now the tide of wakefulness is rising fast. A tsunami of anger and indignation is beginning to roll towards the banksters and their political camp followers. A worldwide revolution against villainy and corruption grows by the day. The masses are demanding truth and justice, and the cry of their fury is fearsome and foreboding.
Fraudsters beware! Beware of the hordes who are rising from their slumber. Beware of the people who have caught you plundering. Beware of the wrath of the wronged. Beware of the thing that is coming… tyrants… hypocrites… liars!
Fearful of the risen people, the criminal syndicates who run the world from behind the facade of governments and suborned global institutions are terrified of losing their ill-gotten wealth and privileges, and perhaps their lives.
Zbigniew Brzezinski, a Bilderberger and co-founder of the Trilateral Commission, recently addressed the Council on Foreign Relations in Montreal and warned his fellow elitist villains about this new “global political awakening”[3].
Brzezinski said: “For the first time in all of human history mankind is politically awakened – that’s a total new reality – it has not been so for most of human history.”
Brzezinski bewailed the fact that the whole world had awakened politically and was now “consciously aware of global inequities, inequalities, lack of respect, exploitation.” He lamented that an enlightened people would no longer tolerate financial slavery and serfdom nor would they allow the stealthy move towards a single world currency which would mean complete domination of the world by the international banksters.
The People Versus The Banks
More than a century ago Lord Acton said, “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”
That fight has now been joined.
In recent years, a growing number of people throughout the world are stumbling upon a massive deception that the banksters and their vassals have been fiercely trying to keep secret for years. It’s a secret so incredible that the mind will not accept the truth of it on a first hearing.
The secret?…
…It is the borrower and not the bank who truly funds the loan!
That may seem an incredible hypothesis.
But it’s true. In most loan transactions, banks do not lend out their money; first, they receive the full amount from the unwitting borrower himself, then they deceitfully loan it back to the borrower as if it had originally come from their own assets, and they charge punitive rates of interest to boot.
The idea is so preposterous that one’s first inclination is to dismiss it as hokum. But let’s have a quick look at the origins of modern banking before we explain how the borrower is, in all actuality, the lender. And at the end of this article we’ll show how you can lawfully get out of debt and have your loans written off; it involves challenging the banksters from a position of truth, knowledge, and personal empowerment.
There has been much dishonesty and trickery in the field of banking since the set-up of the Bank of England in 1694. Although misleadingly called the “Bank of England” it did not belong to the English Government or to the English people. It was a private bank that dealt in deceptive practices for private profit.
The Bank of England practised ‘fractional reserve lending’, a counterfeiting process which permitted the bank to lend out more money than it actually possessed. At the inception of the Bank of England, the fractional reserve ratio was set at 2 to 1. That meant it could lend out and collect interest on twice as much money as it really owned.
Fractional reserve ratios soon ran out to 3, 5, and 9 times the amount of bank reserves, and in some cases to many multiples of these amounts. Although modern capital reserves are generally set at a minimum of 8% (a lending ratio of 12½ to 1) some banks, such as those in Canada, Australia, and elsewhere have no requirements at all (see Wikipedia – Reserve requirement).
Fractional reserve lending is a gigantic confidence trick that allows banks across the globe to create money out of thin air and charge interest on it. Charging interest on money created out of nothing is a crime known as usury. Incredibly, governments permit it without question and a compliant judiciary accommodates banking fraud in the courts every day of the week. In bygone days, usurers were put to death; but today they live in opulence like emperors and consider themselves above the law.
The criminality of modern banking owes its origins to the double-dealing goldsmiths of the Middle Ages. The goldsmiths owned secure vaults where they would store gold and silver coin and bullion for their clients for a fee. When a merchant stored gold with the goldsmith he was given a receipt, or chit, for the amount of his deposit. Soon these chits were traded in the marketplace at face value; they were more convenient and safer than carrying gold around.
The goldsmith, also a money lender, began to lend out chits instead of his gold. At first, these chits were fully backed by an equivalent amount of gold in his vault. Then it wasn’t long before he cunningly progressed to lending out chits backed by his depositors’ gold – without the depositors’ knowledge or consent. Soon, the devious goldsmith found that he could get away with even more blatant skulduggery.
He noticed that only 10% of his depositors ever turned up to reclaim their gold from his vault. This observation led the audacious goldsmith to lend out 10 times more chits than he actually possessed in gold. That meant that nine tenths of his loans were backed by nothing of value, merely conjured up out of thin air. And if 10% of his depositors ever returned for their gold he would have enough on hand to satisfy their requirements.
Life was suddenly becoming very rosy for the wily goldsmith. By charging interest on non-existing gold he extorted a vast fortune from his clients. Just like modern banking today.
But greed begets greed and it wasn’t long before the avaricious goldsmith began to ponder on a method to loan out chits backed by no gold at all. If he could pull this off he would surely become master of the world. Regrettably, events show that he has indeed pulled it off, and he is indeed master of the world.
