Proof From the Feds About Your Bank Loan

From: "R. J. Tavel, J.D." <rj3@comcast.net
 Sent: Wednesday, April 16, 2003 1:30 PM
 Subject: 1] Proof from the Feds about your bank Loan
 
 Here is the proof of how money is created straight from the Feds
 themselves.  This information is geared toward Credit debt but the same
 principles apply for any loan made by banks:
 
 Here is how the Federal Reserve Bank of Chicago explains the process:
 
 Two Faces of Debt
 Federal Reserve Bank of Chicago
 Public Information Center
 P.  O.  Box 834 Chicago, IL 60690-0834
 312-322-5111
 
 NO LONGER SENDING OUT HARD COPIES.
 
 To continue your information gathering process it's time to call
 me.  Looking forward to talking with you.
 Jacques Allrich- 877-280-4157 .
 
 Page 19, Paragraph 3-5:
 
 "For an individual institution, they arise typically when a depositor
 brings in currency or checks drawn on other institutions.  The
 depositor's
 balance rises, but the currency he or she holds or the deposits someone
 else holds are reduced a corresponding amount.  The public's total money
 supply is not changed.
 
 But a depositor's balance also rises when the depository institution
 extends credit-either by granting a loan to or buying securities from
 the
 depositor.  In exchange for the note or security, the lending or
 investing
 institution credits the depositor's account or gives a check that can be
 deposited at yet another depository institution.  In this case, no one
 else
 loses a deposit.  The total of currency and checkable deposits-the
 money-supply-is increased.  New money has been brought into existence by
 expansion of depository institution credit.  Such newly created funds
 are
 in addition to funds that all financial institutions provide in their
 operations as intermediaries between savers and users of savings.
 
 But individual depository institutions cannot expand credit and create
 deposits without limit.  furthermore, most of the deposits they create
 are
 soon transferred to other institutions.  A deposit created through
 lending
 is a debt that has to be paid on demand of the depositor, just the same
 as
 the debt arising from a customer's deposit of checks or currency in a
 bank.
 
 Two Faces of Debt Web Site Below - Chicago Fed .Org Site
 http://www.chicagofed.org/publications/twofacesofdebt/twofaces.pdf
 
 Do Banks Play By The Rules?
 
 I had always assumed, for example, that banks could only loan out the
 funds
 that other bank customers had placed on deposit with them.  This had
 always
 seemed obvious to me, after all wasn't this common knowledge?  If you
 wonder what people really believe, go ahead and do a little survey of
 your
 own: Ask people on the street where banks get the money to loan out, and
 they'll tell you: banks get the money from folks who have deposited
 funds
 with the bank!
 
 But is that really true?  Since all banks are members of the "Federal
 Reserve System, lets see what the FED has to say, in its book Modern
 Money
 Mechanics, A Workbook on Bank Reserves and Deposits Expansion published
 by
 the Federal Reserve Bank of Chicago, February 1994:
 
 "In the United States neither paper currency nor deposits have value as
 commodities.  Intrinsically, a dollar bill is just a piece of paper,
 deposits merely book entries.  ...The actual process of money creation
 takes place primarily in banks." (my emphasis)
 
 
 Money creation?  What, I began to wonder, is a private bank doing
 "creating" money?  After all, I reasoned, if I were to do that, it would
 be
 called counterfeiting!  The answer was right there for all to see in the
 same booklet:
 
 "In the absence of legal reserve requirements, banks can build up
 deposits
 by increasing loans and investments so long as they keep enough currency
 on
 hand to redeem whatever amounts the holders of deposits want to convert
 into currency.  This unique attribute of the banking business was
 discovered many centuries ago.
 
 
 Stop, for a moment, and ask yourself: How do you build up "deposits" by
 increasing loans?  Don't you have to have the deposits first?  Or, can
 they
 just "loan" something that they don't actually have!?
 
 What they describe next is something called "Fractional Reserve Lending"
 where a "bank" can "create notes" (today mere book keeping entries in a
 computerized bank ledger) thereby representing as "bank assets"
 something
 far in excess of the actual cash they have on hand!
 
 "It started with goldsmiths.  As early bankers, they initially provided
 safekeeping services, making a profit from vault storage fees for gold
 coins deposited with them.  People would redeem their "deposit receipts"
 whenever they needed gold or coins to purchase something, and physically
 take the gold or coins to the seller who, in turn would deposit them for
 safekeeping, often with the same banker.
 
