Is Your Mortgage Note A Legal Document?
The Facts. The Situation and The Proof to Back It Up!
Fact:
"Modern Banking" was actually created over 4,000 years ago in Babylon. [Of course, without the electronic information.]
The "lending" techniques that are used are beyond brilliant. It took some very, very smart people to figure out how to appear to be lending money, but in actuality, have the value supplied by the person wanting a loan. And that is what is happening.
If you're an honest, ethical person who believes that the party who funds a loan should be repaid, then when you discover the truth, you will be seething mad.
You see...
...All we're talking about is equal protection under the law, equal protection under the bank loan agreement, and for the whole truth about the bank loan agreement to be revealed. The whole truth is NOT revealed to the borrower. The bank or other lending institution does NOT disclose to you that your promissory note is actually an asset to the bank - that they deposit.
The bank does not let you know that a promissory note is actually a "negotiable instrument" under the Uniform Commercial Code, and that it will be deposited to fund your loan. Nor do you learn that the bank has a liability to you, of approximately the amount of the loan. (The bank owes you by their own bookkeeping entries!)
The bank does NOT tell you that you factually provided the actual cash value for your own loan! Thus, the bank only appears to be lending you anything.
That's right: banks and lending institutions only appear to lend money. Let's go through how money is created at the "government" level, then we'll see how this applies to you and your alleged debt.
How Money Is Created In the U.S.
Congress says, "We need $10 Billion."
So they go over to the treasury and say, "We need $10 Billion."
The U.S. Treasury prints up $10 Billion in government bonds.
They take those bonds over to the Federal Reserve Bank (Fed), you know, just down the road.
They walk into the Fed with these $10 Billion in bonds and say, "We need to borrow $10 Billion."
The Fed takes that $10 Billion in Bonds and agrees to then loan the U.S. Government $10 Billion.
The Fed writes into their little ledger with a stubby pencil, "U.S. Government owes us $10 Billion." (Actually, it's done by computer nowadays.)
The Fed then authorizes some currency to be printed.
Now the U.S. Government owes another $10 Billion to the Federal Reserve.
Government officials agree that this is how the banking system today works:
Representative Wright Patman, former Chairman of the House Banking Committee said:
"The Federal Reserve Banks create money out of thin air to buy Government bonds... The Federal Reserve Bank is a total money making machine."
Former Federal Reserve Bank Chairman Eccles was asked by Patman, "Mr. Eccles, how did you get the money to buy these two billion dollars of government bonds." Mr. Eccles replied, "We create it." "Out of what?" Patman asked. "Out of the right to issue credit money."
Former Congressman Louis McFadden, former chairman of the House Committee on Banking and Currency, remarked about the Federal Reserve Bank: "A super-state, controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure."
When the unconstitutional Federal Reserve Act was about to be passed in 1913, Congressman Charles Lindbergh said, "This Act establishes the most gigantic trust on Earth. When the President signs this bill, the invisible government, run by monetary power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed...The worst legislative crime of the ages is perpetrated by this banking bill."
If you're an honest, ethical person, then you would believe that all lenders should be repaid. If the Federal Reserve Banking System repaid the loan from the U.S. Government, the "debt" would be cancelled.
Let's Take a Quick Look Over That
The bonds printed by the treasury have an actual value of $10 Billion. They take the actual value of $10 Billion in bonds over to the Fed to "borrow" $10 Billion.(~?~)
[Note: If an asset is anything that can be sold, and then the money received can be deposited into a bank, then there was nothing actually lent to the U.S. Government, was there? They provided bonds that could be sold for $10 Billion in exchange for the $10 Billion from the Fed. Where was the loan? There was none. The Fed and the U.S. Government made an exchange, and the Fed lied and called it a loan.]
Now, we all know that the people who run the government aren't the brightest, but to give away the bonds so they can borrow money is just ridiculous, wouldn't you agree?
Look, I don't expect you to believe that without some proof. I mean, it's just insane, right? Listen to a recording about the Story of the Federal Reserve System. It's FREE to you, over an hour long, and it's called The Creature from Jeckyll Island, by G. Edward Griffin. Mr. Griffin is a well-respected authority on the creation of the Federal Reserve Banking System, and has written a best-selling book of the same name. Or you can read The Mandrake Mechanism, chapter 10 of his masterpiece with the same title.
How This Applies to You
On a national level, we see the absurdity behind the "money creation" process. But when it's right there in our face, it's a little harder to "see the forest through all the trees."
Money is created on a local level through the banks and other lending institutions in much the same way. The value is first provided to the bank, the bank deposits the asset, and the asset you provided is used as the value to fund the "loan" to you.
Again, I know it sounds absurd, like, "How can they get away with this?" I wondered the same thing when I first came across this information. The Federal Reserve Bank of Chicago came out with a very revealing publication back in the 1990s called Modern Money Mechanics. While the file itself is a web page, in the physical publication on page 6 we find the exact mechanics of this, including the bookkeeping entries.