It might have begun this way…
The goldsmith purchased some bread and savouries in his local bakery and the bill came to five shillings. He didn’t have cash on him but the baker, knowing he was good for the money, agreed to accept his IOU for 5s. When the miller came to the baker for payment for flour he also agreed to accept the goldsmith’s five shilling IOU in place of cash. And the miller in turn paid the farmer for his wheat with the IOU, and the farmer paid his labourer, and the labourer paid the innkeeper for beer, and so on and on…
The shrewd goldsmith noticed that his IOU never came back to him to be redeemed for five shillings in coin but was accepted and perpetually transmitted as cash by everyone in the community. What had cost the goldsmith nothing but a scrap of paper and ink was exchanged for valuable goods and services by all who accepted it.
In fact, the goldsmith had effectively stolen the labour and the goods of the baker, the miller, the farmer, and the others. He had contributed nothing to the production of wealth in the community but had undeservedly shared in its benefits. In the animal kingdom, such a freeloader would be known as a parasite or bloodsucker. In human terms he would be called a thief.
The goldsmith became excited about his experiment with his IOU. If only he could compel the government to make his IOUs legal tender and force the people to trade exclusively with them he would be wealthy beyond comprehension.
As time went by, the mega-rich goldsmith became even richer and his decadent offspring eventually evolved into the international banksters we know and detest today. Through their immense wealth this criminal banking cabal has come to wield unwarranted control over heavily indebted governments, businesses, and individuals throughout the world.
The Banksters Control The World
Sadly, today, the global banksters have finally realized the vile aspirations of the goldsmith – to issue IOUs backed by nothing of value whatsoever, and all with government approval and enforcement. The process took many years of scheming and planning and included strategic goals of infiltrating governments and debasing politicians and the judiciary.
President Franklin D. Roosevelt, whose family had a long history in banking, ended domestic convertibility of the U.S. dollar to gold in 1933 when he ordered the seizure of all gold held by private citizens and corporations and made it illegal for private citizens to possess gold. (Many people today believe Roosevelt exceeded his jurisdiction and is guilty of treason.)
The coup de grâce was delivered in 1971 when President Nixon unilaterally cancelled the direct convertibility of the U.S. dollar to gold for all international holders of U.S. currency, transforming the dollar into a fiat currency. Fiat, in Latin, means “Let it be done.” It means that the dollar was no longer convertible to gold or anything else of value and only had worth because the government decreed it so.
Because so many of the world’s currencies were fixed to the U.S. dollar, they quickly became fiat too. They are all backed by nothing and cannot be redeemed at the bank for gold or silver or anything else of value. They are perpetual IOUs that never have to be paid, just like the old goldsmith’s five shilling IOU.
The banks create these currencies at virtually no cost to themselves and people are forced by government decree to exchange their goods and services for them, in effect giving up their priceless life’s energy to the banks for worthless bits of paper. In this way, the banksters steal the labour of billions of people in what is the greatest robbery in the history of mankind.
Banksters control and manipulate the people of the world through debt. Most nations on the planet are prisoners to bank debt, debt created by the banksters out of thin air. Such nations and their peoples are no longer sovereign. They are effectively ruled by The Money Power. Proverbs 22:7 says, “The rich rules over the poor, and the borrower is the slave of the lender.” The international banksters have achieved what all the Hitlers, Caesars, and Alexanders have continually failed to achieve – total dominance of the people and the nations of the world.
Modern banking is a colossal Ponzi scheme. 95% of the money in the world today is created as a debt, a debt owed to private banks. This includes private debt, corporate debt, and government debt. Banking is a well-planned swindle that is totally rigged in favour of the banksters. And it is ingenious. When creating loans, the banksters only create the principal, never the interest. With long term loans, the interest can amount to one and a half times the principal or more. Over time, a mortgage of $200,000 might reach in excess of $500,000, including interest.
If the banks create $20 billion, say, in a given period, borrowers will have to pay back some $50 billion. How can they pay back more money than has actually been created? It is impossible, and that’s the way the banksters have designed it. Borrowers then have to borrow more and more money to increase the money supply to pay both the principal and interest on older loans, but that means more interest and then more borrowing to find more money to pay the new interest on the newer loans, and so on, ad infinitum.
Debt then grows exponentially until it become so huge that even the interest is unpayable. The banksters foreclose on their securities, in accordance with their premeditated Ponzi scheme, and the property and wealth of the world is increasingly transferred to them. It is all a game of Monopoly, except that the losses are for real and are utterly catastrophic in human terms. How many readers have actually beaten the banker in the board game of Monopoly? Not many, no doubt. The banksters have rigged the money game and they have chained us to a treadwheel of debt that turns faster and faster with every new loan.
Who Is The Borrower And Who Is The Lender?
Now, to get back to the great deception about the borrower and whether he or the bank is actually the lender…
Most people think that when they borrow money, the bank lends them its own money from its cash vaults. A good many think that this is depositors’ money; some think it is money belonging to the bank’s shareholders. And others think the bank borrowed it from a bigger bank. (Where did the bigger bank get it from?)
In any case, all borrowers seem content to sign a pledge or promissory note saying that if they default on the loan the bank is entitled to seize their property to make up the losses it incurred by loaning them its money in the first place. And the borrowers believe that their pledged promissory notes are held by the bank in a secure vault until such time as a default occurs.
That is not the case at all.