 Everyone soon found that it was a lot easier simply to use the deposit
 receipts directly as a means of payment.  These receipts, which became
 known as notes, were acceptable as money since whoever held them could
 go
 to the banker and exchange them for metallic money.
 
 "Then, bankers discovered that they could make loans merely by giving
 their
 promises to pay, or bank notes, to the borrowers.  In this way, banks
 began
 to create money.  More notes could be issued than the gold and coin on
 hand
 because only a portion of notes outstanding would be presented for
 payment
 at any one time.
 
 
 Ask yourself this question: If the customers depositing their gold with
 these "bankers" had discovered that these guys were printing up receipts
 for gold that wasn't even there and were "loaning" these bogus
 "receipts"
 at interest--would these customers have been upset?  Would you?  Of
 course!  But, why?
 
 To answer that, let's ask another question: Did the "goldsmiths" admit
 to
 their customers that they were creating these bogus receipts (with no
 actual gold to back them)?  Of course not!  What do we call that?  A
 lie!  By omission.  But, a lie nonetheless!  Next, the gold receipts
 themselves were "counterfeit," because there was no gold behind the
 bogus
 receipt!  So, what were these "goldsmiths" actually doing?
 Counterfeiting!
 
 Fast forward to the present, and our current, so-called banking
 "system."
 
 When you read the above story of the goldsmiths, do you get any hint
 that
 the author of this FED publication either realizes or cares that these
 goldsmiths were liars and counterfeiters?
 
 I don't think so!  In fact, aren't you left with the impression that the
 author thinks these liars and counterfeiters were pretty smart?!  Yep...
 
 So, what does this have to do with your credit card debt?
 
 Plenty!  The FED is telling you in plain language that it is running the
 same scam the counterfeiting goldsmiths ran on their customers!  --Only
 better!  Because there is no gold backing any of the notes!
 
 Imagine that!  These guys are so proud of themselves--so arrogant--that
 they don't mind admitting their scam, in print!  Which might be okay,
 except that they are giving you evidence of their scam, in print!  What
 good is that?
 Very good, because the laws on the books still require that if you pay
 for
 something (such as payments and "interest" on a "loan") that you
 actually
 receive something in return for those interest payments!
 
 What the law calls "consideration." If all you are really getting is
 just a
 "ledger entry" (sometimes called "checkbook money") then the "bank" is
 risking nothing, and you have received no "consideration!" The fact that
 you may have bought products, or even a house, with that "ledger entry"
 makes no difference at all!  The only issue is where the "loaned amount"
 came from!  Especially if it came from you instead of other depositors!
 
 
 Where Banks Really Get The Money To Loan!
 
 How, in heaven could the bank get the "money" from you to loan to you?!
 
 It's easy when all you deal in is "paper"...  paper "dollars" (with
 nothing
 to back them) paper notes, paper everything!  Have you guessed yet how
 they
 got the money from you to "loan" to you?  That's right!  Paper!  To get
 your "loan" or your card, you signed something called a "promissory
 note."
 
 Here's where it gets interesting!  A promissory note is a "negotiable
 instrument!" Bonds traded on the open market are negotiable
 instruments!  The check you sign and send out to pay a bill is a
 negotiable
 instrument, and so is the check you get from the bank, your so-called
 "loan." The question is whose promissory note is it?  If you are the one
 making the "promise," if it is your future labor that is backing that
 promissory note up, then it must be your note!  Right?  What pretext
 does
 the bank use to get that money (negotiable instrument) from you?  They
 need
 to hold it as "collateral" for the "loan," right?  And since it is your
 collateral, you expect to get it back, right?  (You never intended it to
 be
 a gift to the bank, did you!?) So, when the bank enters that negotiable
 instrument on their books, it would have to go under "liabilities that
 must
 be repaid," right?
 
 Ah, but what if the bank decided to put that negotiable instrument under
 the assets column of the ledger--as if that note had been a gift to the
 bank!?  Then, they would have a "new asset" that could be "loaned" and
 they
 also happen to have a "customer" (you) ready to make payments to them
 who
 wants that loan!
 