So how does the bank loan actually work?
You want a loan for your home.
The bank advertises that they loan money.
You "apply" for a "loan."
They put you through the ringer and make you glad and relieved that you were able to be approved for a loan. (You know, like they are doing you a really big favor.)
They have you sign a promissory note.
And here's the part you're never supposed to know
Since your promissory note can be sold for money, it's an asset. (Covered more in the Research Section.)
The bank deposits the asset into an account for approximately the amount of the note.
The bank cuts you a check from the deposit you never knew about (or transfers the money to those who should be receiving it).
And you think you owe money back on a loan, when in fact all that was made was an exchange.
Now Let's Look at That
If you think about it, the bankers' scheme is really quite brilliant. I mean, what other business in the whole world allows you to create money based on the value that someone else gives you, then charge that person again plus interest? Wow!
So the real question becomes, "If the promissory note is an asset, what funded the bank's ownership of the note?"
Answer: They still don't really own it. They made an exchange - Your promissory note (asset to the bank) was exchanged for approximately the amount of the loan. You gave the bank an asset worth $100,000 and the bank returned $100,000 to you. Where was the loan? There wasn't one. But you really do have to admit, it's brilliant.
Listen, we're not the first people to "discover" this was going on. But we have figured out some things that no one else has!
As an honest, ethical person who believes that all loans should be repaid, do you agree that the bank should repay your loan? After all, they deposited your promissory note. Your promissory note is an asset that they exchanged for a check. Where's the loan? Factually, there isn't one. And since all lenders should be repaid, shouldn't the bank repay your loan to them? If so, you wouldn't have the "debt" and would live better.
Quickly, when you deposit money in your checking account, does the bank now owe you that money when you want it? Yes. The bank has a new asset, the $100 you deposited into your checking account. The bank also has a new matching liability that says the bank owes you $100. Assets = Liabilities.
The bookkeeping entries are nearly identical for a deposit into your checking account and for a new loan. By lending, the banks now have more assets and liabilities.
If you were to lend me $500, your "pool of money" would be smaller. When a bank "loans" money, their "pool of money" increases.
Quick Summary behind How a Bank Loan Works
Money is created today by "lending," so all money today is born as "debt money."
The person who wants a loan must provide to the bank something that he or she doesn't know is valuable, called a promissory note.
The promissory note is a bank asset, and that asset is deposited into a demand deposit type of account.
The asset deposited is what provides the bank the value to be able to "lend" to you and others.
The bank exchanges value for value, just like the Federal Reserve Bank and our Government, then lies about it and calls it a loan.
You and millions of others believe you have a debt.
This has the similar economic effect of counterfeiting, swindling and stealing.
More on Equal Protection
Our founding fathers knew about this type of banking. That's why there were provisions in the Constitution of the united States of America to stop this type of banking system to infest our nation.
Article 1, Section 8, clause 5 states:
"Congress shall have the power to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures."
Article 1, Section 10 in part states:
"No state shall use any Thing but gold and silver coin as a tender in payment of its debts;"
Is it more difficult to create money with "creative bookkeeping," (or as President Bush says, "Cookin' the Books") by depositing your promissory note and not telling you? Or is it more difficult to mine the gold and silver to mint the money?
Mining is difficult and expensive. Bookkeeping entries cost virtually nothing.
Take a look at the definition of "Bank" in the 4th Edition of Black's Law Dictionary:
"An institution, of great value in the commercial world, empowered to receive deposits of money, to make loans, and to issue its promissory notes (designed to circulate as money, and commonly called 'bank notes' or 'bank-bills,') or to perform any one or more of these functions."
If a promissory note is designed to circulate as money, like money it can be deposited into a checking account, can't it? You bet.
That was never disclosed in the bank loan agreement, was it? No.
See, if gold and silver coin were the money, the current banking system could not exist. Our founding fathers knew that.
Since the promissory note is a negotiable instrument, per the Uniform Commercial Code, at what point did the bank "own" the promissory note? A note is an IOU. It says "I owe you $X, which is to be repaid on this or that date, or through payments."
Did you give the bank permission to turn your "promise to pay" into money? Probably not. By the bank altering the note and turning it into a negotiable instrument, they changed the cost and the risk to you and them. Before they deposit the note into a checking account, you thought the agreement was that they were going to loan you money. They were the ones at risk. It's your duty to pay them.
When the bank deposited the note, the entire cost of the loan was funded by you, and you're now supposed to pay them? That's not what you agreed to, is it? Because of this banking system, you are in "debt" with "money" that you provided the value for. There's a lot more to this and you should know it, but it's also a lot to try to learn quickly.
By the way, what is the difference between the economics of the current banking system and a thief who steals from you? And a counterfeiter who "loans" you counterfeit "money" [credit] at no cost to him? A cheap con artist who swindles you into believing you owe him money? What is the difference between the banking system today and a counterfeiter, theif, and a swindler? There is no economic difference.