Many borrowers will be disconcerted to find out that the bank is prohibited from lending out depositors’ money, unless it has permission in writing from every one of those depositors. (Have you ever gone to your bank to withdraw your money and were told that the bank didn’t have it, that they’d loaned it to someone else? Never!) Banks are not permitted to lend shareholders’ money either; that money must be lodged as reserves with the central bank. And it is illegal for most banks to lend out their own credit or to ‘kite’ cheques.
So where does the bank get the money it “loans”?
The truth is that the bank doesn’t have any money to lend you. When you walk in the door, their eyes light up because you’ve brought the money with you. What they need from you is your signature, on a loan application or promissory note. While you may think you’ve just given them a signed pledge to pay them back their money, you’ve actually given them a signed cheque for the full amount of the loan.
The promissory note you’ve gifted to them is a negotiable instrument that a bank can quickly convert to cash, sell to an investment bank, or use to purchase government bonds. The bank treats your promissory note like a cheque and stamps the back of it “pay to the order of ABC bank, without recourse” and lodges it in a transaction account in your name, as an asset of the bank. (But they don’t tell you that.)
We know that promissory notes are valuable and are used to fund loans because the Federal Reserve Bank tells us so. In Modern Money Mechanics, published by the Federal Reserve Bank of Chicago, it says on page 6:
“[The banks] do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers’ transaction accounts. Loans (assets) and deposits (liabilities) both rise by [the amount of the loan]. Reserves are unchanged by the loan transactions. But the deposit credits constitute new additions to the total deposits of the banking system.”
There is a lot of information in those six sentences. Here we have it confirmed from the Fed itself, one of the biggest central banks in the world, that money is not loaned out of customers’ deposits because no additional money would be created. Therefore, each new loan must create new money. In order to bring this new money into existence the bank monetizes your promissory note and lodges it as an asset of the bank. Of course, they also balance it on their books as a liability because this money is legitimately owed back to you.
The key word in the above excerpt from Modern Money Mechanics is “exchange“. The bank enters credit in your account in exchange for your promissory note. So, when you signed up for a loan you actually gave the bank the money to fund it.
The Fed clearly says that reserves are unchanged by the loan transactions, confirming that they did not loan you any of their money. The money unquestionably came from you. Again the Fed clearly states that your promissory note constitutes new additions to the total deposits of the banking system. The Fed further admits that it is you, the borrower, who funds the loan when they say that assets and liabilities both rise by the amount of the loan. This can only happen when new money is deposited with the bank – your money. Assets and liabilities would never both rise if the bank loaned you existing funds belonging to its depositors or its shareholders.
Banks are obliged to follow Generally Accepted Accounting Principles (GAAP), or equivalent standard, a method of accounting that lies at the core of the double-entry bookkeeping system called the Matching Principle. They use the “T” account format whereby assets are matched by liabilities and must always balance to zero.
Modern Money Mechanics, page 5, states:
“The basic working tool is the “T” account, which provides a simple means of tracing, step by step, the effects of these transactions on both the asset and liability sides of bank balance sheets. Changes in asset items are entered on the left half of the “T” and changes in liabilities on the right half. For any one transaction, of course, there must be at least two entries in order to maintain the equality of assets and liabilities.”
Therefore, when a bank accepts bullion, coin, currency, cheques, drafts, promissory notes, or other similar instruments from clients, it deposits or records the instruments as assets of the bank. At the same time, it must record offsetting liabilities that match those assets. These liabilities represent the amounts that the bank owes the clients, i.e., funds that originally came from clients themselves.
For example, if you lodge $1,000 cash or a cheque with the bank, it records this deposit on the left side of the “T” ledger as an asset of the bank, to be used in any way the bank sees fit. But at the same time, the bank records a liability to itself on the right side of the ledger, representing a similar amount that is owed back to you. In reality, you have loaned the bank $1,000 and you fully expect to get it back.
When the bank receives your promissory note it treats it similarly to a cash or cheque deposit; it records the note as an asset of the bank and records a matching liability in a transaction account in your name (without telling you). According to the bank’s bookkeeping records, its assets have gone up by the full amount of the promissory note but, at the same time, its liabilities show that it owes this same amount of money back to you. You have gifted the bank the full amount of the “loan” that you are seeking from them. Because you are unaware of what you’ve done, the bank takes full advantage of your ignorance and unlawfully holds on to your money.
The bank then withdraws your money (after forging your signature), and issues you a cheque from the Liability side of its ledger, pretending that the “loan” came from the bank. In fact, the whole deal never cost the bank a cent; they effectively plundered your labour of a lifetime, as in the case of a large loan. That means that 20 or 30 years of onerous toil and endeavour can be summarily stolen from you by a bankster with a stroke of a pen – or a few clicks of a mouse. And if you default on the payments he will come and steal your property as well, aided and abetted by the courts and the police. Is that a diabolical scheme or what?
Some people wonder what gives value to their signatures on promissory notes. A lot of it goes back to the early 1930s when America became insolvent, soon followed by the rest of the world, but we’ll explore that in more detail in Part 2 of this trilogy.