 Guess what?  That's exactly what banks do!  In fact, in conventional
 loans,
 they frequently sell your promissory note on the market to get the money
 to
 loan to you!  In other words, they take your property and sell it in
 order
 to fund the loan!  The laws on the books define that activity as fraud!
 
 
 I'm not sure I feel right about this.  After all I did receive products
 and
 other goods when I used my credit cards.  It seems to me that not paying
 what is owed is wrong.
 
 This is not a program that condones theft, or that tries to excuse the
 non-payment of a lawful debt.  We believe that everyone should be
 treated
 fairly!  But, shouldn't that include you and your family as well?  A
 fair
 and impartial judge would want to know what really happened wouldn't
 he?  So, before you climb into the judges seat and rush to judgment
 against
 yourself and your family, ask yourself this question: If a judge wanted
 to
 be truly fair, wouldn't he want to take into account all of the facts?
 Of
 course he would!  So, in the interest of being fair to you and your
 family,
 let's do a quick recap of what we know, okay?
 
 1.  First, we know that the merchants we bought products from got "paid"
 with credit ("checkbook money" that was "created out of thin air") by
 the
 bank that issued the card.  So, at least for now, we don't have to
 concern
 ourselves about them.
 
 2.  We know that all so-called "money" (what we call "dollars") is
 nothing
 more than notes (debt-notes) issued by a private "bank" (the Federal
 Reserve) with nothing to "back them up."
 
 3.  We also know that banks do not use the "money" loaned to the bank by
 depositors, but instead "create" this money as an "asset of the bank"
 when
 you sign their "contract" which includes your promissory note!
 
 4.  So, therefore they are appropriating your future labor without your
 permission, putting it down on their books, not as a "loan" from you,
 but
 as if it were a "gift!" If someone deposited with you 100 ounces of gold
 to
 hold as "collateral," would you list that gold as your asset on the
 books
 of your company, rather than as a liability (which is what it is)???
 
 That's what banks do routinely: They list your labor (promissory note)
 as
 their asset!  At best, no loan ever took place: they traded their
 negotiable instrument for your negotiable instrument!  A trade is not a
 "loan!"
 
 5.  Were you ever informed that the bank would "create out of thin air"
 this so-called "money?" (By stealing your promissory note.) No!  And,
 that
 is a failure of the bank to make "full disclosure!" Since the bank
 created
 this "money" did they ever have anything at risk?  No!  That means you
 never received consideration!
 
 6.  No disclosure and no consideration means that two of the six
 requirements for a valid contract are missing!
 
 7.  Unless all six requirements are met, there is NO (valid) contract!
 It
 is null and void!
 
 What does that tell us?  It tells us
 1.  that you are a victim of the bank's fraud!  (Not the other way
 around!)
 2.  that the only party who was allegedly "owed" was the bank, not the
 merchant.  BUT how can the bank be "owed" if they never really "loaned"
 you
 anything?
 
 3.  Remember, they "created" the "asset" on their books by tricking you
 into giving them something of real value for FREE: your future labor (in
 the form of a promissory note)!
 
 Lastly, it would be good to remember, that until our country begins to
 deal
 in real money (not paper debt-notes) everyone in this country is a
 victim!  Now you know why a new car that cost $3,000 in 1970 costs
 $30,000
 today!  Inflation didn't just "happen!" It was planned as an easy way to
 reach into your pocket and steal from you!  It was done by printing up
 more
 and more and more so-called money by that private counterfeiter the
 FED!  If anyone "owes" someone, it is the FED who owes all of the
 Americans
 it has swindled since its inception in 1913!
 
 What about the merchant?  Was he defrauded too?
 
 Yes!  The merchant was also defrauded, because he believes he received
 "money," when all he really got was an "accounting entry" ("checkbook
 money") which has NO (intrinsic)
 value other than the fact that people are currently accepting it as
 payment.
 In a serious economic depression, (which we are about to enter) it is
 very
 likely people will begin to refuse this "paper" and only accept real
 money--silver and gold, or other goods in trade.  When this happens, it
 will become clear to everyone that they've been defrauded!
 
 More info: http://www.themoneymasters.com/presiden.htm
 peace and prosperity,
 Jacques #1
 Source for truthful but unbelievable information
 http://www.truepassiveincome.net
 877-280-4157EED