In short, what makes a promissory note valuable is the fact that you are pledging your future labour to pay off a loan. Your signature is worth a lot of money. And, in the case of a mortgage, you are consenting to pledge security such as your house, which gives significant tangible value to the document. Quite often, the banks will sell your promissory note to another financial institution, even before you receive a cent of your “loan”.
Your signed promissory note is similar to an IOU, just like the $20 note in your pocket, or £20 or €20, depending on whatever fiat currency operates where you happen to live. And just like the notes in your pocket your promissory note has a stated denominational value. If private banks can create money as IOUs that will never be paid , why can’t you? If private banks are never called upon to honour or redeem their IOUs, why should you?
It should be noted, and further explored, that some researchers (particularly Canadian) speculate that a bank can make some 300% profit or more on a mortgage by: a) monetizing the loan application form, b) securitizing the mortgage deed, c) receiving upfront credits from the central bank for principal plus total interest, and d) charging the strawman fund account. (More about that in Part 2.)
The Judiciary As Willing Dupes Of The Banksters
We mentioned earlier that the banksters are aided and abetted by the legal system in conveyancing titles and in foreclosures of mortgages. Most borrowers are told not to date the Mortgage Deed/Title Deed whenever they sign up for a loan. Did you ever wonder why?
The short answer is that you cannot pledge something as security when you don’t own it. It is illegal. Imagine if your neighbour pledged your house as security for a loan that he took out with your local bank. Would you call the police?
When you are in the process of buying a property and are asked to sign the Mortgage Deed, you are giving a charge on that property to the bank. But you don’t own the property at that particular time of the mortgage process. How can you legally authorize a charge on property that does not belong to you? You can’t.
Before you can authorize a charge on the property, the seller must convey the property to you free of all liens and encumbrances. How can he pay off existing mortgages or charges if he hasn’t received any money from you yet? He can’t.
In short, how can you legally mortgage the property to the bank as collateral when neither you nor the seller has received a cent of the “loan” promised by the bank? You can’t. It is impossible for the seller to obtain clear title if he has not been paid any money and it is impossible for you, the buyer, to mortgage a property that does not belong to you.
This could be sorted out very easily if the bank used its own money to pay the seller. The bank would then have a legitimate claim to the property and would be entitled to hold your promissory note as security to protect its risk. Such a process would be crystal clear and transparent. In fact, that’s what most borrowers believe happens today when they take out a loan.
But the whole procedure is a lot more complex and devious than that. The deceitful loan practices employed by banks leaves them and their attorneys with a legal conundrum to solve: how do they transfer title from the seller to you without using the bank’s money and without alerting you to the scam?
What they do is issue a cheque from the proceeds of your promissory note (converted, or monetised, from your loan application form) to pay off the seller’s liens and charges. The seller does not know that his property, still legally in his name, has now been cleared of all debts.
The next step is to convey the property to you now that the title is clear and free of all liens and encumbrances. When that’s done, the property is now yours and has no debts attached. You paid for it with your promissory note. It did not cost the bank a cent. But they do not tell you that.
The bank won’t inform you that you legally own the property until they can get a legal charge registered in their name. They then compel you to assign them an interest in your property, even though they contributed nothing of value to the deal. It was your money that funded the entire process.
They make you sign a second promissory note, with the mortgage deed attached, and this becomes a valuable asset to the bank. (Note: this process will differ somewhat from country to country, but the outcome is always the same – you unwittingly fund your own loan and the bank makes a killing.)
The whole process is a swindle and if you had written the proper date when you signed the mortgage document the fraud would have been soon exposed. The bank’s lawyers will fill in the date when all the paperwork has been completed and juxtaposed to conceal the deception. This reflects dismally on the integrity of the legal profession.
And when it comes to foreclosures, the legal profession is again required to come to the aid of the conniving banksters. In a foreclosure hearing, the bank is supposed to produce the original Promissory Note. They rarely do, because they have sold it on and are not Holders In Due Course. Therefore, they are not a party of interest and have no standing in a court of law – but they will bluff the mortgagor and the court. Also, they don’t want you to see how they have profited from the sale of your note. What they produce is a “certified copy”, photocopied before they monetized the original.
Judges usually allow the banks to foreclose on this basis of fraud while at the same time ignoring the borrowers’ demands that the bank pays them back for their misappropriated Promissory Notes. This is a blatant setting aside of preferences. Judges also refuse to compel the banks to present a sworn copy of the accounting which would clearly show where the money originally came from. There are statutes which require the bank to produce the accounting – in the U.K., for example, the Banker’s Books Evidence Act (1879). But it’s entirely at the discretion of the judge. His decision in each individual case will show you who he’s really working for.
The Huge Fraud of Securitization
Another reason the banks won’t produce the original documents is that they’ve shredded them to cover up glaring deficiencies and fraud in their securitization of mortgages. Although the United States Supreme Court ruled over a hundred years ago that a mortgage without the original note is unenforceable in foreclosure, the banks are now presenting a plethora of “lost note affidavits” to con the courts into helping them kick millions of people out of their homes. This is in spite of the fact that the originating bank is now merely a servicer of the mortgage and is not a legitimate party of interest, having sold the mortgage to a securitization entity.
According to Wikipedia:
“Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said debt as bonds, pass-through securities, or Collateralized Mortgage Obligation (CMOs), to various investors. The principal and interest on the debt, underlying the security, is paid back to the various investors regularly. Securities backed by mortgage receivables are called mortgage-backed securities, while those backed by other types of receivables are asset-backed securities.”
Some years ago, the banksters set up MERS (Mortgage Electronic Registration System), to facilitate them in evading tax and to avoid paying recording fees to local counties. The sums saved by the banks are astronomical; billions and billions of dollars in unpaid taxes and fees desperately needed by cash-strapped county authorities. The banksters decided unilaterally that once they recorded the mortgage electronically with MERS, they no longer needed the original paperwork. Furthermore, the paper left a trail that could catch them up in their fraud. So they destroyed hundreds of thousands, perhaps millions, of original mortgage documents.
What typically happens in securitization is that the banks sell their mortgages to investors who pool a block of these mortgages in a trust. The trust is known as a REMIC (Real Estate Mortgage Investment Conduit) which allows the investment banks to take advantage of tax exemptions. But to avoid paying county recording fees, MERS claims that it is the holder of the mortgage loans and continues to trade them without paying fees or filing the appropriate paperwork whenever there is a change of investor.
How could MERS and the REMIC both be holders of the mortgages? According to the law and established property practices for the past 500 years, there must be a clear paper chain of title every time the mortgage changes hands. Without the original notes the securitization may not be legal and the properties cannot be foreclosed upon. MERS says it is the holder, but has no paperwork to prove it and therefore has no standing to foreclosure. But if MERS is the holder then the REMIC is a vehicle for tax fraud!
What a lot of people don’t realize – and some courts do not appear to realize (or pretend not to) – is that once a mortgage is securitized it is no longer a mortgage. It becomes a stock and forever loses its security. It is illegal for a mortgage to be both a loan and a security. This is a securities fraud known as “double dipping”. If a mortgage could be both a loan and a security the owner could sell the loan to any number of securitization investors and cheat shareholders out of their money.
When a mortgage is securitized the originator, or lending bank, no longer owns the asset and cannot foreclose on the property – even though it may have a servicing agreement with the investors. The investors cannot foreclose because each individual investor only owns a tiny part of the mortgage – according to the law, one has to own the complete mortgage in order to foreclose. Furthermore, when the mortgage passes on to other investment banks or fund owners (as is the norm) the changes of ownership are rarely, if ever, recorded. This breaks the lawful chain of title and makes foreclosure unenforceable.
If a bank buys back a mortgage in default from the investors, at pennies in the dollar, and tries to foreclose, it cannot prove standing when challenged by a knowledgeable ‘borrower’ in court. These ‘borrowers’ have found out that the debt was undoubtedly written off by the investors for tax credits and is now dead. It cannot be resurrected. You can’t unboil an egg. That means that the bank has no standing unless it produces counterfeit documents and has them accepted by the court.
There is now much evidence of the banks and their lawyers paying young people (robo-signers) to forge signatures on counterfeit mortgage documents by the tens and hundreds of thousands to bluff the courts and push through foreclosures. This is massive fraud on the part of MERS and the big banks.
But lately, a handful of courageous judges have shown that they won’t buy into this fraud and have found against the banks and for the mortgagors in a number of landmark decisions. Some of these judges are Judge Grossman, federal bankruptcy court system in New York, Judge Long in Massachusetts, Judges Schack and Spinner in New York, and a few others. The judges are demanding to see the original “wet-ink” signatures on the original Promissory Notes and Mortgage Deeds as well as a properly recorded chain of title. But the banks can’t produce the necessary documents.
Astoundingly, tens of millions of properties are in limbo with no one knowing or able to prove who really holds title. We have seen in the news an increasing number of outrageous incidents where banks have tried to foreclose on homes whose mortgages have already been paid off or homes that were originally bought for cash, full price down. We also have had cases of two or more banks trying to foreclose on the very same property at the same time. It is a national scandal.
The banks screwed up big time. The holders of the trillions of dollars of securities are entitled to present them to the originating banks and demand their money back. This could bring the whole banking industry down with a gigantic crash. But some cynics believe the banksters will do what they’ve always done – buy off Congress to pass new laws to save them from their own corruption and greed.
Government Borrowing
Governments borrow in much the same way as individuals and corporations. In the United States, the Treasury Department gives the banksters at the Federal Reserve their promissory notes, i.e., government bonds. The Fed lodges these valuable documents as assets and, in exchange, gives the government credit. The government now owes the Fed, a private corporation, a whopping pile of money plus interest which must be paid by the long suffering U.S. taxpayer.
This is another crazy situation where the borrower is actually the lender. It is utter madness to give money to a private corporation like the Fed who then returns it to the government as a debt and then has the gall to demand that it be repaid with interest. Wright Patman, who served as chairman of the House of Representatives Committee on Banking and Currency for 40 years until the time of his death in 1976, tried for 20 years to repeal the Federal Reserve Banking Act of 1913. Patman once said in Congress:
“When our Federal Government, that has the exclusive power to create money, creates that money and then goes into the open market and borrows it and pays interest for the use of its own money, it occurs to me that that is going too far. I have never yet had anyone who could, through the use of logic and reason, justify the Federal Government borrowing the use of its own money…
“I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue.”
A predecessor of Patman’s, Louis McFadden, was also chairman of the House Committee on Banking and Currency, from 1920 to 1931. McFadden used stronger language than Patman when talking about the Federal Reserve. He said:
“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the nation’s debt. The depredations and iniquities of the Fed has cost enough money to pay the national debt several times over.”
McFadden once tried to impeach the Secretary of the Treasury, two assistant Secretaries of the Treasury, and the Board of Governors of the Federal Reserve. Although a banker himself, he was a thorn in the side of the Fed and spoke out about their criminality at every opportunity. McFadden died in mysterious circumstances in 1936 after surviving two previous attempts on his life.
One of the most concise and eloquent speeches showing up the absurdity and corruption between the Fed and the U.S. Government and exposing their collusion in money creation, comes from the inventor, Thomas A. Edison:
“If our Nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good also. It is absurd to say that our country can issue $30 million in bonds, and not $30 million in currency. Both are promises to pay: but one promise fattens the usurer, and the other helps the people.”
That is the whole problem and solution in a nutshell!
When a government issues bonds, its “promises to pay” are very valuable documents. What makes them valuable is that they are backed by the “full faith and credit” of the people. In other words, the people are promising their future labour and are pledging the value of their property and all the public property and natural resources of the nation.
All a bank does is to take these valuable bonds and exchange them for bank credit, at no cost to the bank. Furthermore, it charges interest on the full amount. It actively and willingly conspires to steal the property and labour of an entire nation, past labour, present labour, and future labour. These banksters are nothing but contemptible criminals.
What this really means is that a country’s national debt is owed not to the banksters who stole it, but it is owed to the people, from whom all credit arises. Banks cannot create credit. They steal it from the people and pretend that it came from them. Therefore, most governments on the globe should pay back the national debt to their people, the rightful originators of the nation’s money.
If the U.S. national debt is some $14 trillion dollars, and the population is approximately 300 million, then every man, woman, and child should each be paid $46,666 by the government. This would clear the national debt and put money into every pocket and give the economy a huge boost.
This should be done in conjunction with the complete reformation of the banking industry. The power of money creation must be taken from the banksters and returned to the people. The awesome power to create money has been commandeered for generations by a few dozen banking families who now control most of the wealth of the world. Not only must this travesty be stopped but it must also be reversed.
There are three major branches of government, legislative, executive, and judicial. A fourth, and perhaps most important, should be added – a monetary branch. The power to create money by the people of a nation will give them full control and sovereignty over their own economy and financial affairs and negate the loss of sovereignty that occurs when nations borrow from the international banksters. Such a reformation will promote peace and prosperity and lead to an unimagined Golden Age in the spiritual development of mankind.
If Greece or Ireland or Spain or the U.S. or any other country could issue its own currency there would be dramatic changes in a very short time: return to full employment; greatly improved public health; widespread prosperity; state of the art infrastructure, technology, and transportation; cheap, sustainable green energy; and peace and contentment never before seen in all of history.
The American Monetary Institute (AMI) has come up with a detailed plan which has been fully incorporated in a bill introduced by Representative Dennis Kucinich, Bill H.R. 6550, also referred to as the ‘National Emergency Employment Defense Act of 2010′. (See http://foolscrow.wordpress.com/2011/02/16/this-monetary-reform-bill-will-surely-loosen-the-banksters-bowels/) or visit the AMI’s website www.monetary.org
Stephen Zarlenga of the AMI says that this monetary reform bill is based on three crucial areas, all of which must occur if the reform is to be truly effective.
1. Incorporate the Federal Reserve System into the U.S. Treasury where all new money is created by government as money, not interest-bearing debt, and spent into circulation to promote the general welfare; monitored to be neither inflationary nor deflationary.
2. Halt the banks’ privilege to create money by ending the fractional reserve system in a gentle and elegant way. All the past monetized private credit is converted into U.S. government money. Banks then act as intermediaries accepting savings deposits and loaning them out to borrowers; what people think they do now.
3. Spend new money into circulation on infrastructure, including education and healthcare needed for a growing society, starting with the $3 trillion that the American Institute of Architects estimate is needed for infrastructure repair (roads, bridges, railroads, water systems, sewer systems, etc.); creating good jobs across the nation, re-invigorating local economies and re-funding government at all levels.
A Handful Of Banking Families Control The World
After imposing the above reforms a country should also withdraw from the IMF/World Bank, the World Trade Organization (WTO), and the Bank for International Settlements (BIS).
These organizations are a facade for the de facto rulers of the world, a handful of banking families who control all global finance and banking. The founding father of these unprincipled banksters, Mayer Amschel Rothschild, once bragged, “Permit me to issue and control the money of a nation, and I care not who makes its laws.”
His equally braggart son, Nathan, also boasted, “I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain’s money supply controls the British Empire, and I control the British money supply.”
There exists only a few hundred of these despotic banksters, with extended families only a few thousand at most. These are the villains who have fomented wars, famines, depressions, recessions and never-ending turmoil for their own ends. They are the ones who engineered the present economic chaos in order to shift the collective wealth of the middle classes into their own pockets. It is not so much for money and property – which they have in abundance – as it is for total control over the people of the world.
Some of these Machiavellian bankster families include:
The Rothschilds
The Rockefellers
The Warburgs
The Schiffs
The Lazards
The Israel Moses Seifs
The Oppenheimers
The Kuhn Loebs
The Goldman Sachs
The Lehmans
The Stillmans
As stated, these banking racketeers own or control the worlds’ central banks, the IMF, the World Bank, and the BIS. Through these powerful institutions they effectively control the governments and economies of the world. Wherever you live, your government runs the economy not for the benefit of you and your fellow citizens but for the selfish interests of the banks and their shareholders.
Dean Henderson says that the BIS “is the most powerful bank in the world, a global central bank for the Eight Families who control the private central banks of almost all Western and developing nations.” (http://www.globalresearch.ca/index.php?context=va&aid=25080)
According to Henderson, the BIS is owned by the Federal Reserve, Bank of England, Bank of Italy, Bank of Canada, Swiss National Bank, Nederlandsche Bank, Bundesbank and Bank of France.
Henry Liu, an economic critic, writes: “BIS regulations serve only the single purpose of strengthening the international private banking system, even at the peril of national economies. . . . The IMF and the international banks regulated by the BIS are a team: the international banks lend recklessly to borrowers in emerging economies to create a foreign currency debt crisis, the IMF arrives as a carrier of monetary virus in the name of sound monetary policy, then the international banks come as vulture investors in the name of financial rescue to acquire national banks deemed capital inadequate and insolvent by the BIS.”
Historian Carroll Quigley, a professor at Georgetown University, wrote in his much-quoted book Tragedy and Hope that the BIS was part of a plan, “to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole…to be controlled in a feudalistic fashion by the central banks of the world acting in concert by secret agreements.”
The BIS is not accountable to any national government, audit, control, or regulation. It was established by the Hague agreements of 1930 and its main architects were Montagu Norman, Governor of the Bank of England, and Hjalmar Schacht, later to become Adolf Hitler’s finance minister. The original board of directors included two high-ranking Nazi officials, Walter Funk and Emil Puhl, and IG Farben industrialist Herman Schmitz, and Baron von Schroeder, banker to the Gestapo, all of whom were convicted of war crimes after World War II.
The BIS has long been a suspect organization and is tainted by collaboration with the Nazis during the War. The BIS laundered gold for Hitler, much of it plundered from the occupied countries of Europe. The BIS also laundered gold stolen from Jews and other ‘undesirables’ who were incarcerated in concentration camps like Auschwitz, Birkenau, and other notorious prisons. Today, it is associated with global drug money laundering.
Yet this is the very global central bank that sets the reserve ratio and interest rates for banks in almost every country in the world. It policies affect nearly every human being on the planet, usually adversely. If it can dominate the money of the world then it can dominate the governments and peoples of the world.
The World Bank and IMF are two other piratical organizations that have plundered entire countries to enrich their bankster controllers. To quote John Perkins, author of Confessions of an Economic Hitman:
“The World Bank is a tool of economic hit men, there is no question about it. It’s the tool of big corporations, the IMF and most of what we call intelligence agencies of the United States, CIA and NSA… All of these organizations are basically tools of what they call the corporatocracy. The men and a few women who run the biggest and most powerful corporations also run most of the government. Economic hit men help channel the resources of organizations like the World Bank and the IMF, the NSA and the CIA to support the larger agenda.” (Quote from an interview with TheDailyBell.com)
When asked about the IMF, Perkins replied:
“It’s a servant of the corporatocracy, of economic hit men. One of my jobs as an economic hit man was to identify countries that had resources like oil and arrange huge loans for those countries from the World Bank and sister organizations. But the money would never go to the actual country; instead it would go to our own corporations to build infrastructure projects in that country like power plants and industrial parks; things that would benefit a few very wealthy families.
“So then the people of the country would be left holding this huge debt that they couldn’t repay. We would come back and say, ‘Well, since you can’t repay your debt, you have to restructure your loan.’ That’s when the IMF comes in. So the World Bank makes the original loan and IMF shows up and says, ‘We’ll help you restructure your loan, but in order to do that you have to meet certain conditionalities. You have to sell your oil or whatever the coveted resource is at a cheap price, to the oil companies without restrictions.’ Or they would suggest the country sell electric utilities, water and sewage, maybe even your schools and jails to private multi-national corporations. Or maybe allow military bases to be built; these sorts of things.”
Political commentator Hans Schicht proposes a solution. Writing in gold-eagle.com in 2008, he says:
“The western monetary system is based on fraud…All the robber barons should be put behind bars. The Central Banks, the IMF, the BIS abolished. All banks and financial institutions expropriated. All stolen assets confiscated and either returned to their rightful owners or the proceeds re-directed to cover the nation’s expenses for many years to come to the benefit of the tax-payer. Financial laws should be re-written and financial crime made part of common crime. All debts should be cancelled and Debt declared illegal. Like physical slavery was abolished so should debt slavery.” [Emphasis in original.]
A Revolutionary Solution – Stop Paying The Banks! – Lawfully!
Hans Schicht’s solution has a lot of merit. But what can we, the common citizens, do right now to end this global banking thievery and criminality?
We can start today by lawfully stopping all payment to corrupt banksters. We can lawfully write off our existing ‘debts’ to these criminals. We can start to bring the whole rotten edifice come crashing down by withdrawing our support for these criminal institutions.
Many people are becoming aware that most bank loans, mortgages, car loans, credit card debt, etc. are illegitimate and fraudulent, as explained earlier in this article. Tens of thousands of borrowers – who are really the lenders – are now challenging the banksters to validate their so-called loans. The banksters are unable to validate these ‘loans’ because they never loaned any of their own money in the first place.
People are writing to the banks and financial institutions in their tens of thousands, perhaps hundreds of thousands, asking for three documents:
1. The original contract with the ‘wet ink’ signatures of both parties.
2. A sworn copy of the accounting, under penalty of perjury and on the respondent’s commercial liability, showing that the loan came from the bank.
3. A validation of the debt in the form of an affidavit or a signed invoice.
This writer has never heard of a single case where a bank responded with any of the above requested documents.
Why is this?
1. A contract signed by both parties does not exist. The bank never signed the loan contract for at least two reasons; a) it did not want to leave itself open to being sued for contracting to loan money it had no intention of loaning, and did not indeed loan, and b) a contract is not a negotiable instrument – it cannot be sold, as a Promissory Note can.
Therefore, a unilaterally signed contract is not valid in law and is unenforceable.
Other elements that must be present in a valid contract are:
i) Equal Consideration: You put up your promissory note and your property – the bank put up nothing of its own. That makes the contract, if one existed, invalid.
ii) Full Disclosure: Did the bank tell you it put up no money of its own but used your promissory note to fund the ‘loan’? This too invalidates the so called contract.
iii) Lawful Terms and Conditions: Taking the above fraud into consideration, how could there possibly be Lawful Terms and Conditions?
2. The bank’s auditor will not give a sworn document testifying that the bank loaned you its own money because he knows that such a declaration would be false and perjurious and land him in jail for a considerable spell.
3. The bank will not issue an affidavit or a signed invoice for the same reason as in the above paragraph. An invoice is an itemised list of goods or services provided. There were no goods or services provided and to issue an affidavit or invoice for non-existing goods or services is blatant fraud! Remember that under the Bills of Exchange Act 1882 one does not have to pay on foot of a statement but only on an invoice, a signed invoice. (In the USA negotiable instruments are covered by the Uniform Commercial Code, Sections 3 and 4.)
Some ‘borrowers’ are progressing much further in seeking retribution from the banks. If the banks cannot provide the documents requested, thereby substantiating their loans, the ‘borrowers’ are attaching commercial liens to the banks’ property and assets in order to recover the money they were cheated out of plus three times the principal in commercial injuries. Also, punitive damages, if pursued, could amount to as much as 200 times the principal.
Let’s be perfectly clear about all of this. Modern banking is the most gigantic act of criminality ever imposed on mankind, deviously designed for the abject enslavement of the many for the huge enrichment of the few.
You can play your part in destroying this immoral institution by challenging the banksters to validate their ‘loans’ to you. Collectively, the power and determination of the people will tear down this despicable construct and trample it into oblivion. It is the root cause of almost all the ills besetting the peoples of the earth.
The current financial chaos across the globe was deliberately engineered by the banking mandarins to inflict a one world currency on us all. This would centralise and consolidate their control and make them masters of global finance and the entire world economy. We would then become totally enslaved in a dark pit of debt.
But they have made a fatal miscalculation! They hadn’t reckoned on so many people across the planet becoming aware of their sordid conspiracy. This rapidly spreading global awareness will thwart all their scheming and plotting. The good and decent people of the world will prevail over the wicked princes of Mammon. The people will trample the banksters’ odious monetary system underfoot and install an honest system that will work for the greater good of all humanity. The people now have the necessary information. The people now have the motivation. The people can make it happen!
A word of caution. The information given here is not meant as legal or financial advice. What may work for one person may not work for another. Use this information as a basis for further education. Get up off your gluteus and work to inform yourself. Believe in yourself. Believe in your own immense power. Start making changes in the world for the betterment of the generations who are coming. Take courage; be not afraid, for we are many and they are few. And we have something that they can never counteract – the Truth!
Be mindful of the words of Albert Einstein: “The world is a dangerous place to live; not because of the people who are evil, but because of the people who don’t do anything about it.”
Further reading:
Blank of Ireland
Billions For The Bankers…
Mary Croft’s Book
Top Secret Bankers’ Manual
Secrets of Credit Card Termination
Sites To Visit:
Get Out Of Debt Free
Free The Planet
Mary Croft’s Site
Love For Life
(Next part of the trilogy: Beware The Risen People, Part 2 of 3: Who Is The Greatest Threat To Your Health, Wealth, And Freedom? – Your Own Government!)
[1] A term coined by President Martin Van Buren
[2] A term from the Great Depression of the 1930s, a contraction of ‘banker’ and ‘gangster’
